Consistently beating the market's returns is an extremely difficult task to achieve, especially when you are restricted to investing in Australia's largest corporations, as is the case with most professional fund managers.
The beautiful thing about managing your own portfolio, on the other hand, is that you have the freedom to explore opportunities that offer far greater growth potential. Indeed, some of these growth stocks are capable of doubling or even tripling in price over the course of a couple of years.
If you want to gain exposure to some promising growth stocks which could deliver market-beating returns over the coming years, you should start by considering these three opportunities listed below…
- Cover-More Group Limited (ASX: CVO) is Australia's largest travel-insurance company with an estimated 46% share of the local market. With the Aussie dollar remaining strong and airfares remaining low, it is expected that the high level of international travel will be sustained for the foreseeable future which should see demand for insurance remain strong. With the stock sitting 22% below its 52-week high, now could be a great time to insure your portfolio with Cover-More.
- Greencross Limited (ASX: GXL) is a provider of veterinary services with an estimated 7.5% of the Australian market under its control. Pets are increasingly becoming a part of the family and owners are becoming more and more willing to pay top dollar for their well-being. In addition to owning vets that can provide that care, Greencross is quickly expanding its retail offerings too with its most recent acquisition being that of City Farmers.
- Slater & Gordon Limited (ASX: SGH) is an Australian legal firm which once famously employed ex-Prime Minister Julia Gillard. With a leading position in personal injury cases, Slater & Gordon is growing in Australia and expanding its presence in the United Kingdom. Trading on a P/E ratio of 19.1x and a fully franked dividend yield of 1.4%, Slater and Gordon is looking like a compelling buy right now.
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While each of the companies mentioned above are looking like tasty buys, the Motley Fool's top analyst has recently uncovered an even more promising buy. In addition to strong growth prospects, it also offers a generous grossed up 5.4% dividend yield.
