While there has been a fairly large degree of uncertainty surrounding the prospect of global economic growth in recent months, there are still a number of ASX stocks that are forecast to have bright futures on the earnings front.
Certainly, the end of the Fed's asset repurchase programme, a struggling Eurozone, and a Chinese economy growing slower than expected are pegging sentiment back somewhat.
However, bottom line growth is still very much on offer in 2015 and here are three stunning examples of companies that are expected to grow their net profit at a rapid rate.
Rio Tinto Limited
With the iron ore price having fallen to a five-year low in 2014, life has been extremely tough for Rio Tinto Limited (ASX: RIO). With over 90% of its profit coming from sales of the commodity, declines in its price can have a major impact on the mining company's bottom line.
However, with a stunningly low cost curve and having made yet more efficiencies in recent years, Rio Tinto is forecast to increase earnings by 8.7% next year. That's a major turnaround from the 29.6% fall that is pencilled in for the current year.
Despite the potential for a short, sharp turnaround, though, Rio Tinto trades on a P/E ratio of just 11 (using the current year's forecast earnings). As a result, there could be scope for an upward rerating over the medium term – especially if the company can deliver on its upbeat growth prospects.
Transurban Group
A toll road and tunnel operator may not sound like the most obvious of growth stocks, but the last decade provides evidence that Transurban Group (ASX: TCL) is a top notch growth company. That's because it has increased its bottom line at an annualised rate of 19.1% during the period and it is expected to post annualised earnings growth of 26.7% over the next two years.
Of course, revenue from toll roads and tunnels is relatively robust and, as a result, Transurban has a highly visible and resilient earnings profile. This could prove to be a real asset for investors – especially if there is continued uncertainty surrounding the global economic growth picture.
While Transurban does trade on a vastly rich P/E ratio of 40.7, its PEG ratio of 1.52 is much more palatable and shows that relatively reliable growth is on offer at a very reasonable price.
Macquarie Group
If you are bullish on the prospects for global economic growth then Macquarie Group Ltd (ASX: MQG) could be a worthwhile investment. That's because the share price performance of the investment bank and fund manager is relatively closely tied to the performance of the wider index – especially since shares in the company have a beta of 1.1.
With Macquarie's bottom line expected to rise by 14.5% in the current year, and by a further 5.8% next year, its growth prospects remain strong. The bank's shares trade on a PEG ratio of 1.5, which seems to offer the scope for a continuation of the 6% gain they have made in the last three months.
