While the growth prospects for the global economy seem rather uncertain at the present time, with the Chinese and European economies going through challenging periods, there are still a number of ASX stocks with excellent growth prospects.
Indeed, when it comes to share price rises, the market appears to hold earnings growth in the highest regard. As a result, growth stocks usually command a sky-high valuation, which makes them relatively unappealing for most investors.
However, here are three companies that have stunning growth potential, but yet trade at highly attractive prices. As such, they could help to grow your portfolio in 2015 and beyond.
Origin Energy Ltd
With oil prices having fallen to two-year lows of under $80 per barrel in recent weeks, the future for oil-focused stocks such as Origin Energy Ltd (ASX: ORG) may seem dire. After all, there is little sign of any improvement in the oil price in the short run, with a combination of weak demand and a glut of supply likely to force the price of the commodity down even further.
Despite this, Origin Energy is expected to increase its bottom line by a hugely impressive 34.4% per annum over the next two years. This is at least partly due to the potential of its LNG operations, with demand for the commodity being buoyant and looking set to increase moving forward.
If forecasts are met, such a strong growth rate means that the company's bottom line could be as much as 81% higher in FY 2016 than it was in FY 2014. And, with shares in the company trading on a P/E ratio of 20.2, it means that its rating could fall to as little as 11.5 over the next two years, thereby making Origin Energy's current share price highly attractive.
CSL Limited
While pharmaceutical stocks are often viewed as being highly defensive as a result of their ability to deliver strong performance even during recessionary periods, this doesn't mean that excellent growth prospects are not on offer.
This point is evidenced by CSL Limited (ASX: CSL), which is expected to grow its bottom line at an annualised rate of 15.8% over the next two years. That's around twice the wider market's forecast growth rate and, with shares in the company having a P/E ratio of 25.1, they seem to offer growth at a reasonable price due to them having a PEG ratio of 1.59.
Also, with more share buybacks planned over the next few years, earnings could gain a further boost on a per share basis, thereby helping CSL to continue its performance over the last five years that has seen its share price rise by a whopping 146%.
QBE Insurance Group Ltd
With its share price having halved in the last five years, investors could be forgiven for giving up on QBE Insurance Group Ltd (ASX: QBE). That's especially the case after a challenging FY 2013 that saw the company make a loss.
However, profit is expected to return in the current year and next year QBE is forecast to grow its bottom line by an impressive 29.6%. This puts it on a forward P/E ratio of just 10.6, which seems to represent excellent value for money when the ASX has a P/E ratio of 15.2.
Its performance in key markets such as Australia and New Zealand has been strong according to recent results meaning QBE could turn around its dismal share price performance to post strong gains in 2015 and beyond.
