If analysts are correct with their forecasts of the S&P/ASX 200 (INDEX: ^AXJO) (ASX: XJO) reaching 6,000 points in 2015, the best gains won't come from the usual suspects.
Whilst the four big banks, two supermarkets, big miners and Telstra Corporation Ltd (ASX: TLS) account for around 50.8% of the S&P/ASX 200, they appear fully valued.
That means Australians searching for better investments in 2015, will be forced to look further down the market, to companies which appear much cheaper.
But that doesn't mean they'll have to sacrifice on quality. Indeed investors have a better chance of making truly life-changing gains by focusing on the blue-chips of tomorrow, not today.
Here are five of the best 'mid-cap' stocks to buy in 2015.
- M2 Group Ltd (ASX: MTU) is the owner of telecommunications brands such as Dodo, Primus, Eftel and Commander. Analysts are forecasting a solid earnings outlook for the near term, and shares look cheap with a 3.7% fully franked dividend.
- Credit Corp Group Limited (ASX: CCP) is a leading debt collections firm. Earlier this week the company updated the market with a more promising outlook for 2016 and beyond, as guidance for purchased debt ledgers increased from $80-$90 million to $120-$130 million. Despite a jump in price, shares continue to trade relatively cheap and offer a 4.2% fully franked dividend yield.
- Slater & Gordon Limited (ASX: SGH) is the leading personal injury law firm in Australia. However it has ample growth prospects, both locally and abroad, with analysts' forecasts for a 13% jump in earnings and 20% increase in dividend payout in 2015.
- Ardent Leisure Group (ASX: AAD) is also growing its overseas presence. The owner of AMF and Kingpin bowling, Goodlife Health Clubs and Dreamworld is a leading entertainment and leisure business locally but is undertaking a rapid rollout of its Main Event business in the USA. It's forecast to pay a 4.7% dividend in the next year.
- G8 Education Ltd (ASX: GEM) is the owner and operator of over 450 childcare centres in Australia and Singapore. The company continues to grow rapidly through acquisitions yet also presents as a compelling investment for income. Analysts are forecasting a 4.2% fully franked dividend in 2015.
Our #1 stock idea for 2015 is still a buy!
If the market is going to reach 6,000 points in 2015, expect growing businesses like those five above to put in a much stronger performance. If you're investing for more than five years, these companies should at least hold a spot on your watchlist, if not a position in your portfolio.
