Ramsay Health Care Limited
With the outlook for the Aussie economy and for the ASX being somewhat uncertain at the present time, it is of little surprise that investors are favouring stocks that offer a consistent track record when it comes to growth. So, companies such as Ramsay Health Care Limited (ASX: RHC) could become more in-demand through the course of the year with it having increased its cash flow per share at an annualised rate of 14.6% over the last 10 years.
So, while Ramsay does trade on a rather rich valuation (for example it has a price to sales (P/S) ratio of 2.5) its share price could still move higher during the course of the year. As such, it could be worth buying – especially since investor momentum is behind it, with it having gained 15% in the last three months alone.
Newcrest Mining Limited
When it comes to long term value creation, Newcrest Mining Limited (ASX: NCM) is an appealing company. That's because it has been able to increase its net asset value at an annualised rate of 13.6% during the last 10 years and, while the price of gold may come under pressure moving forward, it seems to be a strong buy at the present time.
That's because Newcrest offers good value for money, with it trading on a price to earnings growth (PEG) ratio of just 1.21. While this is attractive on an absolute basis, it is even more so on a relative basis, since the ASX has a PEG ratio of 2.09. As such, Newcrest could be an excellent performer this year and looks all set to beat the wider index over the medium term.
Westpac Banking Corp
While an appealing headline yield is important for income-seeking investors, so too is a track record of dividend growth. That's why Westpac Banking Corp (ASX: WBC) continues to appeal as an income play, and is why its share price could move higher during the course of the year.
For example, Westpac has a fully franked yield of 5.1% at the present time which, when interest rates are on the decline, is very enticing. However, a consequence of lower interest rates can be increased inflation, so the fact that Westpac has increased dividends per share at an annualised rate of 6.9% over the last 10 years means that it should offer a real-term increase in dividends even if inflation does move higher.
With this in mind, Westpac could be a strong performer this year and, as a result, it seems to be worth buying.
Of course, finding the best stocks for the long term is a tough task – especially when work and other commitments limit the amount of time you can spend trawling through the index for them.
