As the ASX 200 again nudged the 6,000 mark last week, there are many stocks trading near multi-year highs. Blackmores Limited (ASX: BKL), ResMed Inc (CHESS) (ASX: RMD) and TPG Telecom Ltd (ASX: TPM) are among the leaders of the pack and may continue to climb.
Blackmores shares have risen nearly 70% in 2015 as investors have reacted positively to growing revenue, higher earnings and an Asian expansion. The natural health company reported a 54% increase in net profit after tax for the half year that ended December 31 and recently announced the trend will continue with an additional 20% rise in NPAT expected for the third quarter of FY2015.
The market will be expecting this growth to continue, and with shares valued at 31x current earnings, the company will be relying on its Asian operations to deliver on their potential. Tailwinds including free trade agreements and a lower Australian dollar should help Asia become Blackmores' growth engine moving forward and drive the share price higher.
Shares in ResMed, which manufactures and distributes breathing machines for sleep disorders, rose 13% in March and almost 90% over the past year. The company had a successful launch of its latest sleep apnoea machine and has a growth opportunity in the consumer technology space with a partnership with Nintendo and integration of its machines with Apple's HealthKit. ResMed earns much of its income from outside Australia, particularly the U.S., and so will benefit strongly from the lower Australian dollar. The share price has given up some of its gains over the past couple of weeks, giving long-term investors a great opportunity to buy in.
TPG's announcement that it will buy iiNet Limited (ASX:IIN) and become Australia's second-largest Internet Service Provider sent shares in the company soaring. Prior to the iiNet deal, TPG was delivering impressive organic growth and had outlined its vision to compete with the NBN via its own fibre-to-the-basement network that services large apartment buildings. The iiNet acquisition will provide synergies and a significant NBN subscriber base that diversifies its operations. Assuming the competition regulator approves the iiNet takeover, TPG will likely deliver value to investors in the coming years.
