The S&P / ASX 200 (Index: ^AXJO) (ASX: XJO) is trading flat today despite positive offshore leads as investors hold their fire until the Reserve Bank reveals its decision on the cash rate tomorrow.
That though hasn't stopped several stocks roaring higher. Notably, the below businesses tend to feature among the top performers on a regular basis, which is why investors should take a closer look.
Domino's Pizza Enterprises Ltd (ASX: DMP) has climbed 3.4% to $38 this morning and has almost doubled in value over the past year. The Wall Street Journal has reported how the company plans to let customers track the progress of their pizza order on their phone, as delivery drivers will now be monitored with GPS tracking.
The business is now selling for around 53x analysts' estimates for earnings per share this financial year. That looks expensive, especially if Domino's domestic competition (Pizza Hut, Hell Pizza, Crust Gourmet Pizza, Pizza Capers and Eagle Boys) is ever able to catch up on it. The Domino's story is attractive, but the stock looks at a very frothy top.
REA Group Limited (ASX: REA) is another attractive growth stock, but on a more reasonable valuation than Domino's with some decent competitive advantages. The real estate website operator has climbed 2.5% today to $48.91 and trades on around 32x analysts' estimates for earnings per share this financial year. The business also has a substantial holding in Asia-focused property operator iProperty Group Ltd (ASX: IPP). Given that the annual earnings growth is expected to match the earnings multiple of 32, the stock's excellent outlook makes it a reasonable long-term buy in my opinion.
Capilano Honey Ltd (ASX: CZZ) has scorched to a record high of $12.50 this morning and is up 5.2% today and 128% over the past year. The company is Australia's market leader in the honey production and retail business and has been a big beneficiary of rising domestic honey prices in the recent past. The company has some brand power and also sells its 'premium' Manuka Honey for a pretty penny. The business has attractive domestic and international growth prospects and sells for around 15x annualised earnings per share of 84 cents. That still looks reasonable value given the outlook, although the stock falls into the medium-high risk category.
Premier Investments Limited (ASX: PMV) is the retail conglomerate behind some of Australia's most popular high-street apparel brands including dotti, Just Jeans and Jays Jays. However it's the strong growth of its Peter Alexander home apparel and Smiggles stationery brands that is really driving the capital gains.
The stock is up 2% to $13.07 today and its upward trajectory may have a while to run yet. No longer cheap, but a reasonable buy based on its outlook.
There are another two businesses that have been on upward trajectories recently and still trade on attractive valuations…
