While the performance of the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) was indeed mediocre in financial year (FY) 2015 there were plenty of investors who still managed to produce double-digit gains for their portfolios thanks to savvy stock picking.
One of the key attributes of successful investors is their ability to realise when they have made a mistake, cut their losses and move on.
While sometimes patience is required to allow your investment thesis to play out, on other occasions it's better to act swiftly, minimise an error of judgement and then utilise those funds in a better investment opportunity.
Here are 3 stocks which could help boost your portfolio's return in FY 2016.
Ansell Limited (ASX: ANN) – Ansell is one of Australia's leading global fast moving consumer goods (FMCG) businesses. The group has market-leading positions not just in Australia but also in an increasing number of international regions too. One of the beauties of FMCG businesses is the recurring revenue streams they generate through customer loyalty to their brands. With the stock trading well off of its 52-week highs, investors currently have the opportunity to acquire shares on a price-to-earnings (PE) multiple of 14x FY 2016 consensus earnings.
InvoCare Limited (ASX: IVC) – As they say "nothing in life is certain, except death and taxes." This home truth, coupled with a market-leading position are two reasons InvoCare is one of the best performing ASX-listed stocks over the past decade and also why the business is set to continue to be over the next decade. While the stock certainly isn't cheap on a multiple of roughly 25x, its premium rating is arguably deserved due to its defensive and stable earnings base and high quality assets.
Sonic Healthcare Limited (ASX: SHL) – The healthcare sector is one of the bright spots when it comes to growth opportunities in a low growth economic environment. Not only does Sonic offer investors exposure to this theme domestically but thanks to Sonic's overseas operations, investors can gain exposure to growing healthcare spending in the US and Europe as well. Like Ansell, Sonic also stands to potentially benefit from favourable currency moves. The stock is trading on a forecast FY 2016 PE multiple of 18.5x which assumes 23.2% earnings per share growth according to consensus data from Morningstar.
