Class Ltd (ASX: CL1), Bapcor Ltd (ASX: BAP) and Corporate Travel Management Ltd (ASX: CTD) have shown they have what it takes to grow rapidly.
The following chart shows the Class share price, Bapcor share price and Corporate Travel share price over three years:
As can be seen, Bapcor (the yellow line) and Class (in red) haven't been listed on the ASX for three years. Despite that, they have trounced the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) three-year return of just 6%, before dividends.
Class
Class is a $360 million software business. It creates programs used by accountants and advisors to administer investment portfolios and self-managed superannuation funds (SMSFs). As anyone who has tried to run an SMSF will tell you, they need all the help they can get! Class Super, the company's leading product, is stored in the cloud so users can access it from anywhere.
Bapcor
Bapcor is the new name for Burson, the aftermarket car parts specialist. Bapcor listed on the ASX in 2014 and has grown rapidly by acquisition (i.e. buying other companies). Normally, I don't like these business models because they have a tendency to ruin companies. However, I think most of Bapcor's acquisitions have been well executed. For example, the purchase of Autobarn stores compliments the Burson business, tapping into its supply chain and products.
Corporate Travel
Corporate Travel has enjoyed a fantastic few years. Thanks to strong organic growth and complimentary takeovers, Corporate Travel has continually rebuffed its critics who said its shares were too expensive. The near $2 billion company provides travel services to business types throughout Australia, NZ, Europe, the USA and Asia. The company estimates it has just 12% share of local markets, less than 1% in the USA and Europe, and slightly more than 1% of Asia.
Foolish Takeaway
Each of these three companies have proven their ability to outperform the market. However, it's important to remind ourselves that we care about the future — not the past. Nonetheless, I think each of these three companies' shares deserve a spot on your watchlist.
