If I had $10,000 sitting in a savings account I would seriously consider putting that money to work.
With interest rates tipped by many economists to stay at their record low until late next year, investors would do well to beat inflation with the rates on offer from savings accounts.
Whereas I believe the three shares listed below have a great chance of beating both inflation and the market over the next 12 months, providing their shareholders with solid returns.
Here's why I think investors should consider them today:
BWX Ltd (ASX: BWX)
Thanks to the growing popularity and international expansion of its Sukin skincare brand and the acquisitions of Mineral Fusion and Nourished Life, management believes the company will deliver EBITDA growth well in excess of the 30.7% it achieved in FY 2017. At a little over 23x forward earnings, I think BWX is great value and would be a quality investment today.
Collins Foods Ltd (ASX: CKF)
This KFC operator's shares are changing hands at a remarkably cheap 16x trailing earnings. I feel this is a bargain price given its strong growth prospects both at home and internationally. Over the next five years Collins Foods intends to increase its footprint by adding up to 10 new restaurant builds a year in Europe and up to 9 new builds each year in Australia.
Nextdc Ltd (ASX: NXT)
Due to the way that businesses are migrating to the cloud in their droves, I believe this leading data centre operator will see demand for its services increase greatly. I expect this to result in increasing levels of contracted utilisation and ultimately bumper profit growth as it scales. This year the company is investing heavily to increase its capacity to meet the insatiable demand.
