I’ll be the first to admint that when looking for exceptional growth stocks, I tend ot head over to the US market. Everything is just bigger. More money, more customers and usually more grwoth.
But of late, I’ve been looking in my own backyard and like what I see. Once you move beyond the mining and bank stocks that dominate a large part of the Aussie market, there are some reeally exciting companies with enourmous growth potential.
GTN Limited: ASX GTN
This is a classic middle man company. You know when you hear an ad on the radio or see an ad on the TV? Chances are GTN co-ordinated the logistics.
The work with various platforms, package up their time slots and sell them to corporates looking to adevrtise. They also provide the crucial data to find out who tuned in.
You may also be surpsised to learn that radio advertising is increasing. In 2019 it grew by 3.4% across Australia’s 5 major cities to be worth $809m. That’s just one of their revenue streams in one of their countries.
They also operate in the UK, Canada and Brazil, with the latter being their growth prospect.
The company currently has a P/E ratio of just 9 with 16 being the industry average. They also pay a 4c or 8% dividend.
Analysts are forecasting their revenue to grow from $173m in 2020 to $206m in 2022.
Cochlear: ASX COH
It’s not very often that you find a large cap company in Austalia menitoned in growth conversations. Cochlear is an exception to that rule.
The medical device industry in Australia is actually quiet interesting. We have an aging population and around 80% of our medical devices are actually imported. Cochlear being one of the homegrown market leaders.
The industry itself is valued at $4bn US and is expected to grow at an annual rate of 10% per year until 2030.
In the past, Cochlear has been an amazing performer. The stock price has grown by 12% per year for the past 10 years whilst steadily increasing its dividend.
Analysts are looking at a 47% revenue increase over the coming years with some predicting toal revenue will hit $2.4bn in 2024. Up from the $1.3bn forecast for 2020.
Betmakers Technology Group: ASX BET
This company has all the cliques of a high growth business. The stock price has increased by over 800% this year, they are losing money and they have big companies as their clients.
A classic growth play that is not for the faint hearted.
BET provides recaing data, analytics and trading solutions in Australia. Willaim Hill, NEDS and Uni Bet are just a few of their major clients that use their technology across their global racing platfroms.
Revenue is expected to grow by over 100% in the coming years with 2021 being the year that they forecast to make a profit.
They could also be a takeover or buyout target from bigger betting companies. They have a market cap of just $165m and ZERO debt. William Hill for example have $834m sitting in cash. They could buy them at a premium and still have change to spare.