Growth..........................from a toll road!!!!! Transurban Group
A toll road and tunnel operator may not sound like the most obvious of growth stocks, but the last decade provides evidence that Transurban Group (ASX: TCL) is a top notch growth company. That’s because it has increased its bottom line at an annualised rate of 19.1% during the period and it is expected to post annualised earnings growth of 26.7% over the next two years.
Of course, revenue from toll roads and tunnels is relatively robust and, as a result, Transurban has a highly visible and resilient earnings profile. This could prove to be a real asset for investors – especially if there is continued uncertainty surrounding the global economic growth picture.
While Transurban does trade on a vastly rich P/E ratio of 40.7, its PEG ratio of 1.52 is much more palatable and shows that relatively reliable growth is on offer at a very reasonable price.
TCL Price at posting:
$8.29 Sentiment: Hold Disclosure: Held
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