Research house Lincoln has listed the best stocks of 2007 based on their financial health, growth prospects, share performance and dividend payouts.
Financial services firm Australian Wealth Management won the best income stock category because its pre-tax profit rose 34 per cent to $86.7 million, compared to 2006, thanks to a strong inflow of funds under management.
Westpac achieved the best in the banking category as it increased revenue while it controlled expenditures.
Mincor Resources NL has taken out the best in the mining company category because it has a strong production profile and reported a pre-tax profit surge of 338 per cent to $145 million for 2007.
Construction firm Leighton Holdings has won in the best growth stock category thanks to a slew of contract wins which has helped its pre-tax profit jump 57.4 per cent to $584 million this year.
Mining services company Structural Systems was the the best in the small cap category because it generated strong revenues from the resource boom.
Electronics retailer JB Hi-Fi has won in the mid cap category on the back of new store sales and continued strength in store sales.
Lincoln's picks would continue to do well in 2008 amid their strong performances this year, Lincoln director of research Elio Damato said.
"Quality businesses who are healthy, profitable, efficent, undervalued and growing will always outperform the broader market in the longer term," he said.
"And these companies do exhibit those qualities."
