Last year, CSL returned 32% and BHP managed to gain 21%. Both of these companies are in the top 20 largest companies on the ASX. If you are looking for a blue chip with double digit gains, you are looking for a company which is increasing its revenues and profits.

Here are my 4 tips:

1. My top 20 pick: Insurance Australia Group (IAG)

The strength of IAG’s Australia and New Zealand businesses, together with better-than-industry insurance margin and capital efficiency, should underpin IAG’s share price performance. The kicker will come from capital management with a 19.5 cent capital return approved at the AGM and the potential for more, if AIG divests its remaining Asian interests.

2. A stock that has gained market share: BBN

Baby Bunting is Australia’s largest nursery product seller. This company is in an upgrade cycle. The recently upgraded profit expectations and this upgrade cycle is likely to continue, given all major competitors have gone bust and it’s the last one standing. We’ve seen Baby Bunting’s four largest competitors shut up shop. While like-for-like sales are strong at ~ 9.5%, this is likely to accelerate on the back of weaker competition. The company is planning to open 85 stores by FY24.

3. A countercyclical one: Nufarm (NUF)

The time to look at buying agricultural stocks is when bad times, such as drought, hit. Early 2019 is the time to take another look at being overweight agricultural stocks such as NUF, as evidenced by takeover activity and interest in GNC.

4. For the ‘naughty’ speculative stock chasers: LiveTiles (LVT)

Livetiles develops tools to help companies develop internal intranets easily. It has a strong partnership with Microsoft, which is a key strength as well as a key risk. Livetiles received the Modern Workplace Transformation award at Microsoft’s annual global Inspire conference. Livetiles Bots helps automate mundane and repetitive tasks. Livetiles and Microsoft have launched a new program to help companies with artificial intelligence (AI) capabilities. The program has launched in Australia and will be going global to the US and then Europe.

Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regard to your circumstances.