Finding high-quality stocks trading at reasonable prices can be a tough task at any time, let alone when the market itself is trading at a multi-year high. While many investors are still choosing to pile into the nation's largest blue-chip stocks (many of which are heavily overpriced), others are electing to avoid the market altogether. However, the smart investors are still buying.
Below, I've put together a list of four stocks that I believe are still trading at compelling prices right now, and could be held to your advantage over the ultra-long term.
1) Carsales.Com Ltd (ASX: CRZ): Upon first glance, Carsales.Com might not appear that cheap. At $11.47, it is trading on a projected P/E ratio of 28.5, which is well above the market's average. However, investors need to consider the company's dominant market position as well as its strong growth prospects. More and more buyers and sellers are turning to its website to search for new and used cars and while it costs very little to cater for new customers, its margins and profits should continue to improve. According to Morningstar forecasts, earnings per share are tipped to increase at a very impressive annual compound growth rate of 17.7% over the next two years.
2) Veda Group Ltd (ASX: VED): The data analytics group only made its market debut late last year. While the shares performed strongly to begin with, they have since retreated to give investors another opportunity to buy at a more compelling price. Not only does Veda Group boast a strong history for increasing revenues and earnings, but it should also benefit in the future as credit reporting standards become stricter. Shares are now trading at $2.08 after sinking as low as $1.83 recently.
3) Coca-Cola Amatil Ltd (ASX: CCL): The woes of the beverage manufacturing giant have been well documented over the last 12 months or so, ranging from reports about their pricing war with Schweppes to their struggling SPC Ardmona cannery business. While the market focuses on these short-term issues, long-term focused investors can sweep in for the kill. Shares are now priced at $9.26, down from the March 2013 all-time high of $15.43.
4) Select Harvests Limited (ASX: SHV): The almond producer was one of the market's top performers in 2013, but has failed to emulate that same success this year as weather conditions have affected its crop. However, an ongoing drought in California, changing consumer health trends and a growing middle-class population in China should see demand remain strong for years to come. Shares are trading on a P/E ratio of 11.4 and are expected to yield 3.6%, fully franked.
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While I believe all of the companies mentioned above present as solid buys for investors in this expensive market, there is another company that also needs your attention today.
