The overall market has held up fairly reasonably through earnings season with the S&P/ASX 200 Index (INDEXASX: XJO) once again hovering just under the 5,600 level. However, a number of stocks have still felt the wrath of investors and could be worth a second look for those willing to gaze beyond the short term for the long-term opportunity.
Carsales.Com Limited (ASX: CRZ) is one such company. It saw its shares slide more than 6% following its earnings announcement last week thanks to a slight miss on consensus estimates. Given its strong valuation, the market had been expecting Carsales.Com to outperform and was disappointed to read otherwise. Regardless, the company recognised strong growth across key products and still managed to grow its net profit by 14% with the future still looking bright.
Computershare Limited (ASX: CPU) is another company that seems to have disappointed investors despite a massive 60.1% increase in net profit after tax (NPAT) for its full year ending 30 June, 2014. While the broader market is clearly focused on its lower forecast on earnings per share (EPS) for FY15, Foolish investors should see this as an opportunity to buy a quality company at a discounted price.
Unlike the price drop of Carsales and Computershare, Coca-Cola Amatil Ltd's (ASX: CCL) share price decline has occurred over the last 18 months or so. Profits have dropped considerably and a price war with Schweppes is certainly acting as a dark cloud over its near-term prospects. However, I'm expecting the long term will be far brighter for investors who gather the courage to buy shares today. The company will deliver its half-year results on Wednesday 20 August.
