3 stocks with sky-high potential: Wesfarmers Ltd, Origin Energy Ltd and Suncorp Group Ltd

These 3 stocks could transform your portfolio: Wesfarmers Ltd (ASX:WES), Origin Energy Ltd (ASX:ORG) and Suncorp Group Ltd (ASX:SUN).

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Even though stock markets have tumbled across the globe, economic data remains positive. Take, for instance, US jobs numbers. On Friday, it was reported that the unemployment rate had fallen to a six-year low of 5.9%, leaving little doubt that now appears to be the right time for the Fed's asset repurchase programme to end.

Furthermore, the global economy continues to chug along at a relatively impressive rate and, although uncertainties remain regarding Chinese growth, such question marks rarely evaporate completely.

So, with this in mind, here are three stocks that continue to have strong prospects and, with the ASX tumbling by 6% in the last month, now offer even better value for money.

Wesfarmers 

Aussie consumers are expected to continue spending over the medium term, with interest rates set to remain at just 2.5% for a good while yet. Indeed, retailers such as Wesfarmers Ltd (ASX: WES) are forecast to benefit, with the company due to increase EPS at an annualised rate of 12.8% over the next two years.

This puts Wesfarmers on a price to earnings growth (PEG) ratio of 1.63 which, when the ASX has a PEG ratio of 1.71, seems to point to growth at a reasonable price. Furthermore, with a solid track record of earnings growth and a fully franked yield of 4.7%, Wesfarmers could turn out to be a top performer.

Origin Energy

The same can be said of Origin Energy Ltd (ASX: ORG), with the diversified energy company expected to increase its bottom line by a whopping 32.2% per annum over the next two years. This puts the stock on a PEG of just 0.69, which seems unjustifiably low given the excellent track record that it has of growing earnings.

For example, over the last ten years, Origin Energy has increased EPS by 7% per annum. This is highly impressive and should give investors confidence in the future performance of the stock. With a great track record and top notch growth potential. Origin Energy could see a significant upward rerating to its current valuation.

Suncorp Group 

With a fully franked yield of 5.9%, Suncorp Group (ASX: SUN) is a clear favourite with income investors. However, growth investors should be keen on the stock too, since it is expected to increase earnings by 80.6% in the current year and by a further 5.3% next year.

So, while a P/E ratio of 20.6 looks expensive, when the company's growth potential is taken into account, a PEG ratio of 0.54 looks relatively attractive. Furthermore, with a beta of just 0.79, Suncorp could prove to be a worthy defensive play if the ASX continues on its downward trajectory.

Motley Fool contributor Peter Stephens does not own shares in any of the companies mentioned.

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