Short-term fluctuations on the share market are normal and often occur without the release of any material or company-specific news or information.
These fluctuations have been more severe in recent weeks, given the level of global volatility caused by the US government shutdown and the risk of the nation defaulting on its debts. Whilst some companies have recognised significant gains in this time, others have fallen, opening up a number of opportunities for investors.
Cochlear (ASX: COH) has been one such company, falling by 4.22% over the last week to $58.08 per share. The media has given Cochlear attention in recent times with many fearing that Cochlear’s best days are behind it as new competitors enter the market. The company also forecast a flat annual profit, which added to those fears. However, the quality of Cochlear’s products is second to none, giving it a competitive advantage in its field. The drop over the last week opens up an excellent buying opportunity for prospective investors.
Childcare centre operator G8 Education (ASX: GEM) also experienced a significant fall for the week, losing 4.82%. The company has delivered excellent returns to investors over the last two years (464% since the beginning of 2012) and looks set to continue boosting its profits as it continues to expand. Now could be an excellent time to add this one to your portfolio.
It’s been a rough few weeks for Leighton Holdings (ASX: LEI), with its share price having fallen 11.54% since the beginning of the month. Whilst the company has been in and out of the media for allegations of bribery and misconduct that occurred in 2011, it has stated that the allegations are not actually new and that the corporate governance policies within the company have changed considerably since. The company maintains excellent long-term growth prospects and, after having taken a beating, its shares are looking very attractive at today’s price.
Small caps Webjet (ASX: WEB) and IMF Australia (ASX: IMF) also had a rough week, falling 3.34% and 3.74%, respectively. The online travel agency business and the litigation funder both have fantastic growth potential and could deliver significant returns for years to come.
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Motley Fool contributor Ryan Newman owns shares in Cochlear.
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Returns as of 6th October 2020
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