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Is now the right time to be buying shares?

Although the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) may have experienced the occasional wobble over the last 18 months or so, it has still managed to deliver investors outstanding returns.

Since the beginning of last financial year (July 2012), investors have pushed the benchmark index up an incredible 33% (not including dividends) despite corporate earnings remaining ‘sluggish’ and the global economy remaining volatile.

Given the enormous returns already realised however, investors are now wondering whether there are still gains to be made or if they should be looking at other alternatives. After all, the market is currently sitting at a five-year high and each of the major banks are considered to be overpriced.

Regardless of how the overall market is performing, investors should always review the price of a company and compare it to that company’s future potential. Even if the market were sitting at an all-time low, certain stocks might still be overpriced.

In answer to the above question, now is still the perfect time to be investing in shares, despite the fact that there may be fewer quality companies trading at discounted prices. Here are three stocks that you could still consider adding to your portfolio, or at very least including on your watchlist.

Twenty-First Century Fox (ASX: FOX): Until late in June, Twenty-First Century Fox was a part of News Corp  (ASX: NWS) until the companies split. At today’s price, Twenty-First Century Fox is the more attractive of the two and has a very bright future ahead of it. Just last week, Deutsche Bank analysts estimated that the share price could climb to $45 over the next 12 months. Compared to today’s price, that represents a 24% gain.

Mortgage Choice (ASX: MOC): This company has had an impressive run over the last 12 months as homebuyers have sought out the best mortgage product to suit their individual needs on the back of the low interest rate environment. Shares climbed as high as $3.29 early last week but fell back to $2.95, giving investors an opportunity to get involved.

Coca-Cola Amatil (ASX: CCL): It’s been a year to forget for shareholders in the manufacturing and distribution of ready-to-drink beverages. A pricing war with rival Schweppes, as well as pressure from supermarket giants Woolworths and Wesfarmers, saw its earnings fall. Its share price followed and is now valued at $12.90, down from $15.43 in March. Whilst it may take a little time to recover, Coca-Cola is a safe bet to deliver bubbling returns for your portfolio in the long term.

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