4 stocks giving more bang for your buck

These companies have high earnings and revenue growth with attractive prices.

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Looking for companies that have shown great performance and good shareholder returns all at a good price? Here are four that have what it takes.

Sometimes short-term setbacks or changes in their industries may make their share prices more attractive, so you need to find good companies like these with impressive five-year records, and start your positions when the share price is moving to your advantage.

FlexiGroup Ltd (ASX: FXL) provides leasing, vendor finance programs, credit cards, and payment solutions. They do the financing and installment payments for such goods and services as electronics, home improvement, trade equipment and furniture with major retailers.

In 2013 EPS growth was 16.6%, about the same as its 16.8 PE, and over the past five years the total shareholder return was an average annual 76.2%. More financing agreements with stores and increased numbers of customers using financing will keep this company growing.

When the financial markets are turning over more share trades and the economy is growing, Computershare Limited’s (ASX: CPU) business expands since it provides share registry and electronic transfer services for share transactions.

Operating revenue and EPS growth were up 27.2% and 42.7% respectively in 2013.The PE is 19.6 and ROE is a whopping 27.2%.

Fortescue Metals Group Limited (ASX: FMG) has been paying down debt at a good clip from the higher sales and production it achieved in 2013. EPS growth was up by 20.5% and top-line operating revenue was up 32.8%.

It still has to work its debt levels down, but the 10.1 PE indicates value for your money if it can keep paying debt off. Less debt interest to pay expands earnings.

Super Retail Group Ltd (ASX: SUL) has been growing in share price from $2 to as high as $14 since 2009. Its past five-year total shareholder return is 44.6%, and in 2013 EPS was up 25.6% on a 22.1% rise in operating revenue.

It just announced lower first-half sales growth in some of its divisions, but overall sales increased 6% compared to the previous corresponding period. The market was quick to react, and badly at that, but investors who follow this company’s story can now enjoy a share price that stabilised at $11.02 and a PE under 20. Thank Mr. Market for that.

Foolish takeaway

That balance between price and value must be weighed every day by investors and unfortunately it is usually just the price we can verify easily. Value comes only from knowing the market, the industry a company is in and how the company does its business. People spend more time on which car, used or new, to buy than investigating a company, and we all know that car values head down no matter where they start.

If a company has some issues, see if they are temporary situations that create buying opportunities or whether they are going to be multi-year headwinds or even structural changes in its industry.

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »