4 cheap stocks for income and growth

It’s great to find bargains when looking to buy in the stockmarket, thankfully they come up quite often as negative sentiment sees certain companies oversold by panicked investors. I think all of the below have good growth potential, reasonable valuations and steady income streams to compound your returns.

Salmon farmer and producer Tassal Group Limited (ASX: TGR) has benefited from its strategic decision to simplify and focus on the domestic consumer market. The future supply and demand curve seems to be weighted heavily in its favour which should allow for increased revenues and margins if it delivers on its potential. Selling for $3.95 the price-earnings is 15.7 based on projected earnings, and yield is around 3%. Any cheaper and it looks a solid buy.

Trade Me Group Ltd (ASX: TME) is an E-bay style online business in New Zealand that lets entrepreneurial Kiwis sell everything from second-hand trainers to million-dollar homes. Jobs, cars, flatmates and dates are also up for grabs and its incredible popularity means it’s building a serious competitive advantage. It has elements of the feedback loop that make its Australian cousins like Limited (ASX: CRZ) or SEEK Limited (ASX: SEK) so successful.

Selling for $3.29 the price-earnings is 16.7 based on projected earnings with a projected forward yield of more than 4%. Those are some decent numbers for a digital business with obvious leverage to a healthy New Zealand economy.

If you’re a value investor then don’t look past QBE Insurance Group Ltd (ASX: QBE) either. Selling for $11.19 it’s trading on 11 times projected earnings after a tough few years. There’s plenty of potential to unlock however and it looks a solid buy at current prices.

Junior telco M2 Group Ltd (ASX: MTU) is the company behind budget internet service providers Dodo and iPrimus, saddled with a lot of debt to finance their acquisitions it trades on a price-earnings around 11 based on projected earnings. Assuming it pays out 23 cents per share this financial year the yield is 3.93%.

These businesses all look good prospects at current valuations, but there’s one more with..

Record profits and a fast growing, fully franked dividend...

This little known ASX company has already delivered eight consecutive years of profit and dividend growth... but with even more growth ahead, the shares are still a firm "BUY" today! Discover The Motley Fool's #1 dividend pick in our newly updated report. Simply click here for your FREE copy right now.?

Motley Fool contributor Tom Richardson owns shares in Trade Me, QBE and M2 Group. You can find him on Twitter @tommyr345

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