The only thing better than buying a promising blue chip stock is the ability to buy it at a significantly discounted price, and then watching it steadily climb in value over the years or even decades. Although the S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO) is threatening to smash through multi-year highs, there are still a few blue chips looking extremely appealing today.
Hovering nearly 19% below its $55.72 March all-time high, Flight Centre Travel Group Ltd (ASX: FLT) is certainly a stock to keep an eye on. Although the company recently announced a minor profit downgrade (forecasting full-year profit to be between $370-380 million instead of $370-385 million due to the recent hit on consumer confidence), the long term is looking more promising. It continues to benefit from the strong Aussie dollar and growth overseas. Investors can also enjoy the stock's reliable 3.2% fully franked dividend yield.
Health insurance group NIB Holdings Limited (ASX: NHF) fell by more than 8% yesterday after announcing its profit would also come in at the lower end of its initial FY14 expectations, between $73-80 million. While the fall is certainly disappointing for current shareholders (myself included), it does offer us and other investors an opportunity to buy shares at a discount! NIB Holdings is one excellent way for investors to benefit from the government's horror budget, as more and more Australians are pressured to take out private health insurance.
And who could look past Coca-Cola Amatil Ltd (ASX: CCL) at their current price of just $9.14. The stock has dropped nearly 40% since last May due to a number of issues, including a pricing war with Schweppes and profit downgrades. However, while the problems primarily appear to be short term in nature, the long term is still looking incredibly bright. I bought the stock when it was trading for $9.39 and I'm strongly considering increasing my stake while the stock is down even further!
Finally, what is perhaps the most controversial inclusion in this list is diversified mining giant BHP Billiton Limited (ASX: BHP). Unlike Flight Centre, NIB or Coca-Cola Amatil, I don't necessarily think BHP is a buy today, but it is certainly one to watch closely for a slightly cheaper entry point. The stock has come under serious pressure recently due to the plunging iron ore price, but has good long-term prospects thanks to its exposure to the potash and coal industries. I think the short term could hold further falls for the stock (which is why I don't rate it a 'buy' today), but should it fall much further, I will certainly consider buying.
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