Buying stocks in quality companies when they are trading at dirt-cheap prices, and then allowing their value to compound over the ultra-long term, remains one of the best ways to grow your wealth. Indeed, it is a method that has helped investing legends such as Peter Lynch and Warren Buffett become so successful, and will continue to help investors recognise superior returns now and in the future.
The problem is these bargain buys have become much harder to identify of late. The Australian stock market is scaling fresh heights and shares are no longer as cheap as they were in years gone past. Right now however, there are a few still standing out as solid buys. If you're looking for a few ideas to add to your watchlist or portfolio today, you could consider these three stocks that are currently trading at bargain prices…
1) Crown Resorts Ltd (ASX: CWN) is a high-quality Australian gaming and entertainment business, led by chairman James Packer. The company offers strong growth prospects in both Australia and abroad, while analysts are also expecting strong revenue and profit growth in the coming years. With the shares sitting down nearly 12% since their January peak, now could be an excellent time to put your money on the table with Crown.
2) Veda Group Ltd (ASX: VED) is a data analytics company that boasts a dominant position in a hard-to-crack industry. While the shares soared as high as $2.55 after its December IPO, they have since taken a plunge and are now sitting at just $2.03. While Veda has proven itself as a resilient and strong business, now would be a good time to stock up for the long term.
3) Select Harvests Limited (ASX: SHV) was one of the best-performing stocks on the ASX last year, but has dropped off significantly this year after the almond producer announced that poor weather conditions had impacted its crop. However, the long term is still looking very bright. Firstly, supply from California – the world's largest producing region – is limited due to a severe drought, while consumers seem to be becoming more health conscious. The stock is trading on a projected P/E ratio of 11.6 and is expected to yield 3.6%, fully franked.
