Although the ASX continues to trade at relatively high levels, it’s not too late to buy shares in companies with bright futures. Indeed, whether markets are high or low, there are always opportunities to increase your wealth. Here are three stocks that could do just that via a potent mix of great value, growth potential and impressive yields.
Investors in Orica Ltd (ASX: ORI) have endured a rather disappointing 2014 thus far, with shares in the diversified chemicals company falling by 12% as the ASX has made gains of 3% during the same time period. However, Orica could have a much brighter future, with shares in the company currently trading on a P/E of just 12.7. This compares very favourably to the wider market, which has a P/E of 16.3, while Orica also has relatively high levels of growth potential, too. Indeed, it is forecast to grow earnings by 8% next year, which shows that its mixture of growth and value could prove to be a potent one.
In contrast to Orica, Leighton Holdings Limited (ASX: LEI) has been a top performer in 2014, with shares in the general contractor rising by 31% — that’s ten times the gains made by the ASX over the same time period. However, Leighton has the potential to push higher, since it trades on a P/E ratio of just 13.4 (versus 16.3 for the wider index) and also offers a 5% yield that is 50% franked. This means that there is scope for an upward rating revision, while shareholders are being rewarded in the meantime via a top-notch yield.
Sydney-based REIT GPT Group (ASX: GPT) has also had a strong first part of 2014, with shares in the company being up 17% year-to-date. However, it continues to offer modest growth potential at a very reasonable price, so has the scope to move even higher. Indeed, shares in the trust currently trade on a P/E of just 14.1 and, although their yield is not franked, it remains impressive at 5.2%. As such, GPT along with Orica and Leighton Holdings, could perform well in future and all three companies could help make you just that little bit richer.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Motley Fool contributor Peter Stephens does not own shares in any of the companies mentioned.
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