This week has proven to be a lot more positive than last week for investors, with the ASX rebounding to make up at least some of the ground it lost in last week's winter 'correction'. Indeed, that's part and parcel of being an investor: share prices are bound to fluctuate in the short term. Sometimes, as we saw last week, they can be pretty volatile and put doubt into investors' minds.
However, over the long run, there are a whole load of ASX stocks that could have bright futures. Sure, they may fluctuate in the short term, with many of them doing so last week, but over the long run there is still vast potential out there. With that in mind, here are three companies that could be long-term winners.
SkyCity Entertainment Group Limited-Ord
The last month has seen shares in SkyCity Entertainment Group Limited-Ord (ASX: SKC) fall by 5%, which has undone the moderate gains that were made during the earlier part of the year. However, SkyCity could now offer an even better buying opportunity for investors after its recent fall. That's because it now trades on a P/E that is only slightly higher than that of the wider index – 16.5 versus 16.2 for the ASX – while its growth rates are very strong. EPS is forecast to increase by 16.8% over the next two years which, when combined with a moderate P/E ratio, means that SkyCity offers growth at a reasonable price, since its PEG ratio is a very attractive 1.0.
Primary Health Care Limited
Another stock that's had a tough 2014 is Primary Health Care Limited (ASX: PRY). It's down 6% year-to-date, although as with SkyCity, it could turn out to be a strong performer in the long run. That's because it offers a potent mix of value, growth and income. For instance, it currently trades on a P/E ratio of 14.2, which is 12% below that of the ASX, while its growth prospects are upbeat, with the company expected to grow the bottom line by 10.4% over the next two years. Meanwhile, a fully franked yield of 4.2% is expected to firm up moving forward, with dividends per share set to increase by an impressive 12% in the next two years alone.
Abacus Property Group
Unlike SkyCity and Primary Health Care, shares in Abacus Property Group (ASX: ABP) have had a great run in 2014. They're up 11% year-to-date and there could be more to come. That's because the company still looks cheap, with an unfranked yield of 6.4% and a P/E of 13.5 providing evidence of this. Furthermore, the price to book ratio for Abacus is also very low at just 1.1, which again indicates that shares are not yet getting frothy. With EPS set to increase by 8.3% over the next two years, the stock could prove, alongside Primary Health Care and SkyCity, to be a long term winner.
