With the ASX falling by 5% in the last month alone, buying shares may not feel like the right thing to do at the moment. However, cheaper prices mean now could be the perfect time to buy shares in three consumer-focused stocks, especially with the RBA willing to keep interest rates at just 2.5%.
The three companies below have fallen roughly in line with the wider market over the last month and could give your portfolio a boost.
Telstra
Having fallen by 5% in the last month, Telstra Corporation Ltd (ASX: TLS) offers even better value for money right now. Indeed, shares in the telecommunications company now trade roughly in line with the ASX's average price-earnings (P/E) of 15.6.
While the NBN takeover of Telstra's cable network provides uncertainty, the future still looks bright for the company's mobile offering and there appears to be vast opportunity abroad. Notably, Telstra is aiming to generate more than 30% of revenue from Asia by 2020. With shares yielding a fully franked 5.5%, they look to offer a potent mix of value, growth and income potential.
Wesfarmers
Shares in Wesfarmers Ltd (ASX: WES) now trade on a P/E ratio of 21.2 having fallen by 4% over the last month. The owner of Coles and Bunnings Warehouse may seem expensive at first, but when the company's growth potential is taken into account, it's a different story.
That's because Wesfarmers is expected to increase earnings at an annualised rate of 12.8% over the next two years, which puts shares in the company on a price to earnings growth (PEG) ratio of 1.66, less than the ASX's PEG of 1.73. With a fully franked yield of 4.6%, Wesfarmers offers strong income potential as well as growth at a reasonable price.
Woolworths
When it comes to stability, Woolworths Limited (ASX: WOW) is tough to beat. That's because over the last 10 years the company has grown earnings at an annualised rate of 11.2%. This has enabled it to increase dividends per share by 11.6% per annum over the same time period.
Such consistency doesn't come cheap, though. Despite falling by 6% in the last month, shares in Woolworths still trade on a P/E of 17.6. However, with a strong track record and a fully franked yield of 4%, Woolworths could prove to be a top notch buy right now.
