It looks like Christmas is coming a little early for Foolish investors. Finally, some of the big name stocks have come off 5% – 10% in share price. They may not be absolute steals yet, but a quick discount is always appreciated.
Just a small number of weeks ago, the S&P/ASX 200 Index (INDEXASX: XJO) was hitting multi-year highs in mid-August. Shareholders were toasting big dividend increases and iron ore hadn't fallen through the floor.
Fast forward to the first week of October and we have some big stocks that I think look cheap.
First of all there's investment bank Macquarie Group Ltd (ASX: MQG). After a strong run up over most of 2013, the stock peaked in July this year around $60. Now it's down about $3 to $57. If there's an improvement in markets as the Aussie dollar falls, Macquarie benefits both from more corporate activity and from a boost in earnings from the overseas income it gets in U.S. dollars.
Next would be Woodside Petroleum Limited (ASX: WPL), which I have written about before being a good opportunity for long-term investors. It's down from about $44 to around $42.70. Actually, I think it will have a little more of a pullback before it makes a low point. Wait a little longer and you could get a wider discount on the energy producer.
Suncorp Group Ltd (ASX: SUN), the insurer and banker, may be down from its recent peak of $15.37, but the stock seems to have flattened out. Analysts forecast several years of strong annual earnings growth. The stock should pick up momentum as the company continues with its restructuring program. That should produce a lot of cost savings and allow the company to continue to pay more special dividends.
Opportunities come in many forms, whether its discounted stock prices on old favourites or companies that are pushing the boundaries with new technologies. It's not just the technology, but how it affects business – like the Apple iPhone 6 and mobile payments.
The analysts at Motley Fool have a new #1 ASX tech pick. They have just released a special video report all about the one Australian company poised to win big from the 'cloud computing' trend. (Hint: The shares are already up over 100%!) Click here to claim your FREE copy.
Even if you are not a tech investor, getting the report can show you how other businesses will be affected by this company's innovations.
