Here’s why Greencross Limited shares have crashed today

Shares of Greencross Limited (ASX: GXL) have been spared no mercy today on what is proving to be another turbulent day for the S&P/ASX 200 (INDEXASX: XJO). The company’s shares have retreated a further 3.4% so far for the session, which equates to a 32 cent decline.

Since trading as high as $10.78 in late August, Greencross, which is a leading provider of veterinary services in the Australian market, has now declined more than 15% to be trading at just $9.16 per share.

Although the stock might still seem pricey, given its trailing P/E ratio of 28.4x, it is actually looking like a very compelling buy today. Following its strategic acquisition of pet retailer City Farmers earlier this year, estimates suggest Greencross now controls an impressive 7.5% of the local pet industry. However, it appears this growth story could just be beginning with the company striving for a total 20% market dominance in the coming years.

While the company has already delivered shareholders with enormous returns over the last few years, earnings are expected to continue growing strongly so investors who buy today should still be rewarded handsomely.

As attractive as Greencross is however, there is another stock which is presenting as an even more promising buy. In fact, The Motley Fool's top analysts like it so much, they've just named it their top stock to buy in 2015!

Hot off the presses! The Motley Fool's top stock for 2015 is a sexy ASX tech company with a stunning track record and plenty of room to run. Discover our analysts' hands-down favourite bet for 2015 in this brand-new FREE report. Simply click here to grab your copy.

Motley Fool contributor Ryan Newman does not own shares in any of the companies mentioned.

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