We asked our contributors to pick their favorite ASX stocks to buy this month. Here are their top ideas.
Tim McArthur: Qube Holdings Ltd (ASX: QUB)
The past 12 months have seen a rise of 12% in the share price of freight and logistics provider Qube. In line with the share price rise, underlying earnings per share (EPS) year-on-year grew by 16% to 9.3 cents per share (cps), while the dividend was boosted by 13% to 5.1 cps fully franked.
With management stating it expects continued strong growth in underlying EPS in FY 2015 and analyst consensus data suggesting growth of 6.7% in the current year followed by 34% in FY2016, momentum looks to be on shareholders’ side.
With the dividend forecast to expand to 5.9 cps and 6.9 cps in FY 2015 and FY 2016 respectively, investors can buy Qube’s growing, strategic asset base on a FY 2016 price-to-earnings ratio and yield of 18.3x and 2.8%.
Motley Fool contributor Tim McArthur does not own shares in Qube.
Regan Pearson: Senex Energy Ltd (ASX: SXY)
With the share price down 31% this year, there has never been a better time to pick up energy producer Senex Energy in my view. The company trades for just over book-value and has one of the cheapest pools of 2P energy reserves in Australia.
Senex’s prospective growth is staggering, with the company targeting an increase in reserves from 39.9 million barrels of oil equivalent (mmobe) to as much as 150mmobe in 2018. This will be funded largely through farm-in agreements which lessen the risk from the current falling oil prices and will keep debt down.
Motley Fool contributor Regan Pearson owns shares in Senex Energy Limited
Owen Raszkiewicz: Money3 Corporation Limited (ASX: MNY)
Money3 Corporation provides small and micro-cap loans for individuals in need of quick finance, with amounts ranging from as little as $100 to $20,000. The company has significant insider ownership and has provided exceptional returns over the last five years. In FY14 it grew basic earnings per share by 32%. However the company recently said it expects record revenue and profit in FY15. With a large market place, good financials, a 3.5% fully franked dividend and only around 70 stores in operation, the future is looking bright for Money3 shareholders.
Motley Fool Contributor Owen Raszkiewicz does not have a financial interest in Money3 Corporation.
Sean O’Neill: Coca-Cola Amatil Ltd (ASX: CCL)
After wondering recently whether Coca-Cola Amatil Ltd was the right company with the wrong strategy, I’m happy to say the company’s strategic review alleviated many of my fears.
Strong cost cutting initiatives, retention of the Indonesian business, no sales of subsidiary businesses (like Mt Franklin), and an improved focus on new, innovative products are exactly what I was looking for in the market release from the company.
It will be a slow road to improvement, but today’s price continues to look cheap and Coca-Cola Amatil is a sound purchase for investors chasing dividend yields and growth.
Motley Fool contributor Sean O’Neill owns shares in Coca-Cola Amatil Ltd.
Mike King: iSentia Group Ltd (ASX: ISD)
iSentia has been around for decades but only listed on the ASX in June this year. The company mainly offers media monitoring services to more than 5,000 customers across the Asia Pacific region. iSentia has a number of products, all sourcing real-time data from 5,500 mainstream media outlets, 55,500 online news sources and 3.4 million user-generated content sources, delivered in up to 12 different languages. While the company may look expensive on a 2015 forecast P/E ratio of 21x, profit growth has been rocketing along, going close to doubling next financial year.
Motley Fool writer/analyst Mike King does not own shares in iSentia Group.
Ryan Newman: Coca-Cola Amatil Ltd (ASX: CCL)
Coca-Cola Amatil is by no means out of the woods yet, but conditions certainly look to be improving, thus giving Foolish investors an opportunity to buy at a very compelling price.
In an update regarding its strategic review, CCA outlined plans to improve its Australasian and Indonesian divisions and stated that it expects no further declines in earnings after 2014 – indicating that the worst might finally be over.
Coca-Cola Amatil is one of Australia’s strongest companies and it’s not often we get such an attractive opportunity. With shares trading at just $9.09, CCA is my top stock pick for November.
Motley Fool contributor Ryan Newman owns shares in Coca-Cola Amatil Ltd.
Peter Stephens: Ramsay Health Care Limited (ASX: RHC)
With the short term movements of the ASX still being highly uncertain, low beta stocks could see increased demand from investors seeking a less volatile experience. With a beta of just 0.5, Ramsay Health Care could fit the bill and, furthermore, the largest private hospital operator in Australia has great longer term potential, too.
For example, Ramsay is expected to increase its bottom line at an annualised rate of 17.3% over the next two financial years and with an impressive track record of growth, a PEG ratio of 1.7 seems to offer good value for strong, but defensive growth prospects.
Motley Fool contributor Peter Stephens does not own shares in Ramsay Health Care.
Tom Richardson: Trade Me Group Ltd (ASX: TME)
New Zealand-based online marketplace Trade Me ticks the boxes as a business with competitive advantages, a wide moat, strong balance sheet and growth potential. The group operates classified advertising in the automobile, real estate and job marketplaces, and an eBay-style marketplace for entrepreneurial New Zealanders to trade goods and services online.
This looks a growth business on a reasonable valuation around 17x FY15’s estimated earnings, the key caveat being whether or not management can deliver on its long-term growth plan via an accelerated investment program. The stock yields around 4% based on FY15’s estimated distributions.
Motley Fool writer Tom Richardson owns shares in Trade Me.
5 stocks under $5
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