Ansell Limited, Navitas Limited, Trade Me Group Ltd: Circle back for these rising star stocks

Rule #1 in investing is “buy low, sell high”, but do you do it?

Most of us probably don’t as frequently as we should. When it comes to almost anything else – a house, a car or even groceries – we do our research and try to shop for the best bargains.

Yet when stocks fall in price, we may wait to buy until it “hits a bottom”. When it finally does, a lot of investors may simply forget about it anyway, much to their regret later on when it recovers and soars. However, smart investors will circle back to see what’s on offer.

Here are three companies that have struggled and fallen, but are now on the way back up, so it may be time for value investors to circle back and reconsider them.

Trade Me Group Ltd (ASX: TME) is New Zealand’s leading online classifieds and e-commerce website that sells anything from clothes to real estate. Over the past three years, net profit flattened out and so did its share price. Going as low as $3.11 recently, it has climbed 15% since September.

New acquisitions have added such services as online payments, vehicle information and insurance comparison. Website visitors are growing as well. Management thinks solid single-digit growth with its very high margins can be achieved. That’s why investors are circling back.

Navitas Limited (ASX: NVT), the education and training provider, took a tumble when Macquarie University decided not to extend Navitas’ bridging school service program after 2015. Shares dropped from about $7 to $4.70. Since July, it has rallied 12%.

The company has time to adjust by adding new teaching programs, as well as continuing to grow overseas university programs in the US. Consensus forecasts are for earnings to grow around 16% annually over the next two years. With a 4.4% fully franked yield, the stock is looking very attractively priced at 22 times earnings.

Ansell Limited (ASX: ANN) is a big name in producing gloves and other protective wear used in warehouses, hospitals and food service. After hitting a $22 high in September 2013, the stock has gone sideways, but it is looking like it could be gaining some market momentum from investors.

Already up about 10% since mid-October, I think this stock in particular offers good value for investors. Business looks like it will pick up pace over the next two years. The company has a strong competitive advantage as the market leader in its industry, making it all the more attractive for those circling back for a solid investment.

These three stocks can grow and return to their previous upward price trends in the near-term. If you are looking for stocks that could give you strong growth right now, then you will also want to know about one more company. The Motley Fool's top analysts have just completed a brand-new free report on their top pick for 2015.

Be among the first to get the name and code right now. (Hint: It's a sexy ASX tech company!) Simply click here for your FREE copy... BEFORE the investing crowd gets wind of this!

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned. 

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.