Boxing Day – the biggest discount sales day of the year.
With bargains galore, the feeding-frenzy of buying will take us into the New Year… but don't be distracted from the bargains the ASX is offering now. While many investors and traders are too busy with holidays, the market can produce some discount gems.
Here are three cheap-looking stocks that could add some returns growth to your portfolio.
1) Suncorp Group Ltd (ASX: SUN)
A leading general insurer and Australia's fifth largest bank, you may also know its other brands including AAMI, GIO, Apia, Shannon's car insurance and Vero. The stock is paying a huge 6.0% fully franked yield. Dividends have been growing at a steady pace, especially thanks to three special dividends in as many years. Its cost cutting program is making considerable savings, with forecasts of even larger operating cost reductions in FY 2015 and 2016. It's a good long-term play now.
2) Leighton Holdings Limited (ASX: LEI)
The construction and engineering company is moving forward with its business and asset sales. It is streamlining its business and reducing its huge accounts receivables, which has weighed heavy on the company's outlook. Since February, the stock is up about 47% when the restructuring plan was announced. Analysts are forecasting high single-digit earnings growth.
The Federal government has proposed more than $50 billion in infrastructure development over the next six years. Leighton can be a big beneficiary of those contracts because of its large-scale business and extensive experience. Building up a starting position while the company strengthens its market presence could be a good move.
3) Super Retail Group Ltd (ASX: SUL)
With brand names like Supercheap Auto, BCF, Rebel Sports and Amart Sports, the company has developed a portfolio of well-known and successful businesses. However, when retail trade went weak again late last year, investors questioned its growth outlook. The stock has fallen about 47% over the past year. If this Christmas season shows some improvement in top line revenue and same store sales, it could light a fire under this stock.
The company maintained dividend growth despite weaker sales, so now the stock pays a huge 5.7% fully franked yield- the same or better than most of the big four banks. The stock could find its footing around its current $7 a share price, so it looks cheap.
