The investing universe for many Australian investors usually includes the big four banks and Telstra Corporation Ltd (ASX: TLS).
Whist they've proven to be exceptional investments in the past, their current prices leave a lot to be desired.
So with prices high, it's time to look outside the 'usual suspects' for top investing ideas…
And right now, I think I've found a number of great companies trading cheap, with outstanding long-term potential. Below, I've listed three stocks I'd happily buy today:
Blue-chip – Coca-Cola Amatil Ltd (ASX: CCL)
Coca-Cola Amatil, or CCA, sells Cola-Cola and Beam beverage products in Australia and select neighbouring countries, including Indonesia. Last year, CCA's share price was heavily sold off amid tough trading conditions which resulted in significant write-offs and profit declines. However, there's a chance the selloff has been overdone.
Whilst I don't believe Indonesia is the key to its long-term success, according to my DCF analysis, intrinsic value lies around $13 per share. At $9.15, it has a healthy margin of safety and the forecast dividend yield of 4.4% partially franked is icing on the cake.
Mid-cap – Slater & Gordon Limited (ASX: SGH)
Slater and Gordon is Australia's largest personal injury (PI) law firm, with market share estimates up to 25%. After years of successful PI growth in the domestic market, it's rapidly expanding into the much larger UK market. Its expansion into the UK provides fantastic long-term growth potential, whilst its push into general law throughout Australia will help build scale. Despite a strong run-up in share price throughout 2014, its current market price of $6.30 does not appear excessive.
Small-cap – Nearmap Ltd (ASX: NEA)
Nearmap is a $200 million technology company involved in the provision of geospatial imagery services for private, commercial and government use. Think of Google maps yet much clearer and more frequently updated. The complementary range of uses creates significant growth possibilities for the company over the long term. The company is now expanding into the huge US market and recently swung into profitability. Keep an eye on this one.
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