While the performance of the ASX has been disappointing in recent months, it's worth remembering that in the last six years Australia's leading index has risen by 50%.
That's a stunning rate of share price appreciation and, in addition, doesn't even include dividends. As a result, it still seems to be worth investing a proportion of your capital in shares – especially if you can afford to take a longer-term view.
So, with that in mind, here are three stocks that could be worth buying now in anticipation of excellent long-term gains.
Telstra Corporation Ltd
When it comes to long-term growth prospects, the strategy adopted by company management clearly has a huge effect on future profitability. So, in this regard, investors in Telstra Corporation Ltd (ASX: TLS) should be feeling pretty optimistic, since it seems to have a very sound plan to grow its bottom line.
A major part of this is expansion outside of Australia in faster growing markets but, while Telstra's longer-term growth prospects do seem bright, it hasn't lost its appeal as a defensive play, either. It remains a major mobile operator here in Australia and, should the ASX fall this year, many investors may flock to Telstra as they seek out perceived safer stocks.
Moreover, with a yield of 4.8%, Telstra appeals as an income play, too, and this could help to attract investors and push the company's share price even higher.
Suncorp Group Ltd
The last five years have been a very strong period for Suncorp Group Ltd (ASX: SUN), with the insurer and banking stock delivering earnings growth of 12.9% per annum. This is a superb result and, looking ahead, there could be more to come.
For example, in the current year Suncorp is forecast to grow earnings by a whopping 74% and, although this rate of growth is unlikely to be maintained, it could stimulate and improve investor sentiment in the stock. That's especially the case since there is a lack of growth opportunities among resources stocks at present, so investors seeking growth may turn to different sectors.
Furthermore, with Suncorp trading on a price to earnings growth (PEG) ratio of just 0.45, there seems to be plenty of potential upside on offer over the medium term.
Newcrest Mining Limited
Although earnings at Newcrest Mining Limited (ASX: NCM) are forecast to fall in the current year by 23.8%, they are expected to bounce back very strongly next year. In fact, they are due to more than reverse all of this year's fall and, as a result, investor sentiment in Newcrest could continue to improve as it has done in recent months, with its share price having risen by 30% in the last three months alone.
Furthermore, the company is expected to commence dividend payments next year and, while they are forecast to equate to a yield of just 1.5%, they provide evidence of the progress being made on cost reduction and the company's confidence in its medium to long-term future. As such, Newcrest could be worth buying at the present time.
