Woodside Petroleum Limited
With the falling oil price having hurt investor sentiment in oil stocks such as Woodside Petroleum Limited (ASX: WPL), it now trades on a very appealing valuation that could see it make impressive gains in the future.
For example, Woodside has a dividend yield of 4.8% even when the planned fall in dividends this year is taken into account. That highlights its good value and appealing yield – especially when the RBA has just cut interest rates by 0.25% (with further cuts a possibility). As a result, investor sentiment in Woodside could pick up in the months ahead.
And, with Woodside having an excellent track record of dividend growth (dividends per share have risen at an annualised rate of 18.9% over the last 10 years), the company's share price could be given a boost by investors not just seeking a high yield, but also an excellent track record of dividend growth.
QBE Insurance Group Ltd
When any business goes through a period of change and rationalisation, it can take time for investor sentiment to pick up. And, with QBE Insurance Group Ltd (ASX: QBE) recently announcing the sale of its Ukrainian insurance operations to another business, it is still undergoing a transitional period.
Therefore, it's perhaps of little surprise that its shares trade on a modest valuation, with them having a price to earnings (P/E) ratio of 13.6. This seems very reasonable on an absolute basis but, when you consider that the wider insurance sector has a P/E ratio of 17.5, QBE's share price could be due for an upward rerating in the months ahead.
And, with QBE having a forward yield of 4.8%, it could prove to be a compelling income, as well as value play.
Crown Resorts Ltd
Although plans for a $400m casino in Sri Lanka have been dropped following a change in regulations, Crown Resorts Ltd (ASX: CWN) still has multiple growth opportunities available to it, with Las Vegas, Asia and also domestic projects being on the table.
As a result, Crown Resorts could prove to be an excellent growth play – especially with the lower interest rate having the potential to boost spending and tourism in Australia. And, with Crown Resorts forecast to increase its bottom line by 8.4% per annum over the next two years, it already seems to be a somewhat appealing growth play.
Certainly, it may have a rather rich rating at the moment; for example its price to sales (P/S) ratio stands at 3.3 versus 2.5 for the wider consumer services sector. But, with the scope to benefit from a more accommodative monetary policy in the short run as well as having a bright long-term future, investor sentiment could push its share price higher at a faster rate than the ASX during the course of the year.
