Coca-Cola Amatil Ltd
With Coca-Cola Amatil Ltd (ASX: CCL) set to announce results this week, its short-term share price movements could be somewhat volatile. However, for longer-term investors, it seems to offer a considerable opportunity at its current share price.
That's because Coca-Cola Amatil continues to offer good value for money with, for example, it having a price to sales (P/S) ratio of 1.48, which is lower than the ASX's P/S ratio of 1.63. As such, Coca-Cola Amatil could see its share price rise as the valuation gap is narrowed – especially if it is able to make the necessary changes to its business so as to generate upbeat growth forecasts moving forward.
And, with Coca-Cola Amatil having a great track record when it comes to improving its returns (for example cash flow per share has risen at an annualised rate of 6.7% over the last 10 years), it could prove to be an excellent long-term performer.
Suncorp Group Ltd
Suncorp Group Ltd's (ASX: SUN) recent results showed that the insurance company delivered an increase in net profit of 15% for the six months to December. This has allowed the company to increase dividends per share by 8.6% and, with Suncorp targeting a return on equity of 10% moving forward, it could prove to be a sound investment at the present time.
Certainly, its results were hurt by the $250m cost of the Brisbane hailstorm but, looking ahead, Suncorp offers investors a relatively stable investment opportunity.
For example, Suncorp has a fully franked yield of 6% which, at a time when interest rates are falling, could boost investor sentiment in the stock. Furthermore, for investors that are concerned about the ASX's level of volatility, Suncorp's beta of 0.85 should mean that its shares offer a less erratic performance than the wider index, too.
Telstra Corporation Ltd
Telstra Corporation Ltd (ASX: TLS) released results last week that showed the mobile telecoms company had increased first half profit by 22.4%. A key reason for this was its strongest mobile revenue growth in around three years and, looking ahead, its decision to open up the dividend reinvestment plan could prove popular with investors.
Of course, a higher dividend would also have been welcomed (it was held flat), but Telstra seems to be adopting a prudent approach in regards its anticipated cash flow from the NBN deal.
In fact, it is this prudence that appeals to many investors at a highly uncertain time, and which could therefore boost Telstra's share price over the medium term. Telstra has a relatively well-entrenched position in the Aussie mobile market, as well as growth potential from faster growing markets across Asia and could prove to be a solid growth play in the medium to long term.
Of course, finding the best stocks for the long term is a tough task – especially when work and other commitments limit the amount of time you can spend trawling through the index for them.
