Coca-Cola Amatil Ltd, Flight Centre Travel Group Ltd and Super Retail Group Ltd: On the rise and ready to buy

It's time to circle back on Coca-Cola Amatil Ltd (ASX:CCL), Flight Centre Travel Group Ltd (ASX:FLT) and Super Retail Group Ltd (ASX:SUL) as they are showing solid share price gains.

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You should never "get married" to a stock. Still, you don't have to permanently break up, either.

Even the best companies go through funks of low performance or make silly, short-sighted decisions that upset the business.

You shouldn't hang onto some stocks that are a drag on your returns for too long. You can always circle back once the company has started working things out, so let go or at least sell down to a comfortable level. Economic cycles and business turnarounds sometimes take years to reverse directions. In the meantime, you could be missing out on better returns somewhere else.

If it's a temporary situation that could be adjusted, the sag in earnings and share price could be a buying opportunity.

I think it's time to circle back on these three stocks. In recent months, they have been on the rise. They are still down from their highs, but now their outlooks are improving and deserve a second look.

Super Retail Group Ltd (ASX: SUL), the operator of Supercheap Auto, Rebel Sports, BCF and Amart Sports, has risen about 27% in three months, partly due to strong same store sales early in the second half. Lower interest rates are leaving more disposable income for consumers. Retail trade could pick up more in the second half. Cost savings from the company's new distribution centres in Queensland and NSW could help improve margins as well.

Flight Centre Travel Group Ltd (ASX: FLT) is still off from its $55 high about a year ago, but is now back above $40 and up 11% in the last two months. Its overseas business is generating solid growth and foreign denominated earnings should get a boost from the weak Aussie dollar. The stock pays a 3.8% fully franked yield. Analysts forecast better earnings growth after financial year 2015.

Coca-Cola Amatil Ltd (ASX: CCL) made some business changes a number of years ago that saved some costs, yet didn't help its long-term growth. Together with stiffer pricing competition in supermarkets and a general consumer trend moving away from fizzy, sugary soft drinks, the bottler and distributor saw revenue and earnings head down. The stock is now up from its $9.00 lows and rose about 16% since February. The new restructuring program is in its early stages, but picking up some stock now before all the benefits flow through could give you an attractive long-term return.

Motley Fool contributor Darryl Daté-Shappard does not own shares in any company mentioned.  We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policyThis article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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