Despite record low interest rates, shares of Woolworths Limited (ASX:WOW), Westpac Banking Corp (ASX:WBC) and Telstra Corporation Ltd (ASX: TLS) have been hit hard in recent months.
However, after falling 6%, 17% and 4%, respectively over the past three months, now might be a good time to run the ruler over each company.
Woolworths
Woolworths' struggles in the increasingly competitive supermarket space have been well-documented by the financial media. After forecasting nearly $300 million in one-off costs and announcing the resignation of CEO, Grant O'Brien, earlier in the week, Woolworths' shares have been nothing short of volatile.
However, Woolworths might have more room to move on profit margins than many expect, and may still be able to fix its Masters Home Improvement business. Recently, I wrote that I believe Woolworths shares are worth around $28 per share. Currently priced at $27.30 they prove good long-term value.
Westpac
Like Woolies, Westpac proved to be an exceptional business to own shares in over the past two decades. However, the bank's valuation had become eye-watering. This is evident from the sharp 17% selloff in its share price over the past three months. Unfortunately, as I showed here, Westpac shares are still far from a sure thing. Given where we are in the market cycle, and their current price of $32.75, I suggest long-term investors avoid buying Westpac shares, for now.
Telstra
Telstra has a lot to offer investors focused on both growth and income. Whilst Telstra's dominant mobile, fixed line and media businesses provide excellent recurring cash flows, its international expansion into Asia also bodes well for the long-term. However, after more than doubling in price during the past five years, the $75 billion telco now looks to be trading around fair value. I would add Telstra shares to my portfolio around $5 per share. Currently trading at $6.14 apiece, I think they're a hold.
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