If there’s one thing that the market hates, it’s uncertainty, and there’s been plenty of that going around lately as a result of the Greek ‘debt crisis’, China’s stock market woes and plummeting commodity prices – to name just a few factors.
Although the market has been rocked by severe turbulence over the last week or so; there’s been little to show for it with the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) actually recording a slight gain.
To be fair, the market is still sitting well below the high levels recorded in March and April this year, where it went agonisingly close to breaching the 6,000 point mark. Indeed, the ASX 200 is currently hovering just under 5,600 points with a number of high-quality companies presenting as fantastic opportunities for the long-term investor.
However, I expect there could be plenty more volatility in the coming weeks which could see local stocks plunge even further. With the old adage, “The time to invest in shares is when there is blood in the streets,” kept firmly in mind, here are five stocks that are presenting as good value now and need to be on your watchlist in case of further falls.
- Collection House Limited (ASX: CLH) is an Australian-based debt collection agency which has shed more than 14% of its price since March, despite the absence of any bad news. The company has an excellent track record for revenue, earnings and dividend growth. Its lower price has had a positive impact on its dividend yield which has ballooned out to 4.2% fully franked, which is fantastic for a company with such strong growth prospects.
- ResMed Inc. (CHESS) (ASX: RMD) develops and manufactures medical products for the treatment of various respiratory disorders, with a particular focus on sleep apnea. The stock hit a high of $9.84 in April but has since shed a quarter of its value to trade at just $7.34 following an unsuccessful SERVE-HR clinical trial, which investors hoped could be the company’s gateway into the heart-failure market. Regardless, ResMed is a top-notch corporation with excellent growth prospects and presents as compelling value today.
- 1-Page Ltd (ASX: 1PG) provides a cloud-based human resources software-as-a-service (SaaS) platform which could ultimately revolutionise the way in which employers hire and promote staff. The stock has skyrocketed since its late-2014 debut but a pullback could offer investors a better opportunity to buy. The shares currently trade for $1.86, down from a high of $2.29.
- Coca-Cola Amatil Ltd (ASX: CCL) has plunged nearly 16% since maxing out at $11 per share three months ago, and now trades at $9.29. Although the beverage manufacturer is by no means a risk-free investment, the group’s management team appears to be making the right moves to turn the ship around and expects a return to earnings per share growth in the near future. At the same time, the stock is expected to yield 4.5%, franked to 75%.
- oOh!Media Ltd (ASX: OML) is Australia’s largest out-of-home media company, offering advertising spaces in locations such as shopping centres, airports or on roadside billboards. The digitisation of advertising boards offers oOh!Media a great opportunity to grow earnings and it could be very rewarding for shareholders over the long term. The stock currently trades at $2.55, down from a high of $2.75, and could be a good pick-up should the shares fall any further.
Of course, it’s important to remember that the art to successful investing is time in the market rather than timing the market. Personally, I think each of the companies mentioned above could be great pick-ups today, but would simply become more attractive should the market fall any further.
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The Motley Fool Australia has no position in any of the stocks 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 policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.