Life as an investor can often be disappointing. That's because it is possible to make all of the right decisions based on the facts on offer and, in the short term at least, end up with paper losses.
That's exactly the situation which many Aussie investors are currently facing. The ASX has disappointed in 2015 and is down over 6% since the turn of the year. And, while investing at any point this year in high-quality stocks for the long term is likely to prove to be a sound move, at the moment the decision to do so has not paid off.
And, while things could get worse before they get better, a number of stocks that have disappointed in 2015 appear to be capable of staging a stunning comeback in the months and years ahead. As such, the likes of National Australia Bank Ltd. (ASX: NAB), Amcor Limited (ASX: AMC) and Origin Energy Ltd (ASX: ORG) appear to be well-worth buying.
In NAB's case, its shares have fallen by 10% since the turn of the year, with concerns surrounding the future of the Aussie economy causing investor sentiment to wane. And, while a recession is certainly not off the table, NAB continues to offer a superb yield of 6.5% (fully franked), which should provide support to its share price. Furthermore, if interest rates do (as expected) fall further, then demand for high yields could push NAB's share price higher.
In addition, NAB is also expected to record a rise in net profit of almost 12% per annum during the next two years and, while poor economic performance may cause its guidance to be downgraded, NAB's price to earnings (P/E) ratio of 12.5 indicates a relatively wide margin of safety – especially since the ASX trades on a P/E ratio of 14.8.
Similarly, packaging company, Amcor, has fallen by 3% since the turn of the year. But, with a large proportion of its earnings being derived from outside of Australia, it is likely to gain a boost from a weakening Aussie Dollar.
This is at least partly why its bottom line is set to rise by over 6% in the financial year 2017 and, with the company forming an integral part of the supply chain for its customers and being able to add real value in this space by delivering improved efficiencies for them, its earnings visibility is relatively high. This should provide the company's investors with a degree of confidence in its future outlook and deliver a more stable shareholder experience. And, with Amcor trading on a price to sales (P/S) ratio of 1.3, versus a P/S ratio of 2 for the wider materials sector, it appears to offer good value for money, too.
In addition, integrated energy company, Origin Energy, also has turnaround potential following its share price fall of 37% since the turn of the year. That's because it offers a potent mix of growth, value and income prospects. For example, it is forecast to increase its bottom line at an annualised rate of 9.5% during the next two years and this could act as a positive catalyst to push its P/E ratio of just 10.2 significantly higher.
And, with Origin Energy currently yielding 6.7%, versus 4.9% for the index, its shares could become more in-demand as monetary policy loosens further. Meanwhile, with cash flow having risen by 7% per annum during the last five years, its financial outlook appears to be positive, too, which is likely to provide the market with increased confidence regarding its financial standing.
