MARKET SMASH: 5 opportunities in beaten-up sectors

The S&P/ASX 200 (INDEXASX:XJO) is a sea of red this morning. Here are five beaten-up stocks investors should pounce on.

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As investors can see from the below infographic, early morning trade has been rough on the vast majority of S&P/ASX 200 listed stocks.

(source: Nabtrade)
(source: Nabtrade)

However, shrewd buyers know that the best time to get in is when others are selling, and at least five of the stocks represented in the above heat map represent a sterling opportunity after (and actually before) today's falls.

Among the Industrials, SEEK Limited (ASX: SEK) has fallen 3% this morning to trade at its lowest price in more than 18 months. While company earnings are expected to be flat again in 2016, SEEK draws a significant amount of its earnings from overseas and the nature of its business is very long-term.

Today's falls represent the icing on what could be a substantial cake in ten years' time.

The healthcare sector also looks quite appealing with both ResMed Inc. (CHESS) (ASX: RMD) and Primary Health Care Limited (ASX: PRY) down 2.3% and 3.5% respectively. Both businesses have faced headwinds in recent times but the long-term outlook of the healthcare sector remains bright and I expect both stocks to make a sound 10-year investment.

Last but not least, in the consumer discretionary sector REA Group Limited (ASX: REA) has also dipped 2.5%. While it's not as cheap as it was back in June when it dipped under $40, REA has plenty of gas left in the tank as well as a respectable amount of room to expand sideways into areas traditionally occupied by real estate agents.

While not listed in the above heat map, similar business Carsales.Com Ltd (ASX: CAR) is also down 2.5% today and like REA Group, represents a solid long-term investment.

Motley Fool contributor Sean O'Neill owns shares of carsales.com Limited. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. 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.

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