Most investors are more comfortable buying what's popular and in favour – that's understandable as there's nothing particularly pleasant about being on the side of on the nose businesses. However there is a big benefit to this approach, the opportunity to buy at an attractive price.
Here are three blue-chip stocks that are all trading near their 52-week lows, which look appealingly priced to me…
Ansell Limited (ASX: ANN) – this global leading manufacturer of gloves and condoms has seen its share price slump close to 40% in the past year. The sell-off would appear to largely relate to its earnings being negatively affected by exchange rate shifts which have analysts forecasting (according to data supplied by Morningstar) a drop in earnings per share (EPS) in the current financial year (FY). Earnings are expected to rebound in 2017, but they will remain below those achieved in FY 2015.
Based on forecast earnings for 2016, the stock is currently trading on a price-to-earnings (PE) ratio of just 12x.
Lend Lease Group (ASX: LLC) – shareholders in this global property and infrastructure development and management company have witnessed a slide of close to 30% in their shares in the past six months. This slide is despite consensus forecasts for growth in EPS year-on-year for the next two years.
Based on the forecast for 2016, the stock is trading on a PE of around 11x.
Wesfarmers Ltd (ASX: WES) – the share price of the owner of Coles, Bunnings and Officeworks businesses (amongst others) has held up well in comparison to the performance of the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) over the past six months. Despite this relative outperformance the stock is still trading down towards its one-year low.
Trading on a forward PE of 17.6x, the stock doesn't look expensive compared with the wider market.
