Are these 5 stocks still bargain opportunities?

Tuesday’s 2.3% rally in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) was an epic performance considering the selling pressure the market faced on Monday.

Interestingly, the buying was broad based with a wide range of index constituents leading the market higher; although the banks certainly did their share of the heavy lifting too.

Also of interest was just how large the gains were amongst the top ten gainers with even the tenth largest gainer, Seven West Media Ltd (ASX: SWM), recording a rise of 5.9%.

These were the top five performers:

  1. Greencross Limited (ASX: GXL) soared 9.6% to $6.30 – no specific news
  2. Origin Energy Ltd (ASX: ORG) leapt 7.4% to $5.15 – despite a fall in the oil price
  3. Seven Group Holdings Ltd (ASX: SVW) added 7.3% to $5.15 – no specific news
  4. Slater & Gordon Limited (ASX: SGH) jumped 7.1% to $3.00 – no specific news
  5. Mayne Pharma Group Ltd (ASX: MYX) climbed 6.7% to $1.12 – no specific news

With Wall Street closing flat overnight, the ASX could be set to take a breather today. One exception may be commodity stocks with iron ore and oil both falling over 2%. This could mean Origin Energy gives up some of yesterday’s gains.

Interestingly of the five stocks which experienced the strongest gains yesterday, four of them – the exception is Mayne Pharma – have been heavily out of favour and all had experienced share price declines of over 20% in the past six months.

The jump higher is a reminder that heavily sold down stocks can rally quickly off of their lows. Heightened volatility can create buying opportunities for investors, however it’s important to act quickly as bargains don’t hang around too long.

Is a share market crash coming?

Volatility is on the rise and there are bargains available if you know where to look! Get our analysts' exclusive inside take now, in The Motley Fool's newly updated report, "What to Do When the Sharemarket Crashes" -- including expert tips on how to protect YOUR portfolio. Click here for your FREE copy now.

Motley Fool contributor Tim McArthur owns shares in Origin Energy Ltd and Slater & Gordon Ltd. 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.