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Should you buy Westfield Corp Ltd shares in 2016?

It’s been something of a rollercoaster ride for shareholders of Westfield Corp Ltd (ASX: WFD) in 2015 with the shares trading within a rather broad range between a low of $8.83 and $10.66. They hit a high of $10.49 again in November but have since retreated to just $9.63.

Are the shares a buy for 2016?

Westfield is a name familiar to most Australians – the majority of individuals will have had at least one experience within one of the group’s various shopping centres. In June 2014, the group was split in two with Scentre Group Ltd (ASX: SCG) inheriting the Australia and New Zealand shopping centres, while Westfield Corp itself now owns and operates Westfield-branded centres internationally in the United States and United Kingdom.

Of the pair, Westfield Corp is widely regarded as being the one with greater growth potential, especially considering it can expand outside of its current markets. It’s also expected to benefit as the US and European economies recover and, while it generates all of its earnings in foreign markets, it is also great for Australian investors thanks to the weak Australian dollar.

Westfield Corp was most recently in the news after it divested another five of its ‘non-core’ assets, freeing up approximately US$1 billion in net proceeds. This money will be reinvested into higher-quality assets, or what Westfield Corp considers to be its ‘flagship’ centres, which can, on average, generate far greater returns.

While this could impact earnings in the near-term, it’s great for long-term investors. Although the shares have been somewhat volatile in 2015, and could continue to be in 2016, any dip in their share price could be a great opportunity for long-term investors to make their move.

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Motley Fool contributor Ryan Newman has no position in any stocks mentioned. Unless otherwise noted, the author does not have a position in any stocks mentioned by the author in the comments below. You can follow Ryan on Twitter @ASXvalueinvest.

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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