Yesterday the unthinkable happened and Donald Trump won the race to become the 45th President of the United States. The shock result caused markets around the world to crumble as investors fled to safe haven assets.
In my opinion the sell off was a huge overreaction. But as disappointing as it was, it has created a number of bargain opportunities for investors. Here are four post-election bargains to consider:
a2 Milk Company Ltd (Australia) (ASX: A2M)
The shares of this leading dairy company fell 5% yesterday, wiping out almost all of its gains from the day before. On Tuesday a2’s shares rocketed higher after the release of its first quarter results which revealed a 40% increase in revenue on the prior corresponding period. A key driver of the result appears to be the sustained demand for its products from the China market.
Appen Ltd (ASX: APX)
Appen was one of the hardest hit shares yesterday, falling a massive 9%. This means the leading language services and technology company’s shares are now changing hands at just 24x estimated FY 2017’s earnings. According to CommSec, analysts expect Appen to grow earnings by 25% per year for at least the next couple of years. In my opinion this makes it a great time to make an investment in the company.
Class Ltd (ASX: CL1)
Fintech star Class fell almost 6% yesterday, extending its one-month decline to 16.5%. Although its shares are still priced at a premium over the market average, I believe the growth the company has been exhibiting warrants its rise. In the most recent quarter Class added 11,880 billable SMSFs to it Class Super platform. This brought the total to 122,494, which is the equivalent of a 20.9% market share.
Corporate Travel Management Ltd (ASX: CTD)
Although Corporate Travel Management only fell around 3.5%, I think investors should seize any opportunity they get to buy this quality company at a cheaper price. At 28x estimated FY 2017 earnings its shares may not appear cheap, but the explosive growth that it has produced justifies the premium in my opinion.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia owns shares of A2 Milk, Class Limited, and Corporate Travel Management Limited. 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.