Although it is still early in December, investors could be forgiven for thinking Christmas has come early with so many bargain buys on the ASX.
Whilst the bargains are great in number, there are four shares in particular which jump out at me. Here's why these 4 shares are at the top of my Christmas list:
BWX Ltd (ASX: BWX)
As this growing skincare company has fallen 29% from its July high, investors can snap up shares for just 21x estimated FY 2017's earnings. Whilst this may be a premium to the market average, I believe its strong earnings growth potential more than justifies it. Thanks to continued growth in China and the launch of its Sukin brand in the UK, analysts have forecast BWX to grow its earnings by 34.5% per annum through to FY 2019 according to CommSec.
Catapult Group International Ltd (ASX: CAT)
Sports analytics company Catapult Group has seen its share price plummet 25% in the last three months. A fair portion of this has come in the last few days as investors were left unimpressed with the company's revenue growth guidance of 21% to 30% in FY 2017. I believe the sell off in Catapult Group's shares makes them great value for a buy and hold investment.
Mayne Pharma Group Ltd (ASX: MYX)
This fast-growing pharmaceutical company's share price has fallen 25% in the last three months largely due to being under investigation from the U.S. Department of Justice for price fixing. But as management doesn't believe any penalties imposed will be material to earnings, now could be a great time to pick up shares. Last week the company reported that sales for the first four months of FY 2017 grew 104% on the prior corresponding period to $172 million.
TPG Telecom Ltd (ASX: TPM)
Perhaps the biggest bargain of them all is telco giant TPG Telecom. Its shares are down a staggering 45% in the last three months following underwhelming full year profit guidance and concerns over NBN margins. I can't help but feel that these concerns have been overblown and expect the company will return to a solid level of growth again next year. So at just 17x estimated FY 2017's earnings, TPG Telecom looks remarkably cheap.
