Everyone has heard of the phrase 'buy low, sell high'. It's a great phrase and one that's important to remember so that you don't end up buying high and selling low.
To buy low you have to jump on opportunities when they arise. This isn't easy, it's hard to say where share prices will go in the short term. But if you do your analysis correctly and conservatively it should work out in the long run if you're brave and patient.
Here are three growth stocks I think are worth considering buying now:
Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
"Soul Patts" is its colloquial, shorter name. Soul Patts is an investment conglomerate that is regularly likened to Warren Buffet's Berkshire Hathaway. It has a diverse array of large investments in listed and unlisted companies such as TPG Telecom Ltd (ASX: TPM) and Brickworks Limited (ASX: BKW).
Soul Patts is a good company to buy at any time due to its long-term focus, good performance and diverse operations. However, I think now is a particularly good time to consider it because its biggest investment, TPG, is currently undervalued which is affecting the overall value of Soul Patts.
It's a great dividend payer too as it has paid a dividend through wars and various other troubles. It has increased its ordinary dividend every year since 2000. Soul Patts is currently trading at 20.4x FY17's estimated earnings with a grossed-up dividend yield of 4.65%.
Healthscope Ltd (ASX: HSO)
Healthscope is the second-biggest private hospital operator in Australia. Hospitals are its main business although it also has a small international pathology division too.
The Australian population is ageing and it's predicted there will be a growing number of hospital visits which will provide a large tailwind to Healthscope over the long term.
Healthscope is currently trading at 20.7x FY17's estimated earnings with an unfranked dividend yield of 3.5%.
Nanosonics Ltd. (ASX: NAN)
Nanosonics provides a hospital disinfectant medical device which uses ultrasound probes.
It's rapidly gaining traction around the world. I think it will become even more popular as hygiene standards improve globally.
Nanosonics is just starting to generate a profit which could rapidly expand as the extra sales will mostly fall to the bottom line from now on.
It's trading at 32x FY17's estimated earnings and doesn't yet pay a dividend.
Foolish takeaway
I think all three of these businesses are worth your consideration. Soul Patts will be a great income & growth stock for years to come, whilst Nanosonics could create a lot of capital growth from this price. For even more great stocks you should read this report on three great blue chips.
