4 cheap growth stocks I want to buy

Share prices change every day. It’s best to ignore the daily movements if you’re a shareholder in it for the long haul. However, it can throw up opportunities if you want to buy shares.

Below are four ideas that look like good value to me:

Collins Foods Ltd (ASX: CKF)

This is the operator of KFCs in several Australian states as well as in Germany and the Netherlands.

It’s the expansion overseas which is the exciting part to me, which could see it replicate some of the success seen by Domino’s Pizza Enterprises Ltd. (ASX: DMP).

It’s currently trading at 18x FY16’s earnings with a grossed-up dividend yield of 4.10%.

Retail Food Group Limited (ASX: RFG)

This is the master franchisor for names such as Gloria Jean’s, Crust Pizza and Cafe2U.

Sentiment has turned against the business with its shares down by 23% since its high at the start of 2017. However, its expanding network overseas could see it fuel growth for years to come.

It’s currently trading at 14x FY16’s earnings with a grossed-up dividend yield of 7.42%.

Crown Resorts Ltd (ASX: CWN)

Crown is one of Australia’s largest entertainment and gambling businesses.

The recent arrests of a few of its employees in China have left the shares on a run of bad luck, although the shares seem to be having a turn of fortune. It might be time to buy before the price fully recovers.

Crown is currently trading at 24x FY17’s estimated earnings with a committed partially franked future yield of 4.68%.

Bapcor Ltd (ASX: BAP)

Bapcor is the automotive business behind names like Burson Auto Parts, autObarn, Midas and ABS.

The shares are down 20% from its all-time high in August 2016 which I think is harsh considering the company unveiled a 33.4% pro-forma growth in earnings per share (EPS) in its latest report to 31st December 2016.

Bapcor is trading at 28x FY17’s estimated earnings with a grossed-up dividend yield of 3%.

Foolish takeaway

I think all four of these are good options for Foolish investors willing to take on a bit of risk.

Retail Food Group and Crown could be good options for investors looking for income whilst Bapcor and Collins could provide nice growth for investors looking for capital growth.

For even more growth ideas which pay a decent dividend yield, you should check out this report prepared by our analysts.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

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Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

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The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

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The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Crown Resorts Limited and Retail Food Group Limited. Motley Fool contributor Tristan Harrison owns shares of Bapcor. The Motley Fool Australia owns shares of Bapcor. 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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