How I’d invest $3,000 today

The share market has finally broken through the elusive 6,000 mark. Whether that means more growth is on the way or a crash is just around the corner remains to be seen.

However, it certainly does mean that it’s much harder to find value at the moment. All of the market darlings are trading at eye-popping valuations.

If I were going to invest $3,000 today, these are the three I’d pick:

Crown Resorts Ltd (ASX: CWN)

Crown is going through a bit of a rough time at the moment with allegations of machine tampering and VIP gamer numbers much lower than a couple of years ago.

I think this trouble is only a short-term problem and the business will grow again in the future, particularly when Crown Sydney is completed.

The current price offers a big dividend and decent value. It’s currently trading at 22x FY18’s estimated earnings with a partially franked dividend yield of 4.98%.

Greencross Limited (ASX: GXL)

There are few businesses on the ASX that are growing revenue strongly and trading with a price/earnings ratio as low as 14x FY18’s estimated earnings.

Greencross is part of a growing industry and I think the Amazon effect won’t hurt it anywhere near as much as the market is pricing that it will.

Greencross has a grossed-up dividend yield of 5.18%.

BWX Limited (ASX: BWX)

BWX is quickly becoming one of the world’s leading natural beauty brands. This industry is growing much faster than the ‘non-natural’ beauty sector.

I think BWX’s latest acquisitions in the USA of Mineral Fusion and Andalou Naturals Inc will be a big boost to growth over the coming years.

BWX is currently trading at 25x FY18’s estimated earnings with a grossed-up dividend yield of 1.4%.

Foolish takeaway

All three businesses could convincingly beat the market over the next five years if their growth strategies come to fruition, which I think they will have every chance of being successful.

At the current prices I think Greencross would be a good choice for income-seekers and BWX could be a growth stock to watch.

Other shares I’m very interested in buying are these growth stocks.

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Motley Fool contributor Tristan Harrison owns shares of BWX Limited and Greencross Limited. The Motley Fool Australia owns shares of BWX Limited, Crown Resorts Limited, and Greencross 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.

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