Buy these 3 stocks to instantly diversify your portfolio

These 3 stocks will give your portfolio good diversification.

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The share market is full of businesses in different industries and I think it's worth looking at diversifying your portfolio with shares beyond the typical stocks that most investors own.

Big businesses like Commonwealth Bank of Australia (ASX: CBA) and CSL Limited (ASX: CSL) are good but I think investors should also look at smaller, growing businesses as well like these:

Domino's Pizza Enterprises Ltd. (ASX: DMP)

Domino's is one of Australia's largest food businesses. It's a franchisor of Domino's in Australia, New Zealand, Japan, Belgium, France, Germany and the Netherlands.

The share price has been beaten up recently but I think the business could have a very good long-term future because it's growing profit margins, store numbers and same store sales.

Over the next decade the amount of technology that's implemented with ordering and delivery could really drive profits higher.

Domino's is currently trading at 29x FY18's estimated earnings.

Class Ltd (ASX: CL1)

Class is a cloud accounting software provider for self-managed superannuation fund administrators. It is also growing its new product, Class Portfolio, for non-SMSF portfolios.

The business has extremely high retention rates, a growing market share and high profit margins. All of these factors make it an attractive business, it also has a balance sheet in very good shape.

Class is currently trading at 38x FY18's estimated earnings.

Ramsay Health Care Limited (ASX: RHC)

Ramsay is one of the best ways to benefit from the ageing population in my opinion. It has  large number of high quality hospitals dotted around Australia, France and the UK. Ramsay will have more patients as the population gets older because sadly the oldest cohort is the one most likely to need to visit the hospital.

Ramsay is currently trading at 24x FY18's estimated earnings.

Foolish takeaway

I think all three shares are market-beating ideas at today's prices, but if I had to choose one I'd pick Ramsay because it's trading at the best value with the lowest price/earnings ratio and has a long growth runway.

Motley Fool contributor Tristan Harrison owns shares of Ramsay Health Care Limited. The Motley Fool Australia owns shares of Class Limited. The Motley Fool Australia has recommended Ramsay Health Care 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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