The prices of shares are always changing, which means that different shares are good value at different times. If you're trying to build a market-beating portfolio of shares then it's important to find the right shares at the right price.
Here are four ideas I'd be happy to buy today:
Paragon Care Ltd (ASX: PGC)
Paragon is a small cap healthcare business. There aren't many businesses on the ASX that offer investors a broad exposure to the growing expenditure on healthcare in this country. Private health insurance and private hospitals are experiencing problems with affordability of premiums.
Paragon sells a variety of beds, equipment and devices to various healthcare providers like hospitals and aged care facilities. There is going to be an increase in demand from the ageing population over time and this should mean more demand for Paragon products.
The share price has risen by 13.7% over the past month, however it's currently trading at 15x FY18's estimated earnings.
MNF Group Ltd (ASX: MNF)
MNF is one of the world's leading Voice over Internet Protocol providers. It has some major customers including Skype and Uber. Some experts believe that more and more of our electronic communication will be done verbally, which could be a positive for MNF.
The company is growing nicely organically each year, it's also re-launching Pennytel, which is aimed at the over 50s and is expected to be earnings before interest, tax, depreciation and amortisation (EBITDA) positive by FY19.
The share price is almost at its lowest in 2018, so it could be good value trading at 29x FY18's estimated earnings.
Greencross Limited (ASX: GXL)
The owner of Petbarn and Greencross Vets has seen its share price substantially deteriorate over the past month after the company announced various write-offs and provisions. If this is simply the case of a new CEO coming in and clearing the decks then Greencross could be a turnaround story.
The sheer amount of pets that visit a vet each year is a great source of recurring revenue for Greencross, so if it can slowly take more of the pet services pie it could be a long-term winner. However, I can understand why investors are nervous about online retail competitors.
It's now trading at around 12x FY19's estimated earnings.
WAM Microcap Limited (ASX: WMI)
WAM Microcap is a listed investment company (LIC), it aims for businesses at the smallest end of the share market. It looks for undervalued industrial growth companies with a market capitalisation of under $300 million at the time of acquisition.
Small caps offer investors the best way to outperform the market in my opinion, which combined with WAM's excellent investment process is a very good way to beat the market.
WAM Microcap has done well in its first year and it should hopefully be able to achieve excellent results over the next decade, although it will likely be more volatile than most LICs due to the focus on small caps. It's also trading at a less of a premium compared to some of the other WAM LICs.
Foolish takeaway
I like all four of these stocks and believe they will outperform the market over the next five years. At the current prices Greencross looks like the best value, but it could also be the riskiest. MNF would be a 'safer' growth stock choice.
