The best time to buy is when the share price is low, right?
To buy low you have to be financially brave and purchase shares when they seem unloved despite their promising long-term futures.
Here are three shares that you could look at next week:
National Veterinary Care Ltd (ASX: NVL)
National Vet Care is the second largest vet operator in Australia and New Zealand, yet has seen its share price fall by around a third since the start of the year.
Some of this is down to negativity surrounding peer Greencross Limited (ASX: GXL), however National Vet Care also came out with an update that the earnings before interest, tax, depreciation and amortisation (EBITDA) margin will be lower than expected for FY18.
However, it is still predicting strong revenue growth of more than 25% into FY19, so now could be a good time to buy shares and hold for the coming years.
Apiam Animal Health Ltd (ASX: AHX)
Apiam is another vet operator that has also suffered falls. However, Apiam is a regional operator with livestock animals being a major source of earnings. So it’s quite different to city vet businesses.
In a recent update to May 2018 it revealed reasonably impressive organic growth of 4.3% across all segments and group revenue growth of 8.9%. The company also predicted a rising underlying EBITDA margin for FY18.
Another growth driver could be its new co-location strategy of putting a vet inside a regional Petstocks.
Perhaps the drought will have a negative effect on Apiam, but the fall in share price could represent a good opportunity long-term.
Rural Funds Group (ASX: RFF)
Rural Funds is only one of two real estate investment trusts (REITs) on the ASX that invests purely in agricultural properties and leases them to tenants.
Its share price has been steadily falling in recent weeks, it’s now $1.99. Rising interest rates and the recent capital raising seem to be dampening the mood about the landlord.
However, I believe it’s one of the best income choices on the ASX due to its long-term contracts with rental indexation increases built into them. If you’ve been watching Rural Funds for a while, now could be the time to buy some shares.
It’s trading with a pleasing FY18 distribution yield of around 5%.
All three shares are more attractive than they have been for some time. At the current prices I am drawn to National Vet Care as a medium-term buy and Rural Funds Group as a long-term buy.
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Motley Fool contributor Tristan Harrison owns shares of Apiam Animal Health Ltd, Greencross Limited, NATVETCARE FPO, and RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended Greencross Limited and RURALFUNDS STAPLED. The Motley Fool Australia owns shares of NATVETCARE FPO. 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 Scott Phillips.