One positive from the recent market meltdown is that it has pulled back the share prices of a number of companies that I think would make great long-term investments.
Three in the mid cap space that have recently become cheaper are listed below. Here’s why I think they could be worth considering in November:
Bingo Industries Ltd (ASX: BIN)
Bingo Industries is one of Australia’s leading waste management companies. Its shares have now fallen 26% since peaking at $3.27 in September, which leaves them trading at under 21x earnings currently. I think is great value given its defensive qualities and strong long-term growth potential due to its expansion plans. This year management expects EBITDA growth in the range of 15% to 20%, excluding the potential benefits of its $577.5 million acquisition of Dial A Dump Industries.
Helloworld Travel Ltd (ASX: HLO)
Helloworld is an integrated travel company which has been a strong performer over the last 12 months. However, I believe a recent pullback in its share price has created a buying opportunity for investors. At present its shares are priced at 19.5x earnings, which is considerably lower than the rest of the industry. I think this is great value given that management expects earnings growth in the range of 16.5% and 23% this year.
Macquarie Telecom Group Ltd (ASX: MAQ)
Another mid cap star that has been cut down recently its Macquarie Telecom. The recent market volatility has dragged its shares down 15% from their 52-week high, leaving them trading at 26x earnings. While this is still a decent premium over the market average, I believe the long-term growth potential of its data centres business justifies this. This business has been growing at an explosive rate over the last few years and could continue doing so for the foreseeable future after recent capacity expansions were made in order to capture the increasing demand for data centre services.
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Helloworld 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 Scott Phillips.