There are a lot of different types of investors out there.
There are investors that have a focus on dividends, others that are looking for growth, and some investors are searching for shares which they feel are undervalued.
Whichever type of investor you are, I feel one of the shares listed below will appeal to you. Here's why I think they are in the buy zone:
Commonwealth Bank of Australia (ASX: CBA)
Investors in search of income might want to take a look at Commonwealth Bank. Although its shares have been on fire in recent weeks, they are still down 21% from their high. I think this leaves them trading at a very attractive level for a long term and patient investment. Times may be hard for the banks right now, but I'm optimistic the worst is behind them. And although I expect another dividend cut in FY 2021, I'm confident this is the bottom of the cycle. Furthermore, even if the bank were to cut its dividend to ~$3.70 per share next year (which I expect), it would still be a generous fully franked 5.1% dividend yield.
ResMed Inc. (ASX: RMD)
If you're looking for growth shares then I think ResMed is worth considering. It is a medical device company which is exposed to the proliferation of sleep apnoea. I believe ResMed is perfectly positioned to capture the rising demand for sleep treatment products this is causing. This is thanks to its leading CPAP masks and machines and its growing software businesses – Brightree and MatrixCare. All in all, I believe ResMed can grow its earnings and a strong rate over the next decade and beyond.
Freedom Foods Group Ltd (ASX: FNP)
I think Freedom Foods could be a good option for value investors. Its shares have fallen heavily over the last couple of weeks after a surprisingly disappointing trading update. That update revealed that a number of sales channels had been impacted greatly by the pandemic. However, I believe this weakness will be short-lived and expect its sales to rebound quickly. This view is shared by analysts at Goldman Sachs who are forecasting earnings per share of 20 cents in FY 2021 and then 30 cents in FY 2022. This means Freedom Foods' shares are changing hands at under 20x FY 2021 earnings and approximately 13x FY 2022 earnings.
