It's disappointing to see our shares go down in value. However, I still get excited when there's a stock market crash because of all the lower prices we can buy ASX shares at.
The last few weeks have seen a strong recovery in a number of share prices. But, if there were to be another bear market, then there are a few names I'd definitely want to look at.
I'd guess the names below could see more share price pain than the S&P/ASX 200 Index (ASX: XJO) next time there's a crash because of the nature of the industries they are in. But I like their long-term outlooks.
Temple & Webster Group Ltd (ASX: TPW)
This is one of my favourite ASX retail shares. I like that it sells a vast number of furniture, homewares, and home improvement products. It's targeting very large addressable markets in Australia and aims to be number one in the online homewares and furniture space.
The ASX share is investing heavily in growth initiatives including AI customer service and interior design offerings, marketing, new product ranges, and so on.
Temple & Webster is expecting its profit margins to significantly rise as it scales. I think the market will send the Temple & Webster share price much higher as it proves its profit potential in the long term.
I like the tailwinds of the long-term adoption of online shopping and that Australia's growing population could help the company drive revenue growth.
If the Temple & Webster share price were to fall to around $5, I'd love to buy some more for my portfolio. It opened the trading week this morning at $6.55 a share.
Nick Scali Limited (ASX: NCK)
Nick Scali is another ASX retail share that I really like. It sells quality furniture from a national network of stores and it's aiming for growth in New Zealand as well. It also has an avenue of possible growth with the Plush business it recently bought.
It'd be understandable the average household is less likely to buy a Nick Scali sofa in 2024 than in FY22, given the run of interest rate rises and the increase in the cost of living.
However, weaker consumer demand and a lower Nick Scali share price could be a good time to invest because, in my view, it's the area of the economy that acts cyclically.
This is the type of business I'd like to buy in a stock market crash. It has great, long-term focused management, an excellent return on equity (ROE), a beneficial commitment to shareholder returns (including good dividends), and international store expansion (including the possibility of a UK move).
Commsec forecasts the ASX share could pay a dividend per share of 59 cents, which is a grossed-up dividend yield of around 7% at the current Nick Scali share price. It would be more if the valuation declined.
Pacific Current Group Ltd (ASX: PAC)
This is a business that invests in fund managers such as GQG Partners Inc (ASX: GQG), ROC Partners, Victory Park, Banner Oak, Astarte, Avante, and Aether.
It recently went through a strategic process that almost saw the business taken over, but there now seems to be no takeover happening. The Pacific Current share price has fallen 25% since 27 September 2023.
I think the company is invested in a strong group of managers that can collectively deliver growth over the longer term. The share prices of fund managers tend to be quite volatile because of how changes in the share market can affect funds under management (FUM), which then impacts earnings. However, I believe market declines can be an opportunity to look at good fund managers.