Due to the market crash in March, a number of shares are trading significantly lower than their 52-week highs.
While not all shares are necessarily bargain buys, a few which I think could be great value are listed below. Here’s why I like them at these levels:
The Aristocrat Leisure Limited (ASX: ALL) share price is down 29% from its 52-week high. This has left the gaming technology company’s shares trading at 21x estimated FY 2021 earnings. I think this makes them great value based on its long term growth prospects. Aristocrat Leisure appears well-positioned to deliver strong earnings growth over the next decade thanks to its leading pokie machine business and fast-growing digital business. The latter is generating significant recurring revenues from its millions of daily active users.
The Clover Corporation Limited (ASX: CLV) share price has lost a third of its value since peaking at $3.31. This has brought the shares of the infant formula ingredients producer down to an estimated 27x FY 2021 earnings. While this is still a notable premium to the market average, I believe it is a good price to pay for a company with such strong growth potential. Clover’s business looks well-placed to benefit from increasing demand for infant formula and favourable changes to ingredient requirements in a number of key markets.
The Sydney Airport Holdings Pty Ltd (ASX: SYD) share price is trading 33% below its 52-week high. Investors have been selling the airport operator’s shares after the coronavirus pandemic made its terminals a ghost town. And while it will take time for passenger numbers to recover fully, it will inevitably come in time. I think this makes it well worth taking advantage of this share price weakness by making a patient long-term investment.
And here are more top shares to consider buying. All five recommendations below look like future market beaters…
One trick to potentially generating life-changing wealth from the stock market is to buy early-stage growth companies when their share prices still look dirt cheap.
Motley Fool’s resident tech stock expert Dr. Anirban Mahanti has identified 5 stocks he thinks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
More reading
- Where to invest $5,000 in an irrational market
- 3 fantastic ASX 50 shares I would buy today
- 3 ASX shares to buy for 2021
- 2 quality ASX 200 shares to buy for long-term growth
- Investing $1,000 into these ASX 200 shares could be a smart move
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia has no position in any of the stocks mentioned. 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.
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