Due to the coronavirus pandemic, the S&P/ASX 200 Index (ASX: XJO) has fallen heavily over the last three months.
And while it has rebounded notably from its lows, it is still a long way off the highs it reached in February.
Although this is disappointing for investors, I remain optimistic that the share market will bounce back strongly once the crisis blows over.
In light of this, I think now is the time to look for the shares to buy before the market rebounds. Three that I would buy are listed below:
EML Payments is a payments solutions company with a focus on digital gift cards and pre-paid cards. In respect to the latter, the company provides branded cards that can store customer account credit. This includes the cards that online bookmakers like Ladbrokes, Neds and BetEasy often use to transfer betting winnings to their customers. It also provides the cards for a number of large salary packaging companies. EML has been growing at a very strong rate over the last few years and looks well-positioned to continue this trend once the crisis passes. Especially following the acquisition of Prepaid Financial Services. This will allow the company to enter the emerging field of banking as a service (BaaS) and could be a key driver of growth in the coming years. So with its shares down 25% year to date, now could be an opportune time to take a closer look.
Ramsay Health Care Limited (ASX: RHC)
It has been a difficult couple of years for this private healthcare company and its 480 global facilities. Unfortunately, the coronavirus pandemic isn’t making things any easier and more tough times lie ahead. However, I believe its shares have more than priced in this short term headwind. As a result, I think it would be well worth focusing on its long term outlook, which remains very positive thanks to its world class global network and expansion/acquisition opportunities.
Sydney Airport Holdings Pty Ltd (ASX: SYD)
The Sydney Airport share price has come under significant pressure in 2020 and is down 37% year to date. Investors have of course been selling the airport operator’s shares due to the coronavirus pandemic and the impact this is having and will continue to have on passenger numbers. While the short term is admittedly bleak, I don’t think it will take too long for it to bounce back. Barring a second wave, it looks as though domestic travel will start its recovery in July. International travel will take longer, but a recovery will come in time. This could make it worth being patient with Sydney Airport’s shares and holding them with a long term view.
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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 Emerchants Limited. The Motley Fool Australia has recommended Emerchants Limited and Ramsay Health Care 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.
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