A bull market can feel great for individual investors – it's always nice to see those big gains in your brokerage account – but it can also make the pickings slim when you're scouting for new ideas and new shares to add for your portfolio. Still, opportunities exist, hiding in plain sight.
You couldn't say Telstra (ASX: TLS) hasn't made big recent gains. Telstra shares, not including dividends, have climbed by some 36% over the last 12 months, versus a 20% climb in the S&P/ASX 200 index (Index: ^AXJO) (ASX: XJO). Yet the shares don't look wildly expensive today, especially considering the profit growth as evidenced in the company's recently posted full year results, at less than 17 times earnings and a fully franked dividend yield over 5%.
As another idea, online travel business Wotif.com (ASX: WTF) boasts phenomenal margins, 100% at the gross level and 40% at the net level, and should be able to grow its business in Australia and Asia over time, despite recent challenges. With shares trading for 17 times earnings and the fully franked dividend yield over 5%, the company appears attractive – and arguably, overlooked or simply underestimated by the investment crowd.
Finally, department store chain Myer (ASX: MYR) is trading for less than 11 times earnings despite modest sales growth, manageable debt levels, and a large base of loyal customers. With the shares paying a dividend yield over 7%, it's hard not to think this company will outperform the overall market over the next 3 to 5 years.
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More reading
- Spotlight on Woolworths
- For growth and dividends, you can't beat this stock
- Buy stocks now, while they're cheap!
Motley Fool writer/analyst Catherine Baab-Muguira owns no shares in any company mentioned in this article.
