There are at least two situations when you can find a good growth stock at discounted prices.
One is where a regularly strong stock has risen appreciably and now the share price has come off the boil. Investors following momentum stocks now have a "wait and see" attitude and are chasing other "hot" stocks.
The second situation is where the company is doing fine, but the growth story in front of it is so appealing that the current price looks like a bargain compared to what it may be in the future.
Here are three stocks with good growth track records that I believe are at discount price levels currently. They're not quick flips though. They will probably serve you best over the long term, and be rewarding along the way.
IOOF Holdings Limited (ASX: IFL)
This financial services provider deals in a number of portfolio administration services like superannuation, annuities and financial planning. The superannuation industry is expanding rapidly with more people investing in shares and property through self-managed super funds (SMSF) and using annuities to supplement their retirement income.
It offers a wonderful 5.4% dividend yield fully franked. Its price/earnings ratio is about 16, which is in the lower range of its past average PE range.
Ansell Limited (ASX: ANN)
Famous for protective glovewear and condoms, the healthcare supplies producer has been trending down in share price from about $22 to $19 since September 2013. That followed a long price climb up from $8 in 2009, so I believe the stock is "taking a breather" currently. Consensus analyst forecasts are projecting solid earnings growth over the next two years.
FlexiGroup Limited (ASX: FXL)
This company provides leasing, vendor finance programs and credit card services and can be found in such stores like Harvey Norman Holdings Limited (ASX: HVN), offering instalment payment or rental agreement schemes for consumers.
Its net profit has almost tripled since 2007 and its return on equity is regularly in the high teens or 20s, so it has a good track record for earnings. The share price hit a low of about $3, but has climbed more than 20% to about $3.76 since last month. Its yield is a healthy 4.1% fully franked.
