Recently, the Australian stock market's volatility has created fantastic buying opportunities.
Especially for those investors who are focused on growth stocks with significant upside potential in the long term.
Four which currently appear to offer outstanding value are Yellow Brick Road Holdings Ltd (ASX: YBR), NetComm Wireless Ltd (ASX: NTC), Infomedia Limited (ASX: IFM) and Affinity Education Group Ltd (ASX:AFJ).
Yellow Brick Road (YBR) is a small-cap diversified wealth manager which is currently expanding its number of local branches around Australia. Since the beginning of September, its share price has fallen 7%. Although not yet profitable, YBR's strategy is to build its physical presence via a storefront rollout in order to become profitable in the near future. Indeed, between FY13 and FY14, branch network revenues increased 38% whilst operating expenses fell 1%.
NetComm Wireless is a $75 million company looking to capitalise on the rise of The Internet of Things. That is, machine to machine (M2M) communication. The group has recently transformed away from consumer related devices and is focused on forming partnerships with global telecommunications companies. After a huge swing to profit in FY14, management continue to be excited about the future of the company.
Affinity Education Group is a recently-listed childcare centre owner and operator. Since listing on the market, Affinity hasn't wasted any time putting its new shareholders' money to work, aggressively expanding its portfolio of centres. Analysts are expecting strong earnings per share growth in the next few years. However with the pain of ABC Learning's spectacular collapse still fresh in investors' minds, shareholders must make sure management uphold their investment criteria and pay a fair price for new centres.
Lastly, Infomedia provides information technology services for the automotive industry, throughout 186 countries. The company has transformed its business to adapt to the changing technology landscape by focusing on a simpler and more easily accessible product for its customers. Its services provide accurate billing information, parts ordering and servicing tools. Infomedia shares have climbed rapidly in the past few years, but as the company builds scale and continues to roll out its very profitable Superservice product, it could go even higher.
Our #1 ASX stock for 2015 – Yours FREE!
