The old investment adage 'buy low and sell high' is something that a large proportion of investors attempt to follow.
Of course, it's a great way to approach buying and selling shares and, if performed successfully, can lead to exceptional long-term gains.
However, what isn't pointed out is just how important the first part of the saying is. The part about buying. Indeed, it seems as though if you can buy the right stocks at the right prices, then selling is the relatively easy part.
With that in mind, here are three stocks that seem to be worth buying right now.
Woolworths Limited
With shares in Woolworths Limited (ASX: WOW) performing well in 2014, it could be argued that they are due a pullback. After all, the Aussie retail favourite has seen its share price rise by over 5% (versus 2% for the ASX) during the course of the year.
However, there could be much more to come. For starters, Woolworths remains highly attractive as an income play, with a fully franked yield of 4% set to grow over the next two years as dividends per share are expected to rise by 5.4% per annum.
Furthermore, with Woolworths having a beta of just 0.7, it could prove to be a sound defensive play should the ASX continue to experience the increased volatility that has been a feature of the market over the last few months.
CSL Limited
A feature of healthcare stocks such as CSL Limited (ASX: CSL) is that when market volatility increases, demand for its shares also increases. In other words, there is positive correlation between market volatility and demand for healthcare stocks.
So, it is of little surprise that shares in CSL have risen by a whopping 17% in the last three months, while the ASX has fallen by 3% during the same time period. However, there could be much more to come, since CSL is expected to grow earnings at an annualised rate of 15.4% over the next two years, which could ensure that demand for the company's shares remains buoyant.
Indeed, a PEG ratio of just 1.7 combined with hugely enticing defensive properties could prove to be a potent combination moving forward.
Rio Tinto Limited
The present time could also be an opportune moment to buy shares in Rio Tinto Limited (ASX: RIO). That's because, while the company's bottom line is struggling to gain ground following a disastrous period for commodity prices, it looks to be in great shape for the long haul.
In fact, Rio Tinto's efficiency drive is a major reason why it is expected to increase earnings by 8.7% next year. With shares in the company trading on a P/E ratio of just 11, this equates to a PEG ratio of 1.3. As a result, Rio Tinto could prove to be a surprisingly strong performer over the medium to long term.
