With the ASX having risen by almost 5% in the last month, it seems as though investor sentiment is back on-track after a 'wobble' in September and early October.
Despite this, the ASX is still below its 2014 high of 5,658 and considerably lower than its all-time high of 6,700 that was achieved all the way back in in 2007.
Of course, whether the index is high, low, or somewhere in between, there are always high quality stocks available at great prices.
With this in mind, can these three stocks really be included in that category? In other words, should you buy them right now?
BHP Billiton Limited
Despite often being talked about as a highly diversified mining group, even BHP Billiton Limited (ASX: BHP) has been hit hard by a low iron ore price. Indeed, shares in the company have fallen by 9% during the course of the year and, until recently, had shown little sign of life.
However, with news that BHP has begun exporting oil from the US (in the form of processed condensate) and the fact it has a stunningly low cost curve in iron ore mining, it could be worth buying shares in the mining play.
Indeed, sentiment seems to be on the up and could rise further as investors begin to see the logic behind investing in a mining company that yields a fully franked 4% and which trades on a price-earnings (P/E) ratio of just 13.6. In addition, with earnings set to grow by a whopping 27.6% in FY 2016, the market could start looking ahead to a brighter period for the company as we move through the course of 2015.
Telstra Corporation
Although the ASX has shown signs of improvement in recent weeks, further gains are not guaranteed. Many investors, therefore, may seek out highly defensive stocks that have bright long-term futures. One company that falls into that category is Telstra Corporation Ltd (ASX: TLS).
That's because it remains the pre-eminent player in the Aussie broadband, mobile and pay-tv markets, but has growth potential outside Australia, too. For example, it is aiming to generate around 30% of total revenue from Asia by 2020, which if met could mean a more enticing growth profile for the long term.
With shares in Telstra offering a fully franked yield of 5.2% and a beta of just 0.5, it could prove to be a prudent buy at present.
Macquarie Group
Having released a strong recent set of interim results, Macquarie Group Ltd (ASX: MQG) seems to be a strong buy at present. Indeed, profit for the first half of the year was 42% up on the same period last year and, looking ahead, full year numbers are set to rise at an annualised rate of 10% over the next two years.
Furthermore, with the bank offering a partially franked dividend yield of 4.5% and having a price-earnings to growth (PEG) ratio of 1.56, it seems to offer upbeat income, growth and value potential.
And, if you're bullish on the future for the ASX and global markets, investing in an asset manager and investment bank such as Macquarie could act as a geared play on the wider market. With a beta of 1.1, Macquarie could beat a rising ASX over the medium to long term.
