When it comes to investing, finding shares that are attractively priced can be challenging at times.
Indeed, shares in most companies are usually only trading at a low price due to uncertainty surrounding either their operations, or the future potential of the market.
However, here are three finance stocks that all trade at a discount to the ASX and have impressive future potential. As a result, they could give your portfolio a boost as we head into 2015.
Westpac Banking Corp
Shares in Westpac Banking Corp (ASX: WBC) are up 1% since the turn of the year, which is the same as the ASX's gains during the course of the year. However, Westpac continues to trade at a discount to the wider index, with its P/E ratio being 13.3, versus 15.3 for the ASX. As a result, its shares could be in-line for a rerating over the medium term.
A potential catalyst for this to take place is a continued low interest rate environment. Indeed, with the RBA apparently willing to move lower with interest rates so as to reduce the unemployment rate, banks such as Westpac could benefit from increased demand for loans moving forward. And, with such low rates, Westpac's fully franked yield of 5.7% looks set to remain relatively attractive, which could also increase investor demand for the shares.
Australia and New Zealand Banking Group
Although Australia and New Zealand Banking Group's (ASX: ANZ) share price has largely tracked the ASX throughout 2014, the bank has been making substantial changes to the way it operates so as to position itself favourably for long term growth.
Indeed, the bank's super regional strategy is focused on shifting the focus of the business away from Australia so as to diversify its geographic risk and also tap into strong growth markets across Asia. Although this strategy may take time to come to fruition, ANZ is performing well in the meantime and recently announced a $7.1 billion cash profit, which is impressive and shows the bank is making good progress.
Furthermore, with shares in ANZ trading on a P/E ratio of just 12.1 and having a dividend yield of 5.6% (fully franked), there could be stronger share price performance moving forward.
Macquarie Group
Also offering good value for money at present prices is Macquarie Group Ltd (ASX: MQG). Its shares trade on a P/E ratio of just 14.9, which is lower than the ASX's P/E ratio of 15.3, and seems unjustly low when the wealth management group's earnings forecasts are taken into account.
Indeed, Macquarie is expected to grow its bottom line at an annualised rate of 10% over the next two years and, combined with its P/E ratio, this equates to a PEG ratio of just 1.48. As such, growth seems to be on offer at a reasonable price, and this could lead to share price rises moving forward.
Of course, Macquarie's fees are largely driven by the level of the ASX, with a higher level being more beneficial to the company's top and bottom lines. And, with the ASX still being 25% off its 2007 high of 6,748, there could be value in buying shares in Macquarie at its current price level
