2015 has had one of the most volatile starts in recent memory. The plunging oil price, numerous terrorism events, and renewed concerns over the stability of the Eurozone has seen the S&P/ASX 200 (INDEXASX: XJO) swing wildly between 5465 and 5320 points.
The VOLATILITY S&P 500 (INDEXCBOE: VIX) index, a gauge of the volatility of the US S&P 500 index, increased swiftly from a reading of 14 before Christmas to above 22 on Tuesday last week. This represents the third highest reading in the last 12 months, and one of the highest readings in the last two years!
Accordingly, long-term investors now have the chance to scoop up some bargain stocks that have been unfairly punished in the volatility. Could these ten blue chips stocks, which are very close to or at their 12-month lows, be 2015's bargains?
- Crown Resorts Ltd (ASX: CWN)
- Village Roadshow Ltd (ASX: VRL)
- Woolworths Limited (ASX: WOW)
- Metcash Limited (ASX: MTS)
- Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)
- Australian Foundation Investment Co.Ltd. (ASX: AFI)
- Brickworks Limited (ASX: BKW)
- Asaleo Care Ltd (ASX: AHY)
- FlexiGroup Limited (ASX: FXL)
- Wesfarmers Ltd (ASX: WES)
2015 Ideas
With the probable exception of Metcash, all of the companies above have solid long-term growth prospects and look cheap – the perfect combination for Foolish investors. I'm a big fan of Crown and Flexigroup, while a number of other Foolish writers like the long-term outlook for Village Roadshow.
It's amazing to see how far Woolworths shares have fallen, and while presenting as less of a bargain, Wesfarmers shares have also come back close to 12-month lows. Long-term investors will recognise the strong position these companies hold in the local market and will likely have received years of uninterrupted dividends.
Soul Patts and Brickworks shareholders could also have a big year if the coal price and Australian consumer and business confidence recovers. In the meantime, their fully-franked dividends will help investors.
