While it's understandable that many Aussie investors are pretty downbeat, the future of the ASX could be a lot brighter than it currently looks.
After all, even though unemployment is relatively high and commodity prices are hurting the wider economy, there are still reasons to be bullish on the future of the stock market.
In fact, here are three stocks that are prime examples of why now could be a great time to invest in blue-chips for their long-term growth potential.
Origin Energy Ltd
Looking back over the last 10 years, Origin Energy Ltd (ASX: ORG) has a very strong track record of earnings growth. For example, during the period its bottom line has increased at an annualised rate of 7%. That's hugely impressive and, although the low price of oil is inevitably going to hit its future profitability, the company's limited exposure to the commodity means that it could still deliver strong performance moving forward.
In addition, shares in Origin Energy continue to offer good value for money – especially since they have fallen by 24% in the last three months. In fact, they now trade on a price to book (P/B) ratio of only 0.89 and, with a yield of 4.6%, seem to offer considerable income potential as well as great value. As such, they could be worth buying right now.
Macquarie Group Ltd
Holding a stake in Macquarie Group Ltd (ASX: MQG) over the last three years has proven to be a roaring success. That's because shares in the wealth management group have delivered a total shareholder return of 38% per annum during the period, which is hugely impressive and leaves the majority of ASX stocks in its wake.
Part of the reason for this has been the company's excellent dividend growth rate, with dividends per share increasing by a whopping 91% in the last year alone. This has helped to push Macquarie's share price higher as investor demand for a high yield increases and, despite this, Macquarie still yields a highly enticing (and partially franked) 4.9% at its current price level.
With investor sentiment being remarkably high, now could be a great time to buy shares in Macquarie Group – especially with its continued exposure to fast-growing, international markets having the potential to push profitability even higher in 2015.
National Australia Bank Ltd.
A recent report from Fitch states that Australian bank profit growth is likely to slow this year, as higher bad debt charges and a more competitive marketplace squeeze margins. However, forecasts for National Australia Bank Ltd. (ASX: NAB) do not seem to reflect this pessimism, since the bank is expected to deliver annualised growth in its bottom line of 16.7% over the next two years which, if met, would be an astounding result.
Despite such strong growth prospects, NAB still appears to offer excellent value for money. For example, it trades on a price to earnings growth (PEG) ratio of just 0.88, which while appealing on an absolute basis, is even more so when compared to the PEG ratio of the ASX (1.97) and the wider banking sector (1.68). As such, NAB seems to be worth buying right now, even if the outlook for the wider banking sector may be somewhat uncertain.
