Should you buy Ramsay Health Care Limited, Crown Resorts Ltd and Scentre Group Ltd?

Is now the right time to buy these 3 stocks? Ramsay Health Care Limited (ASX:RHC), Crown Resorts Ltd (ASX:CWN) and Scentre Group Ltd (ASX:SCG)

| More on:

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

With unemployment being relatively high, savings rates being low, and the outlook for the economy being somewhat downbeat, it's perhaps unsurprising that many Aussie investors are feeling a little pessimistic. Certainly, the future appears to be somewhat uncertain.

So, with many investors feeling the same, you could take advantage of attractive valuations and bag yourself some blue-chip bargains. With that in mind, could these three stocks be appealing enough to warrant a place in your portfolio?

Ramsay Health Care Limited

Although Ramsay Health Care Limited (ASX: RHC) is the major private hospital operator in Australia, that doesn't mean its growth potential is lacking. In fact, it is aiming to continue its expansion in Europe and also offer increased services across Asia, too.

This means that Ramsay's long-term growth prospects are relatively bright and, looking a little nearer term, the company is expected to increase its bottom line at an annualised rate of 18.2% over the next two years, which is roughly three times the prospective growth rate of the wider market.

Despite this, Ramsay still offers growth at a reasonable price, with its price to earnings growth (PEG) ratio of 1.76 providing evidence of this, since it is well below the ASX's 1.99 and highlights its appeal at the present time.

Crown Resorts Ltd

The last five years have been highly profitable for investors in Crown Resorts Ltd (ASX: CWN), with the gaming and entertainment company delivering total shareholder returns of 13% during the period.

Of course, further gains could lie ahead, with Crown Resorts having multiple development projects in the pipeline that could stimulate its bottom line. For example, it is focused on adding to its already successful presence in Melbourne via a joint venture with Schiavello Group to build another hotel, while there are also plans to expand into Las Vegas, Macau and even Japan in future, too.

Noting that Crown Resorts now trades on a price to book (P/B) ratio of just 2.2 (versus 2.5 for the wider consumer services sector), it could be worth buying at the present time.

Scentre Group Ltd

One of the main appeals of Scentre Group Ltd (ASX: SCG) is that it offers a superb yield at a time when interest rates are likely to stay low for quite some time. For example, Scentre currently yields 5.4% and is forecast to increase dividends per share at a rate that is higher than inflation over the next couple of years.

However, Scentre also offers good value at its current price level, relative to its sector. For example it has a PEG ratio of 2.5, which could equate to share price growth due to it being considerably lower than the real estate sector's 3.3. As a result of this and its excellent yield, Scentre could be a sound buy right now.

Motley Fool contributor Peter Stephens does not own shares in any of the companies mentioned.

More on ⏸️ Investing

A white and black robot in the form of a human being stands in front of a green graphic holding a laptop and discussing robotics and automation ASX shares
Technology Shares

Joining the revolution: How I'd invest in ASX AI shares right now

Advances in artificial intelligence (AI) could usher in a new industrial revolution. Here’s how you can invest in it.

Read more »

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »