Wesfarmers Ltd
Results released this week from Wesfarmers Ltd (ASX: WES) were positive and highlighted the benefit of a conglomerate structure, with weakness in one area being offset by strength in another. So, overall Wesfarmers was able to post a gain in net profit of 8.3% for the half-year, with its retail brands Coles, Officeworks and Bunnings being the standout performers.
In addition, the results confirmed that Wesfarmers is on the lookout for acquisitions and this could help it to further boost its top and bottom lines over the medium to long term.
Despite having such a positive outlook, though, shares in Wesfarmers continue to offer good value for money. For example, they trade on a price to sales (P/S) ratio of just 0.86 which, when you consider that the ASX and wider food and staples retailing sector trade on P/E ratios of 1.61 and 0.99 respectively, indicates that Wesfarmers could be undervalued at the present time.
Suncorp Group Ltd
With the RBA recently cutting interest rates and there being a possibility of further reductions during the course of the year, stocks such as Suncorp Group Ltd (ASX: SUN) could become more in-demand among investors.
That's because Suncorp offers a great yield of 6% (fully franked) and also has a stunning track record when it comes to increasing shareholder payouts. This is best evidenced by looking at dividend per share increases over the last five years, which are up 11.8% on an annualised basis.
And, with Suncorp set to increase dividends per share by a whopping 13.7% per annum over the next two years, interest from income-seeking investors could soar and mean that its shares outperform the wider market by a considerable margin.
Oil Search Limited
Being an investor in Oil Search Limited (ASX: OSH) over the last 10 years has been a worthwhile experience, with it delivering a total shareholder return of 16% per annum during the period. And, even though the price of oil may stay low over the short to medium term, there could be more share price gains to come for Oil Search.
That's because Oil Search continues to offer excellent value for money when its earnings growth forecasts are taken into account. For example, it trades on a price to earnings growth (PEG) ratio of just 0.35 which, when you consider that the wider energy sector has a PEG ratio of 3.98, indicates great relative value. Therefore, Oil Search could see its share price move upwards over the medium term.
