Newcrest Mining Limited
Having released what were much-improved but still slightly disappointing results recently, Newcrest Mining Limited (ASX: NCM) has seen its share price remain relatively volatile. However, further volatility in the short run should not put investors off its long term potential, since Newcrest continues to offer relatively strong growth prospects.
For example, it is expected to increase its bottom line at an annualised rate of 9.9% during the next two years and, with many of its mining peers seeing their bottom lines fall, this could boost demand for Newcrest's shares and cause an upward rerating over the medium term.
It also has an improved cash flow contributing to a brighter outlook for the company, which could continue the kind of performance that has delivered a total return of 22.8% in the last year alone.
Crown Resorts Ltd
Recent results released by Crown Resorts Ltd (ASX: CWN) were somewhat mixed but still caused the company's share price to move higher. In fact, this was surprising, since even on an adjusted basis Crown Resorts' net profit only increased by 2.1% and trading conditions in a key market, Macau, remain challenging.
Despite this, the company has clear potential. It has a number of new developments in the pipeline that could make a real impact on its bottom line over the medium to long term. And, with the market more focused on the company's future than its recent past, now could be a great time to buy a slice of Crown resorts even though it trades on a rather rich price to earnings growth (PEG) ratio of 4.93.
Ramsay Health Care Limited
For investors who are seeking a mixture of stability and growth prospects, Ramsay Health Care Limited (ASX: RHC) seems to fit the bill. For example, its track record highlights a stability that few companies can match, with its cash flow per share increasing at an annualised rate of 14.8% during the last five years.
And, looking ahead, Ramsay is forecast to increase net profit at an annualised rate of 18.2% during the next two years. This is significantly higher than the expected growth rate of the ASX and makes Ramsay's PEG ratio of 1.9 appear to be rather appealing – especially when you consider that the likelihood of it meeting its guidance is relatively high. As such, now seems to be the right time to add shares in Ramsay to your portfolio.
