Westfield Corp Ltd
The owner and operator of the UK and US arms of the Westfield brand, Westfield Corp Ltd (ASX: WFD), released an upbeat set of results this week that showed the company is making encouraging progress. In fact, the results were in-line with expectations and showed that funds from operations in the new company's half-year results were a very impressive $495m and strong growth prospects are on the horizon.
For example, Westfield is forecast to increase its bottom line at an annualised rate of 52.3% over the next two years. This means that, despite having a very high price to earnings (P/E) ratio of 35.3, Westfield's price to earnings growth (PEG) ratio is just 0.67. As such, it seems to offer strong growth at a reasonable price and could deliver exceptional share price performance over the medium term.
CSL Limited
Being an investor in CSL Limited (ASX: CSL) has been highly worthwhile in recent years. That's because its total returns have been superb with the pharmaceutical company posting an annualised return of 24% over the last five years.
Clearly, the company's shares have been somewhat lacklustre since the turn of the year, with them being up just 4% versus 10% for the ASX. However, this could all be about to change, since CSL continues to offer excellent value for money on a relative basis that could see investor demand for its shares pick up.
For example, CSL has a PEG ratio of 1.29, which when you consider that the ASX has a PEG ratio of 2.3, indicates that CSL offers excellent value for money. As such, it could continue to be a top notch performer over the long term.
Wesfarmers Ltd
Even though Wesfarmers Ltd (ASX: WES) has only been able to increase its bottom line at an annualised rate of 2.8% during the last 10 years, it still offers considerable potential as an investment. That's because it is a relatively consistent performer that, even when the wider economy is struggling to gain momentum, is likely to deliver relatively upbeat results.
And, with Wesfarmers having a beta of just 0.65, it should prove to be a sound defensive stock to hold. That's because its share price should (in theory) move by just 0.65% for every 1% change in the level of the wider ASX.
Furthermore, Wesfarmers currently has a PEG ratio of 2.52 which, when you consider that the wider food and staples retailing market has a PEG ratio of 5.73, indicates that Wesfarmers offers relatively good value for money.
