Super Retail Group Ltd
Recent results from Super Retail Group Ltd (ASX: SUL) were somewhat disappointing, with the company seeing its bottom line fall by 45.5% to $33.6m in the first half of the year. However, a strategic review means that changes are afoot, with Super Retail deciding to reposition its Ray's Outdoors brand by adding more adventurous products, while closing its loss-making FCO Fishing Camping and Outdoor chain in New Zealand.
This seems to be a sensible move for the business and it looks set to deliver much-improved profitability. For example, Super Retail's earnings are forecast to rise by 7.8% per annum over the next two years which, alongside a price to sales (P/S) ratio of just 0.94, means that it appears to be worth buying at the present time.
BHP Billiton Limited
Although recent results from BHP Billiton Limited (ASX: BHP) beat expectations, they show that the diversified mining major is still struggling to cope with commodity prices being at a low ebb. For example, BHP Billiton reported a net profit that was 48% lower on the comparable period last year and, as a result, will cut growth spending moving forward as it focuses its cost base.
And, in this regard, it appears to making encouraging progress. For example, BHP has now made almost $13bn of productivity gains in the last three years alone. As such, its bottom line is forecast to rise by an impressive 12% next year, which shows that it could still prove to be a strong growth play. Furthermore, with its shares having a fully franked yield of 4.4%, it offers excellent income prospects too, and appears to be worth buying right now.
Crown Resorts Ltd
Holding shares in Crown Resorts Ltd (ASX: CWN) over the last five years has been a very prudent move, since the entertainment company has delivered a total return of 17.9% during the period. Although Crown's bottom line is forecast to rise by just 4.2% per annum over the next two years, it could be worth buying at the present time.
That's because Crown Resorts has an excellent track record of growth, with the company posting annualised increases in its bottom line of 17.6% during the last five years. And, with multiple potential projects in the pipeline, it could return to a similar level of growth over the long run. So, while the next couple of years may not see Crown Resorts' profitability soar, now could be the time to buy for its potential.
