While finding high quality companies with excellent growth potential is not a particularly difficult task, buying them at an appealing price can be. And, with the ASX rising by 9% since the turn of the year, many investors may be feeling that the task of doing so has become even tougher.
Clearly, the outlook for the Aussie economy is somewhat uncertain, but with the market now seemingly pricing in further cuts from the RBA, investor sentiment has been rather buoyant and this has pushed the valuations of a number of blue-chips to relatively high levels.
However, here are three companies that still offer growth at a super-low price, and which could provide your portfolio with a boost in 2015 and beyond.
Macquarie Group Ltd
Investment bank, Macquarie Group Ltd (ASX: MQG), is set to benefit from an improving US economy over the medium term. That's because a significant proportion of its earnings are denominated in US dollars and, with the world's largest economy posting impressive economic numbers, an interest rate rise before the year is out seems to be very likely. As such, Macquarie's bottom line should benefit from a US dollar strengthening.
Furthermore, Macquarie is forecast to increase its bottom line at an annualised rate of 16.6% during the next two years, with it recently upgrading its forecasts. And, when its price to earnings (P/E) ratio of 18.1 is combined with its growth outlook, it equates to a price to earnings growth (PEG) ratio of just 1.09.
Ramsay Health Care Limited
As all investors know, it is impossible for any company to grow earnings in perpetuity, with there being inevitable challenges and difficulties that present themselves. However, private hospital provider, Ramsay Health Care Limited (ASX: RHC), is set to deliver stunning growth over the next couple of years, with its bottom line forecast to grow at an annualised rate of almost 20% during the next two years.
This, of course, is very much in-line with Ramsay's past growth rate, with its bottom line having risen by 20.9% per annum during the last ten years. And, even though its share price has soared by 46% in the last year, its PEG ratio of 1.7 indicates that it has further to go.
Suncorp Group Ltd
Although the change in CEO at diversified financial company, Suncorp Group Ltd (ASX: SUN), may cause some uncertainty, investors should be upbeat about the company's prospects. That's because CEO designate, Michael Cameron, has said that he will continue with the company's current growth strategy that has seen it grow its bottom line by 12.9% per annum during the last five years.
And, looking ahead, Suncorp's share price could continue the run that has seen it outperform the ASX by 35% in the last five years, with it trading on a PEG ratio of just 0.45. That's significantly lower than the ASX's PEG ratio of 2.38 and, with Suncorp yet to fully complete its planned cost savings, further upside could lie ahead.
