Led down by some of the market's most widely-held stocks, few investors have managed to avoid the carnage on the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) over the last three days, in which time the benchmark index has sunk more than 3%.
As painful as these days can be for your wealth – and confidence – these periods can also represent great opportunities to buy high-quality shares trading at discounted prices, thus increasing our prospects of achieving market-beating returns in the long run.
With that in mind, here are three companies that are looking particularly intriguing today…
Greencross Limited (ASX: GXL)
Greencross is Australia's leading provider of pet retail and veterinary services with an estimated 8% of the local market. The company is expanding under a 'roll-up' strategy, whereby it is acquiring smaller businesses under strict acquisition criteria, thus gaining a dominant position within an otherwise fragmented sector.
While the company has already generated enormous growth in recent years, analysts are predicting that growth will continue for the foreseeable future with a target of 20% market dominance. In my eyes, that seems achievable, and its recent pullback of more than 38% makes it a perfect buy today. The stock is trading at $6.65, down from $10.78 in August.
Nearmap Ltd (ASX: NEA)
Although it is by no means a risk-free investment, Nearmap offers plenty of promise as a small-cap technology stock. The company provides ultra-high definition aerial photographs of towns and structures, which are proving incredibly useful across numerous industries. While it has already recorded strong growth locally, it is also well advanced in its expansion into the United States which could provide an avenue for strong growth in the future.
After having traded as high as 83.5 cents in November, the stock has pulled back considerably, offering investors another great opportunity to start building a position. Right now, the stock is priced at 56.5 cents, down more than 33% from its all-time high.
XERO FPO NZ (ASX: XRO)
Xero is a New Zealand-based cloud accounting software provider, snapping up market share in New Zealand, Australia, the US and the UK. Although it is not yet profitable it is investing heavily in marketing and development and is showing all the signs of becoming a much larger corporation in the coming years.
Xero's shares have been hit hard over the last few days however, largely in response to its full-year earnings results. The company said that its net loss had almost doubled compared to the previous year, which has spooked some investors. Perhaps some investors are even considering switching their money over to MYOB Limited (ASX: MYO), one of Xero's rivals, when it floats its shares next week.
Although Xero's shares are not cheap per se, they are trading at a reasonable price considering the company's potential growth prospects. Right now, the stock is trading at $19.02, which compares to its all-time high of nearly $43 recorded just over 12 months ago.
