Thanks to the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) gaining ground towards the end of last week, the index has managed to holds its head above water and is still showing a slight gain (1.6%) for 2015.
The increased volatility has sent a number of blue-chip stocks lower and for long-term investors these lower prices should be viewed as an opportunity to selectively acquire shares in quality businesses.
The following three stocks are all leaders in their respective industries and all have recently traded down at fresh 52-week lows that could offer up an attractive entry price for savvy investors who choose to use market volatility to their advantage.
- While increased competition makes the future tougher for Australia's leading retailer Woolworths Limited (ASX: WOW) it is arguable that the muted outlook for the stock is now reflected in the company's share price. The shares are trading just 3% off their 52-week lows and require a gain of 39% to get back to their one-year high. The stock is trading on a historic price-to-earnings (PE) ratio and fully franked dividend yield of 14x and 5.2% respectively.
- Recent negative headlines have sent the share price of wealth management group IOOF Holdings Limited (ASX: IFL) down around 23% from their 52-week high. While there is obviously a cloud hanging over the outlook for the group, once again it is possible that the negatives are already fully reflected in IOOF's share price. Based on historic numbers, the group is trading on a PE of 18.1x and a fully franked dividend yield of 5.9%.
- The tide has certainly turned again last year's blockbuster IPO candidate Medibank Private Ltd (ASX: MPL) with numerous analysts now taking the view that the outlook for Australia's leading private health insurer has diminished. The concerns certainly have merit, however, contrarian investors may see the negativity as a buying opportunity if they feel a prospective financial year 2016 PE ratio of 19.1x and fully franked dividend yield of 3.9% is appealing.
