Volatility is good. That's right – it's good.
Why?
During times of volatility some of the best opportunities for value investors are created and it is at these moments when investors can pick up high-quality stocks that have been discounted for no reason other than fear and uncertainty.
With that in mind, here are four high-growth stocks that are either ready to buy or getting close to it:
1. CSL Limited (ASX: CSL) – After hitting more than $100 a share back in early August, the shares of CSL are now changing hands at around $90. The company remains one of the market's top performing stocks over a long period of time and the company still has a huge amount of growth potential over the coming years. Although profit growth is only expected to increase by about 5% in FY16, it is beyond this when growth is expected to increase dramatically as a number of new products are launched. At a price-to-earnings ratio of around 22, I think CSL looks like an attractive long-term buy.
2. GBST Holdings Limited (ASX: GBT) – GBST provides software platforms for operators in the financial services industry over a number of continents. The company has a strong track record of growing earnings and in FY15, EPS increased by a stunning 52%. This wasn't enough for the markets however, and over the following weeks, the share price fell by around 20%. GBST is actively pursuing new business opportunities and has a strong pipeline of new products that will complement its existing offering. Following the pull-back in the share price, the stock now offers good value to long-term investors with the company trading on a P/E ratio of less than 20.
3. Mantra Group Ltd (ASX:MTR) – Although the share price of Mantra hasn't retreated as much as some others over the past few months, the company remains on my watchlist of stocks with above-average growth potential. The company's market capitalisation is nearing $1 billion and has recently been included in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO). Mantra's FY15 result was solid and ahead of its prospectus forecasts. 11 new properties were added to its portfolio and EBIT increased by 22% on the back of revenue growth of nearly 10%. The company is expecting NPAT growth of up to 16% in FY16 with a number of new properties expected to contribute to this result. The shares are slightly over-valued in my opinion, but if the share price moved closer to the $3 mark, I would be a happy buyer.
4. Ozforex Group Ltd (ASX: OFX) – It has been a roller-coaster ride for shareholders of Ozforex over the past year with the shares having traded as high as $2.98 to as low as $2.00. That is certainly a large range and enough to scare any long term investor away. With that in mind, however, Ozforex has made some interesting announcements over the past month or so. At its AGM in August, the company provided a market update that showed the company had a strong first quarter performance for FY16 with 22% growth in transactions and a record month in July for gross revenue. Ozforex also announced a three-year strategy that it believes will double its revenue. Although its too early to tell if the company will be successful in this regard, it has certainly started on the right track. In addition to this, Ozforex recently announced a partnership with cloud accounting company Xero Limited (ASX: XRO). With over 500,000 Xero clients, this deal brings immediate benefits to Ozforex including increased brand awareness and additional transaction volumes at low cost. The shares are not cheap, however, trading at around 24x earnings but the growth potential is there – it's just a question of Ozforex executing its strategy.
