While plenty of stocks in the market look fully priced or indeed overpriced at present, there are still investment opportunities to be found.
Limiting my search to the 100 leading Industrial companies and only those that are currently paying fully franked dividends has turned up four opportunities…
Australia and New Zealand Banking Group (ASX: ANZ) remains the cheapest of the banks on a relative basis, with a forward price-to-earnings (PE) ratio of 11x. With its growth pivoted towards Asia, the stock looks to fit into the investment category of GARP (growth at a reasonable price).
The share price of Flight Centre Travel Group Ltd (ASX: FLT) has lost some altitude over the past few months. The lower share price could offer value to long-term investors with the stock now trading on an attractive forward PE of around 14.5x which isn't demanding considering the growth outlook for the group.
While the share prices of many of Telstra Corporation Ltd's (ASX: TLS) smaller peers have shot higher thanks to a flurry of merger and acquisition activity, the share price performance of Telstra has been lacklustre with a flat return over the last 12 months. At $5.51 and with earnings per share forecast to grow, the forward PE ratio of 15.7x looks attractive on a relative basis.
Perpetual Limited (ASX: PPT) is one of Australia's leading fund managers with a business well positioned to benefit and grow thanks to our ever expanding superannuation system. With the stock trading on a forecast PE ratio of 17x and the share price well off its 52-week high, now could be an opportunity for long-term investors to acquire this quality business at a reasonable price.
