The strength of the S&P/ASX 200 (Index: ^AXJO) (ASX:XJO) over recent months has made it quite difficult to find compelling buying opportunities.
Unsurprisingly, many of the best quality shares continue to trade on very high valuations.
Nonetheless, I still think there are a number of good opportunities from the top 200 companies that long term investors could consider right now, including:
Vocus Group Ltd (ASX: VOC)
The Vocus share price has been under a tremendous amount of pressure recently and investor sentiment has not been helped by the news that another senior manager has left the company. Despite this, I think much of the bad news has now been priced into the shares which are currently trading on just 12x forward earnings. It won't take much good news for the shares to rebound from here and I remain bullish on the long term outlook for the telco sector in general.
TPG Telecom Ltd (ASX: TPM)
Like Vocus, the TPG share price has also been under pressure and continues to linger near multi-year lows. However, I believe the shares currently offer a reasonable amount of upside potential considering the company is actively taking steps to invest in a number of new products and geographical regions. TPG has one of the most competent management teams in the country and I think the current valuation of 15x earnings offers a compelling risk-reward proposition.
ResMed Inc. (CHESS) (ASX: RMD)
The ResMed share price has taken a dive over the past couple of weeks, despite no change to the company's underlying fundamentals. As a result, now could be a good chance for investors who have been waiting for a discounted price to pick up some shares. The sleep apnoea company has a very long runway of growth ahead of it and I think a valuation of 25x earnings is a reasonable price to pay for one of the ASX's best healthcare shares.
