No share price consistently goes up year after year, even if the earnings per share does grow each year.
This year there seems to be a trend that some stocks have been heavily hit if the result was below expectations.
Several shares are reaching multi-year lows after many months of decline.
These low prices offer good potential value and perhaps market-beating opportunities.
If I were to pick eight shares to be market-beating turnarounds, these are the eight I'd invest in:
Domino's Pizza Enterprises Ltd (ASX: DMP) has seen its share price fall to the low $40s. Management are still predicting strong long-term growth, so the current price could be good value now.
Freelancer Ltd's (ASX: FLN) share price keeps going down and the poor annual result sent the price further down. The business operates in a very promising industry and is one of the largest freelancer portals in the world. If it can generate meaningful profit then it could be a strong winner.
Greencross Limited (ASX: GXL) is growing a lot slower now that it isn't making any other acquisitions. However, its organic growth plans are very promising, but will take a long time to come to fruition.
Healthscope Ltd (ASX: HSO) is the second biggest private hospital operator in Australia. The long-term demographics are clearly on its side but profit growth is apparently difficult in the short-term. I expect the share price will have strongly recovered by FY20 because lots of its projects will have been completed.
Ramsay Health Care Limited (ASX: RHC) also has the ageing demographics on its side as one of the biggest private hospital operators in the world. Its problem is that growth in the UK and France is expected to significantly slow in the near future. However, the long-term trend of increasing healthcare expenditure is on Ramsay's side.
Select Harvests Limited (ASX: SHV) is one of the largest almond growers in Australia. Its share price has been smashed due to lower almond prices and a smaller crop yield. Both factors could easily turn around this financial year.
Telstra Corporation Ltd (ASX: TLS) still has a generous fully franked dividend yield and the demand for data from devices is only going to get bigger. Any positive NBN news could send the share price higher quickly.
TPG Telecom Ltd (ASX: TPM) also has NBN troubles but management are plotting for future growth by creating mobile networks in Australia and Singapore.
Foolish takeaway
There's a decent chance that all of the above stocks could beat the market from the current price, particularly if the banks have a bad year.
If I had to choose three of the above shares I'd pick Ramsay, Greencross and Healthscope in that order because they all have clear long-term growth potential.
