Now could be the best time to buy in years!
The share prices of Australia's best and brightest companies are getting smashed so I've collated some of the best performing companies this reporting season so that you know which companies to scoop up at a discount.
8 companies you NEED to look at as prices dive
Today I'm going to focus on eight companies I believe investors need to look closely at investing in following fantastic earnings reports in August. The reasons vary but they're all great companies!
First up is one of my top stock picks right now, FlexiGroup Limited (ASX: FXL). The loss of the CEO plus two directors as well as a sneaky profit downgrade has seen the share price fall 21% in the last five trading days. It now trades on a forward price to earnings ratio of just 8 and dividend yield approaching 7%. AND profit is expected to rise (albeit modestly) next year.
NIB Holdings Limited (ASX: NHF) reported a 9% increase in revenue and an 8% increase in net profit after tax, pleasing shareholders that were concerned about increased churn in the industry and the entry of some low-cost providers. NIB also guided to a 4% and 10% earnings upside in 2016.
M2 Group Ltd (ASX: MTU) unveiled a record underlying net profit of $100.2 million, which is a 17% increase over the previous year, while revenue climbed 9% to $1.12 billion. The group also declared a 17 cents a share fully franked dividend to take its full year payout to 32 cents a share, or a 23% increase over the previous year. The shares have taken a hit and the price provides investors with a nice entry point.
OrotonGroup Limited (ASX: ORL) is experiencing the impact that poor investor sentiment can have. A failed partnership with Brooks Brothers plus falling sales is never a good combination. However, the group announced strong sales in June and July and I believe the Oroton brand remains a strong drawcard for luxury consumers. The company's cheap and could offer big upside over the next five years.
REA Group Limited (ASX: REA) shares initially plunged on the release of their full-year results, however the key takeaway is that the group's Realestate.com.au website captured 85% of viewing time among all competitors. An amazing achievement! The group's overseas investments gained a 'pass' mark from the market and the company remains as strong as ever.
Coca-Cola Amatil Ltd (ASX: CCL) posed a massive risk coming into the reporting season, following a couple of years of falling profits. While the recovery is slow, there are good signs with earnings much better than expected and margins improving faster than many forecast. The company remains a higher-risk investment, however the brand remains strong and the Indonesian, coffee, and alcohol arms provide some potential upside for long-term investors.
Carsales.Com Ltd (ASX: CAR) shares have fallen heavily after the company reported an 11.3% rise in net profit. Investors are concerned about the 'International' and 'Data and Research' divisions that reported falling earnings, however a 10% increase in the dividend kept most shareholders relatively happy. I like the investments in overseas websites where carsales.com.au can add operational expertise to boost performance, however the payoff period will be longer than many analysts would prefer to see.
Finally, Domino's Pizza Enterprises Ltd. (ASX: DMP) remains one of the shining lights on the ASX. No matter how expensive it looks, the share price continues rising as the company proves it can continue growing at huge rates. Profit and revenue were up 40% and 19% respectively over the last 12 months and the dividend was increased by 42% following strong growth in both Australia and overseas markets.
Domino's trades on 52 times trailing earnings, which is steep, however the lure of further gains and perhaps more acquisitions is enticing investors to pay more than normal for the company.
