Woodside Petroleum Limited
With many Aussie investors now being bullish regarding the medium to long-term prospects for the ASX, it may pay to buy shares in companies that could benefit from a rising market. One company that fits the bill in this respect is Woodside Petroleum Limited (ASX: WPL), since it has a beta of 1.12 and this means that its share price should move by 1.12% for every 1% change in the value of the ASX. So, in a rising market it could beat the wider index.
In addition, Woodside Petroleum also offers good value for money. This is evidenced by its price to book (P/B) ratio of 1.54 which, although higher than the energy sector P/B of 0.65, seems to be well worth it when Woodside Petroleum's financial strength and potential are taken into account. Therefore, while not cheap, it does seem to be good value.
QBE Insurance Group Ltd
This week was a rather successful one for QBE Insurance Group Ltd (ASX: QBE), as the company swung back into profit to the tune of $950m in the 2014 financial year. This is a very positive result when you consider that just a year earlier QBE recorded a loss of $325m, and with QBE's CEO John Neal, declaring that the company has now turned a corner, the future could be a bright one for investors in the company.
Indeed, QBE's strategy seems to be sound and is putting the business on a growth path. For example, it is disposing of non-core assets and focusing on those areas of the business that offer the most favourable risk/reward profile. While there is still a long way to go, QBE now trades on a price to earnings growth (PEG) ratio of just 0.09, which makes it an appealing purchase.
FlexiGroup Limited
Shares in FlexiGroup Limited (ASX: FXL) have made a strong start to 2015, with the finance and payment solutions company seeing its valuation rise by 17% year-to-date. This easily beats the ASX's gain of 9% and there could be more outperformance to come.
That's because, despite its recent rise, FlexiGroup still offers good value for money. For example, it trades on a price to earnings (P/E) ratio of 12, which is considerably lower than the ASX's P/E ratio of 16.3 and is also lower than the wider diversified financial sector P/E ratio of 14.2. As such, FlexiGroup could be subject to an upward rerating over the medium term.
Of course, finding the best stocks for the long term is a tough task – especially when work and other commitments limit the amount of time you can spend trawling through the index for them.
