The recent market volatility has thrown up some great bargains. Companies likeAviva (LSE: AV),Prudential (LSE: PRU),Hargreaves Lansdown (LSE: HL) andStandard Life (LSE: SL)are all cheaper now than they have been for a long time and are unlikely to be affected by Chinas economictroubles.
Long-termoutlook
As two of the UKs largest pension and long-term savings providers,Avivaand Standard Life are insulated from emerging market turbulence slowing Chinese economic growth isnt going to affect the demand for pensions here in the UK.
Legal & Generalbelieves thatover the next 15 years the value of savings inUKdefined-contribution pension schemes will nearly quadruple to approximately 3.3tn. Standard Life and Aviva are well placed to capture an enormous share of this additional business. Standard Life is theleading provider of workplace pensions in the UK.
After recent declines, Aviva trades at an attractive forward P/E of 10.1 and the companys shares support a dividend yield of 4.4%. In contrast, Standard Life trades at an expensive looking forward P/E of 17.9. However, City figures suggest that the companys earnings will grow 54% this year. Based on these forecasts for growth, Standard Lifes shares currently trade at a PEG ratio of 0.3.
Asian exposure
Prudentialhas outperformed almost all of its peers over the past five years. From June 2010 to date, the companys shares have produced a total return of 23% per annum.Over the same period, earnings per share have roughly doubled, and the company has hiked its dividend payout by 70%.
Prudentials well-timed expansion into the Asian life insurance market has helped the group grow faster than its peers in the past,and despite regional economic worries, Asia should continue to be a growth driver for Prudential going forward. Indeed, demand for life insurance is set to grow by around 10% per annum within Asia during the next four years.
City analysts currently expect Prudentials earnings per share to grow14% this year and a further 11% for 2016.Whats more, according to forecasts, Prudential is expected to hike its dividend payout by 10% per annum for the next two years. The companys shares currently support a dividend yield of 2.8% and trade at a forward P/E of 12.8.
UK demand
Hargreaves Lansdown is one of the UKs mostrecognisableasset administrators, andlooks after more than 55bn ofpeoples investments and pensions.
The companys shares are a play on the wider markets performance over the next few years. City analysts believe that if the markets head higher during 2016 and 2017, assets under administration could expand by 20% per annum. But a negative market performance could cost the company 10% per annum in client assets.
WithHargreaves Lansdowns future dependent on the direction of the market, the companys current valuation might be too pricey for some. At present, Hargreaves Lansdown trades at a forward P/E of 32.7 and itsshares support a dividend yield of 2.9%.
Five more top picks
Along with Aviva, Prudential, HargreavesLansdownand Standard Lifethere arefive other companiesthat we believe should have a place in every investorsportfolio.
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Rupert Hargreaves has no position in any shares mentioned. The Motley Fool UK has recommended Hargreaves Lansdown. We Fools don’t all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors.