I’m looking for once-in-a-decade opportunities in the stock market recovery

The stock market seems to be reeling from the uncertainty in the banking sector. But I look for deals while there are still stocks on sale at a discount.

It is almost impossible to tell what the stock price will do on any given day. But there are three stocks I’m buying right now because I doubt they’ll get better opportunities in another 10 years.

Aviva

Top of my list Aviva (LSE: AV.B). But it’s the company’s preferred equity that interests me today, rather than the common stock.

I think this is a predictable investment. Unless something goes terribly wrong with the business, the stock will generate 8.375p in dividends per share annually.

At a price of £1.18, that’s a return of 7%. I’m looking to lock in right now, because I think it offers a decent return with less risk than most stock market investments.

If interest rates rise faster than the market expects, then there is a risk that stock prices will fall. But I’m not sure that will happen.

As a result, I am looking to take back the offer today, instead of guessing in the future. If interest rates rise slowly, I may not be able to get this better one.

diploma

I also like the thought of FTSE 250 stock diploma (LSE: DPLM). This company is growing fast and I’m not sure we’ll see it at a lower price than it is in the next decade.

The stock does not look cheap at the current price. The share trades at a price-to-earnings ratio (P/E) of 35, meaning decent returns depend on significant growth in the future.

I think this is likely to happen, though. Diploma aims to increase revenue and profitability by organic growth and through acquisitions.

In fact, the company closed the acquisition earlier this month. And with 700 more offers under consideration, I think the future looks bright here.

That’s why I’m not afraid of a high P/E ratio. I think there is a long way to go before the growth subsides I expect the shares will be worth more by then.

Bank of America

Finally, I have bought US listed shares Bank of America (NYSE: BAC). Warren Buffett seems to like the stock and I think it’s trading at a good price right now.

Simply put, I think the bank is in decent shape. But the stock market is as expensive as any troubled business, making me look like a bargain.

I don’t expect another banking crisis in the next 10 years (although I’m not ruling it out). So I don’t count on seeing the stock at that price anymore.

The biggest risk to Bank of America stock right now, in my view, is the possibility of tighter regulation. That can hinder the company’s profits going forward.

I’m not sure this is likely, though. Although stricter regulations are coming, I think it will have a bigger impact on smaller players, than Bank of America – and if I’m right, this is a rare buying opportunity.