2 ASX shares that could be top buy and hold options

Could these ASX shares generate strong returns over the long term?
The post 2 ASX shares that could be top buy and hold options appeared first on The Motley Fool Australia. –

Arguably one of the best ways to generate wealth is to make long term investments. This is because by investing for long periods, it allows you to benefit from compounding.

But which shares would make good buy and hold investment options? Two to consider are listed below. Here’s why they are rated highly:

CSL Limited (ASX: CSL)

CSL is one of the world’s leading biotherapeutics companies and the name behind the CSL Behring and Seqirus businesses. CSL Behring is the global leader in plasma therapies, whereas Seqirus is the second largest influenza vaccines business.

Both businesses have been growing strongly in recent years and have been tipped to continue doing so in the future. This is due to their leading therapies and vaccines, increasing demand, and lucrative research and development pipelines.

In respect to the latter, CSL invests in the region of 11% of its sales into its research and development activities each year. This ensures that it has a pipeline of cutting-edge therapies with significant sales potential. One of those is clazakizumab, which is being developed to treat kidney transplant rejection. This product alone could generate peak sales of US$5.4 billion.

UBS currently has a buy rating and $330.00 price target on CSL’s shares.

Xero Limited (ASX: XRO)

Xero is leading cloud-based business and accounting solution provider to small and medium sized businesses. It offers businesses and their advisors a solution that provides deep cloud accounting functionality together with an ecosystem of over 800 third-party app partners to provide valuable access for small businesses to add point solutions where needed.

This offering is resonating extremely well with businesses across the world, underpinning very strong recurring revenue growth in recent years.

Pleasingly, the company still has a significant market opportunity to grow into. Management estimates that its total addressable market is worth NZ$45 billion at present and growing. This compares to FY 2021’s operating revenue of NZ$848.8 million.

Goldman Sachs believes the company is well-positioned for growth, particularly given its international expansion opportunity and its burgeoning app ecosystem. Combined, the broker believes Xero has a multi-decade runway for strong revenue growth.

Goldman Sachs currently has a buy rating and $153.00 price target on its shares.

The post 2 ASX shares that could be top buy and hold options appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of May 24th 2021

More reading

First time in 30 years! 6 ASX shares for crazy times: analyst

Here’s an ASX growth share priced like a value stock: analyst

2 top ASX 200 shares that might be buys today

ASX 200 Weekly Wrap: ASX edges even higher, led by tech rebound

2 highly rated ASX tech shares rated as buys

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. and Xero. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;

To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.

An active and funded account with a positive trading balance is required to continue to have access to the tools;

Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;

Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!