CSL Limited (ASX:CSL) and this ASX share could be five-star stocks. Here’s why analysts like them right now…
The post 2 five-star ASX shares that analysts love appeared first on The Motley Fool Australia. –
If you’re looking for some quality additions to your portfolio this month, then the two ASX shares listed below could be worth considering.
They have been tipped as shares that could generate strong returns for investors in the future. Here’s why they are rated very highly:
The first five-star stock to look at is CSL. This biotherapeutics giant could be one of the highest quality companies that Australia has ever produced.
CSL has been operating for over a century. It was founded in 1916 with the aim of servicing the needs of a nation isolated by war. Fast-forward to today and the company is a global giant with a portfolio of therapies and vaccines saving countless lives across the world.
One of the keys to its success has been the company’s high level of investment in research and development. Every year CSL invests approximately 10% to 12% of its sales revenue back into its these activities. This ensures that CSL is at the forefront of innovation in the industry and has a pipeline of potentially lucrative products.
The company has been struggling with plasma collections because of the pandemic. And while this could weigh on its performance in FY 2022, due to a lag between collection and production, it is only expected to be short-lived. In fact, collections are already rebounding strongly and have been tipped to reach pre-COVID levels later this year.
In light of this, with the CSL share price still trading notably lower than its high, now could be an opportune time to make a long term investment.
One broker that thinks this is the case is Credit Suisse. It recently upgraded CSL’s shares to an outperform rating with a $315.00 price target.
Another potential five-star stock could be Goodman Group. It is one of the world’s leading integrated commercial and industrial property companies. It owns, develops, and manages industrial real estate globally. This includes warehouses, large scale logistics facilities, and business and office parks.
At the last count, Goodman had $52.9 billion of total assets under management globally, 366 properties under management, and 1,600+ customers. In respect to the latter, Goodman counts the likes of Amazon, DHL, Showpo, and Walmart as customers.
The company focuses on investing in and developing high quality industrial properties in strategic locations, close to large urban populations and in and around major gateway cities globally, where demand is strong and transformational changes are driving significant opportunities. This includes gateway cities such as LA, Paris, Sydney, Shanghai, and Tokyo. This strategy has worked incredibly well and led to Goodman delivering consistently strong growth in earnings and distributions.
One broker that is confident this positive form will continue is Citi. The broker currently has a buy rating and $22.10 price target on its shares.
Where to 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 are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021