Xero Limited (ASX:XRO) and this ASX 50 share have been named as buys. Here’s why they could be among the best shares to buy now…
The post 2 quality ASX 50 shares to buy now appeared first on The Motley Fool Australia. –
The S&P/ASX 50 index is home to 50 of the largest listed companies on the Australian share market.
This means the index hosts many of the highest quality and most well-known companies that the ANZ region has to offer.
While not all of the shares on the index are necessarily in the buy zone, two that could be are listed below. Here’s what you need to know about them:
Lendlease Group (ASX: LLC)
Lendlease is a global property and infrastructure company. Although its performance in recent years has been underwhelming, its outlook is becoming increasingly positive.
This is due to the divestment of its struggling engineering business and the announcement of a major new strategy. The latter is shifting its earnings mix and business model favourably. This appears to have positioned it perfectly for long term growth and should be supported by some major urbanisation projects. These include Thamesmead Waterfront in London and a partnership with Google in the San Francisco Bay Area.
Goldman Sachs is a fan of the strategy shift. It currently has a buy rating and $16.54 price target on the company’s shares. The broker believes that its shares could re-rate to higher multiples once it starts to successfully execute its new strategy.
Xero Limited (ASX: XRO)
Another ASX 50 share to consider buying is Xero. It is a leading cloud-based business and accounting software provider with a focus on small to medium sized businesses.
Thanks to the evolution of its platform over the last few years from an accounting solution into a full service small business solution, Xero has been growing at a rapid rate. This has continued in FY 2021 despite the pandemic’s impact on small businesses.
Goldman Sachs is also a fan of Xero and believes it still has a long runway for growth. This is due to the quality of its offering, the ongoing shift to cloud-based solutions, its global market opportunity, and burgeoning app ecosystem. The latter has been bolstered recently with a number of bolt on acquisitions. This includes Planday, Tickstar, and Waddle.
Goldman Sachs has a buy rating and $153.00 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
- 2 of the best ASX 200 blue chip shares to buy
- Leading brokers name 3 ASX shares to buy today
- ASX 200 down 0.3%: Webjet completes note offering, Xero pushes higher
- Why the Xero (ASX:XRO) share price can go even higher from here
- ASX 200 Weekly Wrap: ASX sees 7,000 points once more
James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.