Insights

3 attractive ASX shares currently in a dip

Australian stocks are in ‘a sweet spot’, says Aberdeen Standard. Which companies has it bought to take advantage?
The post 3 attractive ASX shares currently in a dip appeared first on The Motley Fool Australia. –

3 asx shares to buy depicted by man holding up hand with 3 fingers up

An ASX share fund has revealed 3 stocks that it holds and loves, which are currently in a price dip.

Aberdeen Standard told clients in a monthly update that Australian stocks are now “in something of a sweet spot”.

“The central bank remains committed to a dovish stance, with interest rates expected to remain low until 2024 at least. Meanwhile, commodity prices could rise further as the global growth outlook improves amid the wider rollout of Covid-19 vaccines,” the memo read.

“In addition, rosier macro conditions and more upbeat company updates strengthen hopes of a rebound in corporate earnings.”

In light of this, it picked out 3 shares in its portfolio that have an optimistic future:

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

The New Zealand healthcare player has had a rough few weeks. From $32.94 on 27 January, its shares tumbled to as low as $25.46 this month. They’re currently trading at $29.90 early Friday afternoon, so is still in a dip.

Aberdeen noted Fisher & Paykel stocks descended because demand for its respiratory hardware was boosted by COVID-19 last year.

“With the global vaccine rollout underway, we expect hospitalisation rates to moderate and resultant hardware sales to reverse from current elevated levels.”

But the investment house deemed this to be a temporary dip in earnings.

“We continue to view Fisher and Paykel Healthcare as an attractive holding exposed to longer-term structural growth drivers,” the memo read.

“We remain upbeat on the longer-term opportunity to increase higher-margin consumables sales. This will be driven by both a larger number of devices now in circulation, as well as changes.”

Mercury NZ Ltd (ASX: MCY)

Another Kiwi business listed on the ASX, the electricity company’s stocks are currently in a price dip, having lost almost 19% since 8 January.

But Aberdeen’s Ex-20 Australian Fund went as far as selling down its Afterpay Ltd (ASX: APT) shares to get a piece of the action.

“We re-invested these proceeds into Mercury New Zealand, a 100% renewable electricity generator, with the recent share-price pullback offering an attractive entry point.”

The 100% green energy business model, according to Aberdeen, is what makes the company compelling.

Wesfarmers Ltd (ASX: WES)

Shares for the conglomerate have come down to $52.48 since they hit a 52-week high of $56.40 back in early February.

And that’s caught the eye of Aberdeen’s Australian Equities Fund. 

It all has to do with Australia’s escalating real estate prices.

“Our investment in Wesfarmers reflects our view that the domestic housing recovery will continue to underpin robust earnings at household hardware chain Bunnings over the medium term,” Aberdeen told clients.

“Furthermore, we think it will benefit from its recent investment in lithium processing.”

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.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Tony Yoo owns shares of AFTERPAY T FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post 3 attractive ASX shares currently in a dip appeared first on The Motley Fool Australia.

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!