Insights

3 high conviction ASX 200 shares that could be buys this August

These ASX 200 shares have been labelled as ‘buys’ today
The post 3 high conviction ASX 200 shares that could be buys this August appeared first on The Motley Fool Australia. –

Now that we are a fair way into August, and the S&P/ASX 200 Index (ASX: XJO) is at fresh new all-time highs, it might be a good time to have a think about which ASX 200 shares you might want to invest in going forward.

A market at all-time highs is definitely worth celebrating. But we all know that it can be a dangerous time to invest as well. Most share market crashes usually come pretty close on the heels of record-breaking bull markets, after all. As such, any new shares an investor wants to add to their portfolios this August may benefit from a high-conviction investment thesis.

So here are 3 ASX shares that offer such a thesis today:

3 high conviction ASX 200 shares that could be August buys

Telstra Corporation Ltd (ASX: TLS)

Although Telstra did hit a new 52-week high of $3.83 yesterday, the Telstra share price is still relatively low by historical standards. Remember, this ASX 200 telco is a company that once had an ‘8’ at the front of its share price. Still, Telstra shares have been a great investment in more recent history. The company is now up almost 27% in 2021 so far on yesterday’s closing share price.

There is one investor who thinks Telstra can climb further though. Investment bank and broker Goldman Sachs currently rates Telstra as a ‘buy’, with a 12-month share price target of $4.20 a share. That implies a potential upside of almost 10% on yesterday’s closing price. Goldman thinks Telstra will continue to benefit from the completion of the nbn rollout, as well as demand for its generous dividend payments.

Newcrest Mining Ltd (ASX: NCM)

Newcrest is another ASX 200 share that may be a worthy high-conviction ASX share idea for investors today. That might be a hard pill to swallow today, considering Newcrest shares took quite a nasty tumble yesterday, shedding 2.7% to close at $25.39 a share. Falling gold prices seem to be behind this most recent dip.

However, Newcrest is another one of Goldman Sachs’ high conviction ASX shares. Goldman currently rates Newcrest as a ‘buy’ as well, with a 12-month share price target of $35 a share. That’s a potential upside of close to 38% on yesterday’s closing share price. In this case, Goldman is bullish on Newcrest due to its perceived cheap valuation compared to other ASX gold miners, as well as the company’s growth pipeline.

Coles Group Ltd (ASX: COL)

ASX 200 supermarket giant Coles is the final ASX share to consider today. Coles shares have had a lacklustre 2021 so far – the company is currently down 2.76% year to date. At yesterday’s closing share price of $17.99, it’s also a fair ways away from its all-time high of $19.26 a share.

Saying that, Coles is another company that Goldman Sachs is currently bullish on with conviction. Goldman rates Coels shares as a ‘buy’ with a 12-month share price target of $19.40, implying a potential upside of 7.8% over the next year.

For Coles, Golman is looking at the company’s upcoming earnings report, and is expecting Coles to shine in its Liquor and Coles Express divisions in particular. It also expects the company’s share price earnings multiple to continue to narrow against its rival Woolworths Group Ltd (ASX: WOW) going forward.

The post 3 high conviction ASX 200 shares that could be buys this August 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

2 ASX dividend shares with 4%+ yields

ASX 200 flat, Suncorp surges, NAB makes Citi acquisition

TPG, Telstra share prices wobble on ACCC allegations and court action

These 10 ASX 200 shares hit new 52-week highs this Monday

Here are 3 ASX 200 shares being heavily traded on Monday

Motley Fool contributor Sebastian Bowen owns shares of Newcrest Mining Limited and Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COLESGROUP DEF SET and Telstra Corporation Limited. 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!