Insights

Macquarie picks the best ASX shares to buy for the August reporting season

With more than half the population in lockdown, this reporting season is getting trickier to navigate.
The post Macquarie picks the best ASX shares to buy for the August reporting season appeared first on The Motley Fool Australia. –

The rolling COVID-19 lockdowns to hit our major cities will leave a mark on next month’s reporting season, but a top broker believes these ASX shares will outperform.

The Australian economy is likely to contract in the September quarter. This is threatening to derail the ASX’s best earnings upgrade cycle in decades.

Against this backdrop with more than half of the country’s population living in lockdown, the analysts at Macquarie Group Ltd (ASX: MQG) highlighted several ASX shares to buy.

ASX earnings growth under a COVID cloud

“Australia’s run of positive EPS [earnings per share] revisions – the best in decades – is into its 11th month,” said Macquarie.

“The key drivers were banks and resources; but both are cyclicals, and the cycle is slowing. Results for 2H21 should beat expectations, but this makes for a tougher comp for FY22.”

Best ASX shares to buy for the reporting season

In this regard, the broker reckons the best ASX shares to buy ahead of the August reporting season are the COVID losers.

This is despite this group taking another beating from the current string of lockdowns to hit New South Wales, Victoria and South Australia.

Talk about a contrarian trade! ASX shares that are suffering under lockdowns are likely to provide dour outlooks. No one knows how long these lockdowns could go on for.

How ASX COVID losers could turn into winners

But Macquarie isn’t fussed. It pointed out that the COVID hit to profits isn’t expected to be as significant as it was in 2020.

“A miss on results could also cause a sell-off in these stocks, but we would buy the dips in re-opening plays, as they offer growth within a slowing cycle,” said the broker.

Macquarie’s best buy ideas for ASX shares favour defensives, growth and capital returns.

Defensive ASX shares to buy now

The defensive ASX shares that it likes includes the Amcor CDI (ASX: AMC) share price and Brambles Limited (ASX: BXB) share price, just to name a few.

Among the growth shares, it rates the Afterpay Ltd (ASX: APT) share price a buy even as expert opinion is dividend on its outlook.

Increasing competition and high valuation have taken the gloss out of the Buy Now, Pay Later (BNPL) posterchild.

Other ASX growth stocks on Macquarie’s buy list include the Charter Hall Group (ASX: CHC) share price, Resmed CDI (ASX: RMD) share price and SEEK Limited (ASX: SEK) share price.

Capital return hopefuls to add to wishlist

The ASX shares that are likely to deliver capital returns that the broker rates a “buy” include three iron ore miners. These are the BHP Group Ltd (ASX: BHP) share price, Fortescue Metals Group Limited (ASX: FMG) share price and Deterra Royalties Ltd (ASX: DRR) share price.

Outside of these ASX miners, Macquarie also added the Ampol Ltd (ASX: ALD) share price as a capital return “buy” idea.

The post Macquarie picks the best ASX shares to buy for the August reporting season 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

ASX 200 midday update: Kogan FY 2021 update, Altium sinks

BHP (ASX:BHP) share price climbing as miner considers selling oil assets
This ASX share doubled market returns but is still cheap: expert

The BHP (ASX:BHP) share price is up 8% in the past month. Here’s why
Forecast crash in Aussie dollar to under US70 cents to boost these ASX 200 shares

Motley Fool contributor Brendon Lau owns shares of BHP Billiton Limited, Deterra Royalties Limited, and Fortescue Metals Group Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Amcor Limited. The Motley Fool Australia has recommended ResMed Inc. and SEEK 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!