Insights

This expert thinks these 2 ASX 200 shares are great buys right now

This fund manager is seeing plenty of opportunities on the ASX right now.
The post This expert thinks these 2 ASX 200 shares are great buys right now appeared first on The Motley Fool Australia. –

Leading fund manager Wilson Asset Management (WAM) has picked a few S&P/ASX 200 Index (ASX: XJO) shares as opportunities.

There has been a lot of volatility on the ASX share market in recent weeks and months amid the focus on inflation and interest rate rises. No one can truly know when conditions will die down. But experts think that the lower valuations represent good prices for many businesses.

WAM manages a selection of listed investment companies (LICs). These include WAM Capital Limited (ASX: WAM), WAM Research Limited (ASX: WAX) and WAM Active Limited (ASX: WAA).

Moreover, a key focus of the WAM LICs is to find “undervalued growth companies” where there is a catalyst that could send the share price higher.

These are two of the ASX 200 shares WAM identifies in its recent update.

ARB Corporation Limited (ASX: ARB)

ARB designs, manufactures, distributes and sells motor vehicle accessories.

In May 2022, the company gave investors a market update citing “numerous” challenges to its business operations. These include an increase in commodity prices, a global shortage of new vehicles, and global logistics and pricing issues. Further to this is a labour and skills shortage and exchange rate volatility.

WAM notes that ARB pointed out it expects an increase in total capital expenditure to $57 million in FY22. That would be up from $33 million in FY21. The company attributes this to costs associated with its factories and upgrades to its retail stores and manufacturing equipment.

The fund manager is “upbeat” that the ASX 200 share will “likely” achieve its projected FY22 revenue of $700 million, supported by its 18% year-on-year increase in sales revenue over the nine months to 31 March 2022.

Wilson Asset Management is positive on the outlook for ARB as it delivers on growth opportunities in Australia and in export markets, development of new products, and fostering of partnerships with major customers.

Worley Ltd (ASX: WOR)

Another business named as an opportunity by WAM is Worley.

Worley provides engineering, procurement and construction expertise to the upstream, midstream, chemicals, power, energy and minerals sectors.

Last month, the ASX 200 share was given three new contracts. It also signed an agreement with Avantium Renewable Polymers to provide engineering, procurement and construction services.

WAM said that the services Worley will provide to these companies aims to support the growth of their assets and their sustainability targets.

With new contracts in the pipeline and FY22 costs expected to be less than half of FY21, the fund manager thinks the revenue and earnings target for the second half of FY22 is “well supported”.

The post This expert thinks these 2 ASX 200 shares are great buys right now appeared first on The Motley Fool Australia.

Should you invest $1,000 in Arb Corporation Limited right now?

Before you consider Arb Corporation Limited, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Arb Corporation Limited wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

See The 5 Stocks
*Returns as of January 13th 2022

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

3 ASX shares to pounce on after tax-loss selling: report
3 ASX 200 shares rocking new 52-week highs on Thursday
2 ASX shares the Aussie lifestyle can’t do without
3 high-quality ASX 300 shares trading at 52-week lows today
3 ASX shares to buy in troubled times: expert panel

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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.

  • This field is for validation purposes and should be left unchanged.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Free Share Allocation Reward Levels

STARTER

Class
$ 2,500 Deposit & Trade
  • REWARD^
  • 1 x Marathon Oil Corporation (NYSE:MRO)

ECONOMY

Basic
$ 5,000 Deposit & Trade
  • REWARD^
  • 1 x Pfizer Inc (NASDAQ:PFE)

ECONOMY

Standard
$ 10,000 Deposit & Trade
  • REWARD^
  • 1 x Amazon.com Inc (NASDAQ:AMZN)

ECONOMY

Plus
$ 25,000 Deposit & Trade
  • REWARD^
  • 2 x Apple Inc (NASDAQ:AAPL)
POPULAR

BUSINESS

Class
$ 50,000 Deposit & Trade
  • REWARD^
  • 4 x Apple Inc (NASDAQ:AAPL)

FIRST

Class
$ 150,000 Deposit & Trade
  • REWARD CHOICES^
  • 12 x Apple Inc (NASDAQ:AAPL)
  • 2 x Tesla (NASDAQ:TSLA)
^Please refer to the Free Share Promotion Terms and Conditions for details.

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, 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.

FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here To Get Started
FREE AAPL, TSLA, AMZN, PFE or MRO Share(s)
REGISTER TO BE ELIGIBLE FOR FREE SHARES
TRAVEL ACROSS THE FINANCIAL WORLD
Act Fast - Promotion Ends In
Click Here For More Info