There’s a rotation underfoot on the ASX share market that will make picking 2021 winners a little more challenging, but the latest broker buys could offer clues on which ASX shares you should buy now.
Some stocks that have rallied right through the pandemic aren’t faring quite as well in the past few weeks.
The rotation from COVID-19 winners to losers is expected to continue even as experts are forecasting more gains for the S&P/ASX 200 Index (Index:^AXJO).
Latest ASX shares upgraded to “buy”
You don’t want to be buying the wrong shares as the market repositions itself for the next leg of the bull market.
But one stock that could put a smile on your face is the Pacific Smiles Group Ltd (ASX: PSQ) share price. Wilsons upgraded the dental practice to “overweight” as it looked at the impact of the group opening 20 new offices a year from 10 to 12 offices.
“Scale benefits in corporate dentistry are less about margin expansion and more about structural advantages,” said the broker.
“We conclude that PSQ’s scale-up agenda is feasible without a material change in capital structure nor any variation in dividend policy.”
Wilsons’ 12-month price target on the Pacific Smiles share price is $2.95 a share.
Right port of call
Meanwhile, the Qube Holdings Ltd (ASX: QUB) share price is another worth putting on your “buy” list, according to Jarden.
The broker looked at container movements across our nation’s ports and believes shares in the New South Wales logistics group is cheap.
Container volumes at the NSW port jumped by 14.9% in January 2021 compared to the same time last year.
Container recovery more promising than it looks
While the start of 2020 was marred by bushfires and the drought, its encouraging to see that this January’s figures were still 7.6% ahead of January 2019.
“Strong organic volume growth in January presents upside risk to Qube’s growth outlook for 2H21e, as future months begin to be inflated by cycling low, COVID-19 impacted bases,” said Wilsons.
“We think the stock remains catalyst rich, and that earnings will be supported as industry volumes should continue to normalise post-COVID.”
The broker’s 12-month price target on the Qube share price is $3.60 a share.
Where to invest $1,000 right now
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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.
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Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. 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.
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