2 big-name ASX shares to buy right now

With the market jittery about COVID-19 Omicron, inflation and rising interest rates, it’s worth reconsidering the old reliables.

Sure, exciting new businesses sacrificing profit to madly grab market share can see their shares rocket. But in uncertain times, they can also plunge.

With this in mind, Marcus Today portfolio manager Thomas Wegner this week picked out 2 ASX shares he would buy right now that are certainly long-time household brands:

Everyone still uses phones, regardless of inflation

Telstra Corporation Ltd (ASX: TLS) shares have been a staple of portfolios for mum-and-dad investors the past couple of decades.

But it hasn’t all been smooth sailing, with some serious underperformance at times frustrating shareholders.

The past year has been fantastic though, with a mini-revival seeing the stock price soar more than 36%.

Wegner reckons that’s just the start.

“Telstra remains the dominant player in the Australian telecommunications industry,” he told The Bull.

“Telstra is an income stock and its financial performance is building momentum.”

He pointed out how its mobile phone market share of 40% is lightyears ahead of its rivals.

“Digitisation, customer experience developments, cost reductions and capital management have placed it in a solid position at the start of 2022.”

Wegner is not the only analyst high on the telco. Goldman Sachs recently rated Telstra stock as a “buy” and put on a price target of $4.40.

Telstra closed Monday at $4.25.

Everyone still has to eat, regardless of inflation

Grocery and hardware provider Metcash Limited (ASX: MTS) possesses some of the most recognisable retail brands in Australia, like IGA supermarkets, Mitre 10, and Home Timber & Hardware.

Its shares have been on a nice tear the past 12 months, rising 27% in value while giving out a juicy 4.7% dividend yield.

But it has fallen more than 4% in the last month, perhaps opening up a buying opportunity.

Wegner noted Metcash’s favourable numbers from the first half of the 2022 financial year.

“Metcash delivered a good result given challenges with supply chains, labour shortages and staff isolation,” he said.

“Underlying profit after tax of $146.6 million in the first half of 2022 was up 13.1% on the prior corresponding period.”

The good times were driven by “shifting consumer behaviour and improved competitiveness in its retail networks”, according to Wegner.

“The trading update in December pointed to continuing success in the second half.”

Credit Suisse also rates Metcash as a “buy”, with a price target of $4.55 and an expectation of a 7% grossed-up yield this year.

Metcash shares closed Monday at $4.24.

The post 2 big-name ASX shares to buy right now appeared first on The Motley Fool Australia.

More reading

• These 3 ASX 200 shares are topping the volume charts on Monday
• 2 top ASX dividend shares to buy next week
• Top brokers name 3 ASX shares to buy next week
• Here are the 3 most heavily traded ASX 200 shares this Friday
• The Telstra (ASX:TLS) share price has already hit multiple 52-week highs this year. What’s happening?

Motley Fool contributor Tony Yoo 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 owns and has recommended Telstra Corporation Limited. 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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