The ASX 50 index is home to 50 of the largest listed companies on the Australian share market.
While there are a number of quality options on offer in the index, two that could be in the buy zone are listed below.
Here’s what you need to know about these ASX 50 shares:
BHP Group Ltd (ASX: BHP)
The first ASX 50 share for investors to look at is BHP. It is of course one of the world’s largest mining companies with a portfolio of world class operations across a range of commodities and geographies.
It could be a top option for investors thanks to strong prices for many of the commodities it is producing. This is expected to offset higher labour costs and generate bumper free cash flow again in FY 2022.
And with the Big Australian’s balance sheet in a very healthy position, this provides it with the opportunity to reward shareholders with big dividends and consider M&A activities.
And while the BHP share price has stormed 12% higher this year, analysts at Macquarie still see plenty of upside ahead. Its analysts currently have an outperform rating and $57.00 price target on its shares.
REA Group Limited (ASX: REA)
Another ASX 50 share that is highly rated is REA Group. It is the dominant player in real estate listings in the Australian market.
Its shares have been hammered this year amid weakness in the tech sector. As disappointing as this is, it could be a buying opportunity for long term investors.
For example, Goldman Sachs currently has a buy rating and $167.00 price target on its shares.
Its analysts note that management “remains confident it can achieve double digit revenue/EBITDA growth through the cycle with positive jaws.”
“Overall, we believe these commitments illustrate the pricing power of REA, pipeline of value-add products, and its ability to offset any potential macro weakness, and now forecast FY22-24E Sales growth of 10% despite challenging volume listings,” it added.
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Motley Fool contributor James Mickleboro 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 REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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