2 ASX shares the Aussie lifestyle can’t do without

A woman faces away from the camera as she stand on the beach with an Australian flag around her shoulders and making a heart shape with her hands.A woman faces away from the camera as she stand on the beach with an Australian flag around her shoulders and making a heart shape with her hands.

So interest rates have risen 75 basis points over the past five weeks, and there is more to come.

This means that Australian consumers will rein in their spending and bunker down in order to make higher mortgage repayments.

If life’s excesses are trimmed, perhaps it’s best to back ASX shares of companies that provide goods and services that Aussies just can’t live without.

Wilsons investment advisor Peter Moran this week named two such examples to buy right now:

An ASX stock buy for the great outdoors

You may have seen the logo of ARB Corporation Limited (ASX: ARB) on other vehicles as you drive around Australia.

This is because ARB provides accessories and parts for a favourite Australian pastime — 4-wheel driving.

The company absolutely went gangbusters during the COVID-19 pandemic as Australians trapped in lockdown made their own adventures.

By November last year, ARB shares had quadrupled from its panic-selling low in March 2020.

Yes, it rose 300% over just 20 months.

But 2022 has been pretty ugly for the ASX stock. It has lost nearly half its value.

Moran still has faith, and believes it has been oversold.

“Underlying demand for parts remains strong, and the trend towards owning 4-wheel drive vehicles is likely to continue,” he told The Bull.

“We expect supply constraints to ease over time, which should generate higher levels of sales growth. We hold an overweight rating.”

Who wants a bucket tonight?

After enjoying the outdoor lifestyle, Australians also like to enjoy a greasy meal now and then.

This is where Moran’s other buying tip, Collins Foods Ltd (ASX: CKF), comes in.

“Collins Foods owns more than 300 KFC outlets in Australia,” he said.

“Collins is well-positioned for additional growth through its continuing rollout of Taco Bell outlets in Australia and via its KFC European operations.”

The owner of Kentucky Fried Chicken, like ARB, thrived during the lockdown era as Australians bought takeaway in droves.

Its share price almost tripled from the March 2020 trough.

However, Collins shares have fallen almost 33% year-to-date, and KFC outlets are now having to replace lettuce with cabbage in their burgers due to high supply costs.

But Moran is not worried.

“Concerns about increasing input costs have flowed to a weaker share price,” he said.

“Although costs will rise, investor concerns are too exaggerated, in our view. We hold an overweight rating.”

The post 2 ASX shares the Aussie lifestyle can’t do without 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 over ten 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 January 12th 2022

More reading

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 positions in and has recommended Collins Foods Limited. The Motley Fool Australia has recommended ARB Corporation Limited and Collins Foods Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/kEuGJI3

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s