3 ASX shares to buy for scary times

a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.

Share markets around the world are in a bit of a panic.

Investors are pulling out their money in droves due to fears that central banks can’t raise interest rates to combat inflation without sending us all into a recession.

But as legendary investor Warren Buffett is often quoted as saying, wise investors need to be greedy when others are fearful.

That is, buy up cheap ASX shares to hold for the long run while everyone else is running around like headless chooks.

Here are three such buy suggestions from experts:

Pizza for dinner, anyone?

Perhaps one could argue that as the economy hits a low point, more people will be dining out on fast food rather than the gourmet stuff.

If you believe in that theory, you would agree with Morgans advisor Jabin Hallihan who picked Domino’s Pizza Enterprises Ltd (ASX: DMP) as a buy.

“The fast food giant faces near term challenges of currency headwinds and inflation,” he told The Bull.

“However, the company offers growth opportunities in the key markets of Japan and Taiwan.”

The Domino’s share price has halved since the start of the year.

Hallihan’s team has a price target of $93 for the stock, which is more than 50% higher than the Wednesday closing price of $61.70.

Domino’s shares are somewhat divisive in the wider professional community. According to CMC Markets, six out of 14 analysts recommend it as a strong buy, but seven rate it a hold.

$10 lettuce, anyone?

With food prices skyrocketing due to global shortages triggered by shipping delays and the war in Ukraine, backing agriculture might not be a bad move.

Fat Prophets chief Angus Geddes likes the look of Elders Ltd (ASX: ELD) to take advantage of that angle.

“Elders is leveraged to the buoyant rural sector, and reported a strong 2022 interim result.”

The company, which supplies goods and services to agricultural producers, is seeing demand outstripping supply across its whole catalogue. 

“Elders has been winning market share from targeted acquisitions and from tweaks to its strategic positioning.”

Elders shares have dropped about 17% over the past three weeks.

Want to play the pokies, anyone?

While Australians may not gamble as much during an economic downturn, gaming provider Aristocrat Leisure Limited (ASX: ALL) is still a cheap buy in the long run for Hallihan.

“The slot machine maker remains a high quality growth business with long term opportunities,” he said. 

“We’re forecasting 16% growth in earnings before interest, taxes and amortisation in the coming year.”

Morgans recommends it as a buy with a target of $43.

That’s about a 30% premium on the Wednesday closing stock price of $33.01.

Most other analysts absolutely agree with Hallihan, with 11 of 16 recommending Aristocrat shares as a strong buy on CMC Markets.

Aristocrat shares have lost about a quarter of their value since the start of this year.

The post 3 ASX shares to buy for scary times 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

See The 5 Stocks
*Returns as of January 12th 2022

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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 has recommended Dominos Pizza Enterprises Limited and Elders 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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