Chicken and chips: Experts name 3 ASX shares to buy right now

A young boy points and smiles as he eats fried chicken.A young boy points and smiles as he eats fried chicken.

It’s a confusing time to buy shares right now.

Even after a 125 basis point rise in the past couple of months, the Reserve Bank is poised to deliver another super-sized hike in August.

Will such drama trigger a recession?

At the very least the economy will slow down considerably, which is exactly what the central bank wants in order to bring inflation down.

If all this is causing you a headache, perhaps it’s prudent to look at what ASX shares the experts are buying.

Here are three tips from two professional investors:

‘Wide economic moat’

James Hardie Industries plc (ASX: JHX) shares have lost a painful 39% so far this year.

But Bell Potter Securities investment advisor Christopher Watt likes the long-term outlook.

“This building materials company mostly services the residential construction industry with its flagship fibre cement range,” he told The Bull.

“James Hardie’s wide economic moat should protect its ability to earn above its cost of capital over the economic cycle.”

Watt’s peers agree, with 12 out of 14 analysts surveyed on CMC Markets currently rating the ASX share as a buy.

“Despite a challenging macroeconomic backdrop, we view James Hardie as an attractive long-term value proposition.”

‘A strong fiscal year 2022 result’

Recession or not, who doesn’t love a bucket of Kentucky Fried Chicken?

The quick-service restaurant industry enjoyed great patronage over the COVID-19 lockdown era and usually shows resilience through economic downturns.

Spotee Connect executive chair Elio D’Amato has noticed that shares for the franchisor of KFC in Australia, Collins Foods Ltd (ASX: CKF), have bounced back from a June trough.

The ASX share fell nearly 40% year-to-date until 17 June, but has since gained more than 19.4%.

“The KFC operator delivered a strong fiscal year 2022 result,” he said.

“It grew group revenue by 11.1% on last year’s prior corresponding period. Earnings per share grew by 24.9% and its fully franked dividend was up by 17.4%.”

Collins Foods also runs KFC and Taco Bell franchises in other countries too.

“The European business is reporting same-store sales growth of 12% in the first seven weeks of the new financial year.”

‘A high-quality technology story’

What goes well with chicken? Chips.

While there is no ASX-listed share specialising in fried potato, Altium Limited (ASX: ALU) is an important player in the computer chip industry.

The Australian company makes software that allows chipmakers to design printed circuit boards (PCBs).

Like most technology stocks, Altium shares have deflated considerably this year, losing around 34%.

Despite this, Watt likes the long-term narrative.

“Altium is a high-quality technology story,” he said.

“[It] has been steadily increasing its recurring revenue base over the past decade, with a shift to subscriptions.”

With the valuation down so much this year, Altium could also attract some corporate interest.

“In our view, Altium is also a potential takeover target,” he said.

“US engineering software giant Autodesk Inc (NASDAQ: ADSK) lodged an indicative bid at $38.50 a share, but the deal failed to materialise last year.”

The post Chicken and chips: Experts name 3 ASX shares to buy right now 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 July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

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 Altium, Autodesk, and Collins Foods Limited. The Motley Fool Australia has recommended Autodesk 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/HwblxqE

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