With much uncertainty about interest rates, the economy, and geopolitics still weighing on investors, it makes sense to focus on reliable and stable ASX shares.

Smaller and more speculative stocks can flop very quickly on further bad news, which is known as high-beta among the professionals.

So for a true long-term investor, sound businesses with undeniable growth drivers could be the go for the coming period.

Baker Young managed portfolio analyst Toby Grimm this week named two S&P/ASX 200 Index (ASX: XJO) shares that have seen vastly different fortunes over the past year.

But he recommended buying both, as they have irresistible tailwinds in the long run:

That’s enough punishment

Over the past 12 months, James Hardie Industries plc (ASX: JHX) has, despite backing from many fund managers, seen its share price plummet almost 30%.

“This building products company recently announced a second full year 2023 profit downgrade to between US$600 million and US$620 million,” Grimm told The Bull.

“It was 8.1% below market consensus.”

The stock has struggled from both the perception and reality that steeply rising interest rates are killing the US housing market.

But Grimm is convinced the slaughter is now done and that James Hardie shares can only move up from here.

“With US interest rates likely to peak during the first half of calendar year 2023, we see potential for a share price recovery later this year,” he said.

“In our view, the shares offer long-term value at current levels.”

Grimm’s peers generally agree with him. 

According to CMC Markets, 11 out of 16 analysts currently recommend James Hardie as a buy. Ten of those professionals say it is a strong buy.

‘Confidence in improving profitability’

After going sideways for much of the COVID-19 pandemic, the last year has been more fruitful for CSL Limited (ASX: CSL) shareholders.

The share price has gained a tidy 13.6%.

And its trading conditions are only improving as we speak.

“Plasma collection levels and revenues across all divisions were ahead of expectations in the first half of fiscal year 2023.”

The recovery in this business is already delivering real results for investors.

“Although operating costs remain elevated, this blood products group still delivered a better than anticipated interim dividend of US$1.07 a share,” said Grimm.

“In our view, this signals confidence in improving profitability moving forward.”

CSL is a darling among professional investors at the moment. An incredible 16 out of 19 analysts currently surveyed on CMC Markets would buy.

The post ‘Long-term value’: Expert names 2 ASX 200 shares to buy for years to come appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Brokers name 3 ASX shares to buy now
• Top broker says CSL shares will hit $350, buy now
• Top brokers name 3 ASX shares to buy today
• Are CSL shares a buy following the ASX 200 giant’s latest results?

Motley Fool contributor Tony Yoo has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has no position in any of the stocks mentioned. 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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