The volatility that ASX investors suffered over the past 18 months is not expected to wane anytime soon.

That’s why multiple experts are urging punters to back “quality” ASX shares rather than fall into the trap of becoming too speculative for quick riches.

A pair of advisors this week rated two such stocks as buys:

‘A discounted energy stock’

The Santos Limited (ASX: STO) share price has plunged 11.1% over the past 12 months.

That makes it a bargain buy, according to Bell Potter investment advisor Christopher Watt.

“In our view, Santos remains a discounted energy stock with the lowest implied oil price,” Watt told The Bull.

“The energy giant reported a solid first quarter production result in fiscal year 2023.”

Santos’ outlook is pleasing to Watt.

“The company retained fiscal year 2023 guidance,” he said.

“Santos is geographically diversified. Also, it offers a diversified product mix across LNG, domestic gas, crude oil and liquids.”

A 4.7% dividend yield also helps the buy case.

The team at Macquarie Group Limited (ASX: MQG) agrees with Watt’s bullishness.

The Motley Fool reported a fortnight ago that those analysts had a price target of $9.95 for Santos. That’s about a 40% upside from the current level.

The company with everything going for it

Industrial real estate manager Goodman Group (ASX: GMG) is Medallion Financial Group private client advisor Stuart Bromley’s pick.

The business has many tailwinds.

“It has high quality properties, blue chip tenants, an occupancy rate of 99% and long average lease expiries,” he said.

“Competition is modest and rental growth is accelerating.”

The market has certainly woken up to Goodman’s potential, sending the share price 16% up so far this year.

Bromley is confident the business is incubating further growth.

“The company continues to build, as it progresses $13.9 billion of existing projects,” he said.

“The gearing ratio is lower than other more exposed property plays. The company offers a bright outlook.”

Citigroup Inc (NYSE: C) analysts concur.

“Its analysts are forecasting double-digit earnings per share growth out until at least FY 2025,” reported The Motley Fool last week.

“It’s no surprise, then, to learn that Citi has a buy rating on its shares with a $24.00 price target.”

The target of $24 represents about a 20% premium on current levels.

The post ‘Bright outlook’: 2 ‘high quality’ ASX 200 shares to pounce on now  appeared first on The Motley Fool Australia.

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More reading

• I think this ASX 200 share is heavily underrated by the market
• 5 things to watch on the ASX 200 on Monday
• Here are 3 ASX 200 blue chip shares that analysts love
• Santos shares are down 10% in a year. Have the dividends been worth it?
• 2 ASX 200 stocks surging ahead following guidance upgrades

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tony Yoo has positions in Macquarie Group. 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Goodman Group. 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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