A ‘new entry point’ just opened for 2 ASX 200 shares with strong outlooks

If you’re a true long-term investor of ASX shares, you have mastered the art of looking past short-term dips.

But that doesn’t mean you ignore those fluctuations though.

Because a short-term decline could mean a tempting buying opportunity for those quality businesses that you always had your eye on.

A couple of experts this week named two S&P/ASX 200 Index (ASX: XJO) shares that are perfect examples:

Bullish for commodities

Mineral Resources Ltd (ASX: MIN) is a service provider for the mining industry, with much of its business coming from iron ore extraction.

Fairmont Equities managing director Michael Gable is a fan.

“The share price remains in a long term uptrend,” Gable told The Bull.

“However, weakness in the past few weeks saw the share price ease back to the bottom of the trend and provide a new entry point.”

Indeed, the Mineral Resources share price has dropped around 12% since 2 March while it still trades 28.5% higher than it did a year ago.

Gable’s team is sure the recent dip merely represents an attractive window to buy.

“We continue to remain bullish about the outlook for commodities given buoyant Chinese demand,” he said.

“We expect a weaker US dollar to offer price support to the sector.”

According to CMC Markets, 10 out of 17 analysts currently believe Mineral Resources shares are ripe to buy.

‘Strong start’ to the financial year

Ord Minnett senior investment advisor Tony Paterno’s bargain pick is petroleum company Ampol Ltd (ASX: ALD).

He noted how Ampol “delivered strong refiner margins” in the latest report.

“The fuel giant reported group statutory net profit after tax of $796 million in fiscal year 2022, an increase of 42% on the prior corresponding period.”

Paterno loved how the final fully franked dividend of $1.05 was supplemented with a special dividend of 50 cents, taking the yield to 7.26%.

The Ampol share price has risen more than 50% since the COVID-19 crash three years ago, but it has dipped 6.5% since the start of last month.

Paterno would use the opportunity to buy.

“Ampol retains a strong balance sheet,” he said.

“It reported a strong start in fiscal year 2023.”

Paterno’s peers largely agree, with 10 out of 12 analysts currently surveyed on CMC Markets rating Ampol as a buy.

The post A ‘new entry point’ just opened for 2 ASX 200 shares with strong outlooks appeared first on The Motley Fool Australia.

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More reading

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• ASX 200 lithium stocks sink again following Albemarle downgrade

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 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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