ASX 200 sector leaders to buy amid today’s market rally

S&P/ASX 200 Index (ASX: XJO) shares are rising strongly on Tuesday as investors look beyond the ongoing war in Iran.

Nine of the 11 ASX 200 market sectors are higher, with tech shares in the lead, up 4%, followed by materials, up 2.1%.

It appears investors are looking for value after a prolonged tech sector downturn and a sell-off in mining shares last month.

Here are three ASX 200 shares with buy recommendations from the experts.

All three are the leading stocks of their respective sectors by market capitalisation.

CSL Ltd (ASX: CSL)

CSL is the largest ASX 200 healthcare share with a market cap of $67.4 billion.

Healthcare shares have been in a sector rout due to currency changes, US tariffs, and higher labour and cost pressures.

The S&P/ASX 200 Health Care Index (ASX: XHJ) has fallen 27% over six months.

On Tuesday, the CSL share price is $140.82, up 1.4%.

CSL shares have halved in value over the past two years, and recently hit an eight-year low of $133.35.

Disappointing results, a company restructure, and lower global vaccination rates have weighed on the stock.

However, UBS sees value here, maintaining a buy recommendation on CSL shares with a 12-month target of $235.

BHP Group Ltd (ASX: BHP)

BHP is the largest stock in the ASX 200 materials sector with a market cap of $260 billion.

ASX mining shares were the worst hit by the war in Iran.

Over the first three weeks of March, the S&P/ASX 200 Materials Index (ASX: XMJ) tumbled 21%.

The BHP share price dropped from a record high of $59.39 on 3 March to a low of $46.06 on 23 March.

Today, the BHP share price is $52.62, up 2.7%.

Morgan Stanley has a buy rating on the ASX 200 mining giant with a share price target of $56.

WiseTech Global Ltd (ASX: WTC)

Wisetech is the largest ASX 200 tech share with a market cap of $13 billion.

Portfolio managers Tim Riordan and Michael Teran from Blackwattle describe Wisetech as one of the market’s highest quality companies.

That’s despite the Wisetech share price more than halving over the past six months.

Wisetech has faced several issues and has also fallen amid a broader tech sector rout driven by artificial intelligence (AI) fears.

The S&P/ASX 200 Information Technology Index (ASX: XIJ) has deteriorated 45% over six months.

However, Riordan and Teran recommend that investors buy the dip on Wisetech shares.

They comment:

We are excited about the FY27 and beyond outlook and see WTC as one of the few technology companies pivoting in the face of AI disruption risk.

We believe this makes a significant long-term, compounding growth profile and highly attractive Risk/Reward makes the current share price selloff a significant investment opportunity.

The post ASX 200 sector leaders to buy amid today’s market rally appeared first on The Motley Fool Australia.

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• Buy, hold, sell: CSL, QBE, and Pro Medicus shares
• Is now the time to load up on CSL shares?

Motley Fool contributor Bronwyn Allen has positions in BHP Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended BHP Group and CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.