If you are looking for two quality S&P/ASX 200 Index (ASX: XJO) shares to buy this month, my pick would be ResMed Inc (ASX: RMD) and Transurban Group (ASX: TCL).
Here’s why both of these shares are in my buy zone right now:
Global leaders
ASX 200 share ResMed may not be as well-known as other leading Australian healthcare shares such as CSL Limited (ASX: CSL).
However, ResMed has evolved over the past 30 years to be a global leader in its healthcare niche and is now one of the world’s top sleep treatment companies.
The company manufactures devices and cloud-based software solutions for the treatment of sleep apnoea and other chronic respiratory illnesses.
ResMed’s strong revenue growth story continues. ResMed achieved an impressive 47% increase in net income during the third quarter of FY 2020. This strong revenue growth is reflected in ResMed’s recent share price growth. Despite the challenges of the coronavirus pandemic, the ResMed share price has risen from $21.90 at the beginning of this year, to now be trading at $28.79. That’s more than a 30% increase.
I believe that ResMed is well-positioned to grow over the next decade, as it further expands its global reach. The international market for sleep apnea remains largely untapped.
Strong futures
Transurban is the largest toll road operator in Australia, and has an expanding overseas presence. This ASX 200 share now has a market capitalisation of $38 billion. In Australia, Transurban has a virtual monopoly on the toll road systems in both Sydney and Melbourne.
The Transurban share price took a hit during the early phase of the coronavirus pandemic from late February to mid-March. Since then its share price has made only a partial recovery.
The Transurban share price is currently trading at $14.01, compared to $16.34 in late February. I believe this offers astute investors with a long investment horizon a good buying opportunity. Revenues are no doubt likely to be further impacted in the short-term, especially in Melbourne, where stage 4 restrictions have just been introduced. However, traffic levels will eventually return to normal as the crisis eventually eases.
I believe that Transurban is well-placed to tap into growing revenues from growing populations in both its local and overseas operation over the next decade.
Foolish Takeaway
ResMed and Transurban are both high quality ASX 200 shares that I believe could make good additions to your ASX share portfolio this month. Both have strong market positions and an expanding overseas presence.
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More reading
- This is the only ASX sector tipped to report earnings growth this reporting season
- Why I would buy NEXTDC and these stellar ASX growth shares
- Is the Transurban share price a buy right now?
- 7 ASX shares to watch this reporting season
- I would buy ResMed and these ASX blue chip shares in August
Motley Fool contributor Phil Harpur owns shares of ResMed Inc. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The post ResMed and 1 other 5-star ASX 200 share to buy in August appeared first on Motley Fool Australia.
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