The S&P/ASX 200 Index (ASX: XJO) has bounced back strongly on Tuesday and is up over 3% in early trade.

This follows a positive night of trade on U.S. markets which saw both the Dow Jones and Nasdaq indices recover from an early sell off to record solid gains.

While a large number of ASX 200 shares are pushing higher today, one standout has been the Afterpay Ltd (ASX: APT) share price.

In morning trade the payments company’s shares have rocketed almost 8% higher to a new record high of $55.19.

It isn’t just Afterpay on the rise today. The Zip Co Ltd (ASX: Z1P) share price is also up 8% to $6.26 at the time of writing. This puts it within sight of its record high of $6.97.

Today’s gains mean that Afterpay’s shares are now up 590% from their March low and Zip’s shares are up almost 500% from their March low.

This has been driven by impressive sales and customer growth by both companies and the avoidance of a deterioration in bad debt levels during the pandemic. These positive metrics appear to have convinced the market that their business models are far more robust that many gave them credit for.

Can Afterpay and Zip shares go higher?

While the short term performance of their shares is difficult to predict, I believe over the long term their shares can go materially higher from here.

Thanks to international expansion, the increasing popularity of the payment method, and their massive market opportunities, I feel both companies are well-positioned to deliver very strong sales growth for many years to come.

Though, given the premium their shares trade at and the risks involved, I would suggest investors try to limit an investment in either of their shares to just a small part of a balanced portfolio.

I’m not alone in thinking they could be good options for investors. Earlier this month Morgans placed an add rating and $7.00 price target on Zip’s shares and Bell Potter put a buy rating and $65.00 price target on Afterpay’s shares.

More reading

• Is the Altium share price the steal of the century?
• The top ASX growth shares I would buy for the 2020s
• The Afterpay share price is up 580% from its March low
• Got $5,000 spare? Consider Wesfarmers shares and these 2 other ASX companies
• Keep a watch on the Zip Co share price and 1 other ASX tech this June

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.

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If you’re looking to invest $1,000 into the Australian share market, then there are a lot of quality options for investors to choose from.

To narrow things down, I have picked out two ASX 200 shares that I think would be smart choices for investors. Here’s why I like them:

Aristocrat Leisure Limited (ASX: ALL)

I think Aristocrat Leisure would be a great place to invest $1,000 right now. Especially with its shares down 35% from their 52-week high. While a pullback in its share price has not been unwarranted considering the negative impact of the pandemic on its business, I think the selloff has been overdone.

Aristocrat Leisure’s shares are currently changing hands at 21x estimated FY 2021 earnings. I think this is great value given its very positive long term outlook. This is thanks to its leading pokie machine business and its lucrative digital business which is generating significant recurring revenues from its millions of daily active users. Combined, I believe they will underpin solid earnings growth over the next decade.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX share which I think investors ought to consider investing $1,000 into is Domino’s. I believe the pizza chain operator is one of the best buy and hold options on the Australian share market. This is thanks to its positive long term outlook due to its expansion plans and management’s same store sales targets.

Over the next five years Domino’s is aiming to deliver annual same store sales growth of 3% to 6% and annual organic new store additions of 7% to 9%. And while there is a risk that new store openings will suffer during the pandemic, I’m confident the company will soon catch up with its target. Overall, I expect this winning combination of organic and inorganic growth to underpin strong earnings growth over the next decade.

More reading

• Coles shares and 2 other ASX 200 companies to buy in the current market
• The Santos share price is down 36%! This is what I’d do today
• Is the Altium share price the steal of the century?
• I think Aristocrat shares are outstanding value
• Got $3,000? These 5 beaten-down ASX shares are begging to be bought

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited. 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 Investing $1,000 into these ASX 200 shares could be a smart move appeared first on Motley Fool Australia.

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ASX 200 shares are under pressure again after a fourth straight day of losses. The S&P/ASX 200 Index (ASX: XJO) is now down 7.2% since last Wednesday’s close.

That means there could be some great bargains in the current market. Xero Limited (ASX: XRO), Newcrest Mining Ltd (ASX: NCM) and Coles Group Ltd (ASX: COL) shares are just a few of the top shares that I think can help you prepare in the current market environment.

3 ASX 200 shares to buy in the current market

It’s hard to know how to position for a second market crash at the best of times, let alone in the midst of a pandemic.

I think non-cyclical earnings and large-cap shares are the key to weathering any storm. Coles shares could fit this bill.

The Coles share price rocketed higher in February and March when the first coronavirus restrictions kicked in. While I don’t think we’ll see the same level of panic buying again in 2020, Coles earnings could still be solid.

That’s especially the case given times are tough right now and many Aussies are cutting expenses where they can. That could mean less spending at cafes and restaurants and more buying from supermarkets like Coles.

Another ASX 200 share that could be in the buy zone is Newcrest Mining. The Newcrest share price has fallen 1.4% lower in 2020 which is a 13.0% outperformance compared to the ASX 200 benchmark index.

Gold shares tend to do well in a share market crash. Investors flock to the safe-haven asset as a store of value when ASX shares are in freefall.

Other than the gold shares, I think tech shares are promising in 2020. Tech shares have been leading the S&P 500 Index higher in the United States and we’ve seen similar on the ASX.

That could mean an ASX 200 tech share like Xero Limited (ASX: XRO) is in the buy zone.

Xero’s accounting software platform is in high demand right now as businesses look to keep a good handle on their finances.

That could mean Xero is a solid hedge with some upside potential in a share market crash.

Foolish takeaway

No one knows if and when another share market crash might occur. Newcrest, Xero and Coles shares are just a couple of the ASX 200 shares that could help to weather the storm in 2020.

However, panic buying and selling of shares also isn’t the answer.

It might be worth sticking to a long-term strategy and riding out the volatility over the coming decades.

More reading

• The Santos share price is down 36%! This is what I’d do today
• Is the Altium share price the steal of the century?
• Got $3,000? These 5 beaten-down ASX shares are begging to be bought
• 5 things to watch on the ASX 200 on Tuesday
• Why MOAT is my favourite ASX ETF

Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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 Coles shares and 2 other ASX 200 companies to buy in the current market appeared first on Motley Fool Australia.

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