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Here are 3 ASX shares brokers think you should avoid

With a seemingly endless number of quarterly and half-year updates being released recently, brokers up and down Australia have no doubt been busy adjusting their discounted cash flow models accordingly.

Whilst some shares have come out of this with upgrades, others haven’t fared so well. Here are three shares which brokers have labelled as sells today:

Idp Education Ltd (ASX: IEL)

A research note out of Credit Suisse reveals that its analysts have slapped an underperform rating and $4.00 price target on the education company’s shares. According to the note Credit Suisse believes that Idp Education’s shares are expensive considering the potential risks around regulatory changes. At 25x annualised earnings I would agree that its shares are a touch expensive. Whilst I would not necessarily be in a rush to sell, I wouldn’t be a buyer at today’s price.

Genworth Mortgage Insurance Australia (ASX: GMA)

Prior to today’s market update, UBS released a research note downgrading Genworth Mortgage Insurance’s shares to a sell rating with a $2.60 price target. That market update proved to be a disappointing one with management advising that it expects its net earned premium to decline by between 10% and 15% in 2017. Furthermore, it has forecast the full-year loss ratio to be between 40% and 50%. As I’m bearish on the housing market, I would have to agree with UBS on this one.

Woolworths Limited (ASX: WOW)

Analysts at Macquarie have downgraded the retail giant to an underperform rating with a $26.20 price target following yesterday’s third-quarter update. According to the note its analysts believe that the market is overly optimistic on its turnaround amid increasing competition. Whilst I wouldn’t be a buyer at the current share price, I was reasonably impressed with its performance during the quarter. The Big W business may continue to disappoint, but the rest of the business appears to be improving.

Whilst the aforementioned shares might be worth avoiding right now, I rate these growth shares as strong buys today. They could be just what your portfolio needs to take it to the next level.

Top 3 ASX Blue Chips To Buy In 2017

For many, blue chip stocks means stability, profitability and regular dividends, often fully franked..

But knowing which blue chips to buy, and when, can be fraught with danger.

The Motley Fool's in-house analyst team has poured over thousands of hours worth of proprietary research to bring you the names of "The Motley Fool's Top 3 Blue Chip Stocks for 2017."

Each one pays a fully franked dividend. Each one has not only grown its profits, but has also grown its dividend. One increased it by a whopping 33%, while another trades on a grossed up (fully franked) dividend yield of almost 7%.

If you're expecting to see the likes of Commonwealth Bank, Telstra and Wesfarmers shares on this list, you'll be sorely disappointed. Not only are their dividends growing at a snail's pace, their profits are under pressure too due to the increasing competitive environment.

The contrast to these "new breed" blue chips couldn't be greater... especially the very real prospect of significant share price gains, something that's looking less likely from the usual blue chip suspects.

The names of these Top 3 ASX Blue Chips are included in this specially prepared free report. But you will have to hurry. Depending on demand - and how quickly the share prices of these companies moves - we may be forced to remove this report.

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Motley Fool contributor James Mickleboro has no position in any stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 Bruce Jackson.

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