Many of us self-confessed sharemarket nerds are also full-time employees, so we don’t get the time we would like to research closely all the companies we’d like to invest in.
The analysts at Morgans recently put out a list of their seven favourite ASX 100 stocks to buy in February. The list consists of some of Australia’s largest companies, however some are lacking in growth prospects – in my opinion.
Investors should remember that the greatest investors like Warren Buffett and Peter Lynch made their vast fortunes by finding companies that offer a combination of growth and regular income.
7 Blue Chips to Buy in February
Australia and New Zealand Banking Group (ASX: ANZ) offers a solid 5.5% dividend yield and may have some profit growth potential from its Asian operations, however slowing growth in China could derail those plans. Analysts also believe that ANZ will benefit from more rate cuts to come this year.
Macquarie Group Ltd (ASX: MQG) surged in January when it upgraded profit expectations for the current financial year. Macquarie is benefitting from a lower Australian dollar and lower business lending rates which is boosting merger and acquisition activity.
Ramsay Health Care Limited (ASX: RHC) and ResMed Inc. (CHESS) (ASX: RMD) have been chosen because of a combination of an increasingly health conscious consumer, the aging western population, and greater than sector-average growth prospects.
SEEK Limited (ASX: SEK) remains one of the best companies on the ASX and is exposed to the rampant growth in Chinese internet use via its stake in Chinese job website Zhaopin. Analysts see Australian ad volume increasing over the next 12 months from the current low.
The analysts at Morgans also found two infrastructure groups that offer attractive yields and stability. Property developer and manager Stockland Corporation Ltd (ASX: SGP) and Transurban Group (ASX: TCL) are expected to benefit from lower interest rates, increased consumer sentiment and increased yields from high-quality assets in the coming 12 months.
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When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Motley Fool contributor Andrew Mudie does not own shares companies mentioned. You can find Andrew on Twitter @andrewmudie
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