5 shares that the brokers think are ready to buy

Most stock brokers effectively make their money by encouraging you to buy shares. Specifically, they encourage you to buy shares in companies which they “cover”. These covered stocks are generally companies which they either have corporate relationships with or that they hope to have relationships with.

Given the salesman nature of stockbroking it’s important to understand the motivation which is often behind a “sales pitch”. That being said, brokers do provide a valuable service and their company research and views are often useful.

Here are five stocks which at least two stock brokers are currently recommending as “buys”.

  1. Suncorp Group Ltd (ASX: SUN) has attracted two “strong buy” recommendations. With the company a significant provider of both insurance and banking services, Suncorp offers a unique exposure to both sectors. The stock is currently priced on a forecast price-to-earnings (PE) multiple of around 14 times.
  2. QBE Insurance Group Ltd (ASX: QBE) has attracted both a “buy” and a “strong buy” recommendation from two brokers respectively. Having emerged from a few difficult years, the stock’s forward PE multiple of just under 14 times could turn out to be an appealing entry point in this turnaround story.
  3. SEEK Limited (ASX: SEK) has garnered two “strong buy” recommendations. While the forecast PE multiple of 35 times is high, the stock’s growth profile is certainly above average too.
  4. ResMed Inc. (CHESS) (ASX: RMD) shares enjoy both a “buy” and a “strong buy” recommendation from two brokers. Trading on a forecast PE of 24 times and with earnings growth of 25% forecast in the 2017 financial year, it’s easy to see why this leading medical device company has attracted these positive broker calls.
  5. Webjet Limited (ASX: WEB) has received two “strong buy” recommendations. Whilst flat earnings are projected for the current financial year, looking ahead to financial year 2017 and 2018 suggests solid growth is expected, which could make the current PE of just under 24 times attractive. (source: Bell Direct).

Could these just released franked dividend picks turn $15,000 into over $30,000?

Would you like to know the names and details of not 1 but 3 of The Motley Fool's TOP Recommendations today? When renowned dividend investing pros like Andrew Page issue buy alerts, it pays to listen. Because investors who followed Andrew's recommendation of Australian Pharmaceuticals in early 2015 could've doubled their money in just over a year, turning $15,000 into over $30,000 by the time he recommended they sell and lock in their profits. Chances are you won't want to miss uncovering the names of Andrew's newest share recommendation and short list of 3 dividend Best Buys Now Shares.
So click here to learn more about these potentially life-changing shares.

Motley Fool contributor Tim McArthur 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.

Two New Stock Picks Every Month!

Not to alarm you, but you’re about to miss a very important event! Chief Investment Advisor Scott Phillips and his team at Motley Fool Share Advisor are about to reveal their latest official stock recommendation. The premium “buy alert” will be unveiled to members and you can be among the first to act on the tip.

Don’t let this opportunity pass you by – this is your chance to get in early!

Simply enter your email now to find out how you can get instant access.

By clicking this button, you agree to our Terms of Service and Privacy Policy. We will use your email address only to keep you informed about updates to our website and about other products and services we think might interest you. You can unsubscribe from Take Stock at anytime. Please refer to our Financial Services Guide (FSG) for more information.