MENU

Top broker names 3 ASX resources shares to buy today

The resources sector may have outperformed the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) by a significant margin over the last six months, but one leading broker still thinks there are a number of great options for investors.

According to a research note out of Goldman Sachs late last week, the broker thinks resources shares have significant upside ahead of them.

The broker has pointed to the fact that resources shares are still only trading on a forward EV/EBITDA multiple of 6.5x. This is approximately 10% lower than the 20-year average.

This assessment has been made based on current spot commodity prices, which means there could be even greater upside if strong global growth leads to further increases in prices.

The three shares which Goldman likes the most in the sector are summarised below:

Alumina Limited (ASX: AWC)

This Australia-based company is engaged in investing in bauxite mining, alumina refining and selected aluminum smelting operations through its 40% ownership of Alcoa World Alumina and Chemicals. The broker has a conviction buy rating on Alumina’s shares despite their 23% rise over the last 12 months.

Origin Energy Ltd (ASX: ORG)

Goldman also has a conviction buy rating on this integrated energy company which is focused on gas and oil exploration and production, power generation, and energy retailing. I would have to agree with the broker on this one. I think Origin is attractive at the current share price even though its shares are up 30% since this time last year.

OZ Minerals Limited (ASX: OZL)

Lastly, Goldman has tipped this leading copper producer to shine in 2018 and has given it a buy rating. Considering the positive outlook for the global economy, I expect that copper demand could remain strong and prices could stay at their high levels this year. While I would prefer to gain exposure to copper through BHP Billiton Limited (ASX: BHP), I still think OZ Minerals’ shares are worthy of consideration.

But if resources shares are not to your liking then take a look at these top shares which I'm tipping for big things this year.

Top 3 ASX Blue Chips To Buy In 2018

For many, blue chip stocks mean 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 2018."

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%.

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.

Click here to claim your free report.

Motley Fool contributor James Mickleboro has no position in any of the 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.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!