Why I would buy these ASX shares next week

Whilst the current market volatility can be very unnerving, one positive way to look at it is that it has brought a number of quality shares down to attractive prices.

In light of this, here are two ASX shares that I would consider buying next week when the market re-opens.

Collins Foods Ltd (ASX: CKF)

I think this KFC-operator is well worth considering as a buy and hold investment due to the long runway for growth it has thanks to its European expansion. Furthermore, unlike its industry peer Domino’s Pizza Enterprises Ltd (ASX: DMP), Collins Foods shares change hands on an undemanding earnings multiple of just 18x trailing earnings.

I’m not alone in thinking Collins Foods is attractive. A broker note out of Morgans today reveals that its analysts have initiated coverage on the company with an add rating and $5.90 price target. This price target implies potential upside of 11.5% for its shares over the next 12 months.

Ramsay Health Care Limited (ASX: RHC)

This week’s market volatility has led to this private hospital operator’s shares losing 3.5% of their value. This has left them trading within sight of their 52-week low and at a level which I think is a very attractive entry price.

While FY 2018 may not be a stellar year for the company, I believe that ageing populations and increased chronic disease burden means that demand for its services will remain strong for decades to come. This could lead to above-average earnings growth for the foreseeable future, making it a great candidate for a buy and hold investment. Especially given the fact that its strong balance sheet gives it the opportunity to accelerate its growth through acquisitions or expansions. In light of this, I would choose it ahead of its industry peer Healthscope Ltd (ASX: HSO).

Finally, here are three more top shares that I think investors ought to consider buying next week.

Top 3 ASX Blue Chips To Buy In 2018

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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%.

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Motley Fool contributor James Mickleboro owns shares of Collins Foods Limited. The Motley Fool Australia has recommended Ramsay Health Care 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 Bruce Jackson.

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