Analysts say buy these two S&P/ASX 200 stocks

Two stocks this Wise Owl analyst says to buy.

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The S&P/ASX 200 is sitting at mid-October 2017 lows to kick the week off, with the big four banks under pressure and gold miners appearing to be the only sector booking gains as investors retreat to their safe haven stock picks.

But Wise Owl analyst Simon Herrmann has picked two buys for investors who are keen to try and keep the momentum going.

Resolute Mining Limited (ASX: RSG)

It is no surprise to see a gold mining and exploration company such as Resolute Mining Limited in favour considering overall market conditions, but Herrmann thinks Resolute has more than just one-off luck at the moment.

Herrmann's buy rating comes off the back of Resolute's attractive production profile and solid balance sheet, with the company's "low-cost production" a benefit to shareholders.

Herrmann said Resolute's short-term performance had been "negatively impacted" by increased expenditure, but Wise Owl "remained attracted to the magnitude of the company's assets" and slapped a buy rating on the stock this week.

Resolute handed down its half-year results on February 22, announcing its ongoing investment in growth, NPAT of $38 million, revenue from gold and silver sales at $203 million and close to $200 million in cash, bullion and listed investments.

Resolute Mining has three operating mines in Africa and Australia, with a portfolio of gold development projects in Mali and Cote D'Ivoire.

Resolute shares were up 3.1% to $1.31 at the time of writing, a drop from $1.36 at this time last year, but nowhere near its 2017 calendar year low of 95c per share last December.

Coca-Cola Amatil (ASX: CCL)

Shares in carbonated soft drink stalwart Coca-Cola Amatil were down just over 1% at the time of writing to $8.61 – in line with its 12-month share price chart, which shows a year of declines – down from $10.47 at this time last year.

But Wise Owl's Simon Herrmann believes the stock could be in the midst of a turnaround, after committing additional investment money to Australian beverages.

Herrmann said Wise Owl predicted "medium-term growth" and income opportunities for Coca-Cola Amatil investors on the back of a reasonable valuation.

Coca-Cola Amatil announced statutory NPAT growth of 80.9% on FY16 when it handed down its FY17 results in late February with statutory EBIT up 45.5% on the previous corresponding period to $678.4 million.

Investors will keep an eye on the $40 million Accelerated Australian Growth Plan, Coca-Cola has in the pipeline for 2018 with the completion of its Richlands facility and cost-optimisation programs as the central focus.

Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Coca-Cola Amatil 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 Scott Phillips.

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