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Leading brokers agree on these 5 strong buys

MarketIndex release a monthly broker consensus report compiling broker opinion across a range of different rating systems to create a recommendation score ranging from Strong Buy to Strong Sell.

These 5 stocks are on the Strong Buy list right now.

Here’s a closer look at why.

Afterpay Touch Group Ltd (ASX: APT)

Shares in retail-centric e-commerce platform Afterpay Touch Group Ltd have soared in the last year – up 303% – catching the attention of many brokers for obvious reasons.

Buyers have made the most of a short lull in share price recently, with news Afterpay has launched its service in the dental market well-received by investors.

Afterpay will also move into the beauty, entertainment and travel space and seems to be going gangbusters no matter where it finds itself.

But be aware – ASIC keeps a close eye on the likes of Afterpay, particularly the fees it charges on outstanding balances and merchant transactions.

While Afterpay looks to continue to go from strength-to-strength for now, certain regulation changes could see its undoing.

If you’re buying in, plan your exit strategy at the same time.

Bingo Industries Ltd (ASX: BIN)

Waste management and recycling company Bingo Industries is an exciting growth share, so it’s little surprise it features as a MarketIndex broker consensus Strong Buy.

Bingo reported pro forma profit growth of 44.8% to $48.2 million for FY18 off the back of robust construction activity and growing customer base.

Bingo has forecast EBITDA growth of between 15% and 20% for FY19 and its Dial A Dump acquisition should come into play in that time which should equate to even more positives for a company really making a name for itself in a growing sector.

Bingo shares are hovering at 52-week highs right now, but I still think there is plenty of upside to be realised in this one yet.

Pilbara Minerals Ltd (ASX: PLS)

Mid-cap lithium and tantalum producer Pilbara Minerals Ltd operates in the coveted lithium space – a product gaining global attention for the potential of its usage in the growing battery production market.

This week Pilbara announced its maiden shipments of spodumene concentrate from its Pilangoora project in Western Australia – en route to north Asia – an historic moment for the company four years since its first drill hole was opened.

Pilbara will now be focused on ramping up the plant to its Stage 1 nameplate capacity, with the Stage 2 expansion also at front of mind.

One to watch in the commodities space.

Reece Ltd (ASX: REH)

Bathroom and plumbing product household name Reece Ltd delivered a pleasing set of figures when it handed down its FY18 results recently, with sales up 10.7% to $2.6 billion, net profit up 6.1% to $225 million and a fully-franked full-year dividend of 20.25c per share.

It is now focused on conquering the US – with a strategy in place to grow its footprint in the US Sun Belt region and leverage off opportunities to drive future organic and acquisition-led growth.

There are some concerns about a slowing housing market, but Reece is one of those companies that seems to have a pretty good grasp on how to manage its risk and seek out new alternatives for growth.

Smartgroup Corporation Ltd (ASX: SIQ)

Salary packaging company Smartgroup Corporation has had some good support from investors in the last year – bolstered recently by moves from its own CEO to pick up 9000 new shares through an on-market trade.

With NPATA of $38.5 million for the half year to June 30, 2018 – up 27% on the previous corresponding period – and revenue at $122.6 million, up 26%, Smartgroup certainly seems to be getting the fundamentals right.

One to keep a close eye on.

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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.