Leading managers reveal 3 top ASX picks

The Sohn Hearts and Minds 2018 Conference is happening today, where leading Australian investors name their top picks for over the next year.

Here are some of the choices:

Reece Ltd (ASX: REH)

Emma Goodsell from Airlie Funds Management went for the plumbing giant of Australia. The huge acquisition of US-based plumbing & HVAC business MORSCO dramatically changes the earnings profile of Reece – the new business will now generate earnings roughly half from Australia and half from the US.

The Wilson family have grown the business very successfully and a store roll-out in the US combined with higher margins could see Reece’s share price recover strongly.

Nufarm Limited (ASX: NUF)

The Australian drought has caused a lot of damage to Nufarm but Blake Henricks from Firetrail believes it can take market share in the industry.

He also pointed out that Omega 3 supply is likely to be flat because of over-fishing, but Omega 3 can now be harvested from plant-grown canola, where Nufarm can take a 20% share of the market.

JB Hi-Fi Limited (ASX: JBH)

Tim Carleton from Auscap Asset Management went for the unconventional pick of the electronic goods retailer. House prices and Amazon are obvious problems facing JB Hi-Fi.

Trading at only 11x FY19’s earnings he believes that this cash generator has been oversold and it’s actually out-doing Amazon in several categories.

It also comes with a very handy grossed-up dividend yield of 8%.

Other picks

Some of the other picks included Geoff Wilson going for Bandai Namco, Beeneet Kothari choosing PagSeguro, Nick Griffin picked Amazon and Steven Glass went for Kar Auction Services.

Foolish takeaway

Of the three ASX choices that I covered above, I would definitely go for Reece. Whilst I’m happy there is an opposing view to the demise of JB Hi-Fi, I wouldn’t invest in it. Reece seems like a high-quality business with long-term growth prospects, the pull-back could be a good time to buy in for a long-term hold.

One ASX share that is popular amongst leading fund managers is this top stock that is a leader of its industry.

This top ASX share just grew profit by 30%

You might not know this market leader's name, but it's rapidly expanding into a highly profitable niche market here in Australia. Even better, the shares boast a strong, fully franked dividend that should balloon in the years to come. In other words, we're looking at the holy grail of incredible long-term growth potential AND income you can watch accruing in your account in real time!

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Tristan Harrison 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 Scott Phillips.

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…


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!