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3 ASX shares rated as buys by several brokers

The three shares I’m going to mention in this article are rated as ‘buys’ by several brokers.

It’s quite hard to find businesses that are both good businesses and trading at a good price. Even then, one person might say Caltex Australia Limited (ASX: CTX) and another says that National Australia Bank Ltd (ASX: NAB) is a better choice.

Investment site MarketIndex regularly collates the ratings of brokers together to assess what the broker community collectively think are opportunities. Of course, this still isn’t a guarantee of success – they could all be herding together.

With that in mind, here are three shares that brokers like:

G8 Education Limited (ASX: GEM)

G8 Education may be able benefit from continued industry consolidation & acquisition, plus the government is also increasing funding. Slowing credit availability due to the Royal Commission could hamper growth of the number childcare centres and that could mean occupancy levels recovering across the industry.

Indeed, some market commentators have said that the ‘cowboys’ are leaving the sector.

Its share price is down 36% over the past year, leaving it trading at less than 14x FY19’s estimated earnings. At least ten brokers think it’s a buy.

James Hardie Industries plc (ASX: JHX)

This construction materials business is one of the largest construction material businesses on the ASX.

Its long history and growing profit have not been enough to save the company from a 30% share price fall over the past six months.

Housing construction in the US continues at a pleasing pace, which should be a pretty good medium-term tailwind.

It’s currently trading at 17x FY19’s estimated earnings. At least 11 brokers think it’s a buy.

Aristocrat Leisure Limited (ASX: ALL)

This business is a gambling machine manufacturer, it is also growing in the mobile games sector.

With only 1% of the social gaming market, there are big rewards on offer if the company can invest in the right areas. But, the investing may hurt shorter-term earnings.

It has seen its share price fall 16% over the past six months, leaving it trading at around 20x FY19’s estimated earnings. At least 10 brokers think it’s a buy.

Foolish takeaway

These three businesses are seemingly well-liked at the current prices, but they’re not ones at the top of my own watchlist.

If I had to pick one of the three it would be Aristocrat, although I think it’s worth closely watching whether the social impact of gambling & gaming causes regulators to take a closer look.

I’m after long-term growth with my portfolio, which is why I’d rather invest in these sound ASX businesses for my returns.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of National Australia Bank 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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