MENU

Fund manager says these 4 ASX shares are attractive opportunities

The recent market volatility has caused four ASX shares to trade at far more attractive valuations according to Marcus Bogdan from Blackmore Capital.

These are his four choices:

Macquarie Group Ltd (ASX: MQG)

Mr Bogdan pointed out that Macquarie’s first half cash profit of $1.3 billion was ahead of market consensus, with earnings guidance of more than 10% in FY19.

The cancellation of its buy-back was actually a good thing because it had the ability to put the money towards growth opportunities in its existing businesses.

I also like Macquarie, I much prefer it to the other four big banks like Commonwealth Bank of Australia (ASX: CBA) because of its global earnings profile.

Cleanaway Waste Management Ltd (ASX: CWY)

Cleanaway is well placed to deliver consistent earnings growth over the medium-term according to Mr Bogdan. The vertical integration of collections, resource recovery, treatment and landfill provide the company high barriers to entry in an essential industry.

Ramsay Health Care Limited (ASX: RHC)

Ramsay is facing a number of headwinds, however Mr Bogdan thinks that its exposure to the medium to long-term theme of chronic disease and ageing demographics will support health care providers.

The private hospital’s broadening earnings is providing scale and new adjacent revenue streams in primary and specialist care.

Xero Limited (ASX: XRO)

Xero recently revealed 12-month subscriber growth of 24% to 1.58 million and annualised monthly recurring revenue growth of 28% to NZ$589 million.

Mr Bogdan believes that with Xero’s share price falling to a level not seen since April it offers more compelling value.

Foolish takeaway

All four of the above businesses are quality choices and I think they’re likely to beat the market over the long-term.

I’m most interested in buying Ramsay shares, but the current private health insurance affordability may not be sorted any time soon, so I’m holding out for a price below $50.

Motley Fool contributor Tristan Harrison owns shares of Ramsay Health Care 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 Scott Phillips.

5 ASX Stocks for Building Wealth After 50

I just read that Warren Buffett, the world’s best investor, made over 99% of his massive fortune after his 50th birthday.

It just goes to show you… it’s never too late to start securing your financial future.

And Motley Fool Chief Investment Advisor Scott Phillips just released a brand-new report that reveals five of our favourite ASX stocks for building wealth after 50.

– Each company boasts strong growth prospects over the next 3 to 5 years…

– Most importantly each pays a generous dividend, fully franked.

Simply click here to find out how you can claim your FREE copy of “5 ASX Stocks for Building Wealth After 50.”

See the stocks now