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Top broker reveals 19 ASX shares to buy this year

A leading analyst from Morgans has revealed 19 ASX shares to buy this year now that reporting season has finished.

Andrew Tang said in an piece on Livewire that the February results were broadly in-line with expectations, despite ongoing systemic risks like the weakening housing market, the weak consumer, intensifying regulation & political risk.

There are still expectations of profit growth for the ASX, but that has reduced to a compound annual growth rate of 4.1% over the next three years. This compares to the ASX200 Industrial forward price/earnings ratio of just over 16x.

Despite a lot of negative noise, Mr Tang outlined a number of potential investment opportunities in different groups:

Offshore growers

Wine maker Treasury Wine Estates Ltd (ASX: TWE), business travel company Corporate Travel Management Ltd (ASX: CTD), fast fashion jewellery store business Lovisa Holdings Ltd (ASX: LOV) and fintech business Iress Ltd (ASX: IRE).

Steady cashflow growers

Retail conglomerate Wesfarmers Ltd (ASX: WES), Origin Energy Ltd (ASX: ORG) and Aventus Group (ASX: AVN).

Those enjoying industry tailwinds

Resource company Oil Search Limited (ASX: OSH), high-performance cooling business PWR Holdings Ltd (ASX: PWR), IT company Data#3 Limited (ASX: DTL) and education business RedHill Education Ltd (ASX: RDH).

Those past their cycle lows

Telco Telstra Corporation Ltd (ASX: TLS), insurer QBE Insurance Group Ltd (ASX: QBE) and car company AP Eagers Ltd (ASX: APE).

Cheap stocks being overlooked

Finance and HR business CML Group Ltd (ASX: CGR), waste collection company Bingo Industries Ltd (ASX: BIN), fashion retailer Noni B Limited (ASX: NBL), coal miner Whitehaven Coal Ltd (ASX: WHC) and Orocobre Limited (ASX: ORE).

This is a diverse list and I can see why each share was picked as a potential short-term market-beating idea.

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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 and has recommended Corporate Travel Management Limited, Treasury Wine Estates Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT, Data#3 Ltd., and IRESS 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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