The three ASX 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 Westpac Banking Corp (ASX: WBC) is best whilst another person says BHP Group Ltd (ASX: BHP) 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 ASX shares that brokers like:
Bapcor Ltd (ASX: BAP)
Bapcor is the leading auto parts business in Australia and New Zealand. There are at least six analysts who rate the business as a buy.
It's easy to see why it's rated as a buy with Bapcor trading at less than 20x FY18's operating earnings and expectations for profit to grow by around 10% in FY19.
Bapcor has big plans to grow its Burson and Autobarn store networks in Australia, but it's the possibility of it becoming a large player in Asia which is exciting for the long-term.
Link Administration Holdings Ltd (ASX: LNK)
Link, a share services provider and large funds administration business is rated as a buy by at least nine analysts.
The company is doing a good job at diversifying its earnings streams and its operating net profit grew by 17% in the first half of FY19. The growth and increasing complexity of superannuation could be an excellent tailwind for Link with it being responsible for the administration of around a third of superannuation members.
Nufarm Limited (ASX: NUF)
Nufarm shares plunged 24% yesterday after another disappointing result, however it was rated as buy by at least 11 analysts.
The agri business continues to suffer as a result of the dry Australian conditions, however this could be the best time to buy shares as this could be the bottom of the cycle. The best time to buy is when there is blood in the streets after all. Perhaps we could see a recovery over the next couple of years like we saw with BHP.
Foolish takeaway
Each of these businesses have the potential to beat the market over the next couple of years. At the current prices, Nufarm could be a very good contrarian choice, but I would rather go for Bapcor shares because of the defensive earnings and potential Asian growth.
