The sharemarket watch site Market Index regularly publishes an aggregated list of broker opinions based on a sell, hold, buy and strong buy scale of recommendations. While it doesn't necessarily guarantee you a win, it's well worth investigating what we could term 'popular opinion'. Let's look at a couple of broker recommendations from the consumer discretionary sector of the ASX.
Webjet Limited (ASX: WEB)
Webjet Limited will be familiar to most people as an online travel service in Australia and New Zealand. Its great strength is that it can quickly offer a range of flights from a variety of carriers in just a few clicks. In recent years it has also acquired several brands that specialise in hotel bookings for individuals and groups. The WebBeds division, which operates globally, purports to be the fastest growing accommodation supplier to the travel industry.
As Webjet continues to grow through expansion and more people switch to online travel services, the company is well worth consideration as a longer-term growth stock, with a bonus modest dividend currently at 1.5% dividend yield. Webjet is currently trading for $13.81 per share.
Bapcor Ltd (ASX: BAP)
Bapcor is a supplier of parts and consumables required to service and maintain vehicles. As new car sales have slowed and we as consumers hang on to our existing vehicles for longer periods, we inevitably need to service and maintain them to keep them running smoothly.
Only recently, my old Honda got a brand new set of brakes, leads, points and a starter motor. Enter Bapcor to supply my mechanic with the parts he needed, and I'm back on the road. It's a story that plays out around the country every day. Combine this with the knowledge that the average age of registered vehicles in Australia is 10.1 years and we can surmise that there's a lot of servicing and maintenance to be done to keep the national fleet on the road.
You can see why brokers have been drawn to Bapcor as a potential growth share. Back in September 2018 Bapcor achieved a record high price at $7.88 per share but is now trading at $6.35, indicating that now might be the time to dive in. On top of this, Bapcor's dividends are fully franked and in the last full year would have earned you 15.5 cents a share.
The brokers won't get it right every time, but in the case of Webjet and Bapcor there is certainly a strong recommendation to invest. It's absolutely worth considering but, as always, read widely and draw your own conclusions.
