The turmoil that the coronavirus pandemic has inflicted on ASX shares has provided some companies with the opportunity to become the next market leaders.
With this in mind, here are 4 potential market leaders I'm looking to buy on the ASX right now.
A2 Milk Company Ltd (ASX: A2M)
The a2 Milk share price has shrugged off the market turmoil and is currently posting new all-time highs. Despite relying heavily on Chinese demand for sales growth, a2 Milk has reassured investors that growth margins remain on track.
With local and international consumers looking to stockpile products, a2 Milk forecasts its earnings before interest, tax, depreciation and amortisation (EBITDA) margin to remain in the 29–30% range for the full-year. In my view, a2 Milk is well-positioned as a market leader, and the company highlighted its resilience recently by announcing its intentions to further expand into the Canadian market.
ResMed Inc (ASX: RMD)
The ResMed share price is also trading near all-time highs, with the company experiencing a surge in demand for invasive and non-invasive ventilators. ResMed is a global leader in respiratory medical devices, particularly targeted towards the treatment of sleep apnoea.
ResMed was recently included in the Defence Production Act enacted by the White House, requiring the company to increase its production of ventilators. Apart from the current demand tailwinds that the company has experienced, I believe ResMed is also well-positioned for growth in the long-term with its successful sleep apnoea devices.
Brambles Limited (ASX: BXB)
Brambles is another company that has positioned itself for growth in the current market environment. The company is a logistics giant, owning more than 330 million pallets and crates through its iconic CHEP brand. What gives Brambles its defensive qualities is the company's exposure to fast-moving consumer goods (FMCG) and stable supply chain.
Yesterday, Brambles reported sales revenue growth of 6% in the March quarter and in the first 9 months of FY20. The company noted that this sales growth reflected the resilient and defensive nature of its business. Despite being sold-off earlier in the year, the Brambles share price has bounced more than 25% from its low in mid-March.
Coles Group Ltd (ASX: COL)
The coronavirus pandemic has seen Coles experience a significant surge in sales momentum on the back of consumer panic buying. This surge in sales could see the supermarket giant boost its operating margins and earnings.
Earlier this year, Coles reported its 49th consecutive quarter of comparable sales growth in its supermarket division. In addition, management also identified $1 billion in cost savings that could be achieved by FY23.
Foolish takeaway
The coronavirus pandemic will not only change consumer behaviour, but it also has the potential to reshape what stocks will lead the market heading into the future.
Despite the doom and gloom, the current state of the ASX offers long-term investors the opportunity to identify quality shares that they can build a portfolio around for the long-term.
