4 ASX market leaders I'm looking to buy right now

The turmoil that the coronavirus has inflicted on ASX shares has provided some companies with the opportunity to become the next market leaders.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended ResMed Inc. 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.

More on Best Shares

A smiling young surf life saver at the beach shouts out on a megaphone.
Best Shares

Top ASX shares to buy in March 2024

Shout out for the first day of autumn! Are you letting 2024's ASX gains flow your way?

Read more »

A businessman hugs his computer and smiles.
Best Shares

5 ASX shares to buy and hold forever in your investment portfolio

Here are my five picks for a future-proof ASX share portfolio.

Read more »

Three hikers lift their arms in jubilation as they reach a rocky peak overlooking a sensational view of water and mountains with a blue sky surrounding them.
Best Shares

Top ASX shares to buy in February 2024

The Aussie stock market is scaling new heights. Are you getting in on the action?

Read more »

A girl is handed an oversized ice cream cone with lots of different flavours.
Best Shares

Top 5 most profitable ASX large-cap shares of 2023

These big and bustling companies were the King Kongs of profitability last year.

Read more »

A woman looks internationally at a digital interface of the world.
Best Shares

In a record year for ETFs growth, this ASX crypto fund returned 215%

Crypto and technology ETFs delivered the highest returns for ASX and Cboe Australia investors in 2023.

Read more »

a man with a wide, eager smile on his face holds up three fingers.
Best Shares

3 no-brainer ASX 300 shares I'd buy right now without hesitation

I don't like buying shares near record highs, but I'd make an exception for these three...

Read more »

An older woman clasps her hands with joy, smiling at the news on her computer as she sits at her kitchen bench..
Best Shares

Which had the better year in 2023: Telstra, Woodside or Wesfarmers shares?

We review the share price growth and dividends paid by these popular ASX 200 shares last year.

Read more »

Three miners wearing hard hats and high vis vests take a break on site at a mine as the Fortescue share price drops in FY22
Best Shares

Which had the better year in 2023: Core Lithium, Liontown or Pilbara Minerals shares?

We assess the performance of these ASX 200 lithium shares.

Read more »