Recently, Bell Potter’s head of research services Peter Quinton provided a review of the broker’s 9 ‘champion stocks’ to own in a portfolio. According to analysts, these select ASX shares have solid balance sheets and are poised to benefit from positive growth themes over the next 3 to 5 years.
Here are the 9 ASX shares analysts think are ‘must haves’ in a portfolio.
Amcor Plc (ASX: AMC)
Amcor is a global leader in producing flexible and rigid packing and speciality cartons. The company makes the majority of its revenue from the sale of packaging for defensive consumer products such as food, beverages, pharmaceutical products and medical equipment.
Bell Potter finds the defensive earnings of Amcor attractive and predicts faster growth in emerging markets. Amcor has performed solidly during the coronavirus pandemic and is also in the process of realising cost synergies from its $9 billion buyout of US group Bemis.
Brambles Limited (ASX: BXB)
Brambles is a logistics giant with a resilient supply chain and great exposure to essential consumer goods. The company is best known for its iconic and reusable CHEP brand of pallets and crates, of which it has 330 million in circulation.
Analysts also like the defensive growth offered by Brambles and are optimistic about the company’s expansion into emerging markets to generate additional earnings growth.
Challenger Ltd (ASX: CGF)
Challenger is a listed investment management firm that specialises in retirement income products and annuities. Despite the company’s volatile share price in recent times, analysts have Challenger as a must have in a portfolio based on baby boomers moving into retirement, making annuities a rapidly growing product.
CSL Limited (ASX: CSL)
Personally, CSL is a common-sense choice for most investors being one of Australia’s highest quality businesses. The biotherapeutics company has displayed its quality in the current market, with the CSL share price trading more than 11% higher for the year.
Analysts from Bell are bullish on CSL as global growth in plasma demand increases in addition to the company’s extensive pipeline of research and products.
Goodman Group (ASX: GMG)
Goodman Group is one of the largest integrated industrial property groups in the world. Despite the Australian real estate investment trusts struggling in the current market environment, analysts believe that the outlook for Goodman remains favourable with the continued growth in e-commerce and growing demand in developing countries.
Lendlease Group (ASX: LLC)
Lendlease is an international property and infrastructure group, involved in developing, construction and operating property and infrastructure assets. Analysts from Bell have included Lendlease as part of their champion stocks due to what they view as substantial growth opportunities in international markets for the group, especially in urban regeneration.
Netwealth Group Ltd (ASX: NWL)
Netwealth is a specialist investment platform used by financial intermediaries to provide investment management solutions. The company’s platform provides financial advice on superannuation and other investments.
Following the royal commission into banking and financial services, Netwealth has been taking market share from institutional platforms such as the big banks and other large finance companies. Analysts favour Netwealth as they forecast a structural shift in the wealth management industry.
Sonic Healthcare Limited (ASX: SHL)
Sonic is the third-largest pathology provider in the world. With the radiology and pathology sector in high demand, analysts believe that the company is well posed for international expansion and also boasts defensive earning potential.
Transurban Group (ASX: TCL)
Transurban is the largest builder, owner and operator of toll road networks in Australia. Despite the company’s share price struggling in the current environment, analysts believe that the group has huge developmental opportunities in the long-term future, fuelled by Australia’s population and economic growth.
Should you buy?
Personally, I hold the research from Bell Potter in high regard. However, just because analysts recommend owning a stock doesn’t mean investors should jump the gun and start buying. I think a prudent strategy would be to compile your own watchlist of champion stocks and wait for positive price action before making an investment decision.
5 stocks under $5
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Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Netwealth. The Motley Fool Australia owns shares of and has recommended Amcor Limited and Challenger Limited. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended Sonic Healthcare 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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