No one can rule out a second big sell-off on the S&P/ASX 200 Index (Index:^AXJO), but I think the bigger risk to long-term wealth creation is not buying the dips.
I don't deny that the economic data will get much worse before it gets better as we haven't seen the full impact of the COVID-19 pandemic, but I think it's better to be early than late to this party.
Those hunting for opportunities on the ASX might want to consider these latest buy ideas from leading brokers.
Back on the map
Is Nearmap Ltd (ASX: NEA) the most misunderstood stock in the tech sector? Shares in the mapping technology company have shed a third of its value since the start of 2020.
But the coronavirus may not have as big an impact on the company and Macquarie Group Ltd (ASX: MQG) is reiterating its "outperform" recommendation on Nearmap following its recent investor presentation.
"The customer base is diverse and typically the larger enterprise customers in less cyclical industries continue to fare better (Government, Insurance, Infrastructure etc)," said the broker.
"A positive update with little impact from Covid-19 to date and confirmation that cash flow breakeven by end of June 2020 is on track."
Macquarie's 12-month price target on the stock is $1.80 a share.
On the shopping list
Another stock that looks oversold in JP Morgan's eyes is shopping centre owner Vicinity Centres (ASX: VCX).
While the company's latest update showed an unsurprising slide in retail sales as shops closed to stem the virus outbreak, the number of operating stores are increasing as Australia loosens social restrictions.
"We believe VCX has been oversold (-45% ytd vs ASX REITs -28%); we recently upgraded it to Overweight and have a $1.80 Price Target," said the broker.
"VCX trades on just 9x FY22E stabilised FFO [funds from operations] and offers a ~10% FY22E DPS yield. We believe its balance sheet can withstand our assumed 30% impairment in asset values."
Good price for good quality
Meanwhile, electronics and whitegoods retailer JB Hi-Fi Limited (ASX: JBH) also provided a pleasing update. UBS reiterated its "buy" rating on the stock after management reported continued growth in like-for-like (LFL) sales.
"While JBH has benefited from increased in-home consumption YTD, we expect LFL growth to moderate/decline in the next 3 quarters," said the broker.
However, with ~90% of JBH's valuation from cash-flow beyond FY21, we believe near term risks are more than priced in."
UBS' 12-month price target on the stock is $40 a share.
