If you’re looking for new additions to your portfolio, then I think the three ASX 200 shares listed below would be great options.
I believe they are amongst the best on offer on the Australian share market and could generate strong returns for investors over the next decade.
Here’s why I rate them as five-star stocks:
a2 Milk Company Ltd (ASX: A2M)
I continue to rate this infant formula and fresh milk company as a five-star stock. I’m a big fan of the company due to its strong and unique brand, its wide margins, and positive long term growth potential. Overall, I believe these have put a2 Milk Company in a position to continue growing its earnings at a solid rate for many years to come. In FY 2020 the company is expecting to deliver another stellar result. The top end of its recently upgraded guidance implies year on year revenue growth of 34.1% and EBITDA growth of 35.4%.
CSL Limited (ASX: CSL)
Another five-star stock to consider is CSL. I think the biotherapeutics giant is arguably the highest quality company that Australia has ever produced and could be a great long term investment. This is thanks to CSL’s world class operations, leading therapies, growing plasma collection network, and its potentially lucrative research and development pipeline. I believe these leave the company well-placed to continue generating strong returns for investors over the next decade and beyond.
Xero Limited (ASX: XRO)
A final five star stock to consider is Xero. I think the leading cloud-based business and accounting software provider is a fantastic long term investment option. This is thanks partly to the quality and stickiness of its product, which has consistently led to Xero’s retention rate remaining sky high. I feel this gives it a great foundation to build on. In addition to this, the company is still only scratching at the surface of its massive market opportunity. I expect further market share gains over the next decade to drive strong earnings growth and returns for investors.
And below is a fourth option that this leading analyst believes is a five-star option. So much so, he is urging investors go all in...
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This under-the-radar ASX recommendation is virtually unknown among individual investors, and no wonder.
What it offers is an utterly unique strategy to position yourself to potentially profit alongside some of the world’s biggest and most powerful tech companies.
Potential returns of 1X, 2X and even 3X are all in play. Best of all, you could hold onto this little-known equity for DECADES to come.
Simply click here to see how you can find out the name of this 'all in' buy alert… before the next stock market rally.
James Mickleboro 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 Xero. The Motley Fool Australia owns shares of A2 Milk. 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.