Looking for quality ASX 200 shares to buy right now?
Although from very different industries, both companies are dominant in their operating markets. I also believe they both have strong, long-term growth prospects. As such, I feel they are well positioned for above average share price growth over the next five years.
Ansell has proven to be one of Australia’s most successful companies for over a century. The company manufactures gloves and personal protective equipment for industrial and medical markets and its operations are underpinned by a strong research and development program.
Ansell has been experiencing very strong demand for some of its products during the coronavirus crisis. As revealed in a recent business update, sales of the company’s hand and body protection products have been extremely strong throughout the pandemic. These ranges of products are industry certified for protection against infections and viruses such as COVID-19. This robust demand during the pandemic has helped push the Ansell share price higher over the past few months.
Ansell has broad geographic diversity with sales operations across more than 50 countries. The company also has a number of new product lines that position it well for continued growth over the next few years. An increasing proportion of sales are being generated in emerging markets which, I believe, also strengthens Ansell’s growth prospects.
Ansell pays a forward annual dividend yield of 2.05%. In its latest business update, Ansell reiterated its FY 2020 earning per share guidance in the range of US112 cents to US122 cents.
The Sydney Airport share price has fallen by over 30% since mid-January. This is not surprising due to the sharp fall in traffic numbers resulting from government enforced travel restrictions. In its April traffic performance update, Sydney Airport revealed that total passenger traffic in April was down by 97.5%, compared to April 2019.
Notwithstanding this, I believe the company’s share selloff has been a bit overdone. As such, I feel this ASX 200 share could provide patient investors who have long-term investment horizons with a good buying opportunity.
In addition, the overall impact of coronavirus in Australia looks set to be less severe than first anticipated. Therefore, it appears likely the length of the lockdown period will be shorter than initially expected. This will hopefully see domestic passenger numbers start to pick up significantly in the months ahead. While it will take longer for international passenger numbers to pick up, they will eventually recover.
I believe Sydney Airport remains well positioned for strong growth over the next decade. It has a monopoly status in its market. Furthermore, once the COVID-19 crisis is over, I’m confident the long-term trend of rising passenger numbers driven by a rising population and growing tourism will continue.
For more long-term growth opportunities like Ansell and Sydney Airport, check out the following report.
5 stocks under $5
We hear it over and over from investors, "I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I'd be sitting on a gold mine!" And it's true.
And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!
*Extreme Opportunities returns as of June 5th 2020
Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ansell Ltd. 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.
- 3 quality ASX shares for a beginner’s share portfolio – August 8, 2020 9:30am
- Earnings: News Corp share price up 5% today despite posting major loss – August 7, 2020 11:31am
- 2 of the best online shopping ASX shares to buy in August – August 5, 2020 12:09pm