If you're looking to invest $1,000 into the Australian share market, then there are a lot of quality options for investors to choose from.
To narrow things down, I have picked out two ASX 200 shares that I think would be smart choices for investors. Here's why I like them:
Aristocrat Leisure Limited (ASX: ALL)
I think Aristocrat Leisure would be a great place to invest $1,000 right now. Especially with its shares down 35% from their 52-week high. While a pullback in its share price has not been unwarranted considering the negative impact of the pandemic on its business, I think the selloff has been overdone.
Aristocrat Leisure's shares are currently changing hands at 21x estimated FY 2021 earnings. I think this is great value given its very positive long term outlook. This is thanks to its leading pokie machine business and its lucrative digital business which is generating significant recurring revenues from its millions of daily active users. Combined, I believe they will underpin solid earnings growth over the next decade.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Another ASX share which I think investors ought to consider investing $1,000 into is Domino's. I believe the pizza chain operator is one of the best buy and hold options on the Australian share market. This is thanks to its positive long term outlook due to its expansion plans and management's same store sales targets.
Over the next five years Domino's is aiming to deliver annual same store sales growth of 3% to 6% and annual organic new store additions of 7% to 9%. And while there is a risk that new store openings will suffer during the pandemic, I'm confident the company will soon catch up with its target. Overall, I expect this winning combination of organic and inorganic growth to underpin strong earnings growth over the next decade.
