The five ASX shares I’m going to mention in this article are rated as ‘buys’ by several brokers.
It’s quite hard to find businesses that are both good businesses and trading at a good price. Even then, one person might say Commonwealth Bank of Australia (ASX: CBA) and another says that Transurban Group (ASX: TCL) is a better choice.
Investment site MarketIndex regularly collates the ratings of brokers together to assess what the broker community collectively think are opportunities. Of course, this still isn’t a guarantee of success – they could all be herding together.
With that in mind, here are five ASX shares that brokers like:
Aristocrat Leisure Limited (ASX: ALL)
Aristocrat is a gambling machine and gaming business. There are at least 12 analysts who think that Aristocrat is a buy.
The ASX share is being affected by COVID-19 impacts as operators are/were closed for social distancing reasons. However, a lot of venues were due to open between May and July, so things have been improving. In the half-year to 31 March 2020, the class III premium stalled base grew 9.4% and class II grew 1.8%. However, the digital business can continue to perform even if venues are closed.
At the current Aristocrat share price it’s trading at 23x FY21’s estimated earnings.
BHP Group Ltd (ASX: BHP)
BHP is one of the world’s biggest resource businesses. There are at least 13 analysts that think BHP is a buy.
The ASX share has remained robust through this difficult period. Iron ore is been the main reason why the company’s earnings haven’t been affected as much as it could have been. China continues to buy large amounts of the commodity. Brazil’s problems with COVID-19 has affected production and shipments from South America, helping the iron price remain resilient.
Petrol demand is also rebounding as traffic returns to a more normal level around the world.
At the current BHP share price it’s trading at 17x FY21’s estimated earnings.
Bapcor Ltd (ASX: BAP)
Bapcor is the leading auto parts business in Australia and New Zealand. There are at least eight analysts that think Bapcor is a buy.
The ASX share suffered a drop in demand due to COVID-19. But it’s now seeing an even larger increase in demand.
During May and June Autobarn saw same store sales grow by 45% compared to a year ago. Over the past couple of months Burson Trade has seen same store sales growth of 10%.
At the current Bapcor share price it’s trading at 20x FY21’s estimated earnings.
Coles Group Limited (ASX: COL)
Coles is the second largest supermarket business in Australia. It’s rated as a buy by at least 10 analysts.
The ASX share has proven to be resilient during COVID-19 as customers loaded up on various grocery items to see them through the lockdown period.
Coles has a strategy to be the most sustainable supermarket. It’s also working on improving its private label range to attract customers. The solid 5.4% grossed-up dividend yield is a useful bonus to owning Coles.
At the current Coles share price, it’s trading at 24x FY21’s estimated earnings.
Crown Resorts Ltd (ASX: CWN)
Crown is the operator of two of the largest entertainment complexes in Australia, Crown Perth and Crown Melbourne. It’s also currently constructing Crown Sydney. Crown is rated as a buy by at least eight analysts.
The improving outlook for COVID-19 in Australia made a return to somewhat normal seem possible. However, COVID-19 is spreading in Victoria, so the outlook doesn’t look as good as it did a week ago.
Crown has unique assets but that alone doesn’t mean it will make strong returns.
Assuming life goes back to normal in FY22, at the current Crown share price it’s trading at 18x FY22’s estimated earnings.
Each of these ASX shares may be decent investments over the long-term. I’m not convinced about Crown considering it relies on large numbers of people and international VIPs for its earnings. I think Bapcor could be a very good buy today, whilst Aristocrat could be also be a good growth share at the current level.
Where to invest $1,000 right now
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia owns shares of COLESGROUP DEF SET and Transurban Group. The Motley Fool Australia has recommended Crown Resorts 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.