Transurban and 1 other ASX 200 share to buy right now

Here we look at two quality ASX 200 shares to add to your portfolio right now: Transurban Group and Domino's Pizza Enterprises Ltd.

With bank interest rates and term deposits at record lows, and unlikely to grow much over the next five years, I believe that investing in ASX 200 shares is a great strategy to grow your long-term wealth. Unlike term deposits, ASX shares including dividends have returned around 9% to 10% per annum on average over the past few decades. 

On that note, let's take a look at two of my top ASX 200 share picks right now: Transurban Group (ASX: TCL) and Domino's Pizza Enterprises Ltd. (ASX: DMP).

asx buy

Image source: Getty Images

Transurban

Transurban has grown to become one of the world's largest toll-road operators, particularly in its home market of Australia. The company owns a virtual monopoly on Sydney and Melbourne toll roads with a number also in Brisbane. In addition, Transurban manages and develops toll-roads in North America.

From mid April up until late June, Transurban reported a steady recovery in traffic across its Australian toll roads. This growth was in line with the gradual lifting of coronavirus lockdown restrictions. However, since that market update, Victoria has now been placed into a second lockdown, which is likely to impact traffic flows over the next six weeks at least.

Despite the short-term challenges faced by Transurban, I believe its long-term future still remains bright. Both Sydney and Melbourne have fast growing populations and road systems that will require additional toll roads in the years to come. Transurban also has an expanding overseas presence.

In addition,  the Transurban share price is still well below its level before the pandemic hit. This in my mind, offers a buying opportunity for investors with a long-term investment horizon.

Domino's

The pizza chain's revenue base has proven to be fairly resilient during the coronavirus pandemic so far. This ASX 200 share revealed in its most recent market update in late April that Australian store sales were generally at levels witnessed prior to the pandemic. Domino's doesn't typically have a sit-down restaurant service. In addition, in-store pick-up by patrons is normally a very quick process, as it is optimised with an online ordering app with accurate pick-up times. Furthermore, Domino's has an extensive home delivery service that has experienced higher demand during the pandemic.

The Domino's share price is currently trading at $71.61 which is close to its 12-month high. However, despite this, it is still in my buy zone. Over the next five years I believe there is still potential for Domino's to grow its global brand and sales base driven by a strong pipeline of future stores to open. In particular, the company's international operations offer significant growth potential across Japan, France, Germany, The Netherlands, Belgium, Luxembourg, and Denmark.

Foolish takeway

Both Transurban and Dominos have very different business models, however both are in my buy zone right now. Both companies have entrenched market positions and, in my opinion, a long runway for growth over the next three to five years.

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. The Motley Fool Australia has recommended Domino's Pizza Enterprises 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.

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