If you’re approaching retirement, then now might be the time to start focusing on capital preservation and income rather than chasing huge gains.
But which shares should you buy? Two ASX shares that could be great additions to a well-balanced retirement portfolio are listed below. Here’s why they are being tipped as buys:
Coles Group Ltd (ASX: COL)
This leading supermarket operator has been a very positive performer this year. Due to the pandemic, Coles has experienced a surge in demand from consumers, leading to a notable jump in sales and profits.
For example, in FY 2020 the company reported a 6.9% increase in sales to $37.4 billion and a 7.1% lift in net profit after tax to $951 million. Pleasingly, this strong growth accelerated in the first quarter of FY 2021 despite easing COVID restrictions. For the three months ended 30 September, Coles delivered a 10.5% increase in total sales over the prior corresponding period to $9.6 billion.
This was stronger than expected, with analysts at Goldman Sachs predicting first quarter growth of 7.7%. In light of this, the broker retained its buy rating and lifted the price target on the company’s shares to $20.50. The Coles share price is currently trading at $17.94.
Goodman Group is an integrated commercial and industrial property group that owns, develops, and manages industrial real estate across 17 countries. It counts a large number of blue chips as customers such as Amazon, Coles, and Walmart.
It has been a strong performer this year thanks partly to its exposure to quick growing markets such as ecommerce. At the end of the first quarter of FY 2021, the company reported 2.9% like-for-like net property income growth across its managed partnerships. It also revealed a 97.8% occupancy rate across its partnerships and $7.3 billion of development work in progress. The latter was ahead of management’s guidance.
This appears to have impressed analysts at Morgan Stanley. Following its first quarter update, the broker retained its overweight rating and $20.90 price target on its shares. This compares to the current Goodman Group share price of $18.61.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of June 30th
Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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.