When it comes to deciding which ASX shares are the best to buy right now, we investors sometimes get to cheat a little.
Some of the top brokers in the world regularly publish buy recommendations. These recommendations aren't always right of course. But no one is when it comes to the share market.
So if you're searching for the best ASX shares to buy today, here are 3 recent recommendations:
Qantas Airways Limited (ASX: QAN)
Qantas is a company we'd all be familiar with. We're all also probably aware of the difficulties this company has faced in 2020.
As an airline, Qantas had to adapt very quickly to a very challenging disruption to its entire business model. However, unlike its rival Virgin Australia, the company was able to keep afloat during the worst months of the coronavirus pandemic.
Today, things are looking up for Qantas, despite some less-than-savoury recent news. Last week, the company announced that its budget brand Jetstar will exceed pre-COVID flight levels within 3 months.
Broker Goldman Sachs is bullish on Qantas. It reiterated its 'buy' recommendation on Qantas shares with a 12-month price target of $7.05, implying upside of more than 45% on current prices.
Domino's Pizza Enterprises Ltd (ASX: DMP)
Unlike Qantas, Domino's Pizza was an actual beneficiary of the pandemic. It makes sense if you think about it. Many people do like to order pizza when they are in lockdown.
Back in August, Domino's reported that its network sales were up 12.8% year on year to $3.27 billion. Online sales did even better, rising by 21.4% to $2.36 billion. Domino's also told investors that its earnings before interest and tax (EBIT) grew by 3.6% to $228.7 million and free cash flow increased by 90.7% to $161.9 million in FY2020.
Goldman Sachs hasn't failed to notice these positive trends. It recently upgraded its recommendation to 'buy' with a 12-month price target of $88 a share.
Xero Limited (ASX: XRO)
Finally today we have cloud accounting software company Xero.
Xero has been an absolute beast share in 2020, with the Xero share price up more than 83% year to date, and up almost 150% since 23 March. Again, the pandemic has arguably helped Xero more than hindered it.
Last month, Xero provided a half-year update for the 6 months to 30 September. It told investors that over that time, revenues grew by 21%, and subscribers by 19%. Xero's earnings were turbocharged by these numbers, up 86% over the period. That has helped Xero to reach new all-time highs in recent weeks.
But Goldman Sachs doesn't think the stock has run its course just yet. It has recently slapped Xero with another 'buy' recommendation, with a 12-month price target of $157 a share. If Xero reaches that target, it would be another new all-time record for this tech star.
