2 top ASX 200 shares that might be buys today

Wesfarmers is one of the ASX 200 shares that could be worth owning today….

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The S&P/ASX 200 Index (ASX: XJO) shares in this article might be good considerations to think about today.

Businesses in the ASX 200 are often among the biggest and strongest in their industry.

The two investments below are ones that may be able to deliver growth over the long term:

Wesfarmers Ltd (ASX: WES)

Wesfarmers is a diversified business that has been operating for decades. It has some market-leading retailers including Bunnings, Kmart, Officeworks, and Catch. The ASX 200 share also has other operations including Target, a lithium project, and various industrial businesses and investments.

The business showed how much essential consumer demand there is for its businesses including Bunnings, Officeworks, and Catch. Wesfarmers was able to capitalise on the COVID-19 era demand.

While people aren’t doing as many home projects or buying home office equipment, Wesfarmers is still experiencing higher demand than pre-COVID times.

It’s regularly adding to its portfolio to diversify its future profit. For example, Bunnings bought Beaumont Tiles. Wesfarmers is progressing with its Mt Holland lithium project. The latest attempt by the company is to try to buy Australian Pharmaceutical Industries Ltd (ASX: API). It’s in a battle with Sigma Healthcare Ltd (ASX: SIG) for API.

Wesfarmers says while it plans to invest in the API business, it would also provide the basis of a new healthcare division of Wesfarmers and a platform from which to invest and develop capabilities in the growing health, wellbeing, and beauty sector.

According to Commsec, it is valued at 30x FY22’s estimated earnings with a projected grossed-up dividend yield of 4.3%.

Fortescue Metals Group Limited (ASX: FMG)

Fortescue is one of the largest iron ore miners in the world.

Citi is one of the brokers that currently rates Fortescue as a buy, with a price target of $18.50. That implies a potential rise of close to 30% over the next year, if the broker is right.

The Fortescue share price is now a lot lower after a sharp decline in the iron ore price. The ASX 200 share has seen a decline of around 40% over the last three months.

Fortescue continues to produce enormous amounts of iron ore. In the first quarter of FY22, Fortescue shipped 45.6mt of iron ore, which was a 3% increase compared to the same period last year.

The average revenue was US$118 per dry metric tonne, while the C1 cost was US$15.25 per wet metric tonne (in line with the previous quarter).

Fortescue is making a number of headlines with its Fortescue Future Industries (FFI) division.

The goal of the ASX 200 share is for FFI is to take a global leadership position in the renewable energy and green products industry. It has a vision of making green hydrogen the most globally traded seaborne commodity in the world.

One of the key developments relates to the planned construction of the global green energy manufacturing centre in Gladstone, Queensland. The first stage of development is an electrolyser factory with an initial capacity of two gigawatts. It has also signed a letter of intent with Plug Power for a joint venture with the two-gigawatt electrolyser factory, with the ability to expand into fuel systems and other hydrogen-related refuelling and storage infrastructure in the future.

Fortescue Future Industries has also signed an agreement with JCB and Ryze hydrogen to become the UK’s largest supplier of green, renewable hydrogen. JCB and Ryze will purchase 10 per cent of FFI’s global green hydrogen production.

Should you invest $1,000 in Wesfarmers right now?

Before you consider Wesfarmers, you'll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Wesfarmers wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

Motley Fool contributor Tristan Harrison owns shares of Fortescue Metals Group Limited. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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