This month has been brutal for anyone who owns S&P/ASX 200 Index (ASX: XJO) shares.
The market has plunged 8.4% since 4 January as fears in the US spilled over to Australia.
In scary times like these, many people find comfort in old reliable names.
A business that’s passed the test of time and has large market share, some argue, can better resist headwinds like inflation and rising interest rates.
As such, here are 3 ASX shares experts are recommending to buy at the moment that are household Australian brands:
You’ve done it again
Electronics and appliances retailer JB Hi-Fi Limited (ASX: JBH) is ubiquitous around Australia.
This ASX share was a major beneficiary during COVID-19 lockdowns as people sought to make their homes more interesting and productive.
But as Australia shifted to post-vaccination lives over the past 6 months, the retailer’s shares have lost around 9%.
Catapult Wealth portfolio manager Tim Haselum reckons JB Hi-Fi could be a bargain right now.
“We’re expecting JB Hi-Fi earnings to marginally weaken, but from a high base. The market has priced in a bigger sales fall than we anticipate,” he told The Bull.
“JB Hi-Fi has a strong track record of performance and we expect that will continue in the longer term.”
Haselum did acknowledge higher interest rates could dampen consumer spending, but in Australia this is not expected in the short term.
JB Hi-Fi shares closed Tuesday at $45.75, down 2.26% on the day.
“The shares have traded higher than $50 in the past year,” Haselum said.
I still call Australia home
The chaos brought on from the Omicron variant has brought the travel industry to its knees, just when conditions were starting to look good.
Ord Minnett senior investment advisor Anthony Paterno noted that Qantas Airways Limited (ASX: QAN) has been forced to reduce its capacity.
“Domestic capacity in the 2022 third quarter is expected to represent about 70% of pre-COVID-19 levels. International capacity is expected to represent about 20% of pre-COVID-19 levels.”
But this would not put him off snapping up Qantas shares.
“We remain positive about a domestic leisure-led recovery, a prevailing rational domestic market, and strong loyalty earnings.”
The Qantas share price closed Tuesday at $4.66, down 3.32%. It has been as high as $5.97 in the past 52 weeks.
TPG Telecom Ltd (ASX: TPG) owns some of the most recognisable internet and mobile brands in the country.
Vodafone, iiNet, AAPT, and, of course, TPG itself all live under the umbrella.
Its shares have fallen more than 21% over the past 12 months though, as all the players outside of Telstra Corporation Ltd (ASX: TLS) learnt to coexist in a highly commoditised industry.
But Paterno feels this ASX share offers enough that it’s a tempting post-COVID buy at the moment.
“The company’s international brand attracts immigrants and travellers. Its competitive roaming offer for Australians travelling overseas is another positive,” he said.
“We expect subscriber growth and improving mobile pricing as international borders re-open.”
TPG shares closed Tuesday 1.82% lower at $5.94.
“With the balance sheet rapidly deleveraging amid free cash flow yield forecasts of 7% in calendar year 2023 and 8% the following year, we see scope for higher capital returns.”