Everyone needs to eat: Expert flags 2 ASX shares to buy now

Fruit, vegetables and housing. It doesn't matter what wars are being fought, how much interest rates rise — Australians need these essentials.

| More on:
a family has an outdoor table set up, laden with food, as they prepare for a meal outside on the grass with their home in the background.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The market has been up and down this year, but one thing is for certain — uncertainty.

There is no shortage of guesses — but no one really knows how the war in Ukraine will turn out, nor how the economy and the share market will cope with multiple interest rate rises.

In such volatile times, it's not such a bad idea to invest in ASX shares that provide the essentials of life.

If companies provide products and services people can't live without, then at least you don't have to worry about waning demand.

Here are a couple of such stocks Wilsons investment advisor Peter Moran currently rates as buys:

'Outlook is improving'

Fruit and vegetable supplier Costa Group Holdings Ltd (ASX: CGC) has seen its shares rise more than 13.7% over the past month.

Moran isn't surprised, with his team recently upgrading the stock to "overweight".

"The outlook is improving for Australia's biggest grower and marketer of fresh fruit and vegetables," he told The Bull.

"Positive catalysts include increasing table grape exports and higher domestic pricing in the key categories of mushrooms, blueberries and tomatoes."

There are some handy foreign tailwinds too.

"The international business is benefiting from increasing demand from China and from supply issues for competitors based in Chile."

Costa Group shares also give out a tidy 2.65% dividend yield.

It seems Moran is not the only one bullish on Costa. According to CMC Markets, 10 out of 13 analysts rate the stock as either "strong buy" or "moderate buy".

'Well-positioned to compete'

As well as eating vegetables and fruit, Australians also need somewhere to live.

That's where Moran's recommendation of Resimac Group Ltd (ASX: RMC) shares comes in.

"Resimac is one of Australia's largest non-bank financial lenders," he said.

"The company's [flexible] and attractively-priced loans have resulted in solid loan origination growth in recent years."

Believe it or not, Moran rates Resimac as a buy despite expecting a financial downgrade in the short term.

"The lending environment is competitive and we expect a slight decrease in profitability for the current financial year," he said.

"However, Resimac is well-positioned to compete in this environment and we expect profit growth to resume next financial year. We hold an overweight recommendation."

Analyst coverage on the $680 million company is sparse. CMC Markets shows just one other fund manager other than Wilsons also rating it as a buy.

The share price has dipped 11.6% for the year so far.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended COSTA GRP FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Broker Notes

Two smiling work colleagues discuss an investment or business plan at their office.
Broker Notes

Which beaten down ASX 200 share did Goldman Sachs just upgrade to a buy rating?

The broker has become more bullish on this stock following last week's update.

Read more »

A young female investor sits in her home office looking at her ipad and smiling as she sees the QBE share price rising
Broker Notes

3 ASX shares brokers tip for significant outperformance in FY 2025

Leading brokers expect some significant outperformance from these three ASX shares.

Read more »

Broker looking at the share price on her laptop with green and red points in the background.
Broker Notes

Brokers name 3 ASX shares to buy now

Here's why brokers are feeling bullish about these three shares this week.

Read more »

A group of businesspeople clapping.
Broker Notes

Guess which ASX 50 stock can rise 20%+ and offers a 5%+ dividend yield

Goldman Sachs is tipping this blue chip as a top buy.

Read more »

A woman frowns and crosses her arms.
Bank Shares

40% downside! Broker values CBA shares at $80 — is the fun over?

Valuations remain the top concern among brokers.

Read more »

Two brokers analysing stocks.
Broker Notes

Citi names these 3 ASX shares to buy now

Here are the latest upgrades from Citi.

Read more »

Businessman with hands on hips looks at share price chart with the words 'buy' and 'sell '
Broker Notes

Top brokers name 3 ASX shares to buy today

Here's what brokers are recommending as buys this week.

Read more »

A male investor sits at his desk looking at his laptop screen holding his hand to his chin pondering whether to buy Macquarie shares
Broker Notes

Brokers say buy! 3 ASX shares receiving upgrades today

The experts say these ASX shares look like good buys today.

Read more »