As interest rates rise, it gets harder to find the right ASX shares to buy.
This is because Australians will lock away their wallets and spend more selectively in the coming months. Less money to go around means fewer businesses will be able to continue their path of growth.
To help investors figure out what to buy in such a discriminating environment, two experts have picked out three ASX shares that they think will prove resilient even as consumers retreat:
'Top-flight performance' from flightless birds
Fat Prophets chief executive Angus Geddes likes the look of Collins Foods Ltd (ASX: CKF) at the moment.
"The KFC operator delivered strong revenue and net profit growth in fiscal year 2022 after successfully navigating COVID-19 lockdowns and growing inflationary pressures," he told The Bull.
"Growth in new stores and increasing same store traffic delivered the top-flight performance."
Spotee Connect executive chair Elio D'Amato also picked Collins Foods shares as a buy last week.
"It grew group revenue by 11.1% on last year's prior corresponding period. Earnings per share grew by 24.9% and its fully franked dividend was up by 17.4%."
For Geddes, it's not just the short-term prospect of Australians turning to fast food during an economic downturn.
"Collins Foods has the right ingredients to deliver strong performances over the longer term."
'A value buying opportunity'
The travel industry is dealing with such huge demand that airlines and airports are feeling the unreserved wrath of the public for lengthy queues and delays.
Considering this, Baker Young managed portfolio analyst Toby Grimm reckons the current share price for Corporate Travel Management Ltd (ASX: CTD) presents a golden entry point.
It's fallen from $26.25 at the end of April to a Thursday closing price of $19.02.
"The business and leisure travel sector is expected to gradually recover to pre-pandemic levels," he told The Bull.
"We believe a value buying opportunity exists, as we expect the stock to outperform in the medium term. The company is well managed."
According to CMC Markets, seven out of 11 analysts recommend Corporate Travel shares as a buy.
A tech stock that's gained 43% in July
Technology stocks have been on the nose all year, but Geddes has faith in Praemium Ltd (ASX: PPS).
"The board has resolved to return about $50 million to shareholders via a special dividend and on-market buyback."
Geddes also likes Praemium's renewed focus.
"This wealth management technology company sold its international operations for £35 million," he said.
"Praemium will scale up in Australia in a bid to capture a bigger share of the independent advisory services market."
It seems Geddes' peers agree with his conviction. All five analysts surveyed on CMC Markets are rating Praemium shares as a strong buy.
The Praemium share price has lost more than half its value year-to-date, although it has gained a stunning 43% this month.
