An expert has nominated two ASX shares as a buy, urging investors to take advantage of the market's sentiment at the moment.
Catapult Wealth portfolio manager Tim Haselum suggested this week that it's prudent to buy into S&P/ASX 200 Index (ASX: XJO) stocks possessing qualities that other people are currently seeking.
And with inflation still raging and more interest rate rises to come, the lack of clarity about the economy and consumer demand is paralysing investors at the moment.
"In uncertain times, the market values defensive stocks due to reliable earnings," Haselum told The Bull.
Both dividends and growth: what more could you want?
His first pick is a classic — Australia's dominant telecommunications giant Telstra Corporation Ltd (ASX: TLS).
The share price has cooled off more than 6.6% year-to-date, presenting a decent entry point currently.
"Telstra is a key defensive stock, recently trading on an attractive dividend yield of around 4%," said Haselum.
"According to our analysis, the growth rate is between 4% and 5%."
Haselum mentioned that there are both internal and external drivers that offer "good value" for shares in the mobile and internet provider.
"The company's T25 [reform] strategy appears to be progressing well," he said.
"We should see more international roaming in fiscal year 2023."
Last week The Motley Fool reported that Morgans is also a fan of Telstra as a dividend play.
"Morgans remains positive on Telstra and continues to forecast fully franked 16 cents per share dividends in FY 2022 and FY 2023," wrote James Mickleboro.
"The broker also sees plenty of upside for its shares with its add rating and a $4.56 price target."
Telstra shares closed Monday at $3.92.
'A strong balance sheet and defensive core earnings'
Many analysts favour healthcare as a sector to rely on in case an economic downturn comes around.
At the moment, Haselum favours buying Sonic Healthcare Limited (ASX: SHL).
"The healthcare provider has operations in Australasia, Europe and North America," he said.
"The company offers a strong balance sheet and defensive core earnings. A strong balance sheet enables acquisition opportunities."
The share price has fallen 7.7% since the end of May, opening up a chance to nab a bargain.
"We believe a buying opportunity exists, as the shares have fallen $37.12 on May 30 to trade at $34.35 on July 21."
The Sonic Healthcare stock price closed Monday at $34.45.
The Motley Fool's Tristan Harrison wrote last week that Sonic could be a beneficiary of the current resurgence of the pandemic.
"COVID-19 cases are now increasing, as are hospitalisations, as a third wave of Omicron sweeps across Australia," he reported.
"The Sonic Healthcare share price is attractive because of the ongoing growth of its base business, the ageing demographic tailwinds, continuing COVID-19 testing, a growing dividend, and the ability for the business to keep putting excess cash to good use with acquisitions and share buybacks."
