When investing in times of economic uncertainty like now, it can help to think of the brands you use on a day-to-day basis.
If you and millions of Australians are already regularly using the products and services, that demand may well remain resilient even as consumers have less to spend.
Spotee chief executive Chris Batchelor this week nominated two ASX shares he would buy that fit this description:
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You've likely watched, read or listened to this company
Yes, we know many people don't watch linear television anymore.
But Nine Entertainment Co Holdings Ltd (ASX: NEC) has so many tentacles, the chances are most Australians have run into their services each day in some way or another.
"Nine's diversified media business comprises television, newspapers, radio and streaming services," Batchelor told The Bull.
"It also owns 55% of real estate advertising business Domain Holdings Australia Ltd (ASX: DHG)."
Those non-TV assets include big names like The Sydney Morning Herald, The Age, 2GB and 3AW.
Any company that relies on advertising for revenue is exposed to the whims of the economic cycle. However, Batchelor feels like Nine is partially insured against that.
"The company's diversity leaves it cushioned to the volatile advertising industry," he said.
"The company appeals, as it's trading on an undemanding price-earnings ratio and an attractive dividend yield."
Indeed Nine Entertainment shares are currently paying out a yield of 6.27% while trading at a PE multiple of 17.
The stock has fallen by about one-third so far this year, although it is up 10% since mid-June.
You've likely submitted a throat swab to this company
While Australian Clinical Labs Ltd (ASX: ACL) may not be a name that rolls off the tongue for every Australian, its services have been keenly used in the background in recent years.
"The pathology services provider benefited from providing testing services during the pandemic," said Batchelor.
"COVID-19 revenue grew by 205% in fiscal year 2022, while non-COVID-19 revenue grew by 8%."
The analyst admitted the coronavirus boom would not last, but that didn't affect his positive view on the stock.
"The forward price/earnings ratio and dividend yield paint a bright outlook," he said.
"COVID-19 revenue is expected to decline from here, but this has been factored into expectations."
Similar to Nine, ACL shares have also dropped by about a third year-to-date. It's paying out a stunning dividend yield of 12.56%, while trading at a 4.77 PE ratio.
The wider professional community is somewhat polarised on Australian Clinical labs.
According to CMC Markets, six analysts are divided into three groups of two rating the stock as strong buy, hold and strong sell respectively.
