'Strong demand': The 2 ASX 200 shares to pounce on right now

The stock market has plunged in recent weeks after a buoyant January. Here's a pair to buy for cheap.

| More on:

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

After a strong start to 2023, the S&P/ASX 200 Index (ASX: XJO) has now fallen almost 4% since 8 February.

That means there could be some bargains to be bought during this particular dip.

Here are two buy suggestions from the experts this week:

A black cat waiting to pounce on a mouse.

Image Source: Getty Images

'One of the most innovative companies'

It has not been a pleasant ride for those who hold shares in US payments giant and Afterpay owner Block Inc CDI (ASX: SQ2).

The share price has plummeted a shocking 43.5% over the past 12 months, as the market has abandoned fintech stocks like it was a burning building.

However, Sequoia Wealth senior wealth manager Peter Day rates it as a buy at its current price.

"The share price of this buy now, pay later provider can be rapidly volatile in either direction," Day told The Bull.

"We view Block Inc as one of the most innovative companies in payments."

He admitted that those buying Block shares need to have the stomach for wild fluctuations in stock price.

"The stock suits investors with an appetite for risk," said Day.

"On March 22, the shares closed at $115.15. On March 24, the stock closed at $88.94. The shares were trading at $99.28 on March 30."

17 out of 18 analysts can't be wrong?

Despite an outstanding year for the energy sector in 2022, Seneca Financial Group investment advisor Tony Langford is bullish on Santos Ltd (ASX: STO) for this year.

"Production is forecast to grow, as demand for products is expected to remain strong."

He noted Santos' pleasing reporting season figures.

"The energy giant reported a full year 2022 net profit after tax of US$2.112 billion, up 221% on the prior corresponding period," said Langford.

"Free cash flow of US$3.641 billion was up 142%. Gearing was reduced to 18.9%. Higher oil and LNG prices contributed to the result."

For an energy giant, the Santos share price hasn't lit the world on fire over the past 12 months, actually falling more than 10%.

This mediocrity could point to a golden buying opportunity.

Quite a few of Langford's peers agree. According to CMC Markets, a remarkable 17 out of 18 analysts currently rate Santos as a buy.

Motley Fool contributor Tony Yoo has positions in Block. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Block. The Motley Fool Australia has positions in and has recommended Block. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

ETF in grey and exchange traded fund in blue.
Broker Notes

Expert names 2 top ASX ETFs to buy today

A leading analyst expects these two ASX ETFs are well-placed to outperform.

Read more »

A businessman lights up the fifth star in a lineup, indicating positive share price for a top performer
Broker Notes

Bell Potter names the best ASX shares to buy in August

These could be the best of the best according to the broker.

Read more »

three excited doctors with hands in the air
Broker Notes

Buy, hold, sell: Super Retail, APA, Sonic Healthcare shares

As earnings season continues, brokers have issued new ratings on these 3 ASX 200 shares.

Read more »

A woman in a red dress holding up a red graph.
Broker Notes

3 ASX shares UBS says will return better than 36%

These three companies have big things ahead, according to UBS.

Read more »

Young successful engineer, with blueprints, notepad, and digital tablet, observing the project implementation on construction site and in mine.
Broker Notes

Up more than 200% over a year, could this ASX lithium company double again?

The potential upside on these shares might surprise.

Read more »

Broker written in white with a man drawing a yellow underline.
Broker Notes

Buy, hold, sell: Fortescue, Northern Star, and Megaport shares

Morgans has updated its views on these shares.

Read more »

Man with his hand on his face reading a letter with bad news in it.
Broker Notes

Why were Goodman shares just downgraded?

Bell Potter has cut its rating on the industrial property company.

Read more »

Cheerful smiling businesswoman sitting on a chair and typing business report on a laptop keyboard.
Broker Notes

Broker puts fresh buy ratings and tips 36% upside for these earnings results winners 

These two shares have received upgraded outlooks.

Read more »