I don't know if you've realised, but there are a lot of ASX shares.
In fact, there are more than 2,000 of them all seeking to get their hands on your money, according to finance expert Bob Kohut.
"Selecting the best ASX stocks from such a large pool can be a formidable challenge," Kohut told The Bull.
Even the qualifier "best" is also problematic, although Kohut reckons there is a universal quality that it could refer to.
"'Best' is a subjective term, but all investors can agree that there is one standard that makes an ASX stock a potential best buy: profit growth."
Considering the difficulties in choosing stocks to buy from such a massive pool and the criteria for selection, investors might turn to some expert opinion.
But then the sheer diversity of views among that community is also confusing. An S&P/ASX 200 Index (ASX: XJO) stock that's gold to one could be rubbish to another.
To combat all these concerns, Kohut set about looking for the best ASX shares to buy according to the collective opinion of the analyst population.
Here are three he came up with after dissecting the buy-hold-sell surveys:
Image source: Getty Images
This big company does make big moves
Healthcare giant CSL Limited (ASX: CSL) is currently "a strong contender for a spot on any best ASX shares to buy list".
"Two analysts have a strong buy recommendation, seven have a buy recommendation, with one at hold and one at underperform," said Kohut.
"Analysts at Citi and Morgan Stanley both see double-digit growth for the share price – 22% out of Citi and 19% from Morgan Stanley."
The biotech behemoth continues to defy conventional wisdom that "big companies don't make big moves".
"The market for CSL's blood plasma treatments and influenza vaccines has multiple tailwinds propelling the stock that other large cap stocks can only dream of," said Kohut.
"The company invests heavily in R&D (research and development), with multiple non-plasma products in its pipeline to promote growth."
Fixing 'life's essentials' while competitor is removed
Another health company, Resmed CDI (ASX: RMD), makes its living providing equipment to assist "two of life's essential functions – breathing and sleeping".
"British journal The Lancet Respiratory Medicine reported [a] startling estimate of one billion people between the ages of 30 and 69 affected by obstructive sleep apnoea, suggesting that the condition is both 'under-recognised and underdiagnosed'."
However, ageing, obesity, and growing life expectancies are not ResMed's only tailwinds.
"ResMed's primary competitor – Koninklijke Philips NV (AMS: PHIA) Respironics – is in the midst of a product recall."
Kohut added that both ResMed and CSL are considered "inflation proof".
"Both have high-demand products with the power to raise prices without cutting into demand, as Medicare and private insurance are the payers, not the end consumer."
Cash burner becomes profit maker
The third pick, which is in a vastly different business, is data centre operator NextDC Ltd (ASX: NXT).
After taking a hammering during the 2022 tech sell-off, the stock has risen almost 22% so far this year.
"The company posted losses in FY2019, FY2020 and FY2021 before turning profitable in FY2022, while increasing revenue in each year."
Kohut noted Goldman Sachs recently added the stock to its conviction buy list.
"Four of the 10 analysts covering the company have strong buy recommendations, and the remaining six recommending investors buy shares of NextDC," he said.
"Not a single analyst has a hold, underperform or sell recommendation."
