'Start building a position': 3 ASX shares to pounce on right now

Inflation and interest rates might be on everyone's minds this week, but experts reckon this trio is looking good no matter what happens.

| 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

The stock market this week is waiting eagerly for Australia's latest inflation figures.

If it comes down more than what the Reserve Bank last forecast, then consumers, businesses and investors alike will breathe a sigh of relief.

That's because the chances of an interest rate pause next week will firm considerably.

However, there are just some ASX shares that are well set for future gains regardless of what economic manoeuvring happens over the next few days.

They have their own thing going on.

Here are three such examples that experts are recommending to buy right now:

A player pounces on the ball in the scoring zone of the field.

Image source: Getty Images

Overnight fame after 112 years of anonymity

Pharmaceutical wholesaler Sigma Healthcare Ltd (ASX: SIG) was hardly a household name for ordinary investors for much of its 112-year-old existence.

That all changed last month when it announced it would merge with ubiquitous retail chain Chemist Warehouse.

In just a fortnight, the Sigma share price jumped more than 50%.

Morgans investment advisor Jabin Hallihan reckons it's not too late to get a piece of this action.

"A merge will create a healthcare wholesaler, distributor and retail pharmacy franchisor," Hallihan told The Bull.

"The proposed merger may unlock significant efficiencies and generate cost synergies."

Remembering that the reverse listing is pending regulatory approval, Hallihan is calling Sigma a buy.

"We suggest it may be a good time for investors to start building a position in Sigma Healthcare. The merger prospects support our recommendation."

93% drop? No worries at all

In contrast, the Firefly Metals Ltd (ASX: FFM) share price has remained flat since completing its corporate deal in December.

Argonaut dealer Harrison Massey apparently isn't too worried.

"FireFly, formerly known as AuTECO Minerals, completed the acquisition of the Green Bay Copper-Gold project in Newfoundland, Canada, in October 2023. 

"The asset includes a significant ready-to-go underground copper deposit, which, in our view, offers considerable upscale potential amid a history of high-grade copper production."

The deal also included existing infrastructure.

"The recent resource is 39.2 million tonnes at 1.83% copper and 0.5 grams a tonne of gold."

It seems he's not the only one bullish on Firefly.

According to CMC Invest, three other trading houses also rate the stock as a strong buy.

The ASX shares going at 'a significant discount"

Fellow miner South32 Ltd (ASX: S32) has also had its issues with its valuation.

The stock has lost 28.8% over the last 12 months, and recorded a 6.6% drop over the past fortnight.

Hallihan attributed this to "a soft operational result in the 2023 December quarter", but is still bullish on the multinational resources company over the longer run.

"We believe the share price was recently trading at a significant discount to its valuation," he said.

"We expect a stronger performance to follow an anticipated recovery in Chinese and global growth and metal prices."

He has plenty of peers that agree, with 10 out of 15 analysts currently recommending South32 as a buy, as surveyed on CMC Invest.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Investing Strategies

Person handing out $100 notes, symbolising ex-dividend date.
Dividend Investing

Are Woolworths shares a good buy for passive income?

The supermarket giant's shares have been volatile this year but its defensive nature means it can still pay a dividend…

Read more »

Parents putting money in piggy bank for kids' future.
Blue Chip Shares

My 3 best ASX 200 blue-chip shares to buy in June

June could be a good month to look again at high-quality ASX 200 shares with scale, strong brands, and room…

Read more »

A man closely watches a clock.
Dividend Investing

15 ASX shares going ex-dividend before EOFY

Champion Iron, Select Harvests, and Tower are among the ASX shares with ex-dividend dates in June.

Read more »

Person pointing finger on on an increasing graph which represents a rising share price.
Growth Shares

2 ASX shares that I rate as buys today for both growth and dividends

These businesses have an incredible future ahead of them.

Read more »

Red buy button on an Apple keyboard with a finger on it.
Growth Shares

2 ASX shares highly recommended to buy: Experts

These businesses have excellent growth potential!

Read more »

Increasing white bar graph with a rising arrow on an orange background.
Growth Shares

2 ASX growth shares to buy now while they're on sale

These businesses look like unmissable buys!

Read more »

A bemused woman holds two presents of different sizes and colours and tries to make a choice.
Dividend Investing

Forget BHP shares! Buy these ASX dividend shares instead for passive income

I’d much prefer to buy these stocks rather than BHP for dividends.

Read more »

Animation of a man measuring a percentage sign, symbolising rising interest rates.
Dividend Investing

Forget term deposits and buy these ASX dividend shares in June

Let's see why these shares could be top options for income investors.

Read more »