If you're in the market for some new ASX 200 stocks in October, then it could be worth listening to what analysts at Bell Potter are saying.
That's because they have just revealed their favoured picks for the month ahead. The broker notes that these are the shares that it believes "offer attractive risk-adjusted returns over the long term."
In addition, Bell Potter points out that when identifying its picks, it considers the current macro-economic backdrop and investment environment, focusing on quality companies with proven track records, capable management, and competitive advantages.
With that in mind, let's look at three ASX 200 stocks that make the list this month:
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BHP Group Ltd (ASX: BHP)
Bell Potter is feeling bullish about mining giant BHP and sees it as an ASX 200 stock to buy.
This is due to its exposure to copper, which Bell Potter is very positive on, and further Chinese stimulus measures. It explains:
BHP presents an attractive investment proposition, providing exposure to both copper and the potential upside from further Chinese stimulus measures. BHP is one of the top three global producers of copper and has the largest copper endowment of any company globally. BHP operates the Escondida mine in Chile, where they have a 57.5% ownership stake.
CSL Ltd (ASX: CSL)
Another ASX 200 stock that gets the thumbs up from Bell Potter is biotherapeutics giant CSL.
It likes the company due to its positive margin outlook, which it expects to underpin above-average earnings growth over the coming years. And with its shares trading at a discount to historical averages, it sees now as a good time to pounce. The broker said:
CSL presents an attractive buying opportunity as we anticipate the start of a margin recovery phase for CSL, driving above-market earnings growth over the next few years. CSL trades at a 12-month forward PE of ~28x, representing a discount to its 10-year average of ~31x. Furthermore, the company will continue to deleverage the balance sheet over the next few years. Given the company's proven quality and growth prospects, we believe significant upside remains.
Goodman Group (ASX: GMG)
Finally, Bell Potter also has Goodman on its favoured list this month.
It highlights the industrial property company's strong growth outlook as a reason to buy. This positive outlook is being underpinned partly by the artificial intelligence boom. It explains:
Goodman is a well-run business with good long-term growth prospects and a clearly-defined strategy. Goodman is developing in a strong global developer of datacentres which is a key beneficiary from the rising demand of artificial intelligence. This is supported by a strong portfolio and development capability in warehouses and industrial space. We see potential for GMG's earnings to continue to grow at mid-single digit to low-double digits as it captures the significant rental upside to market, as well as via ongoing development activity.
