If you're in the market for some new ASX 200 stocks in November, 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 two ASX 200 stocks that have just been added to its list. They are as follows:
Eagers Automotive Ltd (ASX: APE)
Bell Potter has added automotive retailer Eagers Automotive to its best ideas list this month.
The broker likes the ASX 200 stock due to its cheap valuation and improving consumer confidence.. It believes the latter bodes well for its earnings growth in the near term. The broker explains:
We now include APE in our preferred domestic panel in the small cap space. APE's earnings forecasts look conservative in a backdrop of improving consumer confidence and lower rates in CY25. We expect earnings upgrades over the course of the next 12 months, driving the share price higher. APE currently trades on a 12 month forward P/E of ~13x, below its 10 year average of ~16x and looks attractive at current levels and therefore looks good value. If management can execute on its margin expansion initiatives, we expect the stock to rerate substantially.
The broker has a buy rating and $13.00 price target on its shares.
JB Hi-Fi Ltd (ASX: JBH)
Another ASX 200 stock that has been added to its panel in November has been retail giant JB Hi-Fi.
The broker believes that the market is being too conservative with its near term earnings growth estimates and expects the company to outperform. In light of this, it feels that its shares deserve to trade on a premium valuation. It said:
We now include JB Hi-Fi in our preferred domestic panels. JBH consensus earnings forecasts for FY26 and FY27 look too conservative given the outlook of lower interest rates, real wage growth and tax cuts, with earnings growth of 4.3% and 3.9%, respectively. We therefore expect earnings upgrades to provide further share price upside. JBH is currently trading at ~20x on a 12 month forward P/E, which we think is justified by the high-quality earnings base and when considering that the market is still conservative on the future earnings growth.
The broker has a buy rating and $87.00 price target on its shares.
