If you are 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 the broker has just revealed its favoured picks for the month ahead. It notes that these are the shares that it believes "offer attractive risk-adjusted returns over the long term."
You can read about the first two here. Let's take a look at two more stocks that make the list this month:
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CSL Ltd (ASX: CSL)
The first ASX 200 stock that could be a top buy according to the broker is biotechnology giant CSL.
Bell Potter likes CSL due to its belief that its margins are about to recovery and drive strong earnings growth in the coming years. So, with the company's shares trading at a discount to historical multiples, the broker thinks that this makes now and opportune time for investors to snap up its shares. Bell Potter explains:
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)
A second ASX 200 stock that Bell Potter is bullish on and has on its list this month is Goodman Group. It is a leading integrated industrial property company that has been growing at a solid rate for many years.
Bell Potter believes this positive run can continue for the foreseeable future thanks to its "clearly-defined strategy." In addition, the broker sees Goodman as a big winner from the artificial intelligence megatrend thanks to its data centre developments. 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.
