If you are looking for ASX 200 stocks to buy in March, 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 on its Australian equities panel.
The broker notes that these are the shares that it believes "offer attractive risk-adjusted returns over the long term." It also 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 make the list this month. They are as follows:
Challenger Ltd (ASX: CGF)
This annuities company is a new addition to the broker's Australian equities panel this month.
The broker believes that the ASX 200 stock is well-placed for growth in the coming years thanks to its exposure to Australia's ageing population and growing superannuation balances. It explains:
As the market leader in annuities, is well-positioned to benefit from Australia's ageing population, as retirees increasingly seek stable income sources, and the long-term growth of superannuation balances should further support demand. Additionally, a shift toward longer-dated annuities, which carry higher margins, is expected to drive profitability.
Despite these positives, Bell Potter highlights that its shares are trading with an undemanding valuation. It adds:
Despite a reasonable result, the stock has been unfairly sold off, creating an attractive entry point. Trading at ~9x 12-month forward P/E with a ~5% dividend yield, which should grow in line with ~6% EPS growth over time, CGF presents a compelling value opportunity.
Goodman Group (ASX: GMG)
Another ASX 200 stock that has been added to Bell Potter's Australian equities panel in March is Goodman Group.
It is a specialist global industrial property and digital infrastructure group that owns, develops, and manages high-quality, sustainable properties that are close to consumers and provide essential infrastructure for the digital economy.
Bell Potter feels that a recent pullback has provided investors with an attractive buying opportunity. It explains:
GMG presents an attractive opportunity, particularly following its recent pullback after the capital raise. The company is well-leveraged to data centres, a high-growth sector that is driving a strong future development pipeline at higher margins. As a founder-led business, GMG benefits from experienced leadership with a proven track record of robust EPS growth. Trading at ~25x forward earnings with double-digit earnings growth projected over the next few years, we believe the current valuation offers good long-term value for investors.
