Got $2,500 ready to invest and wondering where to put it? You're not alone.
With markets constantly shifting and headlines full of noise, finding the right opportunities on the ASX 200 can feel overwhelming.
But the good news is that even a modest amount like $2,500 can go a long way if it's invested in quality companies with strong growth runways and solid fundamentals.
But which ASX 200 shares would be good picks for investors?
Let's take a look at three compelling options that analysts think are buys in May. They are as follows:
Goodman Group (ASX: GMG)
If you're looking for a business that's positioned for the future, Goodman Group is hard to beat.
This isn't your average property stock. It focuses on industrial and logistics real estate — think warehouses, fulfilment centres and (increasingly) data centre infrastructure. These assets are in hot demand thanks to the unstoppable rise of e-commerce, cloud computing, and supply chain modernisation.
With a rock-solid balance sheet, a high-quality tenant base, and a forward-thinking development pipeline, Goodman appears well-placed to continue its strong growth long into the future.
Citi is bullish on Goodman and has a buy rating and $40.00 price target on its shares.
Wesfarmers Ltd (ASX: WES)
For balance and dependability, Wesfarmers is a strong option for that $2,500 investment.
The diversified conglomerate owns household names like Bunnings, Kmart, and Officeworks, and has growing exposure to health, data, industrials, and clean energy investments. It is known for disciplined management, strong cash flow, and a commitment to returning capital to shareholders.
Wesfarmers may not be the fastest mover, but it has a proven track record of delivering shareholder returns through cycles.
Goldman Sachs has a buy rating and $80.40 price target on Wesfarmers' shares.
Xero Ltd (ASX: XRO)
Finally, if you want exposure to the tech sector with global potential, Xero is a standout ASX 200 share to buy.
The cloud-based accounting software company serves over 4 million small businesses around the world and continues to expand internationally. Its recurring revenue model, growing user base, improving margins, and huge total addressable market make it a compelling long-term growth story.
Overall, Xero is a true quality tech play with scale, brand power, and a sticky customer base. This could make it a great option for that $2,500 investment.
Goldman Sachs is very bullish and has a buy rating and $201.00 price target on its shares.
