Are you looking for ASX 200 stocks to buy in July? If you are, 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 on its Australian equities panel. These are the shares that its analysts believe "offer attractive risk-adjusted returns over the long term."
Bell Potter also highlights that when making its picks, it "considers the current macro-economic backdrop and investment environment, focusing on quality companies with proven track records, strong management teams and competitive advantages."
With that in mind, let's look at two ASX 200 stocks that are on the coveted list this month. They are as follows:
Amcor (ASX: AMC)
A new addition to its Australian equities panel this month is packaging giant Amcor.
Bell Potter believes that the company's outlook is very positive thanks to its recent merger Berry Global.
In fact, it believes that the ASX 200 stock can deliver double-digit earnings growth in the coming years. As a result, it feels that its shares are undervalued on current multiples. It said:
The strategic merger with Berry Global strengthens AMC's market dominance in high margin, defensive segments including rigids, Healthcare and Home & Personal Care, and improves the resilience of business earnings. Trading at ~11.1x forward earnings with double-digit earnings growth projected over the next two years, we believe the current valuation offers good long-term value for investors.
Another positive is that it estimates that Amcor's shares offer a 5.8% dividend yield.
Aristocrat Leisure Ltd (ASX: ALL)
Bell Potter also believes that Aristocrat Leisure could be one of the best ASX 200 stocks to buy in July.
It is a global gaming content creation company that designs and manufactures electronic gaming machines. It is also a top two developer and publisher of free-to-play social casino games on mobile and web platforms and the dominant supplier of iLottery services to online casinos.
The broker highlights that Aristocrat Leisure's shares have fallen heavily since the start of the year despite its strong earnings growth outlook. In light of this and its strong balance sheet, Bell Potter thinks that now could be an opportune time to invest. It explains:
Trading at 24x 12MF P/E, down from ~27x in January, even as earnings continue to step higher, with ~14% EPS 2y CAGR. We like that they have balance-sheet fire-power with net cash and a fresh A$750 m on-market buy-back, which gives flexibility to keep rewarding shareholders while funding organic R&D and M&A in real-money gaming.
