If you have room in your investment portfolio for some new additions, then it could be worth checking out the ASX shares in this article.
That's because two have been tipped as buys, courtesy of The Bull, by analysts at Shaw and Partners. Here's what the broker is recommending to clients:
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Woolworths Group Ltd (ASX: WOW)
The first ASX share that is being tipped as a buy is supermarket giant Woolworths.
Shaw and Partners highlights that its shares have pulled back materially since the release of its full year results. It appears to believe that this has created a rare entry point in a defensive and high-quality stock. It said:
Investors have punished the share price since the supermarket giant released its full year results. The shares closed at $33.42 on August 26, the day before the results. The shares were trading at $27.59 on September 18. We suggest investors buy the stock while sentiment is low and value is compelling. The stock is currently out of favour, so it offers a rare entry point into a high quality defensive business with strong brand loyalty. Company earnings are resilient, supported by essential consumer spending. In our view, Woolworths presents upside potential for portfolios seeking stability and recovery.
BWP Trust (ASX: BWP)
Another ASX share that is rated as a buy by Shaw and Partners is BWP Trust.
It likes the Bunnings property owner due to its high occupancy rate, stable cash flow, and attractive dividend yield. Commenting on the share, the broker said:
This real estate investment trust invests in and manages commercial properties across Australia. BWP is the biggest owner of Bunnings hardware sites in Australia with 66 stores. BWP offers dependable income and asset quality. The trust owns prime land with low cost buildings, resulting in minimal depreciation and strong capital preservation. High occupancy, stable cash flow and an attractive dividend yield make BWP a prudent choice for income focused investors seeking low volatility and long term value.
Metcash Ltd (ASX: MTS)
A final ASX share that the broker has been looking at is wholesale distributor Metcash.
The broker sees it as a good option for income investors, but it only rates it as a hold at present. It explains:
Metcash is a wholesale distribution and marketing company involved in food, liquor and hardware. We suggest holding Metcash for stable income and defensive positioning. It offers a solid dividend yield, resilient earnings and reliable cash flow in uncertain markets. Its exposure to essential consumer goods and regional retail provides downside protection, making it a suitable hold for income-focused investors seeking stability over aggressive growth.
