3 ASX shares I'd buy today with $20,000

Brokers expect a robust upside from these shares over the next 12 months.

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Key points

  • James Hardie Industries experienced a price drop in August, presenting a buying opportunity with Macquarie analysts assigning an outperform rating.
  • BlueScope Steel's share price showed volatility over the past year but analysts predict stabilisation in steel demand.
  • ARB Corp shares have rebounded 14.3% over the last 6 months, with Macquarie rating them as outperform, helped by improving vehicle demand and positive consumer spending outlook.

If you have $20,000 to invest in stocks today, but don't know which ASX shares to choose, here are my three top picks for this week.

James Hardie Industries (ASX: JHX)

The James Hardie Industries share price closed 0.19% higher on Tuesday at $29.56. Over the past 6 months the share price is 26.1% lower, mostly due to a 34.6% crash in mid-August. Over the year the share price is 48.19% lower.

The stock's share price crash last month presents a strong buying opportunity for investors looking to get in ahead of a potential price resurgence.

Macquarie analysts also think the stock is looking more attractive after recent weakness. The broker has an outperform rating and $37.20 target price on James Hardie shares. That's a potential 25.8% upside at the time of writing.

The broker recently told investors it thinks there is even potential for monetary policy support to act as a catalyst for growth.

BluesScope Steel Ltd (ASX: BSL)

The BlueScope Steel share price closed 0.53% higher on Tuesday at $22.66.

Over the year the ASX share price has been a little wobbly, ranging anywhere between $18.60 and $26.05 over the 52-week period. Over the 12-month period the share price is still up 8.47%.

Brokers continue to be positive on the stock, expecting steel demand to stabilize throughout the remainder of 2025 and into 2026. 

More RBA cash rate cuts could also boost consumer spending and housing demand. This would benefit companies like BlueScope Steel, in the building and construction industry.

Macquarie named the stock as one of its top picks earlier this month. It has an outperform rating and $25.45 target price on its shares. This represents a potential 12.3% upside at the time of writing.

ARB Corp Ltd (ASX: ARB)

Another ASX share I have my eye on is ARB Corp. At the time of writing, ARB's shares closed 0.36% lower on Tuesday at $38.86 a piece. 

ARB's share price is 14.74% lower for the year, mostly due to a share price drop following the US tariff announcement in April.

But the share price has slowly rebounded over the past 6 months, up 14.3%, with expectations that there could be more to come over the next year.

Macquarie has an outperform rating on the auto accessories company's shares, and a 12-month target price of $44.90. At the time of writing, that's a potential 15.5% increase for investors.

Macquarie said that the company has delivered a solid result in the Australian Aftermarket despite the 'tougher environment'. It also expects new vehicle demand to continue to improve throughout the remainder of CY25, driving up sales. 

As a consumer discretionary company, ARB could also benefit from a boost in consumer spending in the event of more cash rate cuts. 

Motley Fool contributor Samantha Menzies has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended ARB Corporation. The Motley Fool Australia has recommended ARB Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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