Investing in the share market doesn't have to be complicated. Sometimes the smartest approach is to keep things simple and focus on high-quality and easy to understand businesses with strong long-term tailwinds.
If you've got $500 sitting idle and want to put it to work in the ASX today, here are two dead-easy Australian stocks that analysts think you should consider. They are as follows:
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ResMed Inc. (ASX: RMD)
The first Australian stock to consider for a $500 investment is ResMed. It is a global leader in sleep apnoea treatment and cloud-connected medical devices.
Millions of people worldwide suffer from sleep and respiratory disorders, yet treatment rates remain relatively low. That means ResMed is operating in a large and growing market with decades of runway ahead.
And while there have been concerns in the past about weight-loss drugs potentially reducing the prevalence of sleep apnoea, management has been clear that these drugs are unlikely to diminish the need for ResMed's devices any time soon. In fact, it believes they will raise awareness and expand its market.
The team at Macquarie is bullish on ResMed and sees plenty of upside for its shares. It has an outperform rating and $48.60 price target on them. Based on its current share price of $40.59, this implies a potential return of 20% for investors over the next 12 months.
NextDC Ltd (ASX: NXT)
The second Australian stock that could be a dead-easy buy with that $500 is NextDC. It is Australia's leading data centre operator.
The rise of cloud computing, artificial intelligence, and the digital economy has created unprecedented demand for secure and reliable data storage. NextDC is perfectly positioned to benefit.
The company continues to report record contracted sales and has a forward order book that exceeds its current billing capacity. In addition, with a pipeline of expansion projects in Australia and across Asia, this Australian stock is scaling up quickly to meet surging demand from hyperscale customers.
While its shares aren't cheap on traditional valuation metrics, NextDC's growth prospects are hard to ignore and arguably justify the premium. Macquarie certainly thinks that it does. It is also bullish on NextDC and currently has an outperform rating and $22.30 price target on its shares. Based on its current share price, this suggests that upside of 28% is possible between now and this time next year.
