Many stocks on the S&P/ASX 200 Index (ASX: XJO) are trading in the red this afternoon after the Australian Bureau of Statistics (ABS) released its latest inflation data.
The index itself is down 0.9% at the time of writing.
But sometimes a slump like this can present a good buying opportunity for investors who are looking to get their hands on good-quality shares.
Here are 3 ASX 200 shares I'd buy right now with $10,000.
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Zip Co (ASX: ZIP)
Zip shares are another strong contender for growth. On Wednesday afternoon, its shares are down 1.59% at $4.04 a piece, giving a year-to-date return of 35.69%.
Since the share price dipped in April, Zip shares have surged 239.1%, and it appears there is a good chance of further growth ahead.
On Friday, the company announced that its US segment is expanding its partnership with programmable financial services business Stripe.
And just yesterday, Macquarie analysts initiated coverage of the Australian financial technology company, saying it expects Zip to deliver rapid growth going forward. It has an outperform rating and $4.85 target price on the stock.
TradingView data shows some analysts are even more bullish on the stock. Out of 10 analysts, 8 have a strong buy rating, 1 has a buy rating, and 1 holds a neutral stance. The maximum upside is as high as $6.20, representing a potential 53.85% increase over the next 12 months.
I think now is a great time to buy.
Xero Ltd (ASX: XRO)
Another stock on my radar this week is Xero. It's been a rollercoaster year for the ASX 200 accounting software company's share price.
At the time of writing on Wednesday afternoon, Xero shares are 1.72% lower and changing hands at $151.14 a piece. The shares have dropped 22% since July, following the company's announcement of a US$2.5 billion acquisition of US-based Melio, which spooked investors and sparked a sell-off. The ASX 200 company's shares are now down 9.67% for the calendar year to date.
Again, I believe the recent sell-off and declining share price present a great buying opportunity for investors who want to get in before the next uptick in growth.
According to TradingView data, 7 out of 11 analysts have a buy or strong buy rating on the shares. The average target price is $198.85, but some believe that Xero shares could hit $235.65 over the next 12 months. That represents a potential upside as high as 55.98% from the share price at the time of writing.
Orica Limited (ASX: ORI)
Orica is a leading global manufacturer and supplier of explosives and blasting systems, primarily to the mining industry. So it makes sense that when the mining industry booms, so does its share price.
Unlike the other stocks on my list, Orica shares have been a success story this year. At the time of writing, the shares are down 0.11% to $22.105, but a consistent 45% increase since May has pushed the share price 27.45% higher than this time last year.
The company is showing solid momentum after a solid business update in September, which revealed a strong balance sheet and profit growth.
It's another stock I think is undervalued at its current level.
It looks like analysts agree, too. TradingView data shows that 10 out of 13 analysts have a strong buy rating on the ASX 200 stock, and another 2 have a buy rating. The maximum target price is $25.70, which translates to a potential 16.21% upside for investors over the next 12 months, according to the share price at the time of writing.
