S&P/ASX 200 Index (ASX: XJO) shares are down 0.64% to 8,730.6 points on Monday.
Among the 11 market sectors, only technology is trading higher, up 0.22% today, as the sector turnaround continues.
The energy sector is the worst performer, down 1.5%, after the US cancelled a trip for US officials to the Middle East.
A second round of talks between the US and Iran will not proceed at this stage.
Iran is refusing to negotiate while the US blockade of its ports remains in place.
The Iran war is now in its ninth week, intensifying concerns about the long-tail global impact of the oil shock.
The Strait of Hormuz, through which 20% of the world's oil and gas supply is transported by ship, remains effectively shut down.
Amid this ongoing economic saga, Damien Nguyen from Morgans provides his views on three ASX 200 shares (courtesy The Bull).
Let's check them out.
Image source: Getty Images
Goodman Group (ASX: GMG)
The Goodman Group share price is $28.97, down 0.6% today and down 16% over the past six months.
Goodman Group is a global industrial property owner and manager with a big focus on warehouses and data centres.
Nguyen reckons Goodman Group shares are a good buy.
He comments:
Long term demand remains supported by online retail growth and the need for efficient distribution networks close to major cities.
Goodman's development pipeline and customer relationships provide visibility and flexibility, while its balance sheet remains conservative.
Although the valuation isn't cheap, it reflects the group's premium asset quality and structural growth exposure.
After recent market volatility, we see the risk–reward as attractive for long term investors.
BHP Group Ltd (ASX: BHP)
The BHP share price is $55.77, down 0.6% today and up 28% over six months.
Nguyen has a hold rating on this ASX 200 mining share.
He explains:
BHP provides diversified exposure to iron ore, copper and future-facing commodities, backed by a strong balance sheet and disciplined capital management.
Copper offers long term appeal through electrification, while iron ore continues to drive near term earnings. However, results remain sensitive to global growth and Chinese demand.
With commodity prices reflecting mixed economic signals, BHP's valuation looks fair rather than compelling.
BHP suits investors seeking stability and income, but upside appears balanced by cyclical risk, supporting a hold rating.
Westpac Banking Corp (ASX: WBC)
The Westpac share price is $38.73, down 0.7% today and up 20% over the past 12 months.
Westpac shares hit an all-time high of $43.32 on 25 February.
Nguyen has a sell rating on this ASX 200 bank share on valuation grounds.
He explains:
Westpac has made progress simplifying its business, but returns continue to lag peers. Growing revenue is a challenge in a competitive and mature banking market, while execution risk persists.
Cost control and balance sheet strength offer some support, but growth drivers are limited in a slowing credit environment.
The valuation doesn't offer a clear margin of safety given these challenges. Income may appeal to some investors.
