The three ASX shares I’m going to mention in this article are rated as ‘buys’ by several brokers.
It’s quite hard to find businesses that are both good businesses and trading at a good price. Even then, one person might say Commonwealth Bank of Australia (ASX: CBA) and another says that Transurban Group (ASX: TCL) is a better choice.
Investment site MarketIndex regularly collates the ratings of brokers together to assess what the broker community collectively think are opportunities. Of course, this still isn’t a guarantee of success – they could all be herding together.
With that in mind, here are three ASX shares that brokers like:
Nextdc Ltd (ASX: NXT)
Nextdc is rated as a buy by at least 10 analysts.
There is a fast shift to cloud computing. Nextdc is an important part of the digital infrastructure to make that happen with its data centres. It offers nine data centres across five capital cities so that businesses can have a great performance in each city. It works with the biggest cloud providers like AWS, Azure and so on.
Customer numbers, total revenue and underlying profit continue to grow, so it’s definitely one to watch over the coming years.
Nine Entertainment Co Holdings Ltd (ASX: NEC)
Nine is rated as a buy by at least eight analysts.
Traditional TV and paper newspapers don’t have very exciting futures, although Nine is still making money from them. I think Nine is an interesting diversified media business, and is my preferred pick of the TV station businesses.
Nine has been busy acquiring additional businesses to increase its exposure to various forms of media including the Fairfax acquisition which includes the Australian Financial Review and now it’s acquiring Macquarie Media Limited (ASX: MRN).
The company controls plenty assets that may benefit from businesses wishing to increase spending away from Google and Facebook. The streaming business Stan is also growing, although the launch of Disney Plus could be a cause for concern.
The company warned that recent advertising revenue was down in year to date trading, but the decline in the share price could make the shares a buy today.
It’s trading at 14x FY21’s estimated earnings.
Aristocrat Leisure Limited (ASX: ALL)
At least 13 analysts think Aristocrat Leisure is a buy.
It’s one of the few huge ASX businesses that is growing revenue and profit at a fast pace whilst also having a large amount of earnings generated from overseas. It’s an attractive combination for the ASX stock market which is largely focused on businesses in Australia and New Zealand.
The company continues to invest in new products which could grow and diversify earnings further, but some investors may dislike it for ESG reasons.
It’s trading at under 20x FY21’s estimated earnings.
All three companies could beat the market over the next few years. At the current prices I’d probably go for Aristocrat, it offers something quite different with a good growth rate at a nice valuation.
The post 3 ASX shares rated as strong buys by brokers appeared first on Motley Fool Australia.
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Transurban Group. The Motley Fool Australia has recommended Nine Entertainment Co. Holdings Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The Motley Fool's purpose is to help the world invest, better. Click here now for your free subscription to Take Stock, The Motley Fool's free investing newsletter. Packed with stock ideas and investing advice, it is essential reading for anyone looking to build and grow their wealth in the years ahead. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 2019