3 ASX shares rated as buys by several brokers

These 3 ASX shares are rated as buys by several brokers.

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The three 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 Caltex Australia Limited (ASX: CTX) and another says that National Australia Bank Ltd (ASX: NAB) 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 shares that brokers like:

G8 Education Limited (ASX: GEM)

G8 Education may be able benefit from continued industry consolidation & acquisition, plus the government is also increasing funding. Slowing credit availability due to the Royal Commission could hamper growth of the number childcare centres and that could mean occupancy levels recovering across the industry.

Indeed, some market commentators have said that the 'cowboys' are leaving the sector.

Its share price is down 36% over the past year, leaving it trading at less than 14x FY19's estimated earnings. At least ten brokers think it's a buy.

James Hardie Industries plc (ASX: JHX)

This construction materials business is one of the largest construction material businesses on the ASX.

Its long history and growing profit have not been enough to save the company from a 30% share price fall over the past six months.

Housing construction in the US continues at a pleasing pace, which should be a pretty good medium-term tailwind.

It's currently trading at 17x FY19's estimated earnings. At least 11 brokers think it's a buy.

Aristocrat Leisure Limited (ASX: ALL)

This business is a gambling machine manufacturer, it is also growing in the mobile games sector.

With only 1% of the social gaming market, there are big rewards on offer if the company can invest in the right areas. But, the investing may hurt shorter-term earnings.

It has seen its share price fall 16% over the past six months, leaving it trading at around 20x FY19's estimated earnings. At least 10 brokers think it's a buy.

Foolish takeaway

These three businesses are seemingly well-liked at the current prices, but they're not ones at the top of my own watchlist.

If I had to pick one of the three it would be Aristocrat, although I think it's worth closely watching whether the social impact of gambling & gaming causes regulators to take a closer look.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of National Australia Bank 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.

More on Share Market News

Man presses green buy button and red sell button on a graph.
Broker Notes

5 top ASX 200 stocks that brokers rate as buys after the market selloff

These stocks could be top buys for investors looking to add to their portfolio.

Read more »

Frustrated stock trader screaming while looking at mobile phone, symbolising a falling share price.
Share Fallers

Why Bellevue Gold, Collins Foods, Hub24, and Zip shares dropped today

These shares were out of form on Tuesday. But why?

Read more »

A woman's hand draws a stylised 'Top Ten' on a projected surface.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors kept up the positive momentum this Tuesday.

Read more »

Emotional euphoric young woman giving high five to male partner, celebrating family achievement, getting bank loan approval, or financial or investing success.
Share Gainers

Why Accent, DroneShield, EBR Systems, and Titomic shares are pushing higher

These shares are rising more than most today. But why?

Read more »

Group of successful real estate agents standing in building and looking at tablet.
Opinions

Here are Macquarie's top 3 stock picks in the ASX financial share sector in April

Macquarie is bullish about these three financial stocks.

Read more »

Falling yellow arrow with descending wooden bars with the percentage sign written on them.
Share Market News

Will ASX 200 investors get an interest rate cut in May? Here's what the RBA minutes tell us

With inflation slowing and a global trade war looming, will ASX 200 investors receive an RBA interest rate cut in…

Read more »

Man with rocket wings which have flames coming out of them.
Share Gainers

Why is this ASX All Ords mining share soaring 33% on Tuesday?

Investors are sending the ASX All Ords mining share flying higher. But why?

Read more »

Medical workers examine an xray or scan in a hospital laboratory.
Share Gainers

Guess which ASX All Ords stock just rocketed 28% on a new commercial contract!

The ASX All Ords stock has grabbed plenty of investor interest on Tuesday.

Read more »