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 shares that brokers like:
Afterpay Touch Group Ltd (ASX: APT)
The buy now, pay later business is rated as a buy by at least five analysts. Its share price has been a rollercoaster in recent months and the announcement of the ASIC industry review didn't help things.
However, some investors now feel the price is a little more manageable and that the US opportunity is so good that it's worth an investment at the current price. If the UK expansion goes well then that could be another large growth avenue. Indeed, there are many other markets Afterpay could enter such as Canada.
Macquarie Group Ltd (ASX: MQG)
Australia's largest investment bank is rated as a buy by at least 11 analysts, although there are a few 'hold' recommendations as well.
It has proven to be the pick of the big banks with its global earnings base generating consistent growth since the GFC. It only has a small portion of its earnings tied to the Australian housing market, unlike its ASX peers. Macquarie can expand in whichever geography it thinks shows profit potential.
As long as the global economy keeps growing over the long-term, it is likely that Macquarie will as well.
Bapcor Ltd (ASX: BAP)
Bapcor is Australia's leading auto business with its Burson and Autobarn brands. Not only does Bapcor offer shareholders a defensive earnings profile but it's growing its national network numbers and also starting to open Bursons in Asia.
The recent announcement of Bapcor buying a truck parts group also gives another line of expansion. Bapcor could be cheap trading at only 20x FY18's underlying earnings.
Foolish takeaway
All three shares have the potential to be market beaters over the next five years, as they have been over the past five. At the current prices I would say Bapcor is my clear favourite based on the valuation and risks compared to the other two.
