2 top-quality ASX shares to buy now in the market correction

Here's why I think CSL Limited (ASX: CSL) and this other ASX 200 share are buys right now in the current ASX sharemarket correction.

| 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

With all the panic right now in local and global share markets, I think the most important strategy that you should implement as an investor is to stay calm and think rationally.

It's very important to keep in mind that the kind of volatility we're experiencing now does happen in markets from time to time. 

Shares can go down in the short term. However, if we look at the history of the share market over the past century, it shows us that the market always bounces back eventually.

Astute investors understand that the underlying fundamentals of good quality companies don't deteriorate in a few days or weeks.

What we know for sure is that the price-to-earnings (P/E) ratios of many companies have now dropped significantly. This means that opportunistic investors can purchase good quality companies at more favourable share prices.

With that in mind, here are 2 of my top ASX share picks right now that I believe offer good value to investors with a long-term investment horizon.

Bapcor Ltd (ASX: BAP)

Bapcor is the largest and leading second-hand car parts distributor in Australia and New Zealand. In the Bapcor's recent first-half results, the company reported adding a further 35 new stores and branches to its network.

Bapcor is also expanding into Thailand, which could provide it with a useful launching pad for further expansion into Asia.

Despite a significant 12.3% rise in the Bapcor share price today, I believe that the company's shares were sold off too harshly since mid-February. In my view, this provides astute investors with a good opportunity to purchase a top-quality ASX share at a more favourable price.

Although Bapcor's revenue growth has slowed down, I believe there are still plenty of opportunities to grow both locally and internationally. As the company achieves further scale, it can spread costs over a larger base and further increase its margins.

CSL Limited (ASX: CSL)

With today's 4.4% rise, CSL shares have fallen by around 10% in the current ASX correction. Again, I believe this provides investors with the chance to purchase this top-quality ASX healthcare share at a more favourable price. 

Over the past two decades, CSL has gone from strength to strength. Today, the company is a global market leader in blood plasma research and disease treatment, reaching people in more than 60 countries.

Unlike another of Australia's leading healthcare shares, Cochlear Limited (ASX: COH), I don't think that CSL will be impacted much by the coronavirus outbreak, and patients will continue to access its blood plasma products.

Phil Harpur owns shares of Bapcor, Cochlear Ltd., and CSL Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. and CSL Ltd. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia has recommended Cochlear Ltd. 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

Ten smiling business people wave to the camera after receiving some winning company news.
Share Gainers

Here are the top 10 ASX 200 shares today

It was a nervous, but positive, Tuesday for ASX investors.

Read more »

A susccesful person kicks back and relaxes on a comfy chair
Best Shares

If I could only buy and hold a single ASX share forever, it would be this one

There are two reasons why this stock is my first choice...

Read more »

young woman reviewing financial reports at desk with multiple computer screens
Opinions

Brokers' verdict on 4 popular ASX 200 financial stocks

Financials outperformed every other sector in FY25. What should you do now with these 4 stocks?

Read more »

two colleagues high five each other as they sit side by side at a long desk in front of their laptop computers in an office environment.
Share Gainers

Why Bapcor, Ramelius, Sandfire, and WIA Gold shares are rising today

These shares are having a better day than most on Tuesday. But why?

Read more »

Businessman using a digital tablet with a graphical chart, symbolising the stock market.
Share Market News

Is it too late to invest in the record setting S&P 500 stock gains?

A top broker reveals what to expect next from the surging S&P 500 Index.

Read more »

A young woman holds an open book over her head with a round mouthed expression as if to say oops as she looks at her computer screen in a home office setting with a plant on the desk and shelves of books in the background.
Share Fallers

Why Boss Energy, DroneShield, Greatland, and Viva Energy shares are tumbling today

Let's see why these shares are out of favour with investors on Tuesday.

Read more »

Man smiling at a laptop because of a rising share price.
Broker Notes

4 ASX shares to buy this week: experts

Looking for investment inspiration?

Read more »

Miner and company person analysing results of a mining company.
Energy Shares

Should you buy Boss Energy shares now after Monday's huge sell-off?

Macquarie gives its verdict on Boss Energy shares following Monday’s crash.

Read more »