Ansell and 1 other quality ASX 200 share to buy right now

Here we look at 2 quality ASX 200 shares to potentially add to your share portfolio: Bapcor Ltd (ASX: BAP) and Ansell Limited (ASX: ANN).

| More on:

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

If you're looking for some S&P/ASX 200 Index (ASX: XJO) share selections, I believe  the following two ASX 200 shares: Bapcor Ltd (ASX: BAP) and Ansell Limited (ASX: ANN) are worthy candidates. Here's why they are both in my buy zone right now:

Bapcor

Bapcor is the leading aftermarket auto parts distributor in both Australia and New Zealand. An expansion into Thailand will also hopefully provide it with a launching pad to expand further into the Asian market.

The Bapcor share price was hit hard during the early phase of the coronavirus pandemic, dropping as low as $3.15. Since then, it has made a partial recovery but has failed to regain its February highs of over $7.

In a recent market update, Bapcor revealed that the impact of the COVID-19 pandemic has been less severe than it had originally predicted. Bapcor's retail and Burson Trade operating segments in Australia, in particular, have experienced higher than anticipated demand. Same store sales for Autobarn increased over 45% during May and June, compared with the same period in 2019. However, the company's New Zealand, Thailand, and specialist wholesale divisions have been more negatively impacted by the pandemic.

With its current share price of $5.68 still well down on pre-COVID-19 levels, I believe that Bapcor offers a reasonable ASX share buying opportunity right now for patient, long-term investors. I still remain confident about the company's long-term growth prospects. However, further COVID-19 lockdown restrictions could lead to share price volatility over the short term.

Ansell

Ansell develops, manufactures and sells a range of gloves and personal protective equipment (PPE) for both the industrial and medical markets.

Ansell has been one of the star performers on the S&P/ASX 200 Index with regards to share price growth during the coronavirus pandemic. After initial share prices losses in the early phase of the pandemic, falling to $21.43 on 23 March, the Ansell share price is now trading well above its pre-COVID-19 levels at $38.40. Ansell has been experiencing strong recent demand for its hand and body protection products. Both product ranges are industry certified for protection against infections and viruses such as coronavirus.

Despite its recent strong share price increase, I'm confident that Ansell remains well-positioned to grow further over the next five years due to rising demand for PPE in the healthcare segment.

Foolish takeaway

Both Bapcor and Ansell are on my buy list due to their entrenched market positions, growing overseas presence and proven business models. I believe that both have long runways for growth, however I'm leaning more towards Ansell right now as my top pick of the two. This is largely due to what I believe will be continued strong demand for its products during the pandemic.

Motley Fool contributor Phil Harpur has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. The Motley Fool Australia has recommended Ansell 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

Broker written in white with a man drawing a yellow underline.
Broker Notes

Top brokers name 3 ASX shares to buy next week

Brokers gave buy ratings to these ASX shares last week. Why are they bullish?

Read more »

A boy bounds after a big colourful bouncing ball in a grassy field.
Share Market News

ASX 200 energy shares lead and market finally cracks 8-day losing streak

The ASX 200's painful 8-day slide finally ended on Friday.

Read more »

Business people discussing project on digital tablet.
Broker Notes

Buy, hold, sell: Mesoblast, Mineral Resources, and Woolworths shares

Analysts have given their verdict on these shares. Let's see what they are saying.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Broker Notes

These top ASX 200 shares could rise 30% to 40%

Analysts are predicting big things from these shares. Let's find out why.

Read more »

Stacks of coins in a row with each higher than the last, and a person standing on top of each one watching them grow.
Dividend Investing

How I'd invest $2,000 in high-yield ASX 300 shares

I rate these businesses as strong buys for the long-term.

Read more »

A rueful woman tucks into a sweet pie as she contemplates a decision with regret.
Share Fallers

The worst 4 ASX 200 stocks to buy and hold in April unmasked

Investors sent these four ASX 200 stocks tumbling 21% to 44% in April.

Read more »

A man sitting at a computer is blown away by what he's seeing on the screen, hair and tie whooshing back as he screams argh in panic.
Share Fallers

Why these top ASX shares sank 10%+ in April

It was a tough month for these popular shares.

Read more »

A man in his office leans back in his chair with his hands behind his head looking out his window at the city, sitting back and relaxed, confident in his ASX share investments for the long term.
Broker Notes

Buy, hold, sell: Netwealth, PLS, and Reliance shares

Morgans has given its verdict on these shares. Let's see what the broker is saying.

Read more »