Now that we are a fair way into August, and the S&P/ASX 200 Index (ASX: XJO) is at fresh new all-time highs, it might be a good time to have a think about which ASX 200 shares you might want to invest in going forward.
A market at all-time highs is definitely worth celebrating. But we all know that it can be a dangerous time to invest as well. Most share market crashes usually come pretty close on the heels of record-breaking bull markets, after all. As such, any new shares an investor wants to add to their portfolios this August may benefit from a high-conviction investment thesis.
So here are 3 ASX shares that offer such a thesis today:
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3 high conviction ASX 200 shares that could be August buys
Telstra Corporation Ltd (ASX: TLS)
Although Telstra did hit a new 52-week high of $3.83 yesterday, the Telstra share price is still relatively low by historical standards. Remember, this ASX 200 telco is a company that once had an '8' at the front of its share price. Still, Telstra shares have been a great investment in more recent history. The company is now up almost 27% in 2021 so far on yesterday's closing share price.
There is one investor who thinks Telstra can climb further though. Investment bank and broker Goldman Sachs currently rates Telstra as a 'buy', with a 12-month share price target of $4.20 a share. That implies a potential upside of almost 10% on yesterday's closing price. Goldman thinks Telstra will continue to benefit from the completion of the nbn rollout, as well as demand for its generous dividend payments.
Newcrest Mining Ltd (ASX: NCM)
Newcrest is another ASX 200 share that may be a worthy high-conviction ASX share idea for investors today. That might be a hard pill to swallow today, considering Newcrest shares took quite a nasty tumble yesterday, shedding 2.7% to close at $25.39 a share. Falling gold prices seem to be behind this most recent dip.
However, Newcrest is another one of Goldman Sachs' high conviction ASX shares. Goldman currently rates Newcrest as a 'buy' as well, with a 12-month share price target of $35 a share. That's a potential upside of close to 38% on yesterday's closing share price. In this case, Goldman is bullish on Newcrest due to its perceived cheap valuation compared to other ASX gold miners, as well as the company's growth pipeline.
Coles Group Ltd (ASX: COL)
ASX 200 supermarket giant Coles is the final ASX share to consider today. Coles shares have had a lacklustre 2021 so far – the company is currently down 2.76% year to date. At yesterday's closing share price of $17.99, it's also a fair ways away from its all-time high of $19.26 a share.
Saying that, Coles is another company that Goldman Sachs is currently bullish on with conviction. Goldman rates Coels shares as a 'buy' with a 12-month share price target of $19.40, implying a potential upside of 7.8% over the next year.
For Coles, Golman is looking at the company's upcoming earnings report, and is expecting Coles to shine in its Liquor and Coles Express divisions in particular. It also expects the company's share price earnings multiple to continue to narrow against its rival Woolworths Group Ltd (ASX: WOW) going forward.
