Expert names 2 ASX shares to buy for 'extended, uninterrupted' good times

One of these two stocks is up 360% this year, but is now in the box seat for further gains.

| More on:
An elderly retiree holds her wine glass up while dancing at a party feeling happy about her ASX shares investments especially Brickworks for its dividends

Image source: Getty Images

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 a company has thrived through the past 12 months, one could argue that it is pretty resilient through tough times.

Most ASX shares lost much value in 2022, especially through the first half, as rampant inflation, rising interest rates, war in Europe, and supply constraints put unprecedented pressure on performance.

So if a stock can rise through that muck, then its business model must operate reasonably independently of those external factors.

Two ASX shares that fit this logic were named this week by Seneca investment advisor Arthur Garipoli as buys:

Growth by shopping spree

DGL Group Ltd (ASX: DGL) is in the business of making, distributing, and warehousing industrial chemicals.

It's an industry that's notoriously difficult for newcomers to enter and seriously challenge the incumbents. In fact, DGL has been busy acquiring smaller players such as Temples' chemical storage business and Flexichem Australia.

Perhaps this is why the share price has risen 40.6% over the past 12 months.

Garipoli is definitely impressed with DGL's growth.

"Since listing in May 2021, the company has beaten prospectus forecasts and continued to grow aggressively via organic acquisitions," he told The Bull.

"All acquisitions are, or have the potential to be earnings per share accretive, adding growth to the company going forward."

Coverage is sparse for the $765 million company, but both analysts currently surveyed on CMC Markets rate DGL shares as a strong buy.

The company is due to report its financials on 30 August.

'A significant discovery' that sets up the future

The Galileo Mining Ltd (ASX: GAL) share price is now, incredibly, 359% higher than where it started this year.

Most of that mind-blowing climb came in May, to close Monday at $2.35.

"In early May, Galileo announced a significant discovery of palladium and platinum, which has since resulted in a soaring share price," said Garipoli.

"The company recently completed a placement at $1.20 a share, with cornerstone investments from major shareholders Mark Creasy and IGO Ltd (ASX: IGO)."

Despite the massive share price, Garipoli feels the May announcement simply puts Galileo in pole position for further gains in the future. 

"We believe the company is set up for an extended, uninterrupted period of drilling, assays and results."

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended DGL Group Limited. The Motley Fool Australia has recommended DGL Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Broker Notes

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

Brokers name 3 ASX shares to buy today

Here's why brokers are feeling bullish about these three shares this week.

Read more »

Woman with a scared look has hands on her face.
Broker Notes

Bapcor shares fell more than 30% yesterday. Should investors buy in the dip?

Is this a value opportunity?

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Broker Notes

Broker raises price targets on 2 ASX 200 shares to buy

Ord Minnett has just upped its 12-month share price targets on 2 buy-rated ASX 200 stocks.

Read more »

Man drawing an upward line on a bar graph symbolising a rising share price.
Broker Notes

Morgans says these ASX can rise 30% to 50%

The broker has good things to say about these shares.

Read more »

Two businessmen look out at the city from the top of a tall building.
Broker Notes

2 ASX REITs to buy in July: expert

Is it time to consider ASX REITs?

Read more »

Delighted adult man, working on a company slogan, on his laptop.
Broker Notes

Broker tips 20% upside for these ASX utilities shares

Bell Potter sees upside in these two shares.

Read more »

A beautiful woman with brown hair and wearing bright red lipstick looks shocked as she holds her hand to her cheek in response to the crumbling Adore Beauty share price today
Broker Notes

3 ASX consumer sector shares to avoid in July: expert

If you're looking to buy ASX consumer shares in July, read on.

Read more »

A little girl with red hair runs excitedly with a rocket strapped to her back, trying to launch.
Broker Notes

106% upside? Expert says this ASX All Ords small cap mining stock could explode

Big upside potential.

Read more »