2 ASX shares to buy that you haven't even thought about: expert

An expert has picked a pair of stocks to invest in right now that are primed to take advantage of global trends.

| More on:
Woman on her laptop thinking to herself.

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 you're finding it difficult to think of investment ideas at the moment, you're not the only one.

With so much turmoil in the world, even professional investors and the businesses themselves are grappling with uncertainty and low conviction.

This might mean it could be worthwhile clearing your mind. 

And what better way to start from a clean slate than start considering ASX shares that you have never even read about, let alone considered buying.

Here's a pair of outside-the-square buy recommendations:

The world is changing, once again

After the Fukushima nuclear disaster in 2011, that type of energy seemed to fall out of favour around the world. Germany, for example, accelerated its plans to shut down its nuclear power plants.

But now, 11 years later, Russia's invasion of Ukraine has triggered a rethink.

Continental Europe, facing a dire energy shortage from rapidly reducing its dependence on Russian gas, is reconsidering the value of nuclear power.

"The political momentum towards uranium as a clean and reliable energy source, particularly in Europe, is gathering pace," Red Leaf Securities chief John Athanasiou told The Bull.

Therefore he recommends buying shares in uranium producer Paladin Energy Ltd (ASX: PDN).

"The uranium company owns a 75% stake in the Langer Heinrich mine in Namibia. The share price is highly correlated to the uranium price."

The Motley Fool's Matthew Farley agreed that Paladin shares are a buy.

"I believe that we're in the very early stages of witnessing a revival of nuclear energy and that the potential of these shares hasn't yet been priced in by the market."

Athanasiou believes Paladin's valuation will rise with uranium demand.

"We expect increasing uranium prices to be reflected in an improving share price moving forward."

Nothing better than pricing power during rampant inflation

Disposable protective glove maker Ansell Limited (ASX: ANN) probably underperformed during the COVID-19 pandemic, considering its huge business in healthcare supplies.

But Athanasiou reckons the stock price's primed for a revival in the face of tougher economic times.

"During inflation, companies with pricing power tend to outperform," he said.

"Ansell, a leading manufacturer of protective industrial and medical gloves, has been able to pass on increasing production costs without any material impact on demand."

The Ansell share price is down almost 20% so far this year.

But because of its pricing power over its products, Athanasiou is optimistic.

"We're expecting the share price to outperform."

Ansell is polarising in the wider professional community. According to CMC Markets, five out of 13 analysts currently rate it as a buy, while seven recommend the stock as a hold.

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ansell Ltd. 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

Contented looking man leans back in his chair at his desk and smiles.
Broker Notes

Leading brokers name 3 ASX shares to buy today

Here's why brokers believe that now could be the time to snap up these shares.

Read more »

A smiling woman with a handful of $100 notes, indicating strong dividend payments
Broker Notes

Where to invest $10,000 in ASX 200 shares this month

Brokers think these shares could be top picks for your hard-earned money this month.

Read more »

A young woman lifts her red glasses with one hand as she takes a closer look at news about interest rates rising and one expert's surprising recommendation as to which ASX shares to buy
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 »

Man with rocket wings which have flames coming out of them.
Broker Notes

These ASX 200 shares could rise 40%+

Big returns could be on offer from these shares according to analysts.

Read more »

a man in a business suite throws his arms open wide above his head and raises his face with his mouth open in celebration in front of a background of an illuminated board tracking stock market movements.
Broker Notes

Analysts say these ASX shares are top buys in June

Brokers are urging investors to buy these shares. Let's find out why.

Read more »

A man in trendy clothing sits on a bench in a shopping mall looking at his phone with interest and a surprised look on his face.
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 and man calculating a dividend yield.
REITs

What price target does Macquarie have on Goodman Group shares?

Goodman Group posted an interesting set of numbers in Q3. Here's Macquarie's take.

Read more »

Miner looking at a tablet.
Broker Notes

Why Macquarie expects this ASX 200 copper stock to surge 36% in a year

Macquarie forecasts some hefty gains ahead for the ASX 200 copper miner. But why?

Read more »