Buy 2 ASX shares for cutting-edge tech changing the world: expert

Wilson analyst picks a pair of stocks that are using amazing technologies to produce innovative solutions to global problems.

| More on:
A woman looks internationally at a digital interface of the world.

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

Despite the tyranny of distance from the rest of the world, or perhaps because of it, Australia has produced its fair share of innovations.

There are, in fact, companies listed on the ASX right now that are working on sophisticated, market-leading technologies that could one day improve the lives of many around the world.

This week Wilson Asset Management analysts identify two such ASX shares that they recommend as a buy: 

Helping people heal from terrible injuries

ASX biotechnology shares have taken an absolute pummeling over the past 12 months.

But equities dealer Will Thompson is high on Aroa Biosurgery Ltd (ASX: ARX).

"Aroa develops, manufactures and distributes medical products," he said in a WAM video.

"Their product is, with the fear of oversimplifying it, just a really high-quality Band-Aid, which you'd use if you were in a bad motorcycle crash and you lost quite a bit of skin."

The concept itself is mature, but Aroa's product is different from incumbents as it is made organically.

"Next year there's a few regulation changes, which could really benefit it."

Created with Highcharts 11.4.3Aroa Biosurgery PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

In a horrible year for its peers, the Aroa share price is actually 7% higher than where it started 2022. The ASX share has rocketed up an eye-popping 44% since the start of October.

According to Thompson, Aroa has already put some runs on the board.

"It recently posted some storing sales numbers and actually showed that there's some cash generation as well," he said.

"Next year's going to be a big year for them, so it's a buy."

Helping resist global warming

Because of the bearish nature of markets this year, new ASX listings were few and far between.

LGI Ltd (ASX: LGI), which floated in October, is a rare example of a 2022 debutant that isn't in the resources sector.

Thompson explained that LGI is a gas abatement provider.

"Where all your rubbish and landfill goes, they take the methane out of that area," he said.

"Methane's 26 times worse for the environment than carbon dioxide. They turn that into energy, which they supply back into the market."

Therefore the business takes in revenue from both power generation and carbon credits.

"They're doing some really interesting investments where they think they can probably increase profitability by putting a battery in the system. So that's where the capital's going."

The initial public offer saw IGL shares sold at $1.50 per share. The stock closed Thursday at $1.97.

Created with Highcharts 11.4.3LGI Limited PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

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 no position in any of the stocks mentioned. 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

group of friends checking facebook on their smartphones
Broker Notes

Macquarie tips 22% return for this ASX telco stock

This telco could be undervalued at current levels according to the broker.

Read more »

A male sharemarket analyst sits at his desk looking intently at his laptop with two other monitors next to him showing stock price movements
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 mature age woman with a groovy short haircut and glasses, sits at her computer, pen in hand thinking about information she is seeing on the screen.
Broker Notes

Passive income: What's CBA's dividend outlook according to Macquarie?

Is CBA still a top passive income stock?

Read more »

A smiling woman looks at her phone as she walks with her suitcase inside an airport.
Broker Notes

Down 41% in a year, why Macquarie thinks Flight Centre shares are set to rebound

Is Flight Centre about to take off?

Read more »

A group of miners in hard hats sitting in a mine chatting on a break as ASX coal shares perform well today
Broker Notes

Does Macquarie rate Liontown Resources shares a buy, hold or sell?

Let’s find out what the broker had to say.

Read more »

Machinery at a mine site.
Broker Notes

Up 48% this year, does Macquarie think Lynas Rare Earths has further to run?

Changing market dynamics.

Read more »

A couple cheers as they sit on their lounge looking at their laptop and reading about the rising Redbubble share price
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 »

two men smiling with a laptop in front of them, symbolising a rising share price.
Broker Notes

These ASX 200 shares could rise 25% to 60%

Analysts think these shares are top buys and could rise materially.

Read more »