'Bright outlook': 2 'high quality' ASX 200 shares to pounce on now 

Quality can mean different things to different people, but this pair that experts have picked as buys are prime examples.

| More on:
A black cat waiting to pounce on a mouse.

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

The volatility that ASX investors suffered over the past 18 months is not expected to wane anytime soon.

That's why multiple experts are urging punters to back "quality" ASX shares rather than fall into the trap of becoming too speculative for quick riches.

A pair of advisors this week rated two such stocks as buys:

'A discounted energy stock'

The Santos Limited (ASX: STO) share price has plunged 11.1% over the past 12 months.

That makes it a bargain buy, according to Bell Potter investment advisor Christopher Watt.

"In our view, Santos remains a discounted energy stock with the lowest implied oil price," Watt told The Bull.

"The energy giant reported a solid first quarter production result in fiscal year 2023."

Created with Highcharts 11.4.3Santos PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

Santos' outlook is pleasing to Watt.

"The company retained fiscal year 2023 guidance," he said.

"Santos is geographically diversified. Also, it offers a diversified product mix across LNG, domestic gas, crude oil and liquids."

A 4.7% dividend yield also helps the buy case.

The team at Macquarie Group Limited (ASX: MQG) agrees with Watt's bullishness.

The Motley Fool reported a fortnight ago that those analysts had a price target of $9.95 for Santos. That's about a 40% upside from the current level.

The company with everything going for it

Industrial real estate manager Goodman Group (ASX: GMG) is Medallion Financial Group private client advisor Stuart Bromley's pick.

The business has many tailwinds.

"It has high quality properties, blue chip tenants, an occupancy rate of 99% and long average lease expiries," he said.

"Competition is modest and rental growth is accelerating."

The market has certainly woken up to Goodman's potential, sending the share price 16% up so far this year.

Created with Highcharts 11.4.3Goodman Group PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

Bromley is confident the business is incubating further growth.

"The company continues to build, as it progresses $13.9 billion of existing projects," he said.

"The gearing ratio is lower than other more exposed property plays. The company offers a bright outlook."

Citigroup Inc (NYSE: C) analysts concur.

"Its analysts are forecasting double-digit earnings per share growth out until at least FY 2025," reported The Motley Fool last week.

"It's no surprise, then, to learn that Citi has a buy rating on its shares with a $24.00 price target."

The target of $24 represents about a 20% premium on current levels.

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tony Yoo has positions in Macquarie Group. 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 positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Investing Strategies

A bearded man holds both arms up diagonally and points with his index fingers to the sky with a thrilled look on his face over these rising Tassal share price
Growth Shares

3 exciting ASX 200 growth shares to buy in July

Brokers think these shares could be top picks for growth investors.

Read more »

A elder man and woman lean over their balcony with a cuppa, indicating share rpice movement for ASX retirement shares
Small Cap Shares

Why I think this ASX small-cap stock is a bargain at 58 cents

This stock looks like a great buy, in my opinion.

Read more »

A woman is excited as she reads the latest rumour on her phone.
Cheap Shares

3 popular ASX stocks that look dirt cheap right now

Let's see which shares analysts think are being undervalued by the market.

Read more »

A man thinks very carefully about his money and investments.
Dividend Investing

Buy Fortescue and these fantastic ASX dividend shares with $5,000

These shares have been named by brokers as buys for income investors. Let's see what they offer.

Read more »

A woman sits on sofa pondering a question.
Growth Shares

Is this the best ASX 200 share to buy for growth?

This stock is exposed to multiple growth tailwinds.

Read more »

Two excited woman pointing out a bargain opportunity on a laptop.
Cheap Shares

I think these 2 cheap ASX shares are buys for value investors

I think these stocks are too cheap to ignore.

Read more »

an older woman holds a handful of paper money in her hands and looks at them with a slightly crazy smile on her face wearing her spectacles on a string as a lot of older people do.
Dividend Investing

I rate these 2 high-yield ASX dividend stock as buys

These businesses could pay big passive income.

Read more »

Woman and man calculating a dividend yield.
Dividend Investing

With the 13% dividend yield, is the GQG share price a buy?

This stock has a huge dividend yield. Does it offer more than that?

Read more »