'Sales records': 2 ASX 200 shares to 'build for the future'

These stocks are just starting to poke up, so one expert is urging investors to buy and ride the upward momentum.

| More on:
A CSL scientist looking through a telescope in a lab

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

There's nothing better than buying a couple of S&P/ASX 200 Index (ASX: XJO) shares nice and early on their upward curve.

You may have bought later than the bottom, but that's a small premium to pay for reduced risk that the business will tank.

Here are two such boom stocks that Medallion Financial Group private client advisor Stuart Bromley reckons is not too late to buy:

Low gearing to combat high interest rates

Goodman Group (ASX: GMG) shares have rocketed 6% since 10 July.

Although real estate is battered after the recent interest rate hikes, Bromley points to how Goodman has all the right levers in place for growth in the long run.

"This global industrial property giant has an occupancy rate of 99%, with quality long-term tenants," Bromley told The Bull.

"The company continues to build for the future, with $13.9 billion of projects in the pipeline."

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

He also reminded investors that the industrial property group isn't affected by higher interest costs as much as some other landlords.

"Particularly encouraging in the near term is the company's low gearing levels in this high interest rate environment."

It seems the wider professional community is largely in agreement with Bromley.

According to CMC Markets, an amazing 10 out of 13 analysts currently rate Goodman shares as a buy. Nine of those classify it as a strong buy.

'Strong revenue figures can be sustained'

The Polynovo Ltd (ASX: PNV) share price is up 12.9% since 7 July.

Bromley noted how well the biotechnology business is doing at the moment.

"PolyNovo has continued to set month-on-month sales records with its biodegradable skin regeneration product."

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

But it's not just a temporary rush, he added.

"We're confident strong revenue figures can be sustained into upcoming results given continuing investment in its US sales force."

Polynovo is also in positive financial health. 

"A capital raising late last year has left the company with a stronger balance sheet."

Bromley's peers are less unanimous about this pick.

While three analysts covering the stock reckon it's a strong buy on CMC Markets, two others have rated it a sell.

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 Goodman Group and PolyNovo. 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 Share Gainers

Man with rocket wings which have flames coming out of them.
Share Gainers

Guess which ASX All Ords stock just rocketed 34% on strong earnings growth

Investors just sent this ASX All Ords stock surging 34%. Here’s what’s happening.

Read more »

A businessman looking at his digital tablet or strategy planning in hotel conference lobby. He is happy at achieving financial goals.
Share Gainers

Why Dimerix, Newmont, Regal Partners, and Titomic shares are storming higher

These shares are having a good finish to the week. Let's see why.

Read more »

Two happy excited friends in euphoria mood after winning in a bet with a smartphone in hand.
Share Gainers

Why Fortescue, Lynas, PEXA, and Regis Healthcare shares are charging higher

These shares are having a strong session on Thursday. But why?

Read more »

A young man talks tech on his phone while looking at a laptop. A financial graph is superimposed across the image.
Share Gainers

Why Capricorn Metals, Insignia, Perseus Mining, and Qoria shares are storming higher

These shares are having a strong session on Tuesday. But why?

Read more »

A man clenches his fists in excitement as gold coins fall from the sky.
Share Gainers

Why Amaero, AMP, Block, and South32 shares are racing higher today

These shares are starting the week on a positive note. But why?

Read more »

Ten happy friends leaping in the air outdoors.
Share Gainers

Here are the top 10 ASX 200 shares today

It was another momentous session for ASX shares this Friday.

Read more »

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Share Gainers

Why BHP, Catalyst Metals, Mesoblast, and Pilbara Minerals shares are shooting higher

These shares are ending the week with a bang. But why?

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

The Mesoblast share price just rocketed 38%! Here's why

ASX investors just sent the Mesoblast share price up 38%. But why?

Read more »