If you're lucky enough to have $5,000 ready to invest into ASX shares, then it could be worth checking out the three named below that I have picked out.
That's because they have all been labelled as buys by brokers and tipped to rise strongly from current levels. Let's see what they are saying about them:
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Capricorn Metals Ltd (ASX: CMM)
If you're looking for exposure to the soaring gold price, then Capricorn Metals could be the way to do it. It is the gold miner behind the high quality Karlawinda Gold Project (KGP) in Western Australia.
Bell Potter is a big fan of the company and has a buy rating and $6.53 price target on its shares.
It likes the company due to its strong track record and positive production growth outlook. It commented:
CMM's management team has a track record of capital efficient project funding, development, commissioning and operation. In our view, FY25 and FY26 should benefit from higher revenue and EPS increases by 32% and 6% respectively. CMM is a sector leading gold producer with a strong balance sheet, a management team with an excellent track record of delivery and clear organic growth options to lift group production to 270kozpa.
Qantas Airways Limited (ASX: QAN)
Another ASX share to consider for a $5,000 investment could be Qantas Airways. It is of course Australia's flag carrier airline and the operator of the Qantas and Jetstar brands.
Goldman Sachs currently has a conviction buy rating and $8.05 price target on its shares.
Its analysts believe the market is undervaluing the Flying Kangaroo's shares. Particularly given its structurally stronger earnings following the transformation of its business model. It said:
Our FY24/25 PBT remains 51%/61% ahead of pre-COVID level despite relatively conservative/cautious RASK forecast settings. We forecast QAN's FY24e/25e EPS to be at 49%/68% ahead of FY19. Despite this, QAN's market cap is 4% below and EV is 7% below pre-covid levels. We believe that QAN's continued demonstration of earnings sustainability will be the key driver of earnings revision hence share price going forward.
Woolworths Group Ltd (ASX: WOW)
A final ASX share that could be worth considering for a $5,000 investment in Woolworths. It is the retail giant behind the eponymous Woolworths supermarket brand, as well as BigW and a number of other businesses.
Goldman Sachs is also a big fan of Woolworths and has a conviction buy rating and $40.20 price target on its shares.
It likes the company due to its defensive qualities, positive growth outlook, and attractive valuation. Goldman explains:
WOW is the largest supermarket chain in Australia with an additional presence in NZ, as well as selling general merchandise retail via Big W. We are Buy rated on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as its ability to pass through any cost inflation to protect its margins, beyond market expectations. The stock is trading below its historical average (since 2018), and we see this as a value entry level for a high-quality and defensive stock.
