Wise long-term investors will have been using this year’s depressed market to snap up some bargains.
However, when the whole market is so down in the dumps, you can’t possibly keep track of all the cheapies out there.
That’s why it’s worth listening to some experts who have spotted some excellent candidates:
With interest rates looking very likely to rise this year, finance and insurance ASX shares have already been tipped by many analysts as value plays.
But one name that hasn’t popped up too much is Challenger Ltd (ASX: CGF).
The annuities and income funds provider is a buy in Morgans investment advisor Jabin Hallihan’s book at the moment.
“A key feature of these products is they distribute cash flow and protect against market movements and inflation risks,” he told The Bull.
“Such products appeal for their stability, particularly during times of market volatility.”
The stock could potentially be at an attractive entry point right now, having fallen more than 4% this year so far.
Hallihan’s team has a 12-month price target of $7.74, which is an 18% upside.
Challenger shares also return a handy dividend yield of around 3.35%.
Australians need healthcare, regardless of what else is happening
Healthcare is one of those sectors that is somewhat resistant to economic and interest rate cycles. People will always need to take care of their health.
As such, Wilsons investment advisor Peter Moran would currently buy shares in Integral Diagnostics Ltd (ASX: IDX).
“This diagnostic imaging services company recently undertook a $90 million capital raising to fund the acquisition of Peloton Radiology.”
The Integral share price has fallen close to 23% so far this year.
Moran admitted February financials were not favourable, but expected the underperformance to be temporary.
“First half 2022 operating net profit after tax was down 21.7% on the prior corresponding period,” he said.
“The result was impacted by COVID-19 restrictions. However, with restrictions easing, we expect profitability to recover as margins improve and recent investments in their business start to produce a return.”
Moran’s team holds an overweight recommendation on Integral shares.
The stock is somewhat polarising, with CMC Markets showing 6 of 13 analysts rating it as a strong buy while 5 label it as a hold.
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