Top 3 ASX 200 Stocks To Consider For Your Next Investment
The ASX 200 dipped today by 0.59% or 43 points. The markets have come under pressure since the highs of August. With inflation fears, pressure continues to be present.
On the bright side, borders are set to open and in a reopening theme, there are several ASX stocks to consider at a cut price. These stocks have consolidated recently and we think it is a good time to consider them.
Our List of top ASX 200 stocks to Buy
A2 Milk (ASX: A2M)
The a2 Milk Company is a producer of milk containing just the A2 protein. The firm does this by using cows that naturally produce just the said protein. The a2 Milk brand was expanding very quickly across ANZ and parts of SouthEast Asia. Their entry into China proved to be very successful and A2M was growing at over 60% year-on-year.
In order to sell in China, A2M relied heavily on the Daigou channel and given that travel has been non-existent between the two countries and with no resumption not in sight, shares began to plunge in early December as soon as the company downgraded its outlook for the financial year once again.
Now, as borders are set to open, A2M shares may finally have a break. Following downgrades by the firm, A2M shares now trade at $6.21 a share. This price means that A2M shares now trade at a very low multiple. In our opinion, this is worth considering for investors. A2M is quality growth stocks and is one of the ASX shares to buy now.
AGL Energy (ASX: AGL)
AGL Energy used to be considered as a top quality ASX stock. However, AGL shares have been on a downward spiral since the pandemic crash in 2020. AGL retails electricity to wholesale markets and customer markets. Wholesale electricity prices are plunging, and renewables are surging, and AGL is caught right in the thick of this storm and there looks to be no way out.
The debate around climate change is intensifying in political, corporate and investor circles. Many investors have been aligning their portfolio by divesting from commodities that are harmful for the environment solely from an ethical standpoint. Thus, this entire sector is suffering from – a fundamental shift and a cultural shift.
Now, with AGL demerging, there can be value in the AGL share price. Under the demerger proposal, AGL Energy will become Accel Energy Limited (previously referred to as “PrimeCo”), an electricity generation business focused on the accelerating energy transition. Accel Energy will demerge a new entity, AGL Australia Limited (previously referred to as “New AGL”), a multi-product energy-led retailing and flexible energy trading, storage and supply business. AGL Australia will retain the AGL brand.
Essentially, AGL is looking to split into a retailing arm with clean energy assets and another arm for its coal-fired power stations, which are swiftly losing value as customers and investors seek cleaner, greener alternatives. AGL shares currently trade at $5.24 a share with a dividend yield of 12%.
Qantas Airways (ASX: QAN)
Despite the good news of an imminent reopening of the borders, Qantas share price slumped today by 4%. This is an opportunity to add an ASX growth stock in our opinion.
On a positive note, Australia has eased border restrictions starting from the 1st of December. With a lot of pent up demand for visa holders to come to Australia, we reckon it will be profitable for the airline. As we move into the holiday period, Qantas will also benefit from increased domestic travel.
The company intends to soon begin operating flights between Brisbane and Launceston for the first time. The new flights will see an extra 15,000 seats available to fly between the cities each week.Qantas is ramping up its domestic operations. Thus, it is the eighth new route the airline has introduced since Australia’s international borders shut. According to the company, demand for flights to and from Tasmania has increased alongside the number of Australians’ seeking out domestic holidays.
Qantas shares trade at $5.26 a share.
