Fund manager says these 4 ASX shares are attractive opportunities

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The recent market volatility has caused four ASX shares to trade at far more attractive valuations according to Marcus Bogdan from Blackmore Capital.

These are his four choices:

Macquarie Group Ltd (ASX: MQG)

Mr Bogdan pointed out that Macquarie’s first half cash profit of $1.3 billion was ahead of market consensus, with earnings guidance of more than 10% in FY19.

The cancellation of its buy-back was actually a good thing because it had the ability to put the money towards growth opportunities in its existing businesses.

I also like Macquarie, I much prefer it to the other four big banks like Commonwealth Bank of Australia (ASX: CBA) because of its global earnings profile.

Cleanaway Waste Management Ltd (ASX: CWY)

Cleanaway is well placed to deliver consistent earnings growth over the medium-term according to Mr Bogdan. The vertical integration of collections, resource recovery, treatment and landfill provide the company high barriers to entry in an essential industry.

Ramsay Health Care Limited (ASX: RHC)

Ramsay is facing a number of headwinds, however Mr Bogdan thinks that its exposure to the medium to long-term theme of chronic disease and ageing demographics will support health care providers.

The private hospital’s broadening earnings is providing scale and new adjacent revenue streams in primary and specialist care.

Xero Limited (ASX: XRO)

Xero recently revealed 12-month subscriber growth of 24% to 1.58 million and annualised monthly recurring revenue growth of 28% to NZ$589 million.

Mr Bogdan believes that with Xero’s share price falling to a level not seen since April it offers more compelling value.

Foolish takeaway

All four of the above businesses are quality choices and I think they’re likely to beat the market over the long-term.

I’m most interested in buying Ramsay shares, but the current private health insurance affordability may not be sorted any time soon, so I’m holding out for a price below $50.

5 Companies we like better than Ramsay

When ace stock picker Scott Phillips has a buy recommendation, history suggests it can pay to listen.

Scott recently revealed what he believes are the five best ASX stocks for investors to buy right now… and Ramsay wasn’t one of them! That’s right — he thinks these 5 stocks are even better buys.

See the 5 stocks

5 Companies we like better than Ramsay

When ace stock picker Scott Phillips has a buy recommendation, history suggests it can pay to listen.

Scott recently revealed what he believes are the five best ASX stocks for investors to buy right now… and Ramsay wasn’t one of them! That’s right — he thinks these 5 stocks are even better buys.

See the 5 stocks

 

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