Investing in high-quality companies with a long-term perspective is arguably one of the best ways to grow your wealth. Allowing your investments time to compound can significantly enhance your returns and wealth creation.
As the saying goes, the cream always rises to the top, and this holds true in the share market. The very best companies often deliver the best returns over the long term. But which ASX 200 shares could be considered high quality? According to analysts, here are three that could be strong buys right now:
CSL Limited (ASX: CSL)
CSL Limited is potentially one of the highest-quality companies on the ASX boards. As one of the world's leading biotechnology firms, it operates several businesses that are leaders in their respective fields, including CSL Behring, CSL Vifor, and Seqirus. These businesses focus on blood plasma products, kidney therapies, and vaccines, respectively.
CSL continuously reinvests approximately 12% of its revenue back into research and development each year. This ensures a robust pipeline of potentially lucrative treatments. Macquarie is very optimistic about CSL's prospects, predicting that its shares could reach $500 in the coming years. In the short term, the broker has given the company an outperform rating with a price target of $330.00.
Goodman Group (ASX: GMG)
Another high-quality ASX 200 share for investors to consider is Goodman Group. This leading integrated commercial and industrial property company boasts a world-class portfolio of assets in key global locations.
Strong demand for Goodman's assets has driven impressive earnings growth over the past decade. Morgan Stanley believes this positive trend can continue, particularly given Goodman’s exposure to artificial intelligence through its data centre pipeline, which is expected to be a significant growth driver. Morgan Stanley has an overweight rating on Goodman Group with a price target of $36.65.
ResMed Inc. (ASX: RMD)
Bell Potter recommends ResMed Inc. as a high-quality ASX 200 share to buy. ResMed is a leader in the treatment of sleep disorders, including obstructive sleep apnoea (OSA) and chronic obstructive pulmonary disease (COPD).
The market for OSA and COPD remains underpenetrated, and Bell Potter expects industry volume growth to continue in the 6-8% range for the foreseeable future. This favorable outlook bodes well for ResMed’s sales and earnings growth over the next decade. Additionally, one of its key competitors is currently dealing with a major product recall, further enhancing ResMed’s market position. Bell Potter has a buy rating on ResMed shares with a price target of $36.00.
In summary, analysts have identified CSL Limited, Goodman Group, and ResMed Inc. as high-quality ASX 200 shares with strong growth potential. These companies have demonstrated leadership in their respective fields, robust growth strategies, and promising outlooks, making them top buys for investors looking to grow their wealth.
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