ASX Stocks to Buy: Protect Your ASX Stocks with Blue Chip Stocks
There are over 2000 ASX stocks to Buy and thousands of ASX Stocks vying for your investment dollar. It’s easy to trade stocks with your online account but it becomes overwhelming to know which ASX stocks to buy.
The ASX Stock market is very high, so is it the right time to buy ASX stocks?
Under the Radar Report is set up to make investing in the ASX stock market easy and we help you choose which ASX Stocks to Buy and help you choose the right time to buy.
Our Stock Market wrap: Stock fundamentals look good
The ASX is at record highs but the fundamentals of stocks actually look pretty good: aggregate earnings are holding up, and the average earnings multiples are only trading at slightly higher than long-term averages.
But the ASX stock market is definitely hot. The truth is that if you are a CEO of any major Blue Chip corporate you would think twice about any heavy investment programme given the global uncertainty about the level of tariffs, capacity restraints, skills shortages… I could go on.
What does an ASX stock investor do?
At Under the Radar: Blue Chip Value we have been advocating a defensive stance, which has meant that our ASX stock portfolio is outperforming its benchmark, the S&P/ASX 200 Index.
Protect Your portfolio with Blue Chip ASX stocks
We analyse ASX stocks for a living and outline which companies are worth buying that can protect your stock portfolio from volatility. We must emphasise that all the stocks in our Blue Chip Value Stock Portfolio pay dividends, which is one element that helps protect any investor from capital losses; but another is the different industries that we are overweight in.
Quantitative and Qualitative ASX Stock Research showing you which ASX stocks to buy
A key reason our valuation model is delivering strong returns is that we look at forecast earnings and dividends plus stock volatility to generate our Under the Radar price targets that are then used to direct our strategy and trades. We want you to use these targets to generate strong returns for your portfolio too.
Banking Stocks to Buy on the ASX
Notwithstanding the negative news that has befallen the banks around the Royal Commission, the ASX banking stocks’ earnings have held up well and loan default rates are still very low, even amid house price weakness in the major centres. One of Under the Radar's stock analysts went to a fintech conference recently and doesn’t see any real competitive threats to banks or the industry structure. We are comfortable being overweight banks. Our Blue Chip Stock Report tells you which banking stocks to buy now. Which is the best right now? Do you buy ANZ, NAB, CBA or WBC?
Resources Stocks to Buy on the ASX
On the resources front, China continues to hold up, and we like that the big miners are using elevated commodity prices to return capital back to shareholders rather than just spending up on new investments. We cover Rio Tinto, Alumina, Bluescope Steel, BHP and South32.
US Stock Market and interest rates
Valuation wise, equities are flying high, but nowhere is higher than the US. The average US blue chip stock is more expensive than those on the ASX. Interest rates are still so low that ASX stock dividend yields are increasingly competitive (against anything) at just over 5%. It’s plausible that while the US Fed is in interest rate cutting mode, these high yields will be sustained.
In the reporting season we will be analysing balance sheets and outlook statements. It’s the ability of the Blue Chips to weather weak consumer sentiment through either acquisitions and/or capital returns (we prefer dividends) that will hold them in good stead.
Use our Blue Chip Australian Stock Report to learn which ASX Stocks to Buy.
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