As the earnings season draws near, investors are preparing for a flood of reports that may significantly impact stock prices.
For individuals aiming to establish their presence early, a few ASX stocksblue chipsdistinguish themselves as possible victors due to their solid foundations and enduring expansion factors.
Here are three major companies in the ASX 200 that may be worth looking at before the financial results are released.
CSL Ltd (ASX: CSL)
A leading global biotechnology company, CSL, may present an excellent opportunity for investment at the moment. Particularly given that its stock is currently valued at below average multiples.
Bell Potter recently observed that its stock is currently trading at approximately 22 times future earnings, significantly lower than its usual average of about 31. This might present a compelling opportunity for those looking to invest over the long term.
Especially considering that the market is of the opinion that CSL is in a strong position to achieve double-digit earnings per share growth annually for the foreseeable period.
Bell Potter currently holds a buy recommendation and has set a target price of $305.00 for its stock.
REA Group Ltd (ASX: REA)
Another major ASX stock that may present a strong purchasing opportunity is REA Group. It operates the leading realestate.com.au website.
The REA Group’s online platform leadership enables it to generate ad income despite fluctuations in property listings, while its expanding range of related services — including mortgages and data — supports revenue diversification.
As property listings are anticipated to increase with declining interest rates, REA Group may experience a boost in both sales volume and income in the short term. The company’s high-margin, low-capital business model ensures that any rise in revenue typically leads to significant earnings growth, making it a stock worth monitoring before the results are released.
Morgan Stanley supports the company and maintains an overweight rating, with a price target of $280.00 for its stock.
ResMed Inc. (ASX: RMD)
A concluding ASX blue-chip stock to consider purchasing might be ResMed, a company specializing in sleep disorder treatments.
It has performed well this year, generating consistent revenue and profit growth due to rising demand for its masks and software. Additionally, with a market potential of more than 1 billion people, it still has significant growth remaining.
Therefore, as the stock continues to trade under its historical average multiples, investors could see opportunity as another reporting period approaches.
Macquarie believes it could be a suitable choice for investors. Their analysts have recently assigned an outperform rating and set a price target of $48.00 for the stock.
The post 3 top ASX stocks to consider before the earnings period appeared first on The Motley Fool Australia.
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Motley Fool contributor James Mickleboroholds shares in CSL, REA Group, and ResMed. The Motley Fool Australia’s parent company, Motley Fool Holdings Inc., holds stakes in and has advised on CSL, Macquarie Group, and ResMed. The Motley Fool Australia holds shares in and has advised on Macquarie Group and ResMed. The Motley Fool has recommended CSL. The Motley Fool has adisclosure policy. This article provides general investment guidance only (under AFSL 400691). Approved by Scott Phillips.
