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There are several qualities S&P/ASX 200 Index (ASX:XJO) stocks that this writer thinks are good buys right now, especially during this volatility.
In my opinion, it is periods of market decline that may end up being the most attractive time to buy due to lower prices.
Who knows how long these prices will stay where they are? They could go lower, or higher, from here.
But, at current levels, I think these two ASX 200 stocks look like good options.
Goodman is one of the largest real estate companies in the ASX. This ASX 200 stock is a major developer, owner and operator of industrial properties worldwide.
The company is benefiting from the strong demand for logistics and e-commerce real estate. That’s why he works on such a large pipeline of potential opportunities. As of March 31, 2022, Goodman had $13.4 billion in development work underway on 89 projects.
Customer demand also contributes to the company’s rental profit. Last quarter, it reported 3.7% like-for-like growth in net property income (NPI) from its managed partnerships. In addition to attractive growth in rental income, it also posted a high occupancy rate of 98.7% across all of its partnerships.
In a rising interest rate environment, I think it’s good that Goodman has a low level of leverage. As of December 31, 2021, its leverage ratio was 7.2% and it has more than $2 billion in cash.
Ongoing work on projects and valuation gains from existing properties helped its total assets under management (AUM) reach $68.7 billion. The company expects this amount to exceed $70 billion by June 30, 2022.
The ASX 200 stock expects to achieve 23% growth in operating earnings per share (EPS) for fiscal year 2022.
I think Goodman’s stock price looks attractive after its 26% drop in 2022.
I think BHP is one of the highest quality resource companies on the ASX.
The diversified nature of BHP’s commodity portfolio appeals to me. In the near future, it will sell its oil activities to Woodside Energy Group Ltd (ASX: WDS). He will have the following foodstuffs left: iron, metallurgical coal (steel industry), copper, nickel and potash.
I’m particularly excited about the company’s plans for potash, which is a type of fertilizer. It’s an attractive growth area because it’s considered “low-emissions, biosphere-friendly, and pro-decarbonization.”
BHP says strong fundamentals and a mature existing asset base provide an attractive entry opportunity with its Jansen potash asset in Canada.
The ASX 200 mining share indicates that it will be able to achieve large-scale production at low cost, which will lead to an attractive profit margin with the raw material.
I think BHP can continue to benefit from good commodity prices, which will translate into strong cash flow, which can translate into hefty dividends.
As BHP shifts its focus to greener commodities, such as copper and potash, I believe this will become more attractive to ESG-focused investors.