If I were investing some money in March 2022, I know that there are some great ASX shares that I can buy. Plenty of excellent ideas are significantly cheaper now than they were at the start of the year.
I always think there are opportunities to be found. But sometimes there can be plenty more good ideas when the market has fallen.
In my opinion, these three ASX shares are great options:
Metcash Limited (ASX: MTS)
The Metcash share price has fallen by almost 10% since the start of the year. I think Metcash is a very useful business, which trades much cheaper than Wesfarmers Ltd (ASX: WES) when comparing their earnings multiples.
The reason why I compare Metcash to Wesfarmers is that the best and biggest profit generator for Metcash is now the hardware division which includes Home Timber & Hardware, Mitre 10 and Total Tools. This is somewhat similar to Wesfarmers’ Bunnings. It’s a real quality segment for Metcash.
Metcash’s food division provides predictable, pretty consistent performance. Liquor is another growth area for Metcash, though not as strong as hardware.
The ASX share is investing in a number of areas, including digital, to help long-term growth. It’s also a handy bonus that Metcash is operating an attractive dividend yield.
Xero Limited (ASX: XRO)
Xero is probably one of the very best businesses on the ASX. It is a global software business that provides business operations and accounting technology for businesses, accountants and advisors.
It has been a rough 2022 for the company so far – the Xero share price has sunk 34%.
Xero is growing its global subscriber numbers at an impressive rate. This alone makes it attractive. But what I really like is that the Xero gross profit margin is very high and keeps rising. This means the business is becoming even more profitable over time. It’s just that the ASX share is re-investing most of the cash flow back into the business to fund even more long-term growth over time.
I think Xero can become one of the biggest businesses on the ASX over time with the way that it’s growing its annualised revenue as well as increasing profitability. There will come a time when the business doesn’t need to re-invest so hard. That’s when the profit will shine through.
Betashares Global Quality Leaders ETF (ASX: QLTY)
This isn’t a typical ASX share. It’s actually an exchange-traded fund (ETF) that invests in a global portfolio of some of the best global businesses.
To have a chance of an international business making it into the portfolio, there are four good attributes that the company must demonstrate: return on equity (ROE), the debt to capital ratio, cash flow generation ability and earnings stability.
I really like this ETF because it offers things that some popular ETFs don’t. It has global diversification across countries and industries. It has a high-quality portfolio, not just an average portfolio. The QLTY ETF has a low management fee of just 0.35%. Many active fund managers might charge at least 1% of assets compared to the cheap fee of this ETF.
At the time of writing, these are the biggest 10 positions in the portfolio: Advanced Micro Devices, Visa, AIA, United Health, Cisco Systems, Intel, Johnson & Johnson, Applied Materials, Alphabet and Microsoft. There are a total of 150 names.
The QLTY ETF has fallen 16% since the start of the year.
