If you are looking for some investment opportunities in the South African stock market, you might be wondering what are the best selling shares to buy right now. In this blog post, we will give you some tips and insights on how to find the best shares for your portfolio, based on their performance, valuation, growth potential and broker ratings. We will also attach some relevant links where you can find more information and analysis on these shares.
One way to start your search is to look at the JSE Top 40 index, which is a benchmark index that tracks the performance of the 40 largest and most liquid companies listed on the Johannesburg Stock Exchange (JSE). The JSE Top 40 index is a fair reflection of what happens to the South African stock market as a whole because even though it contains only 40 out of the roughly 400 shares listed on the JSE, it represents over 80% of the total market cap of all JSE listed companies .
The JSE Top 40 index covers a diverse range of sectors, such as mining, banking, retail, telecoms, media, technology and healthcare. Some of the most well-known and popular companies in the index are Naspers, British American Tobacco, Anglo American, MTN, Shoprite, Sasol and Capitec. You can find the full list of the JSE Top 40 constituents and their current share prices here .
However, just because a share is part of the JSE Top 40 index does not mean that it is automatically a good buy. You also need to consider other factors, such as the company’s fundamentals, growth prospects, competitive advantage, dividend policy and valuation. You also need to compare the share price with the broker ratings and price targets, which are based on the opinions and forecasts of professional analysts who follow these companies closely.
One source where you can find the long-term broker ratings and price targets for the JSE Top 40 shares is this article , which provides a table with these data as of February 2021. The table also shows whether these targets are at a discount or premium to the current share price valuations. The long-term (12 months +) broker ratings and price targets for these shares are a median of estimates sourced from Refinitiv Data (formerly Thomson Reuters).
According to this table, some of the best shares to buy in South Africa right now based on their broker ratings and price targets are:
– British American Tobacco: This tobacco giant has a strong buy rating from two brokers and a target price of R770, which implies a massive upside potential of 30.21% from its current share price of R532.77 . The company has a solid track record of delivering consistent earnings and dividends growth, despite facing regulatory challenges and declining smoking rates in some markets. The company also has a diversified portfolio of products, including cigarettes, heated tobacco and vaping devices.
– Gold Fields: This gold mining company has a buy rating from 11 brokers and a target price of R180, which suggests a significant upside potential of 26.49% from its current share price of R132.31 . The company has benefited from the surge in gold prices in 2020 due to the Covid-19 pandemic and the global economic uncertainty. The company has also improved its operational efficiency, reduced its debt levels and increased its cash flow generation. The company also pays an attractive dividend yield of 4.54% .
– Naspers: This media and internet conglomerate has a buy rating from 11 brokers and a target price of R4960, which indicates a substantial upside potential of 23.67% from its current share price of R3786 . The company’s main asset is its 29% stake in Tencent, the Chinese tech giant that owns WeChat, QQ, Honor of Kings and other popular online platforms. The company also has investments in other online businesses such as e-commerce, food delivery, classifieds and fintech across emerging markets.
– MTN: This telecoms operator has a buy rating from 11 brokers and a target price of R90, which implies an impressive upside potential of 18.96% from its current share price of R72.94 . The company is one of the largest mobile network providers in Africa and the Middle East, with over 280 million subscribers. The company has been focusing on expanding its data and digital services revenue streams, as well as reducing its debt levels and resolving its regulatory issues in some markets.
– Shop
