The companies have been selected for their attractive share price and encouraging prospects for medium to long-term investors.<\/p>\n
The five local stocks you should consider, explaining why these investment professionals find these companies to be a good buy, are listed below.<\/p>\n
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Standard Bank<\/strong><\/p>\n Standard Bank Group Limited is a major South African bank and financial services group and is Africa’s biggest lender by assets.<\/p>\n Du Toit said Standard Bank offers good value in 2023 as it now wholly owns Liberty, allowing the group to reorganise its capital stack – meaning it’ll have more capital to inject into the business.<\/p>\n The bank also has a lot of space for cost optimisation, as the market has seen with Nedbank.<\/p>\n Over the past year, Standard Bank showed returns of around 15%, outperforming both the industry average and the South African market – which returned 2.3% and -5.8%, respectively.<\/p>\n Prospective investors can expect a continued return of around 15% from Standard Bank over the next few years.<\/p>\n At its current trading price of R177.97,\u00a0 Du Toit added that the stock is currently trading at 21.8% below its historical high, and one could expect a dividend yield of between 7% and 8% – which offers a great return on your investment.<\/p>\n OUTsurance<\/strong><\/p>\n OUTsurance Holdings Limited, commonly referred to as OUTsurance, is a subsidiary of OUTsurance Group Limited, a South African-based financial services investment holding company.<\/p>\n Daswa said the group looks promising, with a strong management team that recently executed the company’s transition and rebrand from Rand Merchant Investment Holdings (RMI).<\/p>\n OUTsurance also has enough cash to cover all of its debt, and its financial situation is stable.<\/p>\n The group’s price-to-earnings ratio is also close to its 10-year low of 2.35, while its stock dividend yield is close to a 1-year high.<\/p>\n OUTsurance’s share price is currently trading at R35.3, which is 3% below its historical high – offering a current dividend yield of 2.4%.<\/p>\n MTN<\/strong><\/p>\n MTN is a South African multinational mobile telecommunications company that operates in many African countries and holds a 37% market share in South Africa.<\/p>\n The Group\u2019s revenue has grown by 152.2% over the past year, with an earnings forecast of around 16.5% per year in the near term.<\/p>\n Based on its latest financials, Fisher believes that the business is showing resilience in a dampened economy, with a turnover growth forecast in the mid-teens.<\/p>\n He added that MTN is also looking to drive its return on equity up to around 25% in 2023.<\/p>\n Fisher believes MTN is performing exceptionally, noting that expectations of an increase in headline earnings of 30% for the full year’s financials are still underplaying it.<\/p>\n MTN is currently trading at R144.4, and some estimate this to be 58.9% below its fair value, with Fisher adding that PSG currently values the share at around R218.<\/p>\n The group also indicated a dividend of at least R3.30 a share – making it a very attractive buy.<\/p>\n Super Group\u00a0<\/strong><\/p>\n Super Group Limited provides logistics and supply chain management services throughout South Africa.<\/p>\n The Group provides truck rental, third-party distribution services, cross-border transport, freight management, and trading operations – with a big portion of its operations in Australia.<\/p>\n Williams believes that Super Group offers a great opportunity for buyers as the rand has weakened, making the group quite defensive in its earnings.<\/p>\n He added that its latest financials are also in good standing, with earnings up over 30% over the past year.<\/p>\n Super Group is currently trading at R32 and has increased year-to-date by 19.3%, outperforming the all-share and the top-40 indices by 10.1% and 1.7%, respectively.<\/p>\n Anglo American<\/strong><\/p>\n Anglo American is a British-listed multinational mining company and the world’s largest producer of platinum, accounting for about 40%, and is a major producer of diamonds, copper, nickel, iron ore and steelmaking coal.<\/p>\n The company showed a solid performance in its latest financials, and Brink noted that it’s well-diversified, with operating margins expanding – which is a really good sign.<\/p>\n Anglo American is currently trading at R702 per share, which is close to 15% below its historical high – with a forward PE of just over 9 times.<\/p>\n Brink believes the company is a really good buy in February 2023, offering a forward dividend of 4.3%.<\/p>\n![\"\"](\"https:\/\/businesstech.co.za\/news\/wp-content\/uploads\/2023\/02\/Standard-Bank.png\")
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