The three ASX shares I'm going to mention in this article are rated as 'buys' by several brokers.
It's quite hard to find businesses that are both good businesses and trading at a good price. Even then, one person might say Commonwealth Bank of Australia (ASX: CBA) and another says that Transurban Group (ASX: TCL) is a better choice.
Investment site MarketIndex regularly collates the ratings of brokers together to assess what the broker community collectively think are opportunities. Of course, this still isn't a guarantee of success – they could all be herding together.
With that in mind, here are three ASX shares that brokers like:
Service Stream Limited (ASX: SSM)
Service Stream is rated as a buy by at least four analysts, it's a communications and utilities engineering company which specialises in building and servicing networks. Two of its biggest clients include the NBN and Optus.
It has consistently grown revenue and underlying earnings per share (EPS) over the past few years with the large infrastructure boom that's going on.
Service Stream could also be one of the most likely businesses to acquire Lendlease Group's (ASX: LLC) Services business according to the Australian Financial Review.
Aristocrat Leisure Limited (ASX: ALL)
Aristocrat is rated as a buy by at least 13 analysts. It's a gambling machine manufacturer and it also operates some online games too.
It's one of the few huge ASX businesses that is growing revenue and profit at a fast pace whilst also having a large amount of earnings generated from overseas. It's an attractive combination for a largely domestic-focused ASX stock market.
The company continues to invest in new products which could grow and diversify earnings further, but some investors may dislike it for ESG reasons.
Star Entertainment Group Ltd (ASX: SGR)
Star is rated as a buy by at least 10 analysts. It's one of Australia's biggest casino companies with a presence in Sydney and Queensland.
It's investing heavily in its Gold Coast, Brisbane and Sydney locations to take advantage of the popularity of Australia and the rise of the wealthy Asian tourist.
For me, one of the most attractive features of Star is its dividend. It maintained its dividend in FY19 and had steadily grown it in the preceding few years. It currently offers a grossed-up dividend yield of 6.2%.
Foolish takeaway
I can see why analysts are attracted to each of these ideas. At the current prices I think I'd go for Service Stream, it's defensive with good growth tailwinds, it's growing its dividend and it keeps winning new contracts.
