2 ASX shares ready for growth in FY2023: expert

Yes, this year has been pretty bad for mankind and investments. But remember that stocks aren't aware of global events nor do they have memory.

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There is no doubt 2022 has been distressing.

Innocent people are fighting a war in Ukraine, the most vulnerable folks in society are devastated from skyrocketing energy and food prices, and investment portfolios have plunged deep into the red.

As investors, it's instinctive to get caught up in the negativity. We are all just humans, after all.

But for our ASX shares portfolio, it is prudent to remember that stocks have no memory and no awareness of world events.

They are simply pieces of ownership in a company.

So when there are rational reasons for a business to have a bright outlook for the 2023 financial year, perhaps it's worth considering buying stocks in it.

With this philosophy in mind, here are two ASX shares that one expert reckons are ripe to buy now:

two children squat down in the dirt with gardening tools and a watering can wearing denim overalls and smiling very sweetly.

Image source: Getty Images

'A strong market update'

Ord Minnett senior investment advisor Tony Paterno reckons National Storage REIT (ASX: NSR) is a buy at the moment.

"The big self-storage provider recently posted a strong market update for fiscal year 2022," he told The Bull.

"Net tangible assets are expected to increase to $2.34 a share, a 13% increase on December 31, 2021."

As a comparison, National Storage shares closed Monday at $2.38.

Paterno likes the outlook for the coming period.

"It upgraded underlying earnings guidance to a minimum of 10.5 cents a share," he said.

"The update, on the back of a strong operating performance, positions it well for growth in the new financial year."

National Storage is handing out a dividend yield of 4.2%, according to Google Finance.

Paterno's peers aren't quite as convinced yet about the storage provider. According to CMC Markets, only two out of 10 analysts are rating the stock as a buy.

'Expect continuing growth'

Four-wheel drive accessories maker ARB Corporation Limited (ASX: ARB) is another that Paterno is urging his clients to buy.

The company's share price has dropped almost 41% so far this year. However, it has gained in excess of 5.4% over the past month.

Paterno believes in the company's long-term expansion.

"We expect continuing growth in 4-wheel drive markets in the medium term," he said.

"We expect the ARB store network to grow in Australia. Company products should also expand in overseas markets."

Other professionals are more in agreement with Paterno for this pick than National Storage.

Six out of nine analysts surveyed on CMC Markets currently rate ARB shares as a buy.

A Market Matters report last month identified the stock as one that's probably passed its worst conditions.

"It's starting to feel like things are as bad as they can get for ARB," the report read.

"It's now trading on 19.6x FY22 earnings compared to a 5-year average of 27.5x… This is one retailer we like into excessive weakness."

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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