5 high-conviction ASX 200 shares to buy

MotleyFool
18 May

When it comes to investing, quality matters. You want strong business models, capable leadership, and positive long-term growth outlooks.

While the market can be unpredictable in the short term, analysts think the five ASX 200 shares listed below are built to deliver strong returns for investors over time.

Here's why they could be high-conviction buys for investors focused on the next five to ten years.

Domino's Pizza Enterprises Ltd (ASX: DMP)

Domino's is the master franchise holder for the Domino's Pizza brand across Australia, New Zealand, parts of Asia, and Europe. Its business is highly scalable and cash-generative, with an ongoing focus on digital innovation and international store expansion.

While recent headwinds have challenged margins, Domino's remains well-positioned to grow its footprint and restore profitability as operating conditions improve.

Goldman Sachs rates Domino's as a buy with a $37.30 price target.

James Hardie Industries plc (ASX: JHX)

Another ASX 200 share to look at is James Hardie. It is a global leader in fibre cement building materials, with major exposure to the U.S. housing and renovation market. Its products are known for durability and energy efficiency, making them increasingly attractive in a sustainability-conscious world.

The company has a long growth runway as the U.S. housing cycle recovers, and its premium product strategy and cost discipline continue to support earnings leverage.

Bell Potter has a buy rating and $63.00 price target on its shares.

WiseTech Global Ltd (ASX: WTC)

WiseTech is a logistics technology company whose flagship platform, CargoWise, helps freight forwarders and customs brokers streamline global trade.

It operates across the world and benefits from sticky enterprise contracts, high margins, and consistent product innovation. With a founder-led team and a clear global growth strategy, WiseTech could be a standout in the ASX tech sector.

Morgan Stanley has an overweight rating and $140.00 price target on its shares.

Woolworths Group Ltd (ASX: WOW)

A fourth ASX 200 share to consider is Woolworths. It is Australia's largest supermarket operator and a trusted brand with deep customer reach across food, pet supplies, and everyday essentials.

It may not be a hyper-growth stock, but its defensive earnings base, scale advantages, and technology investments make it a dependable compounder over time.

Goldman Sachs is a fan and rates Woolworths as a buy with a $36.50 price target.

Xero Ltd (ASX: XRO)

Finally, Xero could be an ASX 200 share to buy. It is a cloud-based accounting software provider serving small and medium-sized businesses across Australia, New Zealand, the UK, North America, and beyond.

Its subscription model delivers high recurring revenue and global scalability, and recent shifts toward operating efficiency have supercharged profitability. With plenty of room to grow internationally, Xero is arguably one of the most promising long-term tech stories on the ASX.

Goldman Sachs also has a buy rating and $205.00 price target on its shares.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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