If a company has thrived through the past 12 months, one could argue that it is pretty resilient through tough times.
Most ASX shares lost much value in 2022, especially through the first half, as rampant inflation, rising interest rates, war in Europe, and supply constraints put unprecedented pressure on performance.
So if a stock can rise through that muck, then its business model must operate reasonably independently of those external factors.
Two ASX shares that fit this logic were named this week by Seneca investment advisor Arthur Garipoli as buys:
Growth by shopping spree
DGL Group Ltd (ASX: DGL) is in the business of making, distributing, and warehousing industrial chemicals.
It’s an industry that’s notoriously difficult for newcomers to enter and seriously challenge the incumbents. In fact, DGL has been busy acquiring smaller players such as Temples’ chemical storage business and Flexichem Australia.
Perhaps this is why the share price has risen 40.6% over the past 12 months.
Garipoli is definitely impressed with DGL‘s growth.
“Since listing in May 2021, the company has beaten prospectus forecasts and continued to grow aggressively via organic acquisitions,” he told The Bull.
“All acquisitions are, or have the potential to be earnings per share accretive, adding growth to the company going forward.”
Coverage is sparse for the $765 million company, but both analysts currently surveyed on CMC Markets rate DGL shares as a strong buy.
The company is due to report its financials on 30 August.
‘A significant discovery’ that sets up the future
The Galileo Mining Ltd (ASX: GAL) share price is now, incredibly, 359% higher than where it started this year.
Most of that mind-blowing climb came in May, to close Monday at $2.35.
“In early May, Galileo announced a significant discovery of palladium and platinum, which has since resulted in a soaring share price,” said Garipoli.
“The company recently completed a placement at $1.20 a share, with cornerstone investments from major shareholders Mark Creasy and IGO Ltd (ASX: IGO).”
Despite the massive share price, Garipoli feels the May announcement simply puts Galileo in pole position for further gains in the future.
“We believe the company is set up for an extended, uninterrupted period of drilling, assays and results.”
The post Expert names 2 ASX shares to buy for ‘extended, uninterrupted’ good times appeared first on The Motley Fool Australia.
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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 positions in and has recommended DGL Group Limited. The Motley Fool Australia has recommended DGL Group 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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