‘Happy buyers’: Expert’s 2 ASX shares to grab after boom reporting season

a middle-aged woman holds up two fingers with a wide mouthed smile on her face and wide open eyes.a middle-aged woman holds up two fingers with a wide mouthed smile on her face and wide open eyes.

Reporting season might be fantastic for those who love being bombarded with numbers but for the rest of us, it can be overwhelming.

That’s why it can be helpful to lean on other people’s work and listen to which ASX shares the professionals liked out of the frenzy.

Shaw and Partners portfolio manager James Gerrish had two such tips this week:

This business ‘looks extremely well positioned’

Animal feed provider Ridley Corporation Ltd (ASX: RIC) has enjoyed a 53.5% rise in its share price over the past 12 months.

In the past week, it hit all-time highs after the company released its results.

According to Gerrish, Ridley exceeded market expectations with a 25.4% boost in revenue to $637.9 million.

“No guidance was given but this $712 million 30-year-old business looks extremely well positioned over the years ahead, especially with its 17.5x valuation not being too demanding against a good pathway for growth,” he said in a Market Matters Q&A.

“Market Matters likes this business whose more than 3% fully franked dividend is an added bonus.”

Other professionals mostly agree. According to CMC Markets, four out of the five analysts that cover Ridley currently rate the stock as a buy.

“Also, to add spice to the mix, Andrew ‘Twiggy’ Forrest holds a 6.53% stake in the company through his Tattarang vehicle.”

‘Compelling from a risk/reward perspective’ 

It’s been a year since Russia invaded Ukraine.

As well as the horrendous death toll on both sides and the violent disruption of a democratic country, the war set off a global energy crisis.

One solution that gained momentum is going back to nuclear power.

That method of generating electricity fell out of favour in recent times, especially after the 2011 Fukushima disaster in Japan.

But last year’s events rocketed energy security to the top of the priority list for many governments.

Gerrish revealed that his emerging companies portfolio currently contains uranium miner Paladin Energy Ltd (ASX: PDN).

“We are happy buyers at current levels — around 74 cents on Friday afternoon.”

However, he had a tip for those interested in dipping their toes into nuclear energy.

“Both Paladin and the uranium sector is a volatile space, which we like, but remain keen to keep some ammunition to accumulate into aggressive dips which have occurred regularly over the last 18 months,” said Gerrish

“Another dip towards 65 cents would look very compelling from a risk/reward perspective.”

The Paladin Energy share price is down 3.9% compared to 12 months ago.

The post ‘Happy buyers’: Expert’s 2 ASX shares to grab after boom reporting season 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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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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