The February ASX Reporting Season has now wrapped up with the winners already seeing their share prices rocket.
However, it’s not too late to jump on some of those, with experts predicting even bigger and better results in the coming years.
Here are two examples that the team at the Elvest Fund is backing:
Looping forward to ‘strong earnings growth’
Mining technology services provider RPMGlobal Holdings Ltd (ASX: RUL) is going gangbusters.
“RPMGlobal rallied 24% during February, having delivered first half EBITDA of $10 million, which was up 89% on the pcp,” Elvest analysts said in a memo to clients.
That result was positive enough, but the team likes the outlook even more.
“RPMGlobal indicated that demand for its software was increasing across multiple geographies, which, alongside flattening research and development spend, should drive strong earnings growth in coming periods.”
RPMGlobal shares are now among the five biggest investments for the Elvest Fund.
The team is far from the only ones bullish on the stock, with CMC Invest showing both Moelis Australia and Veritas Securities rating RPMGlobal as a strong buy right now.
‘Excited’ about the future for these ASX shares
The Lovisa Holdings Ltd (ASX: LOV) share price has surged almost 24% since reporting season.
The Elvest team explained the first-half result was “better than expected”.
“EBIT [was] up 16% to $82 million, in part driven by a near record gross profit margin of 80.7%.
“Recent like-for-like sales turned positive, which bodes well for second half earnings.”
Like RPMGlobal, there are further potential catalysts coming for Lovisa.
“Looking beyond FY24, we remain excited about the company’s aggressive global store roll program, which could ultimately double or triple the existing footprint of 860 stores across over 40 markets.”
Lovisa is also among the top five holdings for Elvest.
The jewellery retailer also has many fans in the professional community. According to CMC Invest, eight out of 13 analysts currently recommend Lovisa as a buy.
The post 2 ASX shares that could keep flying after a massive reporting season appeared first on The Motley Fool Australia.
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More reading
- 4 Australian shares set to soar in 2024
- Why Coles, Liontown, Lovisa, and Wildcat shares are dropping today
- Key takeouts for ASX shares this earnings season: CBA analysis
- Why is the Lovisa share price sinking today?
- 34 ASX 200 shares with ex-dividend dates next week
Motley Fool contributor Tony Yoo has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and RPMGlobal. The Motley Fool Australia has recommended Lovisa and RPMGlobal. 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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