2 quietly achieving ASX shares to pounce on right now: Morgans

Former prime minister Scott Morrison loved to talk about the “quiet Australians”.

That was his nickname for those ordinary citizens who saw themselves working hard in their daily lives without complaint or fuss.

Similar to this, there are some ASX shares that quietly deliver value back to investors without much fanfare.

In the wash-up after reporting season, Morgans analyst Andrew Tang picked out two such performers that investors may not have heard of but definitely need to consider:

Solid growth to continue for healthcare provider

Shares for healthcare facilities operator Healius Ltd (ASX: HLS) have dropped more than 31% so far this year.

But it has rewarded long-term investors with a 76% gain since the March 2020 COVID-19 market crash or an 18.9% boost from the pre-pandemic price.

Plus Healius is currently paying out a handy 4.7% dividend yield.

Tang said in a Morgans Best Call To Action memo that the financial year 2022 results met expectations with “double-digit revenue growth and ongoing cost outs driving leverage and robust cash flow”. 

“Not surprising, COVID testing underpinned the result, while imaging and day hospitals went backwards on COVID-impacted elective surgery restrictions, lockdowns and increased costs.”

Specific numerical forecasts are difficult due to the continuing uncertainty with the coronavirus. But qualitatively, Healius ticks all the boxes for Morgans to rate it as a buy.

“We believe well managed costs, ongoing efficiencies and growth initiatives, and strong balance sheet, not to mention some continued level of COVID testing and an eventual rebound in demand from the backlog in diagnosis and surgery, lays the groundwork for solid growth.”

Quiet achiever with quiet results

Generation Development Group Ltd (ASX: GDG), formerly Austock, is a name you hardly hear of these days.

The investment bond product provider has indeed been a quiet Australian, returning more than 54.4% for its shareholders through all the global chaos over the past five years.

True to character, Tang reckons Generation Development didn’t put out “any obvious surprises” in its financial report, which is great news for investors.

“In our view, this was a pretty clean result, and it represented a relatively solid performance overall,” said Tang.

“Management also noted FY23 has seen a good start to the year for investment bond sales, albeit outlook commentary was pretty broad as per usual.”

The Morgans team lifted Generation Development’s earnings forecasts by 10% to 15% due to growth in the investment bond and Lonsec businesses.

“We continue to believe GDG is well positioned to execute a compound earnings growth story over time.”

The post 2 quietly achieving ASX shares to pounce on right now: Morgans appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Top brokers name 3 ASX shares to buy today
• Why A2 Milk, Deep Yellow, Healius, and IGO shares are racing higher
• Healius share price climbs as profit doubles in FY22
• 5 things to watch on the ASX 200 on Tuesday

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.

from The Motley Fool Australia https://ift.tt/xvFKil5