AUS
NZ
UK
CA
USA
IND
Highlights
- Market fluctuations create potential investment opportunities.
- Selective stock strategies can navigate uncertainty effectively.
- Female fund managers highlight key companies poised for growth.
Market turbulence often leads to uncertainty, but experienced fund managers see it as an opportunity. Emma Fisher, deputy head of Australian equities at Airlie Funds Management, observes that while global market movements influence local markets, the long-term impact on Australian companies remains limited. Instead, these fluctuations offer a chance to gain exposure to strong businesses at more favorable valuations.
The recent reporting season has been challenging, with significant stock price swings and increased earnings downgrades. However, Fisher notes positive shifts, including easing raw material costs and wage inflation, which could support earnings growth on the Australian Securities Exchange (ASX) for the first time in two years. The ASX 200 has softened by 5.4% since mid-February, allowing investors to reassess previously overvalued stocks. Bank stocks, particularly Commonwealth Bank of Australia (ASX:CBA), have faced pressure, declining by 5.5% in the past month due to limited growth prospects.
To mark International Women’s Day, nine leading female fund managers from Future Generation Women have identified 13 stocks that stand out in the current market environment.
Key Stocks Identified by Experts
- Jun Bei Liu, Ten Cap – a2 Milk (ASX:A2M): The infant formula company has seen a 37% surge in the past month, outperforming expectations despite a shrinking Chinese market.
- Fleur Wright, Northcape Capital – Clean Harbors (NYSE:CLH) & Novo Nordisk (NYSE:NVO): Clean Harbors benefits from strong pricing power in hazardous waste disposal, while Novo Nordisk’s long-term growth is supported by rising obesity trends in the U.S.
- Vihari Ross, Antipodes – Keysight Technologies (NYSE:KEYS): Positioned to gain from the AI boom and upcoming 6G cycle, trading at 20 times earnings.
- Dawn Kanelleas, First Sentier – Capricorn Metals (ASX:CMM) & TechnologyOne (ASX:TNE): Capricorn’s gold production is set to double, and TechnologyOne maintains steady earnings growth in enterprise software.
- Emma Fisher, Airlie Funds Management – Medibank (ASX:MPL) & Charter Hall (ASX:CHC): Medibank offers an alternative to expensive bank stocks, while Charter Hall has streamlined costs for sustained earnings growth.
- Armina Rosenberg, Minotaur Capital – CD Projekt (WSE:CDR) & Cover Corporation (TYO:5253): CD Projekt’s upcoming releases could double earnings, while Cover Corporation sees robust revenue growth in digital entertainment.
- Julia Weng, Paradice – Seek (ASX:SEK): Job ad stabilization and margin expansion indicate positive momentum.
- Chanel Stuart-Findlay, Plato – American Express (NYSE:AXP): A younger demographic has fueled record earnings growth and solid cash flow generation.
- Qiao Ma, Munro Partners – Wix (NASDAQ:WIX): Benefiting from generative AI advancements, Wix anticipates strong revenue and cash flow growth.
Despite global uncertainties, these fund managers see potential in select stocks, leveraging volatility as an opportunity for strategic positioning in the market.
