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As the ASX market navigates through August’s volatility, MLC Asset Management highlights several stocks poised for attention. With ongoing pressures from mortgage rates and the cost of living, investors are keenly observing companies that exhibit resilience and growth potential within the ASX market. Here’s a closer look at the stocks making waves and why they are catching the eye of experts.
General and health insurers are showing strong performance. With premium increases and improved investment returns from elevated yields, these sectors are expected to deliver consistent earnings. Additionally, cost-of-living pressures are impacting claims in health insurance, favorably affecting the industry.
Real estate investment trusts (REITs) focused on efficient goods movement, modern logistics, data centers, self-storage, and well-located land leases are seeing positive trends. Despite broader market concerns, these areas offer growth potential.
Retailers catering to older demographics or those with low or no mortgage burdens are performing well. For example, Treasury Wine Estates Ltd (ASX:TWE), known for its luxury wine portfolio including Penfolds, has demonstrated resilience amidst economic pressures.
ASX Stocks to Watch
1. Nick Scali Ltd (ASX:NCK)
Nick Scali Ltd continues to impress with its strategic acquisitions and integration efforts. Recent successes include the integration of the Plush business, leading to enhanced margins. The company’s focus on operational efficiency and expansion into the UK market with Fabb Furniture is expected to drive further growth.
2. Seven Group Holdings Ltd (ASX:SVW)
Seven Group Holdings Ltd stands out with its diversified business model, including full ownership of Boral. The company’s main units—WesTrac, Coates, and Boral—position it strongly in mining, infrastructure, and building sectors. Ongoing large-scale projects in these areas are likely to benefit SVW's strategic growth initiatives.
3.Brambles Ltd (ASX:BXB)
Brambles Ltd plays a crucial role in global supply chains through its pallet pooling services. The company is expected to leverage easing lumber prices and improved operational efficiency to maintain strong margins. As global supply chains continue to evolve, Brambles is well-positioned to benefit from these changes.
4. Goodman Group Ltd (ASX:GMG)
Goodman Group Ltd is a major player in commercial and industrial property, including logistics and data centers. The company's strategic focus on high-value development projects, particularly data centers, has driven its share price higher. Ongoing execution of development plans and access to secured power are key factors supporting its growth.
As the market adjusts to current economic conditions, these ASX stocks are worth keeping an eye on. Each company is positioned in sectors with strong growth potential and resilience. Monitoring these stocks and their performance during the reporting season could offer valuable insights for investors.
