ASX200 Stocks in Focus: What’s Driving Interest in (ASX:A2M) and (ASX:WOW)?

June 26, 2025 11:23 AM AEST | By Team Kalkine Media

Google News:

ASX200 Stocks in Focus: What’s Driving Interest in (ASX:A2M) and (ASX:WOW)? — Image source: shutterstock

Recent News

LONDON MARKET OUTLOOK: FTSE Set to Dip as UK Launches New Trade Framew...

ASX 200 Treads Water Amid Tariff Uncertainty, Tech Momentum and Inflat...

Westpac Flags July RBA Cut Outlook as ASX 100

ASX 200 Stumbles as Tech and Financial Stocks Weigh on Early Trade

Highlights

A2M share price gains over 35% in 2025

WOW trades below its 52-week high

Financial trends show contrasting growth and return profiles

As part of the ASX200 stocks, both The a2 Milk Company Ltd and Woolworths Group Ltd have seen varied market movements in 2025, drawing attention for their contrasting fundamentals and sectoral strengths.

A2M (ASX:A2M): Riding the Dairy Demand Wave

The a2 Milk Company has seen its share price climb 35.2% since the beginning of 2025. A2M, known for its premium dairy products featuring only the A2 protein type, partners with over 25 certified dairy farms in Australia while its infant formula is produced by Synlait Milk in New Zealand.

This dairy innovator has built its brand around easier digestibility for consumers, positioning itself distinctively in the health-focused segment of the market. From a performance standpoint, the company reported consistent revenue and profit growth. Since FY21, A2M’s revenue has grown at an annualised rate of 11.6%, reaching $1.67 billion in FY24. During the same time, net profit more than doubled from $81 million to $168 million. The return on equity (ROE) for FY24 stood at 12.8%, signalling efficient utilisation of shareholder funds.

WOW (ASX:WOW): Strength in Consumer Staples, But Returns Lag

Woolworths Group, a stalwart in the ASX200, has not matched A2M's stock rally and currently trades 14.4% below its 52-week high. As Australia’s leading supermarket operator with a network of over 3,000 stores, Woolworths holds a commanding presence in groceries with over 35% market share.

Apart from its supermarket dominance, WOW operates Big W and B2B food distribution through PFD. The company’s earnings stream is considered defensive due to its stronghold in consumer staples—making it a potentially resilient player during economic downturns.

Financially, Woolworths has maintained an average dividend yield of 2.9% since 2020. However, its FY24 ROE was reported at just 1.9%, well below typical expectations for mature blue-chip companies. The company is also significantly leveraged, with a debt/equity ratio of 300.2%, indicating a higher exposure to borrowing-related risk.

While A2M reflects the characteristics of a growth-oriented consumer brand with rising profitability, WOW showcases stability in consumer demand but faces challenges in delivering higher returns on equity. For those tracking ASX200 stocks, both names offer unique narratives shaped by their operational models and market positioning.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.