Highlights
- ASX200 remains high amid global shifts.
- Small-cap stocks offer unique growth opportunities.
- Cuscal, GR Engineering, and SRG Global exhibit strong fundamentals.
As the Australian market grapples with new U.S. tariffs and fluctuating energy prices, the ASX200 index has maintained a strong position, reaching significant highs despite recent volatility. This environment presents opportunities to explore promising small-cap stocks like Cuscal and others, which are often resilient to global economic shifts. These opportunities can enhance portfolios by providing exposure to strong sectors and undiscovered potential.
Cuscal Limited (ASX:CCL)
Cuscal Limited operates in the financial sector, offering payment and regulated data-related products and services. With a market cap of A$478.91 million and robust earnings growth of 4.3% over the past year, it has surpassed the diversified financial industry's growth rate. Recently added to the S&P/ASX All Ordinaries Index, Cuscal’s price-to-earnings ratio is 15.9x, below the national average, indicating good value. Despite challenges such as interest payment coverage, Cuscal's recognition in key conferences highlights its growing prominence.
GR Engineering Services (ASX:GNG)
GR Engineering Services provides engineering, procurement, and construction services predominantly to the mining and mineral processing sectors. The company, with a market capitalization of A$470.26 million, has reported impressive earnings growth of 34.3% over the past year. Notably, GR Engineering has no debt and maintains a strong cash flow, as reflected in its 10 cents per share interim dividend. Its recent contract with Horizon Minerals for refurbishing the Black Swan processing plant further demonstrates its operational capability.
SRG Global Limited (ASX:SRG)
SRG Global is an engineering-led company that offers maintenance, industrial services, and construction solutions across several regions. With a market cap of approximately A$779.11 million, SRG Global shows a promising outlook. The acquisition of Diona has strengthened its standing in the water security and energy transition sectors, boosting its work-in-hand to A$3.4 billion. With a substantial discount on its fair value and a strong operational model, SRG Global presents significant growth potential, projected to maintain earnings growth of nearly 16% annually over the next five years.