Highlights
- ASX hovers above 8,300 points amid risk-off sentiment
- Identifying small-cap stocks with resilience and growth potential
- Spotlight on Cobram Estate Olives, Diversified United Investment, and Southern Cross Electrical Engineering
The Australian market is currently navigating a challenging earnings season, with the ASX settling just above 8,300 points. Investors are notably cautious, leading to a 'risk-off' sentiment that impacts sectors like IT and real estate. Amidst this, identifying small-cap stocks that show resilience and promise for growth is essential.
Cobram Estate Olives (ASX:CBO)
Cobram Estate Olives Limited is active in the production and marketing of olive oil across several countries, with a market cap of A$837.89 million.
The company derives its income mainly from olive oil production and marketing. A reported net loss of A$4.46 million marked improvement from prior figures, alongside A$124.77 million in sales, suggesting strong growth despite hurdles. Trading significantly below fair value implies potential undervaluation, with forecasts predicting a 14.56% annual earnings growth.
Diversified United Investment (ASX:DUI)
As a publicly owned investment manager, Diversified United Investment boasts a market capitalization of A$1.16 billion.
This company relies heavily on its investment management activities for revenue. Despite facing a negative earnings growth, its financial situation remains stable with high-quality earnings and strong interest coverage. The company shows steady net income growth, presenting a stable outlook for future earnings.
Southern Cross Electrical Engineering (ASX:SXE)
Specializing in electrical and maintenance services, Southern Cross Electrical Engineering serves various sectors and holds a market cap of A$474.36 million.
The company exhibits a strong financial health with no outstanding debt. With a significant sales increase and robust net income growth, Southern Cross is set for potential future upside. A recent dividend increase further enhances its attractiveness to investors.