Are COH & JBH Hidden Growth Opportunities in the ASX200?

May 08, 2025 02:11 PM AEST | By Team Kalkine Media
 Are COH & JBH Hidden Growth Opportunities in the ASX200?
Image source: Shutterstock

Highlights

  • COH shares down 9.4% in 2025 but showing strong revenue growth
  • JBH trading near 52-week highs with robust ROE
  • Both companies show resilience within ASX200 framework

Investors keeping an eye on the Australian Securities Exchange may have noticed intriguing movements in two prominent ASX200 stocks: Cochlear Ltd (ASX:COH) and JB Hi-Fi Ltd (JBH). As 2025 unfolds, these companies stand out not just for their recent share price activity, but also for their underlying fundamentals and sector positioning.

Cochlear (COH), a global pioneer in hearing technology since 1981, has seen its share price decline by 9.4% year-to-date. Despite this dip, its long-term growth trajectory paints a compelling picture. The company has distributed over 750,000 implantable hearing devices across more than 50 countries, emphasizing its scale and market reach.

From a financial standpoint, Cochlear reported consistent performance with revenue growing at an annualized rate of 14.3% since 2021, reaching $2.24 billion in FY24. Its net profit increased to $357 million, while it achieved a return on equity (ROE) of 19.9%, a solid indicator of management’s effectiveness in generating returns on shareholder equity.

Meanwhile, JB Hi-Fi (ASX:JBH), one of Australia’s leading electronics and appliance retailers, is trading just 4.3% shy of its 52-week high. Established in 1974, JB Hi-Fi has built a strong retail presence across Australia and New Zealand through three segments: JB Hi-Fi Australia, JB Hi-Fi New Zealand, and The Good Guys.

JB Hi-Fi has adopted a cost-leadership model, which has helped it appeal to value-conscious consumers. Despite more modest revenue growth of 2.5% per year over the past three years, the company generated $9.59 billion in FY24. Its net profit stood at $439 million, and it posted a noteworthy ROE of 29.5%.

For market observers scanning the landscape for ASX dividend stocks, JB Hi-Fi’s history of dividend payouts could be a key factor in their interest, especially in light of its profitability and market position.

Both Cochlear and JB Hi-Fi hold positions within the ASX200, an index that represents the top 200 companies on the Australian stock exchange. Their inclusion reflects their stability, size, and investor relevance.

As the broader market evolves, these companies present contrasting, yet potentially rewarding profiles—one rooted in global medical technology innovation, the other in consumer retail resilience. Monitoring their strategic moves and financial trends could offer valuable insights for long-term equity market engagement.


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