Reporting season could be a good time to go hunting for ASX shares.
The post 2 ASX All Ords shares I’d buy before they report in August appeared first on The Motley Fool Australia. –
Reporting season is a great time to look at All Ordinaries (ASX: XAO), or All Ords, ASX shares. Itâs one of the main times of the year that we get a true insight into the performance of a business, thoughts from management, and plans for the future.
I also think itâs possible to find opportunities where the market may be underestimating companies’ future prospects.
Businesses achieving good progress could translate into long-term earnings growth and potentially produce good shareholder returns.
In my opinion, both of these All Ords ASX shares have attractive potential.
GQG Partners Inc (ASX: GQG)
This business is a global fund manager that manages active share portfolios. It has clients including many large pension funds, sovereign funds, wealth management outfits, and other financial institutions. It offers a number of different strategies based on global shares, US shares, international shares âemerging marketâ shares, and dividends.
GQG Partners is expected to hand in its half-year result on 11 August 2022.
The company continues to see strong inflows of funds. In the quarter for three months to June 2022, it experienced net flows of US$2.8 billion, despite the volatile market returns and industry outflows.
It said that it continues to see business momentum from multiple geographies and channels.
The largest shareholders of the business are the management team, making them highly aligned with regular shareholders.
I think GQG is an attractive fund manager because management fees make up the vast majority of its revenue. It also doesnât charge (or generate) much in performance fees. That means results can be more consistent year to year.
The ASX All Ords share has also committed to a high dividend payout ratio which can lead to an attractive dividend yield in the coming years.
Morgans expects GQG to pay a dividend yield of 8.25% in FY22, this current financial year.
Sonic Healthcare Limited (ASX: SHL)
This ASX healthcare share is described as one of the worldâs leading providers of medical diagnostics. This is spread across laboratory medicine, pathology, radiology, general practice medicine, and corporate medical services. It has more than 1,600 pathologists and radiologists.
Sonic Healthcare is scheduled to hand in its full-year result on 24 August 2022.
I think the business has the potential to surprise the market. It has benefited from COVID-19 testing over the past two years, but I believe that the ongoing level of PCR testing could mean a boost to cash flow in FY22 and FY23.
It is using its profit to progressively grow its dividend, as well as make acquisitions.
During the first six months of FY22, Sonic invested A$585 million in acquisitions and joint ventures that will âenhance the future growth” of the company. It bought Dallas-based ProPath, which has significantly strengthened Sonicâs anatomical pathology operations and management in the US. Buying Canberra Imaging Group has also âmaterially expandedâ its revenue, footprint, and talent of Sonicâs radiology division, according to the company.
While those two acquisitions arenât what I would call âtransformativeâ for the ASX All Ords share, they add a good amount of scale to the business and improve its diversification.
It may not shoot the lights out from here, but I think Sonic can continue to deliver revenue and profit growth over time.
The post 2 ASX All Ords shares I’d buy before they report in August appeared first on The Motley Fool Australia.
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now
See The 5 Stocks
*Returns as of July 7 2022
setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
Broker names 3 ASX 200 shares to buy and hold
2 ‘good value’ ASX 200 shares offering what investors want right now: expert
Experts predict 2 companies heading for the ASX 20 (and 2 that will get kicked out)
Here’s why I think the Sonic Healthcare share price could jump higher
Here are the top 10 ASX shares today
Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.