Motley Fool Australia

5 stocks for upside surprises come earnings season

August means the majority of the companies on the ASX will be reporting full year results and those that impress are likely to see their share prices well supported. While investors should always focus on picking quality companies likely to outperform over the long term, its worth considering which companies may have performed best over the previous 12 months in order to get a big head start on your investment returns.

Domino’s Pizza Enterprises Ltd (ASX: DMP) appears to have a great management team capable of delivering shareholders consistently stunning returns. The business keeps ahead of the competition through innovation and a reputation for value for money. Now expanding successfully into Japan, this is a growth story that may have some way to run yet. Domino’s reports full-year results August 12.

Tassal Group Limited (ASX: TGR) is a Tasmania-based salmon farmer and seller that has refocused its operations on the domestic market over the last year. This has realised operational cost benefits and also supported margins, with the fish farmer having a five-year plan to further grow its business. Tassal will report full-year results on August 19.

iiNet Limited (ASX: IIN) is attempting to grow organically through a marketing drive and a reputation for superior customer service. This combined with improved margins could create an upside surprise. The business is strong in its WA base and has been hoping to win market share in the relatively under-penetrated eastern-seaboard states in particular. The NBN is its other key growth opportunity and investors will be looking towards how much the company can deliver above last year’s final dividend of 11 cents per share. iiNet will post its full-year results on August 21.

Ramsay Health Care Limited (ASX: RHC) the private hospital operator has a long history of outperformance thanks to acquisitive and organic growth on the back of strong margins. The group has strong pricing power thanks to the favourable demographics of the ageing population. Ramsay will report full-year results on August 28.

Slater & Gordon Limited (ASX: SGH) has been expanding operations into the UK recently through a string of acquisitions of smaller law firms. The legal eagles have also been branching out their fee-earning practices in Australia, all of which points to strong revenue growth. If it can deliver on margins the group could post some positive numbers with an equally strong outlook. Slater & Gordon reports full-year results on August 12. 

Man who said buy Kogan shares at $3.63 says buy these 3 ASX stocks now

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 more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

In this FREE STOCK REPORT, Scott just revealed what he believes are the 3 ASX stocks for the post COVID world that investors should buy right now while they still can. These stocks are trading at dirt-cheap prices and Scott thinks these could really go gangbusters as we move into ‘the new normal’.

*Returns as of 6/8/2020

Motley Fool contributor Tom Richardson owns shares in Slater and Gordon and iiNet. You can find him on Twitter @tommyr345

 

Related Articles...

Latest posts by Tom Richardson (see all)