Results season can offer up some buy opportunities you may not have thought of, particularly for under-the-radar stocks that deliver better than anticipated results. I think these 3 mid-cap stocks are potential buys right now.
Bapcor Ltd (ASX: BAP)
An auto parts business with a great growth pipeline, Bapcor Ltd has 145 stores across Australia.
Bapcor’s share price has risen 27% in the last 12 months, from $5.54 at this time last year to open today at $7.04.
With plans to expand into Asia and the recent divestment of its New Zealand Tyre and Wheel business, Bapcor is realigning its strategy to give itself the best chance of future growth and is expected to deliver growth in pro forma net profit of 30% when it hands down its preliminary results later this month.
In terms of retail stocks, I think Bapcor is a solid option, with cars being a necessity in our lives, rather than the discretionary products sold by the likes of Lovisa Holdings Ltd (ASX: LOV).
Investors may wish to wait for Bapcor’s results to come through before pressing the buy button, but the risk there is missing the boat if the results push the price up further.
Orora Ltd (ASX: ORA)
Investors don’t have to wait long for Orora’s full-year result- it’s due out tomorrow.
But with Orora’s balance sheet expected to come in strong, with both revenue and earnings growth, prices could push up and lock some buyers out pretty quickly.
Orora provides tailored packaging options for clients, which is a business niche only set to increase with an uptick in online sellers seeking packaging options for their products that a brick and mortar retailer would not require.
Orora’s shares have been steadily climbing in the last 12 months and tomorrow’s results are hotly anticipated.
Don’t wait too long if you’re keen on this one.
Cleanaway Waste Management Ltd (ASX: CWY)
Cleanaway is a waste management company and its shares are up 48% in the last 12 months.
Cleanaway recently announced it had joined forces with ResourceCo – acquiring a 50% interest in the Western Sydney recycling and alternative fuel business.
Recycling and waste management are hot topics right now as Wesfarmers Ltd (ASX: WES) and Woolworths Group Ltd (ASX: WOW) moved to cut single-use plastic from its grocery and retail chains and Cleanaway can leverage off this trend if it’s clever.
Cleanaway results come out on August 20, but investors should keep their finger firmly on the pulse with this one.
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Motley Fool contributor Carin Pickworth has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor and Wesfarmers Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.