August results season is mayhem for investors.
There are so many different companies to follow. So many numbers to crunch. And so many decisions to make about your ASX shares.
There’s no doubt it can be overwhelming. That’s why even the veterans may miss something.
Fortunately, a couple of experts offered up an ASX stock each that retail investors might have missed.
They’re both businesses that delivered in their 2021 financial year results, and have nice prospects for the future.
Record results, record profit, record dividend
Temple & Webster Group Ltd (ASX: TPW) certainly is the market darling as the online disruptor in the furniture retail sector.
“This one has certainly delivered a record result and record profit, record dividend,” 1851 Capital chief investment officer Chris Stott told a Livewire video.
“And it flew well under the radar from a share price perspective — it’s fairly flat.”
Indeed he is right. Nick Scali shares have only risen 1.3% in the past month.
According to Stott, the furniture vendor is “one of the best retailers in the country”.
“The outlook we think is as good as we’ve ever seen for Nick Scali,” he said. “Anthony Scali is running the business and has done this for well over 20 or 30 years.”
The company has expressed interest in acquiring rival retailer Plush, which Stott considers a tailwind.
“If they do, it would be earnings accretive going forward. So we think there’s certainly scope for M&A activity, as well as earnings to surprise on the upside in our opinion,” he said.
“We think that’s a buy.”
Nick Scali shares are up more than 26% this year, and 47.9% over the last 12 months.
ASX share to buy if you don’t mind coal
Market Matters portfolio manager James Gerrish admits coal is on the nose with investors these days.
But he does like the look of one producer.
“I’m probably going to get shot by viewers here, but Whitehaven Coal Ltd (ASX: WHC),” he said. “Their result, while operationally and financially 2021 wasn’t great, it’s looking good for 2022.”
Whitehaven shares have had a great run already. This year the price is up a whopping 71%, while the stock has rocketed 234% higher over the past 12 months.
For Gerrish, the best part of its August results was the progress in wiping out debt.
“They say if coal prices stay where they are, they’ll be debt-free by the second half of ’22, which I think is a really strong outcome,” he said.
“It reminds me of Fortescue Metals Group Limited (ASX: FMG) when they had debt problems and then they got a really strong commodity price tailwind. So Whitehaven Coal is a stock to buy from me.”
Whitehaven shares flew high on Friday, gaining 6.8%.