ASX shares have rallied this past month as investors pile back into equities and exchange-traded funds (ETFs).
The S&P/ASX 200 Index (ASX: XJO) has jumped 162 basis points in the last week and was at 7,412 at the opening of trade on Tuesday.
Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) has rallied more than 4% in the past month and is now leading the charge alongside financials and commodity stocks.
For instance, the S&P/ASX 200 Financials Index (XFJ) has climbed 7% since November last year while June futures on the Bloomberg Commodity Index has shot up 30%.
ASX shares rumble back
While the market has been filled with pockets of red in 2022, there are still plenty of ASX shares on sale, according to one expert.
Three of these names are REA Group Limited (ASX: REA), Seek Limited (ASX: SEK), and cloud accounting company Xero Limited (ASX: XRO), according to Ben Clark, portfolio manager at TMS Capital.
Each of these companies has performed well in terms of fundamentals lately, Clark says, citing a number of tailwinds for each name.
"So companies like REA grew their earnings 37% last half," he said of the digital advertising company when speaking to Livewire.
"Every newspaper I pick up on Monday, a record number of auctions on Saturday. That's great for REA."
Whereas in Seek's case, the macroeconomic landscape is generating a promising outlook for the online jobs marketplace.
"Companies like Seek, the job market is as tight as I've ever seen it," Clark added. "Every headhunter that you speak to says, 'Change this pricing dynamic model. We're paying them more than we ever have. And we've just got to do it'."
Finally, as tech regains strength again, ASX shares such as Xero could benefit investors greatly, he noted.
"Xero … is one that we own and has been one of our largest holdings, didn't report in the reporting season," Clark said, adding the company is almost flawless in terms of negative sentiment.
"It's such a resilient, consistent business. I don't think you're going to get any bad news from it. It's dropped 40% from its January 1 high."
Clark also reckons the market will bounce back and that "when growth starts to run" companies that came in with strong earnings will be front and centre.
