A fund manager has named two profitable ASX shares he likes despite considering them "boring".
The two shares are Amcor PLC (ASX: AMC) and Aurizon Holdings Ltd (ASX: AZJ). Amcor shares are up 0.38% at the time of writing, while Aurizon shares are up 0.5%.
Let's take a look at why this portfolio manager recommends these two shares.
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A shift to the boring
Investors Mutual Limited portfolio manager Daniel Moore is observing a move from the new "exciting" companies to "boring" quality companies with strong profits.
One of these companies is global packaging business Amcor. In comments posted on Livewire, Moore said:
It's a boring company. It doesn't have any celebrity spokespeople, you won't see it splashed across billboards, Elon Musk has probably never heard of it.
However, he noted the company makes "plenty of money" and its recent quarterly results revealed the company is a "solid growing business" with sound fundamentals.
Amcor recently reported its adjusted earnings before interest and taxes (EBIT) jumped 6% in the quarter compared to the prior corresponding period. The Amcor share price has also gained 12% in the year to date.
Aurizon is another company Moore describes as a "boring company" that makes "good profit". Aurizon transports commodities via rail from mines to export ports. Commenting on Aurizon, he said:
Aurizon is well-placed to diversify out of coal.
It also hauls copper, grain, nickel, iron ore, lithium and other commodities and is aiming to double its bulk haulage business by 2030, while reducing thermal coal to less than 20 per cent of its business.
Aurizon shares are up nearly 15% year to date. In contrast, the S&P/ASX 200 Index (ASX: XJO) has slid nearly 5% over the same period.
