What I love about these ‘boring’ ASX shares: fundie

What is there to like about these two ASX shares?

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Key points

  • A portfolio manager has named two "boring" shares he likes 
  • Both of these companies are seen as profitable 
  • Shares in both companies have outperformed the ASX 200 benchmark index year to date 

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.

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.

The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Limited. The Motley Fool Australia has recommended Aurizon Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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