If you're trying to do better than the market, then inevitably you have to pick some ASX shares that other people aren't thinking of.
After all, if you just buy the stocks that everyone else has, you won't be beating the average.
Despite all the turmoil this year, or perhaps because of it, there are many ASX shares out there that have been oversold and unloved.
Here's a couple of examples that Morgans investment advisor Jabin Hallihan reckons are buys right now:
Quality with 'limited competition'
PWR Holdings Ltd (ASX: PWH) is not a household name, by any means.
But the company has been around for four decades, making high-end cooling solutions for the car industry.
PWR's products are of such high quality that they are used by professional motor racing teams, such as in Formula 1 and NASCAR.
Morgans analysts love how this gives it excellent growth prospects and resilience to any economic downturns.
"With limited competition, customers are more focused on performance rather than price," Hallihan told The Bull.
"The company's results demonstrated competitive edge and dominant market positions. PWR Holdings has been successful at offsetting margin pressure."
Morgans has a $10.05 share price target, which is a 28% premium to where it closed on Tuesday.
While analyst coverage is sparse, at least Bell Potter and Evans & Partners agree with Hallihan's team. According to CMC Markets, both rate PWR shares as a strong buy.
Great growth prospects plus shareholder buyback
ALS Ltd (ASX: ALQ) is an even more obscure brand than PWR. But it provides services essential to the running of other companies: testing, inspection, and certification.
Hallihan was a fan of ALS' "strong" full-year result.
"Underlying net profit after tax of $264.2 million was up 42.1% on the prior corresponding period and at the top end of guidance," he said.
"Sample volumes are improving year-on-year, while inflationary pressures are passed onto customers via price rises."
With many of its clients in the resources industry, Hallihan likes ALS' exposure to long-term demand for commodities.
His team has a price target of $14.14, which is a 29% rise from the closing price on Tuesday.
On Monday, after Hallihan made his recommendation, ALS announced it would conduct a $100 million on-market share buyback.
"The buy-back program reflects our disciplined and efficient capital management program, the strong balance sheet and focus on returning excess capital to our shareholders," said chief executive Raj Naran.
"Our balance sheet retains significant capacity for organic growth, including existing capacity expansions previously announced for FY23, future acquisitions including a solid pipeline of opportunities, and capital management."
