This year valuations of ASX shares have been dominated by forces external to business operations, like inflation, interest rates, the economy, and a war in Europe.
In such helpless times, it can help to rattle the cage with something that the company can control. Like a blockbuster acquisition.
That's what two ASX-listed companies recently did, with experts recommending buying into their shares:
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Sensible deal adding earnings and value
Viva Energy Group Ltd (ASX: VEA) owns the Geelong Oil Refinery and Shell petrol stations in Australia.
Last month, supermarket giant Coles Group Ltd (ASX: COL) sold its service station network to Viva for $300 million.
Ord Minnett senior advisor Tony Paterno feels positive about the acquisition that saw 710 sites join the Shell network.
"We expect the balance sheet to remain in a net cash position after the $300 million deal is completed," Paterno told The Bull.
"We believe the deal makes sense, as it offers Viva Energy additional flexibility from a strategic and operational standpoint, while also looking accretive to earnings and value."
Paterno recommends Viva Energy shares as a buy.
The Viva share price has risen 16.5% year to date while handing out a tidy 6.2% dividend yield.
Reducing risk and expanding margins
Baker Young managed portfolio analyst Toby Grimm considers Australia and New Zealand Banking Grp Ltd (ASX: ANZ) shares a buy.
"Compared to the other three major banks, ANZ shares were recently trading on the lowest price-earnings multiple and offer the highest prospective dividend yield."
Indeed, ANZ shares are currently paying out a juicy 5.8% dividend yield.
Grimm reckons the recent acquisition of Suncorp Group Ltd (ASX: SUN)'s banking arm aligns with ANZ's long-term direction.
"The decision to expand core operations via the Suncorp Bank acquisition reduces risk and supports medium-term growth," he said.
"Net interest margin expansion is expected to underpin ANZ's full-year result."
ANZ shares are down 11.7% so far this year. Grimm is in good company. According to CMC Markets, nine out of 15 analysts are currently rating ANZ shares as a buy, with seven of those recommending it as a strong buy.
