It's getting closer to 2023. I think that there are a number of S&P/ASX 200 Index (ASX: XJO) shares that look like opportunities that could do well next year.
There has been a broad sell-off of the (ASX) share market. I think that has opened up a number of compelling ideas that, in my opinion, can deliver growth in the long term.
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Pinnacle Investment Management Group Ltd (ASX: PNI)
This is an interesting investment management business. It partners with good fund managers that want to build their own businesses.
Pinnacle can help the manager with a lot of administrative things like legal, finance, compliance and so on. It can also provide seed funding.
The Pinnacle share price has fallen by 50% in 2022, making it much better value in my opinion. According to Commsec, it's now valued at 19 times FY23's estimated earnings and 17 times FY24's estimated earnings.
As soon as when markets stop falling, I think the return of longer-term asset price growth will be a natural boost for the growth of Pinnacle's underlying funds under management (FUM), and investment managers may also see stronger inflows again from clients.
I also like that the ASX 200 share is steadily adding to its portfolio with new managers. One of its latest moves has been into Canadian shares with a Canada-based manager.
Corporate Travel Management Ltd (ASX: CTD)
This is one of the largest corporate travel management businesses in the world. But, the Corporate Travel share price has dropped around 25% this year despite the ongoing recovery of the travel market.
I think the recovery is a great reason to be interested in the business. The company recently gave a trading update that outlined recent activity.
Activity continued to grow in October 2022 for the ASX 200 share compared to September 2022.
September's revenue recovery was 75% of pre-COVID times, with October tracking higher than September. It's also gaining market share.
By the end of FY23, it's expecting a full recovery. In FY24 it might make $265 million of earnings before interest, tax, depreciation and amortisation (EBITDA) on $810 million of revenue. But, that assumes that airport problems are solved by June 2023 and that Greater China borders are open with no travel impediments.
According to Commsec, it's currently valued at 25 times FY23's estimated earnings and 16 times FY24's estimated earnings.
Idp Education Ltd (ASX: IEL)
This business is a company that's involved with global student placement and English language testing. The IDP Education share price is down by 18% this year.
With all of the impacts of COVID-19, borders were shut, and profits sunk. But, now that borders are open, things are recovering strongly for the ASX 200 share.
FY22 saw total revenue increase by 50% and net profit after tax (NPAT) increase by 161%.
The business has expanded its global network, introduced English language testing online and it's delivering much stronger profit margins.
I think a full year of open borders will be very beneficial for the company's earnings and it has the potential to keep making bolt-on acquisitions.
According to Commsec, the IDP Education share price is valued at 48 times FY23's estimated earnings and 36 times FY24's estimated earnings.
