There is much macroeconomic and geopolitical manoeuvring that's distracting investors of ASX shares.
But one mustn't forget the current reporting season has been revealing crucial information about the businesses themselves.
Lucky for us, experts like Morgans analyst Andrew Tang have been keeping tabs on all the company reports.
In his regular "call to action" blog post, he picked out five ASX shares this week that are the best buys on the back of their February updates:
'Industry leading' with growth runway intact
Investment platform provider Hub24 Ltd (ASX: HUB) reported "above expectations", with underlying earnings and net profit both up.
"Hub24 looks to be delivering 'cleaner' financials," Tang wrote on the Morgans blog.
"The product offering is industry leading — along with Netwealth Group Ltd (ASX: NWL) — and the runway to secure more clients looks intact."
Average funds under management and platform revenue also grew significantly.
The only bone to pick with Hub24 shares is that they have already risen 16.8% over the past year and a phenomenal 326% since the COVID-19 market crash.
They're still an add for Tang's team though.
"Whilst upside to our valuation is reasonably low, the potential for larger 'transitions' wins is a realistic catalyst within CY23."
Industry halves but this player is standing strong
Monash IVF Group Ltd (ASX: MVF) is going from strength to strength, according to Tang.
"Despite industry volumes declining in the half, Monash IVF continues to gain market share in its key markets through both organic growth and through acquisitions."
The February report was solid, with net profit after tax (NPAT) of $12.6 million coming in marginally higher than guidance.
"A strong increase in new patient registrations for the 2Q gives us confidence in the pipeline for 2H23," said Tang.
"Management has upgraded underlying NPAT guidance to 15% growth to A$25.5m for FY23 (up from guidance provided at its AGM of 10%+ growth)."
The Monash share price is flat from a year ago.
Potential clouds coming, but this one's still a buy
Tang called online jobs classifieds Seek Ltd (ASX: SEK)'s update "broadly a positive result".
However, forward guidance was biased towards the lower end of expectations with a slowing economy dampening job ad growth in Australia and New Zealand.
Morgans has subsequently downgraded its earning forecast, but the stock remains a buy.
"We adjust our FY23F to FY25F EPS by -5% to +1% factoring in the revised guidance, lower topline estimates across our forecast period on additional conservatism and improved EBITDA margins in SEEK Asia."
The Seek share price is down 9.75% over the past 12 months.
'Potential short-term catalyst' coming for these dealers
Car dealership network Peter Warren Automotive Holdings Ltd (ASX: PWR) enjoyed a surge in vehicle sales at the height of the pandemic.
Despite that fervour subsiding over the past year, its share price has managed to rise 4.4%.
Tang is buying the stock after a result that was "broadly in-line".
"Peter Warren is trading on ~11x our assumed more 'normalised' conditions (FY24/25)," he said.
"Industry consolidation will continue — we expect PWR to be a participant which adds to structural earnings capacity."
He added that the onboarding of Toyota Motor Corp (TYO: 7203) to its network would be "a potential short-term catalyst".
Excellent result and new CEO
Supermarket giant Coles Group Ltd (ASX: COL) hogged the limelight in the financial media earlier this week with excellent results and the transition to a new chief executive.
According to Tang, Coles is expecting consumer habits to change in 2023.
"Management said supermarkets volume growth returned to modestly positive from mid-January and is expecting more customers to be value conscious as cost-of-living pressures increase."
The company's booming supermarkets arm is somewhat cancelled out by reduced earnings in its liquor division.
Coles is also selling off its petrol station network to Viva Energy Group Ltd (ASX: VEA), which will impact short-term earnings.
The Coles share price is up 5.4% over the past 12 months while paying out a 3.5% dividend yield.
Tang's team is maintaining its add rating.
