Nothing beats the feeling of getting in early on a rising stock then enjoying the subsequent returns.
The team at Elvest Fund recently identified two such ASX shares that went gangbusters last month, which it believes will continue to rocket.
Let's take a look:
'Operating leverage' baked into the business model
RPMGlobal Holdings Ltd (ASX: RUL) is a technology services provider to the mining industry, which Elvest analysts say is a hidden gem.
"With a net cash balance sheet and growing pipeline, we are looking ahead to another solid year for what is still an under-the-radar small cap," they said in a memo to clients.
The Brisbane company provided an update to the market in July that sent the share price soaring 10.5% for the month.
"Mining operations software provider RPMGlobal updated on software sales and EBITDA guidance for FY23 with total contract value (TCV) and annually recurring revenue up 25% to $70.5 million and $55 million, respectively."
Impressively, underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) is forecast to triple to $15 million, which the Elvest team says highlights "the operating leverage built into RPMGlobal's business model".
The $360 million business is very much flying under the radar, as CMC Markets currently shows one other analyst, Moelis Australia, covering the stock.
Moelis agrees with Elvest's bullishness, rating RPMGlobal a strong buy.
Big contract wins haven't even been brought into earnings yet
Corporate Travel Management Ltd (ASX: CTD) investors cheered last month as the stock price gained 16.9%.
The Elvest team attributed this to new guidance that was "slightly ahead of expectations".
"Operational momentum continues to build solidly, with 2HFY23 earnings expected to be more than double that of the first half."
Earlier this year, Corporate Travel Management won big contracts from the Australian and UK governments.
And this is the great ace up the sleeve of those investors who buy in now.
"The $2.95 billion of annualised new client wins picked up during FY23 are yet to materially transact, which bodes well for earnings growth in future periods."
Although not unanimous, Corporate Travel Management enjoys decent support among the professional community.
According to CMC Markets, nine out of 14 analysts currently recommend the stock as a buy.
