The fund manager Wilson Asset Management (WAM) has revealed two S&P/ASX 200 Index (ASX: XJO) shares where there are multiple reasons to think they can deliver good performance.
WAM Leaders Ltd (ASX: WLE) is a listed investment company (LIC) that largely focuses on businesses with larger market capitalisations. Below are two stocks that the investment team likes within the portfolio.
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WiseTech Global Ltd (ASX: WTC)
It was recently the ASX reporting season and WAM enjoyed the "strong result" from WiseTech. The investment team said the ASX tech share demonstrated "its ability to integrate its recently-acquired businesses called Blume and Envase, without losing the organic growth momentum."
The fund manager also said the ASX 200 share remained diligent on costs and positively surprised the market with its profit margin outlook.
Another positive from the report update was the announcement of three major new customer wins in the Asian region during the period, including Sinotrans, a large Chinese shipping company. This win meant WiseTech now has 13 of the top 25 global freight forwarders.
WAM Leaders said the report and customer wins validated the value proposition of WiseTech's core software platform (CargoWise) and its continued traction in the core global freight forwarding market. The investment team concluded:
We remain positive on WiseTech as we see the company continuing to gain market share in a large industry, led by its technology platform and new product launches as the company continues to invest in its product and technology for future growth.
Santos Ltd (ASX: STO)
Santos also recently reported its result to the market, though this one was "slightly below" market expectations.
The ASX 200 share didn't meet investors' forecasts because of "other" costs, including inventory and foreign exchange movements.
However, WAM Leaders pointed out the ASX oil and gas share reconfirmed its full-year guidance and declared an "outsized" dividend that was reportedly ahead of expectations.
Santos said it's committed to reducing the gap between the Santos share price and the value of its underlying asset base while returning additional cash flow to shareholders.
The investment team said:
We remain constructive on Santos as we see the company being catalyst rich, including potential strategic structural changes, as well as successful project executions in Barrosa and Alaska, which will de-lever the balance sheet and further improve cash flow performance.
