2 ASX 200 shares to buy that are 'catalyst rich'

A fund manager is a fan of both of these stocks.

| More on:
a young boy dressed up in a business suit and tie has a cute grin and holds two fingers up.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

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.

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.

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on Opinions

A cute little kid in a suit pulls a shocked face as he talks on his smartphone.
Opinions

Telstra is paying 18 cents per share in dividends: Time to buy the stock?

Can we call on this business for good returns?

Read more »

A young woman sits on her bed holding a cup of coffee inside her recreational vehicle hired through the Camplify website
Cheap Shares

3 struggling ASX shares to buy at a discount

These stocks are down temporarily because of temporary issues. This could be a golden opportunity to buy cheap.

Read more »

Smiling couple looking at a phone at a bargain opportunity.
Opinions

If I were Warren Buffett, I'd buy these ASX shares in a heartbeat

I’m very optimistic about these three stocks.

Read more »

A man sits thoughtfully on the couch with a laptop on his lap.
Opinions

This ASX stock has jumped 32% this year, I think it can keep soaring

I rate this stock as a very good long-term buy.

Read more »

A young male builder with his arms crossed leans against a brick wall and smiles at the camera as the Brickworks share price climbs today
Opinions

This ASX 200 dividend stock looks like a top buy to me

I think investors can build good wealth with this ASX share.

Read more »

Woman looking at a phone with stock market bars in the background.
Opinions

Where should I invest in ASX shares when the stock market is at an all-time high?

We can still find opportunities at high stock market valuations.

Read more »

A man leans forward over his phone in his hands with a satisfied smirk on his face although he has just learned something pleasing or received some satisfying news.
Growth Shares

4 ASX growth shares I think will benefit from interest rate cuts in 2024

Not only will home loan holders rejoice, investors of these stocks could also be yelling with joy when the Reserve…

Read more »

A young boy dressed in an old man-style cardigan with business shirt and bow tied wearing big spectacles smiles to himself as he sits at a laptop computer at a desk with hands on keys.
Investing Strategies

New to investing? I'd invest my first $1,000 in ASX shares today!

It's intimidating buying stocks for the first time. Here is some advice on how I would invest my first grand.

Read more »