Some experts have revealed where they see value within the S&P/ASX 300 Index (ASX: XKO) share landscape.
Share prices are always changing, so when valuations adjust, it can open up opportunities if something moves from being fair value to good value.
In a piece on The Bull, analysts have rated some stocks as a buy, so I'll discuss three below.
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Worley Ltd (ASX: WOR)
Worley described itself as a global professional services company of energy, chemicals and resources experts. The company partners with customers to deliver projects and "create value over the life of their assets". It says it's "moving towards more sustainable energy sources, while helping to provide the energy, chemicals and resources now."
It was rated as a buy by Peter Day from Sequoia Wealth Management, who said the company's factored sales pipeline was up 14% in the financial year to 31 March 2024. Sustainable-related work represented 82% of the factored sales pipeline.
The ASX 300 share's plans include growing profit margins through automation and generative artificial intelligence and targeting market share gains with its technology solutions pipeline.
Telstra Group Ltd (ASX: TLS)
The ASX telco share is the leading provider of mobile services in Telstra. It also has a growing presence in cable infrastructure, enterprise, NBN services for households and telco services for Pacific Island nations.
Jabin Hallihan from Auburn Capital has called Telstra shares a buy following the decline since early February. Hallihan noted that Telstra recently reaffirmed its 2024 earnings guidance and revealed it's expecting underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to be between $8.4 billion and $8.7 billion in FY25.
Management's plans have "shifted to re-setting and reducing costs" in markets where growth has slowed. The expert also noted that the number of postpaid mobile subscribers is approaching 9 million.
Hallihan says fair value is around $4.50 per share, according to Auburn Capital. That's around 30% higher than today's value.
Australian Clinical Labs Ltd (ASX: ACL)
This ASX 300 share is a provider of Australian pathology services to clients including doctors, specialists, patients, hospitals, and corporate clients. The company has over 70 laboratories. It's one of the country's largest private hospital pathology businesses, and the SunDoctors brand specialises in detecting skin cancer and providing treatment.
Jabin Hallihan from Auburn Capital also rated this company as a buy. He noted Australian Clinical Labs recently affirmed that underlying earnings before interest and tax is expected to be "at the lower range of between $60 million and $65 million" in FY24.
In the opinion of Hallihan and the Auburn team, the company is "undervalued" after the significant fall of the Australian Clinical Labs share price – it's down 32% in the past 12 months, as shown on the chart below.
