There are some wonderful S&P/ASX All Ordinaries Index (ASX: XAO) shares that could be worth owning.
The biggest ASX shares may get the most attention, but the businesses with the most growth potential are significantly smaller than stocks like Commonwealth Bank of Australia (ASX: CBA) and BHP Group Ltd (ASX: BHP).
Which ASX All Ords shares are worth buying? Analysts have been looking for opportunities and have outlined some of the appealing options.
Writing on The Bull, these experts have revealed their optimistic views.
Image source: Getty Images
Aristocrat Leisure Limited (ASX: ALL)
This company is one of the world's largest poker gaming machine and software creators and manufacturers. The ASX All Ords share also offers online/mobile games.
Aristocrat Leisure has been rated as a buy by Tony Paterno from the broker Ord Minnett.
After looking at the company, Ord Minnett raised its valuation thoughts on the business.
Paterno said the acquisition of gaming companies Big Fish Games and Plarium were "successful moves", but the market has seemingly viewed that as a "negative" for the company's valuation.
The analyst outlined why he thinks the Aristocrat Leisure share price could go higher from an earnings multiple re-rating:
We expect this multiple to revert to its historical levels as the company returns to its core operations and possibly exits its non-core businesses once the strategic review is completed.
Nextdc Ltd (ASX: NXT)
Nextdc describes itself as Asia's most innovative data centre-as-a-service provider, and that it's "building the infrastructure platform for the digital economy, delivering the critical power, security and connectivity for global cloud computing providers, enterprise and government."
Damien Nguyen from Morgans is calling Nextdc a buy. The analyst pointed out that the ASX All Ords share recently raised $550 million from institutional investors via a capital raising to fund its expansion across Asia.
Morgans thinks the demand for data centres is a long term growth trend and that Nextdc is "well positioned to capitalise".
Nguyen believes at the current Nextdc share price that investors should "consider taking a position".
GQG Partners Inc (ASX: GQG)
GQG is a fund manager and another of the ASX All Ords shares chosen by Morgans analyst Nguyen as a buy.
The expert pointed out the GQG share price has drifted lower despite reporting a "solid performance" in the FY24 first-half result. The GQG share price is down more than 5% from 26 August 2024, as shown on the chart below.
Nguyen pointed out that the recent August funds under management (FUM) update from the ASX All Ords share saw its FUM reach US$160.8 billion, up from US$156.3 billion at 31 July 2024. In that monthly update, the company noted its net inflows for the year to date had reached US$15.2 billion.
The Morgans analyst then said:
We view the current share price as an attractive entry point, particularly as the stock was recently trading on an appealing annual dividend yield.
