The S&P/ASX 300 Index (ASX: XKO) has gained an impressive 14.3% since the recent lows on 7 April, but this ASX 300 stock has left those gains wanting.
The fast-rising company in question is Australian Finance Group Ltd (ASX: AFG).
On 7 April, you could have bought shares in the mortgage broking company at an intraday low of $1.43 a share.
In late morning trade today, those same shares are changing hands for $2.20 apiece, up 53.9% in less than two months.
The ASX 300 stock also trades on a fully franked 3.6% trailing dividend yield.
Despite that blistering recent run higher, Richard Ivers, the portfolio manager of Prime Value Asset Management's Emerging Opportunities Fund and Microcap Fund, forecasts more outperformance ahead for Australian Finance Group.
But you may want to buy shares before the next RBA interest rate cut.
Here's why.
ASX 300 stock poised to catch falling interest rate tailwinds
Asked which stock his fund holds that he believes has the most near-term upside, Ivers said (courtesy of The Australian Financial Review), "Australian Finance Group is an interesting stock right now and not well-known nor well owned."
Commenting on his bullish outlook for the ASX 300 stock, Ivers explained:
A mortgage broker aggregator, its network of 4,000 brokers writes 10% of all residential mortgages in Australia. This distribution business is relatively stable and consistent and benefiting from recent investment in systems.
AFG also manufactures mortgages and, after a tough few years competing with bank cash-back offers, is now writing good volumes again.
As for the potential impact of further interest rate cuts on the ASX 300 stock, Ivers said, "This will really start to be evident in FY 2026 which is fast approaching, and interest rate cuts are positive for the company."
Ivers concluded:
AFG is trading on a relatively low price-to-earnings multiple, and earnings momentum is accelerating. So the near term looks good. With many building materials companies no longer listed, there are few options to gain housing exposure, so we expect it to become more widely owned in the coming period.
What's the latest from Australian Finance Group?
The last price-sensitive news out from AFG was the company's half-year results, released on 28 February.
Highlights included an 11% year-on-year increase in revenue for the six months, to $626 million. Net profit after tax (NPAT) of $15.3 million was up 6%.
As for what's ahead for the ASX 300 stock, Australian Finance Group CEO David Bailey said, "Favourable market conditions, an expanding distribution footprint, enhanced technology offerings and increased loan book size instil confidence in AFG's upward earnings trajectory."
