There is a wide array of opportunities available on the ASX stock market – any of them can produce good investment returns, not just the most popular ones.
The funds management team at Wilson Asset Management have identified a few different names in its WAM Research Ltd (ASX: WAX) portfolio that could be good ideas.
WAM Research is a listed investment company (LIC) that looks to invest in the most compelling undervalued growth opportunities in the Australian market.
Let's look at two ASX stocks that WAM believes are buys at the current share prices.
Image Source: Getty Images
Generation Development Group Ltd (ASX: GDG)
WAM describes Generation Development Group as a provider of wealth and retirement-related products and services across platforms, including managed accounts and investment bonds.
The fund manager noted that the ASX stock released its update for the three months to December 2025 last month, which showed "strong underlying operating momentum", including total funds under management (FUM) of $34.5 billion (up 36% year over year) and record quarterly gross inflows of $393 million (up 57% year over year).
This growth was driven by Generation Life, one of the company's three divisions, which offers investment bonds and lifetime annuities.
WAM noted that the Generation Development Group's share price fell sharply after delivering its quarterly update.
The fund manager believes that market commentary suggested the reaction was driven less by the headline growth numbers and more by "pre-existing investor positioning and valuation levels ahead of the results, coupled with investor sensitivity to the timing of inflows within the Evidentia Group business."
WAM then explained why it sees this as an opportunity and why it thinks it's a buy:
While lumpier in nature versus the traditional investment bonds business, we believe momentum within Evidentia Group remains strong and view the current weakness as opportunity to add to our position given our conviction in the medium-term growth profile.
Supply Network Ltd (ASX: SNL)
The other ASX stock highlighted within the WAM Research portfolio was Supply Network, an automotive parts distributor that's focused on specialist undercarriage parts for the independent repair market.
The fund manager noted that in late January, the business released an earnings forecast for the six months to 31 December 2025, leading to a rise in the Supply Network share price.
That forecast included expected overall sales revenue of $200 million, as well as net profit after tax (NPAT) guidance of $22.9 million. The company also announced a fully-franked interim dividend of 36 cents per share, which will be paid on 2 April 2026.
Aside from the numbers, why was this such a promising update from the ASX stock? WAM wrote:
The update reinforced confidence in the business' earnings momentum heading into its half -year result expected in late February, with the fully franked dividend also highlighting balance sheet strength and cash generation.
