All Ordinaries (ASX: XAO), or ASX All Ords, stocks may not get as much attention as larger businesses on the ASX. But, I view them as more likely to have strong growth potential.
It's usually a lot easier growing a $500 million business into a $1 billion business than going from $50 billion to $100 billion.
The two businesses I want to highlight are both among the leaders in Australia at what they do and have plans for more long-term earnings growth.
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Beacon Lighting Group Ltd (ASX: BLX)
Beacon Lighting has a national store network that sells lighting to consumers. It also has a commercial segment and an international segment.
There were a few positives from the recent FY26 half-year result. Total sales rose by 3.2%, company store comparative sales increased by 0.4%, international sales increased 13.5% and trade sales grew 12.6%.
However, operating expenses increased by 4.3% and this meant operating profit (EBIT) declined 5.5% and net profit dropped 6%.
I think there is a strong outlook for the company, with a possible increase from 130 stores at the end of HY26 to up to 217 stores over the long-term. The ASX All Ords stock continues to grow its commercial sales and market share.
If international sales continue to grow faster than total sales, then that segment will become a larger and more influential segment of the business. The rest of the world is a large addressable market, so there is a long growth runway here.
In five years, I'm expecting the business to be a materially large and more profitable business. It could be smart to invest while economic conditions and investor confidence are low.
Propel Funeral Partners Ltd (ASX: PFP)
Propel is the second-largest funeral operator in Australia. It has a very defensive set of earnings because, sadly, there is a certain level of demand for its services each year. It's a morbid idea, but it provides an essential service.
Death volumes are expected to slowly but steadily rise over the next decade because of Australia's ageing and growing population, giving the ASX All Ords stock a useful tailwind.
Additionally, its average revenue per funeral is growing at roughly the speed of inflation over the years. Again, that's not an incredibly strong growth rate but it provides a decent growth boost for revenue.
A growing number of funerals combined with the average funeral delivering more revenue, should lead to a rising top line. Added to that, the business is occasionally making bolt-on acquisitions to boost its market share, geographic spread and scale.
In five years, I believe the business will be making more revenue, have a larger market share, generate more profit and pay a larger dividend. After dropping 10% in the last year, at the time of writing, I think this could be the right time to invest at the current Propel share price.
