The recent ASX reporting season "showed some softness'' but was marginally better than feared, the analysts at Canaccord Genuity (CG) wrote in a recent research note.
The team at CG has identified four major ASX stocks they believe will do well over the next period, despite favouring global equities over domestic over the next six to 12 months.
They said earnings growth over the most recent reporting season looks set to come in at around 12%, while estimates have been trimmed marginally for the current year to about 11% growth, "which looks optimistic to [CG] given softening economic conditions''.
With this context in mind, let's see which stocks they like.
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Hub24 Ltd (ASX: HUB)
Hub24 shares are almost 30% down over a 12-month period, which CG has identified as a potential entry point. CG said that while there has been a temporary softness of funds inflows there, "remains a high-quality structural growth story''.
The company is trading well below its five year average, the CG team said.
They added:
This was driven by softer FY27 platform net flows, reflecting discretionary investment (non-super) pullback amid Federal Budget changes rather than advisers leaving the platform, with superannuation flows continuing to grow. FY28 platform FUA guidance of $186- 200bn implies ~17% growth, reinforcing the structural trajectory.
Telix Pharmaceuticals Ltd (ASX: TLX)
The CG team said that while the Telix share price has recovered well over the past month, they continue to see further substantial valuation upside.
They believe the shares remain as much as 70% undervalued, with the next six months "catalyst rich".
They added:
Two consecutive beats on Precision Medicine revenue, with Q2 sales coming in 10% above consensus, point to upside risk to FY26 revenue. Complementing its commercial momentum, the pipeline has had strong recent momentum and remains catalyst-rich, with the resubmission of Zircaix, the expected approval and launch of Pixclara, and enrolment progress and early efficacy data from the TLX591 ProsACT Part 2 trial all expected this year.
ResMed Inc (ASX: RMD)
The CG team said investor interest was returning to healthcare following the reporting season and that would benefit ResMed which is currently deeply discounted.
They added that CPAP device demand remained strong, and they believed that fears to ResMed's business from GLP-1 weight loss drugs were overdone.
They added:
Successive alternatives have failed to displace CPAP as the primary treatment for sleep apnea, while real-world data show GLP-1 users are more likely to initiate and remain on therapy. RMD's investment in diagnostic and referral channels adds further growth potential.
Goodman Group Ltd (ASX: GMG)
The CG team said that the market continues to undervalue Goodman Group's data centre opportunity, "despite a difficult-to-replicate global power bank providing significant runway to data infrastructure demand".
They said the company was trading at a similar valuation to the ASX All Industrials, despite having more attractive metrics.
They added:
The group's development work in progress surged 53% in FY26 to $19.7bn, with data centres now 78% of the pipeline, underpinning a significant uplift to the group's yield on cost, implying strong development margins. The key near-term catalysts will include major lease announcements, which should crystallise valuation uplifts and could trigger performance fees.
