Australia's largest companies like Commonwealth Bank of Australia (ASX: CBA) and BHP (ASX: BHP) are heavily researched, widely owned, and constantly scrutinised by analysts and institutions. By the time an opportunity becomes obvious in the top 200, it is often already reflected in the share price.

That doesn't mean outperformance is impossible. It just means investors looking for stronger returns may need to broaden their search. For many, that search leads to ASX small-caps.

Why small caps can offer more opportunity

The ASX small-cap universe is far larger and more diverse than the headline indices suggest. It includes emerging leaders, niche operators, turnaround stories, and businesses still flying under the radar.

This part of the market is also less efficiently priced. Many small companies are followed by few analysts, and institutional ownership is often limited. As a result, share prices can lag behind fundamentals — creating potential opportunities for patient investors.

Small-caps also tend to respond more dramatically to changes in earnings expectations, sentiment, or economic conditions. While that volatility can be unsettling, it is also what creates the possibility of outsized gains.

Rotation can leave quality businesses behind

Markets move in cycles. Capital rotates between sectors, styles, and company sizes as conditions evolve.

When investors crowd into popular themes, other areas of the market can be left behind. ASX small-caps often feel this effect more acutely, with entire segments sold down regardless of individual company performance.

At times, this can result in high-quality businesses trading at prices that reflect pessimism rather than reality. For investors willing to look past short-term noise, rotation can open the door to opportunities that are harder to find in larger, more stable stocks.

Depressed valuations can support future returns

After several years of lagging large caps, parts of the small-cap market have been trading on noticeably lower valuations.

That does not guarantee a rebound. Markets can stay out of favour longer than expected. Still, when expectations are already low, companies often need less "good news" to surprise on the upside.

If earnings stabilise or improve, valuations can recover alongside profits. Over time, that combination has the potential to support stronger returns than those available in more fully priced parts of the market.

Small companies can change faster

Large companies can grow, but their size often limits how quickly they can transform.

Small-caps, by contrast, can materially change their trajectory in a short period. That might involve reaching profitability, expanding into new markets, securing a major contract, or strengthening the balance sheet.

These inflection points tend to have a greater impact on smaller businesses, which is why returns across the small cap universe are far more dispersed. Some companies struggle. Others go on to deliver substantial gains as their prospects improve.

M&A activity can act as a tailwind

Another factor supporting interest in ASX small caps is mergers and acquisitions.

When organic growth is hard to find, larger companies often look to acquisitions to expand earnings. Smaller, well-run businesses can become attractive targets — particularly when valuations are reasonable and growth elsewhere is scarce. Just look at some of 2025's small cap takeover winners like RPM Global (ASX: RUL).

Foolish takeaway

ASX small-caps are not without risk.

They can be more volatile, less liquid, and more sensitive to economic shocks than large caps. That is the price investors pay for the potential upside.

For many, the question isn't whether small-caps are better than large-caps. It's whether small-caps can play a role in a diversified portfolio — particularly for investors seeking opportunities beyond the most crowded parts of the market.

For investors willing to think long term and accept volatility, ASX small-caps could be where the next wave of returns comes from.

The post ASX small-caps could be where the next wave of returns comes from appeared first on The Motley Fool Australia.

According to the company's newly released voting results, an extraordinary 99.88% of votes cast were in favour of the takeover. In addition, 96.90% of shareholders present and voting supported the transaction, comfortably exceeding both approval thresholds required under the Corporations Act.

The outcome confirms what was already evident from proxy tallies ahead of the meeting: shareholder support for the Caterpillar bid is emphatic.

With no superior offer emerging, RPM investors have embraced the opportunity to crystallise significant, certain value at a premium. RPM Global shares are up 65% year to date, largely spurred on by news of the acquisition.

What happens next?

Although shareholder approval is a major milestone, several steps remain before the scheme becomes binding.

The scheme is still subject to approval by the Foreign Investment Review Board (FIRB), which remains pending, as well as Federal Court approval, with a hearing scheduled for 3 February 2026 in Melbourne.

If all conditions are met, RPM Global shares are expected to be suspended from trading at the close on the effective date, and the takeover would be fully implemented on 18 February 2026.

Why shareholders backed the deal

For most investors, the Caterpillar offer represents a clean exit at a compelling valuation with no market execution risk. In the absence of any rival bids, the certainty of cash today outweighs the operational risks and competitive pressures involved in continuing to scale the business independently.

Mining technology remains a rapidly evolving sector, and Caterpillar's global footprint and financial strength provide RPM's software with an opportunity to reach a wider commercial platform than it could achieve alone.

Foolish bottom line

With shareholder approval secured and the ACCC having already cleared the deal, only FIRB and the court remain as formal hurdles. Barring unexpected delays, RPM Global appears firmly on track to join the Caterpillar group early in 2026, marking the end of the ASX chapter for this mining technology company.

The post What's the latest update on takeover target RPM Global? appeared first on The Motley Fool Australia.

With that in mind we look at two ASX companies – an insurance brokerage company and a tech company which provides mining software solutions – that analysts have recently tipped as sells (courtesy of The Bull).

Limited upside left for this ASX 300 share

The first company you might want to sell is RPMGlobal Holdings Ltd (ASX: RUL).

That's according to Medallion Financial Group's Stuart Bromley.

RPMGlobal shares are up 0.3% in late morning trade on Friday, changing hands for $4.915 apiece. This sees the share price up 63.8% in 2025.

"RUL is a high-quality mining software business, operating as a pure play software-as-a-service provider to major mining clients and state governments," Bromley said.

So, why is he issuing a sell recommendation on the ASX 300 share?

Bromley explained:

RUL received a takeover offer at $5 a share. A RUL shareholder vote regarding the takeover proposal is scheduled for December 19. The stock was trading at $4.91 on November 27, so upside is limited.

That takeover offer was lobbed by United States based mining equipment manufacturer Caterpillar Inc (NYSE: CAT). RPMGlobal announced the acquisition deal on 1 September. And investors responded by sending the share price rocketing 22.8% on the day.

Bromley conclude, "With many quality large market capitalisation stocks now trading at meaningful discounts, we believe it's more beneficial to sell and redeploy the capital into more attractive opportunities."

Which brings us to…

Company facing earnings pressure

Peak Asset Management's Niv Dagan believes it is time for investors to sell Steadfast Group Ltd (ASX: SDF).

"Steadfast operates a large general insurance broker network," he said.

Steadfast shares are up 2.2% at time of writing on Friday, swapping hands for $5.11 each. But the ASX 300 share has underperformed this year, with the Steadfast share price down 12.6% in 2025. Losses which will have been modestly eased by the stock's 3.8% fully franked dividend yield.

And Dagan believes the company will struggle to outperform in the year ahead.

"Steadfast has materially reduced fiscal year 2026 premium rate expectations, cutting Australian premium growth guidance from between 3% and 5% to between 1% and 2%," he noted.

Dagan added:

While underlying net profit after tax guidance remains between $315 million and $325 million in fiscal year 2026, the company is increasingly reliant on acquisitions and cost-out initiatives to meet earnings targets.

Connecting the dots, Dagan said, "Structural pressures in insurance broking are intensifying. The shares have fallen from $6.63 on October 28 to trade at $5.225 on November 27."

The post Sell alert! Why analysts are calling time on these 2 ASX 300 stocks appeared first on The Motley Fool Australia.

Instead of spending years and millions of dollars trying to build a new business arm, companies with strong balance sheets can simply buy the innovators already nibbling at their market share. It's a shortcut to fresh customers, new technology, and faster earnings growth.

For investors, this dynamic makes ASX small caps an intriguing hunting ground. Businesses that have done the hard yards of establishing products and market share can suddenly find themselves the subject of takeover bids — often at hefty premiums.

M&A momentum builds

There's been no shortage of deal-making across the Australian market in 2025. Several small-to-mid cap names have already attracted corporate suitors, with takeover offers sparking sharp share price gains.

Let's look at three recent examples:

RPMGlobal Holdings Ltd (ASX: RUL)

Mining software specialist RPMGlobal has seen its shares surge more than 90% since April. The big move was driven by a non-binding takeover offer from US giant Caterpillar Inc (NYSE: CAT), pitched at $5.00 per share and valuing the company at more than $1 billion. With long-standing ties to Caterpillar and a strong recurring revenue base, RPM is a natural bolt-on candidate.

Tourism Holdings Ltd (ASX: THL)

Tourism Holdings, the world's largest RV rental operator, was catapulted 50% higher in June after receiving a conditional all-cash offer from BGH Capital and the Trouchet family interests. The consortium already secured a 19.99% stake, underlining its conviction. Investors saw firsthand how quickly takeover news can re-rate a small-cap stock.

Johns Lyng Group Ltd (ASX: JLG)

Insurance building services and restoration company Johns Lyng was quickly re-rated after takeover interest emerged. When Pacific Equity Partners (PEP) lodged its first indicative offer in May, the stock had been under pressure, with sentiment drifting lower. That gave the right buyer an opportune moment to step in.

Following the subsequent scheme implementation deed, the $4.00 per share offer represented a 77% premium to where the share price closed the day before the first bid became known. It's a reminder that when the fundamentals of a business are attractive it's not just individual investors who take notice, but also professional acquirers with deep pools of capital.

Thinking like an acquirer

When larger players hunt for growth, they look for qualities that make a smaller business more valuable in their hands than on its own. Investors can use the same lens.

The most attractive traits include:

• Clear synergies – the ability to slot into a bigger platform, cut costs, or accelerate sales.
  
• Scarcity value – assets, services, or expertise that are difficult or expensive to replicate.
  
• Supportive ownership – a register open to deals, often with founders still aligned to maximise value.
  
• Undervaluation – shares trading below intrinsic worth, giving acquirers room to pay a premium.
  
• Favourable backdrops – low funding costs, plenty of private equity capital, and strong sector demand.
  
  

For small-cap investors, the lesson is simple: focus on fundamentals, watch how management behaves, and be patient. If the market doesn't close the gap, an acquirer might.

Foolish takeaway

The current wave of M&A activity highlights how much value exists in the small end of the ASX. For investors, the challenge is spotting businesses with the hallmarks of tomorrow's targets: scalable, profitable, and positioned in industries where larger players need growth.

By focusing on the qualities acquirers prize, investors may uncover small caps capable of delivering outsized returns, whether through compounding growth or an eventual buyout.

The post Why ASX small caps are in the takeover spotlight appeared first on The Motley Fool Australia.

During the Monday lunch hour today, shares in the mining software solutions provider are changing hands for $4.66 apiece.

That sees the RPMGlobal share price up a whopping 90.2% since 9 April. That's enough to turn an $8,000 investment into $15,216. In just five months.

We'll look at why the analysts at Taylor Collison expect more outperformance from the ASX 300 stock below.

But first…

What's been driving the outsized RPMGlobal share price gains?

Taking a look back at the price charts, RPMGlobal shareholders recently enjoyed two days of seriously outsized gains.

The first came on 27 August, when the RPMGlobal share price closed the day up 17.2%, trading for $3.88 apiece.

That followed the post-market-close release of the ASX 300 tech stock's full-year FY 2025 results on 26 August.

Investors sent the share price flying after the company reported a 6% year-over-year increase in gross operating revenue to $76.7 million. On the bottom line, the company's net operating profit of $2.2 million was up 311% from FY 2024.

But investors would have done well to buy the small dip in the RPMGlobal share price the following day when the stock closed at $3.77 a share. Because after emerging from a trading halt on 1 September, the RPMGlobal share price rocketed 22.8% to close the day at $4.63.

This big leg up came after the ASX 300 tech stock reported it had received a Non-Binding Indicative Offer (NBIO) from United States heavy equipment giant Caterpillar Inc (NYSE: CAT).

Caterpillar lobbed a bid of $5.00 per share, which implies an Enterprise Valuation (EV) of $1.05 billion

RPMGlobal entered into an exclusivity arrangement with Caterpillar and the board said it would recommend shareholders vote in favour of the takeover proposal barring a superior proposal.

Which brings us back to why Taylor Collison expects more short-term outperformance ahead.

ASX 300 tech stock tipped for more outperformance

Taylor Collison maintained its outperform rating on RPMGlobal shares and a $5.00 price target, in line with Caterpillar's takeover bid.

That represents a potential upside of 7.3% from current levels.

"With further validation of the growth pipeline, and confirmed corporate interest, we maintain our outperform recommendation," the broker said of its outlook for the ASX 300 tech stock.

According to the broker:

We cannot be certain but consider it unlikely CAT would find reason for not submitting a BSID [binding scheme implementation deed] post due diligence. We suspect that anything materially significant would already have come to light. Management's 1st September investor call confirmed 25 confidentiality agreements had been signed, allowing parties access to the "data room"…

Significantly, the flagship AMT product, which presently makes up ~37% of RUL's ARR [annual recurring revenue], was originally created as a solution for CAT to manage maintenance contracts in 2002. With AMT still used today in both CAT and competing fleets globally, CAT's understanding of the offering is likely well established.

The post Up 90% since April, why this ASX 300 tech stock is tipped to keep outperforming appeared first on The Motley Fool Australia.

Four ASX shares that are not letting that hold them back are listed below. Here's why they are rising:

4DMedical Ltd (ASX: 4DX)

The 4D Medical share price is up 33% to 76 cents. This morning, this respiratory imaging technology company announced that its ventilation-perfusion product, CT:VQ, has received U.S. Food and Drug Administration (FDA) 510(k) clearance. It notes that this represents a historic moment in respiratory diagnostics, as CT:VQ becomes the world's first non-contrast imaging modality capable of delivering quantitative ventilation and perfusion analysis directly from standard chest CT scans. CEO and Founder, Andreas Fouras, said: "FDA clearance of CT:VQ is a defining milestone for 4DMedical and for lung health. For the first time in history, doctors can order a lung perfusion scan without requiring their patients to be injected with any radioactive tracer or contrast media."

Genesis Minerals Ltd (ASX: GMD)

The Genesis Minerals share price is up 10% to $4.96. This follows the release of drilling results from its Laverton and Leonara projects. The gold miner's managing director, Raleigh Finlayson, said: "Genesis is focused on maximising financial returns and organic growth generates some of the strongest financial returns in mining. We have the assets and infrastructure to deliver this and that is why we have doubled our annual exploration budget. This investment is already delivering outstanding drilling results which illustrate the immense scope to grow the inventories at both Laverton and Leonora."

Harvey Norman Holdings Ltd (ASX: HVN)

The Harvey Norman share price is up 9% to $7.52. This appears to have been driven by a positive reaction to the retail giant's FY 2025 results from brokers. For example, this morning, the team at Citi responded to its results by retaining its buy rating and lifting its price target from $5.80 to $7.70.

RPMGlobal Holdings Ltd (ASX: RUL)

The RPMGlobal share price is up 23% to $4.64. The catalyst for this is news that the mining software company has received a takeover offer from US giant Caterpillar Inc (NYSE: CAT). An offer of $5.00 cash per share has been tabled. In response, RPMGlobal has entered into an exclusivity arrangement with Caterpillar. The company stated: "Subject to the parties entering into a binding SID on terms consistent with the Indicative Proposal and following completion by Caterpillar of confirmatory due diligence, the RPM Board intends to recommend the Proposed Transaction to RPM shareholders and to vote any RPM shares they hold in favour of the Proposed Transaction."

The post Why 4DMedical, Genesis Minerals, Harvey Norman, and RPMGlobal shares are charging higher appeared first on The Motley Fool Australia.

Four ASX shares that are rising more than most today are listed below. Here's why they are climbing:

ARB Corporation Ltd (ASX: ARB)

The ARB Corporation share price is up 5% to $34.87. This appears to have been driven by a broker note out of Citi this morning. According to the note, the broker has upgraded this 4×4 automotive parts company's shares to a buy rating with a $38.70 price target. Citi made the move on valuation grounds following a sharp decline in its share price this year. The broker also believes that ARB could be a big winner from further interest rate cuts in 2025.

Cleanaway Waste Management Ltd (ASX: CWY)

The Cleanaway share price is up almost 2% to $2.80. This morning, this waste management company revealed that the Australian Competition and Consumer Commission (ACCC) has cleared its acquisition of Contract Resources. The acquisition is now expected to complete on 31 July 2025. Commenting on the transaction, Cleanaway's CEO and managing director, Mark Schubert, said: "Contract Resources is a highly strategic acquisition that when combined with our Industrial Services (IS) business, creates a leading provider of integrated, specialised technical services to customers in the oil & gas, resources and industrial sectors."

Hub24 Ltd (ASX: HUB)

The Hub24 share price is up almost 3% to $91.59. This may have been driven by the release of a bullish broker note out of Bell Potter on Thursday. Bell Potter reaffirmed its buy rating on the investment platform provider's shares with an improved price target of $100.00 (from $75.00). It said: "FY25 is shaping up to be a milestone year for HUB with revenue supported by record net fund flows, recovering financial adviser additions, accelerated license agreement signings and development of new platform menu offer partnering with investment managers to drive growth. HUB has seen the largest annual market share gain of all platform providers and commands 7.9% of the serviceable addressable market."

RPMGlobal Holdings Ltd (ASX: RUL)

The RPMGlobal share price is up 11% to $3.16. This follows the release of a sales update from the mining software solutions company this morning. RPMGlobal revealed that total contracted value (TCV) was $100.8 million for FY 2025. This represents a 30.9% increase on the $77 million it recorded in the prior year. It also revealed that it has $200 million in pre-contracted, non-cancellable software revenue that will be recognised in future years. This is up $38.7 million or 24.2% from the same time last year.

The post Why ARB, Cleanaway, Hub24, and RPMGlobal shares are storming higher today appeared first on The Motley Fool Australia.

In morning trade, the ASX 300 tech stock is up 11% to $3.17.

Why is this ASX 300 tech stock jumping?

Investors have been buying the mining software solutions provider's shares this morning following the release of an update on its sales performance in FY 2025.

According to the release, RPMGlobal achieved total contracted value (TCV) of $64.5 million in the second half of FY 2025. This brought its full year TCV to $100.8 million, which represents a 30.9% increase on the $77 million it recorded in the prior year.

The bulk of this is from subscription licenses, with sales up 33.6% to $100.7 million for the 12 months. The ASX 300 tech stock's perpetual licenses contributed $100,000 to its TCV, which is down from $1.3 million a year ago.

But the decline in revenue from perpetual licenses isn't a bad thing. It is something the company has been working on. It explains:

Given the Company's strategy and preference to sign subscription license sales (which deliver stable and predictable recurring revenue reported over multiple financial years) over one off perpetual license sales (which are fully reported as revenue in the financial year they are sold), the Company was pleased to see perpetual license revenue reduce by $1.2 million year on year.

The ASX 300 stock also provided the market with an update on its annualised recurring revenue (ARR).

As of 1 July 2025, the total value of ARR was $69.1 million. This comprises $62.8 million in subscription fees and $6.3 million in maintenance fees. Though, the company highlights that the majority of subscriptions are transacted in US dollar. So, with the USD dropping sharply against the AUD in June, this has had a negative point in time impact on the ARR value.

The company also revealed that it has $200 million in pre-contracted, non-cancellable software revenue, which will be recognised in future years. This is up $38.7 million or 24.2% from the same time last year.

What about earnings?

No earnings update was provided with today's release. This is because of the complexities arising from the divestment of its Advisory business. It explains:

As a result of the successful divestment of its Advisory business to SLR, which was completed on 2 April 2025, and the ongoing Transition Services Agreement (TSA) with SLR, the Company will not provide an update at this time on its expected Group Revenue, Operating EBITDA, and Profit Before Tax (PBT), which will include a part year contribution from the Advisory division on a statutory basis.

Following today's gain, this ASX 300 stock is now up 20% since this time last year.

The post Guess which ASX 300 tech stock is jumping 11% on big news appeared first on The Motley Fool Australia.

On my way back from a recent trip to the US, I brought home a few boxes of See's Candies for friends and family. I got the peanut brittle, which reminds me more of Charlie Munger than Warren, but that's beside the point.

Source: Me. See's Candies gift I bought for friends and family.

It prompted me to re-read the 2007 Berkshire Hathaway shareholder letter, where Buffett explained why See's Candies was one of his all-time favourite investments. 

The short version? It was boring, capital-light, and ridiculously profitable.

Armed with this filter, I went looking for ASX companies that fit the mould.

Here are two that stand out for me:

The Proven One: Supply Network Ltd (ASX: SNL)

Supply Networks sells spare parts for trucks and buses. Not really exciting stuff, but that's the point.

Over the past five years, Supply Networks quietly delivered a +1,054% return plus a dividend to boot! This was driven by consistently delivering strong earnings growth and exceptional capital discipline.

Here's what makes Supply Networks similar to See's Candies:

• Repeat customers: Truck and bus fleets rely on Supply Network's product range and services, just like how chocolate lovers keep going back for more See's Candies.
  
• Highly profitable: Return on equity has exceeded 30% in each of the last 3 years, and earnings per share have consistently increased in each of the last 5 years.
  
• Boring but moaty: What makes a spare-parts seller so consistently profitable and at such high margins? Competitive advantage. Supply network has great distribution through its network of branches that operate under its Multispares brand. This gives it familiarity and builds customer habits in the same way that going to Woolies, Coles, or Aldi is like for grocery shoppers. 

One way, however, that Supply Networks is NOT like See's Candies is that it holds a lot of inventory. At last count, it had $115m of inventory, which is a large (but necessary) number for a company with only $33m of 2024 profit and $16.5m of net cash from operating activities.

See's Candies, on the other hand, keeps minimal inventories due to short production and distribution cycles.

The Emerging One: RPM Global Holdings Ltd (ASX: RUL)

RPM builds enterprise software for mining companies. These tools help with mine planning, asset optimisation, and operational decision-making.

It's been around for years, initially as a professional services provider, but it's been transforming into a high-margin software business with a growing stream of subscription revenue.

Here's why it reminds me of See's Candies:

• Quietly dominating: How many mining-specific software companies have you heard of? This is not an industry that generalists building software companies like to target, so RPM Global is very much off the beaten path, but it's making the most of it.
  
• Repeat customers: Just like Supply Networks before, RPM Global's subscriptions business earns its income from repeat customers who use its services over and over again.
  
• Consistent execution: RPM Global's management laid out the plan years ago to transform its operations into a mainly subscription software business. Credit where it's due: They have consistently executed that plan, and I think that will continue.
  

However, it's worth pointing out that RPM Global still has a lot to prove, and it's different from See's Candies in other ways, too. For example, the company is reinvesting a lot of cash to grow and develop its subscription software business, whereas See's Candies had limited reinvestment opportunities and would often return capital to its shareholders. 

The RPM Global share price is up 177% over the last 5 years and I think it can keep going. It has all the ingredients, and it's certainly one that I'm watching closely.

Final thoughts: Sweet lessons for smart investors

Buffett's love for See's isn't about chocolate (though I'm sure he loves that too!). It's about business.

You don't always need the highest-growth business with an engaging narrative. Sometimes, the best businesses are the ones doing essential things, quietly, for years, while compounding returns under the radar.

Supply Network has already proven it fits the mould. I think RPM Global may be next. Just like Buffett, I'll take a few sweet compounders on the ASX any day.

The post The See's Candies playbook for ASX investors appeared first on The Motley Fool Australia.

This business describes itself as a global leader in providing and developing mining software solutions. It has been helping the mining sector for more than 50 years. Its aim is to help mining clients extract more value at every stage of the mining lifecycle. The software has helped deliver safer, cleaner, and more efficient operations in over 125 countries.

I think it's a compelling time to look at the business because the RPMGlobal share price has dropped close to 20% since 5 December 2024, as the chart below shows.

There are a few reasons why I think it has an appealing future at this valuation level (or even if it was a bit higher).

Solid underlying growth

In the first half of FY25, the business reported a pleasing level of growth. It said that its software division achieved 7% year over year growth, and the company's underlying operating profit (EBITDA) rose by 21.2% to $8.2 million.

Were it not for a one-off royalty sale in the first half of FY24, the business would have reported pleasing growth in profit before tax and net profit.

The business said the transition from once-off perpetual licenses to multi-year subscription licensing continues to provide significant operating leverage.

In a sign of how appealing that company's software is, a number of clients, including Mineral Resources Ltd (ASX: MIN), Rio Tinto Ltd (ASX: RIO), and Newmont Corporation CDI (ASX: NEM), have adopted new products in FY25.

The ASX small-cap stock said it's actively working with some of the world's largest mining companies on productivity software development projects, which it believes will solidify and expand its reputation as a respected and reliable 'go to' software vendor for the global mining industry.

Focus on software

The company recently announced the sale of its advisory business to SLR Consulting Australia for an enterprise value of A$63 million. The ASX small-cap stock thought a global consulting company would see more value in its advisory business than a software company would.

RPMGlobal said there is little day-to-day operational overlap between its software and advisory operations, so it should have little impact on the continuing operations and prospects of the software business, while making it easier for (software) investors to understand and appreciate RPMGlobal shares.

SLR will pay RPMGlobal for corporate services to facilitate the smooth transition of employees, clients, and operational systems.

I think the sale of the advisory business will allow the company to give the software side of the business complete focus and help it succeed.

Share buyback

The final positive I'll note is that the business is planning to restart its share buyback for shareholders.

A share buyback is useful because it returns some of the profit to shareholders while reducing the overall share count. The value of the business is being shared across fewer shares, so in theory, the value of each share is increased.

Doing a share buyback increases some of the equity/share-based metrics such as earnings per share (EPS) and return on equity (ROE).

This alone should help increase how much investors are willing to pay for the ASX small-cap stock.

The future looks bright for this company, in my opinion.

The post Why I think this ASX small-cap stock is a bargain at $2.70 appeared first on The Motley Fool Australia.

At the time of writing, the ASX 300 tech stock is up 7% to $2.81.

Investors have been buying the mining software company's shares following the release of its record half year results.

ASX 300 tech stock jumps on results day

• Revenue up 9.6% to a record of $57.9 million
• EBITDA up 20.6% to a record of $8.2 million
• Profit after tax up 30% to $5.75 million

What happened during the half?

For the six months ended 31 December, the ASX 300 tech stock reported a 9.6% increase in revenue from ordinary activities to $57.9 million. This reflects a 6.8% increase in software revenue to $37.7 million and a 15.4% lift in advisory revenue to $20.2 million.

Management advised that the Total Contracted Value (TCV) of software subscriptions and perpetual licences with new maintenance sold during the first six months of FY 2025 was $36.4 million. This is a 36.8% increase over the prior corresponding period.

However, of this $36.4 million in TCV sold, only $0.6 million was recognised in the first half of FY 2025 due to the majority of agreements being concluded in December.

The ASX 300 tech stock's EBITDA increased by $1.4 million or 20.6% over the prior corresponding period to $8.2 million and its underlying profit after tax was up 30% to $5.75 million. This was in line with expectations and guidance.

On a reported basis, its profit was down 30.9%. This was due to the one-off sale of future royalty rights to a simulation product in the prior corresponding period and the first half of FY 2025 including one-off restructuring costs of $0.4 million.

Asset sale

In other news, the ASX 300 tech stock revealed that it has entered into an agreement to divest its global Advisory division to SLR Consulting Australia for an enterprise value of $63 million. This represents multiples of 2x FY 2024 revenue and 8.1x FY 2024 earnings.

Management made the strategic decision to divest the business to focus solely on its Software business. This move aligns with the company's long-term vision of becoming the leading software technology business within the global resources industry.

The company's CEO, Richard Mathews, said:

Throughout this process and building with every conversation the team has held, it has reinforced to us that SLR is a good home for our Advisory employees and clients. SLR has a very clear vision that is aligned with the leadership team of the Advisory business – being focused on becoming the leading global consultancy for environmental and business solutions by delivering quality advice to clients.

I have admired SLR's commitment to its culture, vision, and values, which align with those deployed by RPM's advisory team. I am very pleased to have reached this agreement with SLR and know they will be the right home for our advisory staff and will continue to strengthen the quality of offering the advisory team delivers to its clients into the future.

Outlook

Management spoke positively about its outlook. It highlights that it is actively working with the world's largest mining companies on several productivity software development projects.

It believes this will "solidify and expand the company's reputation as a respected and reliable "go to" software vendor for the mining industry."

However, due to the divestment of the Advisory business, the ASX 300 tech stock feels it is not in a position to provide reliable FY 2025 financial guidance. As a result, it has withdrawn its current guidance and intends to reissue new guidance early in fourth quarter of FY 2025 following closure of the Advisory transaction.

The post This ASX 300 tech stock is jumping 7% on record half year results appeared first on The Motley Fool Australia.

Then you may want to run your slide rule over global sports data and analytics company Catapult Group International Ltd (ASX: CAT) and mining software solutions provider RPMGlobal Holdings Ltd (ASX: RUL).

That's according to the fund managers at Monash Investors, who hold both Aussie technology companies in their Monash Investors Small Companies Fund.

And Monash Investors is bullish on the outlook for the ASX tech shares in 2025 and beyond.

Here's why.

Two fast-growing ASX tech shares

In the fund's December update, Monash Investors noted, "An important dynamic within our portfolio that we've really emphasised is its multi-thematic nature."

The fund managers added:

We primarily own what we consider to be higher quality growing companies that carry the prospect of both meaningful earnings growth over time, as well as valuation re-rate as they grow and graduate through the market cap ranks attracting greater investor interest.

As recent examples of growing and re-rated companies, they cited ASX tech shares RPMGlobal and Catapult Communications.

Monash Investors noted that both companies "are high-quality software businesses with significant growth potential, high switching costs (and/or inferior alternatives), and low customer churn. Each of which has also re-rated over the past year as they've grown and joined the S&P/ASX 300 Index (ASX: XKO)."

Catapult was added to the S&P/ASX All Technology Index (ASX: XTX) on 23 September as part of S&P Dow Jones Indices quarterly rebalance. RPMGlobal was added to the ASX 300 on the same date.

What's been happening with the companies?

Both ASX tech shares have delivered outsized gains to investors over the past 12 months.

Shares in RPMGlobal are up 58% since this time last year while the Catapult share price has, well, catapulted up a whopping 177%.

As for what's been driving the big share price gains, for FY 2024, RPMGlobal achieved a 15% year-on-year revenue increase to $113.3 million. And underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $15.3 million were up 28% from FY 2023. On the bottom line, the company's net profit was up 132% to $8.6 million.

Catapult has also been posting strong growth metrics.

For its half-year results, announced on 14 November, the ASX tech share reported revenue of US$57.8 million, up 19% year on year. And annualised contract value (ACV) growth in constant currency came in at 20% to reach an all-time high of US$96.8 million.

As the Motley Fool's James Mickleboro pointed out on the day, "This is a big positive given that it is Catapult's leading indicator of future revenue."

The post 2 booming ASX tech shares with more 'significant growth potential' appeared first on The Motley Fool Australia.

RPMGlobal shares are trading 0.85% lower at $2.33 apiece as investors digest the company's annual numbers.

Meanwhile, the S&P/ASX 200 index (ASX: XJO) is up 0.7% at the time of writing.

Let's see what the company posted.

RPMGlobal share price down despite solid growth

Key highlights from RPMGlobal's annual numbers include:

• Total revenue came to $113.3 million, up 15% year on year.
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) $15.3 million, an increase of 28% from FY23.
• Net profit of $8.6 million, representing a 132% rise from FY23.
• Operating cash flows of $16.5 million.
• Repurchased $12.7 million worth of shares at an average price of $1.75 per share.

What else happened in FY24?

The RPMGlobal share price had a strong year in FY24. On the business end, revenues expanded in its software and advisory services divisions.

Advisory revenues were up 20% year over year to $37.5 million, driven by increased demand for battery and critical minerals studies as well as environmental, social, and governance (ESG) consulting.

In its software division, growth subscription models continued their uptrend, with subscription revenue increasing by 16%. In total, software sales were up 14% year over year to $75 million.

Meanwhile, it ended the year with $151 million in pre-contracted software license and maintenance revenue, up more than 420% year over year.

Additionally, RPMGlobal expanded its global footprint, establishing new "Global Framework Agreements (GFAs) with "three of the largest mining companies in the world".

Management expects these agreements to "significantly shorten the process and reduce procurement costs" for the business and its customers. This could impact the RPMGlobal share price.

What did management say?

In the annual report, chairman Stephen Baldwin commented positively on the year, stating:

[FY24] was another year dominated by global events and economic challenges that impacted our staff and customers in one way or another. However, through it all, the company grew revenue across the business, including a 16% increase in software subscription license revenue.

Due to the growth in software TCV sales, at the end of FY2024, the company had $161.0 million in pre-contracted non-cancellable software licence and maintenance revenue, which will be recognised across future years, up $28.8 million from the same time last year.

Baldwin also explained the rationale for withholding the dividend:

The Board has again resolved not to pay a dividend this financial year. The company still has minimal franking credits (less than $0.3 million) and until it starts producing these, it views buying back shares as the most appropriate form of capital management.

What's next?

Looking forward, RPMGlobal is optimistic about its prospects in FY25. The company expects revenue to range between $120 million and $125 million, with operating EBITDA projected between $17.5 million and $19.5 million.

Management also anticipates continued growth in the software solutions division and plans to continue buying back shares in FY25.

We believe RPM is now the mining software vendor of choice for surface miners and has started making good inroads into the underground mining space. with its AMT and ShiftManager solutions.

RPMGlobal share price snapshot

The RPMGlobal share price has faced some downward pressure on Monday despite the company's positive top-line performance in FY24.

The stock has increased more than 42% in the past 12 months and 33% in the year to date.

The post RPMGlobal share price slips despite 15% revenue growth in FY24 appeared first on The Motley Fool Australia.

Below we look at three ASX companies currently still on the smaller end of the market cap spectrum that could deliver shareholders some juicy returns in FY 2025 and beyond.

These stocks were each named as top picks by leading fund managers at the Pinnacle Investment Management Group Ltd (ASX: PNI) 2024 Investment Summit.

Riding the energy transition

The first ASX small-cap stock tipped to potentially outperform in FY 2025 is Gentrack Group Ltd (ASX: GTK).

Gentrack provides customer billing software to energy utility companies.

And Eleanor Swanson, portfolio manager at Firetrail Investments, said this is one stock investors should keep a close eye on.

Firetrail recently added Gentrack to its own portfolio.

"The reason we like Gentrack is it's going to benefit from the energy transition, not only in Australia but globally," Swanson said.

She added:

The distribution model for energy utility companies is becoming a lot more complicated now that we've got wind and solar, battery storage, and customers pushing energy back the grid.

A technology provider like Gentrack, with its modern, flexible architecture, is going to take enormous market share from SAP and Oracle and help those energy utility companies transition their businesses and service their customers better.

Swanson believes that this ASX small-cap stock could rival the biggest players in time.

"We think Gentrack's a stock that everybody should have a look at and hopefully it'll become a household name like a WiseTech Global Ltd (ASX: WTC) or an Altium," she said.

The Gentrack share price is up 132% in a year.

ASX small-cap stock growing annual revenues

The second ASX small-cap stock tipped for strong growth is RPM Global Holdings Ltd (ASX: RUL).

David Wanis, co-founder of Longwave Capital Partners, said RPM Global is one of Longwave's top investment ideas in the current market.

"RPM Global is a mining service company on 50 times earnings, and that combination is a reason why companies like this in small caps get overlooked," he said.

So what caught Longwave's interest?

According to Wanis:

RPM Global has been around for 20 years developing software for tier 1 mining companies like BHP Group Ltd (ASX: BHP), Rio Tinto Ltd (ASX: RIO) and Newmont Corp (ASX: NEM) to help them manage all parts of their line operations.

RPM Global have spent about $200 million on R&D over the past 20 years building the software out. And they're now starting to see real traction, and that's the annual recurring revenue growth from the software that they're giving to clients.

It's not just the growth up until today that we're interested in or excited about with this stock, but it's the growth for the next five years and well beyond that.

As for what underpins this strong growth outlook, Wanis said this ASX small-cap stock is still "really early in the penetration story".

Wanis said:

Only 25% of Tier 1 miners are current customers. So RPM Global have a lot of new customer opportunities and they have multiple modules to sell. The strategy for RPM Global will be 'land and expand'.

The RPM Global share price is up 58% in a year.

Which brings us to…

Exciting growth potential for this ASX small-cap stock

The third ASX small-cap stock tipped for strong potential outperformance at the 2024 Pinnacle Investment Summit is NZME Ltd (ASX: NZM), which operates three business segments.

Spheria Asset Management co-founder Matthew Booker is particularly bullish on the potential for the company's property portal.

"We are not there for the paper business, we're not there for the audio business, we're actually there for the property portal, and we think there's exciting growth for that," he said.

"NZME to New Zealand, is basically what Fairfax was to Australia 10 years ago, and Fairfax 10 years ago was seen as a dead business," he added.

According to Booker:

What came out of Fairfax 10 years ago was Domain. And within NZME is a division called One Roof, and like Domain in Australia, it's the second biggest property portal in New Zealand.

The New Zealand property market has been slow to shift to digital, and if you apply the same margin that Domain does here with 20%, we think One Roof is going to play out in a big way for NZME.

Currently NZME is trading around NZ$190 million. So, we think this is a great valuation story, we think there's a good growth story, and we think that that the One Roof business has got some huge growth ahead of it.

The NZME share price is down 1% in a year.

The post 3 ASX small-cap stocks tipped for outsized growth in FY 2025 appeared first on The Motley Fool Australia.

Four ASX shares that are falling more than most today are listed below. Here's why they are under pressure on Tuesday:

Lovisa Holdings Ltd (ASX: LOV)

The Lovisa share price is down over 4% to $30.51. This may have been driven by a broker note out of Citi. Its analysts note that the company could be falling short of consensus estimates for store openings in FY 2024. So, with its shares up strongly over the last 12 months, it warns that there could be some disappointment with its results next month. Though, with the broker retaining its neutral rating and $31.65 price target, it isn't in a rush to sell shares.

Mayne Pharma Group Ltd (ASX: MYX)

The Mayne Pharma share price is down 5% to $4.41. This morning, this pharmaceuticals company announced that it has settled its class action. The proceeding relates to alleged misleading or deceptive conduct and breaches of continuous disclosure obligations in respect of alleged anti-competitive conduct in the United States. The agreed settlement amount is $38 million. Approximately $4.7 million will be funded by insurance, with the remainder to be paid from Mayne Pharma's cash reserves.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price is down 3.5% to $2.97. Investors have been selling lithium miners again on Tuesday amid concerns that battery materials prices are going to remain weak for some time to come due to a surplus of supply. Pilbara Minerals' shares hit a multi-year low today and are now down 41% since this time last year. It also remains the most shorted share on the local market despite this decline.

RPMGlobal Holdings Ltd (ASX: RUL)

The RPMGlobal share price is down 14% to $2.39. This has been driven by the release of a trading update from the mining software provider's shares. RPM Global is expecting its total contracted value (TCV) to be $77 million in FY 2024, which represents a 9.2% increase year on year. And while its earnings are expected to grow at an even stronger rate, they won't grow as much as management was forecasting. It said: "The lower than forecasted profitability is due to reduced perpetual license sales and the timing of subscription licenses signed during the second half of FY2024."

The post Why Lovisa, Mayne Pharma, Pilbara Minerals, and RPMGlobal shares are falling today appeared first on The Motley Fool Australia.

In early trade, the mining software solutions provider's shares were down as much as 22% to $2.17.

Its shares have recovered a touch since then but remain down 16% to $2.33.

Why is the RPM Global share price crashing?

Investors have been hitting the sell button today after the company released a trading update.

According to the release, RPM Global sold $50.4 million in software Total Contracted Value (TCV) in the second half of FY 2024. This brings its expected full year TCV to $77 million, which represents a 9.2% increase year on year.

This TCV comprises $75.4 million in subscription licenses (FY 2023: $65.8 million), $1.3 million in perpetual licenses (FY 2023: $2.9 million), and new maintenance of $0.3 million (FY 2023: $1.8 million).

Management notes that the $75.4 million in TCV software subscription sales will deliver annually recurring revenue (ARR) of $9.2 million. As of 1 July, the total value of ARR is $62 million, comprising $50.7 million from subscriptions and $11.3 million from maintenance.

It also highlights that as its software becomes more and more mission critical, mining companies are asking for longer subscription terms to ensure certainty of supply. For example, in the second half of FY 2024, the company sold $18.4 million in software subscriptions with a committed term of eight years and $6.4 million with a committed term of ten years.

Given how the above reads very positively, investors may be wondering why the RPM Global share price is sinking today.

Well, this appears to have been driven by softer than expected profitability during the year.

Softer profits

The release reveals that gross revenue for FY 2024 is expected to finish between $113 million and $114 million. This is up from $98.4 million in FY 2023.

EBITDA (before management incentives) is expected to be in the range of $18.7 million to $19.3 million, which is up from $15 million last year.

And finally, profit before tax (pre management incentives) is forecast to be in the range of $14 million to $14.5 million. This is up 52% to 58% year on year from $9.2 million.

This was lower than forecast, which is weighing on the company's shares today. Management commented:

The lower than forecasted profitability is due to reduced perpetual license sales and the timing of subscription licenses signed during the second half of FY2024.

It is also worth noting that not all of these profits will be retained, with the company intending to reward its employees handsomely. It advised:

Given the growth in TCV, revenue and profitability in FY2024, the Company expects incentives (shared across an increased number of employees) to be in the range of $3.5 million to $3.9 million for the FY2024 year (FY2023: $3.0 million).

Despite today's weakness, the RPM Global share price remains up over 60% since this time last year.

The post Why is the RPM Global share price crashing 22% today? appeared first on The Motley Fool Australia.

Datt Capital chief investment officer Emanuel Datt reckons Australian small caps are even more attractive than their US counterparts.

"The inefficiencies and relative under-coverage of the Australian market create fertile ground for identifying overlooked gems and undervalued assets," he said.

"The Australian market is considerably cheaper than the US market on a relative basis. Valuation differentials between the two markets are quite apparent, with Australian equities trading at more attractive multiples compared to their US counterparts."

Not only are the local stocks cheaper, they have an excellent outlook, he added.

"Australian small caps present opportunities for growth, particularly in emerging industries like technology, healthcare, and renewable energy."

With this in mind, here are three top ASX shares I would be tempted to buy this month from small-cap land:

Top ASX shares to invest in mining without investing in mining

My first two picks have similar customers.

RPMGlobal Holdings Ltd (ASX: RUL) provides technology and related services, while Mader Group Ltd (ASX: MAD) is a maintenance contractor for mining companies.

They are both growth shares but a handy way to gain investment exposure to the cyclical resources industry.

With both western and Chinese economies set to pick up in the coming years after battling inflation and deflation in recent times, commodity prices could be on the way up.

And when minerals are in hot demand, mining businesses will be calling on contractors like RPMGlobal and Mader Group to ramp up their activities.

Both small caps have strong support in the professional investor community.

The team at Forager, in a memo to clients, forecast that RPMGlobal would keep growing its revenue and profits "for a long while yet".

"The company now has a $500 million market capitalisation and trading volumes in its shares have increased markedly over the past month, making it potentially appealing to a wider range of institutional investors."

Broking platform CMC Invest shows Moelis and Veritas Securities also rating RPMGlobal as a strong buy at the moment.

Mader Group shares are recommended as a buy by five out of six analysts.

Small-cap software maker taking on the world

Playside Studios Ltd (ASX: PLY) shares are already going gangbusters.

It has rocketed 52% so far this year, and is close to tripling over the past 12 months.

Incredibly, more than one expert reckons there is more growth to come for the Melbourne video games maker.

The Cyan Fund has been a longtime supporter of Playside Studios.

"All parts of the business are performing well and the company is enjoying strong investor support as it looks to execute its multi-layered growth plan over the next 24 months," the team said in its memo to clients.

The company posted excellent numbers in the February reporting season, more than doubling its revenue and boasting strong cash flow.

All three analysts covering the $377 million company rate the stock as a strong buy, according to CMC Invest.

The post My 3 top small-cap ASX shares to buy in April appeared first on The Motley Fool Australia.

COVID-19 disrupted our lives in many ways that may never be repeated again, and 12 rate rises in 13 months was one of the consequences.

It was 13 hikes in 18 months, if you include the last increase in November.

The Reserve Bank had no choice, as inflation was out of control after the pandemic fattened up people's savings and disrupted supply chains.

But now that part of the cycle seems to be nearing the end, mortgage holders, businesses and stock investors alike are pumped for the next interest rate movement to be downward.

And whenever that happens, I reckon these four ASX growth shares will cash in:

Institutional investors could be jumping onto this ASX growth stock

The fortunes of the mining industry is closely tied to how well the economy is doing. 

That's because the demand for raw materials heads up as consumers spend more, then that pushes up commodity prices and the valuations of miners.

An excellent way to gain exposure to that upside is RPMGlobal Holdings Ltd (ASX: RUL), which provides technology and related services to mining businesses.

The tech stock is the Forager Australian Shares Fund's largest holding, with the team pleased with how reporting season went.

"Revenue was up 21% and earnings before interest and tax more than tripled, thanks to a relatively fixed cost base," it stated in a report to clients.

"We expect revenue to continue growing for a long while yet and profit to keep growing faster."

A bonus up the sleeve is that the small cap is now approaching critical mass.

"The company now has a $500 million market capitalisation and trading volumes in its shares have increased markedly over the past month, making it potentially appealing to a wider range of institutional investors."

The prototypical ASX growth stock

Fintech Block Inc CDI (ASX: SQ2) is very much a stereotype of a stock that is heavily dependent on interest rates for its outlook.

It's a high-growth US tech company, it services the rate-sensitive industry of consumer finance, and it has investments in cryptocurrency, especially Bitcoin (CRYPTO: BTC).

Not only will it enjoy a huge boost when interest rates come down, it will benefit from being a more efficient business after its efforts to cut costs over the past couple of years.

And Jay-Z owns Block Inc shares. How can you go wrong?

Three of five analysts currently surveyed on CMC Invest rate this ASX growth stock as a strong buy.

Another Yankee on the ASX looking good

GQG Partners Inc (ASX: GQG) is an American investment outfit that manages active stock portfolios.

So it's no surprise that these ASX growth shares move up and down roughly corresponding to the fortunes of the general share market.

Therefore, when interest rates are brought down it could be in for a surge push upwards.

ECP is one of many investment houses that are bullish on the outlook for GQG Partners shares.

"GQG's business continues to perform to expectations, with consistent positive monthly net flows from higher fee channels and strong fund performance across all products on a rolling three-year time-frame," ECP analysts said in a recent memo to clients.

"This consistent alpha generation gives us confidence GQG can continue to sustain flows as it moves toward utilising its significant fund capacity."

Incredibly, the GQG share price has rocketed more than 52% over the past six months.

Cheaper than its peers

I mentioned earlier that commodity prices are correlated to the health of the economy.

Even among minerals, this is the most true of iron ore.

It is a basic raw material needed for construction, which is one of the primary industries that rise or sink with consumer demand.

And among iron ore miners, Champion Iron Ltd (ASX: CIA) is looking bullish.

CMC Invest currently shows six out of seven analysts rating the stock as a buy.

"We remain bullish regarding the outlook for iron ore in 2024," said Fairmont Equities managing director Michael Gable a few weeks ago.

"This Canadian based producer is trading on valuations which compare favourably to its peers."

The post 4 ASX growth shares I think will benefit from interest rate cuts in 2024 appeared first on The Motley Fool Australia.

I did that to dispel the misconception that many Australians have that only wealthy people get to make money from stocks.

There are no more brokers chain-smoking in front of the telephone, nor traders yelling at each other on the floor of the stock exchange. 

Investing in shares has become "democratised" with low fees and almost no barriers to entry.

In that spirit, here are two more top Australian shares to grab now for $500 each, to put away in the bottom drawer:

Resources exposure with a technology bent

RPMGlobal Holdings Ltd (ASX: RUL) is a technology and tech services provider for clients in the mining industry.

I like this stock because it provides exposure to the resources sector without the vomit-inducing volatility that can come with directly owning shares for mines.

Even though the share price has already rocketed more than 66% in the past 12 months, the analysts at Elvest certainly think the outlook is still bright.

"RPMGlobal indicated that demand for its software was increasing across multiple geographies, which, alongside flattening research and development spend, should drive strong earnings growth in coming periods."

As well as Elvest, the small cap is a strong buy for the teams at Veritas Securities and Moelis Australia.

I think that there is an excellent chance that, in a few years' time, the RPM share price will be much higher than where it is now.

Top Australian shares for online shopping and AI

It's not controversial these days to say that e-commerce and artificial intelligence are boom areas set for years of growth to come.

Industrial real estate manager Goodman Group (ASX: GMG) has been, and could continue to be, a major beneficiary from those themes.

The business develops and leases out massive warehouse facilities, which fancy e-commerce clients like Amazon.com Inc (NASDAQ: AMZN) call "fulfilment centres".

In addition, Goodman has recently identified real estate suitable to host data centres as a huge money spinner, with cloud computing and AI taking off at the moment.

Considering these tailwinds, I am confident that in 2029 the Goodman share price will be well above where it is trading now.

The post Got $500? 2 top Australian shares to buy and hold appeared first on The Motley Fool Australia.

After all, you don't want to be buying an ASX stock after it has already become expensive. Every cent you overpay eats into your future profit.

So here's my take on three ASX shares that I think still have plenty of room to impress:

Exposure to mining without buying mining stocks

The trouble with mining shares is their cyclicality and volatility.

Commodity prices can fluctuate wildly up and down, so the fortunes of the companies that produce minerals are unpredictable.

However, if you still want to be exposed to that sector, buying shares in a supplier might be a more reliable way to go.

RPMGlobal Holdings Ltd (ASX: RUL) provides technology and solutions to clients in the resources sector.

Over the past five years, even through COVID-19 and the inflation crisis, the RPMGlobal stock price has rocketed 313%.

And with both western and Chinese economies bound to improve in the coming years, I like the chances of this stock rising further.

Analysts at both Moelis Australia and Veritas Securities agree with me by rating RPMGlobal as a strong buy right now, according to CMC Invest.

The ASX shares that are never cheap are cheap right now

Camplify Holdings Ltd (ASX: CHL) might be very much a small cap at the moment, but its addressable market is huge.

The company operates a peer-to-peer platform that allows campervan owners to rent out their vehicles when not in use.

The startup, hailing from Newcastle in NSW, grew its revenue for the first half by a whopping 95.4%.

The market reacted negatively though, which the analysts at Morgans put down to "some seasonality" in a few metrics, such as future bookings and gross margins.

That team, plus Canaccord and Ord Minnett, are not the least bit worried about the future trajectory. All three are maintaining strong buy ratings for Camplify, as shown on CMC Invest.

This could mean that the current dip is a golden buying opportunity.

Bringing in revenue while developing future products

Telix Pharmaceuticals Ltd (ASX: TLX) continues to score goals in the tough industry of biotechnology and pharmaceutical development.

The shares are already up 11.8% so far this year, and 68% if you go back 12 months.

The great ace up its sleeve is that it already has one cancer product, Illucix, on commercial sale. This brings in revenue while it's working on other cancer diagnosis and treatment solutions.

The company recently announced its plan to acquire Canadian business ARTMS inc.

"The acquisition is crucial for the supply of 89Z and the pending rollout of Zircaix for renal cancer imaging," Bell Potter analysts said in a memo.

"Telix is validating multiple production locations for 89Zr in the US using the ARTMS core technology. The company also owns significant quantities of ultra-pure 89Y, being the raw material for production of 89Zr."

The post 3 ASX shares I think are set to soar in 2024 appeared first on The Motley Fool Australia.