As reporting season concludes, fund managers are analysing ASX stocks that experienced significant price volatility, seeking both bargain buys and long-term growth prospects. Student placement and language testing business IDP Education surged over 15 per cent, while online luxury retailer Cettire declined nearly 20 per cent on Thursday. Other notable movements included cosmetics player Adore Beauty plummeting 28 per cent, and car accessories maker ARB Corporation, Guzman y Gomez, Inghams, and Zip all experiencing significant drops. Earlier in the month, CSL also saw declines following CEO news and its earnings call.
Yarra Capital’s head of Australian equities, Dion Hershan, suggests the market has fundamentally changed due to passive funds, global pod shops, hedge funds, and algorithmic trading firms, fostering a more frenzied environment focused on short-term results. Hershan believes this environment creates opportunities for those taking a long-term perspective.
Hershan highlighted Ramsay Health Care as a top pick, noting the company’s positive performance after exceeding expectations. Ramsay Health Care is a private hospital operator. He also favours property developer Mirvac, anticipating a housing recovery. Pendal’s Crispin Murray sees potential in Qantas, citing its cash flow generation. Murray also likes insurer QBE. David Lloyd from Ausbil is bullish on a2 Milk, an infant formula and dairy business, which defied falling birth rates in China. Lloyd also likes wealth platform HUB24 and lithium producer PLS.
