Rudi’s View: Cochlear, Guzman y Gomez, SiteMinder, Wesfarmers & Xero

Rudi's View | Jan 30 2025

By Rudi Filapek-Vandyck, Editor

Morningstar's selection of Best Buys on the ASX (with no changes from the prior update in December):

Morningstar has a typical value oriented methodology, which does not apply well for Growth and Technology stocks, plus, on my personal observation, a very outdated view on what makes a moat.

As undervalued stocks can be quite often cheap for very good reasons (like: no earnings growth) selected companies can remain on Morningstars list for a long while; in some cases literally multiple years.

The two exceptions from what you just read are Brambles and SiteMinder.

-APA Group ((APA))

-ASX ((ASX))

-Aurizon Holdings ((AZJ))

-Bapcor ((BAP))

-Brambles ((BXB))

-Domino's Pizza ((DMP))

-Dexus ((DXS))

-Endeavour Group ((EDV))

-Fineos Corp ((FCL))

-IDP Education ((IEL))

-IGO Ltd ((IGO))

-Ramsay Health Care ((RHC))

-SiteMinder ((SDR))

-Santos ((STO))

-TPG Telecom ((TPG))

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Healthcare sector analysts at RBC Capital have used their preview to the February results season to express their preferences:

-Cochlear ((COH))
-Integral Diagnostics ((IDX))
-Australian Clinical Labs ((ACL))
-Ansell ((ANN))
-Regis Healthcare ((REG))
-Monash IVF ((MVF))

Ironically, Australian Clinical Labs has been identified as at risk for delivering a negative surprise next month, alongside Sonic Healthcare ((SHL)) and Healius ((HLS)).