Share tips: investment ideas beyond the ASX’s big guns

Share portfolios shouldn’t simply focus on big banks and resources giants. Our experts examine some smaller stocks.

Smaller stocks are often more volatile than large-cap companies. Picture: iStock

BHP, big banks and tech stocks attract plenty of interest from stockbrokers, analysts and investors as their share price performance drives the direction of the Aussie stock market, but lesser lights can deliver the biggest gains.

Today our share tips columnists focus most of their buy, hold and sell recommendations on stocks outside the ASX top 20

Among the sectors mentioned are pharmaceuticals, uranium, insurance and even home appliances. Here are their tips.

David Thang, Sequoia Wealth senior private wealth adviser:

BUY

Telix Pharmaceuticals (TLX)

The radiopharmaceuticals company has a promising emerging pipeline of products. The company recently transitioned from loss-making to profit, and drug approvals will be a key driver for its continued long-term success.

Mineral Resources (MIN)

The unloved iron ore and lithium sector has seen the share price more than halve since May. Mineral Resources screens as attractive on valuation grounds, and the successful de-leveraging of the balance sheet is crucial moving forward.

HOLD

Woodside Energy (WDS)

Weakness in the share price offers value to the patient. A strong balance sheet, coupled with a sustainable dividend yield, are a bonus.

Adore Beauty (ABY)

Management expects margin improvement in the medium-term. Lower interest rates should result in a recovery of consumer demand.

SELL

29Metals (29M)

The base metals company reported a loss that was larger than market expectations. We prefer others.

3P Learning (3PL)

Its annual earnings missed the mark, and the company does not expect revenue growth next year. Other companies appeal more.

Mark Goulopoulos, Cumulus Wealth partner, wealth management:

BUY

Maas Group Holdings (MGH)

This is a leading Australian construction materials and services firm with strong east coast presence, and it is expanding further into Victoria.

NexGen Energy (NXG)

The company holds one of the world’s largest undeveloped uranium deposits, and the current valuation does not reflect long-term uranium prices.

David Thang from Sequoia Wealth

Mark Goulopoulos from Cumulus Wealth

HOLD

Breville Group (BRG)

The home appliance manufacturing company is showing growth in Asian markets and it is managing costs amid inflation. New product releases expected to boost sales.

Johns Lyng Group (JLG)

Its 2024-25 financial year outlook is disappointing due to reduced disaster recovery work, but the insurance and building service’s company’s core business earnings are projected to grow approximately 15 per cent..

SELL

Fletcher Building (FBU)

The company faces high debt and a challenging New Zealand market, and also a $155 million impairment for leak repairs in 12,000 Western Australian homes.

Airtasker (ART)

A struggling niche marketplace, its recent media-for-equity deals mask underlying financial performance through deferred expense recognition.

Originally published as Share tips: investment ideas beyond the ASX’s big guns