9 ASX stocks the pros have been eyeing amid the market pullback

The recent market pullback has sparked debate among investors — is it a golden buying opportunity or a time for caution? I asked three popular Livewire contributors to get their perspectives on market conditions, their portfolio strategies, and to share their top stock picks at this time.

Rudi Filapek-Vandyck, FNArena

Filapek-Vandyck takes a cautious stance, noting that while markets have corrected, the economic environment is shifting. Uncertainty around U.S. policy, tariffs, and consumer sentiment means that not all declining stocks represent value.

“Everything that has come down is not necessarily ‘great value’. In other words, they might come down further....a diversified portfolio with a mix of growth, value, and defensive holdings is key to managing risk in volatile markets.”

Personally, he has increased cash holdings and defensive allocations, ensuring a cautious approach while remaining open to opportunities as they arise. With all this in mind, his stock picks are as follows.

Stock Picks:

#1 - TechnologyOne (ASX: TNE)

"A high-quality tech stock that has pulled back but remains well-positioned for growth".

TechnologyOne posted strong results, marking its 15th year of record growth. Profit rose 18%, and recurring revenue grew 20%, driven by its SaaS+ platform and UK expansion. As Australia's top ERP SaaS provider, it continues to strengthen its market position.

#2 - Xero (ASX: XRO)

"A cloud accountancy software leader benefiting from digital adoption".

#3 - Goodman Group (ASX: GMG)

"A trusted outperformer in 2024"

Goodman Group is a global integrated property group specialising in industrial real estate, including logistics, warehouses, and business parks. It develops, owns, and manages properties, focusing on high-demand sectors like e-commerce and data centres. Goodman operates in key markets across Australia, Asia, Europe, and the Americas.

Jun Bei Liu, Ten Cap

According to Liu, market pullbacks are a natural part of investing, and while volatility can be uncomfortable, it often presents opportunities. 

"We see a clear distinction - some companies are probably facing genuine earnings uncertainties due to factors like a slowing U.S. consumer and unpredictable tariffs, while others are trading at attractive valuations despite unchanged fundamentals" says Liu. 

"Right now, we see select opportunities emerging, particularly in companies with strong cash flows and structural tailwinds". 

Rather than retreating to cash or overpaying for defensive stocks, Liu maintains a balanced portfolio with a disciplined, risk-managed approach. She believes in staying opportunistic while ensuring investments are backed by strong fundamentals. This means focusing on companies with robust cash flows and structural growth drivers that can withstand market fluctuations.

Stock Picks:

#1 - Pro Medicus (ASX: PME): 

"A fast-growing business with a large global addressable market".

It should come as no surprise that at the top of Jun Bei Liu’s list is PME, a stock that has long been labelled "too expensive" yet continues to defy sceptics. When she spoke to us during reporting season, Liu emphasised the long-term value still embedded in the business, particularly over a five-year horizon: “The addressable market is enormous, and Pro Medicus is still in the early stages of tapping into it.”

Despite a recent ~20% drop from its high, Liu is still bullish, believing the investment thesis remains intact.

#2 - Goodman Group (ASX: GMG): 

"One of the best industrial property trusts in the world, now offers fast track data centre exposure"

Interestingly, both Jun Bei Liu and Rudi Filapek-Vandyck highlighted Goodman Group as an attractive buy at current levels, reinforcing its appeal as a high-quality investment they believe is trading at a discount.

Liu recently spoke with Livewire's James Marlay on the Rules of Investing podcast, saying that Goodman has been a core holding for Ten Cap, and that the data centre opportunity adds another angle to what is already a high-quality company in the property sector. Liu believes Goodman has a strong existing client base to which it can sell data centre capacity and is a defensive way to access this structural growth opportunity.

#3 - Light and Wonder (ASX: LNW): 

"A key player in digital and land-based gaming solutions"

Light & Wonder, Inc. is a global gaming company specialising in casino, digital, and lottery solutions. Formerly Scientific Games, it rebranded in 2022. Headquartered in Las Vegas, it develops slot machines, iGaming, and mobile gaming content, serving casinos and online platforms worldwide.

Romano Sala Tenna, Katana Asset Management

Sala Tenna sees the pullback as a necessary cooling-off period within a long-term bull market. While momentum stocks have led the previous rally, he believes many overlooked stocks now present compelling value.

“This correction is important to take the heat out of some overvalued companies and refocus investor attention on deeply discounted opportunities.”

Sala Tenna remains overweight in gold, seeing it as the only sector still trending on the ASX. He has also increased exposure to materials in anticipation of a sector-wide recovery. Additionally, he is strategically rotating into laggards, capitalising on opportunities as investors move away from previous market leaders.

Stock Picks:

#1 - IPH Limited (ASX: IPH): 

"A dominant intellectual property firm with a strong market presence in Australia, Canada, NZ, and Singapore".

According to Sala Tenna, IPH offers a high yield (8%) and aggressive buyback. He goes on to add: “Yes, IPH is losing (small amounts of) market share in Australia, but investors are losing sight of the deep, inherent value in these brands, most of which have been operating for many decades and would take many years to replicate.”

#2 - Dicker Data (ASX: DDR):

"Despite recent price swings, the company has a strong growth outlook for 2025".

Dicker Data Limited is an Australian-owned technology distributor specialising in hardware, software, and cloud solutions. Established in 1978, it serves over 12,300 resellers across Australia and New Zealand. The company achieved a 2.9% increase in gross revenue for FY24, totalling $3.37 billion. Earnings before tax remained stable at $150.4 million, while net profit before tax declined by 2.8% to $113.2 million.

#3 - West African Resources (ASX: WAF)

"A gold stock with strong free cash flow and a management team bringing its new Kiaka mine online soon, doubling production".

West African Resources is a mid-tier gold producer operating in West Africa. In the 2024 financial year, the company reported a net profit after tax (NPAT) of $246 million, up from $147 million in the previous year. Revenue increased by 10.4%, to $730 million. The company is on track to produce 4 million ounces over the next decade, with annual production peaking at 473,000 ounces in 2029.

Three approaches, one common theme

Despite differing strategies, all three experts emphasise selectivity, risk management, and balancing portfolios in this uncertain environment. While some see immediate opportunities in quality growth stocks, others advocate caution and diversification. 

The key takeaway? Investors should stay disciplined, focus on strong fundamentals, and prepare for potential volatility ahead.

Over to you

Have you been trawling the ASX bargain bin amid the recent selloff? If so, which stocks look appealing to you?

Let us know in the comments section below.