Buy Hold Sell: 5 stocks with fantastic fundamentals
In conducting the analysis, the share price of a stock is ignored and the focus is on companies with strong balance sheets, profitability, low debt levels, and sustainable dividends.
More specifically, a "Top Stock" must be:
- Publicly listed since 2017
- A constituent of the All Ordinaries Index (i.e. Top 500 company by market capitalisation)
- Boast a Return on Equity (ROE) ratio of at least 10% in the most recent financial year
- Have a Debt-to-Equity (D/E) ratio of less than 70%
We’ve used similar criteria, with help from the Market Index website, to identify fundamentally sound small caps.
So, which stocks make the cut? And are they all worth buying right now?
To answer those questions, Ben Rundle from Hayborough Investment Partners and Will Granger, from Airlie Funds Management joined Livewire's Chris Conway.
And just because we know you love a stock pick, they also highlight their top stock with fantastic fundamentals.
Note: This episode was recorded Wednesday 26 July 2023. You can watch the show, listen to the podcast, or read an edited transcript below.
Edited Transcript
First off, we're talking about PWR Holdings. This one is one for the rev heads out there, myself included. They make advanced cooling systems for race cars and high-performance road cars like Porsche and Aston Martin. Ben, we'll start with you. Is it a buy, hold, or sell?
PWR Holdings (ASX: PWH)
Chris Conway: Will, the share price is down around 20% year to date. For you, is it a buy, hold, or sell?
Baby Bunting (ASX: BBN)
Chris Conway: Next up, we're talking Baby Bunting. Of course, they sell everything that young parents could need - and boy do they know how to charge. Will, we'll stay with you. Is it a buy, hold or sell?
Chris Conway: Talking about the sell-off, it's down 45% year to date. Ben, are you seeing value at these levels? Is it a buy, hold or sell?
Beacon Lighting (ASX: BLX)
Chris Conway: Next, we're running the ruler over Beacon Lighting. I recently did a home renovation, so I know these guys pretty well. Ben, we'll stay with you. Is this a buy, hold or sell for you?
Chris Conway: Will, this is another one that's been hit pretty hard this year, so far it's down 20%. Is it a buy, hold or sell for you?
Chris Conway: We've asked the gents to bring along a stock that they think is fundamentally sound and give us the thesis. WilL, we'll stay with you. What have you got for us today?
News Corporation (ASX: NWS)
Chris Conway: Ben, what about you? A stock that's fundamentally sound that you like at the moment?
EVT Limited (ASX: EVT)
Chris Conway: If you enjoyed that episode of Buy Hold Sell as much as I did, make sure to give it a like and don't forget to follow our YouTube channel because we're adding lots of great content every single week.
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2 topics
5 stocks mentioned
3 contributors mentioned