As the reporting season concludes, fund managers are actively analysing ASX stocks that have experienced significant price fluctuations, identifying potential bargain buys and long-term growth opportunities. Recent market activity saw considerable movement, with IDP Education, a student placement and language testing business, surging by over 15 per cent. Conversely, online luxury retailer Cettire plummeted nearly 20 per cent. IDP Education specialises in international student placement services and English language testing, helping individuals study or work abroad. Cettire is an online retailer focusing on luxury fashion goods.
Other notable shifts included Adore Beauty, which fell 28 per cent following its results, and ARB Corporation, Guzman y Gomez, and Inghams, each dropping around 13 per cent. Payments group Zip experienced a sharp decline of nearly 40 per cent. Earlier in the month, CSL saw a 5 per cent drop after announcing CEO Paul McKenzie’s departure, followed by an additional 11 per cent decrease after its earnings call. Cochlear experienced its largest single-day move, falling 19 per cent, while Pro Medicus declined nearly 25 per cent after missing expectations.
Dion Hershan of Yarra Capital noted the changing market dynamics, attributing increased volatility to passive funds, global pod shops, hedge funds, and algorithmic trading firms. He emphasised that short-term thinking now prevails, leading to significant price swings based on earnings results. Despite the perceived volatility, Hershan sees opportunities for investors with a long-term perspective, highlighting Ramsay Health Care, Mirvac, Qantas, QBE, and a2 Milk as attractive picks. Ausbil’s David Lloyd echoed this sentiment, favouring HUB24 and Pilbara Minerals.
