Doug Goodwille from Kayne Anderson speaks to Drew Meredith from The Inside Network on market thinkers.
While a surging gold price is on hold as the world adjusts to a Trump presidency, all the factors that saw its price rise more than 50 per during his first term in office – trade disputes, fiscal deficits and geopolitical tensions – are almost certainly guaranteed the second time around.
22 shares to watch in 2022
In the fifth and final part of 22 ASX shares for 2022, we’ll be taking a look at four companies with big growth prospects.
If you haven’t already, check out the release of Part 1, Part 2, Part 3 and Part 4.
1. Uniti Group Ltd (ASX: UWL)
In a market that is rewarding cash-generating businesses with long growth runways, look no further than Uniti.
The business provides the internet infrastructure for new developments such as apartment complexes and greenfield housing.
Uniti Group (ASX:UWL) is more than just a telco – here’s why
Uniti’s order book shows a steady growth of 20 per cent a year for the next five years, which should support its profit and share price moving forward.
Recently, management noted that the growth rate is tracking at or above current market expectations.
This could lead to a meaningful uplift in the company’s valuation when it announces its half-year results in February.
2. Alliance Aviation Services Ltd (ASX: AQZ)
Airlines are typically a no-fly zone for investors. However, Alliance is the exception.
Watchlist Wednesday: Alliance Aviation Services Ltd (ASX:AQZ)
The business undertakes contract flights for business clients such as BHP and Santos, in addition to wet-lease flights (where the lessor provides not only the aircraft to the client, but the crew) for the likes of Qantas.
Unlike traditional airlines, Alliance seldom takes on the risk of fuel costs or passenger numbers.
Alliance recently bought 32 additional aircraft, which will increase flight hours three-fold over the next 18 months.
Subsequently, revenue and profit should follow, leading to a meaningful uplift in its valuation.
3. Temple & Webster Group Ltd (ASX: TPW)
Online furniture retailer Temple & Webster last reported 56% year-on-year growth in its sales for FY22.
This is on top of the 85% it recorded in FY21.
If it keeps the same pace for the remainder of FY22, the business will have almost tripled sales over two years.
Admittedly, growth will likely decelerate over the near term as shoppers return to physical stores.
Watchlist Wednesday: Temple & Webster Group (ASX:TPW)
But overall this is a long-term growth story with strong structural tailwinds.
4. Fortescue Metals Group Limited (ASX: FMG)
Fortescue Metals is revered for its iron one operations.
But recently the market, rightly or wrongly, is rewarding the company’s potential green ambitions, much as it has done with Novonix Ltd (ASX: NVX) and Vulcan Energy Resources Ltd (ASX: VUL).
As a result, the Fortescue share price has rallied 43% over the past three months.
If you believe the business can execute on its green ambitions, Fortescue will be an ASX 20 company with a cash-cow in mining and a future growth engine in renewable energy.
Information warning: The information in this article was published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.
