“Our research team highlighted that the declining correlation in the ASX 200 suggests a shift from macro-driven to a stock-picking or fundamentally driven market,” Raymond said.
“Stocks like Sonic Healthcare (SHL), which rose sharply after its AGM this week, exemplify how out-of-favour stocks can react positively with improving earnings momentum.
“SHL, a global leader in medical diagnostics, has seen growth through consolidation and scaling during the COVID-19 pandemic.
“Despite initial post-pandemic adjustments, SHL has forecasted over 5% organic revenue growth and over 10% EBITDA growth, aligning with consensus expectations.
“The company anticipates margin expansion from FY25-27, supported by growth in Germany, Switzerland, and new contracts in the UK.
“We continue to maintain ADD in SHL,” Raymond said.
Sonic Healthcare (SHL)
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