In a recent analysis, Wilson Asset Management (WAM), a prominent fund manager, identified two S&P/ASX 200 Index (ASX: XJO) shares that exhibit significant growth potential. These stocks, highlighted as part of WAM Capital Ltd’s portfolio, are considered exciting opportunities due to their strong business foundations and promising growth trajectories.
WAM Capital Ltd, one of the largest listed investment companies (LICs) on the ASX, focuses on uncovering undervalued growth opportunities within the Australian market. The company’s strategic approach involves a thorough examination of the ASX share market to identify lucrative investments.
ALS Ltd: A Leader in Testing and Certification
ALS Ltd (ASX: ALQ) was one of the stocks spotlighted by WAM. Known globally for its expertise in testing, inspection, certification, and verification services, particularly in the commodities and life sciences sectors, ALS has shown robust performance.
During a recent investor day, ALS delivered a strong FY26 first-quarter update, reaffirming its guidance for organic revenue growth between 5% to 7% and profit margin expansion. WAM emphasized the company’s strategic focus on higher-growth markets and its competitive advantage in core segments where it holds a dominant market share.
“Strengthening commodity markets and increased miner financing activity are key tailwinds,” noted WAM. The fund manager also highlighted digitization and artificial intelligence (AI) as medium-term drivers for enhancing profit margins.
WAM expressed optimism about ALS’s future, stating, “ALS is well-positioned to leverage a strong balance sheet and execute earnings-accretive acquisitions. We see potential upside to consensus earnings, with valuation appearing undemanding at this stage of the cycle.”
Hub24 Ltd: A Rising Star in Wealth Technology
Hub24 Ltd (ASX: HUB) was the second stock identified by WAM. The company operates a financial services and wealth technology platform that integrates investment, superannuation, and adviser portals. In July, Hub24’s share price surged by 20%, reflecting investor confidence in its growth prospects.
According to WAM, this increase was driven by strong financial performance and strategic developments. In its FY25 fourth-quarter market update, Hub24 reported record annual platform net inflows of $19.8 billion, marking a 25% year-over-year increase. Notably, the fourth quarter alone saw net inflows of $5.3 billion, including $1.2 billion from EQT Holdings Ltd (ASX: EQT).
The inflows from EQT represent the final tranche of funds migrated as part of a strategic partnership between the two companies. Excluding these migrations, net inflows for the quarter were a record $4.1 billion, up 33% year-over-year.
Additionally, Hub24’s total funds under administration (FUA) reached $136.4 billion as of June 30, 2025, a 30% increase from the previous year. This growth underscores the company’s strong market position and its ability to attract substantial investor interest.
Implications for Investors
The identification of ALS Ltd and Hub24 Ltd by WAM highlights the potential for substantial returns within the ASX 200. Both companies exhibit strong business models and strategic growth initiatives, making them attractive options for investors seeking exposure to high-growth sectors.
As the global economic landscape continues to evolve, the emphasis on technology and strategic partnerships will likely play a crucial role in shaping the future of these companies. Investors should consider these factors when evaluating potential investments in the ASX market.
Looking ahead, the performance of ALS and Hub24 will be closely watched by market analysts and investors alike. Their ability to capitalize on emerging trends and maintain competitive advantages will be key determinants of their long-term success.
