Two stocks from the S&P/ASX 200 Index (ASX: XJO) are capturing attention for their promising growth prospects. Wilson Asset Management (WAM), a prominent fund manager, has identified ALS Ltd (ASX: ALQ) and Hub24 Ltd (ASX: HUB) as exciting opportunities within the Australian market. The announcement comes as investors seek resilient and growth-oriented businesses amid fluctuating economic conditions.
WAM Capital Ltd (ASX: WAM), one of the largest listed investment companies (LICs) on the ASX, is known for its strategic focus on uncovering undervalued growth opportunities. The fund manager’s recent analysis highlights ALS and Hub24 as standout performers, each with unique strengths and growth drivers.
ALS Ltd: A Leader in Testing and Verification
ALS Ltd has been recognized by WAM for its leadership in testing, inspection, certification, and verification services across the commodities and life sciences sectors. At a recent investor day, ALS delivered a robust first-quarter update for FY26, reaffirming its guidance of 5% to 7% organic revenue growth and profit margin expansion.
According to WAM, ALS is benefitting from strengthening commodity markets and increased miner financing activity, which are considered “key tailwinds” for the company. The fund manager emphasized ALS’s strategic focus on higher-growth markets, alongside its competitive edge in core segments where it holds a dominant market share.
“ALS is well positioned to leverage a strong balance sheet and execute earnings-accretive acquisitions. We remain constructive on the outlook and see potential upside to consensus earnings, with valuation appearing undemanding at this stage of the cycle.”
Additionally, ALS’s investment in digitization and artificial intelligence (AI) is expected to drive profit margin improvements over the medium term, further enhancing its growth trajectory.
Hub24 Ltd: A Rising Star in Wealth Technology
Hub24 Ltd, operating a financial services and wealth technology platform, has also caught WAM’s attention. The company’s share price surged by 20% in July, driven by strong financial performance and strategic developments that reflect investor confidence in its growth potential.
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. The growth was propelled by net inflows of $5.3 billion in the fourth quarter, including $1.2 billion from EQT Holdings Ltd (ASX: EQT), part of a strategic partnership between the two companies.
Excluding EQT migrations, net inflows for the quarter reached a record $4.1 billion, up 33% year-over-year. The company’s total funds under administration (FUA) hit $136.4 billion as of 30 June 2025, a 30% increase from the previous year.
Implications for Investors
The identification of ALS and Hub24 by Wilson Asset Management underscores the potential for growth within the ASX 200, particularly in sectors poised for technological advancement and market expansion. Investors looking for opportunities in the Australian market may find these companies’ strategic initiatives and financial performance appealing.
As ALS continues to capitalize on its market leadership and technological investments, and Hub24 leverages its strategic partnerships and platform growth, both companies are well-positioned to deliver shareholder value. The move represents a broader trend of investors seeking resilient businesses capable of navigating economic uncertainties while maintaining strong growth trajectories.
Looking ahead, the performance of ALS and Hub24 will be closely watched by market analysts and investors alike, as they continue to execute their growth strategies and adapt to evolving market dynamics. The potential for further upside in their valuations could make them attractive additions to diversified investment portfolios.
