2 ASX shares that this leading fund manager thinks are buys

The 2 ASX shares in this leading fund manager's portfolio look like buys according to value-focused WAM Active Limited (ASX:WAA).

| More on:
steps to picking asx shares represented by four growing piles of gold coins

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

WAM Active Limited (ASX: WAA) is one of the listed investment companies (LICs) in the Wilson Asset Management (WAM) stable that targets ASX shares.

It runs a number of different LICs that target different investments. There's the largest – WAM Capital Limited (ASX: WAM) – which targets undervalued ASX shares. Then there's WAM Leaders Ltd (ASX: WLE) which looks to buy undervalued ASX blue chips.

Since inception in January 2008, WAM Active's portfolio has delivered a gross return of 12.1% per annum before fees, expenses and taxes.

Its hunting ground target is market mispricing opportunities on the Australian stock exchange.

In its latest monthly update, WAM Active outlined these two ASX shares as opportunities:

Reliance Worldwide Corporation Ltd (ASX: RWC)

WAM explained that the Reliance Worldwide designs, manufactures and supplies water flow and control solutions and products for the plumbing industry, with a focus on repair and renovation.

The company operates in the Asia Pacific region, the Americas, Europe, the Middle East and Africa.

WAM Active pointed out that in the FY21 half-year result, the ASX share generated a 13% rise in net sales to $642.4 million. The company also reported a $168.7 million reduction in net debt to $226 million.

Operating cashflow went up by 17% to $155.6 million and adjusted net profit after tax increased by 56% to $99.3 million. It grew the interim dividend by 33% to 6 cents per share.

The fund manager acknowledged that the business faced headwinds over the past few years, but it sees a positive outlook in the home renovation and repair markets which can drive the company in its key markets in the US and the UK.

Airtasker Ltd (ASX: ART)

Airtasker is an ASX share that recently listed on the ASX. It's now the leading online marketplace for local services with more than 4.3 million users.

How does it work? That online marketplace connects customers who require a particular task to be completed with people willing to complete a task for money. Around 950,000 customers have purchased a service on the e-commerce platform since inception in December 2020.

The ASX share reported that its 'unique paying customers' have grown from around 18,000 in FY15 to approximately 367,000 in FY20. Over that same time period, the average task value went from $97 to $159.

Airtasker managed to raise $83.7 million from investors during its initial public offering (IPO) process at a share price of $0.65. Since then, the Airtasker share price has more than doubled to $1.36 per share. That's a strong debut for the ASX share.

Should you invest $1,000 in Airtasker Limited right now?

Before you buy Airtasker Limited shares, consider this:

Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now... and Airtasker Limited wasn't one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

And right now, Scott thinks there are 5 stocks that may be better buys...

See The 5 Stocks *Returns as of 30 April 2025

Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Reliance Worldwide Limited. The Motley Fool Australia has recommended Reliance Worldwide Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Growth Shares

Smiling couple looking at a phone at a bargain opportunity.
Growth Shares

Looking for ASX growth shares? I rate these 2 as buys in May

These ASX investments have an exciting future. Here’s why.

Read more »

A young man punches the air in delight as he reacts to great news on his mobile phone.
Growth Shares

The best ASX growth stocks for smart investors to buy with $5,000

Analysts are bullish on these shares. Let's find out why.

Read more »

Happy young couple saving money in piggy bank.
Growth Shares

Where to invest $2,500 into ASX 200 shares today

Analysts think these shares could be top buys for investors with money to invest.

Read more »

Two people having a meeting using a laptop and tablet to discuss Seven West Media's balance sheet
Growth Shares

3 excellent ASX shares to buy for your SMSF

Analysts think these shares could be top picks for SMSF investors. Let's find out why.

Read more »

A woman presenting company news to investors looks back at the camera and smiles.
Growth Shares

2 ASX growth shares to supercharge your portfolio

Analysts think these shares could be in the buy zone for growth investors right now.

Read more »

A group of people gathered around a laptop computer with various expressions of interest, concern and surprise on their faces. All are wearing glasses.
Growth Shares

Turn $300 into significant wealth: 3 explosive ASX opportunities for Aussie investors

Analysts think these shares could be great picks for growth focused investors.

Read more »

A man looking at his laptop and thinking.
Growth Shares

What I'd buy with $2,000 on the ASX right now

Here are three options for investors to look at this month.

Read more »

Silhouette of CEO standing in conference room looking out at cityscape.
Growth Shares

3 founder-led ASX 200 shares with serious long-term upside

Let's see what makes these shares top picks according to analysts.

Read more »