Experts name 2 ASX All Ords shares to buy after their excellent results

Here's a pair of stocks you don't hear much about, but have plenty of upside after boom February updates.

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With a turbulent world as background, the performance and outlook of ASX companies has never been under more scrutiny than this current reporting season.

Two particular businesses that revealed their cards this week showed such promise in its reporting that some experts reckon they're ripe to buy right now:

Cashing in from 'click and collect'

HomeCo Daily Needs REIT (ASX: HDN) is not a household name among investors by any means, but it does have a $2.6 billion market capitalisation.

The trust is named "daily needs" because it owns commercial real estate to rent out to tenants like large-format retailers, convenience stores and gyms.

Morgans co-head of research Fiona Buchanan was pleased with how it reconfirmed its previous 2023 financial year guidance.

"HomeCo Daily Needs' portfolio remains well positioned with resilient cash flows and continues to be a beneficiary of accelerating click & collect trends," Buchanan said on the Morgans blog.

"+80% of tenants are national and 73% of tenants offer click & collect, reinforcing the importance of assets being able to support 'last mile logistics'."

She noted how the assets are in "strategic locations with strong population growth".

The HomeCo Daily Needs share price has dipped 8.6% over the past 12 months, but like most real estate trusts it pays out a handsome income.

"HomeCo Daily offers investors an attractive yield of +6% underpinned by contracted rental income and has a large development pipeline."

Buchanan's team thus has an add rating on the stock.

Created with Highcharts 11.4.3HomeCo Daily Needs REIT PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

Post-pandemic recovery going gangbusters

Helloworld Travel Ltd (ASX: HLO) was a basket case for investors for many years, but it seems to have cleaned up its act.

The travel agency sold off its corporate business last year, and the latest results were the first half-year to report since that transaction.

Morgans senior analyst Belinda Moore liked how its post-pandemic recovery is taking place faster than anticipated.

"Helloworld's 1H23 result beat our forecast," Moore said on the Morgans blog.

"The strength of its EBITDA margin was the key highlight and is already above pre-COVID levels."

She noted how profitability is improving quarter-on-quarter, showing how "travel demand continues to recover in ANZ despite the current macroeconomic uncertainty".

And there is further upside to come.

"Helloworld expects that bookings volumes will continue to increase as airfares normalise in line with the return of airline capacity, tour operators continue to onboard staff to meet demand and confidence levels amongst the travelling public return to pre-COVID levels."

Created with Highcharts 11.4.3Helloworld Travel PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

The inbound and wholesale business units have also recovered back to pre-pandemic levels.  

"Helloworld sees further opportunities for these businesses with the China market reopening and expects strong growth into the foreseeable future."

The Morgans team has an add rating for the travel agency, although Moore reminded investors to be patient with this one.

"With a strong balance sheet, Helloworld is well placed to capitalise on the pent-up demand for leisure travel and acquisition opportunities," she said.

"Helloworld is materially undervalued trading on a recovery year (FY25) EV/EBITDA multiple of only 3.1x."

The Helloworld share price is down 1.7% over the past 12 months, and is half of what it was five years ago.

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended Helloworld Travel. The Motley Fool Australia has positions in and has recommended Helloworld Travel. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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