Catch these fast-rising 2 ASX shares before it's too late: Celeste

This pair of stocks rocketed up in February during reporting season, but are still great value for those willing to hop on.

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With much uncertainty hanging over both consumers and businesses, stock picking at the moment is a fraught activity.

However, there could be a pretty straightforward method to spot ASX shares worthy of buying.

Some stocks took off during last month's reporting season. And it's not an outrageous argument to hop on to these stocks that have both business and share price momentum.

The analysts at Celeste Funds Management this week named two such ASX shares this week that still have appealing prospects for further returns.

Executing well and plenty of future opportunities lined up

Shares for automotive industry software maker Infomedia Limited (ASX: IFM) went absolutely gangbusters in February.

"Infomedia rose 26.7% over the month, with the 1H23 result pointing to sales re-acceleration, good progress on cost control and a healthy sales pipeline," stated a Celeste memo to clients.

"Infomedia delivered sales growth across all regions (HoH) and made solid progress in reshaping the cost base."

The Infomedia share price has now gained more than 7% over the past year, all while paying out a dividend of 3.5%. Not bad for a period when most technology stocks suffered.

Created with Highcharts 11.4.3Infomedia PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

There is plenty of potential to be tapped in the near future, too.

"The company disclosed $15 million of potential annual recurring revenue opportunities, and while they still have to be won, it highlighted a refocus on client engagement by the new management team," read the Celeste memo.

"The balance sheet is net cash and Infomedia should see ongoing improved performance."

Much of the rest of the professional investment community agrees with the Celeste team. According to CMC Markets, six out of seven analysts currently rate Infomedia as a buy with five of those recommending it as a strong buy.

'Appealing exposure to a defensive industry'

While Australian Clinical Labs Ltd (ASX: ACL) shares have struggled over the past year, losing 22.5%, the stock enjoyed a massive renaissance during reporting season.

"Australian Clinical Labs rallied 16.5% during the month following a 1H23 result that beat market expectations," read the Celeste memo.

"Although COVID revenue was down (PCR testing volumes), the core business revenue grew 18%."

Created with Highcharts 11.4.3Australian Clinical Labs PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

The Celeste analysts were impressed with the pathology service provider's cost control, as it "maintained an operating profit margin of 11%, in line with previous guidance". 

The current half is already looking great, and Celeste analysts reckon the shares are still inexpensive to buy in.

"Looking ahead, 2H23 has started strongly with Jan 23 LFL revenue growth of 22%," read the memo.

"ACL is an appealing exposure to a defensive industry and remains cheap versus listed peers."

Australian Clinical Labs is also popular with other fund managers, with four out of five analysts currently surveyed on CMC Markets rating it as a strong buy.

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 Infomedia. The Motley Fool Australia has recommended Infomedia. 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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