'Further upside': 2 All Ords stocks with more growth coming after awesome results

Don't forget that the share market is forward looking when hunting for potential investments.

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It's all good and well to celebrate after excellent annual results, but that's not actually what's going to drive stock price gains.

The reality is that the share market is forward looking. So it matters far more what the business has coming up, than what it has already done.

Keeping this in mind, here are two All Ordinaries Index (ASX: XAO) stocks that LSN analysts have sniffed out from reporting season that have outstanding future prospects:

Sum-of-parts still far greater than stock price

For a retail business, Premier Investments Limited (ASX: PMV) stood up reasonably well in the face of consumers dealing with cost-of-living pressures.

But it and high profile chair Solomon Lew are not resting on their laurels.

"Premier Investments provided an earnings update for FY23 (July year end) that was well ahead of expectations, but also announced a formal strategic review that would explore a range of options across its corporate, operating and capital structure," LSN analysts said in a memo to clients.

Created with Highcharts 11.4.3Premier Investments PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.com.au

Even though the Premier share price has exploded more than 32% higher since its July trough, the LSN team reckons the business is undervalued.

"With the sum-of-the-parts valuation for Premier materially above current share price, we see the strategic review as a significant step towards unlocking latent value."

The extra sweetener is that the All Ords stock is also paying out a 5.72% dividend yield.

Can't do much more than growing profits

Infrastructure services outfit Duratec Ltd (ASX: DUR) has gone gangbusters for the LSN team in recent times.

Over the past 12 months the stock price has gained an unbelievable 250%.

The business continued its upward trajectory during the August reporting season.

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

"Duratec continues to grow profits delivering strong outcomes for investors. Duratec reported revenue and EBITDA at the top end of its FY23 guidance range and the outlook for FY24 remains attractive across its Defence, Mining & Industrial and Buildings & Facade segments."

Despite the massive price gain, the positive direction of the business means Duratec shares are still excellent value, according to the LSN team.

"The company has a robust balance sheet with net cash of $66 million, is trading on ~12x PE, growing >40% pa, with further upside from a strong order book and potential acquisitions."

Remarkably, the $350 million company is sparsely covered by analysts. At least the Euroz Securities team agrees with LSN, rating it a strong buy as shown on CMC Markets.

Duratec shares also pay out a dividend, with the yield currently standing at 2.8%.

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Premier Investments. 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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