Here are 2 ASX stocks that just received a “Perfect 10” Smart Score

In an environment of rising inflation, rising interest rates and recession forecasts, investors can face complex dynamics when trying to identify the best stocks to buy over the long term.

TipRanks’ tools help investors navigate the complexities of the market to select stocks that are likely to perform well in their portfolios. By considering a variety of data-driven insights, the TipRanks Smart Score tool profiles stocks on a scale of 1 to 10 to show their potential to underperform or outperform the market.

The interpretation is that a higher smart score suggests a stock is more likely to outperform market averages. Stocks with a “Perfect 10” TipRanks score have historically outperformed the broader market. The tool can help investors perform important due diligence in uncertain market environments. Both of these ASX stocks recently achieved the “Perfect 10” score.

Pro Medicus Limited (ASX: SME)

Established in 1983, Pro Medicus, headquartered in Richmond, is a global provider of medical imaging software and services. Its customers include hospitals, healthcare groups and diagnostic centers. The global market for medical image analysis software is expected to reach $5.49 billion by 2030, from $2.9 billion in 2021, according to Grand View Research.

Pro Medicus’ profit for the 2022 financial year jumped 44% to A$44.4 million. The company has steadily increased the amount of its annual dividend per share over the past four years. Pro Medicus has a disciplined dividend program, as indicated by its 28.5% payout ratio, the company retains a large portion of its earnings to invest in future growth. The company recently secured several new revenue deals.

Although shares of Pro Medicus have fallen about 3% over the past week, they have risen about 20% over the past six months. According to TipRanks analyst rating consensus, Pro Medicus stock is a Hold. The average Pro Medicus share price forecast of AU$56.58 implies more than 4% upside potential.

Additionally, the TipRanks Company Insider Trading Activity tool shows that the insider confidence signal is currently positive on Pro Medicus shares. Over the past three months, Pro Medicus insiders have bought A$9,100 worth of shares in the company.

Harvey Norman Holdings (ASX:HVN)

Harvey Norman, headquartered in New South Wales, is a multinational retailer that sells a wide range of products. Harvey Norman is leveraging its strong balance sheet to support its expansion, with plans to open stores in several overseas markets.

The retailer’s president, Gerry Harvey, recently revealed that shoppers were still making big purchases despite inflation pushing up the cost of living.

Harvey Norman is profitable and pays dividends. The retailer’s 24.8% payout ratio shows a conservative dividend program that saves a large portion of profits for reinvestment in the business.

Although shares of Harvey Norman have fallen about 12% since the start of the year, analysts remain bullish on the stock. According to TipRanks analyst rating consensus, Harvey Norman stock is a Moderate Buy. Harvey Norman’s mid-price target of A$4.29 implies the stock is fully priced at current levels.

Harvey Norman’s shares are gaining favorable mentions on financial blogs. Data from TipRanks shows that financial blogger reviews are 100% bullish on HVN, compared to an industry average of 65%.

Final Thoughts

Pro Medicus and Harvey Norman have promising business prospects. Although stock price forecasts currently show only modest upside potential, Pro Medicus and Harvey Norman are a good source of dividends for those investing for income.


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