SPECIAL REPORT:

Got $5000?Here Are 5 ASX Companies Set Soar In 2022

(The following content is not a personal recommendation to buy any of the following companies as I am not taking your personal financial situation into account.)

2020 hit many industries hard with travel, leisure, hospitality and oil businesses taking a beating as lockdowns sent the global economy into a recession. Otherwise strong companies saw their share price plummet as a result.

NOW as markets come back, and institutional money shifts, these undervalued offer potential opportunities for investors…

Throughout 2020, due to the COVID -19 pandemic, there were a select group of stay at home / work from home companies that soared in value. 

Companies such as Wesfarmers (who own Bunnings and Office Works), electronic payment provider AfterPay and of course the ecommerce businesses such Amazon did extremely well for shareholders. 

There were some obvious losers in 2020 also with travel, leisure, hospitality and oil businesses hit hard as lockdowns sent the global economy into a recession. 

However, vaccines are now being rolled out around the world, consumers and businesses are starting to regain confidence, millions of laid off workers are winning their jobs back and the industries and sectors hit hard by the pandemic will have the opportunity moving forward to bounce back with revenue and earnings expected to pick up. 

The following are 5 ASX listed companies that were hit hard in 2020 yet we believe are set to soar in 2021. In fact, their share prices have already started to gather momentum from their lows. 

Flight Centre

If there is one man for the job of leading Flight Centre out of another financial challenge it’s CEO and Founder Graham Turner. 

He’s been there from day #1. He helped steer the company through the downturn in 2000. Got Flight Centre back on its feet after the global financial crisis in 2008. And in 2020 took the bull by the horns, closed 91 Flight Centre retail stores, tipped in $10 million of his own money, set about restructuring the company during lockdown… and successfully raised capital to ensure the company was financially ready for the travel boom we are likely going to see in the coming 2 to 3 years. 

Flight Centre was trading at $43 prior to the pandemic and in mid-February 2021 was trading at just $16. That’s a potential 200% return back to its January 2020 price. 

Once institutional investors take Flight Centre seriously watch its share price soar.

Downer EDI

It may not be a household name, but Downer EDI is one of Australia’s largest infrastructure companies and stands to benefit from the government’s stimulus plans and a successful reopening of all sectors of Australian economy.

Employing over 53,000 people, Downer EDI operates in every state in Australia providing road network management, spray sealing, asphalt laying, landfill diversion, intelligent transport system services; and manufactures bitumen based and asphalt products. 

Downer EDI also designs and constructs light and heavy rail networks, signalling works, track and station works, and bridges; and provides rail safety technology, fleet maintenance, and asset operation and overhaul services.

Downer EDI is a stalwart company and has a solid 5 year annual dividend yield of 4.3%. Its share price was trading at over $8 prior to the pandemic and in mid-February 2021 was still trading at a discount of $5.50 some 50% lower than its pre Covid level.

Sydney Airports

It’s been essentially closed since April 2020 handling only a trickle of local interstate flights and whilst Sydney Airports may take some time to get back to full capacity I doubt traders will wait for its terminals to be full before buying back into this local market favourite. 

Its share price sank from $8.90 in early 2020 to a low in March of $4.50 and in mid-February was still trading at a discount of $5.88.

The pent up demand for local and international travel is going to be significant and Sydney Airports has a monopoly that any business would love to have. No competition. We expect its share price to do extremely well over the coming 18 months as airline traffic picks up and its most lucrative money maker of all, parking fees comes flooding back. 

Sydney Airports has still got a 50% move to get back to its pre Covid level and that is not counting the +0.38c per share dividend investors will likely enjoy. 

ANZ Bank

Credit risk hit banks hard during 2020 with millions of Australian’s suspending mortgage payments and banking regulators asking the big banks such as ANZ to suspend or substantially reduce their healthy dividend payments. 

ANZ and the other 3 ‘tier 1’ major banks in Australia are money making machines and would have been hoarding huge amounts of cash over the past 12 months that they will return to shareholders at some point through dividends.

The credit risk that was a big worry in 2020 has now subsided. And whilst ANZ has rallied strongly from its lows, the share price appreciation we believe will continue for the coming years as an economic boom takes hold and interest rates ultimately go higher. 

The RBA cash rate in February 2021 is 0.1% and banks find it more challenging to make profits when interest rates are low. As interest rates recover and go higher so will bank share prices and ANZ we believe will lead the way.

In 2015 prior to the Royal Banking Commission, ANZ was trading at $37 and in mid-February 2021 it was trading at $26.61 (still 40% away from its all-time high). When interest rates creep higher and they will in time, the share price of ANZ will likely creep higher also.

Woodside

Oil prices for a fleeting moment in 2020 fell to $0 as demand fell through the floor and so much uncertainty swirled around the world economy. 

Many investors are naturally betting on green energy companies like Tesla and others… and there is no question that over the next 30 years, car manufacturing will turn from oil driven cars to electric. However in the meantime aeroplanes, ships and countless industries will continue to rely on oil.

Woodside is well placed to take advantage of the increase in oil demand. And whilst its share price will be subject to the price fluctuations in oil, it is likely that oil demand will increase in the coming 12 months.  Oil producing nations will increase supply to meet demand but the earnings potential for Woodside looks far brighter in 2021.

During the markets lows of 2020, Woodside hit $15.30 and in mid-February 2021 has rebounded to trade at $24.78. Prior to the pandemic Woodside in December 2019 traded at $35, which means it still has a 100% move to get back to its pre COVID level. Add to this an increasing dividend yield in 2021 and investors are likely to come flooding back to Woodside as oil demand increases and its revenue and earnings improve.  

Here’s What To Do Now…

I’ve shared with you 5 ASX 200 listed companies that we think will do well over the course of the next 3 to 5 years. But the real real overlooked key, is to know how to apportion and structure your portfolio correctly. To make sure you have the right amount of shares for your circumstances and budget, whatever that might be… And manage the risk successfully.

So I invite you to my next live training event where I’ll share with you how we value companies correctly and build rock solid portfolios to build wealth, not only for 2021 and 2022, but for years ahead. Simply enter your details below for your free pass. 

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