ASX stocks to be kept on radar if the next sell off occurs

When volatility returns, opportunities arise and investors seeking quality at reasonable valuations then scout for stocks like CSL, Coles, and Wesfarmers well placed with resilient cash flows, expanding margins and durable long term growth prospects.

CSL Limited (ASX: CSL) 

remains one of Australia’s most resilient global healthcare leaders which offers long term growth potential.
For FY25, revenue rose 5% to US$15.6 billion while NPAT climbed 17% to US$3.09 billion and Free cash flow surged 58% to US$2.86 billion which reflects improved operational efficiency.
The company lifted its annual dividend 11% to US$2.92 per share, backed by a robust balance sheet with leverage down to 1.8x EBITDA.

With cost transformation initiatives targeting US$500 million in annual savings by FY28 and a US$500 million share buyback program commencing in FY26, CSL is positioned for margin expansion and compounding growth.

Currently Trading below historical valuation multiples despite record earnings, CSL stands as a high quality stock to accumulate on the next market sell off.

Coles Group Limited (ASX: COL)

remains a defensive retail leader worth keeping on the radar for accumulation during broader market pullbacks.
 For FY25, sales revenue rose to A$40 billion, led by 4.3% growth in supermarkets and 1.1% in liquor, with underlying EBIT up 6.8% to A$2.22 billion. Net profit after tax came in at A$1.18 billion, supported by cost efficiencies through the Simplify and Save to Invest program, which delivered A$327 million in annual savings.

operating leverage improved across supermarkets despite wage inflation. Looking ahead, Coles expects FY26 sales growth of ~5%, driven by new store openings, supply chain automation, and continued expansion in eCommerce. 

With strong cash flows, disciplined capex of around A$1.2 billion and improving margins, Coles offers a compelling defensive opportunity to buy if the valuation metrics get better in future.

Wesfarmers Limited (ASX: WES) 

keeps showing its strength and long term focus on creating value across its mixed businesses, making it one of those stocks to keep buying when the market dips.

 For FY25, the company’s revenue went up by 3.4% to about A$45.7 billion and NPAT jumped 14.4% to around A$2.93 billion, helped by strong results from Bunnings and Kmart and a smart control over its portfolio. EBIT also increased 11.9% to A$4.47 billion, supported by better productivity, cost savings and more use of digital tools across its divisions.

The company distributed a fully franked final dividend of A$1.11 per share which brought the total for the year to A$2.06, up by 4% from last year. 

Future growth is expected from its lithium business through Covalent Lithium project, expansion in health and online retail, and a A$5 billion capex plan focusing on sustainability and AI based efficiency. With steady cash flows and trusted brands, Wesfarmers stays a top quality stock to buy during sell offs for long term investors.

Source: Company Announcements