Market corrections are not always bad if an investor has a knack of carefully analysing the stocks to differentiate between a healthy pullback and sustained downtrend.
Investors with a long-term investment horizon, can buy such stocks at a lower price which deliver value when they rebound.
Fundamentally Strong ASX Stocks
CSL Limited (ASX: CSL)
Domino’s Pizza Enterprises Limited (ASX: DMP)
James Hardie Industries PLC (ASX: JHX)
Jumbo Interactive Limited (ASX: JIN)
has disclosed its intention to demerge one of its segments, CSL Seqirus, on 19 August 2025, which may have caused a temporary drop in its share price. Otherwise, the company has shown robust performance over the years, with NPATA increasing from $2907 million in FY24 to $3,303 million in FY25, and Free Cash Flow showcased an increase of 58 per cent. The profits are driven from revenue growth in all of its segments, CSL Behring by 6 per cent, CSL Seqirus by 2 per cent, and CSL Vifor by 8 per cent. Total dividend rose by 12 per cent during FY25, showcasing its commitment to shareholders. CSL is planning to buy back its share in FY26 to focus on high-priority growth areas.
Domino’s Pizza Enterprises Limited (ASX: DMP)
has recorded steady growth in its same-store sales during the FY25 due to weaker performance observed in ANZ, Japan, and France in the first seven weeks, which was majorly offset by strong growth in Germany, BENEFLUX and Malaysia. The performance of the company slightly declined in comparison to the previous year due to an increase in non-recurring items from $28 million in FY24 to $120.6 million. Still, the company made a positive free cash flow of $47.4 million. DMP has announced DRP for the final dividend of 21.5 cents per share. Overall, the company is focused on restructuring to maintain its profitability in the coming years.
James Hardie Industries PLC (ASX: JHX)
has performed better than guidance, underpinned by growth in its European Building Products segment. The company was facing challenges due to soft market demand, but still it performed better than expected and showcased consistent revenue of USD 899.9 million in Q1 FY26, Operating Income of USD 138.6 percent and Net Income of $62.6 million. The performance showed a slight decline in comparison to the previous year's same quarter. JHX’s recently acquired business, AZEK, outperformed this year. Hence, the decline in financial performance is expected to recover in the next quarter, benefiting from the acquisition.
Jumbo Interactive Limited (ASX: JIN)
marked another year with strong results. The group revenue reported at $145.3 million, Underlying EBITDA at $68.3 million, and Underlying NPATA of $42.3 million in FY25, lower than the previous year’s performance, but met the guidance successfully. JIN’s Managed Services segment’s EBITDA Margin outperformed the guidance range. The total dividend declared during the year was 54.5 cps fully franked and n line with the previous year’s showcasing the commitment to its shareholders. Guidance of FY26 remains strong with expectations of the underlying EBITDA margin ranging from 46 percent to 50 per cent.
(Source: Company Announcements)
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