The markets have been topsy turvy recently. This has driven investors to such a confusion that they are unable to decide the right stocks to add to their portfolio. The below given stocks are not only the best growth stocks to buy now, but also recession proof in a way.
Telstra Group Limited (ASX: TLS)
Telstra Group Limited announced its financial results for the half-year ended 31 December 2024, demonstrating continued growth and strategic progress. The company reported a 1.5% increase in revenue, excluding finance income, reaching $11.60B. Profit for the period rose by 7.1% to $1.12B, and basic earnings per share increased by 6.0% to 8.9 cents. In alignment with their capital management framework, the Board of Directors declared a fully franked interim dividend of 9.5 cents per share, a 5.6% increase compared to the prior corresponding period.
Telstra's financial performance reflects growth across key segments, including mobiles, InfraCo Fixed, Fixed C&SB, Fixed Enterprise, and International. The company also focused on cost management, reducing operating expenses through role reductions and productivity gains, which partly offset cost inflation. Telstra announced an on-market share buy-back of up to $750M, indicating confidence in its financial position and future outlook.
The T25 strategy remains a key focus, with Telstra achieving several operational milestones. Episode NPS is on track to meet targets, mobile coverage has expanded to over 3 million km², and 5G population coverage reached 91%, with 60% of mobile traffic on 5G in December 2024. Furthermore, the intercity fiber network project is progressing, with multiple routes under construction. Overall, Telstra's results indicate a strong financial position and continued execution of its strategic objectives.
Energy One Limited (ASX: EOL)
Energy One Group reported strong growth for the half-year ended 31 December 2024. Group revenue, including other income, reached $28.8M, a 14% increase compared to the prior period. Underlying EBITDA rose significantly by 48% to $7.4M, and underlying net profit before tax increased by 144% to $3.9M. The company also highlighted a substantial 18% year-on-year growth in Annual Recurring Revenue (ARR) as of January, reaching $54.9M.
Energy One emphasized the success of its strategic restructuring over the past two fiscal years, which has led to improved operational efficiencies and scalability. The Group's focus on margin improvement is yielding positive results, with the EBITDA margin increasing to 26% from 20% in the prior period. The company also reported a rise in cash-EBITDA, considered a proxy for cash flow, to $4.5M, up by 61%.
Energy One is focused on organic revenue growth, continued margin expansion, and supporting customers through the energy transition. The company aims to capitalize on the increasing demand for its solutions, driven by the growth in renewable energy and the complexity of energy markets. Energy One is also pursuing ISO 27001 certification to enhance its cybersecurity posture and gain a competitive advantage. While not providing specific FY25 guidance, the company anticipates the second half of the fiscal year to be stronger than the first, with a medium-term target of achieving cash-EBITDA margins approaching 30% by around FY27.
(Source: Company Announcements)
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