21 ASX stocks that should be on your radar
Please note this interview was filmed on 1 September 2025
Another reporting season is in the books, so it’s time again to sit down with the Yarra Capital Management Equities team to discuss the key takeaways and, more importantly, what lies ahead.
I was joined by Marcus Ryan, Michael Steele, and Joel Fleming, who represent the entire market cap spectrum, from micro to large caps. Below is a summary of the key themes and stocks discussed but, if you want the full experience, make sure to watch the video.
Reporting season recap
Kicking off the discussion, Marcus Ryan (large caps) characterised the August reporting season as “broadly in line” but highlighted that the outlook was weaker. He noted that FY25 earnings ended around 2.5% lower year-on-year, driven largely by a 15% fall in resources.
“This actually marked the third successive reporting season of lower earnings across the ASX 200,” Ryan said, adding that the FY26 outlook was cut from 5% to 3.5% growth, with the most significant downgrades coming from healthcare and building materials.
Despite this, the market climbed 3% across the period.
“There’s a lot of exuberance out there,” Ryan added.
Joel Fleming (micro caps) focused on volatility:
“When you’ve got blue chips behaving like micro caps, it really is something you don’t see all the time.”
Michael Steele (small caps) noted that the small caps market returned to growth.
“We had 7% earnings growth over the last year and that’s a major inflexion point compared to the prior two years where earnings actually declined.”
Sectors driving this growth included technology, property trusts, services, and gold.
For one of the highlights of the season, Ryan praised Ansell (ASX: ANN) for handling US tariffs, saying the company delivered “earnings up 10% ahead of the market expectation” with the stock bouncing 12%.
Conversely, Steele pointed to energy as a lowlight: “We saw energy companies materially underperform as forward expectations for earnings were reduced dramatically.”
stock ideas across market caps
Large caps
Ryan stressed that volatility has reached new highs:
“This was, in fact, the most volatile reporting season across the ASX 200.
Around 30% of stocks showed in excess of three standard deviation daily moves on the day of their result.”
He attributed this to greater short-termism and quant-driven flows but sees opportunity for long-term investors.
On positioning, Ryan favours resources and communications services. Within mining, he prefers copper and gold exposure over iron ore, highlighting Northern Star (ASX: NST): “It’s not a one-trick pony on the gold price… the valuation’s attractive at 7.5 times EV/EBITDA.”
In communications, he singled out Car Group (ASX: CAR) as a “real standout” given double-digit top and bottom-line growth, and also likes Seek (ASX: SEK), Nine Entertainment (ASX: NEC), and TPG Telecom (ASX: TPG).
Small caps
Steele argued that small caps are poised to continue outperforming, supported by stronger earnings growth (7% vs a 3% decline for large caps), lower interest rates, and attractive valuations.
“Small companies are trading at a 10% PE discount to large companies,” he said.
He pointed to Centuria Capital (ASX: CNI) and Baby Bunting (ASX: BBN) as two standout names, highlighting their ability to expand market share, grow margins, and benefit from cyclical demand.
Micro caps
Fleming noted the improving set-up for microcaps:
“We saw companies report really well, the top line starting to grow, the costs are under control… a really positive backdrop.”
Two stocks stood out: Energy One (ASX: EOL), which provides software to the energy sector, and Artrya (ASX: AYA), a medtech company with FDA approval for its coronary disease detection software.
“We think it’s definitely one to watch over the next 12 months,” Fleming said.
sector deep dive: consumer, financials, property
Consumer
Despite rate hikes, the consumer proved resilient.
Steele pointed out that discretionary results “were better than expected,” supported by moderating inflation, rate cuts ahead, and tax relief. He likes the aforementioned Baby Bunting and Eagers Automotive (ASX: APE), which benefit from these trends.
Fleming highlighted Universal Store (ASX: UNI) and Autosports (ASX: ASG), stressing that success comes down to “selling a good product at the right price in the right place.”
Financials
Fleming noted Zip Co (ASX: ZIP) as a standout, bouncing from “an almost near-death experience” to a strong result. He also pointed to Netwealth (ASX: NWL), Hub24 (ASX: HUB), and Praemium (ASX: PPS) as strong performers in the platforms space.
Ryan took a more cautious stance in large caps, underweighting the big banks except for Westpac (ASX: WBC).
“The banking sector does remain very expensive… a whopping 60% premium to the long-run PE.”
Instead, he sees better opportunities in insurers like IAG (ASX: IAG) and Suncorp (ASX: SUN), where renewal rates remain strong despite premium hikes.
Property
Ryan emphasised that “fundamentals are unquestionably improving” in property, with malls near full occupancy, stabilising office demand, and valuations rising again. He sees Mirvac (ASX: MGR) as a standout, offering rental growth, residential exposure, and a modest premium to NTA.
Steele echoed the positive view, favouring property fund managers, which should benefit from improving inflows and rising asset values, as well as constrained supply in retail property.
The final word
Across market caps, the Yarra Capital Management equities team struck a cautiously optimistic tone. While Ryan warned of continued volatility in large caps, Steele argued that small caps have regained their growth footing, and Fleming sees microcaps finally beginning to attract capital.
As Ryan summed it up:
“The key point from our perspective would be to stay focused on the long-term upside in names and being able to look through volatility for the benefit of our investors.”

Time codes
0:28 - Characterising the season
1:43 - What were the major themes?
2:49 - Highlight of the season
3:52 - Lowlight of the season
4:25 - Large-cap themes and stocks to watch
9:49 - Small-cap themes and stocks to watch
12:30 - Micro-cap themes and stocks to watch
15:40 - Sector focus: consumer
18:27 - Sector focus: financials
21:32 - Sector focus: property
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