Buy Hold Sell: 6 ASX stocks poised for a big FY27, plus two to avoid

As equity investors, we're always aiming for better-than-average - otherwise we'd just buy a low-cost index ETF and be rid of the vagaries of individual stocks (but what fun would that be?!?!)

No, playing the game of the market, we want - even need - stocks in our portfolio that deliver above-average performance, if for no other reason than to cover the laggards.

With the new financial year about to roll over, it’s time to cast our eyes ahead and think about companies that can deliver for us in the coming 12 months.

In this episode, Livewire's Chris Conway is joined by Yarra Capital Management's Marcus Ryan and ClearBridge Investment's Reece Birtles, who each pitch three stocks that they believe are poised for a big year ahead. 

That's right, it's six straight-up buys, with the guests talking passionately about the stocks in their portfolios. 

For good measure, they also share one stock they'll likely avoid over the next 12 months. 

This episode was filmed on Wednesday, 17th June 2026.

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Edited transcript

Chris Conway: Hello and welcome to Livewire's Buy, Hold, Sell. My name is Chris Conway. With the end of financial year upon us, it's time to cast our eyes ahead and think about those companies that will deliver for us over the coming 12 months. In this episode of Buy, Hold, Sell, I've invited Reece Birtles from ClearBridge and Marcus Ryan from Yarra Capital Management to each nominate three stocks they believe are poised for a big year ahead, as well as one that they're likely to avoid. We're going to get straight into it, gents. Reece, I'll come to you first. What's a stock that you think is going to do well?

STOCK THE GUESTS LIKE

ResMed (ASX: RMD)

Reece Birtles: We're picking ResMed. You may not normally expect that from us as a valuation-focused manager, but with the pullback in global healthcare stocks, partly because they prefer lower inflation and lower bond yields, and with some issues in the US around health insurers denying claims, the whole med-tech sector is significantly out of favour. We think that's unfairly punished a stock like ResMed, where obstructive sleep apnoea still only has a 20% recognition or treatment rate in the US market. It's clearly still the premium method of treating the disease. GLP-1 drugs might be brought up as a complement, but they don't really resolve the issue like CPAP machines do. Revenue growth is still running at high single digits and earnings per share growth is around 10%. Having looked at this stock over the last 20 years, there have probably only been three really good valuation opportunities to buy it. At 16 times earnings for double-digit growth, we think it's been mispriced in the current market and should do well ahead.

Chris Conway: Marcus, I'll come to you. Your first pick?

CAR Group (ASX: CAR)

Marcus Ryan: CAR Group would be a real standout for us. It's our preferred name in the online classifieds segment. CAR Group has really suffered over the last year because of concerns around AI disruption. We're happy to take an alternate view. What's remarkable is how indiscriminate the sell-off has been across whole sections of the ASX. Software names are broadly down around 50% over the last 12 months. Some of that may be justified, but online classifieds businesses are also down about a third. We're looking into these discounted share prices and asking where the sell-off may be overdone and where there is an opportunity to set the portfolio up for the next two, three or four years. CAR Group stands out. We actually see CAR Group as more of an AI beneficiary rather than a business being disrupted. The intellectual property sits within its platform, creating a moat around the business. AI also offers the potential to drive more traffic to CAR Group's websites around the world. We like the compounding nature of the earnings. CAR Group is selling services into very large global markets, often with low penetration rates, strong product portfolios and pricing power. We still think this is a business capable of double-digit earnings growth. The stock is trading at 22 times earnings, well below its long-run average of 28 times. We're happy to step in and see this as an opportunity to own a quality compounder over the next few years.

Chris Conway: CAR Group, another solid one. Reece, what's your second pick?

Worley (ASX: WOR)

Reece Birtles: Worley has had a tough 12 to 18 months. It had been doing really well from energy-transition and green projects, but when Trump came in, many of those projects were cancelled. However, the company has been rebuilding its pipeline through projects like CP2 LNG and broader energy infrastructure demand. Whether it's data centres or other energy projects, demand continues to grow strongly. We see the backlog rebuilding. Coming out of the Iran conflict, countries are likely to invest more heavily in energy resilience. Whether that's fuel storage in Australia or large-scale energy infrastructure globally, Worley is likely to be involved. The company has also gone through a cost reset, moving much of its work into central hubs. We think AI can actually be a positive for Worley. It's not as though people are going to start building complex LNG facilities using AI, but Worley can use AI across its engineering knowledge base to make engineers more productive. That may not materially change revenue, but it can improve margins and efficiency. At current pricing, we think the company can reaccelerate growth from here.

Chris Conway: Marcus, Reece was talking about data centres and AI. That's a nice segue for your next pick.

NEXTDC (ASX: NXT)

Marcus Ryan: NEXTDC is a real standout for us in the data centre space. There are four key drivers. First, we're encouraged by the demand backdrop. It's well documented, but customer requirements continue to increase in both scale and urgency. Second, NEXTDC is well positioned to win its fair share of that demand and potentially more. We were encouraged by the company's ability to secure a AAA-rated customer at its Sydney S4 project. Third, there is significant embedded earnings growth. In the last six months alone, contracted utilisation increased by 60%. That creates a pathway towards $1 billion of EBITDA, which is around four times FY26 levels. The fourth point is funding. This has been a concern, but we think the company is now better placed after completing an equity raise. It appears largely funded through to FY28 and is exploring joint venture opportunities. When you put that together, the valuation still stands out. We think the NEXTDC of today is a better business than the NEXTDC of yesterday. Applying its historical multiple of 20 times EV-to-EBITDA implies a share price of around $18, representing more than 20% upside.

Chris Conway: Reece, data centres require big sheds, but there's something else that requires big sheds. What's your next pick?

Inghams (ASX: ING)

Reece Birtles: Inghams. This is one of those heavily beaten-down stocks. Last year it lost a Woolworths contract, changed CEOs and ran into productivity and cost issues. The new CEO came from the New Zealand operations and has a strong track record of driving efficiency and productivity. Demand for chicken remains strong and it's one of the cheapest protein sources during a cost-of-living crisis. Volume growth is accelerating and the company is winning new contracts. It's effectively a two-player market, so while it lost one contract, it has also become easier to win incremental business. A key driver is wholesale profitability, which has improved significantly over the last six months. Management remains focused on efficiency and cost control. At its recent investor day, Inghams indicated higher fuel and transport costs related to Iran could represent around a $15 million earnings hit, yet it still reiterated guidance. That highlights the strength of the underlying improvement. We think earnings can rerate significantly and the valuation can follow.

Chris Conway: Marcus, bring us home with your final pick.

Transurban (ASX: TCL)

Marcus Ryan: Transurban. It's quite different from growth names like NEXTDC and CAR Group, but we see it as a high-quality defensive infrastructure business trading at a reasonable valuation. Many of the headwinds Transurban has faced over the last five to seven years are becoming less significant. That includes COVID-related traffic disruptions, project issues, higher interest rates and elevated petrol prices. The stock has been relatively flat for seven years, but we see those headwinds easing. The value proposition of its toll roads in Australia and the US improves as congestion increases, allowing toll prices to rise over time. Traffic volumes have already stabilised and could improve further if oil prices remain lower. We also like the contracted nature of the revenue, with concessions linked to inflation. Transurban is effectively an inflation beneficiary. We're expecting a double-digit total return, made up of a dividend yield of around 4.5% and mid-single-digit growth.

Chris Conway: I love asking investors about the stocks they're buying. What I find even more interesting is asking which stocks they're avoiding. Reece, what's one to avoid in FY27?

STOCKS TO AVOID

Commonwealth Bank (ASX: CBA)

Reece Birtles: I'm going big: Commonwealth Bank. We think Commonwealth Bank has become significantly mispriced as the market has become increasingly passive. Trading volumes on the ASX are down more than 40% since before COVID. The liquidity-weighted index weight is much lower than the market-cap weight, meaning every dollar flowing into passive strategies has a disproportionately large impact on CBA. When you compare the share price with earnings, dividends and discounted cash flow valuations, it appears increasingly disconnected from fundamentals. At the same time, lending growth is likely to slow. Credit growth was unusually strong heading into the February reporting season and policy changes have already affected the market. With additional federal budget changes, revenue growth is likely to moderate, costs remain elevated and loan losses are at record lows. At 25 times earnings, we think the stock is priced far too richly and should be trading closer to 16 times earnings.

Chris Conway: Marcus, bring us home. What's one stock you'd avoid over the next 12 months?

Brambles (ASX: BXB)

Marcus Ryan: We remain cautious on Brambles. The stock has already fallen around 25% from its highs after the company disclosed disruptions within its US pallet repair subcontractor network. Some subcontractors were unable to repair pallets and return them to the network efficiently. We think there are still risks the market may not have fully accounted for. First, revenue growth could remain slower for longer. Brambles has guided to around 2.5% sales growth in FY26, but consensus expects that to accelerate to 4.5% in FY27. We think some of the current issues could extend into that period. Second, there is the risk to market-share gains. Operational disruptions make it harder to win new customers and management may need to focus more on existing relationships. Third, margins could come under pressure. Passing through price increases becomes more difficult when service levels have been challenged. Finally, valuation offers little margin of safety. The stock trades around 18 times forward earnings, broadly in line with its historical average, which doesn't fully reflect the risks ahead.

Chris Conway: There you have it, a handful of stocks to consider as we head into FY27 and perhaps a few to think twice about as well. A massive thank you to Reece and Marcus for joining us in this end-of-financial-year series. If you enjoyed this episode, make sure to give it a like and follow our YouTube channel. We're adding lots of great content every week.