This fundie is buying these ASX stocks ahead of ‘several’ rate cuts

Centennial’s Michael Carmody has been busy putting money back to work before more rate relief. He also names two fintechs he says are poised for a rally.

Michael Carmody is a portfolio manager at Centennial Asset Management. The Sydney-based boutique oversees about $220 million in assets.

Which stock in your fund has the most near-term upside?

In the short term, we believe Zip has the potential to rally. Zip is well positioned to deliver further strong growth in revenues and profitability. The US buy now, pay later market remains relatively immature and Zip’s US footprint is likely to grow rapidly as it matures. In addition, new product launches are expected to contribute to the company’s transaction volumes and earnings growth during the next year.

Zip’s balance sheet strength and ongoing buyback are also expected to support the share price performance.

Zip has surprised the market with better-than-expected earnings over the last year. Post the most recent quarter, the company upgraded expectations again. We see additional upside earnings risk in the future.