• This article will look at twice weekly TheBull.com.au stock picks.
• This week it’s two ASX defensive stock market plays.
• A medical technology company and an insurer are both industries that will continue to serve the market, whatever the weather.
Capitol Health ASX:CAJ (CAJ) and Steadfast Group Limited ASX:SDF (SDF)
are prominent in their respective markets. CAJ is a leader in Australia for diagnostic imaging, and SDF is the largest general insurance broker network in Australasia.
For investors looking to ensure they can earn a modest dividend from the stock market with less relative risk to their principal, defensive stock plays are the way to go. CAJ and SDF are two such investments worth your consideration.
Capitol Health ASX:CAJ (CAJ)
CAJ is a leading provider of diagnostic imaging and related services in Australia. The company’s strong financial performance in the first half of 2023, with revenue of $98.1m AUD, reflects its continued success in delivering quality diagnostic services to its customers.
With a focus on providing state-of-the-art technology and high-quality imaging services, Capitol Health is well-positioned to benefit from the growing demand for medical diagnostics.
Top Australian Brokers
One of the main factors driving CAJ’s growth is its ability to attract and retain highly skilled specialists in diagnostic imaging. The company has a reputation for providing an excellent work environment and investing in the ongoing development of its staff.
This focus on talent acquisition and development has helped the company maintain a high level of expertise in the field of diagnostic imaging, which in turn enhances the quality of its services and strengthens its competitive position.
CAJ is strategically positioned to benefit from the expected recovery in face-to-face general practitioner consultations, which will drive increased demand for imaging services. As a result, the company is expected to experience an uptick in imaging volumes, further driving revenue growth.
CAJ is a good investment due to its strong financial performance, talented team, and strategic positioning in the diagnostic imaging industry. With a focus on providing high-quality services and investing in the ongoing development of its staff, the company is well-positioned to capitalise on the growing demand for medical diagnostics in Australia.
Source: Yahoo! Finance
Steadfast Group Limited ASX:SDF (SDF)
SDF is the largest general insurance broker network in Australasia. With a solid financial performance in the first half of the fiscal year 2023, SDF reported an underlying net profit after tax and amortisation of $111.1mm AUD. That represents an 18.8% increase from the corresponding prior period.
Its financial performance reflects the company’s ability to capitalise on opportunities in the insurance market and maintain a competitive advantage.
One key factor that supports SDF as a good investment is the expectation of higher inflation leading to an increase in insurance premiums and higher commissions.
As inflationary pressures continue to mount globally, insurance premiums are expected to rise, increasing revenue for insurance brokers like SDF. Furthermore, with a solid and extensive network of insurance brokers, SDF is well-positioned to benefit from the expected increase in demand for insurance products.
SDF’s leadership in the general insurance broker network in Australasia gives the company a significant competitive advantage. With a vast network of brokers, SDF can leverage its scale to offer customers better pricing and more comprehensive coverage options, strengthening its market position and enhancing its growth prospects.
SDF is a good investment due to its strong financial performance, extensive broker network, and expected increase in demand for insurance products. The company’s ability to capitalise on market opportunities and maintain its competitive advantage make it a compelling investment option for investors seeking exposure to the insurance industry.
Source: Yahoo! Finance