• This article will look at two TheBull.com.au stock picks for this week.
• This week it’s two bookends of the Australian economy, covering the old and the new.
• A mid-tier miner and a biotechnology company, offering industry diversification to your portfolio with two growing companies.
Proteomics International Laboratories ASX:PIQ (PIQ) and South32 Limited ASX:S32 (S32) are two Australian companies listed on the ASX operating in biotechnology and mining activity, respectively.
Diversification is critical to a healthy portfolio. This week TheBull.com.au is looking at two companies that operate in entirely different industries. Both exhibit decent value, a growing market segment, and a healthy set of financials. With their growth potential, they will be a positive addition to a portfolio.
Proteomics International Laboratories ASX:PIQ (PIQ)
Proteomics International Laboratories (PIQ) is a biotechnology company focusing primarily on developing innovative diagnostic tests for various diseases.
PIQ’s recent announcement regarding the accuracy rating of its potential new blood test for diagnosing endometriosis is a significant development in the field of women’s health. With one in nine women suffering from endometriosis, the market potential for this diagnostic test is enormous.
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Furthermore, PIQ’s PromarkerD test could revolutionise kidney function monitoring in patients with type 2 diabetes. Currently, no diagnostic tests are available to predict diabetic kidney disease in patients with no symptoms.
With the number of patients with type 2 diabetes on the rise globally, the market potential for this diagnostic test is also substantial.
PIQ’s commitment to developing innovative diagnostic tests for a range of diseases makes it an attractive investment opportunity. With the potential to address significant unmet medical needs, PIQ has the potential for substantial growth and expansion in the future. Investors looking for exposure to the biotech industry should consider adding PIQ to their portfolios.
Source: Yahoo! Finance
South32 Limited ASX:S32 (S32)
S32, as Australia’s largest mid-tier diversified miner, presents a promising investment opportunity with its increasing exposure to energy transition metals and commodities.
Despite the recent drop in share price from $4.76 on March 3 to $4.245 on April 6, we see this as a buying opportunity. The company’s first half of 2023 results were encouraging, further adding to the reasons for investment.
S32’s strategic acquisitions and divestments have contributed to its exposure to the growing energy transition market. The company has invested in commodities, including nickel, manganese, and aluminium, used in renewable energy infrastructure, including electric vehicles and battery storage.
As the world moves towards cleaner energy, S32’s growing presence in this market is expected to drive future growth.
S32 has a strong financial position, a solid balance sheet, low debt levels, and strong cash flow generation. They give the company the financial flexibility to invest in growth opportunities and reward shareholders through dividends and buybacks.
S32’s increasing exposure to energy transition metals and commodities, its strong financial position and encouraging first-half 2023 results make it a potentially attractive investment opportunity.
Source: Yahoo! Finance