Three stocks that fit the “overly pessimistic” narrative

Luke Laretive

CEO & Investment Advisor

Luke Laretive of Seneca Financial Solutions analyses recent activities in several companies. Commencing with Collins Food (ASX: CKF), Luke notes good like-for-like sales in a difficult environment, alongside expansion in Australia and steady growth in Europe. Mentioning Guzman and Gomez (ASX: GYG), Luke deems it too rich for his taste buds, highlighting that other businesses offer better potential for growth.

In the midst of recent profit downgrades, Luke sees a silver lining among some stocks that he views as oversold. Mentioning Credit Corp (ASX:CCP), Luke feels that it’s undervalued given its track record of 20% returns. He criticises the pessimistic outlook in the market, suggesting it’s not considering business growth potential, particularly for Credit Corp.

Turning attention to IDP Education (ASX:IEL), Luke interprets its 44% dip from its 52-week high as a buying opportunity. Seeing the decline in student numbers as a cyclical downturn rather than a permanent issue, Luke maintains his confidence in the company’s ability to deliver strong returns. He ultimately sees IDP as another worthy investment for patient investors.