Aristocrat Leisure Ltd (ALL) $65.43

Gaming company ALL was the proverbial one that got away for MM in 2024, as we were too slow to press the “Buy” button before the stock surged higher following a strong result in May. ALL also delivered a solid FY24 result late last year, and we particularly liked how they have decided to return to what they know best: focusing on finding opportunities in regulated gaming, specifically poker machines and casino-style online games.

Valuation contraction has brought many quality growth stocks back to more appealing levels; ALL is now trading around it’s longer term average PE, on 23x Est for FY25. At MM, we like the concept of buying a quality stock that’s being dragged lower by a market phenomenon rather than internal issues at the company. In the short term, a dip under $63 wouldn’t surprise us, but we would look to “buy the dip” – less than 4% lower.

Our ideal entry-level is in the $61 -63 area, only 3-4% lower. However, as a stock, we are keen to own, we might not be as pedantic this time around. While tariffs are a risk, we do lean to the likelihood that certainty will ultimately be a positive thing.

• We like ALL following its more than 20% correction and have added the stock to our Active Growth Portfolio’s Hitlist.