scroll

Johns Lyng Group (JLG) and Worley Ltd (WOR)

Advanced Search

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 31/05/2025

Johns Lyng Group (JLG) and Worley Ltd (WOR)

To the MM Team, There are two stocks that you hold in your portfolios on which I would appreciate your updated view: WOR and JLG. Both stocks have had a period of underperformance. My question is, that in comparison to other undervalued stocks on the ASX do you still think that these two stocks have the best relative growth potential over the next 1-2 years? Keep up the great work, Charles

Answer

Hi Charles,

Great question as we are asking ourselves the same thing into EOFY:

Worley Ltd (WOR): this infrastructure services company’s stock plunged to a 52-week low in April, an ugly month for most stocks but WOR underperformed due to concerns around how it would perform in the 2nd half of FY25. However, we continue to back their strategy of expanding margins through higher value work focussed on sustainability project, and view the stock as undervalued ~$13 after the company reaffirmed FY25 guidance last week – if we weren’t already long, we would be buying it.
Johns Lyng Group (JLG): this leading integrated building services provider has become a downgrade king of late with the latest in February. We wrote about it here and the position remains under consideration. We have no intention of adding to JLG, and our next likely action is to sell.

chart

Worley Ltd (WOR)

LAST UPDATED 30/05/2025 11:59

Latest Reports

Weekend report 31/05/2025

Weekend Q&A: As we approach the EOFY, the ASX200 is flirting with its all-time high

The ASX 200 rallied on the final trading day of May, closing up +0.3% for the session, leaving the index just ~2% below its all-time high. Overall, an excellent performance by the Australian bourse, advancing +3.8% for the month, shrugging off the ongoing uncertainty around tariffs and rising long-dated bond yields. However, a more dovish than expected RBA, a strong banking sector, suspicions of overseas buying, and a market caught underweight stocks after their dramatic “V-shaped” recovery from Trump's “Liberation Day” was enough to drive the local market back towards the 8600 area. With pullbacks well supported in one of the most hated bullish advances that we can recall, it makes for a compelling argument that new highs are just around the corner.

Afternoon report 30/05/2025

The Match Out: Sell in May (& go away) not the go this year, ASX gains 3.8%!

The final trading day of the month carried the ASX to a 3.8% gain over the period and now within ~200pts of all-time highs with investors brushing off tariff risk and shifting focus back to fundamentals.