High Conviction Buys: Follow Our Growth, Income and Mining Stock Picks

In this article, we review our portfolio performance. Our Aggregated Growth, Income, and Mining portfolio delivered a strong 9.7% return over the twelve months to April 2025, outperforming the broader market despite a year marked by volatility, shifting global trade narratives, and domestic economic headwinds. This result reflects the value of our active management approach and disciplined stock selection. High-conviction holdings in the resources sector, such as Northern Star Resources, were standout contributors, alongside consistent performers like Commonwealth Bank. Diversification across the portfolio also helped manage risk and added resilience through the tougher stretches of the year. Let’s take a look at our five high conviction buys. The ASX 200 returned 3.7% over the same period. Our portfolio’s return of 9.7% stands out, delivering notable outperformance. Our outperformance shows that holding quality names with strong fundamentals and exposure to long-term structural themes, like the global energy transition and sustained demand for key commodities remains correct. While we remain mindful of ongoing risks, including geopolitical tensions and global growth uncertainty, our confidence in the portfolio is strong. As we move through the second quarter of 2025, we remain focused on quality, resilience, and positioning for strategic growth. Resilient Performance, Yet Underlying Market Jitters Persist Amidst Global Tensions April 2025 was a month where the Australian share market showed resilience on the surface, but underneath, things were far more nuanced. The ASX 200 has hovered around the 7,900–8,000 range, with miners and resource names providing crucial support. The rally in metals, particularly in rare earths, helped heavyweights like BHP and Fortescue, while the portfolio’s positions in Northern Star Resources and Bisalloy Steel Group continued to deliver. But breaking past the psychologically important 8,000 level proved difficult. Despite some tailwinds, global uncertainties, especially U.S.-China trade friction, kept market nerves on edge, tempering enthusiasm and adding volatility to what otherwise looked like a fairly strong run. Looking to Q2: Global Trade Risks Cloud the Outlook, But High-Conviction Opportunities Remain in Select Sectors and Strategies Heading into the second quarter of 2025, the Australian equity market faces a tough balancing act. On one side, improving inflation data could support a slow and steady RBA easing cycle. On the other, global risks, especially around trade policy and tariffs, could reignite inflation or weigh on growth, forcing policymakers to hold back. There’s also the looming risk of stagflation, driven by weak output and sticky price pressures. Amid these crosscurrents, we continue to favour companies with strong fundamentals, reliable cash flow, and exposure to resilient or thematically supported sectors, like AI infrastructure and energy transition plays. The lack of consensus among market participants only reinforces the need for high-conviction, bottom-up positioning. The need for the RBA to Cut Rates in MAY 2025: Softish labour market data continues. Employment bounced with a rise of 32,000 in March after the fall of 57,000 in February. Unemployment rate continues to hover at 4.0 to 4.1% although importantly, hours worked is slowing. Indeed, hours worked is flat to down. The labour market is resilient due, it appears to government sector hiring. The public/private data comes soon. For now, the data fits neatly with the need for lower interest rates from the RBA. High Conviction BUYS Our portfolio’s outperformance stems from a well-curated selection of companies with strong fundamentals, strategic positioning, and significant growth potential. Here are some of our highest-conviction buys: Commonwealth Bank of Australia (ASX: CBA) leads with a +149% return since our recommendation, followed by Northern Star Resources (ASX: NST) at +109.45%. Stockland (ASX: SGP) and Bisalloy Steel (ASX: BIS) have delivered +43.78% and +32.03%, respectively, while GenusPlus (ASX: GNP) and IVE Group (ASX: IGL) have contributed +25% and +19.32%. QBE Insurance (ASX: QBE) has seen a +9.55% gain year-to-date. Let’s take a closer look at five of them. Commonwealth Bank (ASX: CBA): Australia’s Banking Powerhouse That Keeps Delivering Source: CBA, weekly chart (2025) Commonwealth Bank of Australia (ASX: CBA) has been a long-standing star in our portfolio, clocking an impressive +149% return since we first recommended it. Even over the past year, it’s stayed firmly in stride. The bank’s first-half FY25 results showed just how resilient it is in the face of a slowing economy. Cash NPAT rose to $5.13 billion, up 2%, while Statutory NPAT climbed 6%. Strong volume growth and fewer loan impairments helped offset inflation-related cost pressures. With a robust capital base, CBA bumped up its interim dividend by 5% to $2.25 per share, fully franked. Ongoing share buybacks, now totalling around $9.3 billion, have added meaningful value for shareholders. Capital adequacy remains solid with a CET1 ratio of 12.2%, and despite stiff competition in lending and deposits, the bank kept its NIM stable at 2.08%. Loan quality continues to be a highlight, with low arrears and healthier consumer credit conditions, supported by rising home prices. We still see CBA as a high conviction buy. It’s Australia’s largest bank for a reason, market dominance, trusted brand, and consistent delivery even in tough times. Management is staying the course with sound execution, strong credit metrics, and a deposit-rich funding base. Meanwhile, investments in tech and customer experience are laying the groundwork for long-term advantage. The bank’s reliable capital return strategy, through dividends and buybacks, has been a key driver of performance and helps support the share price. While valuation concerns persist, we believe CBA’s quality, resilience, and ability to grow through cycles more than justify the premium. In our view, this is a franchise that continues to earn its spot in the portfolio. Stockland’s (ASX: SGP) Strategic Makeover: Doubling Down on Logistics, Master planned Communities, and Data Centre Ambitions While Keeping Growth on Track Source: SGP, weekly chart (2025) Stockland (ASX: SGP) has been quietly reshaping its future, and the results are starting to show. Since our recommendation, the stock has delivered a strong return, well ahead of the broader market. Its latest half-year results (1H25) came with a few timing quirks, mostly tied to settlement delays in its Master planned Communities (MPC) division and the late-stage completion of a major Lendlease portfolio acquisition. That caused a short-term dip in Funds from Operations (FFO), but it was expected. Beneath the surface, though, the business is in solid shape. Logistics was a standout, with double-digit FFO growth, while rental income from Communities surged. Even with a softer FFO headline, rental spreads were positive across Logistics, Workplace, and Town Centres. Management held the interim distribution steady and reaffirmed full-year guidance, indicating confidence. Balance sheet metrics stayed healthy, and the DRP is back on for this period. We continue to view Stockland as a high conviction buy. The strategic pivot towards high-growth areas like Logistics and MPCs is playing out well. That Lendlease deal significantly boosts the residential pipeline at just the right time in the cycle, and the logistics segment keeps delivering. The group’s knack for attracting top-tier capital partners, now spanning Logistics, Land Lease Communities, and possibly data centres, speaks volumes about the quality of the platform and its long-term prospects. Yes, this half had some earnings timing quirks, but the fundamentals are moving in the right direction. Stockland is actively recycling capital from mature assets and reinvesting into growth, including potentially high-return areas like data centres. It’s a well-managed, forward-thinking business, and we believe it remains well positioned to generate strong, sustainable returns over time. IVE Group (ASX: IGL) – Riding High on Smart Diversification, Strong Financials and Shareholder-Focused Strategy Source: IGL, weekly chart (2025) IVE Group (ASX: IGL) has delivered an impressive +19.32% return since entering our portfolio, with a solid +18% gain over the past year—highlighting consistent momentum and growing investor confidence. The company’s recent share performance reflects not only its strategic execution but also strong financial delivery. On top of that, IVE declared a fully franked interim dividend of 9.5 cents per share, aligned with its annual dividend target of 18.0 cents. The recently launched $10 million on-market buy-back further reinforces management’s conviction in the company’s intrinsic value, especially given the Board’s view that the share price currently offers significant value. The first half of FY25 saw earnings per share double to $0.17, and NPAT guidance was upgraded to a range of $47 million to $50 million, up from the previously forecast $45 million to $50 million. This strong result came despite mixed economic conditions and validates the group’s diversification push. IVE has successfully integrated Ovato and JacPak, extracting synergies while expanding into high-growth areas like packaging, third-party logistics, and now creative services through the acquisition of Elastic Group. The Brand Activations and 3PL segments are outperforming, offsetting softness in the data-driven communications and commercial printing areas. Meanwhile, losses from its Lasoo retail marketplace are narrowing, and packaging operations are expanding in Victoria and NSW. With solid operational momentum, a healthy balance sheet, and a shareholder-friendly capital return program, we continue to view IVE Group as a high-conviction, long-term buy. Northern Star Resources (ASX: NST) – Shining Bright with Triple-Digit Gains, Record Results, and a Game-Changing Gold Acquisition Source: NST, weekly chart (2025) Northern Star Resources (ASX: NST) has been a standout in our portfolio, delivering a massive +109% return since we first recommended it. Over the past year alone, the stock has continued to shine, climbing between +38% and +44%. The momentum has been backed by a string of strong operational and financial results. In the first half of FY25, the company delivered record revenue of $2.87 billion, a 28% increase year-on-year, with underlying EBITDA up 58% and statutory NPAT soaring 155%. Gold sales rose modestly, but the real boost came from a jump in realised gold prices, lifting average revenue per ounce to $3,562. Despite higher AISC at $2,105 per ounce, strong margins supported a record interim dividend and an active share buyback program. The acquisition of De Grey Mining also adds serious firepower to the growth story, with the world-class Hemi gold discovery now under Northern Star’s belt. We continue to view Northern Star as a high-conviction, long-term buy. Its portfolio of large-scale, long-life gold assets in Tier 1 jurisdictions, Western Australia and Alaska, positions it as a top-tier global gold miner. The De Grey acquisition is a game-changer, adding depth to its resource base and a clear path for production growth over the coming decade. Even after such strong share price gains, we see further upside supported by strong free cash flow, disciplined capital management, and a clear growth pipeline. Management’s focus on shareholder returns is evident in both its growing dividend profile and continued buybacks. With a net cash balance and operational momentum, Northern Star is well-positioned to keep delivering for shareholders. Bisalloy Steel Group (ASX: BIS) – Niche Armour Steel Specialist Riding the Defence Wave with Strong Dividends and 32% Portfolio Gain Source: BIS, weekly chart (2025) Bisalloy Steel Group Ltd (ASX: BIS) has been a strong performer for us, delivering a return of +32.03% since it was added to the portfolio. While its share price traded in a relatively tight range over the past 12 months, broadly flat to mildly positive, it’s the recent momentum and improving fundamentals that have really stood out. The stock was added to the S&P/ASX All Ordinaries Index in March 2025, further raising its profile. Operationally, the 1H25 results highlighted the company’s resilience, with the Board declaring an 8.0 cent fully franked interim dividend. This followed a strong FY24, where Bisalloy posted a 21.7% lift in NPAT and returned capital to shareholders through both final and special dividends, 11.5 and 13.0 cents per share respectively, fully franked. We continue to view Bisalloy as a high-conviction, long-term buy. The company holds a leading position in the niche market for quenched and tempered steel, particularly in the armour-grade segment. With defence spending on the rise, Bisalloy’s strategic push into supplying steel for the US submarine program could be a major tailwind. Challenges remain, such as higher input costs and recent port disruptions, but its profitable offshore operations in Indonesia and Thailand offer diversification and support earnings stability. Strong dividend payments and underlying profitability make the investment case even more compelling, especially given the stock’s solid rebound and renewed investor interest following index inclusion. Conclusion: Confident Outlook Based on Strategic Conviction At Investor Pulse, we’re pleased to see the portfolio deliver a strong 9.7% return over the trailing twelve months, outperforming the ASX 200 by around 6%. It’s a clear endorsement of the active management strategy we’ve taken, with a focused conviction in a mix of growth, income, and mining names. Our core holdings continue to do the heavy lifting. Commonwealth Bank remains a standout for its market leadership and resilience. Stockland is gaining momentum with its strategic shift toward growth sectors, while IVE Group is showing how thoughtful diversification can unlock value. Northern Star Resources is establishing itself as a global leader in gold, and Bisalloy Steel Group adds unique exposure through its niche capabilities and defence sector potential. Looking into Q2 2025, there’s no shortage of external noise, especially around international trade policy, but we’re confident in the positioning of the portfolio. These aren’t just names we’ve held because of past results; our conviction stems from their strategic direction, operational strength, and ability to adapt to shifting market conditions. We’ll continue tracking both company-level execution and the broader macro picture, but the quality of these holdings gives us a strong base for sustained performance.