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Investors should always be on the lookout for opportunities with S&P/ASX 200 Index (ASX: XKO) stocks, particularly ones that don’t always grab the headlines.
Little-known businesses can produce just as good returns as the most popular ASX growth shares, if those companies deliver on their potential.
The fund manager Wilson Asset Management recently outlined two exciting stocks that could be market-beaters from here. Let’s take a look at which ASX 200 shares the investment team likes.
Resmed CDI (ASX: RMD)
The business aims to raise awareness and assist with sleep apnea, chronic obstructive pulmonary disease (COPD), and other respiratory conditions. It helps people with cloud-connected CPAP devices and ventilators, as well as digital health technologies.
WAM noted that Resmed’s recent FY25 fourth quarter result was slightly ahead of expectations, with foreign exchange tailwinds and product mix driving improvements in the gross profit margin.
The FY26 guidance for the gross profit margin of between 61% to 63% was also “well above” what the market was expecting, supported by ongoing cost optimisation and product mix improvements.
WAM pointed out that the ASX 200 stock had performed well going into the result and also did well coming out of it too, with some profit margin expansion already priced in.
On the concerns of weight loss drugs leading to patient leakage because of the potential for Ozempic (and others) to be a first-line therapy, WAM said “there is not evidence of meaningful impact yet”.
WAM concluded:
If ResMed continues to deliver on its five-year plan, which includes high single-digit sales growth and operating leverage, its valuation is undemanding. ResMed continues to invest in sleep health, with wearables expected to be a tailwind over the coming years.
ALS Ltd (ASX: ALQ)
The other ASX 200 stock that WAM recently highlighted was ALS, a global leader in testing, inspection, certification, and verification services across a number of sectors, including commodities and life sciences.
WAM said the investment team attended ALS’ recent investor day in Perth last week where the business delivered a “robust” update for the first quarter of FY26. In that update, the business reaffirmed its guidance for organic revenue growth of between 5% to 7%, as well as profit margin expansion.
The fund manager said this update was supported by strengthening commodity tailwinds and increased miner financing activity.
A key takeaway for WAM was ALS’ strategic focus on higher-growth markets, while reinforcing its competitive edge in core segments where it holds a dominant market share. The fund manager also noted that digitisation and artificial intelligence (AI) were highlighted as medium-term drivers of the profit margin increase.
WAM concluded the following about the ASX 200 share:
With a strengthened balance sheet following a recent equity raise, ALS is well positioned to pursue earnings-accretive acquisitions. We remain constructive on the outlook and see potential upside to consensus earnings, with valuation appearing undemanding at this stage of the cycle.
