14 May 2025
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Trying to play tariff roulette and pick up a bargain before the price roars back into the green? We’ve got a few picks you might be interested in right now.
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Speaking to Switzer Investing TV on Monday night, Jun Bei Liu of TenCap revealed what she’s looking at right now that’s still going for a bargain on the market.
So, which companies haven’t yet recovered from their tariff-driven sell-off? “Plenty,” says Jun Bei Liu.
It’s an Aussie brand approaching its 100-year anniversary, and Breville has a lot to celebrate. And according to Jun Bei of TenCap, some of its biggest wins might still be yet to come.
Breville toasted to all-time highs in its share price as recently as January/February 2025 when it hit $39 a share. Tariff tumbles saw it crash down to $25.32 a share in April, however. But Jun Bei Liu says it shows promise thanks to strong underlying performance.
The company’s half-yearly results - issued in February 2025 - showed it grossing a whisker shy of $1 billion in revenue, up 10% growth year-on-year and beating analyst expectations of just over $900 million.
From that it also showed healthy net profit, up just over 16% to $97.5 million. Add that to the pile of $19 million it’s currently sitting on too.
Meanwhile it’s doing the work to diversify its supply chain to stave off the pressure of tariffs once they are finalised. The move will see Breville reduce its exposure from 40% down to 10% by January 2026.
It’s also going hell-for-leather on the home coffee craze to make itself a leader in the space. Its machines are being noticed globally, with sales from Asia, the Americas and Europe delivering double-digit growth.
However, it is trading at a high P/E ratio of around 31.2, so you’re paying a premium for the company’s stock (and its coffee machines if you’ve seen the prices). It isn’t excessively high compared to the broader consumer discretionary sector but it is double what you’d find from the likes of JB Hi-Fi for example, which also just delivered some pretty impressive results.
On the other hand, some analysts are tipping a price of over $40 if it were to make a recovery from the tariff hit. Remember to do your research here!
Yes, that Ansell. Despite what you probably first think of when the company is mentioned, it’s taken the world of PPE (personal protective equipment) for health, safety and more to the next level since its inception.
Jun Bei Liu points to Ansell as a company to take notice of based on its strong financial performance, recent strategic acquisitions in the PPE space and how it’s positioned for growth.
Despite being down to $31.80 from an all-time high of $37.77 a share in February, and a pre-Liberation Day price of $34.43, Ansell still has strong fundamentals, according to Jun Bei Liu.
Its 1H FY25 earnings showed that it’s up 30% on revenue to just over a billion dollars, and it’s just a staggering 184% in net profit to US55 million. It also raised its interim dividend by 34.5% as well as its full-year earnings guidance.
Ansell has also recently just completed a strategic acquisition of. Kimberly-Clark’s PPE unit for a tidy US$640 million which gives it a bigger product portfolio and positions it for growth in North America.
Like Breville, it’s also moving some of its production out of China and into other parts of Asia in a move to try and dodge tariff troubles.
Nope. Not that Fisher & Paykel. The other one: the healthcare one. Sure, you probably know Fisher & Paykel best from the kitchen section of your nearest appliance retailer, but that now belongs to Haier and has been delisted from the ASX.
Instead, Jun Bei is talking about Fisher & Paykel Healthcare (ASX: FPH). Although it’s a Kiwi outfit, FPH runs on the ASX and it’s down from January highs of almost $35 to $32.53.
It isn’t a significant delta, but that doesn’t mean it doesn’t have a bit of upside potential, according to analysts. It’s currently priced at a target of around $36.40 according to Morgan Stanley, at least.
It’s being driven by 10% increase in its revenues (up to $1.74 billion) as of its FY24 performance and a 6% increase ini its NPAT to just over $264 million. It’s also backed by its industry credibility as the maker some of the global healthcare industry’s best respiratory gear.
FPH is tipped to increase that revenue figure to potentially $2 billion when it reports on 28 May and increase that NPAT number to over $300 million according to its guidance. Much of its success, however, will hinge on trade talks between leaders, according to Jun Bei Liu of TenCap: “if there is a good trade outcome, perhaps the earnings [which had been downgraded recently] might get upgraded”.
And again, buyer beware on P/E alone. This is another one that is currently trading at a high P/E ratio of a slightly eye-watering 118.
Speaking of flow, Reliance has it in spades. Maybe not in the financial sense, but as a manufacturer of water flow and plumbing products, it knows its way around the pipes.
Jun Bei Liu calls it “interesting”: “the company has already given guidance based on a worst-case trade [deal] outcome…and [still] the share price is yet to recover. That’s where we see opportunity,” she surmised.
Reliance its currently attempting to siphon itself off from China and potential tariff impacts, targeting a 30% reduction in China-sourced products in FY25. Ultimately it wants to completely rid itself of tariff-impacted products by FY27.
Its reputation as a maker of quality products is also helping to offset price increases it’s having to make in the US market to offset higher cost of production. Meanwhile at the same time, it’s working to restructure in a bid to reduce costs across the business.
Reliance is a consistent revenue player, with strong cash flow and a history of strategic acquisitions under its tool belt. FY24 saw a slip in NPAT and only a modest increase in revenue, but it’s doing the work to increase margins and improve its market position.
It’s also currently sitting above its original Liberation Day price of around $4 a share at $4.59 a share, chasing that 52-week high price of just over $6.
Jun Bei Liu warns that these stocks aren’t instant slam-dunks for everyone.
She adds that the success and rise of these companies depends on - among other factors - more positive news around a potential US-China trade deal.
“We’re still speculating on the [final tariff] numbers - [Trump] has floated 80% or 40% - but any resolution is likely to be positive for the market, she said. Jun Bei added: We need to be cautious. We’re not going to go back to a no-tariff environment. Global growth is still slowing so any rally might reverse quickly.”
Breville, for example, currently makes around 90% of its products in China, Jun Bei highlights, and ships the vast majority of them to the North American market. That’s directly down the international superhighway currently being targeted by Trump’s tariff tactics.
Similarly, Ansell, Jun Bei Liu adds, is shifting its manufacturing out of Malaysia and Sri Lanka as they’re set to be hit by Liberation Day tariffs if they resume unchanged following Trump’s 90-day pause.
And finally she pointed out that Fisher & Paykel has downgraded its earnings on tariff moves, and is hoping for a “good trade outcome” before they’d be upgraded once again.
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