Company Interview / John reckons these four stocks are getting their mojo back

Key points:

GYG’s Australian-focused “repair mission” and capital returns seen as supporting further upsideJames Hardie’s asset sales and buyback viewed as signalling undervaluation and core strengthMA Financial and Challenger highlighted for capital efficiency, growth and income potential

John Lockton from Sandstone Insights outlines a cautiously optimistic view on several ASX names this reporting season. On GYG (ASX:GYG), Lockton notes the market’s focus on same-store sales, which he characterises as mid-single digit and improving. He portrays the business as in “repair mode” after its US exit, with management prioritising Australia and more than 200 stores. He suggests the combination of ordinary and special dividends plus a buyback signals renewed confidence and potential upside if Australian store rollout avoids cannibalisation.

Turning to James Hardie (ASX:JHX), Lockton highlights stronger operating performance despite a challenging US housing backdrop. He points to the divestment of lower-returning European assets and a US$250 million buyback from over US$1 billion in proceeds as a shift towards higher-return core markets, arguing the board’s actions imply the stock is undervalued and still has room to rerate.

Lockton also flags MA Financial Group (ASX:MAF) and Challenger (ASX:CGF) as standouts. He notes MA Financial is down more than 60% from its peak yet guiding to mid-teens earnings growth at around 12–13 times earnings, while Challenger’s capital-light transition could release up to $2 billion in surplus capital, supporting further dividends and buybacks as the broader market eyes potential 2027 rate cuts.