Hot Stocks: WiseTech Global, Corporate Travel Management, Helia Group

Wall Street opened May on a strong note, with tech-led optimism lifting the Dow by 83.60 points to 40,752.96, the S&P 500 by 0.63% to 5,604.14, and the Nasdaq by 1.52% to 17,710.74—fully erasing its April losses. Robust earnings from Microsoft and Meta reignited enthusiasm for AI, with both firms beating expectations and lifting the tech sector over 2%. However, tariff pressures weighed on Amazon and Apple, with Apple warning of a US$900 million hit to costs and reporting weaker China sales, while Amazon issued a profit forecast below expectations. Economic signals remain mixed: jobless claims rose to 241,000 and GDP contracted 0.3% last quarter, raising the stakes for Friday’s payrolls report. WTI crude climbed 1.77% to US$59.24 on fresh Iran-related sanctions threats, and the Australian dollar sits at 63.83 US cents. ASX futures point to a 32-point decline.

Turning to some of the ASX companies making the news, logistics software firm WiseTech Global (ASX:WTC) confirmed Thursday evening it is participating in a strategic review process being conducted by US-based supply chain platform e2open, meaning e2open is exploring major structural options—potentially including a sale or merger. WiseTech has entered the process to evaluate a possible acquisition but stressed there is no certainty any transaction will result. The announcement follows earlier media reports linking WiseTech to takeover interest. WiseTech’s statement emphasised that it continually assesses opportunities in line with its global strategy and would keep the market informed if a deal materialises.

Corporate Travel Management (CTM) has downgraded its FY25 outlook, citing economic and tariff-related uncertainty in North America and Asia. The company now expects full-year revenue to be around 4% below previous forecasts, with EBITDA impacted by approximately $30 million relative to targets set in February. While growth in regions outside Europe has slowed, European performance remains on track. Notably, CTM has already secured new client wins exceeding $1.6 billion in total transaction value (TTV), well above its annual target of $1.0 billion. Client retention stands at 97%, and cash conversion remains strong at 80–90%. The company has repurchased 5.8 million shares ($78.2 million) under its buyback program, reducing its share count to about 140.5 million. The outlook assumes current conditions persist, with updated FY26 guidance expected in August.

Lenders mortgage insurance provider Helia Group reported strong results for the first quarter of 2025, lodging data with APRA showing a rise in gross written premium (GWP) to $51.0m from $38.4m a year earlier. This growth was driven by higher levels of high-LVR loans and increased market share, despite headwinds from the Home Guarantee Scheme (HGS) and lender self-insurance. Insurance service result rose to $79.2m, while net profit after tax increased to $68.2m. Claims were negative $14.4m due to reserve releases. The group’s capital position remained robust with a PCA ratio of 1.91x. Helia noted proposed policy changes from both major parties that would expand the HGS and reduce the role of Lenders Mortgage Insurance (LMI), which Helia and the Insurance Council of Australia criticised as financially destabilising. Helia will engage with government to seek policy modifications that preserve the LMI industry’s role in supporting home ownership.