Buy Hold Sell: 5 solid results the market missed
We've seen some real whiplash market moves this reporting season. Take Megaport, for instance, which fell 21% in one trading day. Or Audinate, which fell 36% on its preliminary results. Or, on the other side of that, WiseTech, which soared more than 18% on its stellar report.
But what about the stocks that didn't move, or hardly moved at all - despite releasing solid results this reporting season?
In this episode of Buy Hold Sell, Centennial Asset Management's Matthew Kidman was joined by First Sentier Investors' David Wilson and Medallion Financial's Michael Wayne for their analysis of three stocks that did just that.
Plus, they named two solid results that believe could make major market moves in the next few months.
Note: This episode was recorded on Tuesday 27 August 2024. You can watch the video, listen to the podcast or read the edited podcast below.
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Edited Transcript
David, I'll start with you at the big end of town, Australia's biggest company, Everest-like valuations, but managed to put in a good result. Commonwealth Bank, buy, hold, sell?
Commonwealth Bank (ASX: CBA)
Michael Wayne (HOLD): It's very expensive, but it's really a cornerstone for a lot of people's portfolios and they are very much ahead of the other big four banks in terms of their investment in technology. So we expect them to keep muddling along without expanding that multiple any further.
HUB24 (ASX: HUB)
Matthew Kidman: All I've ever heard over the last five or six years, is that platforms are financially expensive but they keep going up. HUB24, buy, hold, or sell?
David Wilson (BUY): For us, it's still a buy. As Michael said, the margins are still going up. They've been a bit flat for a while, but we think they're going to accelerate over the next little while. Andrew Alcock and the team have done a great job there, and we continue to expect them to take market share from the incumbents. So for us, it's a buy.
Woodside Energy (ASX: WDS)
Michael Wayne (SELL): In relative terms, we think there are better alternatives in the energy space. Woodside has very low-cost, very high-quality assets, but where's the growth going to come from? The dividends are pushing towards the upper end of that payout ratio. There are a couple of assets that they're looking to sell, which will allow them to maintain that dividend. But energy companies, resource companies for dividend plays, we're not so sure. We prefer others in the area.
Michael's solid result primed for future gains - Light & Wonder (ASX: LNW)
Matthew Kidman: Okay. Now you can relax a bit and get a bit excited. Give us a pick on something that did have a great result and is going to go higher on the back of it.
David's solid result primed for future gains - AUB Group (ASX: AUB)
Matthew Kidman: David, I got the feeling you're not going to have a name anywhere near as exciting as that. But I think you've got a stock for us that reported nicely but didn't get the reaction straight away.
Matthew Kidman: I was right.
David Wilson: There you go. But actually, it gave double-digit guidance. It's really refining its UK strategy result. Again, beat expectations slightly, and we expect it actually to upgrade guidance through the year. We also like Light & Wonder as well. We have a slight preference for Aristocrat (ASX: ALL). But in answer to your question, AUB.Matthew Kidman: I can't believe I got three stocks out of you. You were only supposed to give us one.
Matthew Kidman: If you liked that show as much as me, give it a like. And also, don't forget, if you want this kind of content, which we all need in markets, don't forget to subscribe to YouTube and listen to our podcast.
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3 topics
6 stocks mentioned
3 contributors mentioned