ASX – Earnings Upgrade

ASX is among the best performing stocks within our ASX 100 model portfolio. The stock remains under current buy conditions and the earnings have been slightly upgraded, following the release of the March quarter trading data.

The upgrades were driven by stronger than expected ASX 24 derivatives activity. Volumes increased 11% on the same time last year, with a record month in March 2019.

Cash equities turnover was up 9% year-over-year.

At 26x earnings and 3.2% yield, the stock looks expensive but it does offer a relatively safe harbour.

 

 

ASX Ltd Has Reached The Buy Target

Last week we suggested a buy level for ASX Ltd near $58.00.

With yesterday’s low intraday print at $57.80, that downside buy target has been reached.

Also, with the share price sliding over 15% lower during the last month, internal momentum indicators are now oversold and a reversion higher looks likely.

At $58.00, the stock is on a forward yield of about 4%. We see the first level of resistance near $62.60 and up to $64.00 over the longer-term.

ASX Limited

Quality On Sale – LLC, ASX, CSL & ALL (Video Link)

Lendlease, ASX, CSL and Aristocrat are names that we covered in Monday’s Opportunities in Review webinar.

Again, we draw your attention to these high quality businesses that have seen a recent correction in their share price.

We believe these names are close to finding support and should be the focus of establishing entry conditions. Watch the short-term momentum indicators for a reversal higher.

Click below to watch the short two minute video

 

 

ALGO Buy Signal For ASX Limited

Our ALGO engine triggered a buy signal for ASX Ltd into yesterday’s close at $62.57.

This “higher low” pattern is referenced to the intra-day low of $61.90 posted on June 14th.

Since reaching an all-time high of $68.90 on August 17th, the share price has slipped close to 8% lower.

We see solid technical support for the stock at $62.00 and initial chart resistance in the $66.20 area.

ASX Limited

 

ASX announced 1H18 Earnings

ASX announced 1H18 core earnings of A$230m, which is ahead of market expectations.

Revenue grew by 6% and we have the stock now trading on a forward dividend yield into FY19 of 4.1%.

Underlying EPS growth has been upgraded to 5 -6% and full year dividend is $2.15, fully franked.

ASX is in the ASX Top 50 model portfolio.

ASX:ASX

 

Buy ASX Shares Ahead of Earnings Result

ASX reports its half-year earnings on the 15th of February.

The consensus expectations are for NPAT to increase by 4% to $220 million and the company to declare a interim dividend of $1.03.

This places ASX on a forward yield of 3.7% and we see upside potential in the stock.

 

ASX – Second Half Activity Trends

Weaker than expected activity trends in June led to small earnings downgrades by most analysts.

We are now forecasting flat year over year revenue growth.

ASX is trading on 24x forward earnings which seems  excessive considering the low growth outlook.

Charts – ASX