ASX is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.
We see upside in ASX to $86.00, at which time investors should consider selling out-of-the-money call options to enhance the income return.
ASX goes ex-div $1.14 on 7 March.
For more information on the derivative strategy, please call our office on 1300 614 002.
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.
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.
Our Algo Engine triggered a buy signal in ASX recently and with the stock now moving into our targeted “value range”, we will begin accumulating.
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
Our Algo Engine generated a buy signal in ASX recently and we recommend to keep this name on your watch list.
Our target is for a sub $60.00 entry level, where we feel buying support will begin to build.
Our Algo Engine generated a buy signal in ASX and we’ve identified $60 as price support.
ASX provides a defensive 3.5% dividend yield and EPS growth is tracking at 5%+.
Look to accumulate near the $60 support level.
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 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 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.