Rudi’s View: Best Buys & Smaller Cap Favourites

This story features RIO TINTO LIMITED, and other companies. For more info SHARE ANALYSIS: RIO

Today’s update includes:

–Dividend Investing, The Smart Way
-Focus On 2025
-Best Buys & Conviction Calls

By Rudi Filapek-Vandyck, Editor

Dividend Investing, The Smart Way

Back in 2011, I researched and wrote up a case study comparing retailer David Jones to Super Cycle Beneficiary Rio Tinto ((RIO)) and asked investors the following question:

You are allowed to go back ten years but you can only buy one of these two and you have to hold the shares for the full ten years, which one do you choose?

Most investors would choose Rio Tinto, of course, and take the underperforming option. As it turned out, David Jones paid out Rio Tinto’s total return in dividends over that period, with the capital appreciation, which was significant, the proverbial cherry on top.

The ‘secret’ is to find a decent dividend paying company that has a lot of growth potential while cyclical companies like Rio Tinto, well, they are cyclical with lots of ups and downs along the way, even when supported by a Super Cycle.

Not everyone might have understood the message at the time, but the key lesson for investors is to not solely focus on the ‘yield’ that is on offer, but equally consider the quality and reliability of earnings that support the dividend, as well as ‘growth’.

Investors in Australia, on my observation, often forget to pay attention to growth.

The key lessons from that exercise were later applied to the local banking sector in an FNArena Special Report titled Dividend Investing, The Smart Way which is available for paying subscribers via the Special Reports section on the website: https://fnarena.com/index.php/analysis-data/special-reports/

The reason as to why I am remembering all of this is because analysts at Wilsons published a similar case study this week, comparing TechnologyOne ((TNE)) with National Australia Bank ((NAB)) and the numbers are equally surprising.

Back in 2009, Wilsons recalls, both stocks looked cheaply valued offering a yield of circa 5%, but one was a great buy and the other not so. Investors who bought $100,000 worth of TechOne shares 15 years ago and held on to them up until today would have received the princely sum of $25,000 in dividends just this year.

Those who put that money into NAB shares instead saw the bank paying out no more than $6000 in 2024.

The difference is because one has had consistent double-digit growth over that period, the other has had hardly any growth. Compare the pair, as they say.

Taking the lessons from that exercise on board, Wilsons has screened the ASX for the better dividend investments a la TechOne instead of NAB, starting with a minimum grossed up yield greater than 3% on FY27 forecasts.

That screening led to the following 18 companies, which does include a number of cyclicals (but then Wilsons’ horizon only stretches out to FY27):

-Santos ((STO))
-HealthCo REIT ((HCW))
-Super Retail ((SUL))
-Telstra ((TLS))
-ANZ Bank ((ANZ))
-Rural Funds Group ((RFF))
-Collins Foods ((CKF))
-South32 ((S32))
-Coles Group ((COL))
-Ridley Corp ((RIC))
-Worley ((WOR))
-Transurban ((TCL))
-Steadfast Group ((SDF))
-The Lottery Corp ((TLC))
-Scentre Group ((SCG))
-Sandfire Resources ((SFR))
-Macquarie Group ((MQG))
-Car Group ((CAR))

In a different document, Wilsons strategists offered the following assessment of Australian equities for the year ahead:

“[…] the local sharemarket is at risk from over-optimistic valuations relative to the tepid growth outlook. We continue to focus on companies with company specific growth drivers (often global).”

Focus On 2025

‘Tis that time of the year when everybody who counts in the world of investing offers their educated guesstimates and outlook for the year ahead. This always opens up wide gaps between preferences and return projections as small differences (can) make significant impacts on forward projections.

As reported previously, this year in particular the gaps seem notoriously wide, depending on whether one forecasts significant stimulus from China, and by when, and whatever the views and expectations are for four more years of a revitalised Trump presidency.

Locally, the one crucial question remains when the RBA will –finally– deliver its first rate cut and how many can possibly follow next? Most economists are still prepared to forecast a better environment for household spending, also helped by falling inflation and the latest tax cuts (there will be an election too).

Strategists at T Rowe Price have chosen the glass-half-full approach, believing the US economy will be a net beneficiary in 2025 and the US share market, as a result, will broaden its momentum away from this year’s narrow leadership.

T Rowe Price in particular likes financials and industrials, sectors that have been historically undervalued on the asset manager’s assessment, with smaller caps also back on the radar. Emerging Markets, on the other hand, do not have the strategists’ blessing. Tariffs and a strong USD are too much to deal with right now.

In Australia, slow growth remains on the menu, but reduced spending by over-indebted state governments should take care of this year’s inflation resilience. Resilient inflation, however, might well prove next year’s problem in the US, which is why T Rowe Price portfolios are currently overweighted to cash.

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Next year’s outlook by ANZ Bank is built around three key assumptions:

-no economic recession as private sector balance sheets are healthy
-the Trump presidency will prove more disruptive than destructive
-China’s stimulus will remain largely structural

Plus equally important: the USD is now so excessively strong that more upside will remain limited, even with ongoing positive newsflow.

Putting it all together, Group Chief Economist and Head of Research Richard Yetsenga advises “Much like 2024’s interest rate purgatory, 2025 is likely to be about assessing the twists and turns rather than looking for one dominant theme”.

Here are next year’s key ingredients as far as ANZ Bank is concerned:

-A more modest central bank easing cycle, which is already priced in by bond markets
-Metals and energy likely to perform strongly in 2025 (as Trump’s plans for energy are facing headwinds)
-Tariffs and trade actions will inject volatility into commodity markets for which 2025 is likely to be a “volatile year”
-China’s structural slowdown poses headwinds for iron ore and coking coal but with limited downside to prices because of limited supply growth
-Gold is poised to rise, pulling other precious metals along

For Australia, ANZ is forecasting a “soft landing” with only two RBA rate cuts. The AUD is expected at US67c by year-end 2025.

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Strategists at Macquarie remain of the view that PE ratios have rallied too hard in 2024 and 2025 will, at the very least, see a small contraction in multiples, which means next year’s investment returns will be a lot more dependent on companies achieving actual earnings growth.

 Shorter term, Macquarie prefers a defensive focus in portfolios. As the world continues to rely on US consumers’ spending, US exceptionalism is likely to continue, hence Macquarie stays Overweight US equities.

Macquarie’s proprietary FOMO Meter is signalling investor sentiment has not been this bullish since 1990. Incidentally, risk appetite according to the S&P Global Investment Manager surveys is now the highest since April 2021.

The offset is the S&P500 might well post its strongest annual performance in 25 years by December 31.

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A sobering observation from Morgan Stanley: “Bond yields in China have declined to fresh lows for the year. What this suggests is that investors appear not to be convinced that the easing measures will reflate the economy.

“Sustainable reflation requires a sizeable fiscal expansion that is tilted towards supporting consumption.”

****

Stockbroker Morgans sees plenty of opportunities in beaten-down biotechnology stocks. The broker has pretty much spent the whole week past trying to seduce its clientele into considering taking up some exposure.

The suggestion made is to compile a basket of exposures, combining higher risk/more speculative options with lesser risk peers that should represent a higher degree of success.

Nominated among High Risk options are:

-Neurizon Therapeutics ((NUZ))
-Percheron Therapeutics ((PER))

To be combined with lesser risky options, such as:

-Dimerix ((DXB))
-Clarity Pharmaceuticals ((CU6))
-Opthea ((OPT))

Finally, a list of clinically validated options:

-EBR Systems ((EBR))
-Avita Medical ((AVH))
-Neuren Pharmaceuticals ((NEU))
-Imricor Medical Systems ((IMR))

****

RBC Capital organised a joint collaboration between consumer and retail research teams across the US, Canada, Europe, Asia and Australia to compile a global list of Top Picks for investors looking to expose their portfolio towards consumer spending and companies leveraged to it.

The end result has been a short list of ten stocks, like Chewy and Planet Fitness in the US, Ferrari in Italy and LVMH Moet Hennesy Louis Vuiton in France. Two ASX-listed companies made the list: Webjet Group ((WEB)) and Domino’s Pizza Enterprises ((DMP)).

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Jarden’s December update has reduced the broker’s number of Best Ideas from the circa 110 smaller cap companies covered (ex-AS100) to 18 from 20 previously.

The broker’s Emerging Companies’ Key Picks (in order of total shareholder return) are:

-Qualitas ((QAL))
-Universal Store Holdings ((UNI))
-SiteMinder ((SDR))
-Temple & Webster ((TPW))
-Nick Scali ((NCK))
-EVT Ltd ((EVT))

Since the last update, IPH Ltd ((IPH)) and AUB Group ((AUB)) are no longer included, and Qualitas has been added. Jarden only recently initiated coverage and clearly likes Qualitas’ prospects and potential.

The above are all picked by the broker’s Emerging Companies research team. The following stock picks have been selected by respective sector analysts:

-Champion Iron ((CIA))
-Domain Holdings Australia ((DHG))
-Genesis Energy ((GNE))
-Integral Diagnostics ((IDX))
-Ingenia Communities Group ((INA))
-Inghams Group ((ING))
-Karoon Gas ((KAR))
-Michael Hill International ((MHJ))
-Monadelphous ((MND))
-Pointsbet Holdings ((PBH))
-Pepper Money ((PPM))
-Telix Pharmaceuticals ((TLX))

Here, National Storage ((NSR)) has lost its inclusion since the prior update.

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Macquarie has updated its selection of best fundamental picks among quality mid-cap companies on the ASX:

-AUB Group ((AUB))
-Breville Group ((BRG))
-Ebos Group ((EBO))
-Flight Centre ((FLT))
-Fisher & Paykel Healthcare ((FPH))
-Integral Diagnostics ((IDX))
-Lovisa Holdings ((LOV))
-Nick Scali ((NCK))
-Megaport ((MP1))
-Monash IVF ((MVF))
-Propel Funeral Partners ((PFP))
-Pinnacle Investment Management ((PNI))
-Qualitas ((QAL))
-Reliance Worldwide ((RWC))
-Ventia Services ((VNT))

Best Buys & Conviction Calls

Ord Minnett’s lists of preferred stocks on the ASX :

CORE BLUE CHIP

-BlueScope Steel ((BSL))
-Brambles ((BXB))
-CSL ((CSL))
-Insurance Australia Group ((IAG))
-James Hardie ((JHX))
-Santos ((STO))\
-Telstra ((TLS))
-Westpac Bank ((WBC))

VALUE (INCOME)

-Dexus Convenience Retail REIT ((DXC))
-Medibank Private ((MPL))
-Metcash ((MTS))
-Qantas Airways ((QAN))
-Rio Tinto ((RIO))
-Vicinity Centres ((VCX))
-Ventia Services Group ((VNT))

SMALL CAPS

-Alliance Aviation ((AQZ))
-ARB Corp ((ARB))
-Cosol ((COS))
-Electro Optic Systems ((EOS))
-EQT Holdings ((EQT))
-GQG Partners ((GQG))
-Lindsay Australia ((LAU))
-Qoria ((QOR))
-Regis Healthcare ((REG))
-SiteMinder ((SDR))
-SRG Global ((SRG))
-Stanmore Resources ((SMR))
-Vault Minerals ((VAU))
-Waypoint REIT ((WPR))

GROWTH

-Aristocrat Leisure ((ALL))
-Hub24 ((HUB))
-Judo Capital ((JDO))
-Lynas Rare Earths ((LYC))
-Qube Holdings ((QUB))
-ResMed ((RMD))
-WiseTech Global ((WTC))
-Macquarie Group ((MQG))
-Xero ((XRO))

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RBC Capital‘s selection of Global Best Ideas in the Energy sector still includes Woodside Energy ((WDS)).

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Crestone‘s freshly updated Best Sector Ideas are an attempt to identify the best in breed business models for major industry group sectors for long-term oriented investors. Anticipated performance over the next three years is part of the key considerations.

The selection consists of 17 companies (no changes made since the prior update):

-Aristocrat Leisure ((ALL))
-Ampol ((ALD))
-APA Group ((APA))
-Beach Energy ((BPT))
-Brambles ((BXB))
-CSL ((CSL))
-Goodman Group ((GMG))
-IGO Ltd ((IGO))
-James Hardie Industries ((JHX))
-Lottery Corp ((TLC))
-Macquarie Group ((MQG))
-Metcash ((MTS))
-Monadelphous Group ((MND))
-REA Group ((REA))
-ResMed ((RMD))
-Suncorp Group ((SUN))
-Xero ((XRO))

Crestone’s selection of sustainable dividend growers consists of 22 names, with equally no changes made since the prior revision. Historically, the stock pickers remind investors, companies that grow dividends consistently can offer superior long-term return for those who own them.

-Amcor ((AMC))
-Ampol ((ALD))
-APA Group ((APA))
-Atlas Arteria ((ALX))
-Beach Energy ((BPT))
-BHP Group ((BHP))
-Car Group ((CAR))
-Coles Group ((COL))
-Dalrymple Bay Infrastructure ((DBI))
-Iress Ltd ((IRE))
-Lottery Corp ((TLC))
-Macquarie Group ((MQG))
-Metcash ((MTS))
-Mirvac Group ((MGR))
-Pro Medicus ((PME))
-QBE Insurance ((QBE))
-RAM Essential Services ((REP))
-ResMed ((RMD))
-Suncorp Group ((SUN))
-Tabcorp Holdings ((TAH))
-Telstra ((TLS))
-Westpac Banking ((WBC))

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Morningstar’s selection of Best Buys on the ASX consists of:

-IGO Ltd ((IGO))
-TPG Telecom ((TPG))
-Domino’s Pizza ((DMP))
-Bapcor ((BAP))
-Endeavour Group ((EDV))
-Santos ((STO))
-ASX Ltd ((ASX))
-Aurizon Holdings ((AZJ))
-Brambles ((BXB))
-Dexus ((DXS))
-SiteMinder ((SDR))
-APA Group ((APA))
-Fineos Corp ((FCL))
-Ramsay Health Care ((RHC))
-IDP Education ((IEL))

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Ord Minnett’s list of Conviction Calls:

-Alliance Aviation Services ((AQZ))
-ARB Corp ((ARB))
-Cosol ((COS))
-EQT Holdings ((EQT))
-Electro Optic Systems Holdings ((EOS))
-GQG Partners ((GQG))
-Lindsay Australia ((LAU))
-Qoria ((QOR))
-Regis Healthcare ((REG))
-SiteMinder ((SDR))
-SRG Global ((SRG))
-Stanmore Resources ((SMR))
-Vault Minerals ((VAU))
-Waypoint REIT ((WPR))

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Wilsons’ Australian Equity Focus Portfolio:

-CAR Group ((CAR))
-Aristocrat Leisure ((ALL))
-WEB Travel Group ((WEB))
-Lottery Corp ((TLC))
-Collins Foods ((CKF))
-Breville Group ((BRG))
-Santos ((STO))
-ANZ Bank ((ANZ))
-National Australia Bank ((NAB))
-Macquarie Group ((MQG))
-Westpac Bank ((WBC))
-Hub24 ((HUB))
-Steadfast Group ((SDF))
-CSL ((CSL))
-ResMed ((RMD))
-Telix Pharmaceuticals ((TLX))
-Worley ((WOR))
-Xero ((XRO))
-TechnologyOne ((TNE))
-BHP Group ((BHP))
-James Hardie ((JHX))
-Evolution Mining ((EVN))
-South32 ((S32))
-Metals Acquisition ((MAC))
-Sandfire Resources ((SFR))
-HealthCo Healthcare & Wellness REIT ((HCW))
-Goodman Group ((GMG))
-WiseTech Global ((WTC))

****

Wilsons Highest Conviction investment ideas:

-Santos ((STO))
-Car Group ((CAR))
-James Hardie
-Hub24 ((HUB))
-Aristocrat Leisure ((ALL))

Among Research Ideas, the following six names are seen as Long Term Growth ideas:

-Flight Centre ((FLT))
-Ridley Corp ((RIC))
-Universal Stores ((UNI))
-ARB Corp ((ARB))
-Neuren Pharmaceuticals ((NEU))
-Siteminder ((SDR))

For those with a more speculative mindset, Wilsons puts forward PYC Therapeutics ((PYC)). In the Resources sector, the choice is Beach Energy ((BPT)).

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Goldman Sachs’s APAC Conviction List includes Life360 ((360)) and Xero ((XRO)).

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The full list of UBS’s Most Preferred Best Stock Ideas:

In Resources:

-BlueScope Steel ((BSL))
-Newmont Corp ((NEM))
-Orica ((ORI))
-Origin Energy ((ORG))
-Rio Tinto ((RIO))
-Santos ((STO))

In Financials:

-AUB Group ((AUB))
-Dexus ((DXS))
-Medibank Private ((MPL))
-QBE Insurance ((QBE))
-Suncorp Group ((SUN))

Industrials:

-Brambles ((BXB))
-Car Group ((CAR))
-Coles Group ((COL))
-NextDC ((NXT))
-REA Group ((REA))
-Telstra ((TLS))
-Telix Pharmaceuticals ((TLX))
-Treasury Wine Estates ((TWE))
-Worley ((WOR))
-Xero ((XRO))

The list of Least Preferred exposures:

-APA Group ((APA))
-Aurizon Holdings ((AZJ))
-ASX ((ASX))
-Bank of Queensland ((BOQ))
-CommBank ((CBA))
-Cochlear ((COH))
-Domain Holdings Australia ((DHG))
-JB Hi-Fi ((JBH))
-Reece ((REH))
-Scentre Group ((SCG))

****

Morgan Stanley’s Macro+ Focus List in Australia is currently made up of:

-AGL Energy ((AGL))
-GPT Group ((GPT))
-James Hardie ((JHX))
-Santos ((STO))
-WiseTech Global ((WTC))

Plus:

-Aristocrat Leisure ((ALL))
-Car Group ((CAR))
-Macquarie Group ((MQG))
-Paladin Energy ((PDN))
-Suncorp Group ((SUN))

****

Morgan Stanley’s Australia Macro+ Model Portfolio is currently made up of the following:

-ANZ Bank ((ANZ))
-CommBank ((CBA))
-National Australia Bank ((NAB))
-Westpac ((WBC))

-Macquarie Group ((MQG))

-Suncorp Group ((SUN))

-Goodman Group ((GMG))
-GPT Group ((GPT))
-Scentre Group ((SCG))
-Stockland ((STG))

-Aristocrat Leisure ((ALL))
-CAR Group ((CAR))
-Domino’s Pizza ((DMP))
-The Lottery Corp ((TLC))
-Wesfarmers ((WES))
-WiseTech Global ((WTC))

-James Hardie ((JHX))

-Orica ((ORI))

-Coles Group ((COL))

-CSL ((CSL))
-ResMed ((RMD))

-AGL Energy ((AGL))
-Origin Energy ((ORG))
-Telstra ((TLS))
-Transurban ((TCL))

-BHP Group ((BHP))
-Newmont Corp ((NEM))
-Rio Tinto ((RIO))
-South32 ((S32))

-Paladin Energy ((PDN))
-Santos ((STO))
-Woodside Energy ((WDS))

****

Crestone’s selected list of Best Ideas in Australia:

-Ampol ((ALD))
-APA Group ((APA))
-Aristocrat Leisure ((ALL))
-Beach Energy ((BPT))
-Brambles ((BXB))
-CSL ((CSL))
-Goodman Group ((GMG))
-IGO Ltd ((IGO))
-James Hardie ((JHX))
-Macquarie Group ((MQG))
-Metcash ((MTS))
-Monadelphous Group ((MND))
-REA Group ((REA))
-ResMed ((RMD))
-Suncorp Group ((SUN))
-The Lottery Corp ((TLC))
-Xero ((XRO))

****

Stockbroker Morgans’ list of Best Ideas:

-Acrow ((ACF))
-ALS Ltd ((ALQ))
-Amotiv ((AOV))
-Beacon Lighting ((BLX))
-BHP Group ((BHP))
-Camplify Holdings ((CHL))
-Cedar Woods Properties ((CWP))
-ClearView Wealth ((CVW))
-CSL ((CSL))
-Dalrymple Bay Infrastructure ((DBI))
-Dexus Industria REIT ((DXI))
-Elders ((ELD))
-Flight Centre Travel ((FLT))
-GQG Partners ((GQG))
-HomeCo Daily Needs REIT ((HDN))
-Karoon Energy ((KAR))
-MA Financial ((MAF))
-Maas Group ((MGH))
-Mach7 Technologies ((M7T))
-NextDC ((NXT))
-PolyNovo ((PNV))
-QBE Insurance ((QBE))
-Qualitas ((QAL))
-Reliance Worldwide ((RWC))
-ResMed ((RMD))
-Rio Tinto ((RIO))
-South32 ((S32))
-Superloop ((SLC))
-The Lottery Corp ((TLC))
-Treasury Wine Estates ((TWE))
-Universal Store Holdings ((UNI))
-WH Soul Pattinson ((SOL))
-Woodside Energe ((WDS))

****

Macquarie Wealth‘s recommended Growth Portfolio:

-Goodman Group ((GMG))
-Seek ((SEK))
-Aristocrat leisure ((ALL))
-Northern Star ((NST))
-CSL ((CSL))
-Computershare ((CPU))
-NextDC ((NXT))
-Flight Centre ((FLT))
-Mineral Resources ((MIN))
-Cleanaway Waste Management ((CWY))
-Steadfast Group ((SDF))
-James Hardie ((JHX))
-ResMed ((RMD))
-Pexa Group ((PXA))
-Treasury Wine Estates ((TWE))
-Viva Energy ((VEA))
-Xero ((XRO))

Macquarie Wealth’s recommended Income Portfolio:

-Suncorp Group ((SUN))
-Telstra ((TLS))
-National Australia Bank ((NAB))
-Westpac Bank ((WBC))
-ANZ Bank ((ANZ))
-BHP Group ((BHP))
-CommBank ((CBA))
-Premier Investments ((PMV))
-Coles Group ((COL))
-Viva Energy ((VEA))
-Atlas Arteria ((ALX))
-Aurizon Holdings ((AZJ))
-APA Group ((APA))
-GPT Group ((GPT))
-Deterra Royalties ((DRR))
-Metcash ((MTS))
-Amotiv ((AOV))
-Charter Hall Retail REIT ((CQR))
-Amcor ((AMC))

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In December, Shaw and Partners released its 10 Best Ideas to benefit from the anticipated small caps’ revival in 2024:

-AIC Mines ((A1M))
-Austin Engineering ((ANG))
-FireFly Metals ((FFM)), previously AuTeco (AUT)
-Chrysos ((C79))
-Gentrack Group ((GTK))
-Metro Mining ((MMI))
-MMA Offshore ((MRM))
-Peninsula Energy ((PEN))
-ReadyTech Holdings ((RDY))
-Silex Energy ((SLX))

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Macquarie’s ASX Quality Compounders:

The highest quality compounders’ as identified by Macquarie quant research inside the ASX300:

-James Hardie ((JHX))
-Cochlear ((COH))
-REA Group ((REA))
-TechnologyOne ((TNE))
-ResMed ((RMD))
-Data#3 ((DTL))
-Pro Medicus ((PME))
-Jumbo Interactive ((JIN))
-PWR Holdings ((PWH))
-Netwealth Group ((NWL))
-Aristocrat Leisure ((ALL))
-Spark New Zealand ((SPK))
-Codan ((CDA))
-Clinuvel Pharmacauticals ((CUV))
-Redox ((RDX))

Given Macquarie’s research strong leaning on the past five years, with high barriers to match, the following 11 companies fell just outside the above list:

-Fisher & Paykel Healthcare ((FPH))
-Medibank Private ((MPL))
-Coles Group ((COL))
-The Lottery Corp ((TLC))
-Lovisa Holdings ((LOV))
-CSL ((CSL))
-IDP Education ((IEL))
-Pinnacle Investment Management ((PNI))
-ARB Corp ((ARB))
-Breville Group ((BRG))
-Johns Lyng ((JLG))

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Key Stock Picks for the year-ahead nominated by analysts at Bell Potter:

-Among listed investment companies (LICs); Australian Foundation Investment Company ((AFI)), Metrics Master Income Trust ((MXT)), and MFF Capital Investments ((MFF))

-Agriculture & fast moving consumer goods; Bega Cheese ((BGA)), Rural Funds Group ((RFF)), and Elders ((ELD))

-Technology; TechnologyOne ((TNE)), Gentrack ((GTK)), and REA Group ((REA))

-Diversified Financials; Perpetual ((PPT)), Regal Partners ((RPL)), and McMillan Shakespeare ((MMS))

-Real Estate; Dexus Convenience Retail REIT ((DXS)), HealthCo Healthcare & Wellness REIT ((HCW)), and GDI Property Group ((GDI))

-Retailers; Premier Investments ((PMV)), Universal Store Holdings ((UNI)), and Propel Funeral Partners ((PFP))

-Aerospace & Defence; Electro Optic Systems ((EOS)) and Austal ((ASB))

-Industrials; Brickworks ((BKW)), IPD Group ((IPG)), and Cleanaway Waste Management ((CWY))

-Healthcare; Telix Pharmaceuticals ((TLX)), Cyclopharm ((CYC)), Aroa Bioscience ((ARX)), MedAdvisor ((MDR)), and Neuren Pharmaceuticals ((NEU))

-Gold sector; Capricorn Metals ((CMM)) and Santana Minerals ((SMI))

-Base metals; Aeris Resources ((AIS)), Nickel Industries ((NIC)), and Mineral Resources ((MIN))

-Strategic Minerals; Alpha HPA ((A4N)), IperionX ((IPX)), and Liontown Resources ((LTR))

-Energy sector; Boss Energy ((BOE)) and Paladin Energy ((PDN))

-Mining services; Seven Group Holdings ((SVW)), Mader Group ((MAD)), and SRG Global ((SRG))

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Ord Minnett’s research analyst Athena Kospetas has communicated the following Key Preferred Ideas per sector:

Financials
-Westpac ((WBC))
-Judo Bank ((JDO))
-Insurance Australia Group ((IAG))
-Medibank Private ((MPL))
-nib Holdings ((NHF))
-Pinnacle Investment Management ((PNI))
-EQT Trustees ((EQT))

Resources
-Rio Tinto ((RIO))
-Newmont Corp ((NEM))
-Red 5 ((RED))

Energy & Utilities
-Santos ((STO))
-Strike Energy ((STX))
-AGL Energy ((AGL))

Healthcare
-ResMed ((RMD))
-CSL ((CSL))
-Regis Healthcare ((REH))

Consumer stocks
-Qantas Airways ((QAN))
-ARB Corp ((ARB))

Communication Services & Technology
-Xero ((XRO))
-Seek ((SEK))
-Telstra ((TLS))

Industrials
-James Hardie ((JHX))
-Brambles ((BXB))
-Alliance Aviation ((AQZ))
-SRG Global ((SRG))
-Qube Holdings ((QUB))

Real Estate
-Vicinity Centres ((VCX))
-Waypoint REIT ((WPR))

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Barrenjoey’s Top Picks:

-Insurance Australia Group ((IAG)) among financials, as well as GQG partners ((GQG)) and Westpac ((WBC))
-Xero ((XRO)), Pexa Group ((PXA)) and Dicker Data ((DDR)) in the technology sector
-Vicinity Centres ((VCX)) and Abacus Storage King ((ASK)) among REITs
-South32 ((S32)), Lynas Rare Earths ((LYC)) and Perseus Mining ((PRU)) among miners and Strike Energy ((STX)) in the oil&gas sector
-ResMed ((RMD))
-Metcash ((MTS))
-Aristocrat Leisure
-Reliance Worldwide ((RWC))
-Brambles ((BXB))
-Seven Group ((SVW))

My research and All-Weather stock selections are 24/7 available for paying subscribers: https://fnarena.com/index.php/analysis-data/all-weather-stocks/

(Do note that, in line with all my analyses, appearances and presentations, all of the above names and calculations are provided for educational purposes only. Investors should always consult with their licensed investment advisor first, before making any decisions.)  

P.S. I – All paying members at FNArena are being reminded they can set an email alert for my Rudi’s View stories. Go to My Alerts (top bar of the website) and tick the box in front of ‘Rudi’s View’. You will receive an email alert every time a new Rudi’s View story has been published on the website. 

P.S. II – If you are reading this story through a third party distribution channel and you cannot see charts included, we apologise, but technical limitations are to blame.

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A subscription to FNArena (6 or 12 months) comes with an archive of Special Reports (20 since 2006); examples below.

Find out why FNArena subscribers like the service so much: “Your Feedback (Thank You)” – Warning this story contains unashamedly positive feedback on the service provided.

FNArena is proud about its track record and past achievements: Ten Years On

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