Rudi’s View: Eagers Automotive, Catapult, Fineos, Pro Medicus, Woolworths & More

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            [3] => ((MAQ))
            [4] => ((MP1))
            [5] => ((FMG))
            [6] => ((PNI))
            [7] => ((PME))
            [8] => ((CDA))
            [9] => ((NST))
            [10] => ((NCK))
            [11] => ((DTL))
            [12] => ((PMV))
            [13] => ((ALX))
            [14] => ((JBH))
            [15] => ((ANZ))
            [16] => ((TLS))
            [17] => ((WDS))
            [18] => ((RIO))
            [19] => ((WOW))
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            [22] => ((SHL))
            [23] => ((GPT))
            [24] => ((AMC))
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            [30] => ((AZJ))
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            [41] => ((AZJ))
            [42] => ((BAP))
            [43] => ((DMP))
            [44] => ((DXS))
            [45] => ((EDV))
            [46] => ((FCL))
            [47] => ((IEL))
            [48] => ((PLS))
            [49] => ((RHC))
            [50] => ((SDR))
            [51] => ((SPK))
            [52] => ((WDS))
            [53] => ((PME))
            [54] => ((TNE))
            [55] => ((CAT))
            [56] => ((APE))
            [57] => ((MQG))
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            [41] => AZJ
            [42] => BAP
            [43] => DMP
            [44] => DXS
            [45] => EDV
            [46] => FCL
            [47] => IEL
            [48] => PLS
            [49] => RHC
            [50] => SDR
            [51] => SPK
            [52] => WDS
            [53] => PME
            [54] => TNE
            [55] => CAT
            [56] => APE
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)

This story features GOODMAN GROUP, and other companies.
For more info SHARE ANALYSIS: GMG
The company is included in ASX20, ASX50, ASX100, ASX200, ASX300 and ALL-ORDS

Updates on Model Portfolios, Best Buys, Top Picks, Sector favourites and Conviction Buys.

By Rudi Filapek-Vandyck, Editor

Goldman Sachs’ Conviction

Not sure whether this says more about the Australian share market or about the analysts involved, but Goldman Sachs’ APAC Conviction list only includes two ASX-listed stocks: Goodman Group ((GMG)) and ResMed ((RMD)).

For context: that’s two out of 31, also including names such as Fujitsu, Hyundai Motors and TSMC.

Equally noteworthy, perhaps, is the corresponding selection for US equities currently does not contain any of the Mag7 or other popular AI names.

Instead, that selection of 24 includes Abbott Laboratories, Duke Energy, Johnson & Johnson, McDonald’s, and Walmart.

The European list has 24 companies on it, including Anheuser-Bush InBev, AstraZeneca, Deutsche Telekom, Philips, and Repsol.

RBC Capital vs Market Sentiment

Not that anyone seems to care locally (not at this point in time anyway) but the quarterly reporting season in the US is once again confirming demand for data centres remains strong and healthy.

Don’t take my word for it. That’s one key conclusion RBC Capital analysts sent to their clientele locally earlier today (on Thursday).

RBC Capital has grabbed the opportunity to repeat its Outperform ratings for NextDC ((NXT)), Macquarie Technology ((MAQ)) and Megaport ((MP1)).

The latter carries the extra Speculative tag. Respective price targets are $20, $95 and $18.

Morningstar Identifies Dividend Champions

What makes a superior dividend stock?

Morningstar’s attempt to answer that question this month offers a lot to ponder for Australian investors (always on the lookout for dividend and income).

The first attempt takes a longer-term perspective, backward-looking, and zooms in on growth and dividends accumulation over the ten years past.

Morningstar is correct in that such approach most likely reveals where investors could or would have maximised their income potential from the ASX, but there’s a very, very important catch.

Your typical yield-seeker is unlikely to own such stocks as they do not start off on a high and/or reliable yield.

Having said so, and it’s good to emphasise this, preferencing ‘growth’ over ‘high yield’ is indeed the superior investment approach, as also outlined in our very own Special Report, Dividend Investing, The Smart Way.

Paying subscribers can download this Special Report via the dedicated section on the website: https://fnarena.com/index.php/analysis-data/special-reports/

So, thanks Harry Hindsight, but very few income seekers (if any) would have owned Fortescue ((FMG)), Pinnacle Investment Management ((PNI)), Pro Medicus ((PME)), Codan ((CDA)) or Northern Star ((NST)) over the decade past.

Yet, these are the ‘strongest’ dividend stocks on the ASX for the past ten years on Morningstar’s assessment.

Others that score high are Nick Scali ((NCK)), Data#3 ((DTL)), Premier Investments ((PMV)), Atlas Arteria ((ALX)), and JB Hi-Fi ((JBH)).

In a second attempt, forward-looking, Morningstar’s research filters for corporate moats, a level of predictability (below average uncertainties), as well as diversification, and preferably a yield of at least 4% at today’s share price.

This time around the outcome includes a lot more familiar names for your average income seeking investor.

Morningstar’s Dividend Pick list (23 names in total):

• ANZ Bank ((ANZ))
• Telstra Group ((TLS))
• Woodside Energy ((WDS))
• Rio Tinto ((RIO))
• Woolworths ((WOW))
• ASX Ltd ((ASX))
• APA Group ((APA))
• Sonic Healthcare ((SHL))
• GPT Group ((GPT))
• Amcor ((AMC))
• Dexus ((DXS))
• Atlas Arteria ((ALX))
• Steadfast Group ((SDF))
• Endeavour Group ((EDV))
• AGL Energy ((AGL))
• Aurizon Holdings ((AZJ))
• Dyno Nobel ((DNL))
• Spark New Zealand ((SPK))
• Chorus ((CNU))
• Charter Hall Long Wale REIT ((CLW))
• Viva Energy ((VEA))
• Genesis Energy ((GNE))
• Deterra Royalties ((DRR))

Three of the inclusions fail the minimum 4% requirement, only offering 3.5% at the start;

• Woolworths
• ASX Ltd
• Steadfast Group

Turns out, in comparison with FNArena’s current consensus forecasts, Morningstar’s 3.5% starting yield seems optimistic for Woolworths, potentially understated for the local bourse, and in line with consensus for Steadfast.

See Stock Analysis on the website for the details.

Morningstar’s Best Stock Ideas

As of this month (October), Morningstar’s selection of Best Ideas for ASX-listed stocks consists of the following:

• AGL Energy ((AGL))
• Auckland International Airport ((AIA))
• ASX Ltd ((ASX))
• Aurizon Holdings ((AZJ))
• Bapcor ((BAP))
• Domino’s Pizza ((DMP))
• Dexus ((DXS))
• Endeavour Group ((EDV))
• Fineos Corp ((FCL))
• IDP Education ((IEL))
• Pilbara Minerals ((PLS))
• Ramsay Health Care ((RHC))
• SiteMinder ((SDR))
• Spark New Zealand ((SPK))
• Woodside Energy ((WDS))

For those not familiar with the methodology used at Morningstar, selections of Best Ideas are almost without exception inspired by assessments of ‘undervaluation’, regardless of specific reason or corporate quality involved.

That firm belief that ‘undervaluation’ will always see share prices revert back to a more appropriate valuation is why multiple stocks seemingly in a multi-year downtrend (or: continuously in struggle street) remain on the list (and often have been for a while).

Notable exceptions are Auckland International Airport, Fineos Corp, Pilbara Minerals and SiteMinder.

Bell Potter Is Nervous

This week’s strategy update by Bell Potter exhibits an above-average level of nervosity (at least on my reading).

If US equities finally have that long-awaited correction, the Australian market is most likely to participate “strongly” to the downside is the one forecast that stands out.

Outside of resources, there’s not much to smile about locally when it comes to earnings and growth, the report highlights, but that hasn’t stopped multiples from rising, and rising (and rising).

Bell Potter sees three potential triggers for such a correction:

–Sticky inflation keeps US rates higher for longer (sort of happened on Thursday)

-The AI market leadership wobbles or stumbles

-Problems in the credit market reveal themselves

Bell Potter has identified four quality stocks, all Hold-rated, that should see no impact on their earning growth, hence share price weakness can be treated as an opportunity (i.e. Buy on weakness):

• Pro Medicus ((PME))
• TechnologyOne ((TNE))
• Catapult Group ((CAT))
• Eagers Automotive ((APE))

Morgan Stanley Picks Macquarie

Macquarie Group’s ((MQG)) half-yearly update is scheduled for November 7 and analysts at Morgan Stanley worry the street (i.e. their colleagues elsewhere) has not sufficiently picked up that momentum has shifted to the second half.

That H2 skew happens as the timing of the recovery in global capital markets and in commodities revenues has arrived later than expected.

The consequence is Macquarie’s result release could potentially turn out a big ‘miss’ on current forecasts, even though management would still retain full year guidance.

Having said all of that, adjusted for Shield and public markets asset manager sale, Morgan Stanley’s FY26 earnings forecasts are circa 5% ahead of market consensus.

All shall be revealed on the 7^th.

Citi’s Reluctant Bulls

One quote to top it off:

“Over the past couple of weeks, we have met with clients both in the US and the Australasia region.

“We have been struck by the nagging concerns related to valuation, bubbles, credit and macros (i.e. labor).

“Yet, allocations to US large cap equities appear steadfast. Thus, the notion of reluctant bulls strikes us as appropriate for describing current investor mindset.

“On the one hand, we believe this sets up for a classic wall of worry to climb as supported by incremental fundamental data.

“On the other, we need to expect sharp reactions to the downside on perceived disappointments.”

Over in the US, Citi strategists suggest US equities will most likely rally into year-end.

Adding to their conviction is that, historically, whenever the share market return has been strong between January 1^st and October 31^st, this is most likely followed up with more positive returns in November-December.

More reading:

https://fnarena.com/index.php/2025/10/23/rudis-view-als-bega-coles-elders-light-wonder-lovisa-telix-more/

https://fnarena.com/index.php/2025/10/16/rudis-view-small-caps-quality-gold-balance-maximum-diversification/

(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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