Icarus Signal New Entries For Today

This story features REA GROUP LIMITED, and other companies. For more info SHARE ANALYSIS: REA

Daily update on share prices and consensus price targets.

By Rudi Filapek-Vandyck

The beauty of the new tools and services we developed over the years is, in my view, that we (as in: investors) are now more able to predict when stockbrokers are going to change their recommendations. Don't forget, in its early days FNArena started off by registering which broker ratings had changed and that was all we did. It has been a fruitful journey, to say the least.

It is thus no surprise that Domino's Pizza ((BMP)), one of the stand-out performers in the August reporting season, has today received a recommendation downgrade. The stock had already landed on Icarus' radar as it started to look less and less value. The shares are still trading above consensus target, but maybe downgrades like today's might start calling in the earth's gravity?

Volatility and churn inside the various Icarus tables remains high. On Friday, David Jones ((DJS), Lycopodium ((LYL)), Aston Resources ((AZT)), Matrix Composites & Engineering ((MCE)), Regis Resources ((RRL)), REA Group ((REA)), Sedgman ((SDM)), Wotif.com ((WTF)) and Metcash ((MTS) all disappeared from the table of stocks trading close but still below target due to share price weakness. Most of these names (if not all of them) appear and disappear on Icarus radar on a regular basis. Warrnambool Cheese ((WCB)) was the only one that managed to move up into the table of stocks trading above target and that probably says enough: Warrnambool is not simply trading on PE or profit growth potential, there's take-over speculation in the air.

Target price changes pushed Resolute Mining (RSG)) and Treasury Wine Estates ((TWE)) from above consensus back to below consensus target, where both join Perseus Mining ((PRU)) and Charter Hall Retail ((CQR)). The latter is also driven by take-over action. Note how Perseus Mining's rally appears to be stalling, which would be a classic pattern for stocks that have run up too high, too rapidly. Within this context, we note there's no sign anymore of the likes of Campbell Brothers ((CPB)) and Iress ((IRE)), stocks that were regulars in daily Icarus Signal updates only weeks ago.

Then again, investors are being reminded stocks do not always respond immediately to Icarus Signal warnings. Cochlear ((COH)) is one such classic example, as are Envestra ((ENV)) and Monadelphous ((MND)). Note the middle one received a recommendation upgrade today.

There are now 17 stocks trading below but close to target and 19 others remain above target. In the Bottom 50, Australian Worldwide ((AWE)) has now re-joined, alongside Hillgrove Resources ((HGO)) and Alkane Exploration ((ALK)).

Investors should consider the information and data are provided for research purposes only.

Stocks <3% Below Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 CQR $ 3.25 $ 3.33 2.49% 2 PRU $ 3.61 $ 3.66 1.25% 3 RSG $ 1.56 $ 1.56 0.32% 4 TWE $ 3.35 $ 3.38 0.78%

Stocks Above Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 WCB $ 4.07 $ 4.05 – 0.49%

Top 50 Stocks Furthest from Consensus

Order Symbol Current Price($) Consensus Price($) Difference(%) 1 ALK $ 1.88 $ 3.04 61.70% 2 AWE $ 1.15 $ 1.80 56.87% 3 HGO $ 0.27 $ 0.43 62.26%

To see the full Icarus Signal, please go to this link

Technical limitations

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.

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.

Click to view our Glossary of Financial Terms