Icarus Signal New Entries For Today

This story features REA GROUP LIMITED. For more info SHARE ANALYSIS: REA

Daily update on share prices and consensus price targets.

By Rudi Filapek-Vandyck

ARB Corp ((ARP)) is one truly stand-out amongst listed industrial companies in Australia. The supplier of bull bars and other accessories for Aussie blokes and their cars reported a double digit increase in earnings per share for the year ended in June, but even more important is the fact that market expectations are the exercise will be repeated in years ahead. Dividends are expected to grow solidly at the same time.

One only has to observe the share price since the FY11 release in August for confirmation that the opening sentence of today's Icarus Signal update is a widely held view across the Australian share market. That is in the same breath the core problem investors are facing today. One quick look at the price chart below suggests ARP shares are no longer cheap, to put it mildly. Trading on a one year forward looking Price Earnings ratio of 15 the corresponding dividend yield is but a paltry 3%, which doesn't exactly make the stock an attractive offering right now.

Is ARB Corp a solid, well-managed company carried by solid looking growth prospects? Yes, it is. But there's a price for everything and right now Icarus is warning investors with interest might have to wait for better entry points.

A similar conclusion can be drawn regarding Metcash ((MTS)) whose share price has now surged above the consensus price target. What exactly investors are trying to prove by pushing up Metcash shares this high is anyone's guess. Stockbroking analysts have made it quite clear they are not prepared to lift their targets or earnings forecasts any higher in the short term.

There are now 12 stocks trading close but below target, including newcomers Sunland Group ((SDG)), REA Group ((REA)), Foster's ((FGL)) and Charter Hall Retail ((CQR)), plus the above mentioned ARB Corp. Note that both Foster's and Charter Hall Retail are carried by take-over action.

22 stocks are trading above target, including the above mentioned Metcash and Austar ((AUN)), which is yet another take-over candidate.

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

Stocks <3% Below Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 SDG $ 0.70 $ 0.70 0.72% 2 ARP $ 8.55 $ 8.70 1.75% 3 REA $ 12.83 $ 13.14 2.39% 4 FGL $ 4.87 $ 5.00 2.59% 5 CQR $ 3.24 $ 3.33 2.81%

Stocks Above Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 MTS $ 4.22 $ 4.21 – 0.33% 2 AUN $ 1.21 $ 1.20 – 0.99%

Top 50 Stocks Furthest from Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 OTH $ 0.42 $ 1.50 257.14% 2 PPX $ 0.10 $ 0.34 237.00% 3 CVN $ 0.16 $ 0.50 212.50% 4 ACL $ 0.37 $ 1.06 186.49% 5 KAR $ 3.28 $ 9.18 179.76% 6 PLA $ 0.23 $ 0.62 175.56% 7 NCR $ 0.29 $ 0.78 173.68% 8 RES $ 0.56 $ 1.45 161.26% 9 SLX $ 2.91 $ 7.54 158.93% 10 IFN $ 0.24 $ 0.60 151.67% 11 TXN $ 0.57 $ 1.33 135.40% 12 BTA $ 0.87 $ 1.98 127.59% 13 SMR $ 0.90 $ 2.03 126.82% 14 WEC $ 1.92 $ 4.30 124.54% 15 NXS $ 0.24 $ 0.51 111.67% 16 BND $ 0.88 $ 1.80 105.71% 17 GNM $ 0.25 $ 0.50 105.31% 18 HST $ 0.11 $ 0.22 104.76% 19 IVA $ 1.53 $ 3.10 103.28% 20 TSM $ 0.50 $ 1.02 103.00% 21 RFX $ 1.02 $ 2.04 100.99% 22 KGL $ 0.11 $ 0.22 100.00% 23 IAU $ 1.31 $ 2.60 98.47% 24 AVG $ 0.30 $ 0.58 96.61% 25 IPD $ 0.59 $ 1.14 94.87% 26 LNC $ 1.95 $ 3.75 92.80% 27 HFA $ 0.81 $ 1.56 92.59% 28 BOL $ 0.26 $ 0.49 92.16% 29 TIS $ 0.50 $ 0.95 90.00% 30 BSL $ 0.77 $ 1.44 88.37% 31 QRX $ 1.29 $ 2.38 84.50% 32 AJA $ 2.15 $ 3.93 82.79% 33 AQP $ 3.41 $ 6.20 81.82% 34 MPO $ 0.64 $ 1.15 79.69% 35 TAP $ 0.67 $ 1.19 76.87% 36 PEM $ 0.61 $ 1.05 72.13% 37 HZN $ 0.26 $ 0.44 71.76% 38 PGA $ 0.04 $ 0.06 71.43% 39 GBG $ 0.66 $ 1.12 70.53% 40 DTE $ 0.71 $ 1.20 69.01% 41 HGO $ 0.26 $ 0.43 68.63% 42 CSV $ 0.83 $ 1.37 65.45% 43 GRR $ 0.54 $ 0.89 64.44% 44 RQL $ 0.52 $ 0.86 64.42% 45 KSC $ 1.26 $ 2.06 63.49% 46 HTA $ 0.06 $ 0.10 62.71% 47 AWE $ 1.11 $ 1.80 62.52% 48 KGD $ 1.57 $ 2.55 62.42% 49 GNS $ 0.21 $ 0.32 57.56% 50 COK $ 0.42 $ 0.66 57.14%

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