Icarus Signal New Entries For Today

Daily update on share prices and consensus price targets.

By Rudi Filapek-Vandyck

What do Domino's Pizza ((DMP)), ARB Corp ((ARP)) and Walter Diversified Services ((WDS)) have in common? They're all good industrial companies with solid growth outlooks that have managed to capture the attention of investors in the Australian share market. Unfortunately, all three are too expensively priced and that is something investors might want to take into consideration.

How do I know they are too expensively priced? Icarus tells me.

Let's take Walter Diversified as an example (the other two are similar). The price chart below shows the stock has tried to rally past present price levels on two previous occasions since May, and every time failed. One could take the view that Mr Market had it right all along as the share priced surged above consensus target in May and again in July and that's exactly where today's target is located. So the market was right, just too early. But now that the target has moved up to $0.85 how much upside is there left?

The same question can be asked with regards to share prices for Domino's Pizza and ARB Corp. Time in the market generates a different result when the timing is right. Something longer term investors should keep in mind.

Meanwhile, the number of stocks trading close but below target has now been reduced to 10, including the above mentioned three companies. An interesting observation is also that yesterday's price action saw three mining services providers disappear from this list with Monadelphous ((MND)), Sedgman ((SDM)) and GR Engineering ((GNG)) all experiencing heavy selling pressure.

There are 12 stocks left trading above target, including Sigma Pharmaceutricals ((SIP)) for which stockbrokers will publish new targets and updates today.

The Bottom 50 welcomes Service Stream ((SSM)) and Lynas Corp ((LYC)).

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 TWE $ 3.36 $ 3.38 0.48% 2 DMP $ 6.90 $ 6.97 0.94% 3 WDS $ 0.84 $ 0.85 1.80% 4 MMX $ 0.55 $ 0.56 2.75%

Stocks Above Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 GOZ $ 1.92 $ 1.90 – 0.78%

Top 50 Stocks Furthest from Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 SSM $ 0.37 $ 0.69 86.49% 2 LYC $ 1.49 $ 2.52 69.90%

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