Icarus Signal New Entries For Today

This story features WORLEY LIMITED, and other companies. For more info SHARE ANALYSIS: WOR

Daily update on share prices and consensus price targets.

By Rudi Filapek-Vandyck

Underlying risk appetite is higher than would appear from daily movements in the Australian share market. I base this statement on the observation that buying interest has returned for stocks with a strong, solid growth profile. Take QR National ((QRN)), for example, or Campbell Brothers ((CPB)) and WorleyParsons ((WOR)). All three have been gaining steadily in recent weeks while the share market as a whole has merely treaded water.

Note also that Monadelphous ((MND)) shares have stopped falling in price. Already a full dollar has been added in recent sessions.

It's clear that those with an appetite to buy have re-discovered the resources services industry; all of the above names can be labeled as such. Add Fleetwood Corp ((FWD)) and AJ Lucas ((AJL)) which are both already trading above consensus target and I believe a clear case is being proved. Investors are seeking secure growth and they are finding it in the direct derivative of the China growth story, less so in the first instalment, which are the miners (though those share prices have been on the rise as well).

Note also that financial services provider Iress ((IRE)) is posting strong gains today on the back of a positive report out by Goldman Sachs. The stockbroker added Iress to its Conviction List, predominantly because of undervaluation. We already know Iress is a solid company with solid growth ahead, but sometimes we need to be reminded. Will Iress soon return to the list of stocks trading in the vicinity of the consensus target? If I had to take a bet, I'd say Monadelphous will probably get there first.

There are at this point in time, on the basis of yesterday's closing prices, 21 stocks trading close but still below consensus target and these include QR National, Campbell Bros and WorleyParsons, as well as Warrnambool Cheese ((WCB)) and Regis Resources ((RRL)). The list of stocks trading above target now numbers 31 stocks, including newcomers Equity Trustees ((EQT)), Computershare ((CPU)) and Photon Group ((PGA)).

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 WCB $ 4.00 $ 4.05 1.25% 2 RRL $ 3.19 $ 3.26 2.10% 3 WOR $ 28.16 $ 28.77 2.16% 4 QRN $ 3.34 $ 3.42 2.51% 5 CPB $ 47.78 $ 49.02 2.60%

Stocks Above Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 EQT $ 13.30 $ 13.17 – 0.98% 2 CPU $ 8.51 $ 8.42 – 1.07% 3 PGA $ 0.06 $ 0.06 – 6.25%

Top 50 Stocks Furthest from Consensus

Order Symbol Current Price($) Consensus Target($) Difference(%) 1 HIG $ 0.21 $ 0.35 66.67%

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