Rudi’s View: Amcor, Generation Development, Life360, Redox, Worley & More

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            [2] => ((360))
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            [4] => ((BSL))
            [5] => ((GDG))
            [6] => ((GLF))
            [7] => ((ILU))
            [8] => ((QUB))
            [9] => ((SEK))
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            [11] => ((AGL))
            [12] => ((AMC))
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            [24] => ((WOR))
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            [27] => ((PNI))
            [28] => ((GMG))
            [29] => ((CKF))
            [30] => ((TLX))
            [31] => ((SFR))
            [32] => ((TNE))
            [33] => ((WTC))
            [34] => ((ABB))
            [35] => ((SGP))
            [36] => ((AFG))
            [37] => ((JBH))
            [38] => ((DOW))
            [39] => ((TWE))
            [40] => ((NHF))
            [41] => ((WTC))
            [42] => ((SLC))
            [43] => ((OML))
            [44] => ((REA))
            [45] => ((ABB))
            [46] => ((NSR))
            [47] => ((RRL))
            [48] => ((DXS))
            [49] => ((MTS))
            [50] => ((PMV))
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            [57] => ((TWE))
            [58] => ((XRO))
            [59] => ((BRG))
            [60] => ((HVN))
            [61] => ((JBH))
            [62] => ((WES))
            [63] => ((GDG))
            [64] => ((HUB))
            [65] => ((WTC))
            [66] => ((NWS))
            [67] => ((LNW))
            [68] => ((WHC))
            [69] => ((WOR))
            [70] => ((WES))
            [71] => ((CSL))
            [72] => ((CBA))
            [73] => ((TLS))
            [74] => ((RIO))
            [75] => ((AIA))
            [76] => ((ASX))
            [77] => ((AZJ))
            [78] => ((BAP))
            [79] => ((DMP))
            [80] => ((DXS))
            [81] => ((EDV))
            [82] => ((FCL))
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            [84] => ((PLS))
            [85] => ((RHC))
            [86] => ((SDR))
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    [1] => Array
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            [0] => RDX
            [1] => BBN
            [2] => 360
            [3] => AMP
            [4] => BSL
            [5] => GDG
            [6] => GLF
            [7] => ILU
            [8] => QUB
            [9] => SEK
            [10] => TUA
            [11] => AGL
            [12] => AMC
            [13] => CWY
            [14] => WTC
            [15] => TLC
            [16] => CAR
            [17] => GPT
            [18] => JHX
            [19] => ORI
            [20] => STO
            [21] => SUN
            [22] => BXB
            [23] => TLC
            [24] => WOR
            [25] => ANZ
            [26] => RMD
            [27] => PNI
            [28] => GMG
            [29] => CKF
            [30] => TLX
            [31] => SFR
            [32] => TNE
            [33] => WTC
            [34] => ABB
            [35] => SGP
            [36] => AFG
            [37] => JBH
            [38] => DOW
            [39] => TWE
            [40] => NHF
            [41] => WTC
            [42] => SLC
            [43] => OML
            [44] => REA
            [45] => ABB
            [46] => NSR
            [47] => RRL
            [48] => DXS
            [49] => MTS
            [50] => PMV
            [51] => HVN
            [52] => AMC
            [53] => CSL
            [54] => PNI
            [55] => PWH
            [56] => SHL
            [57] => TWE
            [58] => XRO
            [59] => BRG
            [60] => HVN
            [61] => JBH
            [62] => WES
            [63] => GDG
            [64] => HUB
            [65] => WTC
            [66] => NWS
            [67] => LNW
            [68] => WHC
            [69] => WOR
            [70] => WES
            [71] => CSL
            [72] => CBA
            [73] => TLS
            [74] => RIO
            [75] => AIA
            [76] => ASX
            [77] => AZJ
            [78] => BAP
            [79] => DMP
            [80] => DXS
            [81] => EDV
            [82] => FCL
            [83] => IEL
            [84] => PLS
            [85] => RHC
            [86] => SDR
            [87] => SPK
            [88] => WDS
        )

)

List StockArray ( [0] => RDX [1] => BBN [2] => 360 [3] => AMP [4] => BSL [5] => GDG [6] => GLF [7] => ILU [8] => QUB [9] => SEK [10] => TUA [11] => AGL [12] => AMC [13] => CWY [14] => WTC [15] => TLC [16] => CAR [17] => GPT [18] => JHX [19] => ORI [20] => STO [21] => SUN [22] => BXB [23] => TLC [24] => WOR [25] => ANZ [26] => RMD [27] => PNI [28] => GMG [29] => CKF [30] => TLX [31] => SFR [32] => TNE [33] => WTC [34] => ABB [35] => SGP [36] => AFG [37] => JBH [38] => DOW [39] => TWE [40] => NHF [41] => WTC [42] => SLC [43] => OML [44] => REA [45] => ABB [46] => NSR [47] => RRL [48] => DXS [49] => MTS [50] => PMV [51] => HVN [52] => AMC [53] => CSL [54] => PNI [55] => PWH [56] => SHL [57] => TWE [58] => XRO [59] => BRG [60] => HVN [61] => JBH [62] => WES [63] => GDG [64] => HUB [65] => WTC [66] => NWS [67] => LNW [68] => WHC [69] => WOR [70] => WES [71] => CSL [72] => CBA [73] => TLS [74] => RIO [75] => AIA [76] => ASX [77] => AZJ [78] => BAP [79] => DMP [80] => DXS [81] => EDV [82] => FCL [83] => IEL [84] => PLS [85] => RHC [86] => SDR [87] => SPK [88] => WDS )

Other high conviction holdings include Collins Foods ((CKF)), Telix Pharmaceuticals ((TLX)), Sandfire Resources ((SFR)), Worley, TechnologyOne ((TNE)) and WiseTech Global ((WTC)).

Having said all that, Macquarie strategists spotted the early beginnings of a new positive uptrend with the broker’s EPS forecasts actually improving throughout September.

Macquarie, as indicated earlier, is looking for forecasts to rise throughout FY26, which underpins this broker’s positive outlook for the market.

Macquarie is expecting a net positive outcome from the upcoming AGM season with the team of quant analysts favouring Aussie Broadband ((ABB)), Stockland ((SGP)), Australian Finance Group ((AFG)), JB Hi-Fi ((JBH)) and Downer EDI ((DOW)) for positive market update (among others).

The same quant analysis has identified Treasury Wine Estates ((TWE)), nib Holdings ((NHF)) and WiseTech Global ((WTC)) for negative news (among others).

****

Strategists at UBS believe smaller cap Australian stocks remain circa -10% undervalued against the top class of the index which could open up the prospect of a larger-than-usual re-rate.

UBS has tried to identify industrial companies trading at relatively depressed valuations versus history and with a reasonable correlation to the Australian economic cycle (expected to improve).

Companies that fit the mould include Superloop ((SLC)), oOh!media ((OML)), REA Group ((REA)), Aussie Broadband ((ABB)), National Storage REIT ((NSR)), Rural Funds ((RRL)), Dexus ((DXS)), Metcash ((MTS)), Premier Investments ((PMV)), and Harvey Norman ((HVN)). 

****

Strategists at stockbroker Morgans have zoomed in on Quality stocks that have run into selling pressure of late and whose underperformance is now seen as an opportunity.

Morgans has highlighted Amcor ((AMC)), CSL ((CSL)), Pinnacle Investment Management ((PNI)), PWR Holdings ((PWH)), Sonic Healthcare ((SHL)), Treasury Wine Estates ((TWE)), and Xero ((XRO)).

****

Jarden has revisited its thesis that the backdrop for Australian consumer electronics companies is the most favourable it has been in years, and believes that conclusion still stands.

Positive factors include the replacement cycle post-covid, new home activity and new product development.

Most likely to benefit most in the two years ahead:

-Breville Group ((BRG))
-Harvey Norman ((HVN))
-JB Hi-Fi ((JBH))
-Officeworks ((WES))

****

The latest strategy update by Bell Potter has revealed the addition of Generation Development ((GDG)) to the Core Portfolio and the removal of Hub24 ((HUB)).

Platform operator Hub24’s share price has no doubt surprised both friend and foe over the twelve months past by roughly surging 70%.

Bell Potter’s investment case for Generation Development is predicated on exposure to structural tailwinds in the Australian superannuation and managed accounts sector, combined with the scalability of the business.

In communicating its top five top and bottom portfolio positions, the strategists are showing their current convictions.

Top Five Portfolio Exposures (Largest first):

-WiseTech Global ((WTC))
-News Corp ((NWS))
-Light & Wonder ((LNW))
-Whitehaven Coal ((WHC))
-Worley ((WOR))

Bottom Five Portfolio Exposures (smallest exposure first)

-Wesfarmers ((WES))
-CSL ((CSL))
-CommBank ((CBA))
-Telstra ((TLS))
-Rio Tinto ((RIO))

In general terms, Bell Potter strategists retain a positive outlook for Australian equities with RBA rate cuts expected to deliver an improving economic outlook that should, all else remaining equal, benefit mid and small cap companies in particular.

Elevated valuations for growth stocks in combination with the risk for stagflation in the US is seen as less favourable for equities generally.

****

Morningstar’s selection of Best Stock Ideas currently consists of:

-Auckland International Airport ((AIA))
-ASX ((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))

(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.)  

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