Rudi’s View: Woolies, CSL, Macquarie (& More)

Array
(
    [0] => Array
        (
            [0] => ((CAR))
            [1] => ((NXT))
            [2] => ((PME))
            [3] => ((REA))
            [4] => ((TNE))
            [5] => ((WOW))
            [6] => ((CSL))
            [7] => ((MQG))
            [8] => ((COL))
            [9] => ((EDV))
            [10] => ((RMD))
            [11] => ((AMC))
            [12] => ((COH))
            [13] => ((SHL))
            [14] => ((HLS))
            [15] => ((ACL))
            [16] => ((IDX))
            [17] => ((TLX))
            [18] => ((RHC))
            [19] => ((LYC))
            [20] => ((ILU))
            [21] => ((BHP))
            [22] => ((GLF))
            [23] => ((SEK))
            [24] => ((GLF))
            [25] => ((GMG))
            [26] => ((LYC))
            [27] => ((ALD))
            [28] => ((VEA))
            [29] => ((BPT))
            [30] => ((ORG))
            [31] => ((WDS))
            [32] => ((NGI))
            [33] => ((MFG))
            [34] => ((PPT))
            [35] => ((HUB))
            [36] => ((NWL))
            [37] => ((PNI))
            [38] => ((GMG))
            [39] => ((CHC))
            [40] => ((GPT))
            [41] => ((VCX))
            [42] => ((ARF))
            [43] => ((BWP))
            [44] => ((CIP))
            [45] => ((HDN))
            [46] => ((REP))
            [47] => ((WOR))
            [48] => ((CWY))
            [49] => ((VNT))
            [50] => ((DOW))
            [51] => ((AX1))
            [52] => ((STP))
            [53] => ((KGN))
            [54] => ((PFP))
            [55] => ((JBH))
            [56] => ((UNI))
            [57] => ((LOV))
            [58] => ((NCK))
            [59] => ((HVN))
            [60] => ((ABY))
            [61] => ((UNI))
            [62] => ((NCK))
            [63] => ((HVN))
            [64] => ((ABY))
            [65] => ((DMP))
            [66] => ((ING))
            [67] => ((GYG))
            [68] => ((GMD))
            [69] => ((GMG))
            [70] => ((360))
            [71] => ((RMD))
            [72] => ((AL3))
            [73] => ((BMN))
            [74] => ((BML))
            [75] => ((PEN))
        )

    [1] => Array
        (
            [0] => CAR
            [1] => NXT
            [2] => PME
            [3] => REA
            [4] => TNE
            [5] => WOW
            [6] => CSL
            [7] => MQG
            [8] => COL
            [9] => EDV
            [10] => RMD
            [11] => AMC
            [12] => COH
            [13] => SHL
            [14] => HLS
            [15] => ACL
            [16] => IDX
            [17] => TLX
            [18] => RHC
            [19] => LYC
            [20] => ILU
            [21] => BHP
            [22] => GLF
            [23] => SEK
            [24] => GLF
            [25] => GMG
            [26] => LYC
            [27] => ALD
            [28] => VEA
            [29] => BPT
            [30] => ORG
            [31] => WDS
            [32] => NGI
            [33] => MFG
            [34] => PPT
            [35] => HUB
            [36] => NWL
            [37] => PNI
            [38] => GMG
            [39] => CHC
            [40] => GPT
            [41] => VCX
            [42] => ARF
            [43] => BWP
            [44] => CIP
            [45] => HDN
            [46] => REP
            [47] => WOR
            [48] => CWY
            [49] => VNT
            [50] => DOW
            [51] => AX1
            [52] => STP
            [53] => KGN
            [54] => PFP
            [55] => JBH
            [56] => UNI
            [57] => LOV
            [58] => NCK
            [59] => HVN
            [60] => ABY
            [61] => UNI
            [62] => NCK
            [63] => HVN
            [64] => ABY
            [65] => DMP
            [66] => ING
            [67] => GYG
            [68] => GMD
            [69] => GMG
            [70] => 360
            [71] => RMD
            [72] => AL3
            [73] => BMN
            [74] => BML
            [75] => PEN
        )

)

This story features CAR GROUP LIMITED, and other companies.
For more info SHARE ANALYSIS: CAR
The company is included in ASX50, ASX100, ASX200, ASX300, ALL-ORDS and ALL-TECH

Updates on Conviction Calls, Best Buys and most favoured sector picks for the February results season.

By Rudi Filapek-Vandyck, Editor

This week I was yet again interviewed by James Marley at Livewire Markets, in a preview to February results, as has become an unofficial tradition in recent years.

The video of that interview will soon be made available via Livewire and YouTube.

My view expressed in this interview is the extreme polarisation that has characterised Australian equities in recent years has completely flipped with those segments previously not participating in positive share price momentum –materials and other cyclicals– now enjoying a raging Bull market.

The offset is those segments previously supporting major indices to all-time record highs are now in a prolonged and nasty Bear market. Segments impacted include Quality, Growth, Quality Growth, Technology and AI beneficiaries.

That’s pretty much everything trading on above-average PE multiples.

How long both newly established trends may continue is anyone’s guess; there are multiple factors and drivers in play, not in the least investor sentiment which is currently euphoric in one direction and extremely bearish towards today’s laggards.

I intend to zoom in on what is holding back shares in the likes of Car Group ((CAR)), NextDC ((NXT)), Pro Medicus ((PME)), REA Group ((REA)), TechnologyOne ((TNE)), and many others, in Monday’s Weekly Insights.

Three Laggards In Focus

Three larger cap names that find themselves under above average scrutiny this February reporting season are Woolworths Group ((WOW)),  CSL ((CSL)), and Macquarie Group ((MQG)).

All three have been rather disappointing for loyal shareholders and investors’ attention is focused on whether the long awaited operational turnaround is finally materialising.

Analysts are not so sure. Scrolling through the majority of February previews, the majority still expects Coles Group ((COL)) to continue outperforming its larger rival. The key question that as yet remains unanswered is whether Woolworths can muster enough positive pivot to lift general sentiment.

Previews are generally sitting on the fence, but at least sentiment and forecasts are not as bad as for prior offshoot Endeavour Group ((EDV)) which is multiple times listed as one key stock to keep avoiding this month.

General sentiment is a little more upbeat regarding CSL. One narrative going around the local market is that meeting expectations this time around might well be sufficient for local investors to re-embrace the previously can-do-no-wrong market leader of the local healthcare sector, but scepticism remains galore.

Six years post the covid outbreak and analysts’ hesitance in views and expectations for what had previously been the stand-out local sector over a long time is very much palpable.

ResMed ((RMD)) is hands down just about everybody’s sector favourite and its quarterly update on the final day of January did beat expectations generally.

This did not stop its share price from weakening after the initial rally. Not exactly what we, shareholders in this strong performer (over a very long time), want to see, is it?

In sharp contrast, the much cheaper priced shares in dual-listed packaging company Amcor ((AMC)) enjoyed a firm rally post a mere wishy-washy interim result that was predominantly positively received because it did not come with a downgrade to full-year guidance.

As far as notable signals go prior to the bulk of corporate results this month, this one might be the one to pay attention to. Double irony: ResMed’s result is the only one that clearly beat expectations thus far (out of eight, it’s early days).

FNArena’s Corporate Results Monitor: https://fnarena.com/index.php/reporting_season/

Cochlear ((COH)) has now equally built a legacy of repeated underwhelming financial updates, and analysts are cautious, if not negative ahead of February’s release. The general view is downright negative for Sonic Healthcare ((SHL)).

Apparently signals are all pointing to ongoing tough times for pathology services providers, which also includes Healius ((HLS)) and Australian Clinical Labs ((ACL)). Integral Diagnostics ((IDX)), on the other hand, is here and there highlighted for potential positive surprise.

Analysts at Citi reported a lot of interest among clients for Telix Pharmaceuticals ((TLX)) with investors apparently ready to jump on the register again once more clarity is achieved for TLX591. The general view remains the shares are a lot more worth than their current price.

Ramsay Health Care ((RHC)) is not completely forgotten about either, but investors want to know first what the future of Ramsay Sante looks like.

There have been times when previews for the healthcare sector were beaming with enthusiasm and strong growth projections, but no longer. Covid, Trump and inflation have left a lasting mark.

Macquarie stands out among the three with growing expectations of renewed operational mojo on the back of growing market share in Australia (mortgages and deposits), a growing pipeline of IPOs, capital raisings and M&A, and the revival in commodities.

The strenghtening AUD is an obvious headwind, but that hasn’t stopped the share price from recovering since its sell-off in October and November.

Conviction Calls and Best Ideas

Morgan Stanley has added Lynas Rare Earths ((LYC)) to its Asia Pacific ex Japan Thematic Focus List in replacement of Iluka Resources ((ILU)).

Other ASX-listed inclusions are

• BHP Group ((BHP))
• GemLife Communities ((GLF))
• Seek ((SEK))

Morgan Stanley also runs an Asia Thematic Focus List which includes the following:

• GemLife Communities ((GLF))
• Goodman Group ((GMG))
• Lynas Rare Earths ((LYC))

****

Ahead of February results, energy sector analysts at Morgan Stanley prefer Ampol ((ALD)) and Viva Energy ((VEA)); downstream over upstream.

Less preferred are Beach Energy ((BPT)) and Origin Energy ((ORG)).

****

Woodside Energy ((WDS)) is still included in RBC Capital’s Global Energy Best Ideas List.

****

UBS analysts have expressed their preferences among Asset & Wealth Managers in Australia.

Preferred names:

• Navigator Global Investments ((NGI))
• Magellan Financial Group ((MFG))
• Perpetual ((PPT))
• Hub24 ((HUB))

Not so preferred:

• Netwealth Group ((NWL))
• Pinnacle Investment Management ((PNI))

Having reviewed insurers and diversified financials generally, UBS is expecting to see earnings ‘beats’ from Navigator Global Investments, Magellan Financial, Perpetual, and Hub24.

****

UBS‘ desk of real estate analysts retains a positive view for the year ahead, irrespective of RBA rate hikes. 2026 is not a repeat of 2022, is their motto.

Buy-rated large cap names are:

• Goodman Group ((GMG))
• Charter Hall ((CHC))
• GPT Group ((GPT))
• Vicinity Centres ((VCX))

Buy rated small caps:

• Arena REIT ((ARF))
• BWP Group ((BWP))
• Centuria Industrial REIT ((CIP))
• HomeCo Daily Needs REIT ((HDN))
• RAM Essential Services Property Fund ((REP))

****

UBS‘s preference among engineers and contractors is with:

• Worley ((WOR))
• Cleanaway Waste Management ((CWY))
• Ventia Services ((VNT))

Peers at RBC Capital, however, prefer Downer EDI ((DOW)).

They recently downgraded Ventia Services on valuation grounds and also believe Monadelphous’ (MND)) result better be perfect, or else.

****

From Bell Potter:

“We have upgraded Australian equities from slightly underweight to neutral. While the RBA could hike rates further, our outlook for moderate domestic growth and a bull market in commodities provides index-level support.

“Elevated valuations keep us from getting more positive.”

Bell Potter’s retail sector analysts see the highest gross margin risk for:

• Accent Group ((AX1))
• Step One Clothing ((STP))
• Kogan ((KGN))

Deemed to be operating at noticeably lower risk:

• Propel Funeral Partners ((PFP))
• JB Hi-Fi ((JBH))
• Universal Store Holdings ((UNI))
• Lovisa Holdings ((LOV))
• Nick Scali ((NCK))
• Harvey Norman ((HVN))
• Adore Beauty ((ABY))

Key sector picks:

• Universal Store Holdings ((UNI))
• Nick Scali ((NCK))
• Harvey Norman ((HVN))
• Adore Beauty ((ABY))

Peers at RBC Capital recently downgraded Domino’s Pizza ((DMP)), Inghams Group ((ING)) and Guzman Y Gomez ((GYG)) to Underperform.

****

Shaw and Partners has highlighted the following from its Large Cap (ASX100) Portfolio:

• Genesis Minerals ((GMD))
• Goodman Group ((GMG))
• Life360 ((360))
• ResMed ((RMD))

Among Emerging Companies (smaller caps) the following Buy-ratings have recently been highlighted:

• AML3D ((AL3))
• Bannerman ((BMN))
• Boab Metals ((BML))
• Peninsula Energy ((PEN))

More reading:

https://fnarena.com/index.php/2026/02/04/rudis-view-many-february-uncertainties/

https://fnarena.com/index.php/2026/01/29/rudis-view-february-favourites-avoids/
https://fnarena.com/index.php/2026/01/22/rudis-view-key-picks-sector-favourites/
https://fnarena.com/index.php/2026/01/15/rudis-view-pre-february-top-picks-favourites/
https://fnarena.com/index.php/2025/12/24/rudis-view-best-buys-favourites-for-2026/

(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.)  

P.S. I – All paying members at FNArena are being reminded they can set an email alert for my Rudi’s View stories. Go to My Alerts (top bar of the website) and tick the box in front of ‘Rudi’s View’. You will receive an email alert every time a new Rudi’s View story has been published on the website. 

P.S. II – 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.

FNArena Subscription

A subscription to FNArena (6 or 12 months) comes with an archive of Special Reports (20 since 2006); examples below.

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.

FNArena is proud about its track record and past achievements: Ten Years On

Click to view our Glossary of Financial Terms