New highs and lows: Tabcorp, CSL and Resmed hit fresh 52-week lows this week
ANZ shares hit a brief 52-week high despite the myraiad of concerns for the broader banking industry
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Mentioned
KEY POINTS
- The ASX 200's recovery from its October 4th low has led to fewer notable 52-week highs or lows this week
- ANZ reached a 52-week high despite growth concerns for the banking sector
- Tab shares hit a fresh 52-week low following a weaker-than-expected 1Q24 update but overall sentiment towards the stock remains positive due to potential earnings upside
Welcome back to the 52-week Series – A recap of ASX 200 stocks marking yearly highs and lows in the past week.
Last week's series flagged a major downturn for stocks, with almost a quarter of ASX 200 constituents falling to a new 52-week low. This weakness was led by:
Real Estate: 15 stocks from the sector hit a fresh yearly low as yields briefly rallied to levels not seen since 2006-07
Materials: 7 stocks from battery metals and packaging sub-sectors
Industrials: Yield sensitive names like Transurban and Atlas Arteria
The ASX 200 is now up around 3% from the 4 October low, leading to a bounce in previously underperforming stocks and sectors. As a result, there are fewer notable 52-week highs and lows this week.
52-Week Highs and Lows by Sector
Staples: 2 Highs, 1 Low
Materials, 1 High, 4 Lows
Healthcare: 1 High, 2 Lows
Discretionary: 1 High, 2 Lows
Financials: 1 High, 2 Lows
Technology: 1 High, 0 Lows
Utilities: 1 High, 0 Lows
Real Estate: 0 Highs, 2 Lows
Industrials: 0 Highs, 1 Low
Energy: 0 Highs, 0 Lows
Stocks at 52-Week Highs
Ticker | Company Name | Close Price | Sector | 1 Year |
|---|---|---|---|---|
News Corp | $34.18 | Discretionary | 28.3% | |
ANZ Group | $25.54 | Financials | 7.1% | |
Pro Medicus | $82.21 | Healthcare | 61.5% | |
Ramelius Resources | $1.73 | Materials | 192.8% | |
Inghams Group | $3.36 | Staples | 45.2% | |
United Malt | $4.98 | Staples | 67.1% | |
REA Group | $155.88 | Technology | 37.3% | |
Origin Energy | $9.28 | Utilities | 72.5% |
It's pretty surprising to see ANZ (ASX: ANZ) hit a brief 52-week high amid the wall of worries for the banking industry (lagged impact of sustained high interest rates, slowing credit growth, highly competitive environment, wage inflation etc.).
Macquarie placed the bank on its 'Conviction List' last month, upgrading the stock to a Buy with a $27.55 target price. Some of the key tailwinds for ANZ include:
An improvement in the profitability of the institutional division, with return on equity of 14% in 1H23, up from 7% in FY16
"We see further upside risk to ANZ Group returns from mix shifts in its Institutional division ... we still see current market competitive dynamics as a relative tailwind for Institutional NIMs."
"The stock is trading at a 29% discount to peers on 12-mo fwd PPOP, vs. 14% 15-yr average."
ANZ 12-month price chart (Source: Market Index)
Stocks at 52-week Lows
Ticker | Company Name | Close Price | Sector | 1 Year |
|---|---|---|---|---|
Tabcorp | $0.91 | Discretionary | -1.8% | |
The Star Entertainment | $0.61 | Discretionary | -72.9% | |
Centuria Capital | $1.30 | Financials | -10.9% | |
Magellan Financial | $6.68 | Financials | -30.1% | |
CSL | $240.44 | Healthcare | -12.0% | |
Resmed Inc | $22.18 | Healthcare | -34.1% | |
Qantas | $4.91 | Industrials | -15.8% | |
Amcor PLC | $13.85 | Materials | -16.8% | |
Chalice Mining | $2.04 | Materials | -44.9% | |
IGO | $11.58 | Materials | -18.9% | |
Mineral Resources | $62.30 | Materials | -7.5% | |
Growthpoint Properties | $2.10 | Real Estate | -27.3% | |
Lendlease | $6.64 | Real Estate | -13.4% | |
A2 Milk | $4.25 | Staples | -19.4% |
Tabcorp (ASX: TAH) surprised the market with a weaker-than-expected 1Q24 update. Overall wagering turnover fell 0.9% year-on-year and Group revenue was down 6.1%. While analysts were forced to cut their target prices, they generally remain positive on the outlook for Tabcorp.
"While the 1Q24 trading update is softer than expected, revenue and earnings trajectory in 1H24 remains dependent on 2Q24 given the timing of the Spring Racing Carnival," Morgan Stanley analysts said in a note last week.
"We maintain our Overweight rating on TAH based on the potential for significant earnings upside driven by 1) VIC license reset, 2) achievement (in part or in full) of OPEX reduction targets, and 3) potential digital market share gains."
Tabcorp 12-month price chart (Source: Market Index)
