Data Insights

New highs and lows: Tabcorp, CSL and Resmed hit fresh 52-week lows this week

Tue 17 Oct 23, 11:58am (AEDT)
financial marketsasx screen
Source: Shutterstock

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

NWS

News Corp

$34.18

Discretionary

28.3%

ANZ

ANZ Group

$25.54

Financials

7.1%

PME

Pro Medicus

$82.21

Healthcare

61.5%

RMS

Ramelius Resources

$1.73

Materials

192.8%

ING

Inghams Group

$3.36

Staples

45.2%

UMG

United Malt

$4.98

Staples

67.1%

REA

REA Group

$155.88

Technology

37.3%

ORG

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
ANZ 12-month price chart (Source: Market Index)

Stocks at 52-week Lows

Ticker

Company Name

Close Price

Sector

1 Year

TAH

Tabcorp

$0.91

Discretionary

-1.8%

SGR

The Star Entertainment

$0.61

Discretionary

-72.9%

CNI

Centuria Capital

$1.30

Financials

-10.9%

MFG

Magellan Financial

$6.68

Financials

-30.1%

CSL

CSL

$240.44

Healthcare

-12.0%

RMD

Resmed Inc

$22.18

Healthcare

-34.1%

QAN

Qantas

$4.91

Industrials

-15.8%

AMC

Amcor PLC

$13.85

Materials

-16.8%

CHN

Chalice Mining

$2.04

Materials

-44.9%

IGO

IGO

$11.58

Materials

-18.9%

MIN

Mineral Resources

$62.30

Materials

-7.5%

GOZ

Growthpoint Properties

$2.10

Real Estate

-27.3%

LLC

Lendlease

$6.64

Real Estate

-13.4%

A2M

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."

TAH
Tabcorp 12-month price chart (Source: Market Index)

 

Written By

Kerry Sun

Content Strategist

Kerry holds a Bachelor of Commerce from Monash University. He is an avid swing trader, focused on technical set ups and breakouts. Outside of writing and trading, Kerry is a big UFC fan, loves poker and training Muay Thai. Connect via LinkedIn or email.

Get the latest news and insights direct to your inbox

Subscribe free