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Evening Wrap: ASX 200 slumps on escalating Mid-East conflict, but golden lining for war winners energy and gold stocks
Fri 04 Oct 24, 5:21pm (AEST)
Data Insights
The only new stock in the ASX 200's low P/E list
By
Hans Lee
Wed 27 Sep 23, 12:30pm (AEST)
Source: Shutterstock
Stocks in article
Key Points
- The ASX 200 has been range-bound for the last few months.
- The largest company with a P/E of under 10 remains Woodside Energy.
- Bluescope Steel is the only new entrant, and is itself a returnee.
It's been a range-bound time for the ASX 200. The ASX 200 has not fallen below 7,000 since the end of March while the index has not recorded a closing price above 7,500 since February. This has proved that active stock picking has been the differentiator in recent months. But finding new investment ideas with structural storylines and trading at depressed valuations is not an easy task.
The perfect case in point is the Market Index Low P/E scan. Last month, there were 38 stocks on the All Ordinaries list. This month, we've changed the list so that it's only the ASX 200. This reduces the number from 38 to 26.
But even as we've limited the range of stocks, there is only one (major) change to last month's list - reflecting how range-bound this market is without a catalyst.
In this piece, we'll look at the changes to this scan in more depth.
Ticker | Company | Last | 1-Year | PE |
|---|---|---|---|---|
WHC | Whitehaven Coal | $7.02 | -16.9% | 2.3 |
CRN | Coronado Global | $1.90 | 25.0% | 4.7 |
GNC | Graincorp | $7.05 | -10.7% | 4.8 |
CIP | Centuria Industrial | $3.06 | 17.5% | 5.0 |
NHC | New Hope Corporation | $6.22 | 8.6% | 5.1 |
PLS | Pilbara Minerals | $4.15 | -11.4% | 5.4 |
PRU | Perseus Mining | $1.66 | 19.0% | 5.5 |
KAR | Karoon Energy | $2.50 | 37.1% | 5.6 |
VUK | Virgin Money UK | $3.20 | 40.4% | 5.7 |
QAN | Qantas Airways | $5.13 | 0.1% | 5.7 |
WAF | West African Resources | $0.80 | -19.2% | 5.9 |
BKW | Brickworks | $25.96 | 22.6% | 6.2 |
WDS | Woodside Energy | $36.20 | 18.0% | 6.7 |
ILU | Iluka Resources | $7.78 | -13.5% | 7.8 |
SPK | Spark New Zealand | $4.45 | -0.5% | 7.9 |
ELD | Elders | $5.95 | -50.2% | 7.9 |
IPL | Incitec Pivot | $3.14 | -7.3% | 8.0 |
NSR | National Storage | $2.17 | -1.8% | 8.5 |
FMG | Fortescue | $20.33 | 20.8% | 8.6 |
HVN | Harvey Norman | $3.90 | -5.3% | 9.0 |
BSL | Bluescope Steel | $19.10 | 25.5% | 9.0 |
BPT | Beach Energy | $1.60 | 9.6% | 9.3 |
MFG | Magellan Financial | $9.39 | -16.9% | 9.3 |
STO | Santos Limited | $7.69 | 10.7% | 9.4 |
JBH | JB HI-FI | $46.71 | 20.5% | 9.6 |
SOL | Washington H Soul Pattinson | $34.05 | 27.0% | 9.9 |
Changes at the top
The coal stocks are back at the top of the ultra-cheap list. Whitehaven Coal (ASX: WHC) and Coronado Global (ASX: CRN) make up two of the top three stocks on this current low P/E scan.
The last one, GrainCorp (ASX: GNC), is a recurring entrant on this list. But with GrainCorp and other agriculture stocks staring down an El Nino in Australia, this may be an example of a stock that is cheap and may become even cheaper.
Fellow agriculture stocks Elders (ASX: ELD) and Incitec Pivot (ASX: IPL) are also recurring entrants on this list. Both have had significant share price pullbacks this year. So will you be able to get it any cheaper?
(Source: TradingView)
To read more about the impact El Nino may have on your investments, check out this fantastic piece by Livewire's Sara Allen.
The new addition: Bluescope Steel
A former entrant on this list makes its return - but not without a decent re-rating. Bluescope Steel (ASX: BSL) shares have fallen 8% in the last month. That's despite the company's FY23 earnings result coming in ahead of expectations and FY24 guidance also beating analyst estimates.
But shareholders may have been spooked by the housing cycle. Management remain reasonably constructive on residential demand in the first half, but visibility beyond this remains low.
(Source: TradingView)
Hans is one of the Senior Editors at Livewire Markets and Market Index. He created Signal or Noise and leads the team's coverage of the global economy and fixed income markets.
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