Our Super Stock Selectors are back in 2017 with some fresh stock picks. For those who are new to the Switzer Super Report, each week we survey prominent analysts, brokers and fund managers on a stock they like and dislike. We purposely ask for ‘likes’ and ‘dislikes’ instead of recommendations, so it provides an idea of what the market is looking at, rather than firm buys or sells.
This week, Michael McCarthy of CMC Markets likes natural health company Blackmores (BKL) after the share price stabilised.
“The superior long-term growth profile is now buyable at a much less demanding P/E ratio,” he says.
Blackmores previously closed at $108.48 – a significant discount to its 52-week high of $220.60.
Blackmores 1-year chart
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Compared to its peers, Raymond Chan of Morgans sees opportunity in Westpac Banking Corporation (WBC).
“WBC [is] the worst performer among [the] major banks. We think this brings opportunity to add,” he notes.
Westpac Banking Corporation 1-year chart
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In the dislikes list this week is Newcrest Mining (NCM). “I don’t like Newcrest (NCM) – a better than 25% [price] since late December is, in my view, running well ahead of the lift in spot gold prices,” explains McCarthy.
“A correction in the yellow metal could see NCM trounced”.
Newcrest Mining 1-year chart
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For Chan, Regis Healthcare remains his disliked stock.
“It’s great to see Government and the industry finding some compromise to ensure that higher funding is better targeted to residents with the highest care needs. However, we think the valuation upside is limited at this stage,” he notes.
For more stock tips, a reminder not to miss Switzer’s special report: 10 Stocks to buy in 2017.
Aside from some core favourites for long-term investors – like the big banks – global healthcare players (among others) also get a mention.
“Ramsay (RHC) is one of my two favourite health stocks – CSL is the other,” says Switzer Super Report expert Paul Rickard.
“It’s been out of favour for a few months, but it has delivered year after year.”
Ramsay Health Care 1-year chart
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Important: This content has been prepared without taking account of the objectives, financial situation or needs of any particular individual. It does not constitute formal advice. Consider the appropriateness of the information in regards to your circumstances.
