As the February reporting season draws to a close, our Super Stock Selectors continue to cast their eyes over the results. This week, they’ve placed some of the standout performers on the likes list.
Vocus Group, formerly Vocus Communications (VOC), earnt a big tick from Michael McCarthy of CMC Markets.
“This niche telco player is breaking out from a lower trading range,” he notes.
Indeed, the company has recently broken out of its 52-week low of $3.69.
“It almost doubled earnings in H1, is trading on a PE around 13 and has forecast long-term growth above 16%.”
Source: CommSec
Despite posting a solid full-year report, McCarthy dislikes Mirvac Group (MGR) as it struggles to move higher.
“Higher interest rates – faster – have me looking for a 10% pullback,” he says.
Source: CommSec
On the back of the company’s half-year result, Prime Value’s ST Wong suggests that the evolution of Breville Group (BRG) is positive.
“Efforts to manage inventory, costs and marketing programs better has helped to improve margins and create better product penetration,” says Wong.
“The company’s core ‘Breville designed and developed products’ are also demonstrating good growth in offshore markets, lending momentum to revenue growth.”
Source: CommSec
Murray Goulburn (MGC) is out of favour with Wong, as market share losses in milk intake are yet to stabilise.
“With a lack of clarity on Murray Goulburn’s farm gate milk prices, the company’s ability to attract milk supply may still be under pressure,” he suggests.
Source: CommSec
Raymond Chan of Morgans likes NextDC (NXT) after the company report was “better than expected on both a reported and underlying basis.”
For the half-year ended 31 December 2016, EBITA was up 110% to $23.9 million, while revenue increased 39% to $58.7 million.
Source: CommSec
Oz Minerals (OZL) – which posted an “OK” result, but is trading at a 16% premium to Morgans’ valuation – has earnt a place on his dislikes list.
Our Super Stock Selectors is a survey of prominent analysts, brokers and fund managers. Each week we ask them to name a stock they like, and one they don’t like. 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.
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