We have some interesting choices in our likes list today. Super Stock Selector Julia Lee, from Bell Direct, picks out Origin Energy because she says it is being traded and priced like an energy stock when, in fact, 60% of its earnings come from the retail energy market and has many utility-like characteristics.
“The utilities sector is up 11% over the past year while the energy sector is down 19% over the past year. Origin should be trading higher,” she says.
Raymond Chan likes Westpac and says that the 22% correction from the April 7 high is an opportunity to get the company at good prices and Michael McCarthy nominates Oil Search because of its success with gas production at the Hides formation in PNG.
“This is a company transforming project, and as production is ramped up I believe the market will re-rate OSH,” he says.
Global fund management darling, Magellan Financial Group, is Elio D’Amato’s preferred pick today.
“Magellan has delivered strong inflows over a number of years and has an excellent long-term investment track record. Given recent share price weakness, we see this as a good entry point for the stock,” he says.
Switzer Super Report expert, Paul Rickard is sticking with Telstra. It has come down off recent highs and at these prices, the biggest Australian company leveraged to ‘the internet of things’, is probably cheap.
[1]Evan Lucas’s selections are interesting too. Those four companies – James Hardie Industries (JHX), CSR (CSR), Boral (BLD), Adelaide Brighton (ABC) – are all plays on the wider theme of construction.
“The uptick in US housing, coupled with an improved outlook for European and Australian housing, has seen earnings smashing expectations – which is likely to translate over the remained of this financial year and the start of FY16. The RBA rate cuts are also likely to have a positive impact on sales,” he says.
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