WPL:ASX remains under Algo Engine sell conditions, although we anticipate a switch to buying conditions in the months ahead.
Woodside reported sales revenue of US$3.6 billion, 26% below the prior year. Underlying NPAT (excluding impairments) of US$447.
FMG:ASX is among the best-performing stocks across our model portfolios, with the share price up 220% since being added back in mid-2019.
The 1HFY21 earnings result was in line with consensus. Revenue US$9.4bn, Net profit US$4.1bn. Dividend which has come in at A$1.47ps (80% payout).
FY21 shipment guidance has been increased slightly to 178-182mt.
WES:ASX is under Algo Engine buy conditions and is up 22% since being added to our model portfolio in September 2020.
The company has delivered 1H21 NPAT of $1,414 million, +26% YoY. We expect growth to moderate and the valuation is looking stretched, although supported by a 3.2% yield.
Buy WES on the next Algo Engine buy signal.
CSL:ASX 1H21 NPAT of US$1.8bn. FY21 guidance retained at US$2.2bn, which implies a weaker 2H21.
We expect to see earnings upgraded prior to the completion of the 2H.
CSL trades on a forward yield of 1%.
In the last 8 months alone, PME has signed 6 new contracts at an average minimum size of $24m.
The customer list includes many of the leading academic facilities in the US.
Buy on the next Algo Engine signal.
Sonic Healthcare 1H21 Revenue $4.4bn, up 33% on the same time last year. EBITDA increased to $1.02bn and further growth of 5 – 10% into FY22 underpins our buy recommendation.
The balance sheet remains under-geared and we expect to see the company actively seeking M&A or JV opportunities.
SHL trades on a forward yield of 3.8%
Bendigo and Adelaide Bank is under Algo Engine sell conditions.
The bank reported a 2% rise in cash earnings to $220m alongside a first-half dividend of $0.23 (24% lower than the previous corresponding period).
Smaller bad debt charges are helping bank results globally.
National Australia Bank is under Algo Engine sell conditions.
Revenue was down 3% and cash NPAT $1.65bn was ahead of market expectations given lower credit impairment charges.
A rise in the yield of U.S. benchmark government debt has pushed it near thresholds that could fuel a wave of Treasury selling by mortgage investors, a scenario likely to exacerbate the bond selloff and cause rates to spike even further.
In Monday night’s webinar we’ll review the impact rising yields are having on asset allocation and stock selection models.
Coles Group is under Algo Engine buy conditions.
Coles delivered 1H21 EBIT growth of 7% or $1bn with a softer outlook and deceleration on the recent growth trends.
We remain buyers of Coles on share price weakness with support provided by the 3.6% yield.
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