Research

This edition of the Month Ahead presents ideas from three areas of focus for Morgans: domestic equities, ETFs and global equities. We take a look at the opportunities presented by Light & Wonder, the Firetrail Australian Small Companies Fund and Eli Lilly.

We recommend investors start making sense of AI by considering stock opportunities in three distinct areas: artificial intelligence, digital infrastructure, and data networks.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

Oil demand is tracking modestly ahead of expectations, while robust supply is failing to keep pace. We expect the oil market to enter a deficit supply balance during 2H 2024. Forced ranking of our oil-exposed coverage at current share prices: #1 WDS, #2 KAR, #3 BPT, and #4 STO.

Most results were thereabouts against expectations which saw the sector perform broadly in line with the index. Top picks are ALQ and CVL.

Within the context of recent trading performance, implied multiples, and estimated TSR, we call out RPL, QAL and MGH our key picks post results.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

It was a rough night for Airbnb, with shares falling 15% after the bell on a reduction to Q3 guidance, citing a shortening of booking windows around the world. Uber Technologies did the opposite, its shares rising 11% after beating consensus, notably in Delivery margins.

Arguably the best result last night came from Shopify, which beat analyst expectations by nearly 30% as its AI capabilities attracted more merchants to its e-commerce platform.

A strong result from Eli Lilly came amid a 2.3% surge in the S&P 500, the best day for the index since 2022. Eli Lilly raised sales and profit guidance for the year after a strong performance by its diabetes and weight loss drugs Mounjaro and Zepbound.

Inflation has been sticky and interest rates higher for longer than forecast. However, as rates come down and economic conditions improve, money is expected to continue to flow into the stock market and the emerging healthcare space.

To help you navigate this reporting season, our team of analysts have handpicked a list of key stocks in the Bank and Fund Manager space that are worth keeping an eye on.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

There are many reasons to invest in equities. Historically, they have offered higher capital returns than many other asset classes. Furthermore, they provide liquidity and diversification and allow investors to participate in the growth of high performing businesses and sectors.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

As global markets continue to evolve, certain companies are uniquely positioned to capitalize on the substantial capital expenditure (capex) cycles driven by megatrends and shifting market dynamics. These companies, through strategic investments and a focus on future-oriented projects, stand to benefit significantly from large-scale capex initiatives

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

Our banks analyst Nathan Lead recently had a close look at the valuations of the banks to see if their recent share price strength could be justified by fundamentals.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

In its latest retail sales release, the ABS implied that Taylor Swift’s seven concerts in Sydney and Melbourne boosted retail sales by 20 basis points in February 2024.

Morgans research analysts re-set their sector views, strategies and best ideas as dynamic forces continue to challenge markets.

We have updated our earnings estimates and target prices for all the companies in our consumer discretionary universe following the trading updates provided during the recent AGM season and recent movements in FX rates.

Today, Tuesday the 28th of February, we are happy to buy Dalrymple Bay (ASX:DBI), TPG Telecom Limited (ASX:TPG), Stanmore Resources (ASX:SMR), Bega Cheese (ASX:BGA), Airtasker Limited (ASX:ART), Waypoint REIT (ASX:WPR), Ai-Media (ASX:AIM), and Kina Securities Ltd (ASX:KSL).

Today, Tuesday the 14th of February, we are happy to buy Endeavour Group (ASX:EDV), Aurizon Holdings (ASX:AZJ), JB Hi-Fi (ASX:JBH) and Beach Energy (ASX:BPT).

The stocks we are happy to buy today, Thursday the 24th of February 2022.

The stocks we are happy to buy today, Monday the 29th of August 2022.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month time frame.

With the election out of the way and Labor's more disruptive reforms defeated, market sentiment has clearly taken a turn for the better.

We see a strong chance of FY19 results beating low expectations, but market estimates for FY20 look too heroic, leaving scope for some disappointment versus very stretched valuations.

In our reporting season preview we noted that the spread in consensus forecasts was very narrow and the potential for beats and misses versus market expectations was lower than normal.

There was a lot to like about the February reporting season.

The first half reporting season kicks off later this week, and according to the latest Thomson Reuters earnings estimates, EPS for the S&P/ASX200 is forecast to grow by 7.0% in FY18, down from the 11.3% in FY17.

If you have a large stockmarket shock as we have had in the last couple of days, the market will vary in a broad range in order to discover the prices that people want to buy at and sell at.

Investors are waiting for a circuit-breaker.

Stock investors have enjoyed an extended bull market since March 2009.

Our daily best calls through reporting season, August 2022 on Wednesday, 31 August 2022.

We preview the FY22 results of the five gaming stocks in our universe that report in August.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

Our best ideas are those that we think offer the highest risk-adjusted returns over a 12-month timeframe supported by a higher-than-average level of confidence. They are our most preferred sector exposures.

Dive into our series of videos where our analysts uncover stocks set to surprise investors in February, along with key emerging themes. Stay informed as ASX-listed companies unveil their half-yearly results with Morgans by your side.

Explore our latest edition of The Month Ahead where we spotlight three standout companies from the recent reporting season: The Lottery Corporation, Smartgroup, and Ventia. Gain valuable insights and fresh perspectives to enhance your investment strategy.

Why now is the time to seize undervalued assets and navigate market volatility. In April 2023, we spotlight three top-tier stocks, including Macquarie Group, ResMed, and Microsoft, presenting compelling value propositions after recent price declines.

In May we spotlight Aurizon, CSL Limited, and NEXTDC. From rail freight operations to biotechnology advancements and data centre infrastructure, these selections promise growth potential and strategic insights. Our expert analysts uncover why these companies stand out.

We preview the banks 1H23 reporting season, with expectations of solid-to-strong 1H23 growth but with a weakening earnings outlook from 2H23 onwards.

Morgans analysts preview the results for 150 stocks under coverage that report in February and call out likely surprise and disappoint candidates.

Discover the potential of small-cap stocks in June 2023! Explore our expert insights into rising trends and promising investment opportunities in Flight Centre, Super Retail Group, Objective Corporation, and Dalrymple Bay Infrastructure. Stay ahead of the curve with our comprehensive analysis.

Discover the power of strong leadership in equity investment! This month we look at four companies led by visionary leaders, poised to drive long-term shareholder value. From Endeavour Group's retail dominance to Goodman Group's global presence, unlock investment opportunities with our expert analysis.

Get ready for the upcoming reporting season with our expert insights! Discover top stock picks and strategic analysis for navigating market volatility and uncovering potential opportunities.

Strong FY18 led by A2 Platinum market share wins.

Woolworths (WOW) has announced its intention to combine Endeavour Drinks and ALH Group (to be called Endeavour Group) ahead of a possible demerger in CY20.

The A2 Milk Company (ASX:A2M) has maintained guidance at its AGM.

Explore August's insights for September's opportunities. Discover resilient retail earnings and the post-COVID travel sector recovery. Stay ahead with our top picks and expert analysis.

Zip Co's (ASX:Z1P) reported 1H21 NPAT loss of ~A$453m was impacted by a number of one-off items

Discover the latest additions to Morgans' research coverage as we introduce new companies to our clients. In October, we initiated coverage on CSR Limited, PolyNovo, and True North Copper. Find out why these companies made it to our radar and how they could impact your investment portfolio.