Share tips recommendations for a stock market near record highs

This week’s share tips, as the market trades near record highs, show how tricky it is to forecast winners and losers.

Amcor has packaging operations around the globe. Picture: Alberto Bernasconi

Finding a stock market bargain is tougher when shares are trading at record highs, but our share tips columnist still see value in some companies.

This week’s “buy” recommendations are a mixed bag of goodies, featuring health care, poker machines, investment banking and packaging companies.

One of them – packaging giant Amcor – features as both a “buy” and a “sell”, illustrating the difficulty of stock tipping in a market regularly reaching new records.

Last week the S&P/ASX 200 index hit a new high of 8446.40 points, but retreated slightly from that to end the week at 8393.80 points. It still rose 1.3 per cent for the week and outperformed Japan and European shares, which fell.

Below are this week’s tips.

Ord Minnett senior private wealth advisor Tony Paterno:

BUY

Sigma Healthcare (SIG)

A green light ACCC decision has paved the way for the Sigma-Chemist Warehouse merger. We view it will represent a category killer in arguably Australia’s most attractive retail

category.

Light & Wonder (LNW)

We believe LNW is on track to post earnings per share growth of 22 per cent in calendar 2025. We have also increased our forecast for 2026 by 8 per cent as gaming installations continue to impress.

Robots are rising at Treasury Wine Estates. Picture: Supplied

HOLD

Treasury Wine Estates (TWE)

Given its miss on initial guidance, the market likely lacks confidence in management’s outlook statement.

Praemium PPS)

Group net inflows were well-ahead of our expectations. PPS also launched its

new Spectrum (wrap) and Scope products with renewed group branding.

SELL

Amcor (AMC)

Volumes have declined by an average of 1.1 per cent year-over-year over the past 21

quarters. Achieving higher growth rates may be challenging.

Wesfarmers (WES)

Its AGM trading update indicates that the Australian consumer continues to focus

on value. Officeworks flagged weaker business customer performance.

Baker Young managed portfolio analyst Toby Grimm:

BUY

Macquarie Group (MQG)

While its first half results were slightly disappointing, we believe market conditions and recent political developments in the US promote a positive outlook into 2025.

Amcor (AMC)

The packaging firm’s US$8.4bn acquisition of US based Berry Global appears strategically sound and could materially enhance profitability within two years.

Baker Young Stockbrokers managed portfolio analyst Toby Grimm.

Tony Paterno from Ord Minnett.

HOLD

Sonic Healthcare (SHL)

Sonic’s Australian pathology and radiology units are outperforming, and comments suggesting operating cost pressures are easing supports optimism around an earnings recovery next year.

Newmont Corporation (NEM)

October’s cost update was highly disappointing. However we believe Newmont’s share price decline is excessive given strong gold prices and the company’s steady progress on asset divestments.

SELL

Fletcher Building (FBU)

While arrangements to remedy historic WA liabilities provide some clarity, its recent capital raising is highly dilutive and we would avoid the name until new management delivers on core strategy.

JB Hifi (JBH)

An outstanding company benefiting from resilient consumer discretionary spending. However, we believe the stock has reached overvalued levels and would take profits.

Originally published as Share tips recommendations for a stock market near record highs