Share market specialists share their buy, hold and sell tips

Turbulent times on financial markets can create opportunities for savvy investors. Advisers and analysts share their picks.

Metcash is tipped to benefit from its Total Tools store rollout.

Retail stocks and energy companies caught the eye of one of our regular share tips specialists this week as stock markets globally steadied from the turmoil of early August.

Also in focus is Judo Capital Holdings, which owns small-business focused Judo Bank, a stock that already has climbed more than 30 per cent this year.

Meanwhile, global goldminer Newmont, consumer electronics retailer JB Hi-Fi and business software company TechnologyOne all have enjoyed strong runs since January and may be ready for some profit taking, our experts suggest.

Here are their new buy, hold and sell stock tips.

Tony Paterno, Ord Minnett senior private wealth adviser:

BUY

Judo Capital Holdings (JDO)

We see Judo as a higher-risk, higher-return investment if it can successfully achieve its ‘financial metrics focusing on areas including return on equity and gross loans. It is trading slightly below book value.

Metcash (MTS)

The stock looks attractive and is trading at bottom-of-the-cycle earnings. Metcash’s investments in new businesses, the Total Tools store rollout and tight cost control leave it well placed.

HOLD

Ampol (ALD)

Ampol appears fair value, although it would present attractive value if/when earnings return to mid-cycle.

Origin Energy (ORG)

The stock is trading in line with its five-year average and we see the dividend yield as fairly priced versus its peers.

SELL

Bendigo and Adelaide Bank (BEN)

The regional banks are facing several structural headwinds. Many challenges remain in sustainably increasing its return on equity.

JB Hi-Fi (JBH)

We feel the valuation is stretched. Cost growth likely steps up, promotional activity will increase and the sales mix becomes a margin headwind.

Ord Minnett senior private wealth adviser Tony Paterno.

Baker Young Stockbrokers managed portfolio analyst Toby Grimm.

Toby Grimm, Baker Young managed portfoiio analyst:

BUY

Pexa Group (PXA)

Progress in the UK and improved near-term certainty regarding Australian competition bode well for the digital property settlement platform developer.

Charter Hall Social Infrastructure (CQE)

The childcare and social infrastructure property owner has lagged its real estate investment trust peers despite offering greater leverage to falling global interest rates.

HOLD

Rio Tinto (RIO)

While entering a seasonally challenging period for the mining sector, probabilities for meaningful stimulus in China are rising and Rio’s preferred asset mix offers quality exposure.

Domino’s Pizza Enterprises (DMP)

After taking significant measures to improve overseas profitability and rebase store growth expectations, we see risks more appropriately priced into the stock to justify holding.

SELL

Newmont Mining (NEM)

Impressive quarterly operational performance and recent strength in gold prices have seen Newmont outperform to levels at which we would be taking profits.

TechnologyOne (TNE)

It undoubtedly is a quality software business with continued growth options. However, the stock has rallied well in excess of our valuation.

Originally published as Share market specialists share their buy, hold and sell tips