Share tips: investment experts’ buy, hold and sell suggestions

Sleep disorders are a share market winner but pizza and plumbing are under pressure in new stock recommendations.

Domino's faces pressure from growing competition, share experts say.

Aussie shares missed out by a whisker last week in extending their winning streak beyond 10 days, but still enjoyed their longest string of positive trading days in more than nine years.

February 2015 was the last time shares had climbed straight up for so long, and Friday’s trading was a mixed bag of results with energy and mining stocks falling but health care and retail companies climbing.

Similarly, our share tips this week are a mixed bag. Health care-related companies Sonic and ResMed are popular with our experts, while pizzas, plumbing and waste management are on the nose.

Here are our columnists’ latest buy, hold and sell recommendations.

Dylan Evans, Catapult Wealth general manager

BUY

Brambles (BXB)

The company’s annual result was strong, with profit well ahead of expectations, an increased dividend, a $500m share buyback announcement and a reduction in debt.

ResMed (RMD)

Sleep Apnoea diagnosis has been steadily growing, and fears of new weight loss drugs impacting this growth seem overblown. ResMed is positioned to benefit from the growing sleep apnoea market for years to come.

HOLD

ASX (ASX)

The company looks to be at the end of its expensive IT upgrades, which should allow the stock to return to growth.

Goodman Group (GMG)

Goodman reported a solid result earlier this month, slightly ahead of previous guidance. The fundamentals for industrial properties, warehouses, and data centres are all positive, supported by growth in e-commerce and cloud computing.

SELL

Magellan Financial Group (MFG)

Magellan’s funds under management and high management fees are likely to come under pressure as it continues to struggle with fund underperformance.

Domino’s Pizza Enterprises (DMP)

Domnio’s faces growing competition from delivery apps such as Uber Eats, with customers now having access to an endless range of easy delivery options.

Rising cases of sleep apnoea are good news for ResMed. Picture: Supplied

Andrew Eddy, Morgans Financial senior investment adviser

BUY

The Lottery Corporation (TLC)

The globally-renowned lotteries company has long-duration licences with a resilience to economic fluctuations, ensuring stable and predictable cash flows.

Sonic Healthcare (SHL)

It’s turning the corner on the pandemic and remains in a strong position, with a solid base for business growth and cost control, and has ample liquidity for capital management and mergers and acquisitions.

HOLD

Beacon Lighting (BLX)

The company continues to drive strong growth in trade sales, offsetting softness in retail in a subdued consumer market, but is well positioned for strong growth when consumer sentiment lifts.

MAAS Group (MGH)

The business continues to demonstrate a transition away from real estate towards construction materials, with a quarry lead industrial business.

SELL

Cleanaway Waste Management (CWY)

The share price is fully valued when considering the higher debt servicing, higher lease costs, higher maintenance spend and lower long-term earnings generation.

Reece (REH)

Despite being a high-quality business, the near-term outlook looks challenging with modest earnings growth expected. The stock looks expensive.

Originally published as Share tips: investment experts’ buy, hold and sell suggestions