Stock market experts share their buy, hold and sell tips

International conflicts are causing concern in investment circles, and closer to home some ASX big guns are under pressure.

Australia’s stock market cannot escape what happens overseas. Picture: iStock

Global geopolitical issues drove financial markets last week, leading to a bumpy ride for Aussie shares, which ended the week down 0.75 per cent.

War in the Middle East was at the top of investors’ minds, in particular its impact on oil prices and inflation, after crude oil prices surged higher.

AMP head of investment strategy Shane Oliver said global share markets mostly fell as investors remained on edge, waiting to see what happened with the Israel-Iran conflict.

“The moves over the last week in shares weren’t big but indicate that shares are vulnerable in the short term after their surge to record highs,” Dr Oliver said.

Closer to home, our share tips columnists delivered a mixed bag of recommendations, with resources companies comprising three out of their four “buy” tips.

Chris Watt from Bell Potter Securities

Sean Conlan fro CC Equities

On their ”sell” lists were four of the nation’s biggest companies – CBA, Qantas, Westpac and Woodside – not because they’re bad companies but because their valuations are looking stretched.

Bell Potter Securities private wealth adviser Chris Watt:

BUY

CSL (CSL)

We see the recent share price weakness as an attractive buying opportunity. The August result was largely in line with consensus, with management reiterating its commitment to Behring gross margin recovery.

Mineral Resources (MIN)

Its share price weakness has been driven by its debt level, and weak commodity prices and sentiment. Recent news of Chinese lithium production suspension should support higher lithium prices.

HOLD

WiseTech Global (WTC)

We are very positive on the outlook for WiseTech – as evidenced by our strong revenue and earnings growth forecasts – but believe the stock looks expensive on the current valuation.

APA Group (APA)

Despite an attractive distribution yield, we remain a “neutral” because of its weak balance sheet, high gearing, and regulatory headwinds.

SELL

Qantas (QAN)

Qantas posted a solid result in terms of its domestic, loyalty, and freight divisions. However, conditions remain uncertain with both international and JetStar revenues declining.

Commonwealth Bank of Australia (CBA)

Despite an in-line annual result, CBA’s valuation remains stretched. It ascribes very little possibility to the prospects of downside scenarios.

Bell Potter says conditions remain uncertain for Qantas. Picture: iStock

CC Equities director Sean Conlan:

BUY

HyTerra (HYT)

With a $21.9 million investment from Fortescue, HyTerra has tripled its acreage in the hydrogen-rich Nemaha project in Kansas to 39,000 acres.

Auric Mining (AWJ)

The company and its joint venture partner BML Ventures have announced $23.5 million in gold sales after completing the second toll milling campaign for this year at the Jeffreys Find mine near Norseman in Western Australia.

HOLD

Brickworks (BKW)

The near-term outlook for building products remains soft, with active management actions aimed at cost and inventory control.

WiseTech Global (WTC)

We are very positive on the outlook for WiseTech – as evidenced by our strong revenue and earnings growth forecasts – but believe the stock looks expensive.

SELL

Woodside Energy Group (WDS)

Woodside’s portfolio is ex-growth and very highly concentrated in the yet-to-be-started Scarborough field. This is problematic and necessitates mergers and acquisitions in our view.

Westpac Banking Corp (WBC)

We see Westpac as expensive. It has outperformed its peers by 21-24 per cent year-to-date and trades at a 21 per cent premium to ANZ an 5 per cent premium to NAB.

Originally published as Stock market experts share their buy, hold and sell tips