Are CommBank, Qantas and WiseTech ready to be sold?

This week’s share tips columnists examine some of the biggest names on the ASX, and they may be ripe for profit-taking.

Blue skies ahead? Many big stocks have surged this year. Picture: iStock

ASX big guns sit in our share specialists’ recommendations this week, although most are a “hold” or a “sell” following a period of strong performance.

While they ASX 200 index slipped 1.1 per cent lower last week, it’s still up 17.7 per cent over the past 12 months.

Some of the year’s star performers, including WiseTech Global (up 98 per cent), Qantas (up 58 per cent) and the Commonwealth Bank (up 42 per cent) now sit on our tipsters’ “sell” lists as profit-taking beckons.

Below are their buy, hold and sell tips.

Catapult Wealth general manager Dylan Evans:

BUY

Northern Star (NST)

Northern star updated last week with disappointing sales numbers. This was due to work

done at two of its mines and should be a short setback, with momentum to return over the

year.

ResMed (RMD)

A fantastic first-quarter result with an earnings growth rate of 34 per cent. Sleep apnoea diagnosis continues to grow, and fears have passed that new weight loss drugs will slow this market.

Dylan Evans from Catapult Wealth

HOLD

CSL (CSL)

Growth and momentum have returned to the key blood plasma business, with a turnaround

in the smaller immunisation and kidney divisions needed to see the stock break out.

Woolworths (WOW)

Its latest update confirmed margins have fallen, and these are unlikely to return

while Woolworths deals with ACCC action on allegations of misleading discounts.

SELL

Bendigo Adelaide Bank (BEN)

Lack of scale and higher costs mean Bendigo struggles to compete with major banks’

interest rates without losing profit margin. It doesn’t offer upside compared with the major

banks.

WiseTech Global (WTC)

We fear last week’s CEO resignation is the beginning of issues with the board and

management of WiseTech.

Morgans senior investment adviser Andrew Eddy:

BUY

Light & Wonder (LNW)

Trading at a significant discount to its gaming technology peer, yet offering much higher growth potential, the recent sell-off on news of a litigation issue is an opportunity to buy.

Pinnacle Investment Management (PNI)

It is growing its distribution, which is leading to strong growth in funds under management. Earnings should step-up with significant operating leverage

HOLD

Superloop (SLC)

The migration of Origin customers from Ausie Broadband to SLC has now been largely completed and de-risked. The business has impressive organic growth with positive momentum

Australia’s biggest bank has been a share market star. Picture NCA NewsWire /Emma Brasier.

Universal Store (UNI)

The youth apparel retailer is trading well despite cautious consumers, and should see an expansion in its network of stores in the Perfect Stranger brand.

SELL

Qantas (QAN)

While travel demand remains stable, share price appreciation this year has seen the stock reach record highs last week. Time to disembark.

Commonwealth Bank (CBA)

Despite having the best financial metrics among its peers, CBA continues to be the most expensive and the medium-term returns look really compressed.