Resilient Labor Force Statistics Aiding Select Industries – 3 Stocks to Watch Out

Unemployment Rate at Substantially Low Levels

Retail Trade Bouncing up to New Record Levels

Exploration Activities and Crude Production Riding on Increased Global Demand and Industrial Activities

Key Risks and Challenges

Outlook

Considering the fovourable employment situation in Australia, 3 ASX stocks are identified to showcase the momentum.

(1) GUD Holdings Limited (Recommendation: ‘Buy’ at AUD 8.510, Potential Upside: Low Double-Digit)

(M-cap: AUD 1.22bn, Annual Dividend Yield: 2.53%)

(2) Flight Centre Travel Group Limited (Recommendation: ‘Speculative Buy’ at AUD 17.240, Potential Upside: Low Double-Digit)

(M-cap: AUD 3.54bn, Annual Dividend Yield: 0.00%)

(3) Washington H Soul Pattinson and Company Limited (Recommendation: ‘Hold’ at AUD 25.890, Potential Upside: Low Double-Digit)

(M-cap: AUD 9.55bn, Annual Dividend Yield: 2.45%)

Comparative Price Chart

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing.

Note 1: Past performance is not a reliable indicator of future performance. 

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 22^nd August 2022. The reference data in this report has been partly sourced from REFINITIV. 

Note 3: Investment decisions should be made depending on an individual’s appetite for upside potential, risks, holding duration, and any previous holdings. An ‘Exit’ from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above. 

Technical Indicators Defined: - 

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock. 

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock. 

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.

Disclaimer

Kalkine New Zealand Limited is authorised to provide general advice only. The information on this website does not take into account any of your investment objectives, financial situation or needs. Before you make a decision about whether to acquire a financial product, you should obtain the Product Disclosure Statement from the product issuer. You should consider the appropriateness of advice taking into account your own objectives, financial situation and needs and seek independent financial advice before making any financial decisions.