AU
UK
CA
US
IND
NZ
This report is an updated version of the report published on 20 November 2025 at 1:31 PM AEDT
Company Overview
Company Overview: Temple & Webster Group Ltd (ASX: TPW) is an Australia-based pure play online retailer of furniture and homewares. The Company has over 200,000 products on sale from hundreds of suppliers. QBE Insurance Group Limited (ASX: QBE) is an Australia-based insurance and reinsurance company. The principal activities of the Company include underwriting general insurance and reinsurance risks, management of Lloyd's syndicates and investment management. Kalkine’s Sector Report covers the Investment Summary, Sector Overview & Supporting Catalysts, Data Insights & Analysis, Financial Metrics, Financial Commentary, Risks, Outlook, Technical Analysis along with the Valuation, Target Price, and Recommendation on selected stocks.
Investment Summary
Sector Overview and Supporting Drivers
Australia’s Consumer Discretionary sector is closely tied to household spending trends and economic conditions, making it highly sensitive to shifts in wages, interest rates, and consumer confidence. The sector includes retailers, automotive companies, leisure and entertainment providers, travel operators, and household goods businesses. Recent improvements in wage growth, stabilising inflation, and expectations of future rate cuts are helping to support demand after a period of pressure from rising living costs. Population growth, tourism recovery, and expanding e-commerce adoption are also underpinning sales momentum. However, elevated household debt and cautious consumer sentiment remain key constraints, keeping spending patterns selective and value-driven.
Australia’s Financial sector plays a central role in supporting economic activity, spanning banking, insurance, wealth management, and diversified financial services. The sector’s performance is influenced by interest rate settings, credit growth, asset markets, and overall economic confidence. Population growth and stable employment continue to support demand for mortgages, business lending, and superannuation products. Banks are benefiting from resilient credit quality, while insurers face ongoing claims inflation and climate-related pressures. Wealth managers are seeing gradual improvement in fund flows as market volatility eases. Despite solid fundamentals, the sector remains exposed to regulatory scrutiny, cyber risks, and potential stress in housing and commercial property markets.
Sector Catalysts
Index Performance
Investment theme and stocks under discussion (TPW, QBE)
After understanding the sectors, let us now look at two companies from the consumer discretionary and financial sectors listed on the ASX. The price potential of the companies under discussion have been analysed based on EV/Sales and Price/Book Value based relative valuation methods.
1. ASX: TPW (Temple & Webster Group Ltd)
(Recommendation: ‘Speculative Buy’ at AUD 19.660; Potential Upside: Low Double-Digit; MCap: AUD 2.32bn)
TPW is an Australia-based pure play online retailer of furniture and homewares. The Company has over 200,000 products on sale from hundreds of suppliers.
The stock has witnessed a decline of ~17.39% in last one month, and over the past six months, the stock is down by 5.64%. The stock has a 52-week low and 52-week high of AUD 11.130 and AUD 29.060, respectively and is currently trading close to the mid-point of its 52-week high and low. TPW was last covered in a report dated ‘9 October 2025’.
2. ASX: QBE (QBE Insurance Group Ltd)
(Recommendation: ‘Hold’ at AUD 19.730; Potential Upside: Low Double-Digit; MCap: AUD 29.81bn)
QBE is an Australia-based insurance and reinsurance company. The principal activities of the Company include underwriting general insurance and reinsurance risks, management of Lloyd's syndicates and investment management.
The stock has corrected ~2.53% in last one month, and over the past six months, it has declined by ~12.86%. The stock has a 52-week low and 52-week high of AUD 18.380 and AUD 24.200, respectively and is currently trading below its 52-week high-low average. QBE was last covered in a report dated ’23 October 2025’.
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 neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 20 November 2025. 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.
Note 4: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.
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.
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Past performance is not a reliable indicator of future performance.
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