Marcus Bogdan from Blackmore Captial reporting season report card says the February reporting season for Australian stocks showed mixed results, with pressure on margins and weaker growth across many sectors. Notably, commodity prices have experienced six consecutive downgrades, impacting some companies.
Bogdan says the banks had a split performance, with ASX:CBA reporting strong results while ASX:NAB and Westpac (ASX:WBC) were weaker. There have also been increased analyst downgrades, suggesting two years of negative growth for the ASX 200.
However, some international industrial stocks, such as Amcor (ASX:AMC) and Brambles (ASX:BXB), delivered positive results, with margin improvements and stable outlooks. In terms of portfolio positioning,
Marcus Bogdan highlighted Cleanaway Waste Management (ASX:CWY) and CSL (ASX:CWY) as potential upside stocks, given their strong earnings growth trajectory. Despite elevated valuations and sideways market movement, his firm has increased its cash holdings to 12%. In terms of sector performance, healthcare stocks like Ramsay (ASX:RHC) and Medibank (ASX:MPL) have been mixed, but Ramsay’s valuation and management changes offer potential for recovery.
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