Why we prefer the ASX mid-caps after February reporting season

LiveWire02-28

Overall, Australian company earnings came in better than expected with beats outweighing misses by 3 to 2. Resilient consumer spending, cost management, inflation moderation and positive economic ...

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Resilient consumer spending, cost management, inflation moderation and positive economic ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/why-we-prefer-the-asx-mid-caps-after-february-reporting-season\">Source Link</a>\n\n</div>\n","source":"livewire_stock","html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Why we prefer the ASX mid-caps after February reporting season</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nWhy we prefer the ASX mid-caps after February reporting season\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-02-28 12:48 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://www.livewiremarkets.com/wires/why-we-prefer-the-asx-mid-caps-after-february-reporting-season><strong>LiveWire</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>Overall, Australian company earnings came in better than expected with beats outweighing misses by 3 to 2. Resilient consumer spending, cost management, inflation moderation and positive economic ...</p>\n\n<a href=\"https://www.livewiremarkets.com/wires/why-we-prefer-the-asx-mid-caps-after-february-reporting-season\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"BK7140","symbol_name":"铁路","start_time":0,"source_url":"https://www.livewiremarkets.com/wires/why-we-prefer-the-asx-mid-caps-after-february-reporting-season","article_id":"2414364591","we_media_id":null,"thumbnails":[],"rights":{"source":"livewire_stock","url":"https://www.livewiremarkets.com/wires/why-we-prefer-the-asx-mid-caps-after-february-reporting-season","rn_cache_url":null,"directOrigin":true},"url":"https://stock-news.laohu8.com/highlight/detail?id=2414364591","pubTimestamp":1709095707,"sourceInfo":{"source_id":"livewire_stock","name":"Livewire Markets"},"weMediaInfo":null,"summary":"Overall, Australian company earnings came in better than expected with beats outweighing misses by 3 to 2. Resilient consumer spending, cost management, inflation moderation and positive economic outlooks typified many companies' results. For instance, Wesfarmers which operates Kmart, Officeworks and Bunnings, beat earnings expectations. But CEO Rob Scott noted that “customers are becoming more value-conscious” and that “cost control helped mitigate the cost of doing business pressures from inflation.”Consumer discretionary, real estate and information technology sectors were the standout sectors over the past month while communication services and health care reported the most misses against analyst expectations.VanEck recommends an underweight position to the big five banks, notably Commonwealth Bank , which we think is vulnerable to a market correction.VanEck offers two ETFs that provide direct and overweight exposure respectively to Australia’s mid-caps and industrials sector, VanE","collect":0,"end_time":0,"defaultTopTitle":"livewiremarkets.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"BK7140":"铁路","BK7511":"ESG概念","CBA.AU":"COMMONWEALTH BANK OF AUSTRAL","BK7047":"环境与设施服务","XAO.AU":"标普/澳交所 普通股指数","XJO.AU":"标普/澳交所 200指数","BK7153":"综合零售","MVE.AU":"VANECK S&P/ASX MIDCAP ETF","MVW.AU":"VANECK AUSTRALIAN EQUAL WEIG","AZJ.AU":"AURIZON HOLDINGS LTD","FDN":"First Trust Dow Jones Internet I","BK4550":"红杉资本持仓","WES.AU":"WESFARMERS LTD","BK7041":"综合货品商店","XKO.AU":"标普/澳交所 300指数","BK7135":"综合性银行","CWY.AU":"CLEANAWAY WASTE MANAGEMENT L"},"translate_title":"为什么我们在2月份报告季后更喜欢ASX中型股","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"AZJ.AU":1,"WES.AU":1,"MVW.AU":1,"MVE.AU":1,"CBA.AU":1,"CWY.AU":1,"XKO.AU":0.9,"XJO.AU":0.9,"XAO.AU":0.9,"FDN":0.9},"content_text":"Overall, Australian company earnings came in better than expected with beats outweighing misses by 3 to 2. Resilient consumer spending, cost management, inflation moderation and positive economic outlooks typified many companies' results. For instance, Wesfarmers (ASX: WES) which operates Kmart, Officeworks and Bunnings, beat earnings expectations. But CEO Rob Scott noted that “customers are becoming more value-conscious” and that “cost control helped mitigate the cost of doing business pressures from inflation.”\nConsumer discretionary, real estate and information technology sectors were the standout sectors over the past month while communication services and health care reported the most misses against analyst expectations.\n\n\nWhile Australian companies fared better than expected, we think the market is a touch too optimistic on Australia’s economic outlook. Inflationary pressures are more pronounced locally than globally, requiring the RBA to keep rates on hold for longer. Companies also noted an acceleration in labour costs, driving the implementation of cost management initiatives to protect margins. For our part, we believe there won’t be any rate cuts until Q4. \nLooking ahead, we could see a paradoxical dynamic play out where economic growth is resilient but mortgage stress increases. Australia’s migration surge will support aggregate spending but a \"higher rates for longer\" environment squeezes household budgets. In this environment, we could see a mid-caps rally, supported by overweight exposure to cyclical sectors such as industrials, consumer discretionary and real estate. Mid-caps reported the highest upward price target revisions.\n\nVanEck recommends an underweight position to the big five banks, notably Commonwealth Bank (ASX: CBA), which we think is vulnerable to a market correction. \nStretched valuations fail to capture the heightened mortgage stress risk. Price to earnings is trading at the upper bound of its historical average and is also the most expensive bank when valuations are compared globally. \n\n\nIn contrast, we like the prospects of mid-cap industrial companies Aurizon Holdings (ASX: AZJ) and Cleanaway Waste Management (ASX: CWY). These companies offer pricing power which will keep profit margins resilient in an elevated inflation environment. \nVanEck offers two ETFs that provide direct and overweight exposure respectively to Australia’s mid-caps and industrials sector, VanEck S&P/ASX MidCap ETF (ASX: MVE) and VanEck Australian Equal Weight ETF (ASX: MVW). MVW equally weighs the largest and most liquid stocks on the ASX, meaning the allocation is underweight large caps and notably the big five banks while remaining overweight mid-caps. \n\n\n\nETF\nVanEck S&P/ASX MidCap ETF (MVE)\nAustralian Shares\n\n\nView\n\n\n\n\n\n\n\nETF\nVanEck Australian Equal Weight ETF (MVW)\nAustralian Shares\n\n\nView\n\n\n\n\n\n\n\n\nNever miss an update\n\n    Enjoy this wire? 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