ASX's August 2024 Top Stock Picks Estimated To Be Trading Below Fair Value

Simply Wall St.08-02

The Australian market has climbed 1.2% in the last 7 days and is up 9.8% over the last 12 months, with earnings forecast to grow by 13% annually. In this favorable environment, identifying undervalued...

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In this favorable environment, identifying undervalued...</p>\n\n<a href=\"https://finance.yahoo.com/news/asxs-august-2024-top-stock-190525835.html\">Source Link</a>\n\n</div>\n","source":"yahoofinance_au","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>ASX's August 2024 Top Stock Picks Estimated To Be Trading Below Fair Value</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\">\nASX's August 2024 Top Stock Picks Estimated To Be Trading Below Fair Value\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-08-02 03:05 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://finance.yahoo.com/news/asxs-august-2024-top-stock-190525835.html><strong>Simply Wall St.</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>The Australian market has climbed 1.2% in the last 7 days and is up 9.8% over the last 12 months, with earnings forecast to grow by 13% annually. In this favorable environment, identifying undervalued...</p>\n\n<a href=\"https://finance.yahoo.com/news/asxs-august-2024-top-stock-190525835.html\">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":"ELD.AU","symbol_name":"ELDERS LTD","start_time":0,"source_url":"https://finance.yahoo.com/news/asxs-august-2024-top-stock-190525835.html","article_id":"2456509463","we_media_id":null,"thumbnails":["https://s.yimg.com/uu/api/res/1.2/jtwePbKEAZvFHrncXoq7iQ--~B/aD00MzI7dz0xMTk0O2FwcGlkPXl0YWNoeW9u/https://media.zenfs.com/en/simply_wall_st__316/ee047812921f935c11e8b8a18a28c857"],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2456509463","pubTimestamp":1722539125,"sourceInfo":{"source_id":"yahoofinance_au","name":"Yahoo Finance AU"},"weMediaInfo":null,"summary":"The Australian market has climbed 1.2% in the last 7 days and is up 9.8% over the last 12 months, with earnings forecast to grow by 13% annually. In this favorable environment, identifying undervalued stocks can provide significant opportunities for investors looking to capitalize on potential growth while minimizing risk.Top 10 Undervalued Stocks Based On Cash Flows In Australia. Overview: Goodman Group is an integrated property group with global operations across Australia, New Zealand, Asia, Europe, the United Kingdom and the Americas, boasting a market cap of A$69.21 billion.Lynas Rare Earths  is trading significantly below its fair value estimate of A$9.58, presenting an undervalued opportunity based on cash flows. Earnings are forecast to grow 33.2% annually over the next three years, outpacing both revenue growth  and the broader Australian market's earnings growth . However, profit margins have declined from 54.8% to 33.1%,","collect":0,"end_time":0,"defaultTopTitle":"yahoo.com","property":[],"viewcount":null,"language":"en","relate_stocks":{"ELD.AU":"ELDERS LTD","BK7088":"工业机械","BK7064":"综合支持服务","BK7021":"服装零售","LYC.AU":"LYNAS RARE EARTHS LTD","BK7016":"应用软件","MIL.AU":"MILLENNIUM SERVICES GROUP LT","BK7137":"餐馆","BK7117":"农产品","SHJ.AU":"SHINE JUSTICE LTD","XAO.AU":"标普/澳交所 普通股指数","BK7095":"多种金属与采矿","BK7110":"铜","XJO.AU":"标普/澳交所 200指数","BK7053":"金属与玻璃容器","BK7120":"特殊消费者服务","XKO.AU":"标普/澳交所 300指数","SFR.AU":"SANDFIRE RESOURCES LTD","BK7099":"工业房地产投资信托","BK7507":"资源股","BK7129":"钢铁","LBL.AU":"LASERBOND LTD","BK7510":"REITs概念","CCX.AU":"CITY CHIC COLLECTIVE LTD","BK7505":"食品股","DMP.AU":"Domino's Pizza Enterprises Ltd","BK7002":"互动媒体与服务","SDR.AU":"SiteMinder Ltd","BK7155":"工业房地产信托","ORA.AU":"ORORA LTD","FEX.AU":"FENIX RESOURCES LTD","BK7506":"金矿股","SEK.AU":"SEEK LTD","GMG.AU":"GOODMAN GROUP"},"translate_title":"澳大利亚证券交易所2024年8月精选最佳股票预计交易价格低于公允价值","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"ORA.AU":1,"CCX.AU":1,"DMP.AU":1,"ELD.AU":1,"FEX.AU":1,"LBL.AU":1,"LYC.AU":1,"MIL.AU":1,"SDR.AU":1,"SEK.AU":1,"SFR.AU":1,"SHJ.AU":1,"GMG.AU":0.9,"XAO.AU":0.9,"XJO.AU":0.9,"XKO.AU":0.9},"content_text":"The Australian market has climbed 1.2% in the last 7 days and is up 9.8% over the last 12 months, with earnings forecast to grow by 13% annually. In this favorable environment, identifying undervalued stocks can provide significant opportunities for investors looking to capitalize on potential growth while minimizing risk.\nTop 10 Undervalued Stocks Based On Cash Flows In Australia\n\n\n\nName\nCurrent Price\nFair Value (Est)\nDiscount (Est)\n\n\nLaserBond (ASX:LBL)\nA$0.705\nA$1.36\n48.2%\n\n\nFenix Resources (ASX:FEX)\nA$0.43\nA$0.86\n49.8%\n\n\nElders (ASX:ELD)\nA$9.52\nA$18.11\n47.4%\n\n\nShine Justice (ASX:SHJ)\nA$0.695\nA$1.32\n47.3%\n\n\nDomino's Pizza Enterprises (ASX:DMP)\nA$32.77\nA$63.47\n48.4%\n\n\nOrora (ASX:ORA)\nA$2.04\nA$3.91\n47.8%\n\n\nMillennium Services Group (ASX:MIL)\nA$1.145\nA$2.24\n48.9%\n\n\nCity Chic Collective (ASX:CCX)\nA$0.105\nA$0.20\n47.6%\n\n\nSiteMinder (ASX:SDR)\nA$5.60\nA$10.44\n46.4%\n\n\nSandfire Resources (ASX:SFR)\nA$8.70\nA$16.53\n47.4%\n\n\n\nClick here to see the full list of 37 stocks from our Undervalued ASX Stocks Based On Cash Flows screener.\nHere's a peek at a few of the choices from the screener.\nGoodman Group\nOverview: Goodman Group is an integrated property group with global operations across Australia, New Zealand, Asia, Europe, the United Kingdom and the Americas, boasting a market cap of A$69.21 billion.\nOperations: The company's revenue segments span Australia (A$1.23 billion), New Zealand (A$0.45 billion), Asia (A$0.98 billion), Europe (A$1.67 billion), the United Kingdom (A$0.76 billion) and the Americas (A$2.34 billion).\nEstimated Discount To Fair Value: 10%\nGoodman Group (A$36.44) is trading below its fair value estimate of A$40.5, making it an undervalued stock based on cash flows. Earnings are forecast to grow 28.57% annually over the next three years, outpacing both revenue growth (20.5%) and the broader Australian market's earnings growth (13.2%). Despite lower profit margins this year, Goodman upgraded its fiscal 2024 earnings guidance with a projected EPS growth of 13% and a full-year distribution of A$0.30 per share.\n\nOur growth report here indicates Goodman Group may be poised for an improving outlook.\nClick here to discover the nuances of Goodman Group with our detailed financial health report.\n\n\n\n\n  ASX:GMG Discounted Cash Flow as at Aug 2024\n \n\nLynas Rare Earths\nOverview: Lynas Rare Earths Limited, with a market cap of A$5.87 billion, engages in the exploration, development, mining, extraction, and processing of rare earth minerals in Australia and Malaysia.\nOperations: Revenue from rare earth operations amounted to A$604.08 million.\nEstimated Discount To Fair Value: 34.5%\nLynas Rare Earths (A$6.28) is trading significantly below its fair value estimate of A$9.58, presenting an undervalued opportunity based on cash flows. Earnings are forecast to grow 33.2% annually over the next three years, outpacing both revenue growth (28.8%) and the broader Australian market's earnings growth (13.2%). However, profit margins have declined from 54.8% to 33.1%, and Return on Equity is expected to remain low at 14.4%.\n\nThe growth report we've compiled suggests that Lynas Rare Earths' future prospects could be on the up.\nNavigate through the intricacies of Lynas Rare Earths with our comprehensive financial health report here.\n\n\n\n\n  ASX:LYC Discounted Cash Flow as at Aug 2024\n \n\nSEEK\nOverview: SEEK Limited, with a market cap of A$8.03 billion, provides online employment marketplace services across Australia, South East Asia, Brazil, New Zealand, Mexico, the United Kingdom, Europe and internationally.\nOperations: Revenue Segments (in millions of A$): SEEK's revenue is derived from Employment Marketplaces - ANZ (A$827.80 million), Employment Marketplaces - OCC (A$42.20 million), Employment Marketplaces - SEEK Asia (A$248.80 million), Employment Marketplaces - Brasil Online (A$32.10 million), and Employment Marketplaces - Platform Support (A$44.50 million).\nEstimated Discount To Fair Value: 10.8%\nSEEK Limited (A$22.55) is trading below its fair value estimate of A$25.29, indicating it may be undervalued based on cash flows. Despite a high debt level and declining profit margins from 20.3% to 8.6%, earnings are forecast to grow significantly at 22.18% annually over the next three years, outpacing the Australian market's growth rate of 13.2%. Recent executive changes and structural reorganization aim to enhance operational efficiency and AI integration starting July 2024.\n\nOur expertly prepared growth report on SEEK implies its future financial outlook may be stronger than recent results.\nDive into the specifics of SEEK here with our thorough financial health report.\n\n\n\n\n  ASX:SEK Discounted Cash Flow as at Aug 2024\n \n\nSeize The Opportunity\n\nDive into all 37 of the Undervalued ASX Stocks Based On Cash Flows we have identified here.\nAre you invested in these stocks already? Keep abreast of every twist and turn by setting up a portfolio with Simply Wall St, where we make it simple for investors like you to stay informed and proactive.\nSimply Wall St is your key to unlocking global market trends, a free user-friendly app for forward-thinking investors.\n\nInterested In Other Possibilities?\n\nExplore high-performing small cap companies that haven't yet garnered significant analyst attention.\nDiversify your portfolio with solid dividend payers offering reliable income streams to weather potential market turbulence.\nFuel your portfolio with companies showing strong growth potential, backed by optimistic outlooks both from analysts and management.\n\n This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.\nCompanies discussed in this article include ASX:GMG ASX:LYC and ASX:SEK.\nHave feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team@simplywallst.com","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":false,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"0","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.29.1","shortVersion":"4.29.1","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2456509463"}