4 ASX Stocks Tends to Perform Well: JHX, CAR, ALD,JLG
Tiger AU Market Insights at 22 June, By Tiger Brokers AU Market Strategist Brett Taylor.
Looking at recent publications by those in the know throughout the market, and despite the inflation and recession concerns, these stocks may have the resilience to perform well.
1. $JAMES HARDIE INDUSTRIES-CDI(JHX.AU)$ , also listed in the U.S – $James Hardie Industries PLC(JHX)$
A building materials giant with business in Australia, Australasia, U.S, Canada and Europe. This stock has been pummelled in the past month (down around 20%). It has been subject to cost pressures that are present in the construction industry yet they actually manage this well, being able to push through price rises and have had some increased margins.
They have significant business in America where demand is expected to be steady due to low and ageing housing stocks.
JHX did disappoint the market with their final FY22 quarter profit results in May, yet they may well have the resilience to perform well in the tough conditions ahead (higher interest rates).
Another stock that has fallen in recent months yet has actually gained during the bloodbath of last week. Carsales.com is the online automotive, motorcycle and marine classifieds business in Australia. Together with its subsidiaries employing more than 800 people in Australia, CAR develops world technology and advertising solutions that drive its business around the world.
Known to have a good, dynamic pricing model, the company is currently putting some focus in entering the booming used car market, where they look to “flip” them – ie: buy, touch-up, sell.
They are also cautiously considering entering the U.S market where there is currently lower levels than Australia in digital advertising penetration rates.
Ampol own one of the last two remaining oil refineries in Australia. A very important infrastructure piece. In addition, they have recently had the support of the federal government which is contributing a variable amount per year up to ~ A$100M.
In addition, the Government also intends to contribute 50% of the capital expenditure, up to $125 million, required to undertake infrastructure upgrades to accelerate the introduction of ultra-low sulfur petrol.
In the Construction and Engineering industry, JLG makes the bulk of its revenue from building work for the insurance industry. They have pricing power whereby costs are passed through contractors to the insurers.
Given climate change events creating damage more regularly these days, they receive
plenty of business regardless of economic conditions.
For any detailed announcements or reports from these or any ASX stocks, in the Tiger Trade apps go to the QUOTE / ORDER book section and click on the FILING heading, as you see here below.
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james hardie is good buy! same as Fletcher Building (tgt 6.9)