Alpha Recommendation: BUY Amaero International Ltd (3DA)
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This week, mega-cap earnings disappoint as investors ask “where’s the revenue”, US economy starts to show cracks and middle east conflict flares up (again)
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Stocks closed higher for the sixth straight session Thursday, as fears of an economic slowdown were dispelled following stronger-than-expected labor market and retail sales data.
We recommend reallocating 2% of our portfolio from Elders (ELD) to Nufarm (GNC). This decision is based on the realization of a 9.2% profit in Elders and the assessment that Nufarm is currently undervalued, as supported by its recent earnings report and market conditions.
Stocks drifted higher driven by encouraging data showing a continued slowdown in inflation. This has raised expectations that the Federal Reserve might soon begin cutting interest rates, potentially as early as next month.
Stocks surged overnight as fresh evidence of easing inflation bolstered expectations for a Federal Reserve rate cut as early as next month, causing Treasury yields to drop.
Overall, Challenger’s financial results for FY2024 appear to have exceeded market expectations, particularly in terms of profitability and EPS growth, despite slightly lower total Life sales. The company’s performance has been recognized by an increased dividend and a positive outlook from most analysts.