Stock Picks
Crikey, the markets have everyone leaving their budgie smugglers next to the billabong to try and avoid the recent market downturn. Luckily our EasyVSTRs know by now that when fear runs rampant in the market, it is usually followed by great opportunities.
3 Aussie stock picks you “Defo” need to check it out!
Pilbara Minerals Limited (PLS)
Soaring demand for Lithium from electric vehicles and renewable energy technology takes center stage in 2022, which focuses on the emerging strategic metal producer Pilbara Minerals.
Pilbara Minerals, one of Australia's largest pure-play Lithium miners located in West Australia's Pilgangoora region, makes lithium spodumene and tantalite concentrate. The miner's core product and significant source of revenue, lithium spodumene, is a crucial input in lithium-ion batteries, which are used across electric vehicles, solar, and other renewable energy sources.
There is no slowing down on demand for Lithium; with an increase in the spot price forecasted to grow over 33% by 2025, demand should continue to outweigh supply. Another catalyst for the Pilbara Minerals Limited share price in the near-term worth noting is the start of earnings season. The miner will report quarterly earnings on the 27th of January 2022, which is expected to beat analyst expectations.
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Macquarie Group Limited (MQG)
Macquarie the diversified financial services provider has gained over 18% since we first identified the company as a stock pick opportunity back in October 2021 at AU$176.70 a share. Macquarie Group operates through four main segments: Macquarie Asset Management (MAM), Banking and Financial Services (BFS), Commodities and Global Markets (CGM), and Macquarie Capital.
The banking and financial services (BFS) arm is growing alarming and has now solidified its position as one of Australia’s big four banks. Over the last week, the offering has also done the unthinkable and has overtaken banking poster child Westpac Banking Corp’s (WBC) market capitalization.
Looking ahead, Macquarie could also be an attractive dividend share with a projected 3% yield in FY22 or a dividend per share of AU$ 6.42 in FY22. Analysts across Citi, JP Morgan, and Morgan Stanley have “Buy” ratings on Macquarie, with Citi’s target price sitting firmly at AU$ 226 a share.
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Goodman Group Stapled Securities FP (GMG)
Higher inflation numbers curb investment apatite, so the first half of the year could see the property become a focal point for investors. Some Australian real estate investment trusts (REITs) even outperformed the benchmark ASX 200 Index and could continue on this trajectory.
Goodman Group could be one to watch over 2022 despite the recent downturn in the broader market. This integrated commercial and industrial property group’s strategy to invest in and develop quality industrial properties in prime locations has paid off and continues to deliver.
Earnings expectations moving forward in 2022 are that the group could continue and beat expectations. Citi is forecasting a 17% growth in FY22 earnings per share (EPS), that’s 2% higher than current analyst predictions with a price target of $27.50 per share.
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Roundup
There are loads more options to choose from across the different sectors on the ASX, and the stocks covered should give you a good starting point. The small-cap sector is exceptionally vibrant. The fast-growing tech sector should not be ignored as the global economy battles some microeconomic headwinds during the first part of 2022.
For those EasyVSTRs who would rather not waste time and grab a whole basket of your favorite FAANG and other tech shares, the BetaShares NASDAQ 100 ETF (NDQ) is worth the look.
New to investing
and want to know more about our other ASX stock picks?
Read: The commodity hunt with explorers
Sources –EasyEquities, Australian Securities Exchange (ASX), Reuters, Pilbara Minerals Limited, Goodman Group, Macquarie Group Limited, Mitchell Lawler, Brooke Cooper, Mitchell Lawler, Koyfin, BetaShares, ielts.com.
Follow Barry Dumas
@BEEF_FINMARKETS
Barry is a market analyst with GT247, with a wealth of experience in the investment markets. Now in his tenth year in the markets, Barry "The Beef" Dumas brings a combination of technical analysis and fundamental insights to the table.
