Stock Picks
We are not out of the woods just yet, EasyVSTRs, but gauging from the diversity of some of the most popular share selections across the platform over the last week, our EasyVSTRs are well informed.
Let’s look at 3 of the most popular stocks across EasyWallets for the week:
EasyAUD
Cleanaway Waste Management Limited (CWY)
The consumer staples sector comes as no surprise during times of market uncertainty and it is this week’s EasyResearch ASX pick for the long run. Consumer staples are usually non-cyclical businesses that see a demand for their products all year round regardless. These everyday items include food products, beverages, hygiene products, household goods, and alcohol and tobacco.
All that consumer consumption becomes waste that needs to be removed, bringing Cleanaway Waste Management Limited into focus. The company provides waste management, industrial, and environmental services throughout Australia across three segments: Solid Waste Services, Industrial & Waste Services, and Liquid Waste & Health Services.
- Share Price: AU$ 3.02
- Market Cap: AU$ 6.29 billion.
- P/E Ratio (TTM): 52.3x
- P/B Ratio: 2.3x
- Dividend (Current TTM Yield %): 1.59%
- Franking: 25%
- 52 Week range low of AU$ 2.45 and AU$ 3.31 share high.
Outlook – The share price has seen momentum to the upside despite some volatile moves over the last year. The waste company's latest trading statement showed that it expects its EBITDA would be $15 million to $20 million lower than anticipated in FY 2022. This was due to higher-than-expected fuel and labour costs and one-off operational disruption.
Looking through the uncertainty, Cleanaway Waste Management still has modest debt levels and a low debt/earnings ratio compared to its peer group. Waste management is an essential utility service that makes Cleanaway Waste Management such an attractive option to look at. The United Nations Global Waste Management Outlook estimates global waste will rise by 2 billion tonnes of municipal waste per year.
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EasyUSD
Bunge Limited (BG)
The agricultural wonder Bunge is a constituent in our Emperor Enhanced USD Bundle but has also positioned itself as a significant player in renewables, which holds great value.
Bunge Limited operates as an agribusiness and food company across the globe through four segments: Agribusiness, Refined, and Specialty Oils, Milling, and Sugar and Bioenergy. Its primary purpose is to connect farmers to consumers and deliver essential food, feed, and fuel to the world.
The new joint venture between Bunge and Chevron will create renewable fuel feedstocks by leveraging Bunge's expertise in oilseed processing and farmer relationships and Chevron's expertise in fuel manufacturing and marketing. The new venture will be called Bunge Chevron Ag Renewables LLC, and the growth story will be one to watch over the years.
- Share Price: $ 113.72
- Market Cap: $ 17.25 billion.
- P/E Ratio (TTM): 9.0x
- P/B Ratio: 2.0x
- Dividend (Current TTM Yield %): 1.85%
- 52 Week range low of $ 71.73 and $ 128.40 share high.
Outlook – Bunge has seen solid earnings revision estimates over the last month and has increased its yearly price consensus from $10.06 a share to $ 11.95 a share. By our calculations, Bunge holds excellent value in the consumer staples sector at a trailing price-to-earnings ratio (P/E) of 9.0. The best part is the Agri company has increased its regular quarterly cash dividend to $0.625 per share.
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EasyZAR
Thungela Resources Limited (TGA)
The thermal coal producer and exporter Thungela Resources Limited has been a firm favorite under the EasyVSTR community and holds a top 5 spot for the most bought shares at easy this week.
The miner has an interest in seven mining operations in the Mpumalanga province and has seen its share price gain significantly on the rising demand for coal across Europe and the globe. The share price has increased over 200% year to date, and European demand for coal is still surging, with global demand forecast for coal to surge by 80% according to The World Bank in 2022.
Thungela Resources Limited also posted its latest scorecard for its annual results for the period ended 31 December 2021 in March. The earnings report showed a robust set of numbers across the top and bottom line, seeing the miner declare its maiden dividend. The forward guidance was also positive and expected to benefit from solid coal fundamentals in 2022.
- Share Price: R 250.50
- Market Cap: R 35.69 billion.
- P/E Ratio (TTM): 3.93x
- P/B Ratio: 2.1x
- Dividend (TTM Yield %): 6.87%
- 52 Week range low of R 20.66 and R 280.00 share high.
Outlook – Thungela has become profitable and is trading below its fair value by our estimates and should benefit from higher coal prices if the geo-political turmoil persists. The share price could see some near-term headwinds as miners have to transport their minerals by trucks to shipping ports due to a deteriorating Transnet's freight rail service.
Transporting coal and other minerals by truck is about four times higher than by freight rail. This means that coal miners can absorb the higher prices for now but could see the impact if higher coal prices are affected
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Sources – EasyResearch, Australian Securities Exchange (ASX), Australian Securities & Investments Commission (ASIC), Koyfin, Reuters, Zacks, Markets Insider, Cleanaway Waste Management Limited, Bunge Limited (BG), United Nations Global Waste Management Outlook, Thungela Resources Limited, The World Bank, U.S Energy Information Administration (eia).
Take note: Stocks mentioned form part of the most bought stock data over the second week in May, EasyResearch and Emperor Asset Management Bundles selections, and Fundamental stock data were taken on 24/05/2022.
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.
