Can these stocks supercharge your portfolio? BHP, FMG, ALL, WOR, ORG, FLT, QAN, PMV, ANZ, TLS

  • May 16, 2020 AEST
  • Team Kalkine
Can these stocks supercharge your portfolio? BHP, FMG, ALL, WOR, ORG, FLT, QAN, PMV, ANZ, TLS

After achieving success in the COVID-19 battle, the Australian economy has started on the road to recovery. The markets reflected the commendable job done by the government and rose substantially (~9 per cent) in April 2020. However, things have been different this past week.

If we look at the last few days, the benchmark index S&P/ASX200 has shown a fluctuating trend. It has gone up and down every other day starting 11 May. Continuing the pattern on Friday, 15 May, the market ended in the green zone, while on Thursday it closed at 5328.7 points, a fall of 1.72 per cent.

In such a swerving market, let us discuss ten ASX-listed stocks and their respective performances.

BHP Group Limited (ASX:BHP) is a mining company based in Australia. The Company has pledged to help in stopping the community spread of the virus and keep its workforce healthy. BHP's financial position remains healthy during the great virus crisis (GVC), thanks to the low-cost operations. The Company is expected to generate substantial cash flow, as its business continues to demonstrate resilience.

For the quarter ended 31 March 2020, BHP at Western Australia Iron Ore (WAIO) and Caval Ridge, reported record production. At Spence, record ore was stacked, and at Escondida, record average concentrator throughput was delivered.

On 15 May 2020, BHP stock ended the day at AU$31.670, up by 3.463 per cent compared to the previous close. The Company has a market cap of AU$90.17 billion, with ~2.95 billion shares outstanding.

Fortescue Metals Group Ltd (ASX:FMG) is a global company in the iron ore industry. It reported 10 per cent higher iron ore shipments of 42.3 million tonnes in Q3 FY20 as compared to Q3 FY19. Robust demand for FMG’s products resulted in a US$73/dry metric tonne (dmt) average revenue.

The Company received net cash of US$0.1 billion, compared to net debt of US$2.9 billion in Q3, and there was a robust free cash flow generation of US$4.2 billion at 31 March 2020. Due to the impressive performance, guidance for FY20 shipments is improved to 175 - 177 m tonnes.

On 15 May 2020, FMG stock ended the day at AU$12.550, up by 4.149 per cent compared to the previous close. The Company has a market cap of AU$37.1 billion, with ~3.08 billion shares outstanding.

 

Aristocrat Leisure Limited's (ASX:ALL) digital business performance remains strong with high bookings and player engagement across most of the portfolio. ALL’s balance sheet is robust, and the available liquidity is more than AU$1 billion. The Company has taken significant steps to optimize cash reserves and drive savings, FY20 interim dividend is suspended.

On 15 May 2020, ALL stock ended the day at AU$25.220, down by 0.982 per cent compared to the previous close. The Company has a market cap of AU$16.26 billion, with ~638.54 million shares outstanding.

Worley Limited (ASX:WOR) supports a project lifecycle by offering engineering, procurement, construction, consulting and advisory services. The Company has recently strengthened its liquidity position by adding new debt facilities of AU$465 million. It reduced its headcount by five per cent, primarily in lower margin construction-related activities. Chargeable hours are decreased by two per cent over March 2020.

On 15 May 2020, WOR stock ended the day at AU$7.900, up by 1.023 per cent compared to the previous close. The Company has a market cap of AU$4.07 billion, with ~520.39 million shares outstanding.

Origin Energy Limited (ASX:ORG) has recently entered into a strategic alliance with Octopus Energy to boost its retail business. Apart from the AU$100 million cost-out program, the Company is targeting pre-tax cash savings of AU$70-80 million in FY2022 and increasing it to AU$100-150 million annually from FY2024. The Company is delivering sustainable value for employees, customers, and shareholders.

On 15 May 2020, WOR stock ended the day at AU$5.380, up by 2.868 per cent compared to the previous close. The Company has a market cap of AU$9.21 billion, with ~1.76 billion shares outstanding.

The Flight Centre Travel Group (ASX:FLT) has successfully completed its Retail Entitlement Offer of fully paid New Shares. The Retail Entitlement Offer raised AU$138 million at AU$7.20 per New Share (Offer Price).

The combined of institutional placement and an institutional component of the Entitlement Offer (Offer) makes the whole amount raised under the Retail Entitlement Offer to approximately AU$700 million.

On 15 May 2020, FLT stock ended the day at AU$10.000, down by 0.398 per cent compared to the previous close. The Company has a market cap of AU$2 billion, with ~198.9 million shares outstanding.

Qantas Airways Limited (ASX:QAN) has secured a further AU$550 million in debt funding. The lower cash burn rate and healthy cash balance make it manageable for the Company to face the ongoing pandemic crisis. When the global aviation industry is going through the worst phase, Qantas Airways is facing the challenges comparatively better and expected to recover fast.

On 15 May 2020, QAN stock ended the day at AU$3.350, up by 0.601 per cent compared to the previous close. The Company has a market cap of AU$4.96 billion, with ~1.49 billion shares outstanding.

Premier Investments Limited (ASX:PMV) The closing of retail stores due to lockdown restrictions significantly affected the total sales. However, since the beginning of store closures, its online sales in Australia increased.

Company's online brand in Australia, Peter Alexander kept breaking its weekly records for six weeks ended on 6 May. The sales were up by 295 per cent.

The online brand performed so well that its sales alone were more than 18 per cent as compared to last year's total sales across the entire 122 store, online sales, and concession network in Australia.

Over the year, Company majorly invested in digital technology, marketing initiatives, and people to offer a top-notch platform and world-class customer experience.

On 15 May 2020, PMV stock ended the day at AU$15.300, up by 0.99 per cent compared to the previous close. The Company has a market cap of AU$2.4 billion, with ~158.47 million shares outstanding.

Australia and New Zealand Banking Group Limited (ASX:ANZ) remained well-capitalized on 31 March 2020 with a total capital ratio of 13.9 per cent, up from 13.6 per cent at 30 September 2019. During the COVID-19 crisis, ANZ New Zealand is working with the government and regulators to aid retail customers and business in managing their finances.

On 15 May 2020, ANZ stock ended the day at AU$15.440, up by 1.914 per cent compared to the previous close. The Company has a market cap of AU$42.97 billion, with ~2.84 billion shares outstanding.

Telstra Corporation Limited (ASX:TLS) has announced a EUR 500 million bond which has further strengthened its balance sheet. The issue (Notes) will have a 10-year maturity.

Telstra also has secured an additional AU$940 million in bank facilities since mid- March and has a total of AU$3.6 billion of committed bank facilities.

On 15 May 2020, TLS stock ended the day at AU$3.170, up by 1.603 per cent compared to the previous close. The Company has a market cap of AU$37.11 billion, with ~11.89 billion shares outstanding.

All these stocks mentioned above are braving the crisis well, and the companies are taking all measures to continue operations and safeguard themselves in the market.

 


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There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.

Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.

As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.

CLICK HERE FOR YOUR FREE REPORT!
   
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