Jessica Amir Highlights Key Market Insights at ASA Investor Conference 2024
At the Australian Shareholders Association (ASA) Annual Investor Conference, moomoo's market strategist Jessica Amir, presented Buy Hold Sell, sharing her analysis and thinking on 20 Aussie listed stocks. Jessica Amir was alongside another industry analyst, Henry Jennings. Some of the stocks covered on the evening in Melbourne have outperformed the pin-up stock, Nvidia, and delivered better shareholder returns for investors than the world's third biggest company. At the backbone of Jessica's calls, she considered the current market dynamics, the company's client book, their financial metrics, outlook, tailwinds and risks. Above all, Jessica's findings are classified as general in nature and are not classified as advice.
Global Market Trends and Economic Shifts
Amir believes that when it comes to picking stocks, we need to consider macroeconomic factors. Such as financial conditions easing. Starting in June, the Federal Reserve will begin phasing out Quantitative Tightening (QT), which has bolstered investor confidence.
Italy has emerged as the best-performing global market, with a 17% increase. Over the past five years, the Nasdaq 100 and the S&P 500 have significantly outperformed Australia's ASX 200, showing gains of 151% and 86% respectively, compared to the ASX 200’s 23%. Amir emphasized that Australian investors can no longer ignore the potential of US stocks.
Commodity Prices and Economic Impact
Amir also highlighted that commodity prices have significantly rallied and this has been a huge tailwind for some commodity companies. Copper, silver, and nickel prices have surged due to the push towards green transformation and stronger-than-expected economic growth. Copper is up 24% year-to-date (YTD), nickel 27%, and gold 17%. These price increases are boosting commodity companies' earnings, and benefiting economies that rely on these resources.
Stock Analysis: Highlights and Recommendations
During her presentation, Amir covered 20 stocks, providing insights for both short-term traders and long-term investors. Here are some highlights;
DroneShield (DRO): DroneShield has seen a remarkable 143% surge in shares YTD, which means it has outperformed Nvidia's shares. The company has secured substantial contracts with the US and Australian governments and recently inked a deal with NATO. Amir suggested if clients are interested in buying into the company that they look for down days as opportunities, given the company's strong earnings potential and government backing.
Mineral Resources (MIN): Although currently in an earnings downgrade cycle, Mineral Resources remains a solid long-term buy. The company’s significant exposure to lithium and iron ore positions it well for future growth, despite a modest revenue growth expectation of 1% this year.
Nick Scali (NCK): With shares up 16.31% YTD, Nick Scali is facing an earnings downgrade. However, upcoming tax cuts and energy bill rebates from the Australian government could provide a boost to consumer stocks, making it a buy for some analysts.
Pilbara Minerals (PLS): Pilbara Minerals has shown steady performance, with shares up 5% YTD. Despite recent earnings downgrades and volatility in lithium prices, the company’s strong client base, including the world’s largest battery maker CATL, makes it a potential long-term investment.
Southern Cross Electrical Engineering (SXE): SXE shares have surged 87% YTD, benefiting from its niche in providing electrical engineering services to data centres. With strong earnings growth expected, SXE is an attractive opportunity for investors, according to Amir.
Telix Pharmaceuticals (TLX): This biopharmaceutical company has seen shares rise by 46% YTD. With significant revenue growth and promising advancements in oncology treatments, TLX is recommended by several investment banks as a hold or accumulate.
Amir concluded her discussion with a balanced view on several other stocks, including Westpac (WBC), which has seen a 17% rise YTD, and Telstra (TLS), which she noted as a cautious trade opportunity.
The ASA Investor Conference, with its robust discussions and expert insights from speakers like Jessica Amir, provided valuable guidance for investors, underscoring the importance of strategic stock selection and the benefits of global market diversification.
For more information on the event, visit the ASA Investor Conference page.
All information presented is considered general in nature and is not classified as personal advice.
