Icarus Signal New Entries For Today

This story features BORAL LIMITED, and other companies. For more info SHARE ANALYSIS: BLD

By Rudi Filapek-Vandyck

What is the best way to benefit from RBA cuts in official interest rates?

History shows banks, media companies, retailers and construction companies should all receive a boost at different stages of RBA monetary loosening cycles, but this time may not simply see a repeat of the past, some experts are arguing. The warning explicitly targets the first three categories as companies in these sectors are still battling with other headwinds and these may not disappear anytime soon, regardless of further interest rate cuts in the months ahead.

That leaves us with building materials and construction companies and it is increasingly obvious that part of the investor community is anticipating better times ahead for the sector. Which is why Boral ((BLD)) has now appeared on Icarus' radar with the shares approaching consensus target on Friday. Investors should note the investment case for Boral remains closely intertwined with prospects for the housing market in the US and while recent data releases have shown encouraging improvements, many an expert remains sceptical about whether US housing is genuinely turning the corner.

Such questions are not always relevant when it comes to short term momentum though. Icarus also spotted shares of GWA International ((GWA)) approaching consensus target, which adds to the observation that at least part of the investment and trading community is chasing undervalued building-related stocks. Note James Hardie ((JHX)) has been trading above target since December. The shares are now well-above target.

Talking about media stocks, News Corp ((NWS)) shares are now also trading above target. The stock has been mentioned a lot recently by equity experts as their favourite media stock for the new year.

There are currently 28 stocks trading in the vicinity of the consensus target, including newcomers WorleyParsons ((WOR)), Campbell Brothers ((CPB)) and Lycopodium ((LYL)) which raises another popular theme for the year ahead; continued outperformance for service providers to the energy and mining sectors.

There are now 35 stocks trading above target, including OM Holdings ((OMH)), Rex Minerals ((RXM)) and uranium "target" Extract Resources ((EXT)) which all accompany News Corp into entering the table post Friday's price action.

Daily update on share prices and consensus price targets.

Investors should consider the information and data are provided for research purposes only.

Stocks <3% Below Consensus

Stocks Above Consensus

Top 50 Stocks Furthest from Consensus

To see the full Icarus Signal, please go to this link

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