Three stocks that delivered the goods
October 2023
Three companies in our direct share portfolio stood out in the September quarter, each recording strong share price performance and impressing the market with profit announcements.
Carsales.com (ASX:CAR)
The global automotive and marine classifieds business experienced share price growth of 17.3% over the quarter, buoyed by strong full year results and a jump in used cars for sale.1
Wait times for new vehicles almost halved over the past 12 months as the supply chain bottleneck triggered by the pandemic eased. With new cars easier to purchase, listings for second-hand vehicles on Carsales.com have increased and pushed its revenue higher.
Second hand car prices are falling too – by an average 11.3% in the 12 months to August – but are not yet back to pre-pandemic levels. Reinvigorated migration since the reopening of Australia’s borders is one factor expected to fuel demand for used cars for the time being, though Moody’s predicts demand for both new and used vehicles will continue to ease into the new year.
Goodman Group (ASX:GMG)
This blue-chip stock is one of the leaders when it comes to Australian real estate investment trusts (A-REITs), with a focus on industrial property.
During the September quarter Goodman Group recorded a 17-month high in its share price and overall price growth of 6.9%1. The property manager beat full year earnings expectations, and its industrial property and funds management business have continued to do well. Its fortunes are in contrast to some A-REITs which focus on office buildings and have suffered as employers cut back on floor space due to the WFH phenomenon.
Goodman has always been good at picking trends, and industrial property remains in high demand. Almost one-third of its current property developments are data centres – a sector that is booming with the rise in artificial intelligence. Its further investment in social infrastructure is a solid diversification play.2
Woodside Energy (ASX:WDS)
The fortunes of this oil and gas giant are underpinned by commodity and energy prices – which is a big reason it produced a nine-month share price high in the September quarter and overall price growth of 6%. 1
There was little media fanfare over its half-year results in August with journalists more focused on the board ructions at rival Fortescue Metals. But an increase in its interim dividend and investment in “new energy” projects such as hydrogen and ammonia were well-received by the market.
Woodside says these technologies are emerging in scale but expected to grow in significance as global economies transition to net zero.
Rising oil prices – as reflected in Australia’s inflation figures – have some market pundits predicting further upside for Woodside.
1 Source: ASX
2 Source: Goodman, 17 August 2023
Past performance is not a reliable indicator of future performance.
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