Harvey Norman (HVN) $5.31

The Australian consumer is getting more confident as rate cuts get more press, if we see mortgages drop by anywhere near 1% it will release plenty of spending capacity back into the economy. People that have been holding off buying furniture, big TV’s etc are going to be more likely to take the plunge, whether with cash or credit. This simple extrapolations isn’t rocket science but explains why HVN has already gained +13.7% so far in 2025. A projected fully franked yield above 4% also helps, as does a relatively muted valuation compared to rival JB Hi Fi (JBH).

• HVN is trading on the expensive side of the ledger but not as much as some of its peers.

• While the easy money might be gone, the tailwinds from lower interest rates while employment remains strong could be significant.