Building related stocks

Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.

Ask a question

The Latest Q&A

Question asked 19/04/2022

Building related stocks

Thanks for your views on building related stocks. I also hold some ABC stock, and wonder what your views are on them? Are they worth keeping?

Answer

Hi John,

ABC is probably our least favored building stock due to the products it makes and as JP Morgan highlighted this week, the near term impacts from weather related events has slowed down construction which will take time to work through. We don’t see ABC recovering this year and prefer CSR, JHX and even RWC which we covered early last week.

chart

Adbri (ABC)

LAST UPDATED 14/04/2022 11:41

Latest Reports

Alerts 19/04/2024

Trade Alerts – Active Growth Portfolio

We are taking a loss on RMD and switching into CSL, while also adding CAR to the Active Growth Portfolio

Morning report 19/04/2024

What Matters Today: How and when should we fade rising bond yields?

Through March and April, we discussed how indices were priced for perfection on the interest rate front. Now, as reality sets in, we consider if/when and how we should consider fading this “less dovish” outlook for US rate cuts. Just like squeezing an orange, removing the last 10% of the juice is far more complex than the first 10%, and this is the case for inflation, which has been demonstrated perfectly over recent months. However, arguably the biggest issue for the Fed and other central banks is the inflationary implications of an elevated oil price courtesy of the tensions in the Middle East, an issue well beyond the influence of Jerome Powell et al. The mantra of “higher for longer” concerning rates feels on point at the moment, which has been the subsequent cause of April's weakness in equities.