Australia Stock Alert

AUSTR

CLOSING UPDATE: Wesfarmers decreases gains by 0.4%, led Food & staples retailing sector higher October 18, 2017 16:00:00 AEST

NEWS BITES - AUSTRALIA

This is an end of day Alert, produced after today's Australian market close. It concludes the BSS News Bites intra-day Alert series (summaries below).

Wesfarmers, Australia's largest food & staples retailing company by market capitalisation, has increased 0.3% to trade at $A42.75 vs. the Food & staples retailing sector which strengthened 14.2 points (or 0.2%) to 6,284.3. Representing a weighting of about 57.2% of the sector, the stock accounted for 87.0% of today's gain. Trading volume was 69% of average at the end of the day. Compared with the All Ordinaries Index which fell 3.3 points (or 0.06%) in the day, this represented a relative price increase of 0.4%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.29 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The price lifted 3.1% in the last week and 3.7% in the last month.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Undervaluation:

+ Dividend yield of 5.2% [4.3%]

Other Bullish Signals include:

+ Interest cover is less leveraged at 16.7 times.

+ Tobin's Q Ratio is 1.2. Compared with the rest of the market the stock is undervalued.

Note

Wesfarmers today is at a discount of 3.5% to the 12-month high of $A44.32 on 31 Mar, 2017. It is at a premium of 13.7% to the 12-month low of $A37.61 on 09 Nov, 2016.

Bearish Signals:

Net profit margin has averaged 2.9% in the last 3 years. This suggests the company is less profitable with a low margin of safety.

As per the Du Pont analysis, Return on Equity of 12.0% is lower than sector average of 13.2%.

Fundamental measures by comparison with the sector average [in brackets] indicate:

Overvaluation:

Price/Sales of 0.7 [0.6]

TODAY'S ALERT

Morning Alert: Wesfarmers increases 0.8%, leads S&P/ASX 200 Consumer Staples index higher

October 18, 2017 11:00:00 AEST

Wesfarmers Limited (ASX:WES) has increased 0.8% to trade at $A42.94 vs. the S&P/ASX 200 Consumer Staples index which strengthened 38.2 points (or 0.4%) to 9,698.4. Representing a weighting of about 43.4% of the index, the stock accounted for 86.8% of today's gain.

RECENT ALERTS

CLOSING UPDATE: Wesfarmers increases 0.4%

October 17, 2017 16:00:00 AEST

Wesfarmers, Australia's largest food & staples retailing company by market capitalisation, traded on volume of 0.8 times average today while the price increased 17.0c (or 0.4%) to trade at $A42.60. Compared with the All Ordinaries Index which rose 40.9 points (or 0.7%) in the day, this represented a relative price change of -0.3%.

Morning Alert: Wesfarmers decreases 0.1%

October 17, 2017 11:00:00 AEST

Wesfarmers Limited (ASX:WES) has decreased 5.0c (or 0.1%) to trade at $A42.38.

Wesfarmers Limited (AU:WES; ASX:WES; AX:WES)

ISIN: AU000000WES1

PermID: 4295857467

Source: www.BuySellSignals.com