Australia Stock Alert

AUSTR

CLOSING UPDATE: Wesfarmers increases 0.4%, led S&P/ASX 200 Consumer Staples index higher October 20, 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 0.4% to trade at $A43.10 vs. the S&P/ASX 200 Consumer Staples index which strengthened 50.3 points (or 0.5%) to 9,769.6. Representing a weighting of about 43.3% of the index, the stock accounted for 36.6% of today's gain. Trading volume was 79% of average at the end of the day. Compared with the All Ordinaries Index which rose 8.8 points (or 0.1%) in the day, this represented a relative price increase of 0.3%.

Technical indicators complementing today's significant uptrend:

+ The positive 0.4 MACD (Moving Average Convergence Divergence) indicator suggests a bullish signal.

+ The price increased 1.9% in the last week and climbed 4.5% 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 2.7% to the 12-month high of $A44.32 on 31 Mar, 2017. It is at a premium of 14.6% 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 ALERTS

Afternoon Alert: Wesfarmers in 10th consecutive rise, nears eight-month high

October 20, 2017 13:00:00 AEST

Wesfarmers Limited (ASX:WES) extended its gains Friday, rising an additional 30.0c (or 0.7%) to trade at $A43.21. The stock increased 0.35% on Wednesday and 0.37% on Thursday bringing its 10-day rise to 5.5%. It is now approaching its 160-day high of $A43.27.

Morning Alert: Wesfarmers increases 0.1%

October 20, 2017 11:00:00 AEST

Wesfarmers Limited (ASX:WES) has increased 6.0c (or 0.1%) to trade at $A42.97.

RECENT ALERTS

CLOSING UPDATE: Wesfarmers decreases gains by 0.3%, led Food & staples retailing sector higher

October 19, 2017 16:00:00 AEST

Wesfarmers, Australia's largest food & staples retailing company by market capitalisation, has increased 0.4% to trade at $A42.91 vs. the Food & staples retailing sector which strengthened 24.4 points (or 0.4%) to 6,308.7. Representing a weighting of about 57.2% of the sector, the stock accounted for 54.3% of today's gain. Trading volume was 1.1 times average at the end of the day. Compared with the All Ordinaries Index which rose 5.0 points (or 0.08%) in the day, this represented a relative price increase of 0.3%.

Afternoon Alert: Wesfarmers increases 0.6%, leads S&P/ASX 200 Consumer Staples index higher

October 19, 2017 13:00:00 AEST

Wesfarmers Limited (ASX:WES) has increased 0.6% to trade at $A43.02 vs. the S&P/ASX 200 Consumer Staples index which strengthened 77.4 points (or 0.8%) to 9,742.2. Representing a weighting of about 43.4% of the index, the stock accounted for 34.7% of today's gain.

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

ISIN: AU000000WES1

PermID: 4295857467

Source: www.BuySellSignals.com