These 5 shares are crushing the S&P/ASX 200 in 2016

Credit: RickBakas

Last week we saw the S&P/ASX 200 (INDEXASX:XJO) climb just 0.47%, finishing the week at 4,916 points.

China’s share-market remains the major catalyst for the weakness this month, slumping 18 per cent since the start of the year. We saw the Australian Dollar (A$) (AUDUSD) improve slightly from US68 cents to a fraction over US70 cents, and we watched the price of Brent crude oil climb over 10% to finish at $US32.18 on Friday.

While our share-market remains reasonably flat, there are a number a star shares that have outperformed in 2016.

Treasury Wine Estates Ltd (ASX: TWE) had an outstanding week last week, smashing the S&P/ASX 200 by 19.26%.


Last week TWE raised its profit guidance, announcing that based on preliminary, unaudited accounts, Earnings Before Interest, Tax and SGARA (EBITS) for the six months ended 31 December 2015 will be in the range of A$140 – A$150 million; above analyst consensus of circa A$120 million.

TWE Chief Executive Officer, Michael Clarke commented: “I am delighted to report a strong first half result across all regions. Our Asia business performance is particularly pleasing as we benefited from increased shipments to the region ahead of Chinese New Year in February”.

Northern Star Resources Ltd (ASX: NST) had a cracking week last week, beating the S&P/ASX 200 by 16%. a0prx[1]

Last week Northern Star provided a trading update for the December 2015 quarter. The company produced 145,253oz of gold in the quarter, which was at the upper end of its FY16 guidance of 535,000 – 570,000oz. All-in sustaining costs (AISC) for the quarter were A$1,040/oz, which is below the bottom end of its A$1,050 – A$1,100/oz guidance range for FY16.

Northern Star Managing Director Bill Beament said, “The combination of the strong operational results and the healthy Australian-dollar gold price highlighted the company’s capacity to generate substantial cashflow”.

Northern Star had an extremely strong December quarter on all fronts, culminating in total cash, bullion and investments rising by another A$30 million to A$226 million.

“We produced gold at the rate of 580,000ozpa in the December Quarter,” Mr Beament said. “We did this at an AISC of A$1,040/oz compared with the current gold price of ~A$1,550/oz. This has enabled us to continue growing our cash balance while also paying dividends and investing in an organic growth strategy that will see us increase production to 700,000ozpa without losing our debt-free status.”

Medibank Private Ltd (ASX: MPL) had a fantastic week last week, beating the S&P/ASX 200 by 15.81%


Last week Medibank’s unaudited financials suggested operating profit of $270 million for the six months to December 31. It now anticipates full year operating profit to exceed $470 million, $100 million above its previous guidance.

Managing Director George Savvides said he was pleased that the success of Medibank’s strategic health cost leadership initiatives will enable the company to invest in providing more member benefits and value, and support member acquisition and retention.

The operating profit result reflects better-than-expected claims expense outcomes as a consequence of Medibank’s payment integrity program, improved hospital contracting, and product and mix changes. As well as a slowdown in the growth of hospital utilisation.

The company provided additional updates to its financial targets for the year ending 30 June 2016 (FY16). The revised FY16 targets included premium revenue growth of between 4.5% and 5% (previously “above 5.5%”), and a management expense ratio of 8.5% (previously “8.3%”).

Metcash Limited (ASX: MTS) had an outstanding week last week, beating the S&P/ASX 200 by 15.5%.


Last week Metcash reported Profit after Tax (including discontinued operations) was up 20% to $122m (1H2015: $101.7m). Underlying EBIT however declined 12.7% to $133.7m (1H2015: $153.2m). While there was an improvement in both the Liquor and Hardware profit, this was more than offset by the decline in Food & Grocery, which was impacted by the incremental investment in price in 1H2016.

Group CEO, Ian Morrice, said; “We continue to invest in the group’s turnaround. While we are still experiencing highly competitive trading conditions and price deflation, we are seeing evidence the Transformation Plan is producing positive results across the group. Importantly, we have seen a continuing improvement in the sales trend for the Food and Grocery Pillar.

Total Liquor sales increased 3.5% to $1.54b (1H2015: $1.48b), another strong result in a flat liquor market. Wholesale sales through the IGA retail network increased 4.4%, reflecting a strong operational performance, store conversions to the IGA network and acquisitions.

“We have also commenced ‘Working Smarter’, the next stage of the Group’s Transformation Plan, designed to reduce complexity, make it simpler for customers and suppliers to do business with Metcash and to reduce our cost of doing business”, said Mr Morrice.

OZ Minerals Limited (ASX: OZL) was a star performer last week, beating the S&P/ASX 200 by 13.4%.


Last week OZ Minerals reported a record year of production, hitting the higher end of its target for copper and exceeding its own guidance for gold production. Total gold production was 113,028 ounces for the 12 months to December, beating the annual guidance of 100k to 110k ounces, it had forecast.

Managing Director and CEO, Andrew Cole said, “We’ve had a record year of production and even with the current state of commodity prices, Prominent Hill is generating very significant cash flows with healthy margins.”

The company also recorded copper output of 130,305 metric tonnes, up from 92,615 tons a year earlier and at the high end of its 126,000 to 131,000 tonne projection.

“Our focus in 2015, which is to become a lean business, has driven down our costs whilst improving our operational output and reliability. This sets us up for another strong year in 2016,“ said Mr Cole.

OZL ended the year with A$553 million in cash (unaudited), and is now debt-free.

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