Analysts name 4 reporting season winners: Do you own these champions?

M2 Group Ltd (ASX:MTU), Ozforex Group Ltd (ASX:OFX) and two other great companies surprised investors this year.

| More on:
a woman

The frantic August 2014 earnings season has come to an end. There were some big winners and big losers, but as analysts enter all the numbers into their records, upgrades and downgrades are made to their outlooks, and subsequent recommendations are issued.

A review of analysts’ recommendations by Bloomberg identified a surprising list of companies that have earned the praise of Australia’s top analysts due to standout results or turnaround potential.

Four Winners

Perhaps unsurprisingly, four of the companies identified by Bloomberg as having an improving standing amongst analysts reported results or outlook statements that surprised shareholders and analysts.

M2 Group Ltd (ASX: MTU) recorded a massive 50% jump in profit and forecast strong organic growth in 2015 following years of acquiring many of its local competitors. M2 made practically every post a winner in 2014 and the share price has made a decisive break to all-time highs as a result. A healthy 4.5% dividend also makes the company a winner for many investors.

Ozforex Group Ltd (ASX: OFX) disappointed investors in July when it pre-announced results that beat company profit forecasts but didn’t include as many active users as expected. The subsequent sell-off makes the company appear cheap for the growth on offer and analysts have become more positive on the group outperforming on lower expectations.

The Reject Shop Limited (ASX: TRS) also disappointed shareholders last financial year as the cost of new store openings slashed group profit. The share price has halved as a result and expectations have never been lower for the previously high-flying company. Analysts are positive on the group’s prospects in 2015 as the new stores will contribute to sales and a further 20 stores will open. Same-store sales will be a key figure to watch.

Legal firm Slater & Gordon Limited (ASX: SGH) reported another terrific set of earnings, which prompted local analysts to become even more positive on the group’s future. The share price has doubled over the last 12 months but could go much higher if the company continues to perform. Acquisitions have been a driver of profit growth and investors will be searching for margin expansion as integration continues.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Andrew Mudie owns shares in MTU and OFX. You can find Andrew on Twitter @andrewmudie. The Motley Fool owns shares in OzForex.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

asx share price competitions represented by businessmen arm wrestling
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

person reading news on mobile phone
⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »