MENU

Why the SEEK share price just hit a 52-week low

The SEEK Limited (ASX: SEK) share price hit a 52-week low of $16.30 this morning as investors continue to fret over the outlook for new job listings in Australia in 2019.

Recently broker Citigroup estimated that new job listings for SEEK fell around 1% over November 2018 and its core business remains reliant on the revenue from new job listings.

SEEK is probably more leveraged to the economic cycle than digital classifieds rivals REA Group Limited (ASX: REA) or Carsales.Com Ltd (ASX: CAR) as companies in the mining or hospitality sectors for example will hire a lot more during good economic times. For example when commodity prices are high and rising miners will hire a lot more, although the reverse is true on the way down.

As such the outlook for SEEK in 2019 looks tough, despite its South East Asian operations and Chinese business Zhaopin.

The latter is growing its top-line strongly, but at a heavy investment cost, which is a similar pattern across the group for SEEK at the moment as it reinvests heavily in order to defend its competitive position, develop technology and grow its businesses. However, it still trades on a high valuation given the flat profit growth.

OUR #1 dividend pick to grow your wealth in 2019 is revealed for FREE here!

Our top dividend stock pick for 2019 currently boasts a 5.4% dividend yield (fully franked). I believe it’s a perfect fit for a well-diversified, income-focused portfolio.

Even better, this yield comes attached to an attractive and still-growing business which could keep expanding throughout Australia and New Zealand for years to come. With disciplined management, and a long track record of building wealth for shareholders, this company is a serious candidate for any income-minded investor’s portfolio.

Simply click here to grab your FREE copy of this up-to-the-minute research report on our #1 dividend share recommendation now.

Motley Fool contributor Tom Richardson owns shares of SEEK Limited.

You can find Tom on Twitter @tommyr345

The Motley Fool Australia has recommended SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The 5 mining stocks we’re recommending in 2019…

For decades, Australian mining companies have minted money for individual investors like you and me. But if you believe the pundits and talking heads on TV, those days are long gone. Finito! Behind us forever…

We say nothing could be further from the truth. To earn the really massive returns, you’ve got to fish where others aren’t fishing—and the mining sector could be primed for a resurgence. That’s why top Motley Fool analysts just revealed their exciting new research on 5 ASX miners they believe could help you profit in 2019 and beyond…

Including:

The best way we see to play the global zinc shortage… Our #1 favourite large-cap miner (hint: it’s not BHP)… one early-stage gold miner we think could hit the motherlode… Plus two more surprising companies you probably haven’t heard of yet!

For free access to our brand-new research, simply click here or the link below. But be warned, this research is available free for a limited time only, and we reserve the right to withdraw it at any time.

Click here for your FREE report!