7 ASX shares to watch this reporting season

The upcoming reporting season will be one to remember. Here are 7 highly anticipated ASX shares to watch during the August earnings period.

business man ticking excellent on digital performance chart

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The COVID-19 pandemic is poised to make the upcoming reporting season one to remember for some time. Since late-March, many companies on the ASX have been pulling their full-year earnings guidance and have been unable to provide assurances to investors. On that note, let's take a look at 7 ASX shares that I'll be keeping a close eye on during reporting season.

Afterpay Ltd (ASX: APT)

The Afterpay share price has been a bellwether of overall market enthusiasm during the pandemic. With online shopping and eCommerce platforms thriving during the lockdown period, it will be interesting to see how Afterpay has harnessed the momentum and how the company plans to grow as the overall economy struggles.

BHP Group Ltd (ASX: BHP)

BHP boasts a strong balance sheet and low-cost operations with earnings coming from iron ore, copper and coal. The company recently reported a record-breaking quarterly output of iron ore on the back of robust demand from Chinese steel mills. With iron ore being its biggest money maker, BHP will be one to watch this reporting season, especially for how the company treats its dividend.

Mirvac Group (ASX: MGR)

Mirvac owns and operates a commercial property portfolio that is exposed to office, retail and industrial properties, which, together, account for 59% of group earnings. The coronavirus pandemic has wreaked havoc on retail and other commercial rental incomes so I'll be keen to find out exactly how Mirvac is going at protecting its income streams.

Flight Centre Travel Group Ltd (ASX: FLT)

The pandemic has created an unprecedented challenge for travel and leisure companies like Flight Centre. The company has completed a $700 million equity raising and reduced its annualised operating expenses by $1.9 billion. With domestic travel looking to have a protracted recovery, reporting season will help reveal the full impact the pandemic has had on Flight Centre and how the company plans to recover.

ResMed Inc (ASX: RMD)

This company has emerged as a leader during the pandemic, which has seen the ResMed share price make stellar gains for the year. The company tripled its ventilator production to more than 52,000 units in order to fulfil an urgent contract from the Australian Government. It will be interesting to see how the company has performed during this period and how it is looking to sustain growth beyond the pandemic.

Kogan.com Ltd (ASX: KGN)

Kogan.com is fast becoming a household name, thanks in part to the coronavirus pandemic. During the lockdown period, Kogan's active customer base grew to over 2 million, with an additional 126,000 customers being added in May alone. The online retailer also completed a $115 million capital raising in order to accelerate future acquisition opportunities. With the Kogan share price already looking like investors have priced in the company's recent success, it will be fascinating to see whether Kogan has any upside surprises left to reveal.

Wesfarmers Ltd (ASX: WES)

During the initial lockdown period, many people flocked to complete home improvements and also set up home offices. Wesfarmers owns both Bunnings and Officeworks, which are 2 companies that obviously benefitted from these trends. On the other hand, the company's Target and K-Mart stores have suffered from reduced foot traffic resulting from lockdowns. 

Should you buy?

With the S&P/ASX200 (ASX: XJO) rallying since the peak of the pandemic, many people have thrown out fundamentals and harnessed the momentum through speculation. As a result, the share prices of many companies on the ASX (in my opinion) have been overinflated, whilst others have also been oversold.

I think this reporting season will no doubt reveal the reality and provide investors with some great opportunities. I think a good exercise for investors would be to compile a watchlist of shares they wish to pay close attention to during reporting season in order to take full advantage of these opportunities when they arise.

Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Kogan.com ltd. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited, Kogan.com ltd, and ResMed Inc. 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.

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
ETFs

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 »

Two people in suits arm wrestle on a black and white chess board.
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 »

⏸️ 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 »