We're (somehow) now in early February of 2024. That means that ASX reporting season is upon us. Every six months, most ASX shares show investors their report card for (usually) the preceding six-month period. This means that over the rest of this month, and into next, we'll get a look at how the six months to 31 December 2023 treated the companies on the ASX.
Reporting season is one of the biggest ASX events of the year. It usually sets the trend for most stocks' share prices over the following months and can make or break a company's share price fortunes.
So it goes without saying that most investors will be paying attention to what their companies have to say over the coming weeks.
But today, I want to discuss seven ASX shares that I'll personally be watching this reporting season. I think their results will be must-sees this month and will dictate the mood of the markets over the coming six months.
7 ASX 200 shares I'm watching this reporting season
First up is the big one, Commonwealth Bank of Australia (ASX: CBA). As the largest ASX 200 bank stock on the market, CBA often leads the ASX pack during reporting season, announcing its results relatively early. As one of the largest companies on the market, as well as one of the most widely-held stocks in Australia, CBA's earnings often set the mood for the entire season.
If CBA bears good news, ideally a dividend hike, it can indicate a humming Australian economy, which is obviously good news for all ASX shares. CBA's results also give us a good indication of what might come out of the other ASX 200 banks.
CBA is actually the only member of the big four that conforms to the normal ASX reporting season schedule. But I'll also be watching out for the trading updates that we'll likely see from the other banks like Westpac Banking Corp (ASX: WBC).
Next, I'll be watching the big mining stocks' reports, particularly that of BHP Group Ltd (ASX: BHP). Behind the banks, the big miners like BHP are responsible for a vast chunk of the dividends available to investors on our share market. The miners are also good harbingers of the health of both the global and Australian economies – not to mention the Federal Government's budget.
So again, if we see good earnings and generous dividends from the likes of BHP, it's going to help set the tone of the entire market.
It's a similar story with Woodside Energy Group Ltd (ASX: WDS). BHP might be the largest miner on the ASX, but Woodside is the largest ASX 200 energy stock. It's another strong source of dividend income, and its earnings should give some additional insight into the global and local economies.
Barometers of inflation and the economy
Next, I'll be paying attention to what both Woolworths Group Ltd (ASX: WOW) and Coles Group Ltd (ASX: COL) have to say this ASX reporting season.
As the largest grocers and consumer staples providers in the country, both Coles and Woolies can offer some unique insights into economic factors like inflation. These companies' results can tell us a great deal about whether Australians are absorbing cost of living pressures or whether they are hitting hard. I'll be watching Coles' and Woolies' earnings and dividends with great interest this month.
My final stock on the ASX reporting season watchlist is Telstra Group Ltd (ASX: TLS). Telstra delighted investors with another dividend hike last year. As one of the most widely-held dividend payers on the ASX (including by yours truly), Telstra's dividend decisions every reporting season are closely watched.
If the company delivers another dividend hike later this month, it will go a long way in setting the tone for the ASX's 2024 in my view.
