Top broker Macquarie Group Ltd (ASX: MQG) has highlighted 7 favourable ASX 200 stocks with earnings upgrades and positive momentum.
To navigate potential earnings downgrades during the Australian winter and reporting season, the broker is focusing on stocks that have expected 2026 earnings per share upgrades and which are in the positive phase of the momentum cycle.
It also plans to avoid too much exposure to stocks with recent downgrades and weaker momentum.
In a recent note to investors, the broker notes the importance of managing risk exposure over the coming months. It commented that the "ASX is only down 2% since the recent high on June 11 as Middle East tensions started to drive a spike in oil prices, but the number of stocks in Stage 4 (with weaker momentum) has doubled".
Here's a breakdown of the ASX 200 stocks Macquarie Group currently favours.
QBE Insurance Group (ASX: QBE)
QBE's share price has slipped 0.43% today, down to $23.37 at the time of writing.
But the insurance group's stock price has steadily risen over the past year, up 33%. It's up around 1% over the past month.
The broker has a price target of $23 on QBE's stock.
GPT Group (ASX: GPT)
GPT is one of Australia's largest listed property trusts, with major exposure to retail, office, and logistics assets.
The group's share price has risen 1% at the time of writing, up to $5.06. The share price has risen steadily since March this year, up around 5%, and is 21% higher over the year.
Macquarie has a price target of $5.38 on GPT's stock.
ResMed Inc (ASX: RMD)
ResMed's share price has slipped 0.67% at the time of writing to $39.08. The share price has risen sharply by around 19% since late April this year thanks to strong earnings and receding fears or changes in investor sentiment.
Over the year, ResMed's share price is 41% higher.
Macquarie has a price target of $48.00 on ResMed stock.
Metcash Ltd (ASX: MTS)
Metcash is a wholesaler and retailer in the consumer staples sector, operating in the food, liquor, and hardware businesses.
Its share price has risen 2.76% so far today to $3.91. Following strong full-year results, the share price has jumped 15% over the month alone and is now up around 6% over the year.
Macquarie has a price target of $3.70 on Metcash stock.
Atlas Arteria Ltd (ASX: ALX)
Atlas Arteria, formerly known as Macquarie Atlas Roads, is one of the world's largest developers and operators of private toll roads.
The company's share price is down 2.23% currently, trading at $5.25. The current price represents an around 9% recovery since it dipped in April this year when its shares went ex-dividend.
Over the year, Atlas' share price is up 3%.
Macquarie has a price target of $5.51 on ALX stock.
APA Group (ASX: APA)
APA's share price has slipped 2.19% at the time of writing to $8.48. But since late February this year, the share price has soared by around 30% after the company revealed strong half-year results. Over the year, APA's share price is 1% higher.
Macquarie has a price target of $8.14 on APA stock.
Orica Ltd (ASX: ORI)
Orica's share price is 1.42% higher today, trading hands at $19.24 at the time of writing. Like many other stocks in this list, Orica's share price surged in mid-April. Over the past two months, supported by its buyback program, the company's share price has jumped around 26%; over the year, it has risen 8%.
Macquarie has a price target of $21.48 on Orica stock.
