Can you guess the best and worst performing sectors during earnings season?

Investors looking to reposition their portfolios may want to read on.

| More on:

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

With earnings season over, investors may be reflecting on last month's results and significant share price moves.

This exercise can provide insight into which companies and sectors have momentum behind them. It can also identify companies that have potentially been oversold, or potential 'buy the dip' opportunities.

In terms of sectors, Macquarie Group Ltd (ASX: MQG) has identified one clear winner and one clear detractor during August.

Two brokers pointing and analysing a share price.

Image source: Getty Images

Winning sector: Gold

Macquarie named ASX gold stocks the best-performing sector during the reporting season. While gold is not technically a sector in itself, and falls within the mining sector, it's a widely recognised subcategory. 

According to Macquarie, the gold sector rose 20.1% during August. The broker noted that this was significant, given that the gold price had risen just 5% during the month. 

However, the broker also said that "the growing expectation that the Fed would ease policy, plus the weaker US Dollar (-2%) both support the gold price and suggest there will be more earnings upgrades for miners."

Interestingly, small-cap gold miners outperformed large-cap gold miners. 

Vault Minerals Ltd (ASX: VAU), with a market capitalisation of $3.8 billion, was the standout performer. The company rose 41% during the month, pleasing investors. 

Back in July, Macquarie had placed a price target of 63 cents on Vault Minerals shares. At the time, they were trading at around 40 cents, suggesting 55% upside over the next 12 months. 

With Vault Minerals shares currently trading at 57 cents, the broker appears to have made a great call on this one, with the ASX gold miner well on its way to achieving this price target.

Detractor: Healthcare

Turning to the biggest disappointments of last month, Macquarie named healthcare as the worst-performing sector in August. According to the broker, the healthcare sector fell 12.9% in August. 

ASX 200 giant CSL Ltd (ASX: CSL) dominated earnings season headlines, after its shares fell 17% on its FY25 earnings report. This was the biggest one-day decline since the company listed in 1999.

Investors appeared less than impressed with its decision to demerge its vaccine business, Sequris. 

However, several brokers believe the company was oversold and represents a buying opportunity. 

CSL shares are going for less than $210 at the time of writing. This is below Ord Minnett's price target of $258, Macquarie's price target of $295.90, and Bell Potter's price target of $240.

Experts have also highlighted that CSL shares are currently trading at around 20 times forward earnings, which is materially below its long-term average of 32 times earnings.

While CSL may have made the biggest headlines due to its size, another ASX 200 healthcare stock fell even further during the month. Specifically, Telix Pharmaceuticals (ASX: TLX) dropped 29% in August. Behind the majority of this fall was a setback from the US Food and Drug Administration (FDA).

Conversely, Ansell Ltd (ASX: ANN) was a bright spot in the healthcare sector, rising 13% during the month. 

Over the past few months, the company had been rocked by tariff concerns. In fact, earlier this year, Macquarie named Ansell as the most tariff-affected stock in its coverage universe. However, investors appeared pleased by the company's FY26 guidance beat, according to Macquarie.

Foolish Takeaway

With earnings season done and dusted, ASX investors may be reviewing their current portfolios. This can be an opportune time for investors to make changes by selling companies they've lost conviction in or buying attractive companies they believe have been oversold. Those undergoing this process may find it useful to reflect on the best and worst performing sectors during August.

Motley Fool contributor Laura Stewart has positions in Ansell and CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Ansell, CSL, and Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

More on ASX Share Market News

3 children standing on podiums wearing Olympic medals.
Share Gainers

Here are the top 10 ASX 200 shares today

Investors were back to hitting the sell button this Tuesday.

Read more »

A man casually dressed looks to the side in a pensive, thoughtful manner with one hand under his chin, and holding a mobile phone in his other hand.
Broker Notes

Buy, hold, sell: Domino's Pizza, Telix Pharmaceuticals, Westfarmers shares

Brokers have given their verdicts on these ASX shares.

Read more »

A rocket blasts off into space with planet behind it.
Opinions

SpaceX shares are flying. Here's the price I'd wait for

SpaceX is on my watchlist, but I’m staying patient.

Read more »

Two happy and excited friends in euphoria holding a smartphone, after winning in a bet.
Broker Notes

2 ASX 200 shares tipped by brokers to return 73% and 83%

Do you have either of these ASX 200 shares in your investment portfolio?

Read more »

Drone flying in the sky.
Opinions

DroneShield shares have crashed 51% in a year. Here's why I'd buy them today

DroneShield has plenty of risks, but its the that upside interests me.

Read more »

A bright graphic showing neon green and red arrows in a downwards direction with a world map behind them in neon blue.
ASX Share Market News

ASX 200 drops again as selling continues

The ASX 200 has slipped again, extending its recent run of losses.

Read more »

A male oil and gas mechanic wearing a white hardhat walks along a steel platform above a series of gas pipes in a gas plant.
Opinions

Santos shares are up 40% in 2026. Here's why I'd still buy them today

A big rally hasn’t changed my view on this ASX energy stock.

Read more »

A woman wearing a black and white striped t-shirt looks to the sky with her hand to her chin, contemplating buying ASX shares.
ASX Share Market News

$10,000 invested in Zip and New Hope shares 3 years ago is now worth…

How do the three-year gains from New Hope and Zip shares stack up?

Read more »