If you are on the hunt for some new portfolio additions following earnings season, then it could be worth checking out the ASX stocks in this article.
That's because analysts at Macquarie Group Ltd (ASX: MQG) have just named them as its top picks in the industrials sector.
Here's what the broker is saying about them:
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James Hardie Industries plc (ASX: JHX)
Macquarie thinks investors should be buying this building products company's shares following recent weakness. Especially given the potential for monetary policy support to give it a boost. The broker has put an outperform rating and $37.20 price target on them. It commented:
While JHX's balance sheet represents a material risk, we remain constructive on the investment thesis. The stock has corrected materially, and the earnings base is well below mid-cycle. Monetary policy support could prove a key catalyst, while alignment should improve from here.
Cleanaway Waste Management Ltd (ASX: CWY)
Another ASX stock that could be a buy according to Macquarie is waste management company Cleanaway. The broker thinks that its shares are good value based on its growth outlook. Macquarie has an outperform rating and $3.50 price target on its shares. It said:
We continue to find the valuation/growth trade-off attractive, with the stock trading at an ever-widening discount to US peers. Operational performance is lifting, and we expect improving returns and cash flow to aid the thesis.
BlueScope Steel Ltd (ASX: BSL)
Macquarie also thinks that steel producer could be an ASX stock to buy following earnings season. It has an outperform rating and $25.45 price target on its shares. Commenting on the company, it said:
Steel price trends are key. Near term has been softer, but BSL reinforced positive market commentary on demand and pointed to stabilisation in a US context. AU housing exposure should also gain from monetary policy support.
Reliance Worldwide Corporation Ltd (ASX: RWC)
Finally, this plumbing parts company is being tipped as a buy by Macquarie. It believes the ASX stock is well-positioned for a market recovery following a difficult period. And given its attractive valuation, it has put an outperform rating and $5.30 price target on its shares. Macquarie commented:
Management are executing well against a complicated backdrop, positioning the business for any market recovery and settling in trade complexities. Valuation attraction is compounded by earnings recovery potential beyond tariff impacts.
