What's Macquarie's top pick for the third week of AGM season?

This broker has identified a possible winner from AGM season.

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Key points

  • Macquarie highlights improved investor sentiment during the third week of AGM season, with Global Cyclicals recovering and US corporate results exceeding expectations.
  • The Energy and Materials sectors lead in performance and analyst upgrades, while Communications lags.
  • Macquarie identifies Ansell as a standout pick due to expected positive momentum, alongside recommendations for Harvey Norman Holdings and NRW Holdings.

The team at Macquarie has provided fresh guidance on the Annual General Meeting (AGM) season. 

AGM season refers to the period each year when most listed companies hold their Annual General Meetings (AGMs) – typically between October and November in Australia.

During the AGM season, companies provide updates on current trading conditions and outlook for the new financial year. 

They also often provide earnings guidance or commentary on performance since their last results. 

For analysts and investors, AGM season is important because it offers fresh insights into company performance and management tone between formal reporting periods like full year or half year results. 

It can also trigger share price movements as markets react to upgraded or downgraded guidance. 

Here is an overview of Macquarie's analysis on the third week of the AGM season. 

Investor sentiment improving

Macquarie said investors continue to react positively to AGM updates. In a reversal of August results, Global Cyclicals are having a good AGM season.

The broker also noted US corporate results for Q325 are the strongest in over a year with broad beats across EPS, sales, margins and dividends. This signals an improving US economy. 

It said US results usually beat, and at +47% the positive EPS surprise in 3Q25 is the strongest in over a year, with beats across sales, margins and dividends. 

Companies are exceeding expectations across sales, margins, and dividends, indicating an improving economy despite some delayed data from the US government shutdown. 

Energy and Materials sectors are leading in performance and analyst upgrades, while Communications is the weakest sector.

At the time of writing (before US CPI release), the market was pricing a 99% chance of a 25bps Fed cut in October, and 92% chance of 50bps by year-end.

Key picks from AGM meeting

In its report, Macquarie highlighted a few companies as key picks. 

The standout is Ansell Ltd (ASX: ANN). 

It is a leading global supplier of protective gloves and bodywear for use in healthcare and industrial settings.

Macquarie Research Equities expects a positive AGM, momentum is in Stage 2 and consensus is upgrading.

The broker also said Harvey Norman Holdings Ltd (ASX: HVN) and NRW Holdings Ltd (ASX: NWH) are buys for the rest of the AGM season. 

Motley Fool contributor Aaron Bell has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Harvey Norman. The Motley Fool Australia has recommended Ansell. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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