There was a hefty 1.6% rally in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) on Wednesday and with a solid rise on Wall Street overnight which saw the major indices rise between 0.6% and 0.9% there is a good chance that ASX investors will experience further gains today.
With it looking more and more likely that US markets are prepared for a possible rate rise this week, investors may be looking to position their portfolios to capture any near-term upside.
Here are three stocks that could be worth considering right now:
The share price of QBE Insurance Group Ltd (ASX: QBE) has slumped 6.5% in the past month which is more than the 4.8% decline in the index.
For the 6 months ending June 30 the global insurer reported a 2% rise in gross written premium, a 1% expansion in its insurance margin, a 24% rise in net profit after tax to US$488 million and a 33% increase in its interim dividend to 20 cents per share. Having now offloaded underperforming divisions including the Argentinian workers compensation unit and the US loan protection business amongst others, the streamlined business looks to be on a more stable footing from which to move forward.
Coca-Cola Amatil Ltd (ASX: CCL) is only down 2% in the past month, but the company remains a significant underperformer over the past few years.
For the 6 months ending June 30 (like QBE, Coca-Cola Amatil operates on a calendar year basis) the beverage giant reported a 4.9% increase in sales and a 0.9% increase in net profit after tax. The result was far from spectacular however with the group providing guidance for mid-single digit earnings growth over the next few years, better times may lie ahead.
ASX Ltd (ASX: ASX) has declined by nearly 10% in the last month yet remains a high-quality business with a significant moat.
For the 12 months ending June 30, the operator of the Australian Securities Exchange reported a 6.4% rise in revenues and a 5.2% increase in underlying net profit after tax. That was a solid result considering the choppy market conditions but, of course, was helped by a continued steady stream of initial public offerings. One exciting growth avenue which the ASX is pursuing is to expand its Asian footprint, this could be a significant future driver of earnings growth for the group.
