Looking to take some profit this week? If you hold shares in any of these 3 companies there might just be an opportunity.
AMP Limited (ASX: AMP)
Is there any real point sticking it out with Australia and New Zealand independent wealth management company AMP Limited, or should shareholders sell up now and take whatever profit they can glean?
The Banking Royal Commission has not been kind to AMP, with its shares tumbling from a 52-week high of $5.47 on March 8 to open this week at $3.50 – down 36%.
AMP is due to deliver its earnings report card this week, but unless something pretty spectacular comes out of it, the likelihood that AMP will drop down further is high.
JP Morgan upgraded its recommendation on AMP to overweight last month, after AMP handed down a trading update on July 27 indicating it was taking action to "reset" the business by prioritising customers and strengthening risk management and controls.
But will it be enough to offset the damage done by what Morningstar label the "unprecedented disaster" the Royal Commission has been for AMP with the damaging revelations levelled at AMP certainly challenging its brand?
It's unlikely AMP will stage a recovery anytime soon, but if it does enjoy a short surge in price off the back of its results this could present a sale opportunity for shareholders looking to rake in as much profit as possible.
Investors in the space will also be on the lookout for Suncorp Group Ltd (ASX: SUN) results, due out the day after AMP, but unlike the latter, Suncorp is tipped to outperform expectations and level up for the year ahead.
Netwealth Group Ltd (ASX: NWL)
Netwealth Group Ltd has featured on the sell lists of several brokers recently, including Credit Suisse, who downgraded the stock to underperform last month after its shares slipped 29% from a July 20 12-month high of $9.67 to open this week at $7.48.
Netwealth last month announced its funds under administration (FUA) had increased $1.95 billion in the fourth quarter, totalling $17.96 billion.
But fintech platforms like Netwealth have been hit hard by cuts to superannuation platform fees across the industry, and it remains to be seen whether Netwealth will be able to withstand the price war pressures that ramp as a result.
In a similar space, Hub24 Ltd (ASX: HUB) shares have also taken a tumble of late, despite growth in its FUA, and the same goes for Praemium Ltd (ASX: PPS), which has crashed down from a 52-week high of $1.04 in mid-July to open today at 85c per share.
Investors with stakes in Netwealth may not want to sell off their entire holdings, but if profit can be made, now might be the time to take some back and leave less in the speculative basket in this volatile sector.
Wesfarmers Ltd (ASX: WES)
Most investors see the likes of Wesfarmers Ltd and Woolworths Group Ltd (ASX: WOW) as buy and hold forever type stocks, but if you're looking for somewhere to scrape some profit from this week, Wesfarmers could be a consideration.
Wesfarmers shares are sitting pretty, up 23% from this time last year, but as the supermarket war between Woolworths, Coles and cut-price rivals such as Aldi, Cosco and German giant Lidl – which is headed our way – heats up, Wesfarmers shares could come under some pressure.
The stock has performed well since news broke of its plans to demerge Coles into a separate company by November when shareholders get to vote on the plan.
The move could lead to changes in Wesfarmers best-performing businesses, such as Kmart and Bunnings Australia and New Zealand, and investors are primed for its earnings report to be handed down mid-way through this month.
The "sell on a high buy on a low" mentality rings true here, and it can't hurt to take some profit from Wesfarmers while you can – who knows what the new Wesfarmers will look like in a few months without its favourite supermarket giant at the helm.
