Macquarie (ASX:MQG) shares have rallied 34% in a year. Here's why this fundie says there's more to come

Disruptions in energy markets are delivering new opportunities for the company.

| More on:
a business person in a suit and tie directs a pointed finger upwards with a graphic of a rising bar graph and an arrow heading upwards in line with the person's finger.

Image source: Getty Images

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

Macquarie Group Ltd (ASX: MQG) shares have charged ahead over the past 12 months.

Though the share price slipped in late afternoon trade today amid reports the Ukrainian crisis is heating up, Macquarie shares remain up 34% since this time last year.

For some comparison, the S&P/ASX 200 Index (ASX: XJO) has gained 6% in that same period.

Atop the strong share price performance, Macquarie also pays a 3.2% trailing dividend yield, 40% franked. The diversified financial services company's last dividend of $2.72 per share was paid out to investors on 14 December.

A long-term opportunity

Macquarie shares not only trounced the benchmark over the past 12 months, but the company may have a lot more growth ahead of it.

That's according to Andrew Martin, portfolio manager at Alphinity Investment Management.

According to Martin (quoted by the Australian Financial Review):

We've long been a supporter of Macquarie Group. Initially, the market was completely missing the transformation of the group from what it was pre-GFC to the asset management powerhouse it is today, as well as the benefits from the lower interest rate and high liquidity world we were in post-GFC. Those benefits still exist today, and if anything have been enhanced by the pandemic response from central banks.

Martin is also bullish on Macquarie shares due to the growth outlook for the company's green investment business. Martin said:

Macquarie has a number of engines to rely on, including the commodities business at the moment, benefitting from disruptions in the energy markets. Going forward, their green investment business is incredibly well-placed to take advantage of the energy transition we are seeing globally. This is a long-term opportunity that may well dwarf what they have already been doing in that space alongside utilities and infrastructure.

How have Macquarie shares performed this year?

After gaining 48% in 2021, Macquarie shares have struggled in the new year, down 7%. That compares to a 4% loss posted by the ASX 200.

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 recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Financial Shares

A female financial services professional with a manicured black afro hairstyle turns an ipad screen to show a client across the table a set of ASX shares figures in graph format.
Share Market News

Record CBA share price and blockbuster merger push ASX 200 financials sector to the top

ASX financial stocks led the 11 market sectors last week with a 1.95% gain.

Read more »

Man with rocket wings which have flames coming out of them.
Financial Shares

Up more than 900% in 5 years, can this ASX All Ords financials stock go higher?

The share price of this company has left others behind in the dust.

Read more »

A man sits in deep thought with a pen held to his lips as he ponders his computer screen with a laptop open next to him on his desk in a home office environment.
Financial Shares

HMC Capital shares are down 50% in 2025, can they turn around?

HMC Capital shares have plunged more than 50% this year, but with solid investments in energy, private credit, and data…

Read more »

Modern accountant woman in a light business suit in modern green office with documents and laptop.
Financial Shares

Forget the Big 4 banks and buy these 2 compelling ASX 200 financials stocks

The Big 4 banks might be steady, but if you’re after real growth in financials, here are two modern, scalable…

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

Buy this surging ASX 300 stock before the next interest rate cut

A leading fund manager expects more upside from this surging ASX 300 stock.

Read more »

woman talking on the phone and giving financial advice whilst analysing the stock market on the computer with a pen
Financial Shares

Why this ASX All Ords stock surged yesterday

Investors sent this ASX All Ords stock flying higher. But why?

Read more »

Young woman thinking with laptop open.
Financial Shares

Does Macquarie tip more upside for Suncorp or IAG shares?

Macquarie analysed the outlook for both Suncorp and IAG shares in the year ahead.

Read more »

A woman sits at her computer with her chin resting on her hand as she contemplates her next potential investment.
Financial Shares

Why this $2 billion ASX 200 stock looks undervalued today

A leading expert believes this ASX 200 company is poised to ‘unlock some decent value’.

Read more »