Stock Tips: What’s looking good this week? Hmm… insurance?
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It’s no easy gig analysing share prices and company performance but somebody’s got to do it. Every week two experts from our Share Tips columnist pool give us their recommendations.
Chris Haynes – Equity Trustees
BUY
Operates as an insurance broker, providing services to Steadfast Network Brokers. It also distributes insurance policies via brokerages and underwriting agencies. Recent results have been very solid, yet the stock price has retraced to attractive levels. Trading at 17.5 times FY2026 earnings, the current valuation presents a relatively attractive entry point.
Telix Pharmaceuticals (ASX:TLX)
One of the largest radiopharmaceutical companies globally, yet remains relatively unknown in the investment community. Currently, TLX generates revenue only from its prostate diagnostic product. However, it has a highly prospective pipeline, including kidney and brain diagnostics, as well as therapeutic assets for kidney and prostate cancer. At the current share price, investors are not paying for this strong pipeline.
HOLD
Operates in the retail drinks and hospitality sectors in Australia. The retail business includes Dan Murphy’s and BWS, while the hotels business operates under ALH Hotels, with a portfolio of licensed venues across capital cities and regional centres. The stock has declined 30% over the past 12 months. While the new CEO is yet to commence, it’s hard to see conditions deteriorating much further. Trading at 13 times FY2026 earnings suggests the stock is undervalued.
Develops location-sharing mobile applications, offering features ranging from communication to driving safety. Subscriber growth has been stellar and is expected to continue. Additionally, Life360 has the potential to monetize its platform through advertising, which could drive further upside. However, we need to see tangible progress on this front before the stock can re-rate higher.
SELL
Manages and invests in office, retail, and industrial properties. The stock has rallied nearly 40% over the past 12 months and now trades at a 45% premium to book value – excessive for this type of business. Time to take profits.
Generates and distributes energy through coal, gas, and renewable facilities. Founded in 1837 and headquartered in Sydney, AGL faces the monumental task of transitioning from fossil fuels to renewables. This requires significant capital expenditure, with uncertain returns. The investment case is simply too difficult to justify.
Toby Grimm – Baker Young Limited
BUY
After underperforming the Materials Sector by over 30% in two years, balance sheet strength from coal divestments and growing exposure to critical minerals in favourable jurisdictions like the US call for a positive re-rating.
Auckland International Airport (ASX:AIA)
Despite softness in New Zealand’s economy weighing on domestic travel, international passenger growth remains solid. Another aggressive RBNZ interest rate cut should aid demand while reduced regulatory risk underpins long-term expansion.
HOLD
Following a poorly received Azek acquisition and soft 2026 guidance, JHX trades well below valuation. Its core US siding business remains dominant and encouraging preliminary Q2 results support a hold.
Strong explosives demand and growing technology adoption underpin recent gains. While slightly above valuation, solid execution, robust commodities, and capital returns via dividends and buyback justify holding.
SELL
The $1 billion CanadaOne purchase introduces major execution risk in a market where APE, already overvalued, does not enjoy the competitive advantage it does domestically.
Effective cost control and a new Victorian license helped deliver strong full year results in August. However, the subsequent 50% rally appears unjustified as challenging industry trends continue.
The views, information, or opinions expressed in the interviews in this article are solely those of the interviewees and do not represent the views of Stockhead.
Stockhead does not provide, endorse or otherwise assume responsibility for any financial advice contained in this article.
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