The Key Charts You Need for Australia's Earnings Season

(Bloomberg) -- Here’s the key data points to know as Australia’s earnings season kicks off:

Stocks With the Most Room to Move

Australia’s benchmark index reached a decade high earlier this year, yet analysts are expecting further gains over the coming 12 months. The ASX 200 is seen rising 3.3 percent over the period, according to data compiled by Bloomberg, based on analyst estimates.

Here are the 5 stocks which have the most upside potential, based on analyst estimates, and those with the most downside risk:

The Key Charts You Need for Australia's Earnings Season
  • Here are the Top 10 stocks with the highest price target for next 12 months:
    • CSL - A$196.81
    • Cochlear - A$178.76
    • Blackmores - A$130.67
    • Macquarie Group - A$124.89
    • REA Group - A$86.32
    • Rio Tinto - A$82.58
    • Commonwealth Bank - A$76.53
    • Ramsay Health - A$63.20
    • Flight Centre - A$56.04
    • ASX - A$57.19

Where the Bears Are

Short interest on the ASX 200 has held largely unchanged through most of 2018 at ~2 percent of the index on a weighted basis. Consumer discretionary stocks are among the most shorted as a percentage of equity float.

The Key Charts You Need for Australia's Earnings Season
  • Here are the top 5 stocks with the biggest gain in short interest over the past year among most shorted stocks on ASX 200:
    • Afterpay Touch
    • Nufarm
    • Graincorp
    • Technology One
    • Wisetech
  • Top 5 stocks with biggest decrease in short interest over past year among most shorted:
    • Corporate Travel Management
    • Automotive Holdings
    • Ardent Leisure
    • Independence Group
    • Mayne Pharma

What the Analysts Think

Analysts have shifted to a more positive footing on the ASX 200 in the past 6 months, with the total number of buy and hold ratings increasing, while sell ratings declined.

The Key Charts You Need for Australia's Earnings Season
  • Top 5 stocks with most buy ratings
    • Fortescue Metals
    • Orocobre
    • National Australia Bank
    • BHP Billiton
    • OZ Minerals
  • Top 5 stocks with most sell ratings
    • ASX
    • Primary Health
    • Regis Resources
    • Beach Energy
    • Coca-Cola Amatil
  • Stocks with >5 buys and 0 sells
    • Automotive Holdings
    • Amcor
    • Afterpay Touch
    • APA Group
    • Ausdrill
    • Credit Corp
    • Corporate Travel
    • Eclipx Group
    • G8 Education
    • Galaxy Resources
    • LendLease
    • Link Administration
    • Macquarie Group
    • Origin Energy
    • Pendal Group
    • Pact Group
    • Pilbara Minerals
    • Resolute Mining
    • Speedcast
    • Star Entertainment
    • Smartgroup
    • Super Retail
    • Seven Group
    • Syrah Resources
    • Webjet
  • Stocks with >5 sells and 0 buys
    • ASX
    • Cochlear

What the Investors Think

Investors have the most faith in the outlook for technology and healthcare stock earnings, with the forward 12-month price/earnings ratio at its highest among those sectors.

The Key Charts You Need for Australia's Earnings Season
  • Here is the stock with the highest forward 12-month P/E multiple in each sector on the ASX 200
    • Consumer discretionary -- IDP Education 46.6x
    • Consumer staples -- A2 Milk 41.3x
    • Energy -- Worleyparsons 28.2x
    • Financials -- ASX 27.6x
    • Healthcare -- Nanosonics 551.7x
    • Industrials -- Transurban 55x
    • Information Technology -- Xero 613x
    • Materials -- Independence Group 49.1x
    • Real Estate -- Goodman Group 21.3x
    • Telecommunications -- Chorus 21.4x
    • Utilities -- APA Group 43.7x

Biggest Movers This Year

Finally, we look at which stocks have had the biggest shift in share price since the start of 2018, with the index boosted by new arrivals on the technology front, while being weighed down by companies touched by poor earnings guidance and reputation damage.

The Key Charts You Need for Australia's Earnings Season

©2018 Bloomberg L.P.