Shares listed on the ASX are the most popular investment choice for SMSF investors. However, knowing which ones to buy for an investor’s particular needs has always been a challenge. Mid caps, large caps, growth stocks, income stocks etc – the choices available are numerous, with varying level of risk.
Lonsec’s equity research sets out to capture and highlight the various characteristics of each stock in a simple, yet effective manner. This approach is tailor made for SMSF investors as it assists trustees in selecting the right stocks for their particular situation.
We provide a research table of all ASX 200 stocks with filters to enable members to find the stocks they want based on their criteria, along with a downloadable 2 page summary report with key information.
Model portfolios of best ideas for mid caps, large caps, and income stocks are also available. CLICK HERE for more info on DIY model portfolios.
Lonsec’s approach to equities research departs from the traditional ‘Buy-Hold-Sell’ broker research that focuses more on the valuation upside potential of a stock. Rather, Lonsec’s approach utilises a combination of qualitative and quantitative analysis methods to provide answers to three key investment questions at an individual stock level.
ASX200 research is performed by Lonsec’s Direct Equities team, which consists of dedicated equity investment specialists with extensive market experience.
Lonsec’s proprietary quantitative models utilise a database comprising a wide range of historical and forecast data points to determine and classify the Income and Growth risk profile for each security in the ASX200.
The quantitative model will derive a suggested Approved or Not Approved rating by combining the Income and Growth Risk ratings for each stock, combined with the latst consensus earning forecasts and monitored on a daily basis to maintain bespoke valuations for each of the ASX200 constituents. The Income and Growth risk profiles are derived from up to eight years of actual data and two years of forward consensus data.
A below-market growth rate, whilst exhibiting lower earnings volatility and a relatively lower risk profile than the broader market
An above-market growth rate, whilst exhibiting lower earnings volatility and a relatively lower risk profile than the broader market
Reflecting a below-market growth rate, whilst exhibiting lower earnings volatility and a relatively lower risk profile than the broader market
A below-market growth rate, whilst exhibiting higher earnings volatility and a relatively higher risk profile than the broader market.
Lonsec’s quantitative model derives a risk profile based on the risk to Income or Growth, achieved quantitatively by screening each stock by a bespoke set of factors relevant to each, resulting in stocks being allocated to four distinct ‘buckets’ – Attractive, At Risk, Low or Inferior. This follows a structured framework of assessing ten key financial metrics to arrive at an overall risk rating and combined with expected earnings growth and classified into key categories.
Lonsec’s Stock Viewpoint also provide a visual snapshot of key financial parameters that are likely to impact the share price performance, grouped into four different segments, namely Growth, Income, Financial Strength and Valuation. These charts display up to 10 years (where available) of historical and forecast data to provide a real-time snapshot of the company’s track record with respect to its earnings, dividends, balance sheet strength and secondary market valuation metrics.
Access a bespoke set of earnings forecasts to both ratify the investment, view, derive and maintain bespoke valuations for each of the ASX200 constituents – with a clever mix of Action Signals and differentiated approach (DCF) highlighting whether the current share price represents an attractive entry point for each stock based on valuation upside.
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