Stock of the day: Acrow Formwork and Construction
Discover why experts favour Acrow Formwork for its 6% dividend yield, infrastructure exposure, and resilience during market uncertainty.
(AI video summary)
This video was created on 8 April for IG audiences by ausbiz.
ASX code: ACF
Infrastructure spending creates resilience
Acrow is positioned to capitalise on over $185 billion worth of infrastructure projects across Australia, with a potential revenue pool between $2 billion and $9 billion over the next seven years. A significant driver will be Olympic-related spending, with approximately $7 billion allocated for new stadiums and supporting infrastructure.
Trading at around $1 per share, Acrow offers an attractive fully franked dividend yield of nearly 6% and trades at a price-to-earnings (P/E) ratio of just under nine, compared to around 13 for comparable companies.
Alternative defensive investments
When market conditions deteriorate, experts recommend prioritizing both risk management and quality. Alternative defensive options include:
- Telstra (TLS): Offers growth potential and dividends with pricing power during inflation
- Woolworths (WOW): Provides defensive qualities with its stable consumer staples business
- TechnologyOne (TNE): Becomes attractive during significant market pullbacks, especially with its high customer retention rates
While smaller companies may offer greater upside potential, investors should consider that periods of market stress often last several months, during which larger, established companies typically demonstrate greater resilience.
News and trade ideas
Gold
-
Stock of the day: Macquarie Group
Macquarie Group and Northern Star are top picks for resilient returns amid market volatility, highlighting their investment advantages and gold's role...Shares -
-
-
This information has been prepared by IG, a trading name of IG Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients.
CFDs are a leveraged products. CFD trading may not be suitable for everyone and can result in losses that exceed your initial deposit, so please ensure that you fully understand the risks involved.
Explore the markets with our free course
Learn how shares work – and discover the wide range of markets you can trade on – with IG Academy's free ’introducing the financial markets’ course.
Put learning into action
Try out what you’ve learned in this shares strategy article risk-free in your demo account.
Ready to trade shares?
Put the lessons in this article to use in a live account – upgrading is quick and easy.
- Trade over 16,000 popular global stocks
- Protect your capital with risk management tools
- React to breaking news with out-of-hours trading on 70 key US stocks
Inspired to trade?
Put your new knowledge into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
