Australian earnings this week: top stocks to watch

What are the markets expecting from Wesfarmers?

The markets are expecting a drop in profits on annualized basis for Wesfarmers Ltd, as the company continues to come down from the pandemic buying-boom that drove its stock to record highs in 2020 and 2021. Analysts are tipping a drop in net profits to $1.2 billion, which ought to feed a dividend of $0.92. Broker sentiment remains largely neutral towards the stock, with a majority hold rating across 15 brokers – 7 hold, and 4 buys and sells. The consensus price target is in line with current prices at $55.47.

Technical analysis of Wesfarmers shares

With the stock’s post-pandemic uptrend breaking down in late-2021, Wesfarmers’ shares are trending lower currently. Long-term momentum is skewed to the downside, with the weekly RSI moving lower and remaining below 50. It appears to be a fade the rally market for Wesfarmers’ shares, as prices hovers around support at roughly $53.50. The first key level of resistance might be found at $56.50, while a big level of support will likely be $50.00.

Woodside Petroleum – 17th of February

What are the markets expecting from Woodside?

The surge in global energy prices has been a boon for Woodside Petroleum, with the company’s FY results expected to show the benefits of higher global oil and gas prices. Revenues may come close to doubling from a year ago, while net profits are forecast to rise to $US1.4 billion, and the dividend boosted to $1.06. The good times are expected to continue going forward courtesy of oil prices at 7 year highs, with brokers slapping a consensus buy rating on the company. 11 brokers maintain a buy rating, 3 suggest a hold, while only 1 recommend to sell, with the consensus price target a premium to current prices at around $29.36.

Technical analysis of Woodside shares

Woodside shares remain in a primary uptrend, with momentum remaining skewed to the upside in the medium to long-term. The stock has pulled back in recent weeks. But is finding support at previous resistance around $26.50 per share. If buyers defend that level, it will bring into view the next level of resistance at $28.00, which coincides with the stock’s 200-week MA. On the downside, the major long-term level of price support sits around $23.50.

Telstra (TLS) – 17th of February

What are the markets expecting from Telstra?

The strategy shift from CEO Andy Penn focused on digital transformation has successfully underpinned an increase in Telstra Corp Ltd’s share price, which has also benefitted from the reach for yield in equity markets since the start of the pandemic. Consensus estimates suggest a slight increase in profits for the company this half, which ought to jump to just shy of $900m and boost the dividend $0.08. Brokers remain bullish on the company’s outlook overall, with a consensus buy recommendation – 8 recommend a buy, 5 a hold and 1 a sell. The price target is also at a premium currently at $4.51.wei.

Technical analysis of Telstra shares

Although remaining in a technical uptrend defined by higher-highs and higher-lows, waning momentum in Telstra shares has seen it break trend channel support, as the weekly RSI shows signs of bearish divergence. Price is currently struggling to make a re-entry into the channel, which if rejected, may bring into view a test of support at around $4.00 per share. A break of that level could drive a test of the stock’s most recent higher-low at $3.70. Major resistance will be found at the share’s 7-year high at $4.30.