Stock of the day: Aristocrat Leisure
Aristocrat Leisure’s net profit rose 17%, backed by strong North American results and strategic moves. With a growing dividend, Aristocrat presents an attractive investment outlook.
(AI video summary)
This video was created on 13 November for IG audiences by ausbiz.
ASX code: ALL
Aristocrat Leisure's financial performance
Aristocrat Leisure has been in the spotlight due to its impressive financial results. The company's net profit surged 17% to A$1.45 billion, driven by exceptional operations in North America. This growth was accompanied by a dividend increase to A$0.78, up from A$0.64 the previous year.
Despite lacking specific future guidance, Aristocrat anticipates continued profit growth, fuelled by its Pixel United and Aristocrat Interactive gaming businesses. This positive performance led to a 2% rise in the company's share price, reflecting market confidence in its strategic direction.
Strategic decisions boost Aristocrat Leisure
Recent strategic decisions have strengthened Aristocrat's market position. The company conducted a strategic review, resulting in the sale of its Platinum business for $620 million. This move is part of a broader capital management strategy, aimed at optimising operations and financial standing.
Analysts note these strategic actions, combined with robust financial results, have contributed to Aristocrat's upward trajectory, maintaining a competitive edge in the gaming industry.
Investment outlook
For traders and investors, Aristocrat Leisure presents a compelling case for holding. Despite strong performance, the stock trades at a high price-to-earnings (P/E) ratio of around 24 times earnings, reflecting market expectations.
While some investors may hesitate to buy at current levels, others see potential opportunities during market corrections. Aristocrat's quality business model and consistent performance make it a stock to watch, especially if market conditions create buying opportunities.
This information has been prepared by IG, a trading name of IG Australia Pty Ltd. 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.
Explore the markets with our free course
Discover the range of markets you can trade CFDs on - and learn how they work - with IG Academy's online course.
Turn knowledge into success
Practice makes perfect. Take what you’ve learned in this shares strategy article, and try it out in your demo account.
Ready to trade shares?
Put the lessons in this article to use in a live account. Upgrading is quick and simple.
- Trade over 13,000 popular global stocks
- Protect your capital with risk management tools
- Deal on 70 key US stocks out-of-hours, so you can react to news
Inspired to trade?
Put the knowledge you’ve gained from this article into practice. Log in to your account now.
Live prices on most popular markets
- Forex
- Shares
- Indices
