Stock of the day: Macquarie Group

(AI video summary)

This video was created on 10 April for IG audiences by ausbiz.

ASX code: MQG

Macquarie's resilience during market volatility

Macquarie Group Limited has demonstrated notable resilience during recent market turbulence. After falling from approximately $240 to a support level around $160, the stock has shown strong signs of recovery, presenting a potential opportunity for investors looking to capitalise on market volatility.

Technical analysis highlights that Macquarie found significant support at the $160 level, with the stock rallying throughout the trading day despite opening down 10%. By the session's close, losses were limited to just 1% on good volume, indicating strong buyer interest at these levels.

Strategic advantages

Analysts point to several reasons why Macquarie represents an attractive opportunity in the current environment:

• High liquidity makes it a preferred choice for large funds seeking index exposure
• Strong leverage to market upside compared to defensive stocks
• Blue-chip status with robust fundamentals
• Leading position in the financial sector

Unlike more defensive options such as Woolworths Group, which gained only about 1% during the recent market bounce, Macquarie has shown more substantial upside potential, rising approximately 7% in a single session.

Strategic stock selection and dollar cost averaging

At a current share price around $182.55, analysts still see value in Macquarie despite some short-term profit-taking. Statistical analysis of previous market corrections suggests most pullbacks typically reach 20-25%, with the recent downturn having already hit approximately 18% before finding support

Experts suggest a measured approach, such as dollar-cost averaging. Analysts highlight Commonwealth Bank of Australia and Macquarie as top financial sector picks, with Macquarie offering more potential upside in a market recovery.