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
-
Trade of the week: US Tech 100 short succeeds
This week's trade recommendation focuses on risk management and the strategic value of not trading during turbulent conditions.Commodities -
-
-
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
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. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Explore the markets with our free course
Discover and learn how the range of markets you can trade on with IG Academy's online course – ‘Introducing the financial markets’.
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 on over 10,000 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
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
