Further Upside For Nickel Mines Limited (ASX:NIC) Shares Could Introduce Price Risks After 29% Bounce
Nickel Mines Limited ( ASX:NIC ) shares have continued their recent momentum with a 29% gain in the last month alone...
Australian (ASX) Stock Market Analysis
UpdatedNov 27, 2021
DataAggregated Company Financials
Companies1795
- 7D-1.6%
- 3M-2.1%
- 1Y11.7%
- YTD8.9%
Over the last 7 days, the market has dropped 1.6%, driven by a loss of 3.5% in the Financials sector. Although the market is actually up 12% over the past year.
Market Valuation and Performance
Has the Australian Market valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sat, 27 Nov 2021 | AU$2.6t | AU$976.9b | AU$102.0b | 18.8x |
| Mon, 25 Oct 2021 | AU$2.6t | AU$955.2b | AU$94.5b | 19.9x |
| Wed, 22 Sep 2021 | AU$2.5t | AU$960.1b | AU$98.6b | 18.5x |
| Fri, 20 Aug 2021 | AU$2.6t | AU$949.7b | AU$96.9b | 18.3x |
| Fri, 04 Jun 2021 | AU$2.4t | AU$901.0b | AU$70.4b | 18.4x |
| Mon, 08 Mar 2021 | AU$2.3t | AU$877.2b | AU$41.9b | 20.3x |
| Thu, 10 Dec 2020 | AU$2.2t | AU$887.6b | AU$44.9b | 21.8x |
| Wed, 02 Sep 2020 | AU$2.0t | AU$884.7b | AU$48.4b | 21.1x |
| Sat, 06 Jun 2020 | AU$1.8t | AU$927.8b | AU$75.0b | 18.8x |
| Tue, 10 Mar 2020 | AU$2.0t | AU$923.4b | AU$92.2b | 17.7x |
| Mon, 02 Dec 2019 | AU$2.1t | AU$922.1b | AU$99.0b | 19.7x |
| Thu, 05 Sep 2019 | AU$2.0t | AU$906.9b | AU$98.6b | 18.4x |
| Sun, 09 Jun 2019 | AU$1.9t | AU$894.3b | AU$102.1b | 17.5x |
| Sat, 02 Mar 2019 | AU$1.9t | AU$886.1b | AU$105.1b | 16.8x |
| Tue, 04 Dec 2018 | AU$1.7t | AU$872.2b | AU$101.3b | 15.8x |
PE Ratio
15.8x
Current Market PE: Investors are relatively neutral on the market at the moment, considering it's trading close to its 3-year average PE ratio of 18.6x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: The earnings for Australian listed companies have remained mostly flat over the last three years, while revenues have grown 3.9% per year. This means that although more sales are being generated, either the cost of doing business or the level of investment back into businesses has increased and as a result, profits have held steady.
Sector Trends
Which sectors have driven the changes within the Australian Market?
| Utilities | 1.57% | |
| Materials | 1.27% | |
| Real Estate | 0.74% | |
| Consumer Staples | -0.61% | |
| Industrials | -0.84% | |
| Healthcare | -1.27% | |
| Telecom | -2.54% | |
| Consumer Discretionary | -3.12% | |
| Energy | -3.47% | |
| Financials | -3.49% | |
| Tech | -5.64% | |
Sector PE: Investors are most optimistic about the Utilities sector which is trading above its 3-year average PE ratio of 22.5x. This is likely because analysts are expecting annual earnings growth of 28% which is higher than its past year's earnings decline of 13% per year. Meanwhile, investors are most pessimistic about the Real Estate sector, which is trading below its 3-year average of 15.4x.
Forecasted Growth: Analysts are most optimistic on the Tech sector, expecting annual earnings growth of 42% over the next 5 years. This is roughly in line with its past earnings growth rate. Meanwhile, the Real Estate industry is expected to see its earnings growth to stay flat over the next few years.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | Sector | |
|---|---|---|---|---|---|
| BHP BHP Group | 4.3%+AU$8.0b | -1.8% | PE12.1x | Materials | |
| FMG Fortescue Metals Group | 11.1%+AU$5.3b | -7.4% | PE3.7x | Materials | |
| TCL Transurban Group | 1.8%+AU$767.4m | -2.0% | PS14.8x | Industrials | |
| APA APA Group | 5.5%+AU$589.9m | -8.8% | PE3089.7x | Utilities | |
| NIC Nickel Mines | 17.2%+AU$515.6m | 29.2% | PE16.5x | Materials |
