To The Moon

As of the close on Friday, $S&P/ASX 200(XJO.AU)$ closed at 8,662.00 on Friday, down 0.06% in the past 5 days.

1. $JB HI-FI LTD(JBH.AU)$ +6.31%

• Consumer Spending Recovery: Morgan Stanley noted easing cost-of-living pressures due to interest rate cuts, benefiting electronics retailers like JB Hi-Fi.

• Upcoming Earnings Optimism: The company was scheduled to report FY2025 results on August 11, and traders may have positioned ahead of potential positive surprises.

• Market-Wide Rally: The broader indices (e.g., ASX 200) rose during this period, JBH could have benefited from sector-wide gains.

2. $Resmed DRC(RMD.AU)$ +3.83%

• ResMed reported 10% YoY revenue growth ($1.35B in Q4, $5.1B FY25) and a 37% jump in net income ($1.4B), beating analyst estimates. Gross margin expansion (up 230 bps in Q4) and dividend hike (13% to $0.60/share) boosted investor confidence.

• The stock broke past key resistance at $40 (AUD), entering overbought territory (RSI >70) but maintaining upward momentum. Sector-wide optimism in healthcare tech, driven by digital health adoption, supported gains.

• ResMed announced the acquisition of VirtuOx and a marketing deal with the British & Irish Lions Tour, reinforcing its growth pipeline.

• Easing US-EU trade tensions and RBA rate cut expectations lifted ASX healthcare stocks.

3. $COMPUTERSHARE LTD(CPU.AU)$+ 3.74%

• Computershare dominates the global share registry market (58% share with Equiniti) and benefits from steady industry growth (4% CAGR). Its leadership in issuer services and corporate actions drives revenue.

• Despite rate cuts, MI income dipped only $2M due to hedging. Digital platforms (Equate+) and cost-saving IT migrations (Nutanix adoption) boosted margins.

• 70% USD-denominated revenues gain from AUD weakness. Soft-landing hopes and capital markets recovery support core services.

4. $WESFARMERS LTD(WES.AU)$+3.08%

• Wesfarmers is set to announce its 2025 full-year results on August 28, with analysts expecting revenue growth of 3.54% (A$45.75B) and EPS growth of 5.22% (A$2.37).

• The company’s Kmart and Target divisions have shown strong sales momentum, while Bunnings remains resilient despite softer housing market conditions.

• Morgan Stanley noted improving consumer trends, particularly in electronics and home improvement, benefiting Wesfarmers’ retail portfolio.

• The RBA’s rate cuts have eased cost-of-living pressures, supporting discretionary spending—a tailwind for Wesfarmers’ businesses.

• The ASX 200’s broader rally, driven by easing global trade tensions (e.g., softened U.S. tariff rhetoric), lifted Wesfarmers alongside other retail and industrial stocks.

5. $ARISTOCRAT LEISURE LTD(ALL.AU)$ +3.01%

• Aristocrat Gaming has announced the launch of its new Phoenix Link game in Puerto Rico, as part of the Jackpot del Encanto progressive link.

• The company has announced an update on its ongoing on-market buy-back program, with a total of 3,806,744 securities bought back prior to the previous day and an additional 197,145 securities bought back on the previous day. This buy-back initiative is part of the company’s strategy to manage its capital structure and enhance shareholder value, reflecting confidence in its financial position and future growth prospects.