Investors on the Australian Stock Exchange (ASX) are keeping a close watch on two prominent large-cap stocks showing substantial promise with their recent upward movements. ANZ Group Holdings Ltd (ASX: ANZ) and Qantas Airways Ltd (ASX: QAN) have both registered notable gains year-to-date, capturing the attention of markets as names to watch on the ASX.
ANZ Group Holdings’ Shares on the Rise
ANZ’s stock has seen a considerable rise of nearly 10% since the start of the year, currently trading at $28.78. The bank’s share growth has notably outpaced the ASX 200 Index, with ANZ’s shares surging over 18% above the index’s performance in the last 12 months. Specifically, ANZ has seen an impressive 26% increase against the ASX 200’s 9% gain during this period.
This positive sentiment is supported by UBS, which has set a price target of $30 for ANZ shares, suggesting a potential 3% upside from their current level. This projection points to continued confidence in the bank’s performance and an optimism that may put these shares on investors’ radars.
Qantas Airways Gains Altitude
Similarly, Qantas shares have lifted off well for the year, with an ascent of 15%, now priced at $6.14 apiece. The attention from investors isn’t without reason—the airline’s current P/E ratio stands at a modest 6.7, which falls below the 9.1 average P/E ratio observed among its regional and US counterparts, as noted by Goldman Sachs.
Looking ahead, Goldman Sachs forecasts that Qantas will produce earnings per share (EPS) of 85 cents in FY24 and 96 cents in FY25. Coupled with this outlook, the firm has positioned a sizeable price target of $8.05 on Qantas shares, suggesting a significant 29% upside from the current trading price. This valuation represents an attractive entry point compared to its industry rivals, which may entice investors eager for exposure to the airborne segment of the market.
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The current climate of these two ASX large-cap stocks showcases the potential for growth and the attractive valuations that could lure in investors. ANZ, with its formidable market presence and recent outperformance, and Qantas, with its standout valuation and strong earnings projections, both present intriguing opportunities. Markets will be watching these companies closely, as their ongoing developments could spell out rewarding journeys for shareholders in the short to medium term.
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