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Stocks to watch at the open

Suncorp has high hopes for FY 2015 while Asia-exposed and ready-made food stocks could take a hit following lacklustre results from Yum! Brands Inc.
By · 10 Oct 2013
By ·
10 Oct 2013
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Suncorp Group (SUN)

Calling it early Suncorp has announced they expect a group return on equity of at least 10% in the 2015 financial year.

The path to achieve this may not be smooth. The current year does remain tough for Suncorp as it focuses on growing its general insurance offering and attending to issues within its life insurance business.

If Suncorp can maintain payment of the special dividend of the past two financial years, investors will at least be well paid as the company edges closer to achieving its ROE target.

Suncorp is up 38.6% over the past twelve months.

Asian exposures

US-based Yum! Brands Inc – operator of fast-food chain KFC – saw third-quarter profits fall 68%. The majority of revenue for Yum! is generated outside of the US and the company cited tougher competition in China as a reason for the drop in profits.

Competition concerns across ready-made food options could impact Retail Food Group (RFG) and Domino’s Pizza Enterprises (DMP) in trade today.

Following on from confirmation the International Monetary Fund expects China’s growth to fall, Crown (CWN) and Treasury Wine Estates (TWE), both with significant exposures in Asia, could also feel the heat today.

Retail Food Group is part of the Uncapped 100.

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Kirstie Spicer
Kirstie Spicer
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