Investing in ASX large-cap stocks can be a rewarding endeavor, but knowing when to sell is crucial for investors. Some rely on sell rules, while others look at changes in fundamentals or even consult the stars for guidance.
In the bustling ASX market of 2024, it’s a good time for investors to review their portfolios. Today, we will take a closer look at two large-cap ASX stocks: Bank of Queensland Ltd (ASX: BOQ) and Mineral Resources Ltd (ASX: MIN).
Bank of Queensland shares have faced challenges in 2024, with a 2% decline at the time of writing. Despite having one of the highest trailing dividend yields among ASX 200 banking majors and a 2.7% share of the Australian residential mortgage market, Goldman Sachs has a bearish outlook on BOQ shares. The bank rates it a sell due to foreseeable risks and valuation concerns. While BOQ’s transformation program aims to improve efficiency through digitization, the high price-to-book valuations may not be sustainable given the lower returns on equity.
On the other hand, Mineral Resources recently completed a significant asset sale, generating substantial proceeds. Despite this, Goldman Sachs maintains a cautious view on the stock, citing concerns about overvalued commodity prices and the expected decline in lithium prices. The broker forecasts low or negative free cash flow for the next two years, leading to a downside potential of 31.5% on the current share price.
While Goldman Sachs sees selling opportunities for both BOQ and Mineral Resources, Bell Potter takes a different stance. The firm rates Mineral Resources a buy, highlighting its diverse operations and growth prospects. This contrasting opinion underscores the importance of conducting thorough research before making investment decisions.
In DailyBubble’s opinion, it is essential for investors to carefully evaluate the opportunities and risks presented by ASX large-cap stocks like BOQ and Mineral Resources. While differing perspectives from brokers can offer valuable insights, conducting independent due diligence is key to making informed investment choices.