ASX-listed ANZ Group Holding Limited (AU:ANZ) achieved a “Perfect 10” ranking on the TipRanks Smart Score Tool. It was added to the list yesterday, highlighting an increased likelihood for the stock to exceed the market’s returns. Analysts have classified the stock as a Strong Buy and are also forecasting a moderate potential gain of 8%.
The TipRanks Smart Score tool offers insights into a stock’s potential to outperform general market returns by allocating a rating from one to ten. This score is derived from the evaluation of eight distinct factors, such as hedge fund activities, fundamental analysis, analyst ratings, technical analysis, and more.
Here, the Q3 trading update by the bank, recent Buy ratings from analysts, and a Buy signal from technical analysis propelled the share to the “Perfect 10” club.
Let’s dig deeper.
Yesterday, Citi analyst Brendan Sproules confirmed his Buy rating on the stock with a forecast of 9% in the ANZ share price. Sproules was optimistic about the stock after its Q2 earnings in May and termed them “better results than many investors feared.” Similarly, the Q3 trading update issued by the bank last week again got Sproules’ attention.
Nine days ago, J.P. Morgan analyst Andrew Triggs also reiterated his Buy rating on the stock, predicting a growth rate of 7%.
During its third quarter, the bank noted ongoing expansion in retail and institutional customer deposits. Mortgage payments experienced a slight increase during the quarter, although they remained below historical benchmarks. ANZ’s provision for potential bad and doubtful debts, reflecting future uncertainties, amounted to AU$77 million, which was lower than analysts’ expectations.
What is the Future of the ANZ Share Price?
Australian banks have remained a popular option among investors for a long time now and are considered a safe choice. The ANZ share price has experienced a gain of over 11% so far this year.
The ANZ share price forecast is AU$26.8, which offers a modest growth rate of 8% from the current price. This price ranges from a high forecast of AU$30.9 to a low forecast of AU$25.03.
According to TipRanks’ analyst consensus, ANZ stock has received a Strong Buy rating based on seven Buy and two Hold recommendations.
Similar to its peers, ANZ Group is also currently reflecting trends associated with mounting financial strain among mortgage customers due to increased interest rates and higher living expenses. Nonetheless, the elevated deposits and reduced impairment charges as indicated in the trading update have prompted analysts to expect a consensus upward adjustment for fiscal 2023 cash earnings.
The inclusion in the “Perfect 10” Smart Score list, along with the favorable ratings, adds greater reinforcement to the investment proposition.