Top 3 Australian Stocks To Keep An Eye On In 2019

The Australian GDP is in an upwards spiral compared to most European economies in 2019. Just in 2017, they showed massive growth by crossing the $1.3 trillion mark. This year, however, it is expected that the overall Gross Domestic Product will increase to more than $1.45 trillion.

Such growth indicates an increase in the country’s largest companies, but the industries are very mixed. Due to the new regulations of restricting cash payments to a maximum of $7.500, it is expected that SMEs (Small and Medium Enterprises) will see less growth, while large financial institutions such as banks, micro-financing companies and hedge funds are expected to grow at a whole new level.

Let’s take a look at the 5 most promising ASX stocks for 2019.

Tabcorp Holdings Limited (ASX: TAH)(TACBY)

Tabcorp is the largest wagering corporation in Australia right now, with over 4,000 venues around the country and $10 billion in market capitalization. Despite this, the huge number of incoming online gambling operators puts the corporation’s profit margin in jeopardy.

Due to Australian regulations, local companies don’t have the luxury of launching their own online platforms. Because of this, multiple foreign operators are able to snatch away even the offline benefits of these companies. For example, there has been a massive influx of Australian live casinos offerings that showcase live roulettes and other dealer-based games.

Furthermore, with the introduction of a new cash payment cap, big players will now have to risk their payment history to satisfy their gambling needs offline. It was not unheard of to see people spend more than $7,000 in a single night with Tabcorp’s VIP rooms, but now, thanks to the new cap, it’s just not worth it anymore.

As a result, it is expected that Tabcorp’s stocks are going to decline due to reduced income during the first and second quarter of 2019. However, once the acquisition of Tatts Group, a local lottery provider is over and done with, it’s reasonable to believe that the price will bounce back again.

Afterpay Touch Group Ltd (ASX: APT)(AFTPF)

Afterpay is a company that provides interest-free payment methods for its customers. Although it may seem like a terrible business idea, Afterpay is able to restrain it only offer this option every fortnight or so.

Due to the fact that alternative payment methods are always welcome, especially the Aussies, the company shares have been performing amazingly this past couple of months. Just in April, the price grew a little less than 15%, which has set the share price to $25.59 per piece.

Due to the already mentioned amendment in the country’s cash payment segment, the company is guaranteed to see a large influx or large customers. Furthermore, executives have already disclosed information about their plans to expand in the UK. Due to so much potential, the stock is still able to remain on an upwards spiral.

The primary reason why Afterpay is able to retain its position even though 33% of Aussies prefer cash, is their alternate method of payments. As a continuation of Tabcorp’s analysis, it’s important to note that nearly 80% of the country’s population has taken part in gambling activities at least once. And in order to do so, most of them had to use alternate payment methods, due to credit score damage through bank transactions.

With the cash payment cap decreasing even further, more and more Aussies will need to find convenient payment providers, a criterion that Afterpay is able to fit.

Costa Group Holdings Ltd. (ASX: CGC)(CTTQF)

Costa Group is still being traded at a relatively lower price than it was back in January 2019. The drop from 7.37 AUD to 4.64 AUD within just 2 days was a lot to handle for previous shareholders, therefore the growth factor has dragged along Winter and Spring.

But due to bad investor sentiment, the stock price still managed to breach the 5.00 AUD mark and is on its way downward again. The fall in January was acquired to have happened due to a downgrade in the company’s FY19 profit guidance.

Now, this may be a very foolish assessment, but due to the Summer harvest quickly approaching and the size of the health-conscious population constantly on the rise, it’s easy to mention that Costa Group may see itself back to the position it was before the whole January debacle.

At this point, the stock price is down around 25-30%, which is very unlikely to remain in the long term. The company itself expects 2019 NPAT-SL growth of at least 30%, with an incoming update on May 30th, which will quickly boost the price upwards.

As you can see most of the promising stocks, more than 50% are somehow connected to the financial sector. The introduction of the new cash payment cap was devastating for small businesses, but a blessing for a digital payment provider. Thousands of small business owners will now have to start looking for accommodating companies, which is guaranteed to increase the overall fund processing scale, which will then produce better profit figures by the end of the quarter.

And we all know how sensitive the market is towards those profit figures.

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