E 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.

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