ASX Reporting Season Halftime Report: 4 Stocks to Buy, Hold, or Avoid After This Week’s Results

ASX Reporting Season: What This Week’s Results Mean for Investors

We are halfway through the ASX reporting season, and the message from the market could not be clearer. Companies that deliver steady, reliable results are being rewarded. Companies priced for perfection are getting hammered at the first sign of weakness. The ASX 200 gained 1.8% this week and is flirting with record highs, but beneath the surface, there are big winners and big losers. Here are four stocks that stood out this week and what we think investors should do with each.

What are the Best ASX Stocks to invest in right now?

Check our buy/sell tips

BHP Is Becoming a Copper Company, and That Changes Everything (BUY on Dips)

BHP (ASX: BHP) delivered one of the best results of the season, with underlying profit up 22% to US$6.2 billion and a 46% dividend increase to US$0.73 per share, fully franked. But the bigger story is strategic. For the first time, copper made up more than half of BHP’s earnings. This signals a major shift in what BHP actually is. Add in a US$4.3 billion silver streaming deal, and management is clearly focused on squeezing more value out of its portfolio.

We believe the business is in great shape, but shares have already jumped around 7% to all-time highs. At this price, much of the good news is baked in. Income investors should note that the ex-dividend date is March 5.

Our take: buy on pullbacks, not at the top.

NAB Beats Again, but Banks Are Getting Expensive (HOLD)

National Australia Bank (ASX: NAB) posted quarterly cash earnings of A$2.02 billion, up 16%, and shares hit a record A$47.96. It is the latest of the big four banks to beat expectations this season, and the financials index is now at an all-time high.

The results are strong, but the price already reflects that. Chasing banks at record highs is a risky game. If you own them for dividends, hold. If you are thinking of buying in now, we would suggest waiting for a better entry.

Wesfarmers Sells Off Despite Solid Numbers (CAUTIOUS BUY)

Wesfarmers (ASX: WES) grew profit by 9.3% to A$1.6 billion and lifted its dividend. So why did shares fall 5.6%? Because Bunnings and Kmart revenue came in below what analysts expected, and management warned that cost-of-living pressures are still weighing on shoppers.

This is a high-quality business now trading more than 10% below its 52-week high. For patient and long-term investors, this pullback looks like an opportunity. But consumer headwinds may not ease quickly, so there is no rush.

Zip Co’s 33% Crash Shows What Happens When Growth Stocks Disappoint (AVOID for Now)

Zip Co (ASX: ZIP) posted record half-year earnings, up 86% year on year. Yet shares crashed as much as 38% in a single session after earnings came in slightly below expectations and management guided for flat growth in the second half. This is a textbook example of what happens when a stock is priced for perfection. Even a small miss triggers a brutal sell-off. We think investors should stay on the sidelines until the dust settles.

The Investor’s Halftime Takeaway for ASX Reporting Season

The clear theme so far: boring is beautiful. Banks, miners, and reliable names like Telstra are being rewarded, while high-growth names face punishment for any miss. With Woolworths, Coles, and Qantas still to report, plenty of action remains. Keep an eye on oil prices amid Middle East tensions and gold near US$5,000 an ounce.