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Macro Intelligence
ASX reporting season reveals key winners and losers in banking and healthcare
In this week's edition of IG Macro Intelligence, we explore the ASX reporting season so far, highlighting the hits and misses.
Deliver or drown
Investors have severely punished companies that failed to meet or exceed market estimates, with some experiencing double-digit losses in their share prices on results day.
Banking on it
Commonwealth Bank of Australia (ASX:CBA)
One company that delivered is Australia's largest bank and stock by market capitalisation, the Commonwealth Bank of Australia.
CBA reported record first-half (H1) cash earnings, driven by robust growth in lending and deposit volumes. Cash profit after tax rose 6% in the six months to December to $5.45 billion, surpassing estimates.
Shareholders will receive an interim dividend of $2.35 per share, higher than last year's payout and above consensus.
CBA H1 FY 2026 financial results
CBA shares surged following the results, despite analysts remaining overly bearish at these levels.
CBA daily candlestick chart
ASX Tradewatch data also indicate CBA shares are in a long-term downtrend, particularly when considering the 200-day moving average (MA). However, rallies are occurring in shorter timeframes, and Heath Moss from HLM Investments bought in after the result.
Notably, CBA is increasing its investment in artificial intelligence (AI).
CBA historical trends and price targets
Despite the impressive results, many analysts still believe CBA, the most expensive banking stock in the developed world, is overvalued.
The average broker suggests investors 'sell' the stock, with an average price target of $127.93, indicating it is approximately 30% overbought. Cchief executive officer (CEO) Matt Comyn is not concerned.
Health check
On the other hand, healthcare stocks such as Pro Medicus, CSL, and Cochlear received a 'health check' after their earnings, with investors opting to sell.
Pro Medicus (ASX:PME)
Pro Medicus shares fell 24% to a multi-year low on the day of its earnings, as its record results fell short of expectations.
Pro Medicus daily candlestick chart
Shares appear to be in a long-term bearish trend, confirmed by multiple indicators.
Pro Medicus historical trends and price targets
Barrenjoey upgraded the stock to 'overweight', stating that its reporting day was a 'bad day to be a software stock' due to AI disruption concerns on Wall Street.
Other brokers share this optimism, with the average target price, as surveyed by Refinitiv, suggesting Pro Medicus can rally a further 80% from current levels.
CEO Dr. Sam Hupert told ausbiz that their pipeline outlook remains solid.
Cochlear (ASX:COH)
Cochlear shares also suffered after their results and appear to be in a long-term bearish trend, indicating that investors see little opportunity in owning the stock.
Cochlear daily candlestick chart
Cochlear H1 FY 2026 financial results
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