Southern Cross Electrical Engineering, an ASX stock you cano not ignore. It helps build datacentres
Southern Cross Electrical Engineering $Southern Cross Electrical Engineering Ltd(SXE.AU$ shares are up 87% this year and have outperformed the Nasdaq, and a lot of tech an AI darlings. That's because SXE provides the electrical engineering services to data centres in Australia.
SXE provides electrical engineering and maintenance services for data centre construction projects throughout Australia.
At the Australian Shareholders Association (ASA) Annual Conference I presented Buy Hold Sell, covering 20 stocks alongside Henry Jennings on Sunday May 19 2024 and SXE was one of the stocks we covered.
Below is what you need to know about SXE:
- SXE shares + 87% % YTD.
- Southern Cross Electrical Engineering $Southern Cross Electrical Engineering Ltd(SXE.AU$ is cheaper than the ASX200 as it trades on the PE of 18 times earnings, where as the ASX200 $S&P/ASX 200(.XJO.AU$ trades 19 times earnings. Plus it's forward earnings are stronger than the ASX200 as well. SXE's earnings are expected to grow 153% vs the ASX200 which is only expected to see low single digit earnings growth.
- Southern Cross Electrical Engineering is relatively little known by large investment banks and it's only covered by small brokers (just three). So to some, you could say this stock has been flying under the radar of some investors
- SXE's Revenue -16% in 2023. Rev' Expected to fall 16% this year to $518 million.
- It's a profitable business. Net income growth of 30% last year. 153% net income growth expected this year to $22 million net income this year.
- Southern Cross Electrical Engineering has just entered and earnings upgrade cycle and has seen its revenue, earnings and operating profit upgraded by analysts over the last 4 weeks.
This is a positive for its shares as earnings revisions and earnings upgrades usually drive share price growth.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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Moomoo Official Market Strategist
Investment strategist, featured on TV, radio, newspapers.
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151453268 witso : Very healthy Aussie electrical engineering stock , haven’t explored this data-centre space a lot but can understand the potential , Jess you seem to be all over these tec related areas this could have future legs