Brokers slash earnings estimates

3 December 2008

Profit growth in 2008/09 is likely to be just 1.7% according to the latest Wren Research survey of broker earnings estimates. That's down 2.1 percentage points from the October consensus and is more than 80% lower than what analysts were forecasting a year ago.

Gold, energy and defensive industrial stocks remain the favoured sectors while banking, finance and property trusts are still viewed with caution.

The most popular major stocks are Origin Energy (ASX:ORG), Newcrest Mining (ASX:NCM), Crown (ASX:CWN), CSL (ASX:CSL) and Telstra (ASX:TLS).

Among the least favoured stocks are Commonwealth Bank (ASX:CBA), Insurance Australia Group (ASX:IAG), National Australia Bank (ASX:NAB), ANZ Banking Group (ASX:ANZ), Alumina (ASX:AWC) and GPT Group (ASX:GPT).