Quality reversal to extend as the domestic outlook remains challenged: AUSSIE WEEKLY KICKSTART

研报英文原文证据摘录

Quality reversal to extend as the domestic outlook remains challenged: AUSSIE WEEKLY KICKSTART

Portfolio Strategy Research

15 June 2026 | 10:18PM AEST

AUSSIE WEEKLY KICKSTART

Quality reversal to extend as the domestic outlook remains challenged

n After suffering its worst stretch in 30 years, our war started, and we note that short-term interest rates Matthew Ross

+61(3)9679-1616 |

long-short ‘Quality’ factor has enjoyed a bounce in are still close to post-COVID peaks. matthew.ross@gs.com

Goldman Sachs Australia Pty Ltd

recent weeks. Heading into the financial year-end, n Looking back, valuation was likely another driver of the Tony Wu

‘Quality’ was down 40%. Tech (-37%) and Healthcare +61(3)9679-1402 | tony.wu@gs.com Quality underperformance, but this headwind has now Goldman Sachs Australia Pty Ltd

(-42%) have been the biggest drivers of faded with multiples on ‘Quality’ stocks having

underperformance on the long-side, while the sharp normalised from historical peaks. We recently

rally in ‘low quality’ resource stocks generated large highlighted a list of ‘Quality’ stocks trading at a more

losses on the short-side. Recent weeks have seen this reasonable price and the argument in favour of owning

trend starting to reverse (Quality +7% MTD). Of the these names has only strengthened since. Our ‘Quality’

three factors that contribute to our view of ‘Quality’: screen now trades at an average of 28x forward P/E

Risk, Profitability and Balance Sheet Strength, it has back in-line with the decade average.

been investors rotating into lower risk stocks that have

n While it appears that global investors are still

been the dominant driver (Low Vol +10% MTD).

concerned about the outlook for most software firms in