Changes are happening - please bear with us while we update our site.

Changes are happening - please bear with us while we update our site. Click here to give us your advice and feedback.

Domain (DHG) Continues to Climb – How High Can It Go?

The Domain Holdings Australia Ltd (ASX: DHG) share price has continued climbing, up another 3% today on no company news. How high can it go?

The Domain Holdings Australia Ltd (ASX: DHG) share price has continued climbing, up another 3% today on no company news. How high can it go?

About Domain

Domain is the business behind one of Australia’s largest property portals, Domain.com.au, which allows property sellers to try to advertise to as many potential buyers as possible. Some of the other real estate websites it operates include Allhomes.com.au and Commercialrealestate.com.au.

Positive Signs

The Domain share price has been an underperformer since listing back in November 2017, and the share price today is still lower than the original listing price. The last six months, however, have seen the share price grow more than 33% and reach its highest price since October 2018.

So, what’s pushing the company higher?

Domain’s 1H19 results, released in February, really put a fire under the share price despite the company reporting EBIT declining 12%, net profit declining 14.2% and EPS declining 15.1%. Revenue for the period increased by 0.3%.

Despite these results, Domain showed strong growth in key areas such as commercial revenue growth (up 20%) and a 95% increase in Domain Insure quote-to-sales conversions.

More recently, the share price has likely been boosted by a whole host of positive news events for the property market.

The Coalition election win crushed the chances of negative gearing reform. The chances of the RBA cutting rates appear to be increasing which has some investors hopeful that mortgage rates will fall further. Combine this with APRA’s news that they are considering cutting the minimum serviceability rates and things are starting to look more positive for property and companies like Domain or REA Group Ltd (ASX: REA).

There are certainly negative arguments as well, such as increasing levels of household debt and the chance that banks won’t pass on rate cuts to consumers, but the positives seem to be weighing more heavily on the Domain share price.

Is It A Buy?

Domain depends on a strong property market and there are a lot of factors right now that could influence the market in either direction. For this one, I’d have to say it’s not within my circle of competence and I’d be more comfortable investing in one of the companies mentioned in the free report below.

[ls_content_block id=”14945″ para=”paragraphs”]

Disclosure: At the time of writing, Max does not own shares in any of the companies mentioned.

$50,000 per year in passive income from shares? Yes, please!

With interest rates UP, now could be one of the best times to start earning passive income from a portfolio. Imagine earning 4%, 5% — or more — in dividend passive income from the best shares, LICs, or ETFs… it’s like magic.

So how do the best investors do it?

Chief Investment Officer Owen Rask has just released his brand new passive income report. Owen has outlined 10 of his favourite ETFs and shares to watch, his rules for passive income investing, why he would buy ETFs before LICs and more.

You can INSTANTLY access Owen’s report for FREE by CLICKING HERE NOW and creating a 100% FREE Rask Account.

(Psst. By creating a free Rask account, you’ll also get access to 15+ online courses, 1,000+ podcasts, invites to events, a weekly value investing newsletter and more!)

Unsubscribe anytime. Read our TermsFinancial Services GuidePrivacy Policy. We’ll never sell your email address. Our company is Australian owned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

Skip to content