Chantal Marx is head of investment research and content at FNB Wealth & Investments
BUY: WeBuyCars
The WeBuyCars (WBC) share price is down over 25% year to date. The reason for this weakness is twofold. First, the entry of competitively priced Chinese vehicles in the South African market coincided with lower interest rates that favoured a shift away from the used vehicle market to new vehicles and placed pressure on WBC’s revenue and margins. Second, the founders reduced their financial stake in the stock in February. While the timing coincided with the onset of the margin squeeze, we do not view the latter activity as indicative of any fundamental change in the investment case but rather a liquidity event following a lock-up period. Despite being inherently cyclical, we believe the company has substantial growth runway in the longer term, as the overall vehicle “parc” in South Africa is still growing (with lower-priced options favoured) and the used vehicle market remains highly fragmented. Additionally, the used vehicle market is more defensive than the new vehicle segment, and potentially higher interest rates in the near term may result in buyer favour returning to used vehicles. Fundamentally, the stock seems attractively priced on a forward earnings multiple of 11.7, and technically it is trading in a major support zone where downside exhaustion may begin to emerge. Analyst activity was negative after the first-half 2026 print but still suggests substantial upside from current levels over the next 12 months.
Take profit: Diversified miners
The diversified major miners have comfortably outperformed the broader market so far this year, performing well over the past few months even as global growth concerns have emerged. This has been a function of a consistent preference for names across the AI value chain, as well as sentiment towards “real assets” holding up well. These positions would have swollen within a broader portfolio context, supporting the case for a reduction in exposure. Additionally, we are concerned that market participants will become more concerned with the growth impact of the Middle East war as it persists, which could lead to downward pressure (or sustained downward pressure in some cases) in commodity-focused names in the near term. On a longer-term perspective, we still like companies like Anglo American, BHP and Glencore and would not advocate a full sale of these positions. The broader technical structures remain constructive for all three.
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