Your investment options
At Craigs we provide you with the flexibility to build a portfolio of investments from our list of investment options.
We have over 250 investment options available for you to invest in. Our investment options include a range of equity, fixed interest, investment trusts, NZ managed funds, index funds and listed property trust investments, available on local and international listed and unlisted markets.
If you would like to review and make changes to your portfolio please contact your Craigs investment adviser or our Client Services team.
Read our research insights on three of our current investment options below.
Meta Platforms Inc
META.NASDAQ | Technology
Our Classification: Core
Risk indicator: 7/7
Sustainability score: Not yet formulated due to new initiation
About META
Meta is a global technology company focused on connecting people through social media platforms like Facebook, Instagram and WhatsApp.
What makes META different?
Meta has strong and powerful competitive advantages. The network effect through its Family of Apps (FoA) is very powerful and is Meta’s most significant competitive advantage. Meta is the unquestionable leader in social media with four of the top ten apps (Facebook, WhatsApp, Instagram and Facebook Messenger) which gives it unprecedented scale with over four billion users per month and a network which is very hard to replicate. Additionally, Meta’s ecosystem with interconnected social networks where users have built expansive networks of friends and family over many years means that switching tendencies are low.
Opportunities and threats
Meta has healthy growth prospects through being a dominant player in a growing industry. Further, social media is gaining revenue market share within the digital advertising industry largely due to the highly sophisticated ways Meta can identify return on investment on advertising spend due to its targeted marketing approach. Furthermore, Meta continues to increase its user base, drive higher engagement, strategically increase the supply and placement of ads across its platforms and more deeply integrate AI into its value proposition. Meta has invested heavily in making generative AI integral to its platforms, significantly improving ad effectiveness. Meta ultimately aims to use generative AI to become more than just a provider of ad space, but rather a full-service provider of ad generation, distribution, performance measurement and real-time optimisation.
Our view and outlook
Meta is a compelling investment opportunity due to its unmatched scale and dominance in social media, positioning it for continued double digit growth. Meta’s formidable competitive advantages, primarily driven by a powerful network effect make it difficult for users to leave its ecosystem. Meta is well positioned to drive mid teen earnings growth over the medium term, driven by taking market share in a solidly growing industry. Meta continues to grow new growth pillars such as short form video (in response to TikTok), blogging (its answer to X) as well as business messaging and social commerce. Meta trades on a forward earnings multiple of 26.4x, at the upper end of its recent range but reflective of the improving earnings power from its innovative AI initiatives.
ResMed Inc
RMD.ASX | Healthcare
Our Classification: Core
Risk indicator: 7/7
Sustainability score: 4.3
About RMD
RMD develops, manufactures and markets medical devices and masks for the treatment of Obstructive Sleep Apnoea (OSA), an under-diagnosed health issue. In addition, RMD treats adjacent health issues and has a growing health software business.
What makes RMD different?
Growth in RMD’s core business (mask and device sales for sleep apnoea) is set to continue with the majority of sufferers globally still undiagnosed and with increasing recognition of the importance of good quality sleep to overall health. Ongoing efforts to diagnose OSA sufferers provide a long-term growth runway with expectations for the broader market to grow by 5-8% annually. RMD has a history of developing market-leading devices and masks, a capability that should continue to help drive ongoing growth. The company is also focused on technology. Its MyAir app provides software connectivity with its CPAP devices, helping with patient monitoring, increasing adherence rates for users and improving the replacement rate of masks.
Opportunities and threats
RMD has been impacted over concerns around Glucagon-Like Peptide-1 (GLP-1) weight loss drugs that regulate blood sugar and appetite. The American Heart Association estimates that around 70% of OSA patients are obese, suggesting that at least 30% of OSA is related to other factors, such as age, gender, family history and craniofacial abnormalities. Losing weight has been shown to reduce OSA symptoms. What is unclear is how many OSA sufferers will fall below the clinical threshold for treatment after using weight loss drugs. Weight loss drugs are in short supply, expensive and only work while the patient is taking them (most people regain the weight after stopping). RMD’s data suggest that GLP-1 patients are more likely to use Continuous Positive Airway Pressure (CPAP) therapy, which RMD supplies. The market would remain vastly underpenetrated even with a sizeable reduction in the market size.
Our view and outlook
Weight loss is likely to reduce the severity of OSA, though most patients will still require treatment. Even if new drugs meaningfully affect the OSA market, the impact will likely take years to materialise. RMD’s strong earnings power has been evident over the past few quarters, and its products remain exempt from US tariffs under the Nairobi Protocol, which grants duty-free treatment for certain medical devices and equipment.
Scales Corporation Ltd
SCL.NZX | Food & agriculture
Our Classification: Supplementary
Risk indicator: 6/7
Sustainability score: 4.1/5
About SCL
SCL is a market leading agribusiness that has been operating in New Zealand for over 100 years. SCL grows apples for export and operates a Global Proteins business. SCL’s main brand, Mr Apple, is New Zealand’s largest integrated grower and packer of apples.
What makes SCL different?
SCL’s strategy is to shift toward growing and marketing its own premium varieties, in particular those aimed at the Asian consumer. In order to achieve this, SCL is undertaking a major orchard development programme. The programme will reduce near-term volumes through removing lower returning traditional varieties (e.g. Braeburn), and re-planting higher returning varieties. As a result, volume growth in the near term will be relatively benign, but the product mix will be very different. For some context of size, SCL continues to contribute significantly to the national apple crop, with production from its owned and leased orchards accounting for around 18% of New Zealand’s apple exports.
Opportunities and threats
The Mr Apple segment has historically made up over half of SCL’s earnings, making it a critical component of the business. However, in recent years, the apple business has had a difficult time due to a range of events, resulting in a smaller contribution to group earnings. Regardless, we believe the horticulture segment will remain an important part of the overall group given the ongoing demand for New Zealand grown apples. Mr Apple’s varieties have become increasingly suited to the tastes of the Asian and Middle Eastern markets, with around 70% of exports now being sent to these markets. SCL also benefits from its close proximity to these markets and the price premium that higher quality New Zealand apples command.
Our view and outlook
SCL provides an opportunity for investors to gain exposure to New Zealand’s growing primary sector. The company is poised to continue to benefit from growing Asian demand through new developed apple varieties, along with a growing pet food business. With ample balance sheet capacity, there is potential for acquisitions to be undertaken in the short to medium-term. We do, however, note the risks of industry specific events (such as weather or disease) that may impact underlying earnings in any given year.
About risk indicators and sustainability scores
Risk indicators are assessed by Craigs Investment Strategy Group and are rated from 1 (low) to 7 (high). The rating reflects how much the value of the company goes up and down (volatility). A higher risk generally means there is the potential for higher returns over time, but with the risk of higher losses, and there are likely to be more ups and downs along the way. To help you clarify your own attitude to risk, work out your risk profile at craigsip.com/risk-profiler or speak to your Investment Adviser.
Sustainability scores are assessed by Craigs Investment Strategy Group sustainability team and are calculated as an average rating out of five for environmental, social and governance factors. An N/A sustainability score means a sustainability assessment has not been made. For further information on how we calculate these scores, please refer to this report or speak to your Investment Adviser.