Day: 16 July 2021

I’m a big fan of buy and hold investing and believe it is the best way for investors to grow their wealth.

To demonstrate how successful it can be, I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

This time around I have picked out the three ASX shares that are listed below:

Carsales.Com Ltd (ASX: CAR)

This auto listings company has gone from strength to strength over the last decade. Gone are the days when consumers would look through newspapers for cars to buy. Now they grab their phone or laptop and look online. This shift to online auto listings has led to Carsales delivering consistently strong earnings growth over the period. As has the company’s successful expansion internationally, which continued this year with its entry into the US market. This has ultimately led to its shares generating an average total return of 18.6% per annum over the last 10 years. This would have turned a $20,000 investment into $110,000.

Corporate Travel Management Ltd (ASX: CTD)

This corporate travel booking company’s shares may be trading well below their record high because of the pandemic, but that hasn’t stopped them from outperforming the market materially over the last decade. This has been driven by its very strong revenue and earnings growth over the period. For example, in FY 2011, Corporate Travel Management reported revenue of $64.9 million and profit after tax of $11.8 million. Analysts at Citi are now forecasting a profit after tax of $46.9 million in FY 2022 and then $100 million in FY 2023. Which I feel demonstrates just how far the company has come. Given its strong growth, it won’t be a surprise to learn that its shares have given investors a total return of 29.7% per annum over the period. This would have turned a $20,000 investment into just over $269,400.

ResMed Inc. (ASX: RMD)

Another market beater over the last 10 years has been the ResMed share price. This has been driven by increasing demand for the sleep treatment focused medical device company’s world class portfolio. And with an estimated 1 billion people suffering from sleep apnoea globally, the majority undiagnosed, ResMed still has a long runway for growth. Over the last decade, ResMed’s shares have generated an average total return of 27.4% per annum. This would have turned a $20,000 investment into ~$225,500 today.

The post How to turn $20,000 into $250,000 in 10 years with ASX shares appeared first on The Motley Fool Australia.

More reading

• WAM Leaders thinks these ASX shares might be buys
• Fresh blow to ASX 200 travel shares as Victoria lockdown looms large
• Top brokers name 3 ASX shares to buy today
• 2 ASX 200 blue chip shares tipped as buys
• Why Alkane, Carsales, Platinum, & Stockland shares are tumbling lower

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns shares of and has recommended Corporate Travel Management Limited. The Motley Fool Australia has recommended ResMed Inc. and carsales.com Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Respected fund manager Wilson Asset Management (WAM) has recently identified two ASX shares that it owns in its portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

There’s also one called WAM Active Limited (ASX: WAA) which looks at businesses it thinks are the most undervalued.  

WAM says WAM Active invests in market mispricing opportunities in the Australian market.  

The WAM Active portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 12.1% per annum since inception in January 2008, which is superior to the Bloomberg AusBond Bank Bill Index return per annum of 3%.  

These are the two ASX shares that WAM outlined in its most recent monthly update:

Domino’s Pizza Enterprises Ltd. (ASX: DMP)

WAM Active explains that Domino’s Pizza is a multinational pizza restaurant chain, with the Australian business representing the largest franchisee outside of the US. It also has operations in Europe and Japan.

The fund manager pointed out that in June, Domino’s Pizza entered its tenth market, with an agreement with Formosa International Hotels Corporation to acquire the corporate stores and franchise rights of Domino’s Taiwan for $79 million on a cash and debt free basis.

Domino’s Pizza is the second largest operator in Taiwan with 157 stores and long-term market potential of more than 400 stores.

WAM says that the deal expands Domino’s Pizza Asian market by more than 18%. It has increase its store count outlook in Asia to 1,900 by 2030 to 2032 as a result of the acquisition.

The fund manager is positive about the future of Domino’s Pizza, with “key” growth markets such as Japan and Germany reaching an inflection point supporting a “robust” organic growth profile. The business has the potential for further acquisitions in the future, according to WAM.

Seven West Media Ltd (ASX: SWM)

Seven West was the other ASX share that WAM Active referenced as an opportunity.

The fund manager described Seven West Media as a large diversified media business. It makes content for television, publishing and digital networks.

Seven West is made up of a few different subsidiaries such as the Seven Network and affiliate channels, as well as The West Australian, The Sunday Times and Seven Studios.

WAM pointed out that, last month, Seven West Media released a “positive” fourth quarter trading update. Those quarterly numbers showed advertising revenue grew by more than 45%. Momentum is expected to continue into the quarter ending 30 September 2021.

Seven West Media’s 7plus has also seen a 62% rise in registered users in the year to date. That was faster growth than the market growth of 50.7%. Digital revenue saw an increase of 130% for FY21, with earnings before interest, tax, depreciation and amortisation (EBITDA) of $60 million.

The fund manager is still positive on Seven West Media, with the company expecting to more than double its digital EBITDA in FY22 and continuing cost control. WAM also pointed to the strong free cashflow which is helping de-leverage the balance sheet, which WAM believes is being undervalued by the market.

The post 2 top ASX shares to buy according to WAM appeared first on The Motley Fool Australia.

More reading

• Wilson Asset Management (WAM) thinks these 2 ASX shares are a buy
• 2 excellent ASX shares that could be buy and hold options
• 3 ASX growth shares that could be excellent buy and hold options
• 2 quality ASX growth shares that could be buys in July
• Domino’s Pizza (ASX:DMP) shares fall 3%. What’s going on?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Are you looking for some quality ASX dividend shares to add to your income portfolio next week?

Then you might want to look at the ones listed below. Here’s what you need to know about these dividend shares:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to look at is Accent. It is a retail group with a growing collection of popular footwear-focused store brands.

Among its portfolio are the likes of 4 Workers, Glue Store, HYPEDC, Platypus, Sneaker Lab, Stylerunner, and The Athlete’s Foot. In addition to this, the company has the rights to a number of popular brands in the Australian market.

Accent has been growing at a solid rate for years and has been tipped to continue doing so in the future by Bell Potter. This is thanks to the popularity of its brands and its store expansion plans.

Bell Potter expects this to lead to dividends of 11.7 cents per share in FY 2021 and then 12.3 cents per share in FY 2022. Based on the latest Accent share price of $2.69, this represents fully franked yields of 4.3% and 4.6%, respectively.

The broker has a buy rating and $3.30 price target on its shares.

National Australia Bank Ltd (ASX: NAB)

This banking giant could be a top option for income investors that don’t already have exposure to the sector. This is due to the Australian economy’s strong recovery, the thriving housing market, cost reductions, and its improving outlook.

One broker that is very positive on the bank is Macquarie. A recent note reveals that its analysts have upgraded this banking giant’s shares to an outperform rating with a $28.00 price target.

Macquarie notes that NAB has a strong capital position, which it feels should allow the bank to absorb any negative impacts of the AUSTRAC investigation and a potential COVID-induced economic slowdown.

In respect to dividends, Macquarie is forecasting fully franked dividends of $1.20 per share in FY 2021 and then $1.25 per share in FY 2022. Based on the latest NAB share price of $25.96, this will mean yields of 4.6% and 4.8%, respectively, over the next two years.

The post Here are 2 ASX dividend shares analysts rate as buys appeared first on The Motley Fool Australia.

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• How has the Afterpay (ASX:APT) share price responded to competition in the past?
• It hasn’t been a great week for the ANZ (ASX:ANZ) share price so far
• Why are ASX 200 bank shares in focus on Wednesday?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Santos Ltd (ASX: STO) share price ended the week lower after the company abandoned its plans to drill for oil in the Great Australian Bight.

Shares in Santos finished Friday’s session trading for $7.02 – 1.26% lower than last week’s close.

Santos is the fourth energy company to hand in its licence to explore the area in recent years.

Let’s take a closer look at the latest news from the oil and gas producers.

Santos leaves the Bight

Santos confirmed yesterday it and its joint venture partner Murphy Oil (NYSE: MUR) have ceased exploring the Great Australian Bight.

The joint venture had previously held a licence to explore a 16,525 square kilometre area in the Great Australian Bight since 2013.

The news likely didn’t help the Santos share price. It spent all of Friday in the red.

A Santos spokesperson told The Motley Fool Australia the companies have surrendered their licence as they’ve completed the joint venture’s work program obligations, saying:

The Santos strategy is to build and grow around our five core long-life natural gas assets and the Great Australian Bight falls outside these assets.

Equinor, BP, and Chevron have all previously pulled out of drilling for oil in the Bight.

Bight Petroleum is the last company standing with an exploration licence for the Great Australian Bight.

Drilling in the area has faced intense criticism from environmental groups, with Greenpeace finding an oil spill in the Bight could affect Australian coast lines as far north as Newcastle.

Santos is still moving forward with offshore gas and oil projects in the Northern Territory and Western Australia.

Santos share price snapshot

Despite a poor week on the ASX, the Santos share price has been performing well this year.

It has gained 9.1% since the beginning of 2021. It has also increased by 31.2% since this time last year.

The company has a market capitalisation of around $14.7 billion, with approximately 2 billion shares outstanding.

The post Santos (ASX:STO) share price falls as company abandons drilling in the Bight appeared first on The Motley Fool Australia.

More reading

• Why the Santos (ASX:STO) share price is outperforming Woodside in 2021
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Wednesday
• Are the 10 highest paid ASX 200 CEOs worth their paypackets?
• The Santos (ASX:STO) share price is having a rough month

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Are you interested in boosting your portfolio with some exchange traded funds (ETFs)?

If you are, then you may want to look at these highly rated ETFs listed below. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

If you want to gain exposure to the growing Asian economy, then the BetaShares Asia Technology Tigers ETF could help you achieve it. This ETF gives investors a slice of a number of the most promising tech shares in the Asian market.

This means you’ll be owning well-known companies such as ecommerce giant Alibaba, search engine company Baidu, online retail platform Pinduoduo, and WeChat owner Tencent. These are some of the quickest growing tech companies in the region, with millions of active users and very bright growth prospects.

The index the fund tracks has generated a return of 26.3% per annum over the last five years. This would have turned a $10,000 investment five years ago into over $32,000 today.

BetaShares Global Cybersecurity ETF (ASX: HACK)

A second ASX ETF to look at is the BetaShares Global Cybersecurity ETF. As it names implies, this ETF gives investors exposure to the leading companies in the global cybersecurity sector. This could be a great place to invest, given how demand for cybersecurity services continues to increase due to the growing threat of cyberattacks.

You only need to ask Telstra Corporation Ltd (ASX: TLS) CEO, Andy Penn, about this. As my colleague covered here, Mr Penn has warned that the rise of more sophisticated supercomputers and artificial intelligence (AI) could be one of the greatest threats to Australia’s cybersecurity.

Included in the ETF are quality companies at the forefront of the industry such as Accenture, Cisco, Cloudflare, Crowdstrike, Fortinet, Okta, Splunk, and Zscaler.

Over the last five years, the index the BetaShares Global Cybersecurity ETF tracks has delivered a return of 23% per annum. This would have turn a $10,000 investment five years ago into over $28,000 today.

The post 2 highly rated ETFs for ASX investors appeared first on The Motley Fool Australia.

More reading

• Why do some ASX ETFs have dividend yields of 20% right now?
• 2 quality ETFs that could give your portfolio a big boost
• 3 excellent ASX shares for growth investors in July
• 3 excellent ETFs for ASX investors in July
• 2 ETFs that could be buys in July 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS and BetaShares Asia Technology Tigers ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are some wonderful ASX tech shares that might be long-term opportunities at the current prices.

Tech businesses with a strong operating model can produce good profit margins if they reach sufficient scale.

The below two ASX tech shares are producing growth and are expecting more:

Volpara Health Technologies Ltd (ASX: VHT)

Volpara is currently rated as a buy by Morgans with a price target of $1.87. That suggest a potential upside of more than 60% over the next 12 months if the broker is proven correct.

The company aims to prevent advanced-stage breast cancer through an integrated breast health platform that assists in the delivery on personalised patient care.

Its FY22 focus is risk and genetics. The company aims to invest and improve for both the radiologist and the patient. Whilst its focus is on breast cancer, it’s also “seeking partners” to help give ‘lung’ the focus it deserves.

Its gross profit margin has increased to 91% and Volpara’s market share in the US has improved to around a third.

A key focus of the ASX tech share is increasing its average revenue per user (ARPU).

It wants to increase ARPU by selling a platform, not just a product. On 1 October 2020, it released the Volpara breast health platform. This includes all of its products with the power of multiple integrations to make the suite even more compelling, according to the company. Most new sales are now for two or three products, representing significantly increased ARPU. The relationship with genetics companies is expected to increase that further.

Upselling is an important part of the strategy. Management said that the upselling is a very significant opportunity. It is upgrading MRS 6 users and moving MRS 7 users to the more compelling patient hub, along with Volpara products. The company has seen that for those that upgrade it leads to an increase in 200% to 300% of recurring revenue.

Class Ltd (ASX: CL1)

Class is a leading provider of cloud accounting software for the self-managed superannuation fund (SMSF) sector.

It’s currently rated as a buy by the broker Ord Minnett. The broker has a price target of $2.40 on the ASX tech share, which suggests that the Class share price could potentially rise by around 40% over the next 12 months.

The company is still growing its market share in the SMSF accounting space. But it also has new products that it’s looking to grow its total addressable market with.

It has made acquisitions to enter into other areas like corporate compliance and trust compliance. Those acquisitions include NowInfinity, Smartcorp and ReckonDocs. This allowed it to quickly gain market leadership in the documentation and compliance sector – its market share is now 14% by revenue.

Between FY19 and FY21, it’s looking to increase its revenue from $38 million to $54 million, with an underlying earnings before interest, tax, depreciation and amortisation (EBITDA) margin of 40%.

New Class products can increase its relevance with existing accounting clients, and win new customers, with Class Portfolio and Class Trust.

As Class gets bigger, it’s expecting to need to spend less as a percentage of revenue on product development, which could lead to stronger margins.

The ASX tech share is expecting that being able to offer a suite a products will lead to organic revenue growth.

The post 2 great ASX tech shares that could be buys appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares that could be worth looking at this weekend
• 3 growing small cap ASX shares to watch
• 2 top small cap ASX shares that might be buys
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended VOLPARA FPO NZ. The Motley Fool Australia owns shares of and has recommended Class Limited and VOLPARA FPO NZ. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Australia’s top companies, including those of the S&P/ASX 200 Index (ASX: XJO), are likely having a moment of cyber self-reflection.

This follows a speech from Telstra Corporation Ltd (ASX: TLS) CEO Andy Penn at the National Press Club on Thursday. Mr Penn spoke as the chairman of the federal government’s Cyber Security Industry Advisory Committee.

ASX 200 companies greatest cyber threat

In the speech, Penn warned the rise of more sophisticated supercomputers and artificial intelligence (AI) could be one of the greatest threats to Australia’s cybersecurity. Telstra’s boss went on to say:

Because more abundant and better resourced cybercriminals, cyber activists, and increasingly involved in nation-state actors, means that Australia and Australians are quite literally under constant cyberattack

These comments are echoed by recent events. Australia has been suffering a barrage of cyberattacks. In April, we reported on the Reserve Bank disclosing millions of cyberattacks each day on Australian banks.

Moreover, the nation’s largest meat producer, JBS Foods, was brought to a screeching halt in June following a cyberattack.

These threats could be exacerbated by the advancement in AI and supercomputers in the years to come. Speaking to this, Penn suggested Australia has 5 to 15 years to plan for a time where today’s current encryption technology would become obsolete.

However, the telecommunications boss added, “careful consideration” was needed immediately.

ASX 200 shares have not escaped the past 18 months without feeling the cyber sting. Both Bluescope Steel Limited (ASX: BSL) and Nine Entertainment Co Holdings Ltd (ASX: NEC) have suffered ransomware attacks

ASX companies working in the space

We typically look to the United States court when talking about cybersecurity. Many big-name players including Crowdstrike are based in the States. However, Australia has a few of its own players right on its own doorstep.

While these companies may not be large enough to fit into the ASX 200 just yet, they are growing due to the activity of the sector. One such example is Tesserent Ltd (ASX: TNT), with a market capitalisation of $304.7 million.

As an example, Tesserent’s 12-month trailing revenue has skyrocketed over the past year. This value jumped from $7.77 million at the end of 2019, to $43.78 million at the end of 2020.

Additionally, an even smaller company working in the space is Archtis Ltd (ASX: AR9). This company provides secure information-sharing solutions to a range of government agencies.

These companies are clearly riding on the coattails of the industry. Specifically, both shares outperforming the S&P/ASX 200 Index over the past year. Tesserent has returned 243.7% over the past 12 months, while Archtis has climbed 79.4% over the same period.

The post ASX 200 companies take heed: Telstra (ASX:TLS) boss says Australia faces ‘unprecedented’ cyber threat appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last week
• ASX 200 up, Evolution Mining drops, Appen rises
• Here are 3 heavily traded ASX 200 shares today
• Why the BlueScope (ASX:BSL) share price could be set to jump higher

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CrowdStrike Holdings, Inc. The Motley Fool Australia owns shares of and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Last week was a positive one for the S&P/ASX 200 Index (ASX: XJO). The benchmark index rose 74.8 points or 1% over the five days to end the period at 7,348.1 points.

Unfortunately, not all ASX 200 shares were able to climb higher with the market. Here’s why these were the worst performers on the index:

Zip Co Ltd (ASX: Z1P)

The Zip share price was the worst performer on the ASX 200 last week with a 14.5% decline. Investors were selling the buy now pay later (BNPL) provider’s shares amid increasing competition in the industry. This followed reports that Apple is planning to disrupt the BNPL market with the launch of Apple Pay Later. Investors appear concerned that Apple could steal a significant number of customers away from Zip and its QuadPay business. This could put significant pressure on growth rates in the coming years if the reports turn out to be true. In addition, news that PayPal will be removing late fees from its BNPL offering also weighed on sentiment.

Afterpay Ltd (ASX: APT)

The Afterpay share price wasn’t far behind with a disappointing 12.2% decline. This was also due to speculation that tech behemoth Apple is planning to enter the BNPL market. Bloomberg believes Apple will soon launch Apple Pay Later, allowing consumers to pay for any Apple Pay purchase in instalments. The tech giant will use Goldman Sachs as the lender for the instalment loans. Apple reportedly sees it as a weigh to boost Apple Pay transactions, giving its US$50 billion a year services a lift.

PolyNovo Ltd (ASX: PNV)

The PolyNovo share price was a poor performer and tumbled 11.6% over the five days. This was driven by the release of the medical device company’s sales update for FY 2021 which underwhelmed a couple of leading brokers. In response to the release, both Bell Potter and Ord Minnett downgraded the company’s shares to hold ratings and cut their price targets. Bell Potter’s price target has reduced to $2.65 whereas Ord Minnett cut its price target to $2.54.

Mesoblast limited (ASX: MSB)

The Mesoblast share price was some way behind as the next worst performer with a 5.7% decline last week. The majority of this decline came on Friday following the release of further data relating to its respiratory function results from its COVID-19 trial. The clinical results relate to Mesoblast’s randomised controlled trial of its remestemcel-L product on ventilator dependent COVID-19 patients. Most of the data had been previously released.

The post These were the worst performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• ASX 200 up, Evolution Mining drops, Appen rises
• Here are 3 heavily traded ASX 200 shares today
• How has the Afterpay (ASX:APT) share price responded to competition in the past?
• Here’s why the Mesoblast (ASX:MSB) share price is sinking today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, POLYNOVO FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Wesfarmers Ltd (ASX: WES) share price ended the week strong despite its latest acquisition target reportedly facing a class action.

The Wesfarmers share price finished the week trading for $59.01 – 1.7% higher than where it started.

The gains follow a surprise acquisition offer posted from the ASX giant to Australian Pharmaceutical Industries Ltd.  

Wesfarmers offered to buy all shares in the owner of Priceline for $1.38 apiece – a 21% premium on the Australian Pharmaceutical Industries share price’s last close.

Unfortunately, Australian Pharmaceutical Industries was back in the headlines yesterday, as more than 30 Priceline Pharmacy franchisees are reportedly advancing their class action against the company.

Let’s take a closer look.

Priceline class action

The Australian Financial Review (AFR) reported yesterday a class action against Australian Pharmaceutical Industries is expected to be lodged in the Victorian Supreme Court next month.

News of the class action has been swirling since late last year.

The Wesfarmers share price hasn’t been noticeably affected by the recent reporting.

Australian Pharmaceutical Industries owns all Priceline stores but Priceline Pharmacy stores operate under a franchise model.

According to ClassPR, the class action claims the Priceline Pharmacy franchise agreement breaches Victorian, New South Wales, and Queensland legislation. It also claims the agreement limits pharmacies’ profitability.

ClassPR is a public relations company working closely with Levitt Robinson Solicitors. Levitt Robinson Solicitors is the law firm acting on behalf of current and former Priceline Pharmacy franchisees.

The franchisees are claiming Australian Pharmaceutical Industries dictate what franchisees can stock, from whom they can order products, how they arrange their stores, and how they price saleable items.

Additionally, the AFR reported that Australian Pharmaceutical Industries charges franchisees 6% of the value of over-the-counter sales. It also charges franchisees 3% of all sales in which a customer uses the Priceline rewards system.

According to AFR, an Australian Pharmaceutical Industries spokesperson stated the company isn’t concerned about the class action.

 Wesfarmers share price snapshot

2021 has been a good year so far for the Wesfarmers share price.

It has currently gained 14.6% year to date. It is also 26.8% higher than it was this time last year.

The company has a market capitalisation of around $66.4 billion, with approximately 1.1 billion shares outstanding.

The post Wesfarmers (ASX:WES) share price not hampered by news of class action appeared first on The Motley Fool Australia.

More reading

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• Now’s the time to buy up mega-cap tech shares

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) was on form last week and pushed higher. The benchmark index rose 74.8 points or 1% over the period to end at 7,348.1 points.

While a good number of ASX 200 shares climbed higher with the market, some climbed more than most. Here’s why these were the best performers on the index last week:

Spark Infrastructure Group (ASX: SKI)

The Spark share price was the best performer on the ASX 200 last week with a gain of 17.4%. The catalyst for this was the energy network operator receiving and then rejecting a takeover approach. Spark revealed that it received a conditional and non-binding indicative proposal from Ontario Teachers’ Pension Plan Board (OTPP) and Kohlberg Kravis Roberts & Co (KKR) of $2.70 cash per share. The Spark Board believes it undervalues the company.

NRW Holdings Limited (ASX: NWH)

The NRW share price wasn’t far behind with a gain of 16.5% over the week. This was driven by news that Boggabri Coal Operations has exercised an option to acquire the majority of the major mining equipment of NRW’s Golding Contractors. The equipment will be sold for ~$81 million, of which ~$64 million will pay down asset financing debt. This went down well with analysts at Macquarie. In response they retained their outperform rating and $2.10 price target on the company’s shares.

Perenti Global Ltd (ASX: PRN)

The Perenti share price was on form and charged 12.3% over the five days. This was despite there being no news out of the mining services company. Though, the company was the subject of a positive broker note out of Macquarie. Its analysts retained their outperform rating and lifted their price target to 95 cents. The broker believes its work in hand and order book will support strong free cash flow and underpin a generous dividend.

ARB Corporation Limited (ASX: ARB)

The ARB share price was a strong performer last week and jumped 12.2%. Investors were buying the 4×4 parts manufacturer’s shares following the release of a market update. According to the release, ARB achieved a 33.9% increase in unaudited sales revenue to $623 million in FY 2021. Things were even better on the bottom line thanks to margin expansion. The company expects its profit before tax to be within the range of $145 million to $150 million. This will be an increase of 85.5% to 92% on FY 2020’s profit before tax of $78.1 million.

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• ASX 200 up, Evolution Mining drops, Appen rises
• Here are 3 heavily traded ASX 200 shares today
• Why the BlueScope (ASX:BSL) share price could be set to jump higher
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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