Day: August 21, 2021

Analysts rate these ASX tech shares as buys

rise in asx tech share price represented by digitised rocket shooting out of person's hand

If you’re looking for good long term options, then the tech sector could be a place for investors to start their search.

This is because the sector is home to a number of companies that have the potential to grow strongly over the next decade.

Two ASX tech shares that are highly rated are named below. Here’s why analysts rate them as buys:

Adore Beauty Group Limited (ASX: ABY)

The first ASX tech share to look at is Adore Beauty. Australia’s leading online beauty retailer has been growing strongly in recent years thanks to the structural shift online, which accelerated during the pandemic.

In fact, Adore Beauty is expecting to report a 43% to 47% increase in full year revenue in FY 2021 thanks to a sales surge during the height of the pandemic. And while it will be hard to deliver similarly strong growth in FY 2022, its long term growth trajectory looks very positive.

This is because online penetration rates for beauty products are still much lower than other categories and in comparison to other Western markets.

The company notes that the beauty and personal care (BPC) market in Australia is worth $11.2 billion and is expected to grow at a 26% CAGR through to 2024. It also notes that online sales comprise just 11.4% of the BPC market at present.

As a result, Adore Beauty appears very well-positioned to continue its growth over the next decade. Particularly given its leadership position in the growing online market. Another positive is that the Adore Beauty Loyalty program launched in March, with sign-ups ahead of expectations.

UBS is a fan of Adore Beauty. Its analysts currently have a buy rating and $5.60 price target on the company’s shares. UBS believes the company will benefit from structural tailwinds in the coming years.

Xero Limited (ASX: XRO)

Another ASX tech share to look at is Xero. It provides small and medium sized businesses with a cloud-based business and accounting solution.

Xero was on form again in FY 2021, recording a 20% increase in subscribers to 2.74 million. This was driven by a 20% increase in ANZ subscribers to 1.56 million and a 21% lift in International subscribers to 1.18 million. The latter includes 720,000 subscribers in the UK market.

Pleasingly, the company is still only scratching at the surface of its global market opportunity. Management estimates that it total addressable market is currently 45 million subscribers.

In addition to this, the company’s growth should be boosted by its growing app ecosystem.

Goldman Sachs believes that if Xero can monetise this ecosystem and execute its international expansion successfully, it has the potential to underpin strong top line growth for a long time to come.

In light of this, the broker is very bullish on Xero and has a buy rating and $165.00 price target on its shares.

The post Analysts rate these ASX tech shares as buys appeared first on The Motley Fool Australia.

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When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

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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. owns shares of and has recommended Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended Xero. 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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Here’s why the AMP (ASX:AMP) share price is down 9% in a week

Man in shirt and tie falls face first down stairs

The AMP Ltd (ASX: AMP) share price is having a tough run lately. It slipped 8.6% last week, despite silence from the company.

Though, AMP had a big week last week. In fact, the diversified financial services provider released its financial 2021 results and was in the media a number of times.

After finishing the previous week at $1.16, AMP’s shares closed Friday’s session trading for $1.06 apiece.

Let’s take a closer look at what’s driven the AMP share price over the past 7 days.

AMP’s poor week’s performance

The first piece of news that likely impacted the AMP share price last week actually hit the market the week before.

AMP released its earnings for the first half of 2021 after the ASX closed on Thursday. In reaction, the AMP share price soared 3.57% on Friday.

AMP reported its net profits had increased 57% over the 6 months ended 30 June. However, it decided against handing its shareholders an interim dividend.

The AMP share price’s fall last week could, therefore, have been a result of it realigning after the single day’s gain.

Though, it could also have been due to AMP’s newly appointed CEO Alexis George’s media rounds.

While George hadn’t been in the media much last week, on Thursday and Friday of the week before she had multiple discussions on AMP’s future with numerous outlets.

George told one outlet she plans to increase AMP’s focus on technology. She told another that AMP shareholders should strap in for a slow, ultimately upwards-facing, journey.  

Finally, on Friday night, The Australian published an article in which George stated AMP’s banking and mortgage segment houses major opportunities for the company.

Whatever the reason for AMP’s shares’ recent woes, the future looks like it might be brighter. At least, the company’s CEO thinks so.

AMP share price snapshot

It hasn’t been a good year for AMP’s stock.

It’s fallen 32% year to date. It has also dropped 25% since this time last year.

The post Here’s why the AMP (ASX:AMP) share price is down 9% in a week appeared first on The Motley Fool Australia.

Should you invest $1,000 in AMP right now?

Before you consider AMP, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and AMP wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

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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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Why the Woodside (ASX:WPL) share price is down 11% in a week

asx share investor lookly sadly at barrel of oil leaking on floor

The Woodside Petroleum Limited (ASX: WPL) share price has fallen 11.2% over the last week on the back of some controversial news.

Woodside’s stock finished last week at $22.19. However, when the market closed on Friday this week, Woodside shares were worth $19.70 each.

Let’s take a look at the oil and gas producer’s turbulent week on the ASX.

The week that was for Woodside

The week started off red for the Woodside share price.

On Monday, both Woodside and BHP Group Ltd (ASX: BHP) confirmed they were in discussions regarding Woodside potentially taking on BHP’s oil and gas business.

While it was all just rumours and chatting back then, the Woodside share price fell 4.55% in anticipation of things to come.

Then, on Tuesday, reports emerged that key Woodside shareholders were against the idea. Though, that debate didn’t last long.

After the market closed on Tuesday, Woodside announced it will, indeed, be merging with BHP’s oil and gas segment.

After the proposed merger, the newly expanded Woodside will be 52% owned by Woodside shareholders, and 48% by BHP shareholders. The two companies spoke of a merged entity with stronger cash flows, more resilience, and more than US$400 million of annual synergies.

Then, on Wednesday morning, Woodside released its results for the 6 months ended 30 June 2021.

If Woodside had counted on news of its $317 million profit, US30 cents dividend, and newly appointed CEO outweighing the oil-covered elephant in the room, its hopes were soon dashed.

The market sent the Woodside share price sliding 2.12% on Wednesday.

That wasn’t the end of the bad week though. Woodside shares slumped another 3.4% on Thursday and didn’t manage to correct themselves much on Friday.

Woodside share price snapshot

The bad week has dragged the Woodside share price deeper into the red this year.

Currently, its 15% lower than it was at the start of 2021. It has also dropped 2.4% since this time last year.

The post Why the Woodside (ASX:WPL) share price is down 11% in a week appeared first on The Motley Fool Australia.

Should you invest $1,000 in Woodside Petroleum right now?

Before you consider Woodside Petroleum , you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woodside Petroleum wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

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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What can we learn from the Qantas (ASX:QAN) share price history?

outline of a Qantas plane against backdrop of share price chart

The Qantas Airways Limited (ASX: QAN) share price has not been one that has enjoyed 2021 so far. At the time of writing, Qantas shares remain down by around 13% year to date.

With the airline scheduled to report its FY2021 earnings next Thursday, it might be a good time to jump into the Qantas share price history to see if we can learn anything today.

Qantas is a company that many investors might feel a special attachment to. The ‘flying kangaroo’ used to be a government-owned company before its privatisation back in the 1990s. Today, it is listed on the ASX boards as a public company, available for all Aussie investors.

What does the Qantas share price flight path look like?

Well, to start things off, here is a graph of Qantas share price over the past decade:

Qantas share price graph
QAN 10-year chart and pricing data | source: fool.com.au

As you can see, it hasn’t exactly been a smooth ascent over the past 10 years. As an airline, Qantas is a company that faces wildly cyclical business conditions. Its profitability rests on many factors, including oil prices, competition, Australian dollar exchange rates, demand for tourism and travel, and the overall health of the economy.

You can see this cyclicality reflected in the Qantas share price.

Of course, the biggest hit that Qantas has taken in the past decade came last year with the onset of the coronavirus.

As soon as it became evident that both international and domestic travel would be shuttered last year, the Qantas share price went into freefall. In December 2020, Qantas shares were at an all-time high, over $7. But by late March 2020, the company had fallen to less than $2.50 a share.

Qantas shares have faced a lot of turbulence (last pun, I promise) in the months since too. With lockdowns, international ‘bubbles’ and travel restrictions whipsawing wildly from state to state, and country to country, over the past 18 months or so, Qantas has certainly had to endure plenty of uncertainty.

The more recent Delta outbreaks have clearly not been helpful to the company. Qantas shares are now down more than 13% since the start of July.

So it will be interesting to hear what the flying kangaroo has to say next Thursday when it reports its earnings.
At recent Qantas share pricing, the airline has a market capitalisation of $8.19 billion.

The post What can we learn from the Qantas (ASX:QAN) share price history? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Qantas right now?

Before you consider Qantas, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Qantas wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Sebastian Bowen 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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