Day: September 7, 2021

Top brokers name 3 ASX shares to buy today

ASX shares latest buy ideas upgrade best buy Stopwatch with Time to Buy on the counter

Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of Macquarie, its analysts have retained their outperform rating but cut their price target on this mining giant’s shares to $25.00. Macquarie remains positive on Fortescue and believes it can still generate 10% free cash flow yields in the medium term. This is due to its belief that a reduction in capital expenditure will offset weaker iron ore prices. As a result, it continues to forecast very generous dividend payments in the years to come. The Fortescue share price is fetching $17.92 today.

Healius Ltd (ASX: HLS)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted their price target on this healthcare company’s shares to $5.50. The broker has upgraded its earnings estimates to reflect higher than previously forecast COVID-19 testing volumes. It also notes that FY 2023 is likely to be boosted by testing on international travellers. The Healius share price is trading at $4.98 on Wednesday afternoon.

Sandfire Resources Ltd (ASX: SFR)

Analysts at Macquarie have retained their outperform rating and $9.70 price target on this copper miner’s shares. According to the note, the broker was pleased with the company’s drilling results from the Motheo Project in Botswana. It believes the new discovery could provide it with a big boost to mining inventories. This comes at a time that copper prices are very favourable. The Sandfire Resources share price is trading at $6.58 today.

The post Top brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

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. 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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This ASX 200 share has notched up 5 record highs this month

woman in an office with their fists up after winning

We’re only 8 days into the new month and one ASX 200 share has already beaten its own record high a whopping 5 times.

That’s particularly impressive considering the S&P/ASX 200 Index (ASX: XJO) has fallen 0.33% so far this month.

Additionally, the overachieving stock has seen its share price gain 17% since August’s end.

So, which ASX 200 share is behind such a remarkable performance? Let’s take a look.

Which ASX 200 share is setting records in September?

The TechnologyOne Ltd (ASX: TNE) share price has started September with a bang.

Last Wednesday it hit a record high, reaching $10.31 in intraday trade after announcing a new acquisition. It bested that figure on Friday when it reached $10.52.

This week, it surpassed its brand new record on Monday before besting Monday’s record on Tuesday.

Now, it has a brand new record high of $11.61, which it hit in intraday trade today.

The enterprise software-as-a-service company has called the ASX 200 home since 2014.

Last week TechnologyOne announced it has acquired the UK-based higher education timetabling and resources scheduling software provider Scientia.

TechnologyOne expects the acquisition will cost around $22 million (converted from pound sterling at the current exchange rate), with an initial payment of around $11 million.

TechnologyOne isn’t the only ASX 200 share hitting record highs today.

The Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) share price broke its previous record high when it traded for $38.37 earlier today. While it’s been quiet today, Soul Patts did release a trading update on Monday, which might be spurring its gains.

Additionally, Aristocrat Leisure Limited‘s (ASX: ALL) stock surpassed its previous best today when it hit $47.91. As The Motley Fool reported yesterday, the ASX 200 gaming giant’s day in the green might be being spurred by its online gaming business, which has been relatively unaffected by COVID-19 lockdowns so far.

The post This ASX 200 share has notched up 5 record highs this month appeared first on The Motley Fool Australia.

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

Before you consider TechnologyOne, 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 TechnologyOne 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 owns shares of and has recommended Washington H. Soul Pattinson and Company 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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Warren Buffett’s indicator flashing red. Are we in for a share market crash?

Warren Buffett

Warren Buffett may well be the best-known investor on the globe.

And for good reason.

He bought his first shares 80 years ago and clearly had a knack for understanding the markets.

The 91-year-old investor has now accumulated a net wealth of US$$101.3 billion (AU$136.9 billion), according to Forbes. That makes the Oracle of Omaha the sixth wealthiest man on Earth.

For the past many years, Warren Buffett has been at the helm of Berkshire Hathaway. And while he doesn’t get every market move right, when he speaks, investors tend to listen.

Which is why more than a few investors are taking note that the so-called “Buffett Indicator” is pointing towards a potential share market crash.

What is Warren Buffett saying on global share market valuations?

Warren Buffett’s “Buffett indicator”, if you’re not familiar, divides the total market capitalisation of all the listed shares across the world by global GDP. Any figure above 100% (meaning global shares are valued at more than the world’s total annual output) indicates shares are relatively overvalued.

Now, as Business Insider reports, “Warren Buffett’s favourite market indicator has surged to a record high of 142%, signalling US and international stocks are heavily overpriced and could plummet in the months ahead.”

Back in 2001, Buffett told Fortune magazine the indicator is “probably the best single measure of where valuations stand at any given moment”. It went into the red during the dotcom bust.

Any reading below 80% would “likely be lucrative” for investors to buy shares.

The valuation in the United States share markets using Warren Buffett’s indicator are even more dire. Dividing the total market cap of all US listed shares by US GDP gives an indicator reading of 208%.

Welt market analyst Holger Zschaepitz responded by tweeting (quoted by Business Insider), “BOOM! Global stocks have gained another $US1.6 ($AU2) trillion in market capitalization this week. Equities now worth $US120.3 ($AU162) trillion, highest in history.”

Should we be worried about a crash?

Warren Buffett is doing the right thing by sounding a note of caution.

However, it’s worth bearing in mind that we are not living in ordinary times.

COVID-19 has seen global governments and central banks take extraordinary actions over the past 18 months. This has driven the cost of money to record lows, helping drive up global share prices, while global GDP has been hampered by pandemic related lockdowns and border closures.

Hence, in these extraordinary times, the Buffett indicator may need some retuning.

The post Warren Buffett’s indicator flashing red. Are we in for a share market crash? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

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

More reading

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 Aeris Resources, Macquarie, Novonix, & Qube shares are pushing higher

an arrow with sparks shoots up

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a decline. At the time of writing, the benchmark index is down 0.3% to 7,506.8 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are pushing higher:

Aeris Resources Ltd (ASX: AIS)

The Aeris Resources share price is up over 5% to 19.5 cents. This follows the release of a drilling update by the copper and gold explorer. According to the release, Aeris Resources’ drilling results show that its Constellation deposit is a high grade copper deposit with some exceptionally high grade intersections in the shallow supergene zone.

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price is up 5% to $179.72. This follows the release of a trading update from the the investment bank. According to the release, Macquarie expects its first half profits to be down slightly on the second half of FY 2021. Looking further ahead, the bank believes it is positioned to deliver superior performance in the medium term.

Novonix Ltd (ASX: NVX)

The Novonix share price is up a further 9% to $5.36. This is despite there being no news out of the battery materials company today. However, after the market close on Friday, it was announced that Novonix would be joining the ASX 300 index at the next quarterly rebalance on 20 September.

Qube Holdings Ltd (ASX: QUB)

The Qube share price is up 3.5% to $3.38. This morning the company announced a binding agreement to acquire Newcastle Agri Terminal (NAT). According to the release, the total consideration is in the order of $90 million, which will be funded through Qube’s existing undrawn debt facilities. Completion is expected to occur on 30 September.

The post Why Aeris Resources, Macquarie, Novonix, & Qube shares are pushing higher appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

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

More reading

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 owns shares of and has recommended Macquarie Group 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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