Day: 26 September 2021

ASX 200 travel shares like Qantas Airways Limited (ASX: QAN) and Flight Centre Travel Group Ltd (ASX: FLT) are soaring this morning.

At the time of writing, shares in Australia’s national carrier are trading for $5.85 (up 3.72%) and shares in the travel agency are $21.50 (up 8.64%).

The catalyst for today’s rocketing prices in the industry seems to be renewed optimism that Australia is about to open up and come out of this pandemic.

Let’s take a closer look.

“Learn to live with COVID”

These are the words of Prime Minister Scott Morrison when asked about Australia’s plans to open up at the end of last month. The ASX 200 has taken a hit during this latest delta outbreak but it seems things may be starting to change.

Australians have seemingly heeded the Prime Minister’s words. According to the Australian Broadcasting Corporation, Australia has one of the highest vaccination uptake rates in the world.

This morning, NSW Premier Gladys Berejiklian released her plans to open up her state once 80% of its residents are fully vaccinated. Community sport will return, intrastate travel will resume, and outdoor entertainment (such as concerts and sports) will see audiences return to a 75% capacity limit.

Last week, Victoria released its plan to exit lockdown once the state hits 80% of its residents double-dosed. Pubs, restaurants, and hair salons will reopen at that benchmark. Schools will also reopen.

It must be stressed that in Australia’s 2 largest states, these returning freedoms will only be for those who are fully immunised against the virus.

All this is pointing towards a nation that is, seemingly, learning to live with the virus. This optimism may be oozing through to ASX 200 travel shares.

Politicians are strongly indicating international travel will return with hotel quarantine to be significantly scaled back in favour of home quarantine.

As The Motley Fool’s own Scott Phillips says, share prices are more a function of expectations than results. ASX 200 travel shares are still not at their pre-COVID levels.

Qantas, Flight Centre, and Webjet Limited (ASX: WEB) shares, despite surging today, are still lower now than they were before the pandemic began. Investors may be expecting this situation to change soon.

The post Why these ASX 200 travel shares are flying this Monday appeared first on The Motley Fool Australia.

More reading

• Here’s why the Qantas (ASX:QAN) share price hit a new 52 week high today
• How has the Flight Centre (ASX:FLT) share price been performing since reporting results?
• These are the 10 most shorted ASX shares
• Guess which sector this week’s top performing ASX 200 shares come from
• Why the Flight Centre (ASX:FLT) share price reached a new 52-week high today

Motley Fool contributor Marc Sidarous owns shares of Qantas Airways Limited. 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 Webjet Ltd. The Motley Fool Australia has recommended Flight Centre Travel 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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The Qantas Airways Limited (ASX: QAN) share price has left the runway this morning and now trades at $5.86.

It has landed 4% in the green and consequently set a new 52 week high this morning, reaching an intraday high of $5.88 in early trade.

In fact, it’s been a tremendous month for the Qantas share price, climbing 16% in this time.

Here’s what we know is behind these gains.

What’s tailwinds are behind the Qantas share price?

The key takeouts as to what’s driving the Qantas share price lately are its updated flight policies that have been rolled out in the past few weeks.

In the last week or two, Qantas unveiled its plans to restart international flight routes to several destinations, starting mid-December.

Qantas is partly basing its decision on the forecasted COVID-19 vaccination rates, which would allow for the “reopening” of the economy.

At the current rate, it appears this could happen as soon as November – around the same time the US intends to open its borders to vaccinated travellers from 33 countries.

And that’s not all – the flying kangaroo intends to capitalise on recent changes to border restrictions, offering cheap flights for Aussies in lockdown.

It recently held a “flash sale” where tickets were available to purchase for as little as $20 each, and covered cities such as Melbourne, Newcastle, and even Byron Bay.

Let’s also remember how the market values shares in the first place – it’s a combination of past earnings history and future earnings expectations.

In light of the policy announcements from Qantas, Australia’s vaccination targets, softening border restrictions on the global scale, these all weigh in on the investment picture.

So it appears that investors may already be pricing in this momentum to the Qantas share price, which the airway is set to benefit from November onwards.

Zooming out, we see Air New Zealand Limited (ASX: AIZ) and Flight Centre Travel Group Ltd (ASX: FLT)’s share price behaving similarly over the last month or so, indicating there is strength across the broad travel sector as well.

The sum of these factors appears to be propelling the Qantas share price lately.

Qantas share price snapshot

The Qantas share price has climbed 21% higher this year to date, extending its gains over the past 12 months to 51%. A healthy recovery in the face of the pandemic.

Both of these results have outpaced the S&P/ASX 200 index (ASX: XJO)’s return of around 25% over the last year.

The post Here’s why the Qantas (ASX:QAN) share price hit a new 52 week high today appeared first on The Motley Fool Australia.

More reading

• Why the Qantas (ASX:QAN) share price is rallying 3% on Thursday
• How has the Qantas (ASX:QAN) share price performed since reporting results?
• Qantas (ASX: QAN) share price higher as US plans to open air travel
• Qantas (ASX:QAN) share price gains amid $20 flights resting on domestic reopening
• How have these 3 ASX 200 travel shares performed since reporting results?

The author Zach Bristow has no positions 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 Flight Centre Travel 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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The Fleetwood Corporation Limited (ASX: FWD) share price has started the day strongly in the green.

Shares in the building solutions company are bidding higher on the back of an announcement earlier today.

Let’s take a look at why investors are pushing the Fleetwood share price higher.

Fleetwood share price soars on contract news

Shares in Fleetwood have been boosted following a major announcement earlier today.

The company revealed it has secured a major contract for the new 1000-bed quarantine facility, the Centre for National Resilience, in Melbourne.

According to the release, Fleetwood will utilise its manufacturing facilities to deliver 500 beds by the end of 2021.

The company highlighted that the contract is expected to result in revenue of approximately $32 million for FY22.

The Centre for National Resilience is a purpose-built quarantine facility, built and owned by the federal government.

The facility will be operated by the Victorian government for the duration of the COVID-19 pandemic.

Fleetwood’s Chief Executive Officer Bruce Nicholson noted:

This is an outstanding outcome for the company and highlights the strengths of using innovative offsite manufacturing to deliver highly effective and efficient products with strong sustainability credentials.

More on Fleetwood

Fleetwood is a leader in the modular construction industry and is a key supplier to the education, health, custodial, mining and affordable housing sectors.

Shares in the construction company took a blow recently after the company provided an operations update.

Fleetwood noted a slow and cautious recovery in the building industry following COVID-19 lockdowns in New South Wales and Victoria.

As a result of the current uncertainty, the company noted that clients have been very conservative and slow in their decision making.

In addition, Fleetwood noted that ongoing border closures and uncertainty around domestic travel have impacted its recreational vehicles (RV) business.

The company noted that foot traffic has also declined across its retail channels, while online and click and collect channels also showed signs of slowing.

Fleetwood had recently addressed the direct impact that various COVID-19 restrictions were having on its operations in its full-year report.

Snapshot of the ANZ share price

Shares in Fleetwood have soared more than 12% since the start of 2021.

However, the company’s share price is still well off its 52-week highs from earlier this year.

At the time of writing, shares in Fleetwood are trading more than 2.64% higher for the day at $2.33.

The post Fleetwood (ASX:FWD) share price jumps on secured contract success appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Fortescue jumps, Wesfarmers dealt takeover blow
• Energy shares are leading the ASX 200 on Monday
• Silex (ASX:SLX) share price sinks 10% on capital raising efforts
• MoneyMe (ASX:MME) share price gains 3% on new funding agreement
• Why is the Afterpay (ASX:APT) share price falling today?

Motley Fool contributor Nikhil Gangaram 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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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a solid gain. The benchmark index is currently up 0.9% to 7,408 points.

Here’s what is happening on the ASX 200 today:

Mining shares drive ASX 200 higher

It has been a positive start to the week for the mining giants BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG), and Rio Tinto Limited (ASX: RIO). They are all helping to drive the ASX 200 higher on Monday after the iron ore price continued its recovery on Friday night. According to Metal Bulletin, the spot benchmark iron ore price rose 2.4% to US$111.33 a tonne.

Sandfire shares returns and sink

One mining share not rising today is Sandfire Resources Ltd (ASX: SFR). The Sandfire share price is sinking after announcing the successful completion of the institutional component of its equity raising. The copper miner has raised $926 million at $5.40 per new share. This represents a 13.2% discount to its last close price. These funds are being used to acquire the Matsa mining complex in Spain.

Wesfarmers outbid for API

The Wesfarmers Ltd (ASX: WES) share price is trading lower today after being dealt a takeover blow. This morning Sigma Healthcare Ltd (ASX: SIG) made a $1.57 per share offer to acquire pharmacy chain operator and distributor Australian Pharmaceutical Industries Ltd (ASX: API). This compares to the $1.55 per share offer Wesfarmers made. The API board has granted Sigma due diligence to facilitate a binding offer. It believes the offer is more favourable to shareholders.

Best and worst ASX 200 performers

The best performer on the ASX 200 today has been the Flight Centre Travel Group Ltd (ASX: FLT) share price with an 8% gain. This appears to have been driven by a positive reaction to New South Wales’ roadmap out of lockdown. The worst performer has been the Sandfire share price with a 12% decline following its equity raising.

The post ASX 200 (ASX:XJO) midday update: Fortescue jumps, Wesfarmers dealt takeover blow appeared first on The Motley Fool Australia.

More reading

• Energy shares are leading the ASX 200 on Monday
• Leading brokers name 3 ASX shares to buy today
• The Sandfire (ASX:SFR) share price drops 13% on entitlement offer completion
• API (ASX:API) share price heats up as bidding war begins
• Here’s why the Fortescue (ASX:FMG) share price is down 11% in a week

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 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), the S&P/ASX 200 Energy Index (ASX: XEJ), and the price of oil are all in the green on Monday.  

In fact, the ASX 200 energy sector is leading the broader market. It has gained an impressive 2.46% at the time of writing.

For comparison, the ASX 200 is currently up 0.85%.

And that gain isn’t far ahead of the surge that oil prices are currently enjoying.

According to CNBC, the price of West Texas Intermediate Crude oil has taken off over the past 24 hours. It’s gained 1.6% to reach US$75.19 a barrel at the time of writing. The cost of Brent crude oil is doing well too, having increased 1.6% to reach US$79.38 a barrel.

Of course, the share prices of ASX 200 energy giants are also enjoying a day in the sun.

The Woodside Petroleum Limited (ASX: WPL) share price is leading the index with a 3.6% gain.

Meanwhile, the Santos Ltd (ASX: STO) share price is currently up 2.2%, and Oil Search Ltd (ASX: OSH) has gained 2.4%.

Viva Energy Group Ltd‘s (ASX: VEA) stock is bringing up the ASX 200 Energy Index’s rear. At the time of writing, it has gained 0.8%.

Let’s take a look at what’s got the energy sector up in the air on Monday.

ASX 200 energy sector up alongside oil price

The ASX 200 energy sector is leading the market today as the price of oil surges once more.

According to reports by Reuters, the price of oil is continuing its climb as global supply chains remain disrupted.

The disruption is part of the aftermath of Hurricane Ida, which wiped out numerous oil drilling and refining operations in the Gulf of Mexico, resulting in oil spills.

Oil producers are reportedly pulling barrels of the commodity from their inventory to sate demand as they battle to get their operations back up and running.

Additionally, some members of OPEC+ are struggling to pick up the slack as under-investment and maintenance delays weigh on their production abilities.

All this has left the global market demanding more oil than is available, jacking up prices as a result.

Fortunately, the ASX 200 and its energy sector is seemingly profiting off the oil market’s struggles.

The post Energy shares are leading the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• How does the Telstra (ASX:TLS) dividend compare to ASX 200 shares?
• September hasn’t been a great month so far for the ANZ (ASX:ANZ) share price
• There’s a shock coming for ASX investors: expert
• 5 things to watch on the ASX 200 on Monday
• Is this ASX 200 miner one of the best value shares to buy today

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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The Silex Systems Ltd (ASX: SLX) share price is plummeting today after the company provided an update on its equity raise.

At the time of writing, the nuclear energy and semiconductor company’s shares are trading at $1.35, down 10%.

What did Silex announce?

Investors are heading for the hills after the Silex share price came out of a trading halt today.

In this morning’s release, Silex advised it has successfully completed an institutional placement. The offer received significant interest from domestic, international and uranium specialist institutions, raising $33 million.

Silex will issue around 26 million ordinary shares under the placement, which represents about 15.5% of its entire issued capital. The company set the price for each share at $1.27 apiece. This reflects an 11.8% discount on the last closing price of $1.44 traded on 22 September.

In addition, the company has launched a share purchase plan (SPP) to retail investors to raise another $7 million. It will offer an issue price at $1.31, slightly above the institutional placement price to meet the requirements of the listing rules.

What are the funds for?

The company will use the funds received from the equity raise for several initiatives, which include:

• Advance the SILEX uranium enrichment pilot demonstration project at Global Laser Enrichment’s (GLE) Test Loop Facility in the United States;
• Assessment and potential development of opportunities for advanced nuclear fuel production with GLE;
• Scale-up of Zero-Spin Silicon production capacity for quantum computing;
• Develop additional applications of SILEX technology; and
• General working capital requirements and strengthen the company’s balance sheet.

Management commentary

Silex CEO and managing director Michael Goldsworthy said:

This equity raising secures Silex’s funding through to 2024 to further advance our SILEX enrichment technology commercialisation activities and to focus on the Paducah uranium production opportunity being planned by US-based exclusive licensee GLE.

With the outlook for nuclear power continuing to improve around the world and the demand for uranium, enriched silicon and other isotopes increasing, Silex is well-placed to respond quickly and efficiently to opportunities as they arise.

Silex share price review

It’s been a mixed year for Silex shares, which has moved in circles for much of the 12-month period. However, the company’s shares reached a 52-week high of $1.97 recently before treading lower, possibly due to profit-taking.

The Silex share price is roughly 139% higher since this time last year and is up 51.6% year-to-date.

The post Silex (ASX:SLX) share price sinks 10% on capital raising efforts appeared first on The Motley Fool Australia.

More reading

• The Silex (ASX:SLX) share price surged 20% to a 6-year high on Monday
• The Silex (ASX:SLX) share price rocketed 24% on Thursday

Motley Fool contributor Aaron Teboneras 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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The MoneyMe Ltd (ASX: MME) share price is taking off this morning after the company released news of a partnership.

The credit provider has secured $50 million through a new strategic funding partnership with Pacific Equity Partners.

At the time of writing, the MoneyMe share price is $2.13, 2.9% higher than at Friday’s close.

Let’s take a closer look at today’s news from MoneyMe.

MoneyMe’s new funding partnership

The MoneyMe share price is in the green after the company announced it has entered a funding partnership with Pacific Equity Partners.

Pacific Equity Partners is an Australian investment firm with around $7.1 billion of funds under management.

Under the partnership, MoneyMe has gained an initial $50 million funding commitment.

The funding will be allocated through a 4-year secured hybrid funding instrument and documented under a syndicated facility agreement.

The cash injection will go towards growing MoneyMe’s product suite and its new Autopay car loan product.

MoneyMe will also use the funds to develop and deliver new products. The new products will build from its successful ListReady, Autopay, MoneyMe+, and Freestyle products.

Some of the cash will also be used to repay its $22 million secured note facility.

MoneyMe also plans to expand its securitisation warehouse program, which maintains a cost of funds of less than 5%.

Commentary from management

MoneyMe’s managing director and CEO, Clayton Howes, commented on the news driving the company’s share price today:

MoneyMe’s high growth trajectory from its personal loan and Freestyle products has accelerated with the recent launch of products in the larger [business-to-business-to-customer] markets including Autopay and MoneyMe+ which are unlocking significant incremental growth pathways for the Group. The partnership with PEP is instrumental to securing the very large opportunity in front of us.

Pacific Equity Partners’ managing director, Jake Haines, also commented on the partnership:

We see MoneyMe as a leading platform within the consumer lending space with great people, technology and products and a relentless drive to provide excellent service and innovative solutions to its customers.

MoneyMe share price snapshot

Today’s gain has added to MoneyMe’s strong recent performance on the ASX.

Right now, the lender’s share price is 44% higher than it was at the start of 2021. It has also gained 38% since this time last year.

The post MoneyMe (ASX:MME) share price gains 3% on new funding agreement appeared first on The Motley Fool Australia.

More reading

• Why the MoneyMe (ASX:MME) share price is leaping 6% today
• Moneyme (ASX:MME) share price sinks despite record result

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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The Afterpay Ltd (ASX: APT) share price has started the week off on what some call the wrong foot. Afterpay shares have opened lower this monring, and are trading for $131.11 at the time of writing, down 0.76% for the day so far.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has started the week off on a pretty decent footing. So far this morning, the ASX 200 is up a healthy 0.73% to 7,396 points.

So why are Afterpay shares bucking the broader markets and losing steam?

Well, one possible expanation is the performance of ASX tech shares more broadly. The entire ASX tech space is in the red at the time of writing, with the S&P/ASX All Technology Index (ASX: XTX) currently down by 0.15%.

Other tech shares like Xero Limited (ASX: XRO), WiseTech Global Ltd (ASX: WTC) and Appen Ltd (ASX: APX) are also in the red today.

Afterpay share price gets Squared?

Another factor that might be in play with Afterpay today is the recent performance of the Square Inc (NYSE: SQ) share price. Why is this relevant? Well, as Afterpay investors would be well aware of, Square is the US payments company that looks set to acquire Afterpay under the scheme announed back in June.

Under this acquisition plan, Square is set to acquire Afterpay in an all-scrip deal. This will see Afterpay shareholders receive 0.375 shares of Square for every Afterpay share owned.

As such, the markets now value Afterpay shares at least partly based on what the Square share price is worth. On Friday’s trading session over in the US (Friday night, our time), the Square share price lost 1.58% and closed the session at a share price of US$262.50 a share.

That makes Square’s offer to acquire Afterpay worth roughy $135.22 a share. That’s down 1.6% or so from the ~$137.42 a share that the offer was worth after Thursday’s US trading session.

So perhaps it’s not much of a surprise that the Afterpay share price is dipping so far today.

At the current Afterpay share price, the company has a market capitalisation of $38 billion.

The post Why is the Afterpay (ASX:APT) share price falling today? appeared first on The Motley Fool Australia.

More reading

• What’s moving the Afterpay (ASX:APT) share price since the Square news?
• These ASX shares are surging on the back of key Aussie lifestyle trends
• ASX tech shares are leading the market’s gains on Thursday
• Why the Afterpay (ASX:APT) share price is charging 4.5% higher
• The Square share price jumped 4% overnight. What could this mean for Afterpay (ASX:APT) shares?

Motley Fool contributor Sebastian Bowen owns shares of Square. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Appen Ltd, Square, WiseTech Global, and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Appen Ltd, WiseTech Global, and 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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All the tailwinds that helped ASX shares the past couple of years are disappearing, so investors need to be careful which stocks they buy into.

That’s the opinion of Alphinity client portfolio manager Elfreda Jonker, who said we’ve now entered the part of the cycle known as a “stock pickers’ market”.

“Over the last 12 months, the Australian equity market has been supported by a strong cyclical earnings recovery, unprecedented fiscal support and an extraordinarily high level of liquidity in the global financial system,” she wrote on the Alphinity blog.

“These supporting factors are progressively being priced in, removed, or becoming more fragile.”

In such an environment, Jonker presented 3 ASX shares that her team has “high conviction” faith in:

A global health problem has ironically resulted in less hospitalisations

According to Jonker, private health insurer Medibank Private Ltd (ASX: MPL) has become “the best manager of claim costs in the industry through the use of its scale and data”.

Like most health insurers, it has benefitted from the COVID-19 pandemic resulting in lower rates of hospital treatments to pay out.

“The company has taken conservative provisions for COVID and is now giving back to customers via lower prices/free coverage days, cementing its recent brand improvement and return to customer number growth,” said Jonker.

“Medibank has big plans to grow its in-home care and become a more holistic health business, which we believe is likely underappreciated over [the] long term.”

She added that Medibank is “very well capitalised”.

“[Medibank] is likely to put some gearing into the business, freeing up equity for capital management or acquisitions.”

Medibank shares were trading at $3.59 on early Monday morning, which is more than 18% up for the year.

ASX share that benefits from both the pandemic and re-opening

Among retailers, the Alphinity team has high conviction for Super Retail Group Ltd (ASX: SUL).

Jonker reckons its brands like Supercheap Auto, BCF and Rebel Sport are both COVID beneficiaries and recovery winners.

“The company has managed its inventory well despite many supply chain challenges and is well placed for a reopening of the economy later in the year,” she said. 

“Cost management has also been good, benefiting somewhat from lower rent with many landlords under pressure.”

Super Retail’s capital position is such that it’s able to hand out a 7.4% dividend yield currently.

But according to Jonker, it’s still holding onto plenty of excess cash to re-invest into the business.

“Its recently released FY21 results were ahead of market expectations and it has subsequently enjoyed earnings upgrades for FY22 and FY23,” she said.

“We see scope for further upgrades over the course of the year as better trading conditions and a strong online strategy more than offset any reopening pressure.”

Super Retail shares were trading at $12.06 on Monday morning, which is up 9.8% for the year.

Good to have control of your own prices

There are 3 factors driving the good fortunes behind construction materials provider James Hardie Industries plc (ASX: JHX).

“The company has been benefiting from the current environment of low interest rates, strong home prices and consumer working pattern shifts – all of which are supportive of large home repair/remodel projects,” said Jonker.

“The company is uniquely positioned to capitalise on strong market conditions with new production capacity coming on at the same time competitors are capacity constrained.”

She liked that James Hardie has shifted to a “value-led” strategy, allowing it to increase prices for its products.

“In addition, it is launching new products that will increase its total addressable market,” said Jonker.

“Margins continue to surprise positively given both volume and pricing growth despite continued investment in future growth initiatives.”

The potential risk to James Hardie is a rise in US interest rates killing off the housing boom in that country.

James Hardie stocks were going for $52.92 on Monday morning, which is a tidy 37.2% gain for the year thus far.

The post 3 ASX shares that everyone’s underestimating right now appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• These ASX shares are surging on the back of key Aussie lifestyle trends
• Here’s why the Medibank (ASX:MPL) share price is up 12% in the last 3 months
• NIB (ASX:NHF) share price lower despite ACCC authorisation
• Medibank (ASX:MPL) share price slips as customers hit 3.7 million

Motley Fool contributor Tony Yoo 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 Super Retail Group Limited. The Motley Fool Australia owns shares of and has recommended Super Retail 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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Beach Energy Ltd (ASX: BPT)

According to a note out of Credit Suisse, its analysts have retained their outperform rating and lifted their price target slightly on this energy company’s shares to $1.57. The broker acknowledges that Beach Energy’s performance has been disappointing this year. However, it believes the pullback in its share price has created a buying opportunity for investors. Credit Suisse also appears optimistic that the company’s production will increase over the next 12 months. The Beach share price is trading at $1.21 today.

Healius Ltd (ASX: HLS)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this healthcare company’s shares to $5.55. The broker made the move on the belief that Healius will continue to benefit from elevated COVID-19 testing volumes for longer despite the global vaccine rollout. Macquarie also sees opportunities for the company’s margins to improve and boost its profits further. The Healius share price is fetching $5.00 on Monday.

Sandfire Resources Ltd (ASX: SFR)

Analysts at Morgan Stanley have retained their overweight rating and $7.95 price target on this copper miner’s shares. This follows news that the company is acquiring the Matsa mining operations in Spain. Morgan Stanley appears pleased with the plan and expects it to offset production reductions at the Degrussa operation. The Sandfire share price is trading at $5.46 on Monday morning.

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

More reading

• The Sandfire (ASX:SFR) share price drops 13% on entitlement offer completion
• Is this ASX 200 miner one of the best value shares to buy today
• These were the best performers on the ASX 200 last week
• Guess which sector this week’s top performing ASX 200 shares come from
• Sandfire Resources (ASX:SFR) share price frozen amid acquisition and cap raise

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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