Day: October 1, 2021

These were the best performing ASX bank shares in September

CBA share price money laundering asx bank shares represented by large buidling with the word 'bank' on it

September was a difficult month for the S&P/ASX 200 Index (ASX: XJO). The benchmark index lost a disappointing 2.6% of its value during the month to finish the period at 7,332.2 points.

One area of the market that was reasonably resilient was the banking sector. Here are a few highlights from the month:

Macquarie Group Ltd (ASX: MQG)

The Macquarie share price was the best performer among the major banks with an impressive 9.1% gain. The catalyst for this was the release of a trading update from the investment bank. According to the release, Macquarie expects its first half profits to be down slightly on the second half of FY 2021. This was significantly better than the market was expecting and led to Ord Minnett retaining its accumulate rating and lifting its price target to $190.00.

Commonwealth Bank of Australia (ASX: CBA)

The CBA share price was a solid performer in September, rising 4.2% over the 30 days. This was despite there being no news out of Australia’s largest bank. Though, with its shares pulling back since the middle of August, some investors may have been topping up their positions. Particularly given how Bell Potter has a buy rating and $118.00 price target on its shares.

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The ANZ share price beat the market decline with a modest 1.1% gain during the month. The only real announcement out of the bank last week was its ESG update. That update revealed how the banking giant is complying with the push towards a sustainable and diverse business model. ANZ highlighted that it has funded and facilitated $14 billion of sustainable finance.

Westpac Banking Corp (ASX: WBC)

The Westpac share price wasn’t far behind with a 0.7% gain in September. This was despite the bank revealing that its deal to sell its Pacific businesses to Kina Securities Limited (ASX: KSL) for up to $420 million was blocked by regulators. This ultimately led to Australia’s oldest bank pulling the plug on the deal.

The post These were the best performing ASX bank shares in September appeared first on The Motley Fool Australia.

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

Before you consider Westpac, 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 Westpac 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 James Mickleboro owns shares of Westpac Banking Corporation. 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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These were the best performing ASX lithium shares in September

asx share price increase represented by golden dollar sign rocketing out from white domes of lithium

The market may have tumbled lower in September, but that didn’t stop a number of shares in the lithium sector from charging higher.

Among the movers, a few really stood out. Here’s why these were the best performing lithium shares in September:

Ioneer Ltd (ASX: INR)

The Ioneer share price was the best performer among the lithium miners last month with a 54% gain. Some of this appears to have been driven by the announcement of an agreement to form a joint venture with Sibanye Stillwater to develop the flagship Rhyolite Ridge Lithium-Boron Project in Nevada, USA. According to the release, Sibanye-Stillwater will contribute US$490 million for a 50% interest in the joint venture. Ioneer will maintain a 50% interest and retain operatorship. The agreement also gives Sibanye-Stillwater an option to participate in 50% of the North Basin operation.

Liontown Resources Ltd (ASX: LTR)

The Liontown Resource share price was a strong performer last month with a 48% gain. There were a few catalysts for this gain. One was news that the emerging lithium producer is planning to separate its non-lithium assets in the coming weeks. This will allow the company to focus on its wholly-owned Kathleen Valley Lithium Project. Another positive supporting its shares was its addition to the ASX 300 index at the quarterly rebalance.

Novonix Ltd (ASX: NVX)

The Novonix share price wasn’t far behind with a 47% gain. Investors have been buying the battery technology company’s shares since it announced an agreement with Phillips 66 in August. That agreement saw the US energy giant acquire a 16% stake in Novonix. Phillips 66 expects the deal to support its development of an entirely domestic supply chain for the growing US electric vehicle (EV) market. Whereas Novonix revealed that the investment will provide it with the capital needed to support growth and ongoing R&D. This includes the scaling of its synthetic graphite production and the development of new technologies for higher-performance energy storage applications. Novonix was also added to the ASX 300 index.

AVZ Minerals Ltd (ASX: AVZ)

The AVZ share price was on form and surged 37% higher in September. A key driver of this gain was an announcement late in the month from the lithium developer. AVZ announced a transaction implementation agreement with Suzhou CATH Energy Technologies (CATH) that will see CATH pay US$240 million in cash for a 24% equity interest in a multi-faceted joint venture to develop the Manono Lithium and Tin Project. CATH will also contribute its pro rata portion of funding for the development of the project in the Democratic Republic of the Congo.

The post These were the best performing ASX lithium shares in September appeared first on The Motley Fool Australia.

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

Before you consider Novonix, 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 Novonix 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 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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The Woodside Petroleum (ASX:WPL) share price is a buy – broker

ASX oil share price buy represented by cash notes spilling out of oil pipe Suez ASX energy shares

The Woodside Petroleum Limited (ASX: WPL) share price is currently rated as a buy by one of the leading brokers.

That broker is UBS.

The price target on Woodside is $25.50. That suggests that the broker believes Woodside shares could rise more than 7% over the next 12 months, if the broker is right.

Expectations of a rising oil price are leading to the broker believing that Woodside can generate more profit.

Using the current estimates, UBS puts the Woodside share price at 16x FY21’s estimated earnings with a potential grossed-up dividend yield of 9.2%.

What is going on for Woodside Petroleum?

Woodside announced a game-changing move in the middle of August 2021.

It revealed that it was going to merge with the oil and gas business of BHP Group Ltd (ASX: BHP). This deal would create a global top 10 independent energy company by production.

Woodside will be issuing new shares to be distributed to BHP shareholders. The expanded Woodside would be owned 52% by existing Woodside shareholders and 48% by existing BHP shareholders.

This merger will create a business that has a “high margin oil portfolio, long life LNG assets and the financial resilience to help supply the energy needed for global growth and development over the energy transition.”

Woodside also broke down some of the reasons and benefits of the deal:

  • Greater scale and diversity of geographies, products and end markets through an attractive and long-life conventional portfolio.
  • Resilient, high margin operating cashflows to fund shareholder returns and business evolution to support the energy transition.
  • Strong growth profile with a plan to achieve targeted Scarborough final investment decision in the 2021 calendar year and capacity to phase the most competitive, high-return options within the portfolio.
  • Estimated synergies of more than US$400 million per annum from optimising corporate processes and systems, leveraging combined capabilities and improving capital efficiency on future growth projects and exploration.

This merger could have an important impact on the Woodside Petroleum share price if/when it goes ahead.

HY21 result

Woodside has a financial year that lines up with the calendar year. So, in August it reported its half-year result.

That result showed that it recorded a half-year net profit after tax (NPAT) of US$317 million. Underlying net profit after tax was US$354 million, up 17% on HY20. Operating revenue increased 31% year on year to US$2.5 billion thinks to higher prices, with sales volume increasing 6% to 53.9 million barrels of oil equivalent for the half.

It also generated $1.32 billion of operating cashflow and free cashflow of $311 million.

Based on that result, the directors decided to declare an interim dividend of US$0.30 per share, which was a payout of approximately 80% of underlying net profit after tax.

Longer-term valuation on the Woodside Petroleum share price

UBS thinks that Woodside shares are valued at 14x FY22’s estimated earnings, with a projected forward grossed-up dividend yield of 12.5%.

The post The Woodside Petroleum (ASX:WPL) share price is a buy – broker appeared first on The Motley Fool Australia.

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

Before you consider Woodside, 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 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 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 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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3 rapidly growing ASX shares to buy in October

Monadelphous share price rio tinto A small rocket take off from a laptop, indicating a share price surge

The Australian share market is home to a number of companies growing at a rapid rate.

Three that could be well-placed to grow strongly over the 2020s are listed below. Here’s what you need to know about these growing shares:

Bigtincan Holdings Ltd (ASX: BTH)

The first growth share to look at is Bigtincan. It is a leading sales enablement platform provider that has been growing strongly in recent years. For example, in FY 2021, the company reported a 48% increase in annualised recurring revenue (ARR) to $53.1 million. Positively, even stronger growth is expected in FY 2022. This is thanks partly to its acquisition of US-based Brainshark. It is an industry-recognised and multi-awarded leader in its field of sales coaching, learning and readiness. Management expects combined ARR of $119 million in FY 2022, which will be up 124% year on year.

Morgan Stanley is very positive on the company. It currently has an overweight rating and lofty $2.10 price target on its shares.

Hipages Group Holdings Ltd (ASX: HPG)

Another ASX growth share to look at is Hipages. It is a leading Australian-based online platform and software as a service provider connecting consumers with trusted tradies. It currently boasts over 34,000 tradies using the platform and is generating significant leads for them. For example, in FY 2021, the company reported a 12% increase in job volumes to 1.53 million. This helped underpin a 22% increase in full year revenue to $55.8 million. This is well short of the total addressable market (TAM) of the tradie ecosystem, which is estimated to be $110 billion across the residential and commercial sectors.

Goldman Sachs currently has a buy rating and $4.35 price target on its shares.

IDP Education Ltd (ASX: IEL)

A final ASX growth share to look at is IDP Education. It is a provider of international student placement services and English language testing services. While COVID-19 was a big blow for the company, it is expected to come out of the crisis with a much stronger market position. Especially following its key acquisition in the lucrative India market. As a result, analysts are tipping the company to grow at a very strong rate over the coming years.

UBS is positive on IDP Education and has a buy rating and $36.40 price target on its shares.

The post 3 rapidly growing ASX shares to buy in October appeared first on The Motley Fool Australia.

Should you invest $1,000 in IDP Education right now?

Before you consider IDP Education, 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 IDP Education 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 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 BIGTINCAN FPO, Hipages Group Holdings Ltd., and Idp Education Pty Ltd. The Motley Fool Australia owns shares of and has recommended BIGTINCAN 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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