Day: October 25, 2021

Leading brokers name 3 ASX shares to sell today

Business man marking Sell on board and underlining it

Yesterday I looked at three ASX shares brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three that have just been given sell ratings are listed below. Here’s why these brokers are bearish on these ASX shares:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

According to a note out of Citi, its analysts have retained their sell rating and $28.00 price target on this banking giant’s shares ahead of its full year results. The broker believes that ANZ will deliver a result a touch short of the market’s expectations in FY 2021 due to lower markets income. In light of this, it sees no reason to change its rating at this point. The ANZ share price is trading at $28.46 this afternoon.

Woolworths Group Ltd (ASX: WOW)

A note out of Credit Suisse reveals that its analysts have retained their underperform rating but lifted their price target on this retail giant’s shares slightly to $31.40. The broker has downgraded its earnings estimates for Woolworths’ key Australian Food business to reflect its belief that labour and supply chain costs are rising quicker than product prices. The Woolworths share price is trading notably higher than this price target at $40.55 on Tuesday.

Zip Co Ltd (ASX: Z1P)

Analysts at UBS have retained their sell rating and $5.40 price target on this buy now pay later (BNPL) provider’s shares. UBS notes that the Reserve Bank is planning to remove the no surcharge rule from the BNPL market. This would allow merchants to charge consumers more to cover the costs of paying by the BNPL payment method. The broker sees this as an incremental negative for Zip. The Zip share price is fetching $6.86 this afternoon.

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

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

Before you consider Zip, 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 Zip 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 ZIPCOLTD FPO. 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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Here’s why the Podium (ASX:POD) share price is up 5% on Tuesday

miner giving 'ok' sign in front of mine

The Podium Minerals Ltd (ASX: POD) share price is gaining ground on Tuesday, currently trading up around 5% higher at 31 cents each.

Podium Minerals’ shares are on the move as the company released a suite of price-sensitive updates to the market today.

Let’s get straight into analysing each one.

What was announced?

Podium released 4 price-sensitive announcements for the market to digest today. The first is in reference to a share purchase plan (SPP) the company is affording its shareholders.

Under the SPP, eligible shareholders are able to acquire up to $30,000 worth of Podium shares without paying any brokerage costs, commission or transaction fees.

The offer supports the company’s recently completed placement of $4.5 million to sophisticated investors at 29 cents per share.

Participants in the SPP will have the right to purchase Podium Minerals shares at 29 cents per share too, which represents a 6.5% discount to its current market price. It closes on 8 November.

The company hopes to raise up an additional $2 million via the SPP, which will be fed straight into its Parks Reef PGM project, in addition to beefing up working capital.

Regarding the Parks Reef project, Podium released another update concerning it as well today. The release notes that diamond drilling is set to commence at the site, to run tests greater than 500m below the surface.

An initial two 750m “deep diamond drill holes” will be dug to test the continuity of the mineralisation identified at the site.

Drilling will take around 4 to 6 weeks to complete, and will test the reef around 520m below the surface. Then, Podium intends to drill a third hole to “target the central sector”.

These depths Podium intends to drill to “is more than twice the depth of any previous drilling conducted at Parks Reef”.

It follows on from the recent drilling programs where Podium intersected high grade platinum and palladium zones, alongside traces of rhodium and iridium.

What else did Podium release?

Finally, Podium also released two investor presentations today. One of these covers the entire company and the full scope of its operations, capital structure, risks and goes into great detail on mining studies and drill results.

Whereas the other is a specific presentation to the “Canaccord Genuity South-West Connect ASX Showcase” scheduled on 27–28 October.

The latter appears to be a more consolidated version of the full presentation and contains several slides on the Parks Reef site and other strategic supply opportunities.

Investors appear to be piling in on the flurry of updates from the resource company’s camp today and have driven the Podium Minerals share price higher on a volume 90% of its 4-week average.

Podium Minerals share price snapshot

The Podium Minerals share price has gained 210% this year to date, however is down around 30% in the last month.

Yet, it has climbed 138.5% in the last 12 months, well ahead of the S&P/ASX 200 index (ASX: XJO)’s return of around 21% in the same time.

The post Here’s why the Podium (ASX:POD) share price is up 5% on Tuesday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Podium Minerals right now?

Before you consider Podium Minerals, 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 Podium Minerals 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

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 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 scandal? Facebook (NASDAQ:FB) just reported 35% revenue growth

a woman holds a facebook like thumbs up sign high above her head. She has a very happy smile on her face.

Not for the first time, Facebook Inc (NASDAQ: FB) has been facing down more than one scandal in recent weeks. Earlier this month, former Facebook employee Frances Haugen accused the company of putting profits over safety and stating that she believes Facebook’s products “harm children, stoke division and weaken our democracy”.

Just hours earlier, the company had to deal with an hours-long outage across its platforms. Needless to say, October hasn’t been a great month for this US tech giant so far. Since 1 October, Facebook shares have fallen around 4.5%.

But investors in this social media giant might find some solace in the company’s latest financial report. Facebook has just reported its earnings for the quarter ending 30 September (Q3).

For the 3 months ending 30 September, Facebook announced revenues of US$29.01 billion. That was up 35% year over year on the prior corresponding quarter’s US$21.47 billion. Of that US$29.01 billion, US$28.28 billion came from advertising revenue (up 33% year over year) and US$734 million from ‘Other’ (up 195%).

However, total costs and expenses also rose to US$18.59 billion. That was up 38% from the US$13.43 billion in the prior corresponding quarter.

Facebook reports 17% growth in net income

Even so, Facebook managed to report US$10.42 billion in income from operations, up 30% year on year. Net income also rose 17% from US$7.85 billion to US$9.19 billion.

That led the company to report diluted earnings per share (EPS) of US$3.22 for the quarter, up 19% from US$2.71 year on year.

Meanwhile, active users were up for the company across the board. For the Facebook app over the month of September, daily active users rose by 6% year on year to 1.93 billion. Monthly active users were 2.91 billion, also a 6% rise.

For family daily active users (family includes Facebook as well as the company’s other apps like Instagram and Whatsapp), the company reported 1.93 billion, up 11% year on year. Family monthly active users were 3.58 billion, an increase of 12%.

Facebook also announced a fresh US$50 billion injection for its share buyback program. We looked at this in more depth earlier today.

Turning to guidance, Facebook told investors that it is expecting to report “total revenue to be in a range of $31.5 billion to $34 billion” for the upcoming quarter ending 31 December 2021. The company noted that “our outlook reflects the significant uncertainty we face in the fourth quarter in light of continued headwinds from Apple‘s iOS 14 changes, and macroeconomic and COVID-related factors”.

Facebook last closed at a share price of US$328.69, up 1.26% for the day. That gives this tech giant a market capitalisation of US$926.72 billion. However, the stock climbed by another 1.79% in after-hours trading to US$334.57 a share, perhaps reflecting the impact of this earnings report.

The post What scandal? Facebook (NASDAQ:FB) just reported 35% revenue growth appeared first on The Motley Fool Australia.

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

Before you consider Facebook, 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 Facebook 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

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Facebook. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Facebook. The Motley Fool Australia has recommended Facebook. 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 Nanosonics (ASX:NAN) share price is soaring 9% on Tuesday

Shot of a group of scientists cheering while working in a lab.

The Nanosonics Ltd (ASX: NAN) share price is roaring upwards today despite no announcements from the company.

In afternoon trade, shares in the infection prevention company are up 8.63% to $6.04 apiece. Consequently, the Nanosonics share price is 26.8% away from its 52-week high of $8.25.

Could Nanosonics be a buy?

Although there is a lack of news regarding Nanosonics on Tuesday, a broker note was recently published on the healthcare company.

According to the analysts at Morgans, the Nanosonics share price could have more upside awaiting shareholders. Ostensibly, the team of analysts has placed an add rating on the Trophon manufacturer, while simultaneously cutting its price target to $6.97.

However, even with the reduced price target, this would suggest a further 15.4% upside to the Nanosonics share price. Perhaps investors are still absorbing this proposition on Tuesday, as the shares are bid higher.

Another viewpoint, the market might be paying more attention to shares primed for the nation’s reopening after months of COVID-19 restrictions. Healthcare shares with exposure to elective surgery have struggled throughout the pandemic. On Wednesday last week, New South Wales Health announced the return of non-urgent elective surgery across Greater Sydney.

At the time, NSW health deputy secretary Wayne Jones stated: “Thanks to the extraordinarily high vaccination rates across the state and declining community transmission of COVID-19, patients can now have their non-urgent surgery.”

Investors might be speculating over the potential for an increase in Nanosonics Trophon consumables following the return of elective surgeries.

Nanosonics share price snapshot

Nanosonics shares have been range-bound since late 2019. During this time, the company’s shares have traded between $4.65 and approximately $8.00. As a result, Nanosonics’ volatility is above the broader market average.

In addition, Nanosonics has returned 11.4% over the past year. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) has outperformed the company, delivering a return of 21%.

In terms of valuation, the company currently trades on a price-to-earnings (P/E) ratio of 208 times based on the current Nanosonics share price.

The post The Nanosonics (ASX:NAN) share price is soaring 9% on Tuesday appeared first on The Motley Fool Australia.

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

Before you consider Nanosonics, 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 Nanosonics 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 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 Nanosonics Limited. The Motley Fool Australia owns shares of and has recommended Nanosonics 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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