Day: October 30, 2021

2 leading ASX e-commerce shares that could be buys in November 2021

There are a few e-commerce ASX shares that are growing very quickly that may be worth considering in November 2021.

At the moment, some of these companies are investing heavily to achieve high rates of long-term growth. However, the underlying profitability could be quite high. Cutting out the large network of physical retail stores (and all the associated costs of running shops) could be really helpful.

That’s why these two ASX e-commerce ASX shares could be interesting ideas:

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is already a leading online retailer of furniture and homewares. But the company is nowhere near done, it wants to become the largest player in the whole industry, both online and offline.

It’s growing very quickly. In FY21, revenue rose 85% year on year to $326.3 million. In the period of 1 July 2021 to 27 August 2021, revenue had increased another 49%.

The business said that it’s experiencing four different tailwinds at the moment. There’s the ongoing adoption of online shopping due to structural and demographic shifts. Next, these trends are being accelerated because of COVID-19. There is the benefit of an increase in discretionary income due to travel restrictions. Finally, there has been strong housing market growth.

This e-commerce ASX share is focused on strengthening its customer proposition, built around having the biggest and best range of furniture and homewares, combined with a “great” customer service experience.

It’s investing heavily in marketing to win new customers and grow its brand awareness. But the 12-month marketing return was “healthy” at 2.3x. This is helping increase the value of each customer. In FY21, revenue per active customer rose 12% year on year due to customers repeat buying more often and spending more when they do.

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is another e-commerce ASX share that is growing very quickly. It says that it sells around 10,800 products from approximately 260 brands.

It’s now a business that offers an integrated content, marketing and retail platform.

Just like Temple & Webster, Adore Beauty is growing rapidly. In FY21, its revenue grew 48% to $179.3 million. Then, in the first quarter of FY22, revenue grew by another 25% to $63.8 million.

Its customer numbers continue to climb. Active customers increased by 24% to 874,000 in the FY22 first quarter and there was returning customer growth of 63% year on year. Management believe that returning customers provide a strong foundation for future growth. Those returning customers become more valuable each year as they spend on the platform, increasing both their basket size and order frequency over time.

There are a number of areas that Adore Beauty is working on including scaling its mobile app, building owned marketing channels and community, and expanding its loyalty program.

Adore Beauty says that it continues to benefit from the ongoing structural shift to online, which has been accelerated by the recent COVID-19 lockdowns.

The e-commerce ASX share wants to grow and cement its online market leadership, whilst also expanding its range of products. Connecting with potential consumers is a large part of the strategy, which is why the company was pleased that its Beauty IQ podcast surpassed three million downloads.

Another way that Adore Beauty plans to grow scale and profit margins is by launching a private label brand, which is on track to be launched in the third quarter of FY22.

The business believes it’s in a large and growing $11 billion market.

It’s currently rated as a buy by the broker UBS, with a price target of $6 with expected continuing growth in FY22.

The post 2 leading ASX e-commerce shares that could be buys in November 2021 appeared first on The Motley Fool Australia.

Should you invest $1,000 in Temple & Webster right now?

Before you consider Temple & Webster, 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 Temple & Webster 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. owns shares of and has recommended Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and Temple & Webster Group Ltd. 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 Bank of Queensland (ASX:BOQ) share price tumbled 5% in October

a man in a business suit slides down the handrails of a bank of steel escalators, clutching his documents and telephone.

The Bank of Queensland Limited (ASX: BOQ) share price fell around 5% in October 2021 in a month that the S&P/ASX 200 Index (ASX: XJO) was largely flat.

During the month, the regional bank released its FY21 result. Often, investors like to partly base their thoughts on a business on how it performed in the latest financial year.

Here are some of the highlights from BOQ’s FY21 report:

BOQ’s FY21 result

The regional bank reported that its statutory net profit after tax (NPAT) jumped 221% to $369 million. Cash earnings after tax also rose quickly, going up 83% to $412 million. In earnings per share (EPS) terms, it rose by 51% to 74.7 cents.

This profit result was driven by increased net interest income and a credit to the loan impairment expense of $21 million. However, this was partly offset by higher operating expenses. Excluding the ME Bank acquisition, total income rose 5% to $1.18 billion.

BOQ’s net interest margin (NIM) increased by 1 basis point to 1.92% including ME Bank and grew 4 basis points to 1.95% excluding ME Bank. The improvement was largely driven by lower funding costs and deposit mix, partially offset by market competition and the ongoing impact of a low interest rate environment.

The actual net interest income, excluding ME Bank, rose by 6% for the year.

Operating expenses rose due to higher business volumes and the building of its new digital bank and other technology projects.

The loan impairment expense improved thanks to a better economic outlook and improvements in data quality relating to collateral. Concerns about loan impairments seemingly had a major impact on the BOQ share price during the COVID-19 crash.

The bank said it has made progress to sustainable profitability and the result showed momentum with four consecutive halves of improving performance.

ME Bank was bought for $1.325 billion during the year. The aim is to create an alternative to the big banks. It’s expecting to add low double digits to cash EPS, including the synergies, in FY22.

BOQ said that ME Bank brings together strong complementary trusted brands and it broadly doubles the retail bank and provides geographic diversification.

Outlook for the BOQ share price

Firstly, the bank said that it’s cautiously optimistic that Australia remains well placed for economic recovery, characterised by house price rises and growth in consumer spending and business investment. It remains focused on sustainable profitable growth.

Whilst it is expecting lending volume growth, the NIM could decline by between 5 basis points to 7 basis points as competition continues and the low interest rate environment remains. Expenses are expected to grow by 3%, which will be offset by accelerated integration synergies.

It’s going to remain prudent with capital and provisioning. Management said that the business has a strong capital position and expects its CET1 ratio to remain above 9.5%.

In terms of broker opinions, Citi rates the BOQ share price as a buy, with a price target of $10.50. The broker believes that BOQ is priced at 12x FY22’s estimated earnings with a grossed-up dividend yield of 6.7%.

The post Here’s why the Bank of Queensland (ASX:BOQ) share price tumbled 5% in October appeared first on The Motley Fool Australia.

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

Before you consider BOQ, 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 BOQ 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 fantastic ASX shares that could be buys in November

A man with a yellow background makes an annoncement, indicating share price changes on the ASX

Are you interested in adding some more ASX shares to your portfolio?

Three ASX shares that could be worth considering next month are listed below. Here’s what you need to know about them:

Appen Ltd (ASX: APX)

The first ASX share to consider is Appen. This tech company has a million-plus team of crowd sourced experts preparing the data that goes into artificial intelligence (AI) and machine learning (ML) models. It does this for some of the biggest tech companies in the world such as Google and Facebook. Unfortunately, COVID-19 impacted demand materially, leading to a sharp slowdown in its growth. However, things appear to be improving. For example, Facebook has just announced plans to increase its AI and ML spending materially.

Citi remains positive on the company. It has a buy rating and $17.10 price target on its shares.

Aristocrat Leisure Limited (ASX: ALL)

Another ASX share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies. During the pandemic its poker machine business struggled because of casino closures, whereas its digital business flourished and delivered strong growth. Pleasingly, now casinos are open again, both businesses are pulling together, which appears to have positioned the company well for growth over the 2020s. As has the recently announced plan to acquire London-listed leading global online gambling software and content supplier, Playtech, for $5 billion.

Morgans was pleased with the acquisition. It currently has an add rating and $52.50 price target on the company’s shares.

Goodman Group (ASX: GMG)

A final ASX share to consider buying is Goodman Group. It is a leading integrated commercial and industrial property group that owns a high quality portfolio of global assets. Positively, many of Goodman’s properties have exposure to structural tailwinds such as ecommerce and the digital economy. As a result, they look likely to be in demand with customers for a long time to come. This should be supportive of strong rental income and distribution growth over the next decade.

Citi is also a fan of Goodman. The broker currently has a buy rating and $26.00 price target on its shares.

The post 3 fantastic ASX shares that could be buys in November appeared first on The Motley Fool Australia.

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

Before you consider Goodman, 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 Goodman 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 Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen Ltd. 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 a highly rated tech ETF for ASX investors in November

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

If you’re wanting to invest in the tech sector but aren’t sure which shares to buy, then you might want to consider exchange traded funds (ETFs).

There are a number of ETFs out there that allow investors to buy a slice of some of the world’s biggest and brightest tech companies.

One that could be worth considering is the BetaShares Asia Technology Tigers ETF (ASX: ASIA).

Why this tech ETF?

The the BetaShares Asia Technology Tigers ETF gives investors exposure to some of the largest tech companies in the Asian market.

Due to how technological adoption in Asia is surpassing the West, the companies included in this ETF could be well-placed for growth over the next decade. At present there are a total of 50 companies included in the fund. Among its largest holdings you’ll find Alibaba, Infosys, JD.com, Meituan Dianping, Pinduoduo, Samsung, and Tencent.

In respect to the latter, Tencent is a multinational technology conglomerate and one of the largest companies in the world. It is best known for its communication and social platforms, Weixin, WeChat and QQ. In August, Tencent reported a 23% increase in half year revenue to US$42.3 billion. Underpinning this growth was a total of 1.251 billion monthly active users across its Weixin and WeChat platforms and QQ’s 590.9 million monthly active users.

Another company in the fund is Meituan Dianping. It was founded in 2010 by Wang Xing as a copy of group buying company Groupon. Since then, it has shaken off its tag as the Groupon of China and now dwarfs it in size. During the June quarter, the company reported 628.4 million transacting users on its platform. They use its app to connect with local businesses for food deliveries, hotel bookings, movie tickets, and countless other services.

Concerns over a crackdown in the Chinese tech sector has dragged the ETF lower this year. While this is disappointing, it could be a buying opportunity for long term investors.

The post Here’s a highly rated tech ETF for ASX investors in November appeared first on The Motley Fool Australia.

Should you invest $1,000 in BetaShares Asia Technology Tigers ETF right now?

Before you consider BetaShares Asia Technology Tigers ETF, 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 BetaShares Asia Technology Tigers ETF 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. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3nJz4FF