Day: November 1, 2021

Own biotech shares? These were the best performers during October

Photo of a group of Imagion scientists cheering while working in a lab.

ASX biotech shares posted a month of solid gains in October, outpacing the wider market as a whole.

For instance, the S&P/ASX 300 Pharmaceuticals & Biotechnology Index (ASPBKD) climbed around 6% after a sharp decline to start the month, indicating strengths in the broad sector.

Within this group lies a substratum of winners that we cover here in greater detail.

Here are three of the top performing ASX biotech shares for the month of October.

Telix Pharmaceuticals Ltd (ASX: TLX)

Oncology company Telix Pharmaceuticals climbed 15% across the month of September, surpassing many of its ASX biotech colleagues.

Telix shares gained momentum after the company presented peer-reviewed results from a Phase I/II study on its TLX101 drug candidate at the Congress of Neurological Surgeons Annual Meeting in the US.

According to Telix, its TLX101 compound is an “investigational therapeutic radiopharmaceutical being developed to treat glioblastoma (brain cancer)”.

The data was “delivered as a late breaking oral presentation” at the meeting, and readouts confirmed the study met its primary objective. That was to demonstrate safety and tolerability of the TLX101 candidate.

Aside from this, Telix also released its quarterly activities report for the three months ended 30 September 2021 last month.

In it, Telix showed it had enough cash to fund the commercial launch of its Illuccix label and to complete another phase 3 study known as ZIRCON, without having to raise more capital.

Telix shares gained 94 cents in the last weeks of October after these updates.

CSL Limited (ASX: CSL)

After a choppy year to date, shares in global biopharmaceutical and biotechnology giant CSL climbed over 6% or $17.71 per share across the month of October.

Shareholders weren’t immune to volatility however – the CSL share price came off a 6-month high of $312.99 to start the month and sunk to a low of $286.19, before regaining steam once again.

Whilst there was no price-sensitive information out of CSL’s camp in October, the opinion of some brokers appear to support its share price gains last month.

For instance, analysts at leading investment banking firm Morgans are bullish on CSL shares.

Morgans acknowledges that whilst FY22 will continue to present headwinds in CSL’s plasma collection, beyond this, the outlook appears positive. It also likes the company as a ‘core’ portfolio holding.

It has a $325 price target on CSL’s share price, implying an upside potential of almost 6% from the time of writing.

Not all brokers agree through – Goldman Sachs and JP Morgan recently retained their neutral/hold ratings on CSL shares respectively in recent updates.

Creso Pharma Ltd (ASX: CPH)

A series of market updates enticed investors to pile into cannabis-based biotech company Creso Pharma last month, sending its share price northwards again after a disappointing end to September.

After trading flat most of the month, shares in the ASX biotech company gained over 18% in the final days of October, bouncing off a low of 10 cents just a few weeks prior.

Creso reported it had purchased Canadian life sciences company ImpACTIVE on 25 October, on a valuation of $217,000, thereby expanding its footprint in North America.

A day later, the company released a ‘bonus issue prospectus’ relating to a series of bonus options to its shareholders.

The options are to “reward shareholders for supporting the company” as it were, however, are also a potential source of funding if exercised in the future.

Creso will receive 25 cents for every option exercised, which could mean they receive up to $99.9 million in this scenario.

In addition, the options can be bought and sold on any ASX exchange that allows the trading of derivative products.

The company also released its quarterly actives report to finish the month, generating a 92% year on year gain in revenue and saw growth across all its operating segments.

This sent Creso Pharma shares flying as we exited October, securing a tasty gain for investors.

These three ASX biotech shares were amongst the best performing names in October, although there were winners and losers across the board when zooming out across the sector.

The post Own biotech shares? These were the best performers during October 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 author Zach Bristow has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. 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.

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

Top broker names 2 of the best ASX share ideas for November

A businessman lights up the fifth star in a lineup, indicating positive share price for a top performer

If you’re looking for a few new additions to your portfolio in November, then look no further.

Analysts at Morgans have picked out a number of ASX shares that they class as their best ideas for the month.

Below are two top ASX shares that the broker rates highly this month. They are as follows:

BHP Group Ltd (ASX: BHP)

Morgans is a fan of this mining giant for a number of reasons. This includes its valuation, strong balance sheet, and dividend profile. It also sees BHP as a low risk option in the resources sector for investors.

It explained: “We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct COVID-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.”

Morgans currently has an add rating and $46.05 price target on BHP’s shares. This compares to the current BHP share price of $35.65.

ResMed Inc (ASX: RMD)

Another ASX share for investors to consider is ResMed. Morgans is a fan of this sleep treatment focused medical device company due partly to its positive long term outlook.

Morgans commented: “While we believe the next few quarters will likely be volatile, as COVID-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.”

Its analysts have an add rating and $40.80 price target on the company’s shares. This compares to the latest ResMed share price of $35.22.

The post Top broker names 2 of the best ASX share ideas for November appeared first on The Motley Fool Australia.

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

Before you consider BHP, 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 BHP 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 recommended ResMed. The Motley Fool Australia has recommended ResMed Inc. 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/3bAzbhb

Here’s why the Woolworths (ASX:WOW) share price is down 5% in a week

A sad little girl sits in a supermarket trolley, indicating a decline in share market price

After an initial pop this morning, the S&P/ASX 200 Index (ASX: XJO) is deep in the red so far this Tuesday, currently down 0.34% at 7,345 points. In stark contrast, the Woolworths Group Ltd (ASX: WOW) share price is enjoying some healthy gains today. Woolworths shares are currently up by 1.44% to $38.72 a share at the time of writing.

But zooming out a little, and the picture is far less cheerful. Woolworths shares are now down just over 5% from where they started last Tuesday’s trading session at. That’s a pretty steep fall for just one week. Especially for an ASX 200 blue-chip stalwart like Woolies.

So what’s going on with this grocery giant to cause it to have such a poor week?

We can probably lay most of the blame on Woolworths’ quarterly earnings update that the company released last Wednesday. For the 14 weeks ending 3 October, the company reported a 7.8% increase in sales year on year to $16.07 billion. That included $1.88 billion in e-commerce sales, a 53.5% jump over last year’s figures.

That all sounds positive. But what really seemed to have spooked investors and led to a drop in the Woolworths share price was management’s commentary:

Q1 F22 has arguably been the most challenging COVID quarter for our business, with the Delta variant causing major disruptions to our supply chain and stores, especially in NSW and Victoria…

While the outlook remains uncertain, and there is likely to be challenges in the weeks ahead, we are excited about helping our customers celebrate a much needed festive season in an inspirational, safe and enjoyable way.

After this update was released, the Woolworths share price fell roughly 2.5% and has yet to recover.

Could the Woolworths share price be a buy today?

With this significant pullback in the Woolworths share price, some investors might be wondering if it’s a good time to buy. Well, reception to this trading update was less than well-received by expert investors.

As my Fool colleague James covered last week, broker Credit Suisse wasn’t impressed with what Woolies had to say. It retained an ‘underperform’ rating on the company, with a 12-month share price target of $31.84. Credit Suisse simply thinks the company’s shares are overvalued at their current pricing. It also expects it to face some tightening profit margins.

At the current Woolworth share price, this company has a market capitalisation of $46.15 billion. It also has a price-to-earnings (P/E) ratio of 31.1 and a dividend yield of 2.8%.

The post Here’s why the Woolworths (ASX:WOW) share price is down 5% in a week appeared first on The Motley Fool Australia.

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

Before you consider Woolworths, 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 Woolworths 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 Sebastian Bowen 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.

from The Motley Fool Australia https://ift.tt/3CC2lrX

Why did the BHP (ASX:BHP) share price go backwards in October?

a man in a hard hat and checkered shirt holds paperwork in one hand as he holds his hands upwards in an enquiring manner as though asking a question or exasperated by uncertainty.

The BHP Group Ltd (ASX: BHP) share price has continued to decline over the past month followed by weak investor sentiment.

At the time of writing, the mining giant’s shares are further slipping 2.07% to $35.67. This means that the company’s shares have fallen more than 5% in the past week alone.

What happened to BHP shares in October?

Investors pushed the BHP share price lower last month following the company’s first-quarter trading update on 19 October.

BHP revealed a fall in production across most of its operations due to a variety of issues affecting each of its commodities. Its shares sunk 2.04% following the release after reaching a one-month high of $39.28 in the prior day.

On a positive note, the company stated that the proposed merger of its petroleum business with Woodside Petroleum Limited (ASX: WPL) is on track. However, this did little to appease investors who were largely concentrated on the results.

Despite the current slump, BHP stated that all production and unit cost guidance remains unchanged for the 2022 financial year.

The company is scheduled to hold its annual general meeting (AGM) on 11 November.

What do the brokers think?

A number of brokers weighed in on BHP’s shares after the release of its latest performance report.

Analysts at Macquarie cut its price target by 3.6% to $54.00 for the BHP share price. Credit Suisse had a more bearish tone, reducing its outlook by a sizeable 15% to $39.00. It’s worth noting that this is almost in line with the current share price.

Leading Australian investment firm Morgans had a different view, raising its rating by 1.9% to $46.05. It appears the broker is focused on BHP’s statement that FY22 guidance is stable for now.

BHP share price summary

Since the beginning of the year, it has been another disappointing result for BHP shares, falling by more than 15%. This is in stark contrast to when its shares were tracking more than 25% higher for the year-to-date period during August.

Based on today’s price, BHP presides a market capitalisation of roughly $105.7 billion with approximately 2.96 billion shares outstanding.

The post Why did the BHP (ASX:BHP) share price go backwards in October? appeared first on The Motley Fool Australia.

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

Before you consider BHP, 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 BHP 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 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.

from The Motley Fool Australia https://ift.tt/3CEbW1s