Day: November 26, 2021

Analysts name 2 fantastic ASX 200 shares to buy

Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices

The S&P/ASX 200 Index (ASX: XJO) is home to a large number of quality companies with the potential to generate strong returns for investors in the future.

Two that analysts are particularly positive on are listed below. Here’s why they are tipping them as buys right now:

Breville Group Ltd (ASX: BRG)

The first ASX 200 share to look at is Breville. is one of the world’s leading appliance manufacturers. As well as the eponymous Breville brand, it also has the Sage, Kambrook, and Baratza brands.

Breville has been growing at a consistently solid rate for the last decade and looks well-placed to continue this trend over the next decade. This is thanks to the popularity of its brands, its international expansion, acquisitions, favourable consumer trends, and its continued investment in R&D.

Macquarie is very positive on the company’s future and expects further strong growth in the coming years. Last week its analysts retained their outperform rating and $34.37 price target on the company’s shares. The broker notes that rival DeLonghi and one of Breville’s distributors in the US recently reported strong results. It feels this bodes well for Breville’s performance.

ResMed Inc. (ASX: RMD)

Another ASX 200 share that could be a top option is ResMed. It is a medical device company with a focus on the sleep treatment market.

Thanks to its industry-leading products, wide distribution network, and successful acquisitions, ResMed has been growing at a very strong rate over the last few years.

The good news is that thanks to its significant market opportunity, the growing prevalence of sleep disorders, and new product launches, it has been tipped to continue doing so for the foreseeable future. In addition, ResMed’s near term performance is being boosted by a major product recall from rival Philips.

Morgans is a fan of ResMed. Its analysts currently have an add rating and $40.80 price target on its shares. The broker believes ResMed is well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

The post Analysts name 2 fantastic ASX 200 shares to buy 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

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 recommended ResMed Inc. 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 Electro Optic (ASX: EOS) share price is having a shocker of a month. Is it now a buy?

Man presses green buy button and red sell button on a graph.

The Electro Optic Systems Holding Ltd (ASX: EOS) share price has tumbled 26% over the last 30 days. Does that make the stock a buy?

Motley Fool Australia analyst Andrew Legget spoke with our chief investment officer Scott Phillips earlier this month to discuss whether the tech company is ripe for investors’ picking.

Interested readers can find their conversation in full here, on The Motley Fool Australia’s YouTube channel. Don’t forget, we post a new ‘Stock of the Week‘ video every Wednesday.

Right now, the Electro Optic share price is $2.51.

Here’s a breakdown of what Legget thinks of Electro Optic shares.

But first, what does Electro Optic do?

Electro Optic is a technology company working within the aerospace market.

Most of the company’s revenue comes from its defence division where it produces remotely controlled weapon systems, ancillary products, fire control systems, and sensor units.

It also has a communication department creating terrestrial and space communications technologies.

The company is also developing SpaceLink – a satellite relay solution.

Electro Optic is also working on other exciting up-and-coming technology within its areas of expertise.

The risks surrounding Electro Optic shares

There are some downsides to Electro Optic shares.

Firstly, as Legget notes, there will always be a level of obscurity surrounding its business. Perhaps understandably, many of its defence contracts include classified information and, therefore, investors must trust the company’s management team.

Additionally, due to geopolitical tensions, Electro Optic will likely be hemmed in to working with only a handful of countries.

Further, as Electro Optic has aligned itself with the United States, Australia, Canada, the United Kingdom, and New Zealand, Legget says it will largely be at the whim of “the big dog in that fight” – the United States.

Together with that sentiment, a drop in governments’ defence spending could prove dire for Electro Optic’s revenue streams.

Finally, the company’s fulfilment of orders was delayed by COVID-19. Thus, a backlog of orders has been hindering its short-term performance. Legget commented:

I don’t think [the backlog is] going to be a long-term issue but, again, it just shows when you’re dealing with a concentrated customer base, when something goes wrong, even if it’s not your fault, it’s going to impact your results.

Is it a buy?

Still, Legget believes Electro Optic shares will be market beaters in the long term.

He says he likes how the company found niches that allowed it a jump start on other companies working in the defence sector.

Electro Optic has also built strong relationships with weapons manufacturers. As a result, it can make sure its products work with other industry offerings.

The company has also grown significantly over the past few years. Legget noted that in 2015, it was generating about $30 million in revenue. But, come 2020, it brought in $180 million.

Electro Optic also currently has an order backlog worth around $397 million. Legget went further to say:

[Electro Optic] do this thing where they risk weight all the potential opportunities based on their likelihood of winning the contract… that risk-weighted figure of potential pipeline in the future, that adds up to $3.1 billion at the moment. So, this is showing that there’s a huge potential market out there which, if it can keep operating as it has, could mean that this company still has a lot of growth ahead of it…

[Electro Optic] is, I think, one of the most innovative businesses on the ASX. It’s operating in a market where there’s a lot of high barriers to entry and it already has an entrenched place in that market. Now, it’s also targeting some really exciting opportunities in the year ahead which, if it can continue executing like it has in the past, means that [the opportunities] should, hopefully, become very lucrative businesses in their own right, and if they do, then I think it’s worth significantly more than what it’s worth right now.

The opinions expressed in this article were as at November 2021 and may change over time.

The post The Electro Optic (ASX: EOS) share price is having a shocker of a month. Is it now a buy? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Electro Optic right now?

Before you consider Electro Optic, 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 Electro Optic 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 Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Electro Optic Systems Holdings Limited. The Motley Fool Australia owns shares of and has recommended Electro Optic Systems Holdings 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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Here are the top 10 ASX shares today

Top 10 ASX shares today

Today, the S&P/ASX 200 Index (ASX: XJO) decided to end the week in a destructive fashion. At the end of the session, the benchmark index had tumbled 1.73% to 7,279.3 points.

It was a dismal day across the board for ASX shares today. Not a single sector could manage a positive performance. Though the pain was felt most deeply by shares in the energy sector, with a few of the biggest oil and gas companies all falling ~5%.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Today, the list is small to pull from. Only 17 companies out of the 200 in the index moved higher. Without further ado, here are the ten stocks that pulled through:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Zimplats Holdings Ltd (ASX: ZIM) was the biggest gainer today. Shares in the platinum group metals miner gained 3.50% today. This was despite there being no new announcements from the company today. Find out more about Zimplats here.

The next biggest gaining ASX share today was Evolution Mining Ltd (ASX: EVN). The gold mining company climbed 1.72%% to $4.13 on the back of rising gold prices. Uncover the latest Evolution Mining details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company Share price Price change
Zimplats Holdings Ltd (ASX: ZIM) $22.19 3.50%
Evolution Mining Ltd (ASX: EVN) $4.13 1.72%
Home Consortium (ASX: HMC) $7.66 1.06%
Newcrest Mining Ltd (ASX: NCM) $24.31 1.00%
Chalice Mining Ltd (ASX: CHN) $9.495 0.69%
Cromwell Property Group (ASX: CMW) $0.87 0.58%
Latitude Group Holdings Ltd (ASX: LFS) $2.03 0.50%
Ausnet Services Ltd (ASX: AST) $2.55 0.39%
Magellan Global Fund (ASX: MGOC) $2.84 0.35%
Sonic Healthcare Ltd (ASX: SHL) $41.64 0.29%
Data as at 4:00pm AEDT

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today 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

Motley Fool contributor Mitchell Lawler owns shares of Sonic Healthcare 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 has recommended Sonic Healthcare 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 Jumbo Interactive (ASX:JIN) share price is still almost 40% lower than its all-time high. Is it a buy?

jumbo share price

The Jumbo Interactive Ltd (ASX: JIN) share price has been gradually ascending throughout 2021.

However, the online lottery operator is still nearly 40% below its all-time high. This milestone was set back in October 2019 when shares reached $27 apiece. Soon after this, a reversal in the company’s share price saw it plummet to $8.35 in the space of 5 months.

Now, having reclaimed nearly half of its fall, is the Jumbo Interactive share price a buy?

What’s to like about the Jumbo Interactive share price?

While the Jumbo share price might be lower than where it was in 2019, the lottery operator’s revenue certainly isn’t. For the year ending 30 June 2019, the company reported revenue of $65.2 million. Two years on and Jumbo has grown that amount to $83.3 million.

This amount could be set to increase with one fund manager expecting a change to the Oz Lottery to result in bigger jackpots. As Arden Jennings from Ausbil Investment Management points out, Jumbo holds a leveraged exposure to bigger jackpots.

Furthermore, the company’s efforts to expand internationally in recent years have placed it into the UK and Canadian lottery markets. Jennings is eager to see Jumbo dip its toes into the United States market in the next year or two with a US state lottery acquisition. At the end of June, the company held $63.1 million in cash and cash equivalents on its books.

Jennings is not the only one finding the ASX lottery provider an appealing proposition at the moment. In addition, the team behind Wavestone Capital has picked Jumbo as its entry into the “The Golden Bull” stock picking competition for 2022.

The Sydney-based fund manager likes the potential in the Jumbo Interactive share price now that it has resigned its licensing. From here, the investing team thinks the company will be able to retain its newly acquired customers and beat earnings expectations.

Shares in the company have rewarded investors, returning 22% so far this year.

The post The Jumbo Interactive (ASX:JIN) share price is still almost 40% lower than its all-time high. Is it a buy? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Jumbo Interactive right now?

Before you consider Jumbo Interactive, 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 Jumbo Interactive 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 owns shares of Jumbo Interactive Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited. 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/3rbIwVQ