It certainly has been a great 12 months for the Telstra Corporation Ltd (ASX: TLS) share price.

Since this time last year, the telco giant’s shares have risen by a sizeable 38%.

This is more than triple the return of the ASX 200 over the same period.

Can the Telstra share price go even higher?

One leading broker that is positive on the Telstra share price is Morgans. It currently has an add rating and $4.55 price target on the telco giant’s shares.

Based on the current Telstra share price, this implies potential upside of 9.5% for its shares over the next 12 months.

And with the broker forecasting a 16 cents per share fully franked in FY 2022 (the equivalent of a 3.85% yield), the total return on offer stretches to almost 12.5%.

Four reasons to buy shares

Morgans has named four reasons why it is positive on the company. This includes its valuation, its risk management, and favourable outlook.

The broker explained: “Industry dynamics have turned positive (NBN and mobile prices are increasing after 5 years of decline; TLS’s targets imply they continue to rise). The SOTP for TLS is worth more than the current share price (and steps to release this value are underway; albeit timing is unclear). While PNG [the Digicel acquisition] is not without risk, this deal shows management’s ability to sensibly manage risk, and it could create further upside, all going to plan. Underlying earnings returned to growth in 2H21 and should continue growing out to FY25.”

Overall, while the Telstra share price has smashed the market over the last 12 months, Morgans appears to believe it can do it all again in 2022. This could make the telco giant a share to buy this year.

The post 4 reasons the Telstra (ASX:TLS) share price could be great value appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares to buy this month: experts
• Here are the 3 most heavily traded ASX 200 shares this Thursday
• These 3 ASX 200 shares are topping the volume charts on Wednesday
• The Telstra (ASX:TLS) share price has been rising, so why is the dividend shrinking?
• 2 quality ASX 200 dividend shares with attractive fully franked yields

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 and has recommended Telstra Corporation 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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One investment option that is growing in popularity with investors is exchange traded funds (ETFs). And it certainly isn’t hard to see why they are so popular.

As well as being an easy way to invest your hard-earned money, they provide you with opportunities that were unattainable a decade ago.

Examples of this are the two ETFs listed below which are highly rated right now. Here’s what you need to know about these top ETFs:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first ETF to look at is the BetaShares Global Cybersecurity ETF. With the world shifting online, cyber security has become very important. In light of this, demand for cyber security services continues to increase and shows no sign of slowing. Especially given some high profile cyber attacks in 2021.

This bodes well for the companies included in the BetaShares Global Cybersecurity ETF. These include many of the leading players in the global cybersecurity sector such as Accenture, Cisco, Cloudflare, Crowdstrike, Okta, and Palo Alto Networks.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A second ETF for investors to consider is the VanEck Vectors Morningstar Wide Moat ETF. This ETF gives investors exposure to a diversified portfolio of fairly valued companies with sustainable competitive advantages.

It is these competitive advantage, or moats, that legendary investor Warren Buffett looks for when he picks his investments. And given the success he has had over several decades, it’s hard to argue against this investment style.

At present, there are around 50 US based stocks included in the fund. This includes high quality companies such as Amazon, Bank of America, Warren Buffett’s Berkshire Hathaway, Intel, McDonalds, Microsoft, Philip Morris, and Yum Brands.

The post 2 ETFs for ASX investors to check out this month appeared first on The Motley Fool Australia.

More reading

• 2 top ETFs that could be buys in January 2022
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• 3 high quality ETFs for ASX investors in January
• Here are 2 fantastic ETFs for ASX investors in 2022

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 and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. 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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ASX growth shares are businesses that are growing quickly and expecting to achieve even more in the next few years.

Not every business is growing at a fast pace. Plenty of companies that are growing quickly are not rated as buys by experts.

But these stocks are ones that are growing rapidly and rated as buys at the moment:

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting is the leading Australian retailer of baby and toddler products including prams, toys, clothes and so on.

FY21 saw a lot of growth. Total sales rose 15.6% to $468.4 million, with online sales rising 54.2% to $90.8 million. Pro forma earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 29.2% to $43.5 million, with an increase of the EBITDA margin by 97 basis points to 9.3%. Pro forma net profit after tax grew 34.8% to $26 million.

Baby Bunting continues to work on a number of areas including online sales growth, gross profit margin improvement, new stores and expansion into New Zealand.

In FY22 to 3 October 2021, the ASX growth share saw its gross profit margin improve another 120 basis points to 38.7%. It’s expecting to open between six to eight stores in Australia in FY22 as well as two in New Zealand towards the end of the second half of FY22.

It is currently rated as a buy by the broker Macquarie Group Ltd (ASX: MQG) which noted the company’s ongoing growing strength of the business with increasing profitability, partly due to the increasing percentage of sales that are exclusive to the ASX growth share or are private label brands.

Based on Macquarie’s numbers, the Baby Bunting share price is valued at 22x FY23’s estimated earnings.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle Investment Management is a business that partners with affiliate investment businesses that can demonstrate growth potential and whose management teams have strong track records.

It has a number of investments including Coolabah, Firetrail, Hyperion, Langdon, Plato, Solaris and Spheria.

In FY21, it experienced its net profit more than doubling, with an increase of 108% to $67 million. Pinnacle’s share of affiliate net profit was $66.4 million, an increase of 75%. This was partly driven by funds under management (FUM) growth of 52% over the year to $89.4 billion.

Pinnacle continues to expand its portfolio to diversify and grow its portfolio and earnings. For example, it recently announced that it is going to buy a 25% stake of private equity group Five V Capital.

The ASX growth share has also partnered with Greg Dean, former principal manager at Cambridge Global Asset Management, to launch its first North American affiliate which will be based in Toronto (in Canada). This will have global and Canadian small cap equities strategies.

Pinnacle has previously said that the opportunity for further growth in funds under management is “significant”.

This week, Pinnacle also announced that for the six months ended 31 December 2021, its net share of crystallised performance fees from four affiliates’ is “in the order of $6.2 million”. In the second half of FY22, all 18 of its affiliates’ strategies will have the potential to crystalize performance fees.

Pinnacle is currently rated as a buy by Ord Minnett, with a price target of $17. At the current Pinnacle share price, it is valued at 28x FY23’s estimated earnings.

The post 2 ASX growth shares to buy this month: experts appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares named as buys
• 2 very compelling ASX shares for 2022
• Brokers rate these ASX dividend shares as buys
• 2 ASX shares rated as strong buys by brokers

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 and has recommended PINNACLE FPO. The Motley Fool Australia owns and has recommended PINNACLE FPO. The Motley Fool Australia has recommended Baby Bunting and 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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If you’re an income investor in search of dividend shares to buy, then you may want to look at the two listed below.

Both are being recommended as buys by the team at Morgans. Here’s what they are saying about these ASX 200 dividend shares:

QBE Insurance Group Ltd (ASX: QBE)

Morgans believes this insurance giant’s shares are in the buy zone at the current level. This is due to them trading on very attractive multiples at a time when QBE’s outlook is improving.

It said: “We see QBE as likely having positive underlying momentum into next year. QBE has been putting through top-line rate increases of around 9%, which should assist margin expansion into FY22. With QBE’s balance sheet recently reset, pricing tailwinds evident and the stock relatively inexpensive trading on ~12.8x FY22F PE [now ~14x].”

Morgans expects QBE to pay a 64.8 cents per share dividend in FY 2022. Based on the current QBE share price of $12.19, this will mean a yield of 5.3%. The broker has an add rating and $13.70 price target on its shares.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that Morgans likes is Westpac. It believes the banking giant’s shares are cheap at the current level and expects them to provide a generous yield for investors.

Morgans commented: “WBC shares have been sold off heavily following the FY21 result announcement, such that out of the major banks, WBC is now trading on the lowest FY22F P/NTA multiple, the lowest FY22F P/E multiple and the highest FY22F dividend yield. Such multiples or yields could only be justified if WBC is a value trap, which we think it is not.”

The broker expects fully franked dividends per share of $1.23 in FY 2022 and then $1.62 in FY 2023. Based on the current Westpac share price of $21.75, this will mean yields of 5.7% and 7.45%, respectively. Morgans has an add rating and $29.50 price target on the bank’s shares.

The post Top broker names 2 ASX 200 dividend shares to buy appeared first on The Motley Fool Australia.

More reading

• Westpac’s (ASX:WBC) $400m superannuation sale could be nearing the pointy end
• Here’s why CBA (ASX:CBA) shares have the lowest big four bank dividend right now
• Does the prospect of higher rates make ASX 200 bank shares more attractive?
• Here’s why the QBE (ASX:QBE) share price surged 30% in 2021
• Own Westpac (ASX:WBC) shares? Top broker says ‘there is still a lot of work to be done’

Motley Fool contributor James Mickleboro owns 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 has recommended Westpac Banking Corporation. 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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