With growth shares struggling in 2022, readers may be looking for value options instead.

With that in mind, listed below are two top ASX shares which could be candidates for the value-focused investor. They are as follows:

Accent Group Ltd (ASX: AX1)

This footwear focused retailer’s shares could be a great option for value investors. Especially with the Accent share price trading 27% below its 52-week high. This weakness has been driven by concerns over the company’s performance in FY 2022 due to the impact of lockdowns and COVID on its operations.

According to the team at Bell Potter, its analysts have a buy rating and $3.05 price target on the company’s shares. This compares favourably to the latest Accent share price of $2.26.

As for its valuation, the broker is expecting the aforementioned headwinds to have a big impact on Accent’s earnings in FY 2022 before an even bigger rebound in FY 2023. In light of this, it estimates that the company’s shares are changing hands for 21x FY 2022 earnings but just 13.5x FY 2023 earnings. Another positive is Bell Potter’s expectation for a 4% dividend yield this year and then a 6% yield next year.

South32 Ltd (ASX: S32)

Another value share for investors to consider is this mining giant. Although the South32 share price has charged 58% higher over the last 12 months, analysts at Goldman Sachs believe it is still great value. As a result, it has put a conviction buy rating and $4.60 price target on the company’s shares.

Goldman notes that South32’s shares are trading at ~4x its forward EV/EBITDA estimate excluding the yet to complete acquisition of a 45% stake in the Sierra Gorda copper mine in Chile.

It feels this is great value, especially given its expectation for the more than doubling of its EBITDA in FY 2022 and compelling free cash flow yield of ~18% in FY 2022 and ~17% in FY 2023. This is being driven mostly by its exposure to base metals such as aluminium and alumina.

The post These ASX shares could be buys for value investors appeared first on The Motley Fool Australia.

More reading

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• Why Beforepay, Firefinch, Kogan, and South32 shares are dropping
• ASX 200 (ASX:XJO) midday update: Wesfarmers’ update, energy shares rise
• South32 (ASX:S32) share price lower despite ‘next generation mine’ update

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 Accent Group. 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 last few years haven’t been easy for the Telstra Corporation Ltd (ASX: TLS) share price and its shareholders.

But that all changed in 2021, with the telco giant’s shares among the best performers on the illustrious ASX 50 index.

During the 12 months, the Telstra share price raced a whopping 43% higher.

Why did the Telstra share price shoot higher in 2021?

There were a number of catalysts for the rise in the Telstra share price in 2021. These include its solid result in FY 2021, the announcement of asset sales, the acquisition of Digicel Pacific, and the unveiling of its T25 strategy.

It was arguably the latter that got investors most excited. After years of earnings declines and dividend cuts, the telco giant believes its T25 strategy will drive growth over the coming years.

Telstra’s CEO, Andy Penn, explained that T22 was based on transforming the company, whereas T25 will be about driving growth.

Mr Penn commented: “T25 marks our transition from transformation to growth, from a strategy we had to do, to a strategy we want to do to focus on growth. It is a strategy that builds on the strong foundations we have built over the last three years and remains focussed on what matters most – our customers, our people, our shareholders and on supporting the creation of a vibrant digital economy for Australia.”

According to the update, Telstra is aiming to deliver sustained growth and value by targeting mid-single digit underlying EBITDA and high-teens underlying earnings per share (EPS) compound annual growth rates between FY 2021 and FY 2025.

Supporting this growth will be the company’s cost reduction plans and its 5G network. In respect to the former, Telstra is aiming to make $500 million of net fixed cost outs between FY 2023 and FY 2025 while still investing in its growth. Whereas for the latter, the telco expects to provide ~95% of the Australian population with 5G coverage by FY 2025. Combined with its superior network, management expects this to underpin mobile services revenue growth.

Can Telstra beat the market again in 2022?

The good news for investors is that one leading broker still sees a lot of value in the Telstra share price.

A note out of Ord Minnett from last week reveals that its analysts have a buy rating and $4.85 price target on its shares. With Telstra’s shares currently changing hands for $4.26, this implies potential upside of 14% over the next 12 months.

The post Why the Telstra (ASX:TLS) share price zoomed 43% higher in 2021 appeared first on The Motley Fool Australia.

More reading

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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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Today, the S&P/ASX 200 Index (ASX: XJO) slipped to the downside after starting off in the green. At the end of the session, the benchmark index finished 0.11% lower at 7,408.8 points.

Investors were split on how to view the Aussie share market today as a handful of companies posted their quarterly and half-year results. Healthcare and industrial shares were the worst culprits today, with both sectors firmly in the red. In contrast, the materials sector lifted with gains across lithium shares. However, it wasn’t enough to prevent a negative day on the market.

The question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Imugene Ltd (ASX: IMU) was the biggest gainer today. Shares in the immuno-oncology company jumped 7.04% despite there being a lack of news from the company. Find out more about Imugene here.

The next biggest gaining ASX share today was JB Hi-Fi Limited (ASX: JBH). The retailer enjoyed a 6.86% rally after reporting its second-quarter results for FY22. It appears the market wasn’t too worried about the numbers reflecting a fall in sales and earnings compared to the previous corresponding period. Uncover the latest JB Hi-Fi details here.

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

ASX-listed company	Share price	Price change
Imugene Ltd (ASX: IMU)	$0.38	7.04%
JB Hi-Fi Limited (ASX: JBH)	$49.84	6.86%
Liontown Resources Ltd (ASX: LTR)	$1.765	6.33%
Novonix Ltd (ASX: NVX)	$10.21	6.02%
Dicker Data Ltd (ASX: DDR)	$14.02	5.89%
Paladin Energy Ltd (ASX: PDN)	$0.89	5.33%
Zimplats Holdings Ltd (ASX: ZIM)	$24.88	4.54%
Netwealth Group Ltd (ASX: NWL)	$16.42	3.73%
Credit Corp Group Ltd (ASX: CCP)	$35.20	3.32%
Mirvac Group (ASX: MGR)	$2.88	2.86%

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.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Tuesday
• Why Allkem, BrainChip, Data#3, and JB Hi-Fi shares are charging higher
• ASX 200 (ASX:XJO) midday update: Rio Tinto’s Q4 update, JB Hi-Fi rockets, Kogan sinks
• This is how much the average Aussie needs to feel ‘rich’
• JB Hi-Fi (ASX:JBH) share price shoots 7% higher on ‘strong sales’

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 and has recommended Dicker Data Limited and Netwealth. The Motley Fool Australia owns and has recommended Dicker Data Limited and Netwealth. 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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Key points

• Santos is 12% in the green sine January 1
• With energy prices soaring, Santos is poised to deliver a period of high free cash flow
• Morgan Stanley reckons this can be redistributed to investors via a healthy dividend, if Santos chooses
• The broker tips Santos as a buy and values the company at $10.40 per share.

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The Santos Ltd (ASX: STO) share price finished Tuesday in the green, up 0.14% on the day to close at $7.07.

Investors have rewarded Santos since late December amid renewed strength in oil and natural gas markets.

These strengths saw Santos realise high free cash flow and boost cash reserves on its balance sheet into 2022 — points that haven’t gone unnoticed by Morgan Stanley.

The broker is bullish on Santos and reckons the oil and gas giant could potentially increase its dividends as a result. Let’s take a look.

Can Santos pay higher dividends?

The team at Morgan Stanley reckons Santos should re-evaluate its dividend policy this year, particularly given forward estimates in global energy markets for natural gas and oil.

It reckons the next few years “could see materially higher energy prices”. As such, the brokers says any strategy that “rewards investors during such a period could be more attractive to investors”.

Morgan Stanley notes that if Santos were to adopt the strategy, it would signify a meaningful drift away from the company’s current push to grow material production after 2025.

In its own modelling, Morgan Stanley submits that Santos’ gearing would slide in under 20% if Brent crude were to average US$70/bbl and if it were to sell off assets in its Alaska operations.

In fact, if current trends in the energy markets such as LNG persist, “free cash yields would approximate 10-15% and potentially near 20%”.

If the energy market delivers, the broker reckons “this would give Santos the capacity to pay higher dividends”. It notes the company could even double its current 15 cents per share trailing dividend should it return 50% of free cash flow to investors.

If it were to return 50% as a payout ratio, this would be a substantial jump from the 20%-30% payout ratio that Santos currently incorporates in its dividend program.

Fellow broker Morgans is also bullish on Santos, valuing the company at $8.65 a share with an add rating to investors.

Santos share price summary

The Santos share price has had a challenging year, slipping 4% into the red these past 12 months.

Things are looking up this year to date, however, with the Santos share price charging 12% higher since January 1.

The post Own Santos (ASX:STO) shares? Top broker thinks it ‘can pay higher dividends’ appeared first on The Motley Fool Australia.

More reading

• Is this driving Santos (ASX:STO) and Woodside (ASX:WPL) shares higher on Monday?
• 5 things to watch on the ASX 200 on Monday
• Santos (ASX:STO) accused in court of ‘cavalier attitude’. Here’s why
• 5 things to watch on the ASX 200 on Friday
• Is the ‘moment of truth’ coming for gas shares like Santos (ASX:STO)?

The author 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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