Day: January 30, 2022

2 excellent ASX tech shares for investors in February

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

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

If you’re looking for growth shares to buy, then the tech sector could be a great place to start your search. Particularly given recent weakness in the sector, which has left many shares trading notably lower than their highs.

With that in mind, listed below are two top tech shares that could be worth considering. Here’s what you need to know about them:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The first tech option for investors to look at is actually an ETF. The BetaShares Global Cybersecurity ETF gives investors access to a group of tech shares with a focus on cybersecurity services. Among the companies in the fund that you’ll be owning a slice of are the likes of Accenture, Cisco, Cloudflare, Crowdstrike, Okta. Positively, with demand for these types of services increasing due to the growing threat of cyberattacks on governments and businesses, the BetaShares Global Cybersecurity ETF has been tipped as a potential long term market beater.

Life360 Inc (ASX: 360)

Another tech share to look at is Life360. It is the San Francisco-based technology company behind the incredibly popular Life360 mobile app. This is a market leading app for families, offering features such as communications, driver safety, and location sharing. During the 12 months ended 31 December, Life360 grew its active user base to a massive 35.5 million. This underpinned significant recurring revenue growth, which shows no signs of slowing. Especially given recent acquisitions which have broadened its product range and opened up cross-selling opportunities to its user base. All in all, Life360 appears well-placed to continue its strong growth for some time to come according to Bell Potter. It is a fan of the company and put a buy rating and $15.00 price target on its shares last week.

The post 2 excellent ASX tech shares for investors in February 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 over ten 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 January 12th 2022

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Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended BETA CYBER ETF UNITS and Life360, Inc. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. 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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2 top ASX dividend shares for income investors

Different Australian notes.

Different Australian notes.Different Australian notes.

Are you interested in boosting your income portfolio with some top dividend shares? If you are, you may want to look at the two listed below.

Here’s what you need to know about these ASX dividend shares:

Centuria Industrial REIT (ASX: CIP)

The first ASX dividend share to look at is Centuria Industrial. It is focused on building a portfolio of high quality industrial assets to deliver income and capital growth to investors. In fact, it is the largest domestic pure play industrial REIT on the Australian share market.

It has been performing strongly in recent years and has continued this trend in FY 2022. Centuria Indsutrial REIT recently revealed strong nationwide demand for industrial space, particularly from ecommerce-related tenant customers. This has underpinned strong rental growth year to date in FY 2022.

This bodes well for dividends this year. Centuria Industrial REIT is targeting funds from operations (FFO) of at least 18.1 cents per share and a distribution of 17.3 cents per share. Based on the current Centuria Industrial REIT share price of $3.82, the latter will mean a 4.5% dividend yield for investors.

Rural Funds Group (ASX: RFF)

Another ASX dividend share to look at is Rural Funds. It is an agricultural real estate investment trust (REIT) that owns a portfolio of Australian agricultural assets. These high quality assets are leased to corporate agricultural operators including Treasury Wine Estates Ltd (ASX: TWE).

Rural Funds has also been adding to its portfolio with acquisitions over the last 12 months. These acquisitions include cattle and cropping properties and macadamia orchards in Queensland, which are consistent with its strategy of acquiring assets with potential for productivity improvements in agricultural sectors it has experience in.

As for its dividends, management is intending to increase its distribution by its annual target rate of 4% to 11.73 cents per share in FY 2022. Based on the current Rural Funds share price of $2.86, this represents an attractive yield of 4.1%.

The post 2 top ASX dividend shares for income investors 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 over ten 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 January 12th 2022

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 and has recommended RURALFUNDS STAPLED. 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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Top brokers name 3 ASX shares to sell next week

Keyboard button with the word sell on it.

Keyboard button with the word sell on it.Keyboard button with the word sell on it.

Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of Citi, its analysts have retained their sell rating and cut their price target on this iron ore giant’s shares to $17.00. This follows the release of a second quarter update which fell short of the broker’s expectations. This was particularly the case with iron ore price realisations, which have continued to weaken. Outside this, the broker believes the market is too optimistic on the Fortescue Future Industries business. The Fortescue share price ended the week at $19.45.

Premier Investments Limited (ASX: PMV)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted their price target on this retail giant’s shares to $23.60. While Premier Investments delivered a half year update ahead of the broker’s expectations, this was largely due to rental benefits. Without this, the result would have been in line with its estimates. In light of this and its long term concerns over the Smiggle business, the broker hasn’t seen enough to change its rating. The Premier Investments share price was fetching $28.40 at Friday’s close.

Qantas Airways Limited (ASX: QAN)

Analysts at Credit Suisse have retained their underperform rating and cut their price target on this airline operator’s shares to $4.40. The broker has reduced its earnings estimates to reflect rising oil prices. Its analysts have also warned that oil prices could get to US$100 a barrel, which could weigh on its margins. The Qantas share price ended the week at $4.73.

The post Top brokers name 3 ASX shares to sell next week 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 over ten 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 January 12th 2022

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 Premier Investments 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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What has driven the Fortescue (ASX:FMG) share price up 40% in three months?

Rising share price chart.

Rising share price chart.Rising share price chart.

The Fortescue Metals Group Limited (ASX: FMG) share price has risen by 40% over the past three months. What has been driving the ASX miner higher?

Fortescue is one of the biggest miners in Australia and it has rapidly recovered a lot of its lost market capitalisation. The Fortescue share price fell to around $14 in October.

The iron ore price is recovering

Fortescue is a substantial iron ore miner, one of the biggest in the world along with BHP Group Ltd (ASX: BHP), Vale and Rio Tinto Limited (ASX: RIO).

Miners have to accept the best price that they can get for the commodity that they produce. Resource prices can be volatile and cyclical.

The iron ore price was exceptionally high in the middle of 2021 thanks to Chinese demand. However, as Fortescue reached the final quarter of the 2021 calendar year, the iron ore price fell with China telling steel producers to reduce their output and improve their emissions profile as the Winter Olympics got closer.

Whilst the iron ore price fell to around US$80 per tonne in November, it has since come roaring back to around US$140 per tonne.

What does this mean for the Fortescue profit?

Profit expectations can have a sizeable impact on the Fortescue share price.

For Fortescue, extracting the iron ore from the ground largely costs the same whether the iron ore price is US$100 or US$150 per tonne. So, a higher iron ore price largely adds to the net profit apart from paying more money to the government as well.

Brokers had been expecting that the iron ore price would drop to around US$90 or US$80 per tonne this year. The consensus view was not that iron ore would see a recovery back above US$130 per tonne as we have seen.

What do analysts think of Fortescue now?

The broker Macquarie thinks that the Fortescue share price is a buy, with a price target of $21.

It was noted by Macquarie that Fortescue’s iron production in the second quarter of FY22 was good, but the discount paid for the ASX miner’s iron ore is increasing because it’s a lower grade than what is supplied by peers like BHP and Rio Tinto.

In the second quarter, Fortescue’s iron ore shipments of 47.5 million tonnes contributed to shipments of 93.1mt for the first half of the year, which was 3% higher than the first half of FY21.

However, there are plenty of brokers that don’t think the Fortescue share price is going to perform this year. UBS rates it as a sell with a price target of just US$14.90.

Credit Suisse has an even lower price rating of just $13.50, suggesting that it looks expensive compared to its peers. But it does see the potential for the green division of the company called Fortescue Future Industries (FFI).

The ASX miner recently announced the acquisition of UK-based Williams Advanced Engineering (WAE) for approximately US$223 million. It provides critical technology and expertise in high-performance battery systems and electrification.

The post What has driven the Fortescue (ASX:FMG) share price up 40% in three months? appeared first on The Motley Fool Australia.

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

Before you consider Fortescue, 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 Fortescue wasn’t one of them.

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*Returns as of January 13th 2022

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Motley Fool contributor Tristan Harrison owns Fortescue Metals Group 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 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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