Day: February 1, 2022

3 fantastic ASX shares to buy this month

Young woman in yellow striped top with laptop raises arm in victory

Young woman in yellow striped top with laptop raises arm in victoryYoung woman in yellow striped top with laptop raises arm in victory

There certainly are a lot of options for investors to choose from on the Australian share market.

But three that could be fantastic options right now are listed below. Here’s what you need to know about them:

Goodman Group (ASX: GMG)

The first ASX share to consider buying is Goodman Group. It is a leading integrated commercial and industrial property company that owns a collection of high quality assets. It also has a significant development pipeline which will add to its portfolio during the coming years. Positively, many of Goodman’s assets have exposure to structural tailwinds such as ecommerce and the digital economy. As a result, they look likely to be in demand with customers for a long time to come. This should be supportive of rental income and distribution growth over the next decade.

Macquarie is a fan of Goodman. It currently has an outperform rating and $26.63 price target on its shares.

ResMed Inc. (ASX: RMD)

Another ASX share to consider is ResMed. This sleep treatment-focused medical device company appears well-placed for growth during the 2020s thanks to its industry-leading products, sizeable market opportunity, and a major competitor product recall. ResMed also has a growing ecosystem of connected devices generating invaluable data insights. This could give it a real edge over the competition in the future and puts it in a great position to benefit from the shift to home healthcare.

This week Morgans put an add rating and $40.46 price target on the company’s shares.

Xero Limited (ASX: XRO)

A final ASX share to look at is Xero. It provides small and medium sized businesses with a cloud-based business and accounting solution. It has been growing strongly over the last few years thanks to its international expansion, acquisitions, and the transition to the cloud. Positively, all these drivers are still in place and should be supported by its burgeoning app ecosystem. If the company can monetise this ecosystem and continue its international expansion, it could support strong revenue growth over the 2020s.

Goldman Sachs is bullish. The broker currently has a buy rating and $158.00 price target on its shares.

The post 3 fantastic ASX shares to buy this month 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 has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. 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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Archer Materials (ASX:AXE) share price leaps 12% on ‘major technical feat’

Businessman in suit and holding a briefcase jumps into the sky celebrating the rising Enero share priceBusinessman in suit and holding a briefcase jumps into the sky celebrating the rising Enero share priceBusinessman in suit and holding a briefcase jumps into the sky celebrating the rising Enero share price

Key points

  • The Archer Materials share price soared by 12% today
  • This came after the company advised of a significant technological achievement
  • Archer Materials is one of only a few companies globally developing qubit processor chip technology in the semiconductor industry

The Archer Materials Ltd (ASX: AXE) share price spiked well into the green today and finished trading 12% higher at $1.21.

Investors piled into Archer Materials following a company announcement about its mobile compatible chip technology.

Market participants crowded into Archer on a volume 340% higher than its 4-week trading average. Let’s take a look.

Archer detects quantum information using mobile chip tech

The Archer Materials share price soared today after the company advised it has reached a “major technical feat” in its 12CQ quantum chip development using mobile compatible chip technology.

Archer used the mobile chip technology to detect quantum information at room temperature and in a controlled environment.

The advancement is seen as a huge win in quantum computing circles as it paves the way to implement “complex qubit control”. This, Archer says, is “a fundamental requirement for quantum computing processor chips to operate”.

“High electron mobility transistor (HEMT) technology was used to detect and characterise the 12CQ qubit material,” the company notes. HEMT devices are used widely in integrated circuits – such as in mobile phones – and are known in the semiconductor industry for low power consumption.

As a result, the company and its associates have now used a single-chip integrated electron spin resonance (ESR) detector based on HEMT technology to “detect and characterise qubit material in a controlled atmosphere at room temperature”.

“Unoptimised” ESR chip devices were sensitive enough to detect the electron spin in a few picolitres of qubit material at room temperature. For reference, 1 picolitre is a trillionth of a litre.

From its observations, Archer and colleagues found the quantum states were sufficiently well preserved when operating in an on-chip environment.

Archer Materials also notes it is the only ASX listed company – and one of a few companies globally – developing qubit processor chip technology in the semiconductor industry.

Management commentary

Speaking on the update that fuelled the Archer Materials share price today, CEO Dr Mohammad Choucair said:

Archer’s 12CQ chip development is unique as we have the potential to enable quantum powered mobile devices. Our technology advance provides direct proof to support this exciting possibility. HEMT technology is well established and widely used in the semiconductor industry, so its use in the development of qubit control devices is consistent with the company’s strategy to make the 12CQ chip compatible with modern electronics.

Archer Materials share price snapshot

In the last 12 months, the Archer Materials share price has soared by more than 69%. It has also climbed 7.5% this year to date.

It has substantially outperformed the benchmark S&P/ASX 200 Index (ASX: XJO) in that time, as shown on the chart below.

TradingView Chart

The post Archer Materials (ASX:AXE) share price leaps 12% on ‘major technical feat’ appeared first on The Motley Fool Australia.

Should you invest $1,000 in Archer Materials right now?

Before you consider Archer Materials, 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 Archer Materials wasn’t one of them.

The online investing service he’s run for over 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 January 13th 2022

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Motley Fool contributor Zach Bristow 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.

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Will supply chain issues continue to dog Woolworths (ASX:WOW) when it reports this month?

A woman ponders over what to buy as she looks at the shelves of a supermarketA woman ponders over what to buy as she looks at the shelves of a supermarketA woman ponders over what to buy as she looks at the shelves of a supermarket

Key points

  • The Woolworths share price was hit with news of COVID-19-induced costs in December
  • The supermarket giant was also plagued by supply chain issues in January as staff were forced to self-isolate
  • Some experts are predicting such dilemmas will be a key issue during the February reporting season

It’s been a rough couple of months for Woolworths Group Ltd (ASX: WOW) shares. The supermarket giant battled COVID-19‘s Delta variant before Australia was hit with the current Omicron outbreak.

Each outbreak delivered the company its own challenges, including supply chain and cost disruptions. But that should be over by the time the company reports in February, right?

Here’s why it might be worth considering supply chain woes in the company’s first-half results.

As of Tuesday’s close, the Woolworths share price is $34.57. That was up 0.44% on the day.

What might Woolworths report this earnings season?

COVID-19 has wrought havoc on many ASX shares and Woolworths has been among them.

Early last month, the Omicron variant reportedly saw 35% of the company’s distribution centres’ staff isolating — either from contact with, or infected by, the virus.

The company put out a statement asking for calm as it worked to restock bare shelves in New South Wales and Queensland.

Now, some fund managers are expecting such supply chain issues to be a major talking point during the February reporting season.

Tribeca Investment Partners portfolio manager Jun Bei Liu was recently quoted by The Australian as saying:

The supply chain disruption is going to be severe. Companies first started talking about this issue 12 months ago, and many of us thought the disruption should be gone by now but on the contrary, it’s actually gotten worse because labour shortages are so severe.

The publication also spoke to Cyan Investment Management principal Dean Fergie who said:

Certainly the commentary going forward won’t be overly positive in light of rising interest rates and continued uncertainty, and the fact that we’re just not seeing that opened-up economy, back-to-normal behaviour yet.

The supermarket giant reinstated product limits in mid-January after COVID-19 anxieties saw customers stripping shelves once more.

Additionally, back in December, the supermarket’s stock dropped 7% after it announced it had been hit with increased costs during outbreaks of the virus.

At the time, its CEO stated disruptions to efficiency and end-to-end stock flow had brought significant expenses.

It goes without saying there will be plenty of eyes on the supermarket this month. Woolworths is expected to drop its results for the first half of financial year 2022 on 23 February.

The post Will supply chain issues continue to dog Woolworths (ASX:WOW) when it reports this month? 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 over 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 January 13th 2022

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Motley Fool contributor Brooke Cooper 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.

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What are you really getting when you buy Northern Star (ASX:NST) shares?

Young woman using computer laptop with hand on chin thinking about question, pensive expression.Young woman using computer laptop with hand on chin thinking about question, pensive expression.Young woman using computer laptop with hand on chin thinking about question, pensive expression.

The Northern Star Resources Ltd (ASX: NST) share price has enjoyed a solid day of gains on the ASX boards today. Northern Star shares closed at $8.47 apiece, up a healthy 2.17% for this Tuesday’s trading.

Given this ASX gold miner was one of the most prominent gold shares of 2021, thanks mostly to its blockbuster merger with the old Saracen Mineral Holdings Ltd, it might be a good idea to check out this company and see what’s under the hood.

The ASX gold sector is dominated by just a few large-cap shares. Northern Star is a heavy hitter, with its current market capitalisation of $9.65 billion. But the ‘big dog’ is still Newcrest Mining Ltd (ASX: NCM), with its market cap of $17.62 billion. So let’s see how Northern Star measures up against Newcrest.

How do Northern Star shares compare to Newcrest?

As it currently stands, Northern Star is priced with a price-to-earnings (P/E) ratio of 7.36. That gives this company a trailing dividend yield of 2.26%.

In contrast, Newcrest currently commands a P/E ratio of 10.78 and a trailing market capitalisation yield of 3.47%.

Northern Star currently has 9 Australian gold projects in operation, as well as one in Alaska. The company sold 1,595 million ounces of gold across FY21, achieved with an annualised all-in sustaining cost of $1,583 per ounce.

Contrast that to Newcrest. Newcrest has a slightly more diversified portfolio of mining projects. Its flagship mine is Cadia, in New South Wales. But it also owns another mine in Western Australia, as well as Lihir in Papua New Guinea and Red Chris in Canada. Newcrest recorded production of 2.1 million ounces of gold in FY21, achieved with an all-in sustaining cost of approximately $1,289 per ounce.

So that’s how Northern Star compares to its fellow large-cap ASX gold miner Newcrest. It seems investors have decided to price Newcrest shares at a slightly higher P/E multiple to that of Northern Star. This is perhaps due to Newcrest’s lower-cost operations and higher gold output.

So if you own Northern Star shares, this is what you’re getting with your investment.

The Northern Star share price has been struggling recently. It remains down a nasty 35% over the past year. However, investors have enjoyed a pleasing 112% gain over the past 5 years.

The post What are you really getting when you buy Northern Star (ASX:NST) shares? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Northern Star Resources right now?

Before you consider Northern Star Resources, 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 Northern Star Resources wasn’t one of them.

The online investing service he’s run for over 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 January 13th 2022

More reading

Motley Fool contributor Sebastian Bowen owns Newcrest Mining 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 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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