Day: February 8, 2022

Here are 3 excellent ASX growth shares for investors in February

A graphic image of three upward pointing arrows with smoke coming from their bottoms, indicating the arrows are taking off just like the Althea share price today

A graphic image of three upward pointing arrows with smoke coming from their bottoms, indicating the arrows are taking off just like the Althea share price todayA graphic image of three upward pointing arrows with smoke coming from their bottoms, indicating the arrows are taking off just like the Althea share price today

Are you wanting to add some ASX growth shares to your portfolio in February? If you are, you may want to look at the ones listed below.

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

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share to look at is Aristocrat Leisure. It is one of the world’s leading gaming technology companies. It has been growing at a rapid rate over the last decade thanks to strong demand for its best in class pokie machines and its lucrative digital business. The latter is generating significant recurring revenues from highly popular games such as RAID. And while it has just missed out on the major acquisition of real money gaming company Playtech, that is unlikely to be the end of its real money gaming aspirations. Particularly given its balance sheet strength following its capital raising. Morgans is bullish on Aristocrat and has an add rating and $48.00 price target on its shares.

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

Another option for investors to consider is an ETF that provides easy access to a group of quality growth shares. By buying the BetaShares Asia Technology Tigers ETF, investors will be owning a slice of around 50 outstanding companies that are leading Asia’s technological revolution. Among the companies included in the fund are the likes of Alibaba, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent.

Breville Group Ltd (ASX: BRG)

A final ASX growth share to look at is Breville. It is the leading appliance manufacturer behind the Baratza, Kambrook, Sage, and Breville brands. Thanks to its investment in research and development, these brands have been popular with consumers for many years, which has underpinned solid sales and earnings growth. And thanks to favourable consumer trends and its international expansion, brokers are expecting this growth to continue. One of those brokers is Morgan Stanley, which has an overweight rating and $36.00 price target on its shares.

The post Here are 3 excellent ASX growth 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 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 BetaShares Asia Technology Tigers 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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On a roll. Why is ASX 200 travel share Webjet (ASX:WEB) skyrocketing?

A woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surgesA woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surgesA woman looks up at a plane flying in the sky with arms outstretched as the Flight Centre share price surges

The Webjet Limited (ASX: WEB) share price has taken off so far this week.

The travel company’s shares have lifted 12.9% since market open on Monday. Today alone, Webjet shares have gained 7.44%.

Let’s take a look at what might be buoying the company’s share price lately.

Travel share recovery

Webjet may be in the green but it wasn’t the only ASX travel share taking off today. However, Webjet performed a little better than its ASX travel share peers.

Today, the Flight Centre Travel Group Ltd (ASX: FLT) share price jumped 6.71% while Qantas Airways Limited (ASX: QAN) shares climbed 1.11%.

Helloworld Travel Ltd (ASX: HLO) gained 3.53% while Corporate Travel Management Ltd (ASX: CTD) rose 4.27%.

This follows Prime Minister Scott Morrison revealing yesterday that Australia’s international borders will open to tourists and visa holders from 21 February. Investors appear to be reacting positively to this news.

Today, the New South Wales government said the international border opening would create tourism and international investment opportunities.

The state’s Tourism Minister Stuart Ayres said:

Tourism and hospitality operators will welcome the opening of international borders after two incredibly difficult years. This means more jobs, stronger businesses and a faster economic recovery across NSW.

The world is moving quickly and this is another critical step towards NSW getting back to normal and us living with the virus.

Webjet is an online travel agency enabling customers to compare flights, hotel accommodation, and car hire deals around the world.

The company has not made any price-sensitive announcements to the market since November. It’s due to report its FY22 results at the end of May.

As my Foolish colleague Aaron reported recently, the company is growing its domestic offering along with expanding its presence in the North American B2B market.

The Webjet share price has soared nearly 28% since market close on 27 January, less than two weeks ago.

Webjet share price snap shot

Over the last 12 months, the Webjet share price has gained almost 15%. In the past week alone, it has surged nearly 22%.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 4.45% over the past year.

Webjet has a market capitalisation of $2.25 billion based on its current share price

The post On a roll. Why is ASX 200 travel share Webjet (ASX:WEB) skyrocketing? appeared first on The Motley Fool Australia.

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

Before you consider Webjet, 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 Webjet 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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The author has no holdings in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Helloworld Limited. The Motley Fool Australia owns and has recommended Helloworld Limited. The Motley Fool Australia has recommended Corporate Travel Management Limited, Flight Centre Travel Group Limited, and Webjet Ltd. 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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Own ASX energy shares? Citi issues stark oil production warning

A man in a suit looks sad as oil is spilled from a barrel.A man in a suit looks sad as oil is spilled from a barrel.A man in a suit looks sad as oil is spilled from a barrel.

ASX energy shares have been clear beneficiaries of energy prices trading at multi-year highs.

Take oil, for example.

You have to go back to 2014 to find West Texas Intermediate (WTI) crude oil trading at these levels.

WTI is currently fetching US$91.27 per barrel, down just a touch from yesterday’s US$92.31 per barrel.

Now turn the clock back to 1 January and that same barrel was trading for US$75.21. And go back a full year, to 8 February 2021, and WTI was selling for $58.26 per barrel.

In other words, oil has surged 22% in 2022, helping propel some big gains for leading ASX energy shares.

S&P/ASX 200 Index (ASX: XJO) listed Santos Ltd (ASX: STO), as one example, has gained around 15% year-to-date.

Rival ASX 200 energy share Woodside Petroleum Limited (ASX: WPL) has done even better, up by more than 19%.

This, as the benchmark index itself has lost 5.3% in the calendar year.

But oil prices could be set for a significant retrace as the year unfolds.

Tailwinds ahead for ASX energy shares?

Crude oil prices have been driven higher as demand ramped back up following pandemic re-openings while new supply levels have failed to keep pace.

OPEC+, while opening the taps by another 400,000 barrels per day earlier this month, still has restrictions in place. And even so, many of its members aren’t currently able to even meet their production caps.

New investments in oil exploration and production have also lagged, while COVID continues to hamper labour availability.

But there could be a flood of new crude oil supply hitting the markets in 2022 yet.

According to Citi analysts, output from the United States could lift by as much as 1 million barrels per day this year, which could pose concerns for ASX energy shares.

As Bloomberg reports, Citi said, “Oil executives tempted by the prospect of the highest crude prices in seven years are showing all the signs of abandoning pledges to hold the line on drilling budgets.”

Citi analyst Scott Gruber expects US shale explorers will increase spending by some 40% in 2022. Citi had previously forecast a 30% increase in spending. Meanwhile, it expects overseas spending levels to increase by 32% this year, up from its previous expectation of a 17% rise.

According to Gruber:

E&P managements will be hard pressed to abandon their commitments. But we foresee an increasing number beginning to lean into the market as the challenge of managing supply in a market as disaggregated as the global oil market becomes increasingly clear.

Should the US pump an extra million barrels of oil per day, crude prices will likely retrace. And ASX energy shares could see their prices come under pressure.

The post Own ASX energy shares? Citi issues stark oil production warning 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

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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GUD (ASX:GUD) share price on watch after reporting 32% revenue growth

a happy investor with a wide smile points to a graph that shows an upward trending share price

a happy investor with a wide smile points to a graph that shows an upward trending share pricea happy investor with a wide smile points to a graph that shows an upward trending share price

The GUD Holdings Limited (ASX: GUD) share price will be one to watch on Wednesday.

This follows the release of the diversified products company’s half year results after the market close.

GUD share price on watch following mixed half

  • Revenue up 32% to $332 million
  • Underlying net profit after tax (excluding Job Keeper) up 14.7% to $35.2 million
  • Underlying earnings per share down 15.6% to 30.4 cents
  • Fully franked interim dividend down 32% to 17 cents per share
  • Cash conversion down 30.1% to 63.3%

What happened during the first half?

For the six months ended 31 December, GUD reported a 32% increase in revenue to $332 million. This was driven by a record performance from its Automotive segment, which benefited from acquisitions. Group organic revenue growth was a more modest 5.7%.

On the bottom line, GUD reported a 14.7% increase in underlying net profit after tax to $35.2 million excluding Job Keeper. This is a touch short of the market consensus estimate of $35.8 million.

As for earnings per share, it fell 15.6% to 30.4 cents due to its increased share count following a capital raising to fund the AutoPacific Group (APG) acquisition.

GUD’s cash conversion of 63.3% fell short of its mid-term targets. However, there was a good reason for this. Management advised that this reflects the strategic commitment to increase inventories to address supply chain disruptions. Cash conversion is expected to improve in the second half despite elevated inventory levels as the seasonal spike for Chinese New Year unwinds.

Management commentary

GUD’s Managing Director, Graeme Whickman, commented: “It was pleasing to see such solid organic growth in Automotive sales and Underlying EBIT considering Q1 was the most locked down period since the pandemic commenced. In addition, Automotive was coming off an extraordinarily strong pcp due to a COVID‐19 sales recovery phase experienced in that half.”

“It was also exciting to announce and complete the Vision X acquisition and announce the APG acquisition. Both are critical steps in achieving the Group’s Portfolio Vision and will be important contributors to GUD’s long‐term success.”

Outlook

Management has reiterated the guidance it provided in December. It continues to expect FY 2022 underlying EBITA of $112 million to $116 million before contributions from the Vision X and APG acquisitions.

Including these acquisitions, EBITA is forecast to be in the range of $155 million to $160 million. Though, management has warned that short term challenges remain.

Mr Whickman commented: “Short term challenges remain. The recent spread of Omicron has seen capacity to produce and deliver against sales orders diminished in January, but we remain confident this will be a deferral of demand rather than a loss in sales. If that scenario proves to be correct, we remain on track to deliver on FY22F EBITA guidance of $155 to $160 million.”

The post GUD (ASX:GUD) share price on watch after reporting 32% revenue growth appeared first on The Motley Fool Australia.

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

Before you consider GUD, 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 GUD 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 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 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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