Day: February 11, 2022

2 exciting small cap ASX shares with enormous potential

A wide-eyed happy woman with long brown hair and wearing a pink top holds her hands up in delight after hearing positive news about her ASX shares

A wide-eyed happy woman with long brown hair and wearing a pink top holds her hands up in delight after hearing positive news about her ASX sharesA wide-eyed happy woman with long brown hair and wearing a pink top holds her hands up in delight after hearing positive news about her ASX shares

If you’re a fan of small caps, then you’re in luck because there are a number of exciting ones with huge potential on the Australian share market.

Listed below are two small cap ASX shares that analysts rate highly. Here’s what you need to know about them:

Airtasker Ltd (ASX: ART)

The first small cap ASX share to consider is Airtasker. It is a growing online marketplace for local services which has an estimated $600 billion global total addressable market across Australia, the US, and the UK.

Management estimates that it has only captured a 0.3% slice of the Australian market at present, which clearly gives it a long runway for growth over the next decade and beyond in just the domestic market. And with the US market 10 times larger, there’s a mouth-watering opportunity for Airtasker over there.

Morgans is very positive on Airtasker. It highlights that the company’s product works for both sides of the marketplace, has attractive unit dynamics with healthy gross and contribution margins, an enormous TAM in the early stages of ecommerce adoption, and a large international expansion opportunity.

The broker has an add rating and $1.27 price target on the company’s shares.

Whispir Ltd (ASX: WSP)

Another small cap share to watch is Whispir. It is a software-as-a-service communications workflow platform provider. Whispir’s platform allows businesses and governments to deliver actionable two-way interactions at scale using automated multi-channel communication workflows.

Whispir has been growing at a strong rate over the last few years. This led to the company’s Annualised Recurring Revenue (ARR) growing 26.6% during the first half to $60 million. And while this is a large number, it is still well-short of its market opportunity. For example, management estimates that it has a TAM of US$4.7 billion in the just United States.

Ord Minnett is a fan of the company and has a buy rating and $3.45 price target on its shares.

The post 2 exciting small cap ASX shares with enormous potential 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 Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has recommended Whispir 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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Here are the top 10 ASX shares today

Top 10 asx shares todayTop 10 asx shares todayTop 10 asx shares today

Today, the S&P/ASX 200 Index (ASX: XJO) failed to continue its streak of positive performances. At the end of the session, the benchmark index finished 0.98% lower at 7,217.3 points.

It was a sorry old day for tech shares as the sector tumbled 3.8%. The move followed a similar affair across tech names on Wall Street last night after US inflation hit the highest level in 40 years at 7.5%. Fortunately, mining giants held up the ASX to some extent.

However, 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, Yancoal Australia Ltd (ASX: YAL) was the biggest gainer today. Shares in the coal mining company rallied 4.95% without any new information floating through the grapevine. Find out more about Yancoal Australia here.

The next biggest gaining ASX share today was Insurance Australia Group Ltd (ASX: IAG). Shares rose 4.18% following the release of the general insurance company’s FY22 half-year results. Uncover the latest Insurance Australia Group details here.

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

ASX-listed company Share price Price change
Yancoal Australia Ltd (ASX: YAL) $3.18 4.95%
Insurance Australia Group Ltd (ASX: IAG) $4.74 4.18%
Rio Tinto Ltd (ASX: RIO) $122.36 2.86%
ALS Ltd (ASX: ALQ) $12.30 2.67%
Fortescue Metals Group Ltd (ASX: FMG) $22.83 2.47%
Flight Centre Travel Group Ltd (ASX: FLT) $20.83 1.46%
BHP Group Ltd (ASX: BHP) $48.86 1.20%
Medibank Private Ltd (ASX: MPL) $3.18 0.95%
Champion Iron Ltd (ASX: CIA) $7.12 0.85%
Westpac Banking Corp (ASX: WBC) $22.78 0.71%
Data as at 4:00pm AEDT

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.

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 Mitchell Lawler 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 Insurance Australia Group Limited. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and 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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Are there going to be SEVEN interest rate hikes in 2022?

red percentage sign with man looking up which represents high interest ratesred percentage sign with man looking up which represents high interest rates

red percentage sign with man looking up which represents high interest ratesGlobal investment bank Goldman Sachs is now predicting that there could be as many as seven interest rates in 2022. What could this mean for the (ASX) share market?

Interest rate prediction

Goldman Sachs now thinks that the US Federal Reserve is going to need to increase the interest rate even faster, according to reporting by Bloomberg. It was previously thinking that there would be five interest rate hikes.

Why the big change?

The inflation picture continues to change rapidly. The US consumer price index report for January came out, showing a 7.5% annual increase. It isn’t been this strong for four decades. Inflation is widespread in numerous areas like food, energy, household furnishings and health insurance.

Is a 0.50% hike coming next month?

There has been a lot of talk about how much the US Federal Reserve is going to increase interest rates this year. An increasingly important question is – should the Fed increase the rate by 0.50% as its first move?

Goldman Sachs doesn’t think so. Instead, the investment bank’s economists believe that the Federal Reserve is going increase the rate in seven meetings in a row.

There is lots of inflation and wage growth, with more expected. But from what Goldman Sachs has seen, policymakers seem to be indicating that steady moves will be the most likely choice:

Most Fed officials who have commented have opposed a 50 basis points hike in March. We therefore think that the more likely path is a longer series of 25 basis points hikes instead.

Whatever happens, the (ASX) share market could be in for a bumpy ride in 2022.

However, there are still other economists and prominent financial people, such as the former US Treasury Secretary Lawrence Summers, that think interest rates could jump 0.50% in March.

Why do interest rates matter so much?

Magellan Financial Group Ltd (ASX: MFG) has a very relevant quote from Warren Buffett at the 1994 Berkshire Hathaway annual general meeting, where he said about interest rates:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature…its intrinsic valuation is 100% sensitive to interest rates.

Time will tell what this means for the (ASX) share market. And indeed most assets.

The post Are there going to be SEVEN interest rate hikes in 2022? 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 Tristan Harrison owns Magellan Financial Group. 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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Should Telstra (ASX:TLS) really ‘be worried’ about its major competitor’s new asset?

Man looking concerned head in hands at laptopMan looking concerned head in hands at laptopMan looking concerned head in hands at laptop

The Telstra Corporation Ltd (ASX: TLS) share price finished in the red today despite no news from the company.

The company’s share price finished at $4.02 today, a 0.74% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) dropped 0.98% today.

Let’s take a look at what might be going on at this ASX200 telco.

Competitor news

Telstra may not have released any major news today, but its major competitor certainly did. Optus announced it had appointed former premier NSW Gladys Berejiklian to its executive team. Berejiklian served as Premier of NSW from January 2017 to October 2021.

Telstra “would be quaking in their boots”, Macquarie Telecom executive Luke Clifton said in comments reported in the Financial Review.

Clearly, Telstra has had the lion’s share of the NSW state government telecoms expenditure. And she is going to be able to open some serious doors in NSW government for Optus.

Meanwhile, the current NSW Premier Dominic Perrottet also chipped in with praise for his former colleague and some words for Telstra.

Not only is she a strong leader but she achieves great outcomes and her professionalism and her diligence will service her very well.

If you’ve got an issue with Optus’ reception and you’ve got Glad’s number, you can give her a call…

I think Telstra will be worried.

However, Telstra has reported plenty of positive news of its own lately. Early this week, the company share price climbed amid news of a $100 million Internet of Things deal.

Last week, the company reported to the market details of an investment of $1.6 billion in ‘nation-building’ projects.

As my Foolish colleague James reported yesterday, Morgans recently rated Telstra as a “buy” with a price target of $4.56.

Berejiklian also served as transport minister and treasurer before becoming Premier of NSW. In her role as transport minister, she had responsibility for infrastructure including telecommunications.

Commenting on her new role, Berejiklian said:

I am excited and proud to join an organisation that impacts the lives of millions of Australians every day and prides itself in providing outstanding customer service.

Telstra share price snap shot

The Telstra share price has gained nearly 24% over the past year but it has fallen 4% this year to date. It has fallen 0.74% since last Friday’s close, while it has dropped nearly 3% in the past month.

For perspective, the ASX 200 has returned about 5% over the past year.

Telstra has a market capitalisation of about $47.2 billion based on the current share price.

The post Should Telstra (ASX:TLS) really ‘be worried’ about its major competitor’s new asset? appeared first on The Motley Fool Australia.

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

Before you consider Telstra, 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 Telstra 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 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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