Day: February 15, 2022

3 excellent ASX growth shares to buy before it’s too late

Big green letters spell growth, indicating share price movements for ASX growth shares

Big green letters spell growth, indicating share price movements for ASX growth sharesBig green letters spell growth, indicating share price movements for ASX growth shares

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

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

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is this leading appliance manufacturer. Its portfolio of brands have been resonating extremely well with consumers for many years thanks to the company’s ongoing investment in research and development. Together with its global expansion and favourable industry tailwinds, Breville has been growing its sales and earnings at a consistently solid rate for many years. The good news is that analysts expect this trend to continue in the future, which could make recent weakness in the Breville share price a buying opportunity.

Morgan Stanley is a very positive on Breville. The broker currently has an overweight rating and $36.00 price target on its shares.

Hipages Group Holdings Ltd (ASX: HPG)

Another ASX growth share that has pulled back recently is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies. There are currently over 30,000 tradies using the platform, which is underpinning strong growth across all its key metrics. In addition, the company just announced the acquisition of New Zealand rival Builderscrack. This opens the door to 4,000 active tradies and a NZ$26 billion total addressable market.

Goldman Sachs is a big fan of Hipages and believes it has a huge market opportunity to grow into in the future. It currently has a buy rating and $4.60 price target on its shares.

Nitro Software Ltd (ASX: NTO)

A final ASX growth share to look at is Nitro Software. It is the document productivity company behind the Nitro Productivity Suite. This suite provides businesses of all sizes with integrated PDF productivity and electronic signature tools. Goldman Sachs initiated coverage on the company last week and is very positive on its future. It commented: “We estimate Nitro can increase its TAM penetration from 0.15% to 1.4% by FY40 implying 9x uplift to Nitro’s current revenue base.”

Goldman has a buy rating and $2.95 price target on its shares.

The post 3 excellent ASX growth shares to buy before it’s too late appeared first on The Motley Fool Australia.

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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 Hipages Group Holdings Ltd. The Motley Fool Australia owns and has recommended Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Nitro Software 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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Is the JB Hi-Fi (ASX:JBH) share price in the buy zone after its results?

two women looking intently at computer screen

two women looking intently at computer screentwo women looking intently at computer screen

The JB Hi-Fi Limited (ASX: JBH) share price continued its ascent on Tuesday.

The retail giant’s shares rose 4% to end the day at $53.70.

This means the JB Hi-Fi share price is now up over 9% since the start of the week.

Why is the JB Hi-Fi share price rising?

Investors have been bidding the JB Hi-Fi share price higher this week following the release of its half year results.

Although its sales and profit numbers were pre-released to the market in January, there were a couple of pleasant surprises that gave its shares a boost.

These were that trading was positive during the month of January, with JB Hi-Fi Australia and The Good Guys delivering solid year on year growth. The other was a $250 million off-market share buyback.

Can its shares keep climbing?

According to a note out of Morgans, its analysts believe the JB Hi-Fi share price has room to climb higher.

This morning the broker retained its add rating and $57,00 price target on its shares. Based on the current JB Hi-Fi share price, this implies potential upside of 6.1% before dividends and almost 11% including them.

Morgans commented: “JB Hi-Fi pre-announced its headline 1H22 earnings last month. The full earnings release issued today confirmed that EBIT was down 9% to $420.5m, but this was 60% above 1H20 and 17% above our estimate before the January trading update. Gross margins and operating cash flow were better than we had forecast.”

“We see JBH as a well-run retailer with good cost discipline, a robust balance sheet and a strong market position. Although we see only modest growth opportunities, we regard JBH as undervalued at current multiples and reiterate our ADD rating,” the broker concluded.

The post Is the JB Hi-Fi (ASX:JBH) share price in the buy zone after its results? appeared first on The Motley Fool Australia.

Should you invest $1,000 in JB Hi-Fi right now?

Before you consider JB Hi-Fi, 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 JB Hi-Fi 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 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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How did ASX tech shares perform today?

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.

ASX tech shares showed signs of recovery today, outperforming the broader S&P/ASX 200 Index (ASX: XJO).

The S&P/ASX All Technology Index (ASX: XTX) climbed 0.89%, while the S&P/ASX 200 Info Tech Index (ASX: XIJ) jumped 0.97%. In contrast, the ASX 200 fell 0.51%.

Let’s take a look at how the technology sector fared today.

Tech recovery

ASX 200 technology shares Megaport Ltd (ASX: MP1) and WiseTech Global Ltd (ASX: WTC) gained 1.78% and 0.26% respectively. Meanwhile, Altium Limited (ASX: ALU) rose 2.21% and TechnologyOne Ltd (ASX: TNE) finished 0.97% in the green.

Another ASX tech share that performed well today was ELMO Software Ltd (ASX: ELO). The cloud-based HR and payroll software company reported it had delivered more strong growth during the first half of FY22. Elmo’s share price gained 3% in today’s trade.

Appen Ltd (ASX: APX) also climbed 1.93%, while Xero Limited (ASX: XRO) jumped 0.29% and Computershare Limited (ASX: CPU) increased 0.22%.

Buy now, pay later share Block Inc CDI (ASX: SQ2) ascended 4.23%, while Zip Co Ltd (ASX: Z1P) dipped slightly by 0.37%.

The Block share price gained on the back of its New York Stock Exchange listing Block Inc (NYSE: SQ) jumping 3.49% in Monday’s session. Intel Corporation (NASDAQ: INTC) announced Block will be among the first three customers to use its new blockchain accelerator.

ASX tech shares often follow in the steps of their US counterparts, however today they outperformed them. The Nasdaq-100 Technology Sector Index (NASDAQ: NDXT) climbed 0.18% in the United States on Monday. As dailyfx reported, US markets ended broadly lower on Monday, but technology shares bucked this trend and finished slightly ahead. Tesla Inc (NASDAQ: TSLA) gained 1.83%, while Nvidia Corporation (NASDAQ: NVDA) and Amazon.com Inc (NASDAQ: AMZN) finished 1.33% and 1.22% in the green respectively.

ASX tech share summary

The All Technology Index has descended 19% over the past year, while it is down 16% year to date.

Meanwhile, the Info Tech index has fallen 26% in the past year and 18% year to date.

For comparison, the ASX 200 has gained nearly 5% in the past year and dropped 3% year to date.

The post How did ASX tech shares perform today? appeared first on The Motley Fool Australia.

Should you invest $1,000 in right now?

Before you consider , 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 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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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium, Appen Ltd, Block, Inc., Elmo Software, MEGAPORT FPO, WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Appen Ltd, Elmo Software, WiseTech Global, and Xero. The Motley Fool Australia has recommended Amazon, MEGAPORT FPO, and Nvidia. 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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How’s that dividend? GWA (ASX:GWA) share price falls despite 17% payout bump

a water tap is turned on and showering out banknotes into the open hand of a woman below it.a water tap is turned on and showering out banknotes into the open hand of a woman below it.a water tap is turned on and showering out banknotes into the open hand of a woman below it.

The GWA Group Limited (ASX: GWA) share price closed 1.92% lower on Tuesday at $2.55.

Shares in the water solutions provider headed south after the company reported its results for the half-year ended 31 December 2021.

Let’s take a closer look at what the company revealed.

GWA share price tumbles despite profitable half

The company came in with a number of investment takeouts, including:

  • Group revenue up 2% to $201.3 million, with Australian revenue alone climbing 6%
  • Normalised group earnings before interest and tax (EBIT) of $35.6 million, up 11% on the prior year
  • Normalised group EBIT margin lifted by 140 basis points during the half
  • Normalised net profit after tax (NPAT) of $22.4 million, up 12% year on year
  • Reported NPAT (including significant items) of $18.6 million, up 1% from the same time last year.

What else happened this period for GWA?

Operating cash flows came in stronger this half with normalised group EBIT gaining 11% year on year, resulting in a 1.4% gain in EBIT margin.

The improvement in earnings came despite the significant increase in freight costs compared to the prior corresponding period, GWA says.

As a result of the efficiencies, the group’s $201 million in revenue carried through to NPAT of $22 million, a 12% gain on the year.

This enabled the board to pay a fully-franked interim dividend of 7 cents per share, a 17% gain on the prior corresponding period. Investors can expect the dividend on 4 March 2022. Notably, the company’s Dividend Reinvestment Plan will not be offered to shareholders for the interim dividend.

GWA held a net debt load of $104 million as of 31 December, in line with the figure of $104.8 million from the same time last year.

The company has also been active in improving its credit metrics, with the gearing ratio of 21.2% contracting by around 30 basis points year over year. It also held adequate liquidity for operations in 2022, according to the company’s release.

“In October 2021, GWA successfully completed the extension of its syndicated banking facility which comprises a single three-year multicurrency revolving facility of $180 million which matures in October 2024,” it said.

Cash flow from operations also came in stronger than last year at $43.6 million, compared to $49.7 million in 1HFY21.

Management commentary

Speaking on the announcement, GWA’s Managing Director and CEO Urs Meyerhans said:

Throughout the period, we continued to operate within the COVID-19 impacted environment with the health and safety of our people and customers remaining as our first priority. We continue to implement our operational procedures to safeguard our people while minimising disruption to our customers to the extent possible.

Following an increase in the Lost Time Injury Frequency Rate (LTIFR) in FY21, GWA has implemented customised training strategies primarily to address the root cause to reduce manual handling injuries.

What’s next for GWA?

The Company expects “continued momentum in all its key markets, particularly in the Renovation & Replacement segment both for residential and commercial”.

However, in the same breath, it notes labour availability and global supply chain disruptions have “extended the timing of completions particularly for new detached projects from around 9-12 months to 12-15 months”.

As a result of these disturbances – which are actually tailwinds for the company – GWA expects its completions activity to remain strong into FY23.

GWA also says it remains on track to deliver annualised supply chain savings of $3 million from FY22 with $2 million achieved in the first half of FY22.

“For FY22, GWA currently expects Group Normalised EBIT in the second half will be higher than the first half, subject to any potential further impact of the general economic environment,” the company concluded.

GWA share price snapshot

The GWA share price has lost more than 31% over the past 12 months, sliding more than 7% year to date.

At its current share price, the company has a market capitalisation of around $676 million.

The post How’s that dividend? GWA (ASX:GWA) share price falls despite 17% payout bump appeared first on The Motley Fool Australia.

Should you invest $1,000 in GWA Group right now?

Before you consider GWA Group, 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 GWA Group 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 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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