Day: March 8, 2022

2 high quality ASX growth shares analysts believe have 20%+ upside

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

Looking for growth shares to buy? Well, here’s some good news! Listed below are two growth shares that have recently been named as buys with material upside potential.

Here’s what you need to know about them:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is Altium. It is an electronic design software provider behind the Altium 365 and Altium Designer platforms.

Altium also has a number of complementary businesses such as Nexus and Octopart which have large opportunities and are generating significant revenues.

All in all, this means Altium has a portfolio of businesses that have positioned it perfectly to profit from the increasing demand for electronic design software due to the rapidly growing Internet of Things (IoT) and AI markets.

Bell Potter is a fan of Altium and was pleased with its “strong” half year results last month. It currently has a buy rating and $38.75 price target on the company’s shares.

Pro Medicus Limited (ASX: PME)

Another ASX growth share that is highly rated is Pro Medicus. It provides industry-leading software that facilitates the clinical assessment of medical images.

The team at Morgans is positive on the company and was very impressed with its recent half year update. This was particularly the case with its margins, which surprised to the upside.

It commented: “While revenues were in-line with our forecasts, EBIT margins (~65%) was really the standout, with a 600bp improvement versus our expectation of a 100bps decline on the pcp, where we assumed the resumption of major marketing conferences and travel expenses would curb margin growth. We were wrong.”

Morgans also notes that the company’s sales pipeline continues to strengthen, which bodes well for its future growth and is expected to underpin further operating leverage over the long term.

In light of this positive outlook, it recently retained its add rating and lifted its price target on the company’s shares to $56.20.

The post 2 high quality ASX growth shares analysts believe have 20%+ upside 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 Altium and Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus 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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4 ASX shares we’re holding for both reopening and higher interest rates: expert

a close up picture of a hand holding four Ace cards - the aces of spades, diamonds, clubs and hearts.a close up picture of a hand holding four Ace cards - the aces of spades, diamonds, clubs and hearts.a close up picture of a hand holding four Ace cards - the aces of spades, diamonds, clubs and hearts.

A portfolio manager has shed light on reasons to hold selective ASX shares amid the COVID-19 reopening and rising interest rates.

The fundie is holding Aristocrat Leisure Limited (ASX: ALL), Corporate Travel Management (ASX: CTD), Cleanaway Waste Management Ltd (ASX: CWY), and Qube Holdings Ltd (ASX: QUB).

Let’s take a look at why this expert is interested in these shares.

Why are these ASX shares beneficial?

SG Hiscock High Conviction Fund portfolio manager Hamish Tadgell outlined why he favours certain “reopening trades” at this time. Speaking to the Australian Financial Review, Tadgell said:

We continue to favour selective reopening trades and higher cyclical exposure which not only stand to benefit as demand recovers from the pandemic but also as rates tighten.

Outlining his reasons for this outlook on specific shares, Tadgell said:

Aristocrat Leisure and Corporate Travel … have experienced COVID-19 headwinds, but [have] been able to emerge stronger through taking market share and actively participating in industry consolidation.

Aristocrat is an Australian gaming technology company operating in 90 countries with multiple product offerings including pokie machines and casino management systems.

Meantime, Corporate Travel Management is a travel company offering events, leisure, loyalty, and wholesale travel to the corporate sector.

Commenting on two other shares he would hold, Tadgell added:

Cleanaway and Qube Logistics are two other quality companies with market leadership, a strong competitive advantage, assets that [are] hard to replicate and should benefit as borders open and volumes in their respective sectors recover.

Cleanaway is a waste management company providing environmental solutions in Australia and the United Kingdom.

Meanwhile, Qube is a logistics company operating in 130 locations including Australia, New Zealand, Singapore, Malaysia, and Papua New Guinea.

The Aristocrat share price finished 1.65% higher on Tuesday, while Corporate Travel slid 2.48%. Cleanaway closed the session 0.37% in the green today and Qube dropped 1.99%.

Share price recap

Aristocrat shares have gained 6% in the past year, while Corporate Travel Management is 7% higher.

Cleanaway has had a solid past 12 months, climbing nearly 19% although Qube has dropped more than 1% over that time.

For perspective, the  S&P/ASX 200 Index (ASX: XJO) has returned 3.57% in the past year.

The post 4 ASX shares we’re holding for both reopening and higher interest rates: expert appeared first on The Motley Fool Australia.

Should you invest $1,000 in Aristocrat Leisure right now?

Before you consider Aristocrat Leisure, 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 Aristocrat Leisure 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 has recommended Corporate Travel Management 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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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) broke below 7,000 points once again as miners and energy shares lost their gusto. At the end of the session, the benchmark index finished 0.83% lower at 6,980.3 points.

Despite concerns of a material and energy supply shortage, companies operating in these sectors took a moment on the sidelines today as investors cashed in on the recent strength. Meanwhile, supermarket giants and healthcare shares added some green to the boards on Tuesday.

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, Meridian Energy Ltd (ASX: MEZ) was the biggest gainer today. Shares in the New Zealand renewable electricity generator jumped 6.43% after the company released a copy of its slides from a presentation to the New Zealand Shareholders’ Association. Find out more about Meridian Energy here.

The next biggest gaining ASX share today was Imugene Ltd (ASX: IMU). The clinical-stage immuno-oncology company pushed higher despite there being no new announcements. Shares in the company gained 4.44% while the broader market weakened. Uncover the latest Imugene details here.

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

ASX-listed company Share price Price change
Meridian Energy Ltd (ASX: MEZ) $4.80 6.43%
Imugene Ltd (ASX: IMU) $0.235 4.44%
Zimplats Holdings Ltd (ASX: ZIM) $29.37 3.89%
Summerset Group Holdings Ltd (ASX: SNZ) $11.40 3.64%
Johns Lyng Group Ltd (ASX: JLG) $7.98 3.64%
Woolworths Group Ltd (ASX: WOW) $35.74 3.36%
CSL Ltd (ASX: CSL) $256.65 2.80%
Wisetech Global Ltd (ASX: WTC) $45.36 2.39%
Resmed Inc (ASX: RMD) $33.70 1.94%
Coles Group Ltd (ASX: COL) $17.50 1.86%
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

More reading

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. owns and has recommended CSL Ltd. and WiseTech Global. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns and has recommended COLESGROUP DEF SET and WiseTech Global. 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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Lithium’s up 29%, but the AVZ Minerals (ASX:AVZ) share price is down. What gives?

Miner on his tablet next to a mine site.Miner on his tablet next to a mine site.Miner on his tablet next to a mine site.

Shares in AVZ Minerals Ltd (ASX:AVZ) tracked lower today and finished 7% in the red by the close of trade on Tuesday.

The AVZ share price walked lower today despite no market-sensitive information from the company or its constituents.

Although, the benchmark S&P/ASX 200 Index (ASX: XJO) also finished down 65 basis points alongside the S&P/ASX 300 Metals & Mining Index (ASX: XMM), itself trailing the market at a 3.37% loss today.

One important factor to consider is that AVZ was just added to the benchmark index on 4 March, meaning shares are now susceptible to buying and selling from large investment funds restricted to ASX 200 shares in their mandate.

With both major indices taking a hit today, it appears there was weakness across the board in Australian markets today.

What else could be at play?

Understandably, many investors might be confused as to why AVZ is faltering today as the price of lithium continues to set record highs.

The battery metal has climbed more than 29% in a month and is up more than 600% in the last single year. Recently, it surged again from November last year and has set continuous record highs to today.

Even more perplexing, is that when zooming out and scoping out a longer time frame, the AVZ share price and the price of lithium (and what the market expects to pay) track each other very closely.

The chart below shows AVZ versus the March 2022 lithium futures contract’s rolling return over the past 12 months, plus the corresponding changes.

TradingView Chart

However, over the past week or so, the relationship has soured and there appears to be more at play than just the correlation between the price of lithium and AVZ stock.

Stock markets around the world have taken a beating in the past few weeks amid the tension and conflict arising from the Russia-Ukraine situation in Europe.

In fact, across the board asset classes are absorbing losses and there isn’t much escape for investors in the form of a safe haven.

Raw commodities, such as gold, lithium and nickel (and not necessarily equities backing these) are just about the only asset group that is faring gains in 2022, with most other sectors and/or products down considerably.

Nickel spot basically doubled overnight amid supply fears from the conflict in Europe, for example.

It has soared 144% in the past 5 days while the iShares MSCI World Index Fund (NYSE: URTH), i.e. the ‘world stock market’ has dropped nearly 4%.

TradingView Chart

As seen on the chart below, benchmarks for all major stock indices around the world are crumbling in 2022.

Each of the London FTSE 100 Index (UKX), the S&P 500 Index (NYSE: SPX), Germany’s DAX Performance Index (GDAXI), the S&P/ASX 200 Index and Euro Stoxx 50 (SX5E) are down considerably this year to date and have diverged completely from the commodities sector.

Notably, each of these benchmarks is (or was, anyway) heavily weighted towards a tech bias.

TradingView Chart

However, the global commodities bucket has outstripped traditional equity markets and is soaring to new highs, as seen by Bloomberg Commodities Index (BCOM) in purple and the S&P/ASX 300 Metals & Mining performance above.

When looking at AVZ from a longer timeframe – the last 6 months to be exact – we see it has tracked the Australian mining basket closely and is trading above the benchmark index by a considerable amount.

As such, it appears the selloff in AVZ shares is a part of a wider selloff across the board in markets today. A homage to remaining diligent to a long-term perspective when investing.

TradingView Chart

AVZ share price snapshot

In the last 12 months, the AVZ share price has soared over 303% and another 4% this year to date. During the past month of trading, shares have eclipsed a gain of 6%.

The current levels that AVZ is trading at mark the highest prices in its history since first listing on the ASX back in 2007.

The post Lithium’s up 29%, but the AVZ Minerals (ASX:AVZ) share price is down. What gives? appeared first on The Motley Fool Australia.

Should you invest $1,000 in AVZ Minerals right now?

Before you consider AVZ Minerals, 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 AVZ Minerals 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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