Day: March 10, 2022

3 excellent ASX growth shares analysts believe have huge upside potential

Concept image of a businessman riding a bull on an upwards arrow.

Concept image of a businessman riding a bull on an upwards arrow.Concept image of a businessman riding a bull on an upwards arrow.

If you have room for some new portfolio additions, then it could be worth considering the three ASX growth shares listed below.

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

Allkem Ltd (ASX: AKE)

The first ASX growth share to consider is Allkem. It is a top five global lithium miner that is benefiting greatly from sky high lithium prices thanks to its Mt Cattlin and Olaroz operations. In addition, the company has a collection of projects that could come online in the near future and support strong production growth in the coming years. It is for this reason that Allkem is the top lithium pick for analysts at Morgans. The broker currently has an add rating and $14.83 price target on its shares. The Allkem share price ended the day at $10.09.

Lovisa Holdings Limited (ASX: LOV)

Another ASX growth share to look at is Lovisa. It is a fast-fashion jewellery retailer with a growing global store network. Lovisa is another company that Morgans is positive on. Its analysts rate the retailer highly thanks to its significant expansion potential and highly experienced management team leading the charge. All in all, the broker believes Lovisa has the potential to be one of the biggest success stories in Australian retail. And while it accepts that investment will be needed to expand its network in the US and Europe and to take the brand into new markets, it believes the returns could be “stellar.” Morgans has an add rating and $24.00 price target on its shares. The Lovisa share price is currently fetching $18.64.

Xero Limited (ASX: XRO)

A final ASX growth share to consider buying is Xero. It is a leading cloud-based business and accounting software provider. Xero’s successful evolution into a full service small business solution has led to millions of small to medium sized businesses globally subscribing and running their businesses through its platform. This has underpinned strong revenue and profit growth in recent years and, pleasingly, the team at Goldman Sachs expects this trend to continue for a long time to come. This is thanks to its global expansion, the ongoing shift to cloud solutions, and its burgeoning app ecosystem. Goldman Sachs has a buy rating and $135.00 price target on the company’s shares. This compares to the latest Xero share price of $98.56.

The post 3 excellent ASX growth shares analysts believe have huge upside 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 owns Allkem Limited. 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 Lovisa Holdings 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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Rio Tinto (ASX:RIO) is cutting all ties with Russia. What does this mean for the mining giant?

Two miners standing together.Two miners standing together.Two miners standing together.

A message from our CIO, Scott Phillips:

“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So, we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.” 

————————————–

Rio Tinto Limited (ASX: RIO) will be terminating all commercial ties with Russia amid the Ukraine invasion.

The Rio Tinto share price dropped 7.73% today to close at $110.61. For comparison, the S&P/ASX 200 Index (ASX: XJO) climbed 1.1% today.

So how will this decision impact Rio Tinto?

Russia boycotted

Rio Tinto confirmed it is cutting ties with Russia, Reuters reported. In an email statement, a company spokesperson said: “Rio Tinto is in the process of terminating all commercial relationships it has with any Russian business.”

The decision has sparked speculation about Rio Tinto’s Queensland Alumina Limited refinery, based in Gladstone. Russian company Rusal has a 20% stake in this business.

Sources told the Sydney Morning Herald the joint venture has been placed “under immediate review”. However, the publication reported Rio may need to buy out Rusal’s stake in this venture.

Rusal is Russia’s largest aluminum producer. An expert predicted Rio’s move could tighten aluminum supply. In a Bloomberg article cited by Yahoo Finance, mining analyst at Shaw and Partners Peter O’Connor said:

Rio’s move could keep things tight in the aluminum market until trade flows can adjust.

Rio is said to not have any operational assets or employees in Russia or Ukraine. The company joins other giants including Shell PLC (NYSE: SHEL), BP PLC (NYSE: BP), and Exxon Mobil Corp (NYSE: XOM) in pulling out of Russia.

Rio Tinto share price snapshot

As my Foolish colleague Aaron reported earlier, Rio Tinto shares were trading ex-dividend today. Anyone who buys shares from today will miss out on the dividend, hence the share price fall.

The Rio Tinto share price has leapt 10% this year to date but has fallen 3% over the past 12 months.

In the past month, Rio Tinto shares have slipped by 5%, while they are down 10% over the past week.

Rio has a market capitalisation of about $41 billion based on its current share price.

The post Rio Tinto (ASX:RIO) is cutting all ties with Russia. What does this mean for the mining giant? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Rio Tinto right now?

Before you consider Rio Tinto, 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 Rio Tinto 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 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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Why was everyone talking about the Telstra (ASX:TLS) share price today?

person on old-fashion telephone, surprised person

person on old-fashion telephone, surprised personperson on old-fashion telephone, surprised person

The Telstra Corporation Ltd (ASX: TLS) share price was one of the more interesting performers in the ASX today. As of market close, the telco was down by 1.02% at $3.88 a share. That’s after Telstra opened at $3.94 this morning. In stark contrast, the S&P/ASX 200 Index (ASX: XJO) enjoyed a robust day of gains today. The ASX 200 rose by a pleasing 1.1% at over 7,100 points. 

So what went on with Telstra shares?

Well, one possible cause might be the news that the telco is facing a class action. As my Fool colleague Tony covered today, the company is facing legal action from a former employee. Former staffer Jodi Wruck has reportedly filed a case in the Federal Court against Telstra after she was fired in December following a refusal to get a COVID-19 vaccine, as per the company’s vaccination policy. Wruck has also claimed that “at least seven” staff members have signed on as plaintiffs, which is the legal minimum to be classified as a class action. 

Telstra told the Motley Fool that “state and territory public health orders also required those performing essential telco work to be vaccinated”.

It’s unclear if this development did impact the Telstra share price today, but it is possible.

Telstra share price snapshot

Telstra shares have had a pretty miserly time of it over the year so far. In 2022, Telstra is still down by a notable 8.06% as it currently stands. It’s also down by close to 10% from the 52-week high of $4.31 per share share that we saw back in January. However, zooming out, the picture looks a lot brighter. Telstra remains up close to 27% over the past 12 months, and up almost 45% since October 2020.

At the current Telstra share price, this ASX 200 telco has a market capitalisation of $45.58 billion, with a dividend yield of 4.12%.

The post Why was everyone talking about the Telstra (ASX:TLS) share price today? 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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Motley Fool contributor Sebastian Bowen owns Telstra Corporation 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 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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Why has the uranium rally got this ASX share blasting 22% higher in 2 days?

A man flies into the sky over a city building-scape with a rocket jet pack sketched onto his back.A man flies into the sky over a city building-scape with a rocket jet pack sketched onto his back.A man flies into the sky over a city building-scape with a rocket jet pack sketched onto his back.

The Paladin Energy Ltd (ASX: PDN) share price surged 11% into the green today to close at 85.5 cents.

That marks a 22.14% jump in the past two days as uranium shares such as Paladin benefit from record-high uranium prices spurred on by a number of macro-undertones.

Uranium supply shock sends Paladin share price north

Uranium futures rallied hard in late February from a four-month low of US$44 per pound stretching up to US$54 per pound at the time of writing.

That’s a 10-year high for the chemical element that supplies energy for hundreds of thousands of individuals and companies around the world.

European conflict has sent uranium prices in the elevator as Russia responded to US-imposed sanctions on oil imports by placing a ban on exports of raw materials overnight, according to Trading Economics.

Some experts even believe uranium could reach US$100 a pound, as Russia accounts for roughly 10% of global exports for the metal.

The supply shock has market pundits nervous and has countries that use uranium for energy scrambling to try and find other means of energy production to make up the shortfall.

“The US nuclear energy sector produces 20% of the country’s electricity, and relies on Russia for 16% of its imports,” according to Trading Economics.

As Paladin’s share price closely traces the path of uranium with just a minor tracking error (shown below), investors were sure to be piling into the company today.

TradingView Chart

What else is weighing in?

Additionally, skyrocketing commodity markets could be impacting the Paladin share price today.

“…Skyrocketing oil prices prompted nations to shift to alternative energy sources,” Trading Economics also said, suggesting the jump is impacting demand–supply curves.

As a result of tension being wound at both ends, uranium futures have climbed more than 95% in the past year and are up 24% in the past month after staying on trend today.

In fact, the Bloomberg Commodities Index (BCOM), a proxy to gauge the strength of the overall sector, has soared to 10-year highs as well just recently.

It remains to be seen what will happen with the flow of various commodities from this trade battle. Regardless, uranium players like Paladin are on the receiving end of some serious capital gains.

The Paladin share price has spiked hard this week and is now up 110% for the past year. However, it is down almost 3% this year to date.

The post Why has the uranium rally got this ASX share blasting 22% higher in 2 days? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Paladin Energy right now?

Before you consider Paladin Energy, 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 Paladin Energy 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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