Day: March 26, 2022

3 ASX healthcare shares rated as buys by a leading broker

A happy doctor in a white coat dancing due to his excitement over the EBOS acquisition

A happy doctor in a white coat dancing due to his excitement over the EBOS acquisition

If you’re looking for exposure to the healthcare sector, then you may want to check out the three buy-rated shares listed below.

Here’s why the team at Morgans rates them as buys:

Cochlear Limited (ASX: COH)

The first healthcare share to look at is Cochlear. Morgans is a fan of this hearing solutions company due to its belief that its earnings profile is improving as COVID headwinds ease. Its analysts recently upgraded Cochlear’s shares to an add rating with a $233.20 price target.

It said: “Cochlear maintains a dominant position in the implantable hearing solutions segment. While we continue to believe a full recovery from Covid-based disruptions still has time to play out, improving demand and strong pipeline, coupled with management’s increasing confidence, is all suggestive of an improving earnings profile.”

Healius Ltd (ASX: HLS)

Another healthcare share to look at is Healius. Morgans likes this healthcare provider due to its attractive valuation, ongoing demand for PCR testing, and a post-COVID rebound in its base business. The broker has an add rating and $5.26 price target on its shares.

The broker explained: “We continue to believe HLS is attractively valued and well placed, benefiting from the likely continuance of COVID PCR testing (at some level) and from the inevitable rebound in demand from a backlog in diagnosis and surgery.”

ResMed Inc. (ASX: RMD)

This sleep treatment focused medical device company’s shares could be in the buy zone. Morgans currently has an add rating and $40.46 price target on its shares. The broker likes ResMed due to its long term growth potential.

It commented: “While we believe the next few quarters will likely be volatile, as Covid-related demand for ventilators continues to slow and core sleep apnoea volumes gradually lift, nothing changes our medium/longer term view that the company remains well-placed as it builds a unique, patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.”

The post 3 ASX healthcare shares rated as buys by a leading broker appeared first on The Motley Fool Australia.

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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 Cochlear Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has recommended Cochlear Ltd. and 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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Here are 2 top ETFs for ASX investors next week

ETF written in gold with dollar signs on coin.

ETF written in gold with dollar signs on coin.

Exchange traded funds (ETFs) continue to grow in popularity. And it isn’t hard to see why.

ETFs give investors easy access to a large and diverse number of different shares that they wouldn’t ordinarily have access to. This can be a great way to invest diversely on a limited budget or bolster an already sizeable portfolio.

With that in mind, listed below are two ETFs that could be worth looking at next week:

BetaShares Crypto Innovators ETF (ASX: CRYP)

The first ETF to look at is the BetaShares Crypto Innovators ETF. It could be a good option for investors that are interested in investing in the cryptocurrency industry but aren’t too keen on directly owning coins.

BetaShares notes that the ETF is designed to capture all sides of the crypto ecosystem. This is achieved by providing exposure to pure-play crypto companies, companies with balance sheets that hold at least 75% in crypto-assets, and diversified companies with crypto-focused business lines.

Among its holdings you’ll find Coinbase, PayPal, Riot Blockchain, Robinhood, Silvergate, and Afterpay’s new owner, Block. Given the nature of the industry, an investment in this ETF is not likely to be one for the fainthearted.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF for investors to look at next week is the Vanguard MSCI Index International Shares ETF.

It is one of the most popular ETFs on the Australian share market and it isn’t surprising that this is the case. This is because the Vanguard MSCI Index International Shares ETF provides investors with exposure to over 1,500 of the world’s largest listed companies through just a single investment.

The types of companies you’ll be owning a slice of with this ETF include giants such as Apple, Johnson & Johnson, Nestle, Procter & Gamble, and Visa.

The post Here are 2 top ETFs for ASX investors next week 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 Betashares Crypto Innovators ETF and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares 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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3 ASX growth shares down more than 50% in a year

shocked man with hands over his face with a declining graph in background representing falling CleanSpace share price

shocked man with hands over his face with a declining graph in background representing falling CleanSpace share price

Any ASX investor that has been paying attention to the markets in 2022 would know that it’s been a bumpy ride for most ASX shares. Some shares have weathered the storms better than others. But there remain some companies that have seen substantial haircuts to their valuations over both 2022, and, by extension, the past 12 months. Some of the hardest-hit shares have been those which investors typically categorise as ‘growth shares‘. 

ASX growth shares are often smaller, faster-growing companies that perhaps trade with high price-to-earnings (P/E) multiples. Or perhaps are even not profitable yet. Investors tend to get excited about these types of shares when the sun is shining, but quickly abandon them for safer harbours when storm clouds appear on the proverbial investing horizon. 

So let’s look at three such shares that remain down more than 50% over the past year. 

3 ASX growth shares down more than 50% in a year

Zip Co Ltd (ASX: Z1P)

Zip was promoted to the ASX’s largest buy now, pay later (BNPL) company early this year when former ASX growth share Afterpay was swallowed by Block Inc (ASX: SQ2). But if investors thought that this promotion would bode well for the Zip share price, they were to be very disappointed.

Zip has had a dreadful 12 months, whatever way you spin it. The BNPL company remains down almost 65% in 2022 alone, and by a depressing 80% or so over the past 12 months. That’s despite Zip managing to report some very high growth numbers in its most recent earnings report, despite a bottom-line loss.

Appen Ltd (ASX: APX)

Appen is another ASX growth share that has had a rough trot in recent months. This annotated dataset company is down a nasty 37.3% in 2022 thus far, and an even nastier 60.1% over the past 12 months. Appen was a company once venerated by ASX growth investors, even making the cut as a WAAAX share.                  

Its future-facing business model got investors hot under the collar a few years ago, and Appen saw its share price explode by 260% between August 2018 and August 2020. However, the sentiment has significantly cooled since then as Appen failed to meet investors’ growth expectations. Its last earnings report wasn’t well received by investors when the company reported a near-20% fall in after-tax profits. 

Kogan.com Ltd (ASX: KGN)

E-commerce share Kogan rounds out our ASX growth shares list today. Like the other two shares on this list, the Kogan share price has been decimated over the past 12 months. At the latest pricing, Kogan has lost more than 35% in 2022 thus far. As well as a sobering 58.2% over the past year. Kogan was in many ways a ‘pandemic winner’. The lockdowns of 2020 and 2021 saw huge boosts to Kogan’s business, which saw higher customer numbers and revenues. 

However, as the country and world has slowly returned to what you could call normal, Kogan saw its fortunes cool. Its most recent earnings report saw a slight increase in revenues and customers. But large falls in adjusted profits and earnings. Investors haven’t taken kindly to this, and have continued to keep the Kogan share price depressed. 

The post 3 ASX growth shares down more than 50% in a year 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 Sebastian Bowen owns Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Appen Ltd, Block, Inc., Kogan.com ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Block, Inc. and Kogan.com 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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Why analysts rate Westpac and this ASX dividend share as buys

A male ASX investor on the street wearing a grey suit clenches his fist and yells yes after seeing on his ipad that the DGL share price is going up again today

A male ASX investor on the street wearing a grey suit clenches his fist and yells yes after seeing on his ipad that the DGL share price is going up again today

If you’re interested in bolstering your income portfolio with some new dividend shares, then the two listed below could be worth considering next week.

Here’s what analysts are saying about these dividend shares right now:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend share to consider is baby products retailer, Baby Bunting.

Over the last decade, the company has carved out a leadership position in a niche but lucrative market with its collection of 60 national superstores across Australia.

But while this is a large number of stores, the team at Citi sees scope for its network to increase materially in the coming years.

Citi commented: “We reiterate our Buy rating and see the company having a range of multi-year growth strategies including rollout (target of 110+ stores, with 68 expected by end of FY22e), exclusive/private label growth and supply chain efficiencies.”

The broker currently has a buy rating and $6.11 price target on its shares. As for dividends, Citi has pencilled in fully franked dividends per share of 16 cents in FY 2022 and 20 cents in FY 2023. Based on the current Baby Bunting share price of $4.86, this will mean yields of 3.3% and 4.1%, respectively.

Westpac Banking Corp (ASX: WBC)

Another dividend share that is highly rated is Australia’s oldest bank, Westpac.

It could be a quality option for investors that don’t have exposure to the banking sector. This is due to its strong market position and attractive valuation in comparison to the rest of the big four.

Morgans remains a big fan of the banking giant despite the margin pressures it has been facing. It also believes the bank can deliver on its bold cost cutting targets, which would bode well for its earnings in the coming years.

Its analysts commented: “WBC is our preferred major bank. We believe WBC offers the most compelling valuation of the major banks. In terms of quality of overall risk profile, we believe WBC is a close second to CBA. On credit risk, we believe WBC is positioned relatively defensively due to its loan book being more skewed to Australian home lending.”

Morgans has an add rating and $29.50 price target on the bank’s shares. As for dividends, the broker has pencilled in fully franked dividends per share of $1.19 in FY 2022 and $1.60 in FY 2023. Based on the latest Westpac share price of $23.75, this will mean yields of 5% and 6.7%, respectively.

The post Why analysts rate Westpac and this ASX dividend share as buys 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 James Mickleboro owns Westpac Banking Corporation. 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 Baby Bunting 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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