Day: March 29, 2022

Analysts name 3 ASX 200 shares that could generate strong returns

Two women hold up their biceps in a show of strength.

Two women hold up their biceps in a show of strength.

If you’re interested in adding some S&P/ASX 200 Index (ASX: XJO) shares to your portfolio in April, then the three listed below could be worth considering.

These ASX 200 shares have been named as buys and tipped to generate strong returns for investors. Here’s what you need to know about them:

NextDC Ltd (ASX: NXT)

The first ASX 200 share to look at is NextDC. It is a leading data centre operator with a collection of world class centres across key capital city locations throughout Australia. The company is also aiming to grow its network with edge centres in regional areas and expand overseas. All in all, this appears to have positioned NextDC perfectly to capture the increasing demand for data centre capacity thanks to the structural shift to the cloud.

Citi is bullish on the company’s outlook. It has a buy rating and $14.55 price target on NextDC’s shares. This compares to the latest NextDC share price of $11.44.

SEEK Limited (ASX: SEK)

Another ASX 200 share to look at is this leading job listings company. It appears well-positioned for growth in the coming years thanks to its leadership position, pricing power, and exposure to Australia’s recovery from the pandemic.

The team at Morgan Stanley is positive on SEEK. Its analysts currently have an overweight rating and $36.00 price target on its shares. This compares to the most recent SEEK share price of $29.33.

TechnologyOne Ltd (ASX: TNE)

A final ASX 200 share to look at is enterprise software provider TechnologyOne. It is currently transitioning to become a software-as-a-service (SaaS) focused business and is delivering strong results. Pleasingly, management expects this to continue and is targeting annual recurring revenue (ARR) of over $500 million by FY 2026. This is almost double its current base ARR of $257.5 million.

The team at Bell Potter is a very positive on the company’s growth outlook. The broker has a buy rating and $15.00 price target on its shares at present. This compares to the latest TechnologyOne share price of $11.48.

The post Analysts name 3 ASX 200 shares that could generate strong returns 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 NEXTDC Limited and SEEK 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 has recommended SEEK 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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3 top ETFs for ASX investors in April

ETF in written in different colours with different colour arrows pointing to it.

ETF in written in different colours with different colour arrows pointing to it.

Are you looking for some exchange traded funds (ETFs) to add to your portfolio next month? If you are, it could be worth taking a closer look at the three ETFs listed below.

Here’s what you need to know about these top ETFs:

BetaShares Global Energy Companies ETF (ASX: FUEL)

The first ETF to look at for April is the BetaShares Global Energy Companies ETF. It provides investors with access to a number of the largest energy companies outside Australia. BetaShares notes that these are larger, more geographically diversified, and more vertically integrated than their Australian peers. Among its holdings are energy giants including BP, Chevron, ExxonMobil, and Royal Dutch Shell.

iShares S&P 500 ETF (ASX: IVV)

Another ETF for investors to consider in April is the iShares S&P 500 ETF. This popular ETF gives investors access to the top 500 listed U.S. companies. BlackRock, which operates iShares, believes this ETF is a good way for investors to diversify internationally. The fund manager also notes that it offers long-term growth opportunities for a portfolio. Among the companies included in the fund are Amazon, Apple, Disney, Facebook, JP Morgan, Johnson & Johnson, Microsoft, Tesla, and Visa.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A final ETF for investors to look at for next month is the VanEck Vectors Morningstar Wide Moat ETF. This Warren Buffett inspired ETF gives investors access to a group of companies with sustainable competitive advantages or moats. The fund is currently invested across almost 50 attractively priced shares boasting these qualities. This includes the likes of Alphabet, Altria, Boeing, Coca Cola, Kellogg Co, Walt Disney, and even Warren Buffet’s own Berkshire Hathaway. Given how successful Buffett’s style of investing has been over multiple decades, this ETF could be a top option for long term focused investors.

The post 3 top ETFs for ASX investors in April 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 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 Global Energy Companies ETF – Currency Hedged. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF and iShares Trust – iShares Core S&P 500 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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What’s the outlook for the CSL share price in April?

A doctor looks unsure, indicating share price uncertainty for ASX medical companiesA doctor looks unsure, indicating share price uncertainty for ASX medical companies

The CSL Ltd (ASX: CSL) share price may have suffered since early 2020, but can it recover in the near future?

CSL shares have dropped 21% since 21 February 2020, close to the onset of the COVID-19 pandemic. In today’s trade, the company’s shares climbed 1.43% to $265.60 apiece.

So what is the outlook for the CSL share price?

Where is the CSL share price heading?

Citi analysts have recently upgraded CSL to a buy with a $335 price target. That’s 27% higher than its current value. Citi’s price would take the share very close to its five year high of $336.40 on 21 February 2020. The broker is optimistic plasma collection improvements will have a positive impact on the company’s shares.

FNArena founder Rudi Filapek-Vandyck also predicts the CSL share price will rise again soon. The analyst believes CSL “will find its mojo again”. Filapek-Vandyck added:

I recently bought some extra shares in CSL. The business model was disrupted because of COVID… If I look forward to the next two to three years, I see an environment where CSL will again come to the fore.

Looking to the near future, CSL could also be one of the companies to benefit from onshore manufacturing of pharmaceuticals, announced in the lead up to the federal budget. My Foolish colleague Zach reported today Bloomberg’s Jackie Edwards believes this manufacturing push could put CSL in the spotlight. The federal budget will be delivered this evening at 7.30 pm.

JP Morgan analysts have also put an overweight rating on CSL, valuing the company at $295 per share. This is 11% more than the current share price.

CSL recently made the cut for a list of one of the greatest ASX listed companies of all time. QVG Capital included CSL in a list of its ASX “hall of famers”.

Share price snapshot

The CSL share price has dropped nearly 9% year to date while it is up a slim 0.08% in the past year.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has gained nearly 10% in the past 12 months.

CSL has a market capitalisation of around $128 billion based on its current share price.

The post What’s the outlook for the CSL share price in April? appeared first on The Motley Fool Australia.

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

Before you consider CSL, 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 CSL 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. owns and has recommended CSL Ltd. 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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Top broker gives its verdict on the Coles (ASX:COL) share price

Happy couple doing grocery shopping together.

Happy couple doing grocery shopping together.

The Coles Group Ltd (ASX: COL) share price has been a positive performer over the last 12 months.

Since this time last year, the supermarket giant’s shares are up 14%.

Can the Coles share price keep rising?

Unfortunately, one leading broker believes the Coles share price has peaked for the time being.

According to a note out of Goldman Sachs, its analysts have initiated coverage on the company’s shares with a neutral rating and $16.40 price target.

Based on the current Coles share price of $17.93, this implies potential downside of approximately 8.5% for investors over the next 12 months.

What did the broker say?

Goldman has been looking at the food & beverage (F&B) sector and given its verdict on the major players.

While it rates Endeavour Group Ltd (ASX: EDV) and Woolworths Group Ltd (ASX: WOW) as buys (here and here), it can only muster up a neutral rating for Coles due to its lagging digital and data capabilities and valuation.

Goldman said:

“Coles Group is the 2nd largest supermarket in Australia. We view Coles as being less advanced in digital and data capabilities than Woolworths. In the short term, we expect Coles to be more defensive in an inflationary environment and see it as more protected from global supply chain disruptions given higher local sourcing for fresh. We initiate on Coles group with a Neutral rating.”

In respect to its data capabilities, the broker fears that Coles’ lower quality consumer data assets could result in further market share gap.

It explained:

“COL’s primary sources of consumer data are its own sales transaction records and Flybuys loyalty program. Contrasting with WOW’s Everyday Rewards, Flybuys is ~8mn members vs Everyday Rewards [EDR] ~13mn members and while EDR is wholly owned by WOW, Flybuys is an independent JV, 50/50 owned with Wesfarmers. This implies that WOW is able to access a larger pool of consumer insights in EDR more freely, whereas the terms of COL’s access would need to be negotiated with Flybuys and Wesfarmers – i.e. they potentially may have less and more costly access.

The direct relationship with consumers also lies with Flybuys and not COL. We acknowledge that Flybuys does have a broader coverage of businesses including most recently Bunnings and Officeworks but these are shared on a grouped, attribution basis only (i.e. 3rd party data) where the exact impact on business remains to be proven. Net net, we expect an opening of market share leadership between WOW and COL, which we forecast to expand from 8.8pts in 2022 to 10.3pts by 2024.”

All in all, the broker believes investors should be buying Woolworths shares and waiting for a better entry point with the Coles share price.

The post Top broker gives its verdict on the Coles (ASX:COL) share price appeared first on The Motley Fool Australia.

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

Before you consider Coles, 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 Coles 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 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 owns and has recommended COLESGROUP DEF SET. 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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