Day: 16 May 2022

The two ASX dividend shares we’re talking about in this article are companies that have grown their dividends for multiple years in a row.

A dividend is not guaranteed, but it can be useful to know what a business has been doing with its dividend in previous years.

Here are two businesses in defensive sectors that have decent starting dividend yields and have been growing the dividend.

Sonic Healthcare Limited (ASX: SHL)

Sonic Healthcare is a large pathology business with sizeable operations in Australia, the United States and Europe. Germany is one of the biggest profit generators in Europe for the ASX dividend share. The company also has a growing presence in radiology.

It has increased its dividend every year for approximately a decade. Indeed, the board has a ‘progressive dividend’ policy.

In the last result, the FY22 half-year result, Sonic Healthcare grew its interim dividend by a further 11% to 40 cents per share.

The company is using the income generated from COVID-19 testing to make acquisitions to boost the scale of the business.

But it’s not as though COVID-19 testing has finished. Sonic is expecting routine COVID testing, screening programs, variant testing, whole-genome sequencing, and antibody tests to continue.

For example, on 15 May 2022 Victoria reported that 17,397 PCR tests saw 2,968 positive cases. New South Wales reported a total of 29,633 PCR tests. However, not all of these are going through the ASX dividend share of course.

At the current Sonic Healthcare share price, including franking credits, the company has a grossed-up dividend yield of approximately 3.5%.

Bapcor Ltd (ASX: BAP)

Bapcor is an auto parts company that generates earnings through a wide number of businesses.

Its trade businesses include Burson Auto Parts, Precision Automotive Equipment and BNT. Bapcor has a number of specialist wholesale businesses including AAD, Bearing Wholesalers, Baxters, MTQ, Truckline and WANO. Then it has retailers such as Autobarn and Autopro. Bapcor’s service businesses include Midas, ABS, Shock Shop and Battery Town.

Bapcor has grown its dividend for the last several years since listing. Despite all of the COVID-19 impacts, the ASX dividend share has kept giving bigger shareholder payouts.

In FY20, the ASX share grew the annual dividend by 2.9% to 17.5 cents per share. Then, in FY21, Bapcor increased the full-year dividend by 14.3% to 20 cents per share. In the FY22 half-year result, the interim dividend was increased by another 11.1% to 10 cents per share.

The most recent result, for the six months to 31 December 2021, was affected by lockdowns. However, the second quarter saw a material improvement as COVID restrictions eased, according to Bapcor.

The company has long-term targets to add hundreds of locations to its Australian network. It is also working on becoming more efficient, which could lead to better profit margins. The ASX dividend share also wants to grow in Asia through its own Burson network as well as the investment in Tye Soon.

Bapcor has a grossed-up dividend yield of 4.8% at the current Bapcor share price.

The post 2 strong ASX dividend shares hiding in plain sight appeared first on The Motley Fool Australia.

More reading

• Broker names 3 more ‘champion’ ASX 200 shares to buy and hold
• Why is the Bapcor share price sinking on Tuesday?
• 2 ASX 200 blue chip shares to buy in May: Analysts

Motley Fool contributor Tristan Harrison 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 recommended Bapcor and Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Goodman Group (ASX: GMG) share price is on the move on Monday morning.

At the time of writing, the industrial property company’s shares are up over 3% to $20.35.

Why is the Goodman share price charging higher?

Investors have been bidding the Goodman share price higher on Monday for a couple of reasons.

The first is a rebound on the ASX 200 following a strong night of trade on Wall Street on Friday. This has seen the local market open meaningfully higher this morning.

Also giving the Goodman share price a boost today was the release of the company’s third quarter trading update.

According to the release, the company has maintained a strong operating performance in the third quarter. Tight supply and demand continue to support leasing across its portfolio and developments, with high occupancy in its markets.

Goodman highlights that its customers continue to intensify warehousing in urban locations and increase automation and technology to optimise delivery and improve supply chain efficiency.

All in all, this has underpinned a 3.7% increase in like-for-like net property income and a 98.7% occupancy rate.

At the end of the period, Goodman had assets under management of $68.7 billion and work in progress of $13.4 billion across 89 projects.

Guidance upgrade

Perhaps the biggest boost to the Goodman share price has come from management’s guidance for FY 2022.

Goodman has upgraded its guidance again and now expects to deliver earnings per share growth of 23% in FY 2022. This is up from its previously upgraded guidance of 20% growth. It also revealed that it expects to pay a 30 cents per share distribution this year.

Goodman’s CEO, Greg Goodman, commented:

Goodman has had another strong quarter with our operating results reflecting the highly targeted location of our portfolio. This has continued to produce high occupancy, cashflows, and development activity.

The business environment is changing, with increased interest rates, inflation, geopolitical risks and the ongoing impacts of the pandemic, however, the long-term structural drivers of demand have not changed.

The post Goodman share price charges higher on Q3 update and guidance upgrade appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Why I would invest $10,000 into these ASX 200 shares right now
• Goodman share price charges higher following bullish broker note
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• Broker names 3 more ‘champion’ ASX 200 shares to buy and hold

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 Scott Phillips.

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The market may be pushing higher today but the same cannot be said for the Step One Clothing Ltd (ASX: STP) share price.

The underwear retailer’s shares have returned from a trading halt and crashed 54% to a new low of 22 cents.

This means the Step One share price is now trading 85% lower than its November IPO listing price of $1.53.

Why is the Step One share price?

Investors have been selling down the Step One share price on Monday following the release of a trading update out of the retailer.

According to the release, the company’s expansion into the UK, US, and women’s markets hasn’t been going to plan. As a result, it expects its revenue and earnings to fall short of guidance in FY 2022.

What’s going on?

Management advised that US revenue has occurred at a lower rate than expected, as it works to establish its brand in a large and diverse region. This has resulted in higher customer acquisition costs, which is expected to lead to its US operations recording a loss of at least $3 million in FY 2022.

Over in the UK, its revenue has not grown at the rate expected. It notes that this is due to tougher than anticipated recent trading conditions and softer consumer confidence.

Bad news comes in threes, it seems. The release also advises that after a strong start to life, demand for the Women’s range has softened. It was fully restocked in mid-April but has not maintained the level of daily sales initially experienced in the months immediately following its launch.

FY 2022 guidance downgraded

The sum of the above, is that management now expects revenue growth of 15% to 20% in FY 2022. This is down from its previous guidance of 21% to 25%.

However, things are much worse for its earnings, which explains the weakness in the Step One share price today.

Step One’s earnings before interest, tax, depreciation and amortisation (EBITDA) is now expected to be $7 million to $8.5 million. This is down from its prior guidance of $15 million.

This means that its second half EBITDA will be a loss of $0.4 million to an operating profit of $1 million, which is down materially from its first half EBITDA of $7.4 million.

Management commentary

Judging by the Step One share price reaction today, it appears as though the market is extremely doubtful that the company’s expansion will succeed.

One person that remains optimistic, though, is Step One’s Founder and CEO, Greg Taylor. He commented:

I am disappointed to inform you of the impact of the headwinds we are currently facing in our international expansion. These challenges are by no means insurmountable, and I am completely focused on solving the issues we are facing to deliver an exceptional product to customers around the world.

We had a track record of delivering in international markets, but we are now a much more substantial business and our focus is on building a strong platform, with the right infrastructure to support sustainable international growth. This will ensure that Step One is well-positioned to rebound strongly as global macro-economic disruption eases.

We’ve continued to make operational progress, focusing on a tailored marketing strategy in each region, driving engagement with influencers and athletes in the UK and USA. This will continue into FY23 as we build momentum around the brand internationally. We’re now selling some of our core products on Amazon in our key markets to drive our brand visibility and support customer acquisition.

The post Why is the Step One share price crashing 54% to a new low? appeared first on The Motley Fool Australia.

More reading

• 2 ASX growth shares that experts love right now

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 Scott Phillips.

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If you’re in the market for some ASX 200 dividend shares to combat rising inflation, then look no further.

Listed below are two highly rated dividend shares that analysts have recently rated as buys with yields greater than 6%.

Here’s what you need to know about them:

Bank of Queensland Limited (ASX: BOQ)

The first high yield ASX dividend share for investors to look at is Bank of Queensland.

It is one of the biggest non-big four banks in Australia and responsible for the eponymous Bank of Queensland brand and the recently acquired ME Bank brand.

Analysts at Morgans believe the bank is a great option for investors right now and “see exceptional value” in its shares. This is due to its attractive valuation, transformation program, its above-system growth, and cost synergies from the ME Bank acquisition.

Morgans has an add rating and $11.00 price target on its shares.

The broker also expects attractive dividends. Morgans is forecasting fully franked dividends per share of 49 cents in FY 2022 and then 54 cents per share in FY 2023. Based on the current Bank of Queensland share price of $7.44, this will mean yields of 6.6% and 7.25%, respectively.

South32 Ltd (ASX: S32)

Another ASX 200 dividend share that is expected to provide investors with big dividends is South32.

This is thanks to the mining giant’s exposure to a number of commodities which are commanding high prices, putting South32 in a position to generate strong free cash flow in the coming years.

Goldman Sachs is very positive on South32 and expects its strong free cash flow generation to underpin fully franked dividends per share of 27.5 US cents in FY 2022 and 47.3 US cents in FY 2023.

Based on the current South32 share price of $4.41 and the latest exchange rates, this will mean very attractive yields of 9.2% and 15.4%, respectively.

Goldman also sees plenty of upside for its shares. It has a conviction buy rating and $5.70 price target on the miner’s shares.

The post 2 high-yield ASX 200 dividend shares to fight inflation according to brokers appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 dividend shares to buy according to a top broker
• Here are the 3 most heavily traded ASX 200 shares on Friday
• How has the Bank of Queensland share price travelled since the company’s half-year results?
• Why did the South32 share price beat the other ASX 200 miners today?
• Broker says South32 share price is great value and one of the ‘best’ options for investors

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 Scott Phillips.

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Plenty of ASX dividend shares have seen share price declines in recent times. A lower share price can have the effect of boosting the potential dividend yield on offer from that business.

Of course, another potential benefit from a lower share price is being able to invest in the ASX share at better value as well.

With that in mind, here are two ASX dividend shares that I’d buy for income with $1,000:

Brickworks Limited (ASX: BKW)

Brickworks is a business with a significant presence in the property world.

The company produces a variety of different building products including bricks and pavers, masonry and stone, roofing, specialised building products, precast, cement, and timber battens. Austral Bricks, Austral Masonry, Bristle Roofing, and Austral Precast are some of the company’s brands.

The ASX dividend share boasts that its normal dividend has been maintained or increased every year since 1976. It has also grown its dividend every year for nine years in a row.

While part of the cash flow to fund its dividend comes from its investments division, Brickworks is particularly focused on the long-term growth of its industrial property trust in which it owns 50%, alongside Goodman Group (ASX: GMG).

Industrial properties are built on excess Brickworks land. Industrial real estate valuations are increasing in response to tailwinds such as online shopping. The demand for logistics properties is leading the trust to step up its building projects. As developments are completed, rental income keeps growing.

Brickworks explained the opportunity for property construction over the next few years:

There is a total of 221,100 square metres of lease pre-commitments already secured across the property trust. In addition, a further 176,400 square metres is available for development at the existing estates. Based on current demand, we expect these estates to be fully built out within three years. This will result in additional gross rent of around $60 million and leased asset value of $1.5 billion, taking total leased assets to around $4.5 billion.

I think the property trust can continue to add useful value for Brickworks, help grow its cash flow, and assist with dividend growth. At the current Brickworks share price, it has a grossed-up dividend yield of 4%.

Wesfarmers Ltd (ASX: WES)

Wesfarmers is one of the largest S&P/ASX 200 Index (ASX: XJO) shares and it could also be one of the more compelling ASX dividend shares.

The company operates a number of leading retailers including Bunnings, Kmart, and Officeworks. It also has a presence in other areas such as a pure e-commerce business called Catch, various industrial businesses, and a segment called WesCEF which is for chemicals, energy, and fertilisers.

Wesfarmers has the flexibility to invest in different industries. It is currently working on the lithium project Mt Holland. The company also just completed the acquisition of Australian Pharmaceutical Industries which will be the start of a new health and beauty segment.

I think the diversification provides Wesfarmers with the ability to generate more consistent cash flow through economic cycles and, therefore, potentially pay a somewhat defensive dividend.

Wesfarmers balances its profit generation, balance sheet, potential acquisition opportunities, and rewarding shareholders when deciding on its dividend each year.

The trailing grossed-up dividend yield of Wesfarmers is 4.9%, after a 17% decline of the Wesfarmers share price in 2022 to date.

The post 2 ASX dividend shares I’d buy with $1,000 appeared first on The Motley Fool Australia.

More reading

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• 4 ASX shares of the most trusted brands in Australia
• Where next for the Wesfarmers share price?
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks. The Motley Fool Australia has positions in and has recommended Brickworks and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Experts have identified two ASX shares that look good value and have rated them as buys.

Plenty of businesses in the retail sector have relatively low price/earnings (p/e) ratios. They can also offer larger dividend yields. However, sometimes downturns can lead to variable demand for products.

These are two ASX shares that are currently rated as opportunities.

Accent Group Ltd (ASX: AX1)

Accent is a retailer of multiple shoe brands. It owns some brands and it acts as the distributor for others.

Some of the brands are: CAT, Dr Martens, Glue Store, Hoka, Hype, Platypus, Skechers, Stylerunner, The Athlete’s Foot, Trybe, Timberland and Vans.

Morgan Stanley is one of the brokers that rates Accent as a buy right now. The broker has a price target of $2.70. That’s a possible rise of 90% over the next year. Morgan Stanley thinks the ASX share can benefit from life returning to normal after COVID-19 as well as the ongoing opening of new stores.

Since the start of 2022, the Accent share price has fallen around 40%. That’s despite a recent trading update that noted a higher profit margin.

The company pointed out it’s expecting to open 140 stores in FY22. Meanwhile, it will close stores where “sustainable renewal terms” cannot be achieved. Accent is focusing on growing some of its brands and making choices that improve the return on investment (ROI) in businesses and brands.

Sales are improving compared to the start of the second half of FY22, but were still subdued compared to expectations. However, Accent has continued to focus on a ‘full price, full margin’ sales strategy. This strategy has improved the gross profit margin ahead of expectations and last year. It will be interesting to see how this will play out for the ASX retail share.

Morgan Stanley thinks that the Accent share price is now valued at under 10x FY23’s estimated earnings.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the largest ASX retail shares. It sells a variety of electronics and home appliances such as phones, laptops, fridges and TVs.

One of the brokers that currently rates the ASX share as a buy is Macquarie. It has a price target of $57.80 on the business, implying a potential rise of around 20% over the next 12 months.

Despite seeing elevated sales since the start of COVID-19, JB Hi-Fi continues to experience demand and sales growth.

In a recent sales update for the three months to 31 March 2022, the company said that JB Hi-Fi Australia sales rose 11.9%, JB Hi-Fi New Zealand sales increased 4.8% and The Good Guys sales rose 5.5%. It also said that sales momentum has continued into the fourth quarter of FY22.

Based on the forecast FY23 numbers, Macquarie thinks the JB Hi-Fi share price is valued at 13x FY23’s estimated earnings with a projected grossed-up dividend yield of 7.25%.

The post 2 cheap ASX shares to buy right now: experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison 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 recommended Accent Group and Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Brambles Limited (ASX: BXB) share price is in focus after the company confirmed it’s in talks that could lead to a takeover bid.

The S&P/ASX 200 Index (ASX: XJO) pallets and containers manufacturer was recently rumoured to be gearing up to receive an acquisition offer valued at more than $20 billion.

For context, Brambles has a market capitalisation of around $15 billion.  

The Brambles share price is $10.43 as of Friday’s close.

Here are all the details on the multi-billion dollar takeover talks.

Brambles confirms takeover talks

The Brambles share price could be in for a big day on the ASX after the company responded to rumours claiming it’s on the radar of private equity juggernaut CVC Partners.

The ASX 200 company confirmed it’s been approached by the firm over a potential takeover bid this morning. The ASX 200 pallet maker hasn’t received any proposal yet.

Brambles also noted there’s still no guarantee an offer will be tabled.

Discussions between the pair are focused on securing a bid that would convince Brambles to allow CVC due diligence, the Australian Financial Review reports.

That could reportedly result in an offer valuing Brambles at more than $20 billion, including debt.

Brambles said it’s still working towards its ‘Shaping our Future’ plan, as well as other strategies to bolster shareholder value amid the takeover talks.

Its latest quarterly results saw the company reporting a 7% increase in sales revenues – coming in at around US$4 billion.

It also upped its financial year 2022 guidance. Brambles is expecting to report sales growth of between 8% and 9% for the 12 months ended 30 June 2022.

Brambles share price snapshot

The Brambles share price is outperforming the ASX 200 in 2022.

The company’s shares have slipped nearly 2% year to date while the index has tumbled close to 7%.

Over the last 12 months, Brambles’ stock has slumped around 2.6% while the ASX 200 has traded relatively flat.

The post Brambles share price on watch as takeover talks confirmed appeared first on The Motley Fool Australia.

More reading

• Broker names 3 more ‘champion’ ASX 200 shares to buy and hold
• These were the best performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Why Betmakers, Brambles, Challenger, and Stockland shares are charging higher
• Here’s why the Brambles share price is soaring 7% today

Motley Fool contributor Brooke Cooper 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 Scott Phillips.

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If you’re looking for some new growth shares to buy following the market meltdown, then it could be worth considering the two ASX shares listed below.

Both of these ASX shares have been tipped as buys with major upside potential. Here’s what you need to know about them:

Lovisa Holdings Limited (ASX: LOV)

The first ASX growth share that could be in the buy zone Lovisa. Especially with the growing fast-fashion jewellery retailer’s shares trading 21% lower year to date.

Analysts at Morgans are very positive on Lovisa due to its highly experienced management team and bold global expansion plans. It is for these reasons that the broker suspects that Lovisa could “prove to be one of the biggest success stories in Australian retail.”

And while its analysts acknowledge that a sizeable 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 if successful.

Morgans currently has an add rating and $24.00 price target on its shares. This compares to the latest Lovisa share price of $15.85.

Megaport Ltd (ASX: MP1)

Another growth share that could be in the buy zone is Megaport. It is the leading global provider of elastic interconnection services, which has seen its shares crash 62% in 2022.

Megaport’s platform uses software defined networking (SDN) to rapidly connect users of its network to other services across the Megaport Network. The company notes that its service simplifies a hybrid cloud strategy by enabling dedicated private connectivity to on-premise facilities and direct connectivity to the public cloud from one place.

So, with the structural shift to the cloud continuing, Megaport appears well-placed to benefit from increasing demand and higher spending on enterprise networking.

Goldman Sachs, for example, estimates that the company’s “opportunity for further growth is immense [with] GSe A$129bn p.a. spent on fixed enterprise networking across MP1 geographies.”

In light of this, the broker has a buy rating and $13.10 price target on its shares. This compares favourably to the latest Megaport share price of $7.21.

The post Experts name 2 beaten down ASX growth shares to buy after the market meltdown 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. has positions in and has recommended MEGAPORT FPO. The Motley Fool Australia has recommended Lovisa Holdings Ltd and MEGAPORT FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It has not been an easy time to be holding ASX shares in the technology sector.

The S&P/ASX All Technology Index (ASX: XTX) has plunged 40% since November.  And with more interest rates rises to come, immediate prospects still look grim.

But for those with long-term investment horizons, they need to grin and bear it if the business is continuing to perform.

Forager Funds is finding itself in exactly this position, with Whispir Ltd (ASX: WSP), Nitro Software Ltd (ASX: NTO) and Bigtincan Holdings Ltd (ASX: BTH) in the portfolio.

All three have halved their valuations since the start of the year.

Yikes.

Business performance is not linked to the share price dive

Forager, in a memo to clients, indicated the operational updates have been positive.

“Trends in revenue growth for all three remain at least in line with expectations, ranging from 24% at Whispir (using the recurring component of its revenue only) to more than 40% at Nitro.”

A blessing in disguise due the current market rout might be that these businesses have cleaned up their costs.

“Nitro reduced its estimate of current year losses and expects to be generating cash flow in the 2024 financial year. 

“Bigtincan was already cash-generative in the March quarter and should improve from there.”

With stock prices plummeting more than 50% this year, the market obviously doesn’t believe these tech firms will make a profit soon enough.

But Forager sees no reason why its conviction should change.

“The current period losses are very modest in contrast with the long-term revenue annuities being built,” read the memo.

“How valuable those annuities ultimately become is still to be proven, but as we get more evidence and if share prices continue falling, you should expect higher portfolio weightings.”

Surging interest rates, Forager admitted, might further impact investors valuations of tech shares. But the operational impact on these three businesses is “minimal”.

“Where the operating performance continues to justify our valuations, [we are] gradually increasing portfolio investments in the most heavily punished holdings.”

The analyst community generally agrees with Forager.

According to CMC Markets, all seven analysts that cover Nitro rate it as a “buy”. All four fund managers follow Whispir rate it as a “buy”.

Bigtincan has just Canaccord Genuity covering it, but it has labelled it a “strong buy”.

The post 3 ASX tech shares we’re sticking with: Forager appeared first on The Motley Fool Australia.

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• 3 quality ASX All Ordinaries shares tumbling 10% or more today

Motley Fool contributor Tony Yoo has positions in Nitro Software Limited and Whispir Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BIGTINCAN FPO and Whispir Ltd. The Motley Fool Australia has positions in and has recommended BIGTINCAN FPO. The Motley Fool Australia has recommended Nitro Software Limited and Whispir Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished a tough week on a high. The benchmark index stormed 1.9% higher to 7,075.1 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set to start the week strongly following a great night on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 54 points or 0.8% higher this morning. On Wall Street, the Dow Jones rose 1.5%, the S&P 500 climbed 2.4%, and the Nasdaq stormed 3.8% higher. The latter bodes well for the tech sector today.

Oil prices jump

Energy producers Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a good start to the week after oil prices stormed higher. According to Bloomberg, the WTI crude oil price rose 4.1% to US$110.49 a barrel and the Brent crude oil price climbed 3.8% to US$111.55 a barrel. This follows supply concerns as China looks to ease COVID restrictions.

Goodman Q3 update

The Goodman Group (ASX: GMG) share price will be on watch when the industrial property company releases its third quarter update. Goodman has provided guidance for earnings per share growth of 20% in FY 2022. However, a number of brokers believe that the company will outperform this. This could mean the market will be looking for an upgrade to its guidance this morning.

Gold price rises

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a poor start to the week after the gold price weakened on Friday night. According to CNBC, the spot gold price is down 0.9% to US$1,808.2 an ounce. A stronger US dollar weighed on the precious metal.

Aristocrat Leisure share price is in the buy zone

The Aristocrat Leisure Limited (ASX: ALL) share price could be in the buy zone according to the team at Goldman Sachs. Ahead of the gaming technology company’s half-year results this month, the broker has retained its buy rating and $43.00 price target on its shares. Goldman expects Aristocrat to deliver a 29% lift in net profit to $531 million for the half.

The post 5 things to watch on the ASX 200 on Monday 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. 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 Scott Phillips.

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