Day: 23 May 2022

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

It has been a trying time for Amazon.com (NASDAQ: AMZN) investors. The stock is down 35% on the year and is down some 43% from its all-time highs. With rising interest rates to start the year, high-growth technology stocks sold off hard.

And last week, poor retail earnings reports from Walmart and Target seemed to confirm investors’ worst fears over inflation’s effect on retail sales. Since these are the two businesses Amazon dominates, it sold off hard.

But with the company repurchasing stock and a stock split on the horizon, is now the time to buy when others are fearful?

Current woes in the retail segment

The hints of last week’s retail destruction were actually forecast by Amazon back in its April first-quarter earnings report. Total sales growth decelerated to just 7%, down from 44% a year ago, despite accelerating cloud growth. Operating income actually declined from $8.7 billion a year ago to just $3.7 billion. When stripping out operating profit from Amazon Web Services (AWS), Amazon’s North American and international retail operations actually tallied a combined $3.8 billion operating loss. Keep in mind that this includes things like advertising and Prime subscriptions, which may be high-margin, so the losses in its pure retail business were likely even worse.

As was confirmed by Walmart and Target, Amazon struggled as revenue growth decelerated amid the economic reopening. Meanwhile, freight and logistics costs rose sharply due to rising fuel prices. And since Amazon had so aggressively expanded its capacity during the pandemic, it found itself with more capacity and employees than it needed as e-commerce revenue slowed.

As if this weren’t bad enough, management guided to even lower overall growth next quarter, of 3% to 7%, and for operating income to get worse — somewhere in the range of a loss of $1.0 billion to a gain of $3.0 billion.

But AWS is a bright spot

If investors looked under the hood a bit, they might have been a bit more enthusiastic about Amazon Web Services, the company’s leading cloud computing platform. Enterprises generally save money and become more agile when they switch to the public cloud over building their own data centers, so this shift should continue even if there is an economic slowdown.

Last quarter, AWS revenue accelerated 37% from the 32% growth in the year-ago quarter, while AWS operating income grew 53% as margins expanded. The margin expansion was largely due to Amazon extending the useful life of its server hardware, but that should be a permanent change.

Over the past 12 months, AWS by itself has generated nearly $21 billion in operating income, up 43%. For 2022, AWS operating profit could be more than $25 billion, putting net profit somewhat higher than $20 billion. Amazon’s market cap right now is $1.1 trillion, or about 55 times that figure.

Even with interest rates higher today, given AWS’s leading position and the long-term growth prospects of the cloud, that wouldn’t be a crazy price to pay for AWS alone.

And newer innovations could help customers deal with inflation

With its inventive culture, Amazon also has a lot of projects going on besides its e-commerce platform and cloud computing. New initiatives such as Just Walk Out technology, and the Project Kuiper initiative for satellite-delivered broadband, could help. Just Walk Out, which allows for a cashier-free retail experience, has the potential to materially lower costs at Amazon Fresh grocery stores and other third-party retailers that adopt the platform.

Lower costs could enable Amazon Fresh stores and other retailers to lower prices, helping with inflation and labor shortages for consumers. Ditto for Project Kuiper, which has the potential to deliver broadband to underserved communities at lower costs than traditional solutions.

Since these projects don’t generate material revenue yet, they are largely overlooked by investors.

A historically low valuation

Meanwhile, Amazon stock is currently trading at a low valuation, at least relative to its history, on both enterprise value-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) and price-to-sales metrics. While Amazon has traded at a lower price-to-sales ratio in the last 10 years, that was before it broke out AWS in its financial results, starting in 2015:

AMZN EV to EBITDA data by YCharts.

Another indication that Amazon may be undervalued is that management is actually repurchasing itw own stock, which the company does only rarely. The last time it did so was in 2011-2012, during another swoon in the stock price. That wound up being a good buying opportunity for long-term investors.

It all adds up to a good-looking buy today

Amazon will split its stock on June 3, which isn’t very far from now. While stock splits usually lead to increased interest from retail investors, this is anything but a normal period. Should the U.S. economy dive into a deep recession, it’s possible Amazon shares could go lower.

However, barring that extreme scenario, an awful lot of bad news appears priced in today. While the near term is highly uncertain, the cloud business alone could be a good buy; meanwhile, I’d suspect the retail business will improve — possibly as soon as Prime Day in the third quarter and the holiday shopping season.

Furthermore, new innovations like Just Walk Out and Project Kuiper give investors new potential businesses to look forward to which aren’t accounted for at all in the current price. Add in share repurchases, and I suspect investors with a five- or 10-year time horizon will feel pretty good about buying Amazon shares at today’s prices. If you have the capital and a long time horizon, there’s no need to wait for the split.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Should you buy Amazon shares now or wait until after the stock split? appeared first on The Motley Fool Australia.

More reading

• Is the Webjet share price an opportunity that can soar?
• ‘Storm in a teacup’: Why the Imugene share price is lifting 14% today
• 3 ASX All Ordinaries shares starting the week with new 52-week highs
• Leading brokers name 3 ASX shares to buy today
• Broker reveals undervalued ASX sector with post-election tailwinds

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Billy Duberstein has positions in Amazon. His clients may own shares of the companies mentioned. The Motley Fool has positions in and recommends Amazon. The Motley Fool has a disclosure policy.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/Lle09NQ

The Webjet Limited (ASX: WEB) share price has certainly seen a lot of volatility since the onset of the COVID-19 pandemic.

Borders are now opening and travel is returning. Does this mean that the business is an opportunity that could fly higher? Or has the recovery been priced in?

Firstly, let’s have a look at what the company recently said in its result and also its outlook comments.

Webjet FY22 earnings recap

Webjet reported that it was profitable in the second half of FY22, delivering positive cash flow. However, for the year overall, it still made a statutory net loss after tax of $85 million and an underlying net loss of $38.4 million

The company achieved that second-half profitability in WebBeds, thanks to the North American and European markets. Costs were down 31% when compared to pre-COVID levels and it’s on track to be 20% more cost-efficient when back at scale.

The Webjet online travel agency (OTA) business was profitable in FY22 despite COVID-19 impacts, including the Omicron variant.

What about the company’s start to FY23? Webjet said that all of its businesses were profitable in April, with “indications of a further strong uplift in May”. As at May 2022, the ASX travel share said that WebBeds total transaction value (TTV) was ahead of May 2019. Further, Webjet OTA bookings were tracking at around 80% of pre-COVID levels and GoSee TTV was tracking at around 75% of pre-COVID levels.

Reopening and recovery

The size of the recovery could be important for the Webjet share price. Management sees “significant” growth potential in all of its businesses as travel markets reopen.

Webjet said that not only is it seeing strong signs of demand with daily customer search activity but it’s also seeing “demonstrable indicators of confidence in the recovery”. The company says its supply partners are investing in capacity for the future. It pointed to aircraft orders by Qantas Airways Limited (ASX: QAN) and Regional Express Holdings Ltd (ASX: REX) as examples.

The ASX travel share also said that FY23’s first-quarter revenue and earnings before interest, tax, deprecation and amortisation (EBITDA) was also “well ahead” of the fourth quarter of FY22.

For WebBeds, 14 of its top 25 markets are now trading at, or above, pre-COVID booking volumes. Some markets continue to have meaningful restrictions, particularly in the Asia-Pacific region.

Based on the bookings trajectory, Webjet said that it is expecting to be back at pre-COVID booking volumes in the second half of this new financial year (FY23).

Finishing his comments on the outlook for the company, Webjet managing director John Guscic said:

We believe there are significant growth opportunities in all our businesses and are excited for what the future holds.

What do brokers think of the Webjet share price?

Ord Minnett is quite optimistic about the future, with a price target of $7.48, implying a potential upside of more than 20%.

It’s attracted to the recovery of business travel and suggests that Webjet could capture more market share here.

However, Webjet noted that the OTA margins have been impacted due to the loss of ‘overrides’ and commissions payable on international travel.

But Macquarie analysts have a different opinion on the Webjet share price with a price target of $5.80, implying a slight decline. It notes that international travel could continue to suffer, though it could do better in the longer term with cheaper costs at scale.

The post Is the Webjet share price an opportunity that can soar? appeared first on The Motley Fool Australia.

More reading

• The Flight Centre share price has taken off 5% in a week. Is travel really ‘back, baby’?
• These are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to buy next week
• Brokers name 3 ASX shares to buy today
• Webjet share price tipped to rise: Broker says it ‘hasn’t wasted a crisis’

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 Macquarie Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/wE7AyaQ

The Imugene Limited (ASX: IMU) share price is soaring ahead today.

At the time of writing, Imugene shares are swapping hands for 22.8 cents, a 13.75% gain. In contrast, the S&P/ASX 200 Health Care Index (ASX: XHJ) is 0.87% in the red today. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is falling 0.1%.

Let’s take a look at the letter from the company to shareholders released today.

Imugene share price lifts

Imugene has written to shareholders to discuss the company’s share price in the last few months. For perspective, Imugene shares have dived 43% year to date.

Company leaders said Imugene is “as strong as it has ever been in its history”. Imugene highlighted it has $100 million in cash and three unique platform technologies supporting six unique assets.

Imugene informed shareholders it expects to have 10 clinical studies supported by five to six United States Food and Drug Administration (FDA) investigational new drug applications. The drugs are targeting greater than 10 disease areas. The company also has two supply agreements with major pharmaceutical companies and two industry collaborations.

Imugene advised the market that multiple shareholders have reached out to the company about the recent cancelling of a supply agreement with MSD. On 2 May, the company’s share price plunged nearly 14% on the back of this news. In a letter dated today, executive chair Paul Hopper and CEO and managing director Leslie Chong said:

The reaction to this has been out of all proportion to the news, and is really a storm in a teacup.

We recently announced that this trial is open ahead of schedule and can be expedited by obtaining the drug elsewhere, the cost of which is not material.

Turbulent times

Imugene noted “we are living in turbulent times” and biotech share prices have dropped dramatically since December last year. The company highlighted the sector has plunged about 65% from its peak in February 2021. Furthermore, April was the worst month on record for US biotech shares since 1997. Hopper and Chong added:

In addition, investors around the world have been spooked by the Ukraine Russia tensions, hawkish comments from the US Federal reserve, stubborn inflation and a worsening COVID situation in China.

Hopper and Chong said they remain and will continue to be large shareholders of the company and emphasised the “exciting times” ahead.

Share price snapshot

The Imugene share price has descended nearly 44% in the past year, but it is up 1.1% in a month.

In comparison, the benchmark ASX index has returned 2% over the past year.

In the past week alone, Imugene shares have surged 30%.

Imugene has a market capitalisation of $1.16 billion based on the current share price.

The post ‘Storm in a teacup’: Why the Imugene share price is lifting 14% today appeared first on The Motley Fool Australia.

More reading

• Imugene share price surges 18% to lead the ASX 200 on Thursday
• 2 ASX All Ordinaries shares having a cracking day, despite the carnage
• ASX 200 midday update: Aristocrat’s earnings beat, Webjet flops, retailers smashed
• Here’s why the Imugene share price just got a boost
• Why Imugene, Integrated Research, Monash IVF, and Step One shares are sinking

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.

from The Motley Fool Australia https://ift.tt/ybcMu89

After a strong start to the week, the All Ordinaries Index (ASX: XAO) has slipped into the red on Monday afternoon. But not all is dire. Some of its constituents smashed their 52-week highs earlier today. In fact, one All Ordinaries share penned a new record high on Monday morning.

At the time of writing, the benchmark index is down 0.01%.

Let’s take a look at what’s driving these ASX All Ordinaries shares to multi-year highs.

3 ASX All Ordinaries shares hitting long-forgotten heights

Stanmore Resources Ltd (ASX: SMR)

First off the block is Stanmore Resources. The All Ordinaries share reached a new record high of $2.84 earlier today despite no news having been released by the company.

For those who aren’t acquainted with Stanmore Resources, the company is a coal producer with operations in the Bowen and Surat basins.

Thus, its stock might be rising alongside thermal coal prices. The black rock’s value surged another 1.2% on Friday, reaching US$417.25 a tonne, according to CommSec.

That sees the commodity nearing the all-time high of $435 it hit back in March.

Elders Ltd (ASX: ELD)

The Elders share price leapt nearly 12% earlier today to reach its highest point in more than 12 years today. The All Ordinaries share traded at $15.32 at its intraday high on Monday.

Its gains followed the release of the company’s half year results within which it upgraded its financial year 2022 guidance.

The agribusiness posted a 38% jump in sales revenue, an 80% increase in earnings before interest and tax (EBIT), and a 40% boost to its dividend for the first half.

It now expects its full year EBIT to be 30% to 40% higher than that of financial year 2021.

Grange Resources Limited (ASX: GRR)

Finally, the Grange Resources share price reached a new mutli-year high on Monday. The All Ordinaries share leapt to $1.67 today – marking its highest point since 2008.

The company mines iron ore and produces iron ore pellets. Thus, its gains might have been born from rising iron ore futures.

It rose 2.5% to reach US$134.36 on Friday following news that China cut its benchmark reference rate for mortgages more than the market expected, according to CommSec.

The post 3 ASX All Ordinaries shares starting the week with new 52-week highs appeared first on The Motley Fool Australia.

More reading

• Why BrainChip, Codan, Elders, and Karoon Energy are storming higher
• ASX 200 midday update: Elders and Codan rocket, Incitec Pivot disappoints
• Elders share price jumps 9% on stellar first-half profit growth
• 5 things to watch on the ASX 200 on Monday
• 2 high quality ASX 200 dividend shares analysts have named as buys

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 recommended Elders Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/XW5tiqj

With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Aussie Broadband Ltd (ASX: ABB)

According to a note out of Ord Minnett, its analysts have retained their buy rating and $5.10 price target on this broadband provider’s shares. The broker has been looking at industry data and was pleased to see market share gains for Aussie Broadband. Another positive is a shift towards higher margin plans across the industry. The Aussie Broadband share price is trading at $4.12 on Monday.

BWX Ltd (ASX: BWX)

A note out of Citi reveals that its analysts have retained their buy rating on this personal care products company’s shares with a trimmed price target of $2.76. Citi took away positives and negatives from BWX’s investor day. The company’s long term margin guidance was ahead of expectations, but its revenue targets were either lower than planned or withdrawn. Nevertheless, Citi remains positive and believes the company’s Sukin brand is likely to appeal in a high inflation environment. It also estimates that the company’s shares trade at just 11x FY 2023 earnings. The BWX share price is fetching $1.42 this afternoon.

Woolworths Group Ltd (ASX: WOW)

Analysts at Goldman Sachs have retained their buy rating and $41.70 price target on this retail giant’s shares. This follows news that Woolworths has signed an agreement to acquire a controlling stake in MyDeal.com Au Ltd (ASX: MYD). While Goldman acknowledges that the deal is immaterial and MyDeal adds just 0.1% to Woolworths’ revenue, it sees potential for it to bolster its marketplace capabilities. The Woolworths share price is trading at $34.83 today.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Is the Woolworths share price a buy following the latest acquisition or a no deal?
• 5 things to watch on the ASX 200 on Monday
• Woolworths share price lifts following $218m online marketplace deal
• ASX 200 midday update: BHP, IGO, and Woolworths charge higher
• Here’s why the MyDeal share price is rocketing 56% today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Aussie Broadband Limited and Goldman Sachs. The Motley Fool Australia has recommended Aussie Broadband Limited and BWX Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/9zRpqu4

There is one undervalued ASX sector that’s set to benefit from federal Labor taking government that few are thinking about.

That is the ASX-listed childcare space. Operators could see a boost to demand under an Anthony Albanese government, according to Canaccord Genuity.

Why this ASX sector is outperforming today

This probably explains why the Mayfield Childcare Ltd (ASX: MFD) share price surged 9.6% to a record high of $1.49.

The G8 Education Ltd (ASX: GEM) and Evolve Education Group Ltd (ASX: EVO) share prices are also beating the market. They are up 3.5% to $1.19 and 0.7% to $0.70, respectively, at the time of writing.

In contrast, the S&P/ASX 200 Index (ASX: XJO) lost its morning gain to trade at breakeven.

Undervalued ASX sector getting a Labor boost

Canaccord said:

The election result over the weekend should be positive for childcare demand, in our view, with childcare being one of the key policies put forward by the Labor party.

The policy is aimed at making childcare more affordable by increasing the percentage of fees covered by the government.

The new federal government plans to increase the maximum childcare subsidy to 90%. It will also increase the subsidy rate for one child in every family and households with incomes up to $530,000.

Additionally, Labor will ask the competition watchdog to design a price regulation mechanism and ask the Productivity Commission to look at ways of moving to a 90% flat subsidy for everyone.

Demand outpacing supply

Albanese is promising that around 96% of families will be better off under its plan and no family will be worse off.

It’s worth noting that demand for childcare was already growing strongly before any policy changes were announced.

Canaccord added:

We believe these [policy] changes will have a meaningful impact on demand in MarQ’22 and beyond.

Meanwhile, new supply has come on but not at the rates we have seen previously. Moreover, there has been an increase in closures.

Which ASX childcare shares to buy

But not all shares in this undervalued ASX sector are a buy, according to Canaccord.

The broker is recommending investors buy G8 shares and Mayfield Childcare shares. These shares are trading on attractive valuations and Canaccord is expecting them to post solid earnings growth in 2022.

Its 12-month price target on G8 is $1.42 a share and on Mayfield Childcare is $1.76 a share.

Canaccord is more cautious about the Evolve Education share price. While it looks cheap on a long-term basis, the broker is concerned about the performance of its New Zealand operations.

The broker rates Evolve Education as a hold with a price target of NZ$0.90 a share.

The post Broker reveals undervalued ASX sector with post-election tailwinds appeared first on The Motley Fool Australia.

More reading

• Is the Bank of Queensland share price a buy as an inflation hedge?
• Why BrainChip, Codan, Elders, and Karoon Energy are storming higher
• Is it reasonable to expect share price growth AND reliable dividends from ASX shares?
• Warren Buffett says investors should do this 1 thing when stock values are down
• The Invictus share price just tanked 12%. Here’s why

Motley Fool contributor Brendon Lau 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.

from The Motley Fool Australia https://ift.tt/5sCHmjT

As most investors would be aware by now, inflation is emerging as a primary issue of concern.

For decades, inflation was just something we learned about in economics class. But 2022 has seen rising prices emerge as a malevolent economic force that we all now have to take into account in the course of our investing journey.

So how does one invest in a world of inflation? One of the ASX sectors most often described as an inflation hedge is ASX banks. Banking shares have a reputation as inflation-resistant businesses since they can increase their interest rates quite easily, ensuring that inflation doesn’t eat into margins.

That’s a view shared by our own chief investment officer, Scott Phillips.

Well, the Bank of Queensland Limited (ASX: BOQ) share price may not be a big four bank. But it is still a prominent member of the ASX banking sector. So do a bank’s apparent inflation-resistant qualities apply to BOQ shares? Is this bank an ASX buy today for an inflationary world?

Bank of Queensland share price: Buy or sell today?

Well, one ASX broker who thinks so is Morgans. As my Fool colleague covered earlier this month, Morgans currently rates the Bank of Queensland share price as an ‘add’. It gives the bank a 12-month share price target of $11. That would imply a potential upside of close to 50% on current pricing.

So why is Morgans so bullish on BOQ? Here’s what the broker had to say:

We see exceptional value in Bank of Queensland’s stock. The company has been executing well on its transformation program, it continues to grow its home loan book at above-system levels, we don’t expect its NIM [net interest margin] to fare worse than the industry-wide trend, and cost synergies associated with the ME Bank acquisition are being realised at a faster rate than originally anticipated.

Morgans is also expecting big things from BOQ when it comes to dividends. It has pencilled in full-year dividends of 49 cents per share in FY2022, and 54 cents per share in FY2023. That would mean dividend yields of over 7% on current pricing if that came true, which would be an inflation hedge in itself.

So that’s why this ASX broker reckons Bank of Queensland is a strong share to hold for a world of higher inflation. Only time will tell if it’s the right call.

At the current Bank of Queensland share price of $7.49, this ASX 200 banking share has a market capitalisation of $4.81 billion, with a dividend yield of 5.87%. 

The post Is the Bank of Queensland share price a buy as an inflation hedge? appeared first on The Motley Fool Australia.

More reading

• Analysts name 2 ASX dividend shares to buy with juicy yields
• Could Bank of Queensland shares deliver 46% upside AND a 4.5% dividend yield in 2022?
• How does the Bank of Queensland dividend compare to the other ASX 200 banks?
• 2 high-yield ASX 200 dividend shares to fight inflation according to brokers
• How has the Bank of Queensland share price travelled since the company’s half-year results?

Motley Fool contributor Sebastian Bowen 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.

from The Motley Fool Australia https://ift.tt/SL1dcIV

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and dropped into the red. At the time of writing, the benchmark index is down 0.1% to 7,138.4 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are storming higher:

Brainchip Holdings Ltd (ASX: BRN)

The BrainChip share price is up 9% to $1.28. This follows a press release which reveals that the artificial intelligence technology company has been accepted into the Arm AI Partner Program. This is an ecosystem of hardware and software specialists enabling developers to deliver the next generation of AI solutions.

Codan Limited (ASX: CDA)

The Codan share price is up 13% to $7.62. Investors have been buying this technology company’s shares following the release of its guidance for FY 2022. Codan revealed that it expects to match its record first-half profit in the second half. This would mean a record full-year profit of $100 million, which is up 56% year-on-year. Management advised that this strong growth has been supported by its strategy to diversify revenues and profitability.

Elders Ltd (ASX: ELD)

The Elders share price is up 10% to $15.12. This follows the release of a half-year result that smashed expectations. The agribusiness company reported a 38% increase in sales revenue to $1,514.8 million and an 80% jump in EBIT to $132.8 million. This compares to Goldman Sachs’ estimate of $1,245.2 million and $93.7 million, respectively. Management also upgraded its full-year earnings guidance.

Karoon Energy Ltd (ASX: KAR)

The Karoon Energy share price is up 5% to $1.97. Investors have responded positively to news that the company has withdrawn its offer to acquire a 50% non-operated interest in the Atlanta oil field, Santos basin, offshore Brazil. Management was unable to complete the necessary due diligence and conclude negotiation of acceptable terms in respect of the potential transaction during the agreed exclusivity period.

The post Why BrainChip, Codan, Elders, and Karoon Energy are storming higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Elders and Codan rocket, Incitec Pivot disappoints
• Why is the BrainChip share price rocketing 15% higher today?
• Elders share price jumps 9% on stellar first-half profit growth
• Codan share price jumps 10% amid guidance for ‘record’ FY22 profit
• 5 things to watch on the ASX 200 on Monday

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 recommended Elders Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/sQU5rWB

There is sometimes a question of whether investors should go for ASX dividend shares or ASX growth shares.

But is it possible to find both dividends and growth?

A business that is growing earnings has the ability to decide what it wants to do with its profit. Some businesses don’t pay a dividend and are investing heavily for growth, such as Xero Limited (ASX: XRO) for example.

However, some businesses may decide that they want to pay out some of the profit to reward shareholders and re-invest the rest.

Not every business is able to achieve consistent long-term profit growth, sometimes because of the nature of the industry in which it operates.

But it’s profit growth that can help drive the share price higher over time, although share prices can do anything in the short term.

There are some ASX shares that have seen share price growth and dividend growth over the last five years (and longer). However, as is always the case, nothing is certain about the next five years.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Pattinson is an investment house that operates a diversified investment house. In its portfolio are names like TPG Telecom Ltd (ASX: TPG), Tuas Ltd (ASX: TUA), Brickworks Limited (ASX: BKW), New Hope Corporation Limited (ASX: NHC), Macquarie Group Ltd (ASX: MQG), Commonwealth Bank of Australia (ASX: CBA), and BHP Group Ltd (ASX: BHP).

It has taken the approach of steadily growing its dividend every year since 2000. Soul Pattinson’s own investments can grow their dividends to Soul Pattinson shareholders and the investment house keeps some of its profit/cash flow each to invest in more opportunities. For example, in the FY22 half-year result, it paid out 57.3% of its regular operating cash flows.

Over the last five years, the Soul Pattinson share price has risen almost 50% at the time of writing.

Sonic Healthcare Ltd (ASX: SHL)

Sonic Healthcare is another ASX share that has been growing its dividend every year and it has seen share price growth. Over the last five years, the Sonic Healthcare share price has risen by more than 60%. It has also been growing its dividend.

The company is a global pathology business with operations across Australia, the USA, Germany, the UK, Switzerland, Belgium, and New Zealand.

Sonic is benefiting from the tailwinds of ageing demographics and has seen significant COVID-19 test earnings. The business has been re-investing its profit into making acquisitions while also paying a bigger dividend with its progressive dividend policy. In the first half of FY22, it grew its net profit after tax (NPAT) by 22% while increasing the interim dividend by 11%.

In the first half of FY22, it made $585 million of acquisitions including ProPath in Dallas with US$110 million of revenue and Canberra Imaging Group with $60 million of revenue.

Rural Funds Group (ASX: RFF)

Rural Funds is a farmland real estate investment trust (REIT) that owns farmland across the agricultural sectors of cattle, macadamias, almonds, vineyards, and cropping (cotton and sugar).

The business generates rental profit each year, which is referred to as ‘adjusted funds from operations’ (AFFO). Most years, Rural Funds retains some of its AFFO and re-invests in achieving more economic value from its farms such as productivity improvements or changing the farm type to a more profitable crop (such as macadamias).

Rural Funds aims to increase its distribution by 4% per annum. Over the last five years, the Rural Funds share price has gone up by 67%.

The post Is it reasonable to expect share price growth AND reliable dividends from ASX shares? appeared first on The Motley Fool Australia.

More reading

• Where I’d invest $10,000 into ASX shares this week
• I’ll never sell this ASX dividend share. Here’s why
• 2 strong ASX dividend shares hiding in plain sight
• I plan to hold this quality ASX dividend share forever. Here’s why.
• The Soul Patts dividend is being paid today. Here’s what you need to know

Motley Fool contributor Tristan Harrison has positions in RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool Australia has positions in and has recommended Brickworks, RURALFUNDS STAPLED, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool Australia has recommended Macquarie Group Limited, Sonic Healthcare Limited, and TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/wdH8IRG

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The past five months have been loaded with turbulence from an investing standpoint. And late last week, the S&P 500 Index finally plunged into bear market territory after weeks of steady declines.

It’s enough to make even the most seasoned, level-headed investor get rattled. But if you want to get through this rocky period, it pays to take some advice from investing giant Warren Buffett.

Just look away

The current stock market slump isn’t the first of its nature investors have had to endure. The market has been through numerous periods of steep declines, and while many of today’s investors have experienced a bear market before, that doesn’t necessarily make it easier to cope with.

But if you want to increase your chances of getting through this bear market unscathed, Warren Buffett says your best bet is to simply look away. Specifically, he advises investors not to watch the market too closely during periods like this.

Buffett insists that investors who load up on quality stocks and hold them for many years will come out ahead in the long run. So even though things might seem bleak right now, it’s important to remember that in the grand scheme of a 30-, 40-, or 50-year investing career, today’s bear market could end up being a non-event.

In fact, the best thing to do during a bear market is to avoid selling off stocks when their value is down. If you do, you’ll only guarantee yourself losses. If you leave your portfolio alone, there’s a strong chance it will recover in time.

But the more you check up on your portfolio, the more rattled you might get — and the more likely you might be to make a rash decision that causes you to take needless losses. That’s why it pays to heed Buffett’s advice and simply walk away.

Seize the opportunity

If you can’t stomach the idea of seeing major losses in your portfolio during a stock market downturn, don’t check your portfolio. It’s that simple.

That said, if you happen to be sitting on a pile of cash you don’t need for near-term bills or emergencies, it could pay to take advantage of current market conditions by purchasing stocks on the relative cheap. If you already own a number of companies whose long-term prospects you believe in, those are the stocks to keep buying during a bear market.

Another option? Load up on broad market index funds. That way, you’ll get instant diversification and you won’t have to put as much thought into your investing decisions.

Warren Buffett has long insisted that broad market index funds are a great choice for the everyday investor who’s willing to sit back and let a portfolio gain value over time. So loading up on S&P 500 index funds is a good bet right about now.

Keep calm

It’s natural to worry when stock values drop significantly. But if your stress level is currently through the roof, do yourself a favor and just walk away.

Checking your portfolio daily when it’s down is only apt to cause you undue anguish. If you need a way to channel your energy, take up a sport that will allow you to blow off steam, or put on your running shoes and hit a local trail. But don’t spend night after night checking on your portfolio. If you don’t walk away, you might end up making a fear-driven decision that turns those on-screen losses into actual ones.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Warren Buffett says investors should do this 1 thing when stock values are down appeared first on The Motley Fool Australia.

More reading

• The Invictus share price just tanked 12%. Here’s why
• Guess which ASX mining share leapt 60% this morning on a new lithium discovery?
• Why the Openpay share price is sinking 13% to a new low today
• Tiny ASX gold share soars 23% on ‘transformational’ lithium prospects
• Here’s why the Fortescue share price is surging on Monday

The Motley Fool has a disclosure policy.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/exDKnXp