If you’re looking to add some resources sector exposure to your portfolio, then you may want to look at the two listed below.

They have both been rated among the best shares to buy in the resources sector by analysts at Morgans. Here’s what the broker is saying:

Santos Ltd (ASX: STO)

This energy producer could be a share to buy according to Morgans. It is positive on Santos due to its diversified earnings base and growth projects. The broker also sees plenty of upside for the Santos share price with its add rating and $10.00 price target.

But it gets even better, with Morgans forecasting dividends per share of 25.8 cents in FY 2022 and 39.4 cents in FY 2023. Based on the current Santos share price of $8.24, this will mean yields of 3.1% and 4.8%.

Morgans commented:

We expect the resilience of STO’s growth profile and diversified earnings base see it best placed to outperform against a backdrop of a broader sector recovery. While pre-FEED, we see Dorado as likely to provide attractive growth for STO, while its recent acquisition increasing its stake in Darwin LNG has increased our confidence in Barossa’s development.

South32 Ltd (ASX: S32)

Another ASX resources share that Morgans is positive on is South32. It is a fan of the way the mining giant has transformed its operations to green metals. As well as boosting its ESG credentials, the broker feels it has improved the quality of the company’s earnings.

Morgans has an add rating and $6.10 price target on South32’s shares. It is also expecting big fully franked dividends per share of 26 cents in FY 2022 and 36 cents in FY 2023. With the South32 share price currently fetching $4.71, this will mean yields of 5.5% and 7.6%, respectively.

The broker said:

S32 has transformed its portfolio divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile. Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.

The post Broker names 2 of the best ASX resources shares to buy now appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares on Friday
• Brokers name 3 ASX shares to buy today
• TGIF: Here’s why ASX 200 energy shares are outperforming today
• Here are 2 ASX 200 dividend shares rated as buys by brokers
• Australia’s renewable energy output could triple by 2030 under Labor. Will that impact these ASX 200 shares?

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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Today, the S&P/ASX 200 Index (ASX: XJO) flipped the script and ran in opposition to how yesterday’s market played out. At the end of the session, the benchmark index finished 1.08% higher at 7,182.7 points.

A more uplifting mood was felt across the Australian share market on Friday. Thankfully, US retailers Macy’s and Dollar Tree reported positive results last night, easing the minds of some investors.

In addition, the Australian Bureau of Statistics reported a record level of retail sales in April. Expectedly, the consumer discretionary sector performed strongly today, rising by 2%. On the other hand, consumer staples ended the day being the only sector in the red.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Block Ltd (ASX: SQ2) was the biggest gainer today. Shares in the US-based fintech company got a 5.91% boost after lifting 7% on the New York Stock Exchange last night. Find out more about Block here.

The next best performing ASX share across the market today was Tabcorp Holdings Ltd (ASX: TAH). After an eventful week involving the successful demerging of the now separate Lottery Corporation (ASX: TLC), Tabcorp shares strengthened 4.40% in its last session of the week. Uncover the latest Tabcorp Holdings details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Block Inc (ASX: SQ2)	$117.13	5.91%
Tabcorp Holdings Ltd (ASX: TAH)	$1.0075	4.40%
Credit Corp Group Ltd (ASX: CCP)	$23.12	4.29%
Paladin Energy Ltd (ASX: PDN)	$0.745	4.20%
Liontown Resources Ltd (ASX: LTR)	$1.33	3.91%
Beach Energy Ltd (ASX: BPT)	$1.64	3.80%
Allkem Ltd (ASX: AKE)	$14.00	3.78%
Technology One Ltd (ASX: TNE)	$10.43	3.47%
Pilbara Minerals Ltd (ASX: PLS)	$2.905	3.38%
Corporate Travel Management Ltd (ASX: CTD)	$21.64	3.29%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares on Friday
• ASX 200 midday update: Appen crashes, lithum shares jump
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• Here are the 3 most traded ASX 200 shares on Thursday

Motley Fool contributor Mitchell Lawler has positions in Block, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Block, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Corporate Travel Management Limited and TechnologyOne 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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There are a lot of shares to choose from on the Australian share market.

In order to narrow things down for investors, listed below are two ASX shares that are rated highly by analysts. Here’s why they could be top buy and hold options:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The first ASX share that could be a top buy and hold options is this pizza chain operator.

While Domino’s is having a reasonably tough time at the moment, its long term outlook remains very positive. This is being underpinned by the popularity of its offering and its bold expansion plans. In respect to the latter, despite already having a huge network across several regions, Domino’s sees scope to more than double its footprint again over the next decade.

And this is just from existing markets. It also has the balance sheet strength to make acquisitions that increase its addressable market.

The team at Morgans remain positive on the company and believe recent share price weakness is a buying opportunity.

The broker commented: “We upgraded to ADD after the result and, although inflationary pressures have worsened since then, we continue to believe there is meaningful upside to the current share price over the next 12 months.”

Morgans has an add rating and $100 price target on the company’s shares.

TechnologyOne Ltd (ASX: TNE)

Another ASX share that could be a quality buy and hold option is TechnologyOne.

It is an enterprise software provider servicing the government, financial services, health and community services, education, and utilities and managed services markets.

It could be a top option due to its recent transition to a software-as-a-service (SaaS) model with its enterprise resource planning (ERP) solution. This shift of focus has been going very well, with the company recently reporting stellar SaaS annual recurring revenue (ARR) growth with its half-year results.

Pleasingly, management doesn’t expect its growth to stop any time soon and is targeting $500 million+ in ARR by FY 2026. This is up from its current base of $288 million.

Analysts at Goldman Sachs suspect that TechnologyOne could even outperform this target, noting that the risks are to the upside. It said: “SaaS flip uplift, elevated inflation (via contractual CPI pass-through) and underlying business growth underpin our A$505mn FY26 ARR estimate, and we think risks are skewed to the upside with our estimates assuming modest organic growth ex-flip (~10%).”

Goldman has a buy rating and $13.30 price target on the company’s shares.

The post 2 top ASX shares that could be excellent buy and hold options appeared first on The Motley Fool Australia.

More reading

• 2 beaten-up ASX tech shares with major upside: experts
• Leading broker names the best ASX tech share to buy following 2022’s tech meltdown
• Top brokers name 3 ASX shares to buy today
• 3 ASX growth shares brokers rate as buys right now
• Why Nufarm, Sayona Mining, Tabcorp, and TechnologyOne shares are falling

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 Dominos Pizza Enterprises 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week on a very positive note. At the time of writing, the benchmark index is up 1.1% to 7,184.7 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Appen Ltd (ASX: APX)

The Appen share price is down 22% to $6.47. Investors have been selling this artificial intelligence data services company’s shares after Telus International withdrew its takeover proposal. The offer was withdrawn without comment but appears to have been triggered by the proposal being leaked to the press. Appen advised that it doesn’t know who leaked details of the offer.

Catapult Group International Ltd (ASX: CAT)

The Catapult share price is down a further 6% to 96 cents. Investors have been selling this sports technology company’s shares since the release of a disappointing full-year result this week. Although Catapult reported a 19.7% increase in annual contract value (ACV) to US$63.9 million, its underlying EBITDA swung to a loss of US$5.8 million from a profit of US$3.5 million in FY 2021.

CSR Limited (ASX: CSR)

The CSR share price is down 4.5% to $4.68. The majority of this decline has been driven by the building products company’s shares trading ex-dividend this morning. Eligible shareholders can now look forward to receiving its 18 cents per share fully franked dividend on 1 July.

Select Harvests Limited (ASX: SHV)

The Select Harvests share price is down 6% to $5.60. This follows the release of the almond producer’s half year results. While Select Harvests reported a large increase in profits, it was still down materially from 2020’s levels. Select Harvests reported a half-year net profit of $2 million, up from $1.3 million in FY 2021 but down from $17.4 million in FY 2020.

The post Why Appen, Catapult, CSR, and Select Harvests shares are dropping appeared first on The Motley Fool Australia.

More reading

• ASX 200 midday update: Appen crashes, lithum shares jump
• Why the CSR share price is backtracking today
• Appen share price crashes 25% after Telus withdraws takeover offer
• Appen share price on watch amid takeover offer collapse
• 5 things to watch on the ASX 200 on Friday

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 Appen Ltd and Catapult Group International Ltd. The Motley Fool Australia has positions in and has recommended Catapult Group International 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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