The ASX 50 index is home to 50 of the largest listed companies on the Australian share market.

While there are a number of quality options on offer in the index, two that could be in the buy zone are listed below.

Here’s what you need to know about these ASX 50 shares:

BHP Group Ltd (ASX: BHP)

The first ASX 50 share for investors to look at is BHP. It is of course one of the world’s largest mining companies with a portfolio of world class operations across a range of commodities and geographies.

It could be a top option for investors thanks to strong prices for many of the commodities it is producing. This is expected to offset higher labour costs and generate bumper free cash flow again in FY 2022.

And with the Big Australian’s balance sheet in a very healthy position, this provides it with the opportunity to reward shareholders with big dividends and consider M&A activities.

And while the BHP share price has stormed 12% higher this year, analysts at Macquarie still see plenty of upside ahead. Its analysts currently have an outperform rating and $57.00 price target on its shares.

REA Group Limited (ASX: REA)

Another ASX 50 share that is highly rated is REA Group. It is the dominant player in real estate listings in the Australian market.

Its shares have been hammered this year amid weakness in the tech sector. As disappointing as this is, it could be a buying opportunity for long term investors.

For example, Goldman Sachs currently has a buy rating and $167.00 price target on its shares.

Its analysts note that management “remains confident it can achieve double digit revenue/EBITDA growth through the cycle with positive jaws.”

“Overall, we believe these commitments illustrate the pricing power of REA, pipeline of value-add products, and its ability to offset any potential macro weakness, and now forecast FY22-24E Sales growth of 10% despite challenging volume listings,” it added.

The post Here are 2 ASX 50 shares analysts rate as buys appeared first on The Motley Fool Australia.

More reading

• Rio Tinto share price gains lag BHP despite green steel deal
• Why is the BHP share price having such a stellar day?
• Own BHP shares? Here’s how the miner plans to offset lower iron ore prices
• Can the REA share price turn over a new leaf in 2022?
• Leading brokers name 3 ASX shares to buy today

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 REA 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 Fortescue Metals Group Limited (ASX: FMG) share price has continued its strong form lately.

During Wednesday’s market close, the iron ore mining outfit’s shares lifted 2.22% to $21.63.

This means that Fortescue shares have surged 7.56% higher for the month of June.

In comparison, S&P/ASX 200 Index (ASX: XJO) is 1.25% in the red so far in June. This follows the Reserve Bank of Australia’s rate hike yesterday, which dragged down the benchmark index.

Let’s take a closer look at what’s driving the miner’s shares upwards.

Iron ore prices touch one-month high

Investors are bidding up the Fortescue share price after iron ore prices reached a one-month high.

Currently, the steel-making ingredient is fetching at US$146.50 per tonne, an improvement of 9.7% for the month of June.

An easing of COVID-19 restrictions in China as well as more potential support from government is driving the price.

In addition, it appears that the market is optimistic that demand could elevate as Chinese workers return to their jobs.

According to Bloomberg, iron ore inventories at major ports dropped to an eight-month low.

With demand outpacing supply, iron ore prices could rally even further.

Recently, India raised export duties for iron ore to 50% which increases the cost for steel mills. This is likely to impact supply on the international market as it becomes more expensive to send iron ore products overseas.

Fortescue share price snapshot

Over the past 12 months, the Fortescue share price has struggled to consistently remain near the $20 mark.

The company’s shares are down 3.5% for the period.

When looking at the year to date, Fortescue shares are up 12% despite a volatile start to 2022.

Based on today’s price, Fortescue presides a market capitalisation of approximately $66.07 billion.

The post Here’s why the Fortescue share price is 8% higher so far in June appeared first on The Motley Fool Australia.

More reading

• Is now the time to load up on Fortescue shares?
• These were the best performing ASX 200 shares last week
• Why Altium, Fortescue, PeopleIn, and REA shares are storming higher
• Why are the ASX 200 iron ore giants outperforming on Friday?
• ASX 200 midday update: Healius disappoints, BHP and Fortescue storm higher

Motley Fool contributor Aaron Teboneras 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 Peninsula Energy Ltd (ASX: PEN) share price exploded today following positive news for the global uranium market.

Peninsula shares spent all day in the green, surging to close 20% higher at 21 cents apiece. In contrast, the S&P/ASX 200 Index (ASX: XJO) index lifted just 0.36% today.

So why did the Peninsula Energy share price have such a good day?

Biden administration target uranium production

It appears investors were interested in buying up Peninsula shares following news out of the United States overnight.

According to a Bloomberg report, US Government energy officials are meeting with congress staff to discuss a uranium deal.

President Joe Biden’s administration is reportedly seeking support for a $4.3 billion plan to buy uranium from domestic producers. Peninsula Energy is a mineral explorer focused on the Lance Uranium Project in the US state of Wyoming. 

The company is intent on expanding its project in the US. On 16 May, Peninsula Energy announced it had boosted its North American board presence with the appointment of Brian Booth as a non-executive director.

Commenting on the company’s plans for the Lance Uranium Project in the US, chairman John Harrison said:

We are very happy to secure the experience and services of Brian as a non-executive director as we embark on a critical six-month period for the company.

Brian brings extensive North American mining and capital markets experience and an impressive history of successfully guiding and leading companies through the mining lifecycle.

I much look forward to working with Brian as we work towards transitioning Lance into production.

Peninsula plans to make a final investment decision on the Lance project in the 2022 calendar year.

Peninsula Energy share price snapshot

The Peninsula share price flew higher than its ASX uranium peers today. The Paladin Energy Ltd (ASX: PDN) jumped almost 13% at the close, Boss Energy Ltd (ASX: BOE) surged 12%, while Bannerman Energy Ltd (ASX: BMN) leaped 9.5%.

The Peninsula Energy share price has soared 27% in the past 12 months, lifting 5% year-to-date.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has shed 2% in the past year.

Peninsula Energy has a market capitalisation of about $209 million based on the current share price.

The post Peninsula Energy share price soars 20% amid US news on uranium market appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 energy shares jumping today?
• Why are ASX uranium shares having such a cracker run on Wednesday?

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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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.

Netflix (NASDAQ: NFLX) has been getting a lot of attention lately, but unfortunately, for the wrong reason. The streaming pioneer reported its first quarter of subscriber losses in over a decade, pointing to rising competition, account sharing, and the reversal of the pandemic boom as reasons for the drop-off.

These headwinds have been meaningfully negative, causing the stock price to fall by 71% off its highs in 2021. Let’s look more closely at why everyone is talking about Netflix stock.

1. Netflix faces rising competition

Netflix is not just competing with rival streaming services, though they are playing a part. Netflix is also competing with the rise of free, ad-supported entertainment options that consumers have at their fingertips: Alphabet‘s YouTube, TikTok, and Meta Platforms‘ Instagram have all gained in popularity. Unlike Netflix, those services are free to consume. The difference is that viewers are shown advertisements that interrupt their engagement, which is a feature they’ve demonstrated a willingness to tolerate.

For years, Netflix’s management had been against releasing an ad-supported version of its service at a lower price. However, facing subscriber losses for the first time in over a decade and a stock price that has been down 71%, management signalled that it is planning an ad-supported version that could launch as early as the end of this year.

NFLX data by YCharts.

2. 100 million more homes should be paying for Netflix

That Netflix discovered shared accounts isn’t surprising, but the scale of the sharing is a bit of a shocker. The figure has some investors talking about why management let it get to this level before doing something about it. Did they believe that allowing customers to use each other’s accounts makes them willing to pay higher subscription prices? Or perhaps developing the technology to limit sharing is costly, and the company would rather spend money on creating content instead?

Regardless, Netflix essentially has 100 million customers using the service without paying. Interestingly, launching an ad-supported version will help solve this problem, although not entirely. Netflix can show advertisers that the service is used in the 222 million paying households and an additional 100 million nonpaying ones. In that way, Netflix could draw an increased budget from marketers who would be willing to pay more because they’re getting the opportunity to influence 100 million more households.

Netflix grew to earn $29.7 billion in revenue in 2021 without any ad support. An additional income stream could boost that closer to $40 billion in a few short years.

NFLX Revenue (Annual) data by YCharts,

3. Folks are streaming less content now

During the first pandemic-plagued year of 2020, Netflix added 36.6 million streaming subscribers — 8.7 million more than the 27.9 million it added in 2019. That acceleration of growth was impressive from a company the size of Netflix, which already had the industry lead. However, momentum slowed in 2021, when Netflix added only 17.2 million subs.

It’s only getting worse as Netflix lost 200,000 subscribers in Q1 and forecasts it will lose 2 million more in the second quarter. This downward trajectory is troubling news for shareholders, who are uncertain how far this will go. Will the service eventually lose all the 36.6 million subs it added during 2020? That seems unrealistic. Will it lose the incremental 8.7 million subscribers it added in 2020 vs. 2019? That’s more likely. Will it turn things around in the third quarter and return to growth? That seems most likely.

The changes going on at Netflix are definitely noteworthy. It’s clear why investors are buzzing about its stock.

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

The post Why is everyone talking about Netflix stock? appeared first on The Motley Fool Australia.

More reading

• Can Stranger Things stop Netflix’s subscriber bleed?
• Could Netflix eventually become an excellent dividend stock?
• Will Microsoft and Apple shares finally give way in the stock market’s downturn?
• Here’s why Netflix stock climbed higher today

Parkev Tatevosian has positions in Alphabet (C shares), Meta Platforms, Inc., and Netflix. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Meta Platforms, Inc., and Netflix. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Meta Platforms, Inc., and Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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