Day: June 9, 2022

Analysts are tipping these ASX growth shares as buys

Big green letters spell growth, indicating share price movements for ASX growth shares

Big green letters spell growth, indicating share price movements for ASX growth shares

Looking for some growth shares for your portfolio? Then take a look at the three listed below that are rated as buys.

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

Life360 Inc (ASX: 360)

The first ASX growth share to look at is Life360. Its massively popular Life360 app is the world’s leading real time, location-sharing app used by families across the world to stay safe and communicate. At the last count, there were over 30 million monthly active users on its platform. Through its freemium model, LIfe360 is generating significant recurring revenue and creating material cross-selling and upselling opportunities for the company.

Bell Potter currently has a buy rating and $7.50 price target on its shares. It believes the company has a huge opportunity to monetise its user base. It notes that the company “has the potential to leverage its large and growing user base to enter new markets and disrupt the legacy incumbents.” This includes “insurance, item & pet tracking, senior monitoring, home security and/or identity theft.”

Lovisa Holdings Limited (ASX: LOV)

Another ASX growth share that could be in the buy zone is Lovisa. It is a fast-fashion jewellery retailer which has set itself big expansion goals over the coming years. And with an experienced management team behind it who have been there and done that with other retailers, Lovisa appears well-placed to execute on its plans and deliver strong growth over the next decade.

Morgans is very positive on Lovisa and has an add rating and $24.00 price target on its shares. Its analysts are bullish on the company’s global expansion plans and believe “LOV may just prove to be one of the biggest success stories in Australian retail.”

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share to look at is this online furniture and homewares retailer. It has been growing very strongly over the last few years thanks to the ongoing shift to online shopping. Pleasingly, this has continued in FY 2022. A recent trading update revealed year on year revenue growth of 23% for the period 1 January to the 30 April.

Goldman Sachs has a buy rating and $12.65 price target on its shares. The broker likes Temple & Webster due to its “early lead in the home furniture category which is still in the early stages of online penetration.”

The post Analysts are tipping these ASX growth shares as buys appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Lovisa Holdings Ltd and Temple & Webster Group 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/23Ddfen

The CBA share price has sunk a brutal 10% so far this week. What gives?

a couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at the computer screen balanced on the lap of the man.a couple sits on a sofa, each clutching their heads in horror and disbelief, while looking at the computer screen balanced on the lap of the man.

The Commonwealth Bank of Australia (ASX: CBA) share price lunged further south today, ending the day 2.59% in the red at $94.95.

Today’s fall brings the bank’s losses this week to almost 10%, as investors seek to price in troubling headlines on Australia’s mortgage market.

Here we take a look at what’s happening.

What’s clamping the CBA share price?

The flavours of surging inflation and rising interest rates make for an ill-tasting economic dish the market looks set to endure next few periods.

Consequently, the current chatter around ASX banks is centred around these factors.

Credit and ratings agency Moody’s Investors Service reckons there are impeding risks on the horizon for Australia’s mortgage market.

A rise in interest rates is generally accepted as a net positive for banks, seeing as it increases net interest income (NII) and widens net interest margins (NIMs), two important factors of income on a bank’s P&L statement.

However, context is equally as important. The fact is, as Moody’s agrees, Aussie banks are heavily tied to the mortgage market, meaning the risk of loan defaults threatens profitability in the sector.

“The risk of mortgage delinquencies will be highest for borrowers with high loan balances and where amounts are close to buyers’ maximum borrowing capacities,” Moody’s said.

“However, we expect delinquency rates will only increase moderately overall this year because interest rates, while rising, are still low.”

This could change if and when the Reserve Bank of Australia (RBA) continues on its path of rate hikes into FY23 and FY24. On Tuesday, the RBA hiked the cash rate by 50 basis points to its highest level in years.

An upward trajectory in rates also marks down the value of housing in Australia, creating a two-pronged threat for banks. One is that borrowers are less likely to sell their house at the price they bought it. Second, the value of mortgage collateral (property) is also lower, hurting bank loan-to-value (LTV) ratios and other metrics.

Going forward, there could also be an increase in the provision for bad debts on banks’ income statements, thereby hurting earnings.

These points appear to have been accepted by the market, resulting in a sell-off throughout the entire sector.

In the last 12 months, the CBA share price has wormed more than 6% into the red and is trading down more than 6% this year to date.

The post The CBA share price has sunk a brutal 10% so far this week. What gives? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Commonwealth Bank of Australia right now?

Before you consider Commonwealth Bank of Australia, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Commonwealth Bank of Australia wasn’t one of them.

The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of January 13th 2022

More reading

Motley Fool contributor Zach Bristow 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/eUWrdRY

Is Bitcoin still worth buying to diversify your ASX share portfolio?

Man sitting at a desk facing his computer screen and holding a coin representing discussion by the RBA Governor about cryptocurrency and digital tokens

Man sitting at a desk facing his computer screen and holding a coin representing discussion by the RBA Governor about cryptocurrency and digital tokensAh, Bitcoin (CRYPTO: BTC)… It’s still the asset that divides opinions. The flagship cryptocurrency has had a horror few months to be sure. It was only in November last year that Bitcoin was hitting new all-time highs and threatening to break US$70,000 per coin. Today, the cryptocurrency is going for just US$30,310 each at the time of writing. That’s a fall of over 55% in just eight months or so.

For long term bulls, this probably represents yet another buying opportunity before Bitcoin’s inevitable climb to new highs. For bears, it probably proves why no one should have invested in it in the first place.

To be fair, although Bitcoin’s recent falls look awful, anyone who bought the cryptocurrency before the start of 2021 (and still owns it) would still be sitting on some pleasing gains. After all, Bitcoin, even at today’s levels, is up close to 500% from the lows we saw in 2020.

So is this flagship crypto still worth buying today? Well, that’s the $64 billion question.

Is Bitcoin worth considering as part of a diversified investment portfolio?

Several of Bitcoin’s so-called advantages have certainly been eroded in recent months. Investors used to say that Bitcoin was an asset uncorrelated to other assets like shares. Well, that certainly hasn’t been evident over 2022 thus far. The cryptocurrency has fallen in value right alongside many of the global share market’s most volatile growth shares.  

Its supposed inflationary hedge properties have also failed to materialise in a year that has been defined by rising inflation. The asset Bitcoin gets compared to the most – gold – has pretty much held its value of 2022, while Bitcoin’s has tanked. 

But there are reasons to believe Bitcoin is a valuable asset to hold as part of a diversified investment portfolio. Firstly, its use and legitimacy as an asset is still valid. Companies around the world are still figuring out how to use cryptocurrencies and blockchain technology in new and innovative ways. 

Secondly, it remains a scarce asset. There are still only 21 million Bitcoins that can ever be created. Like gold, Bitcoin can’t be ‘printed’ in the way that traditional currencies can. So as long as Bitcoin remains relevant, it should still benefit from this scarcity. This could indeed still give Bitcoin inflation-hedging properties over time, as well as reduce its volatility and correlation to assets like growth shares.

Thirdly, there is still every chance that Bitcoin could be worth far more in the future than it is today. If fund managers (or even central banks) around the world start treating this cryptocurrency as they do gold or other assets outside the share market, demand will steadily rise over time (remember, there will always only be 21 million Bitcoins in existence). This is by no means guaranteed. But in my opinion, it is a distinct possibility.

Foolish takeaway

As such, there are many arguments that can be made that would support an allocation to Bitcoin (or even other cryptocurrencies) as part of a diversified investment portfolio. I am not suggesting anyone bets the house on this asset. But there are far more irresponsible paths to take in my view than a 2-5% allocation to the world’s favourite cryptocurrency.

The post Is Bitcoin still worth buying to diversify your ASX share portfolio? appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

Motley Fool contributor Sebastian Bowen has positions in Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin. The Motley Fool Australia owns and has recommended Bitcoin. 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/4I0xW7E

3 ASX All Ordinaries shares that defied Thursday’s slump to leap higher

three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.three young children weariing business suits, helmets and old fashioned aviator goggles wear aeroplane wings on their backs and jump with one arm outstretched into the air in an arid, sandy landscape.

The All Ordinaries Index (ASX: XAO) fell today, but some All Ords shares bucked the trend.

The All Ords Index slipped 1.45% to close at 7240.40 points. In comparison, the S&P/ASX 200 Index (ASX: XJO) shed 1.42%.

Let’s take a look at three All Ordinaries shares that defied the broader index today.

Megaport Ltd (ASX: MP1)

The Megaport share price climbed 2% today to end the day at $6.12. Megaport shares outperformed the technology sector, with the S&P/ASX All Technology Index (ASX: XTX) down 1.25%.

Megaport could be benefiting from positive broker outlook. Goldman Sachs recently placed a $13.10 price target on the company’s shares. This is more than double the current share price.

Citi also recently retained its buy rating but slashed its price target by 26% to $12.30 — still a potential upside of more than 100%.

This ASX All Ordinaries share has a global presence with more than 700 data centres. Goldman predicts the company will grow rapidly in future years as cloud and multi-cloud adoption increases.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa Holdings shares leapt 3.54% in today’s trade to close at $14.03. Lovisa is an Australian jewellery retailer which now has a presence in 15 countries globally.

Lovisa shares are recovering after sliding on Tuesday afternoon after the Reserve Bank of Australia (RBA) lifted rates by 0.5%. Despite plunging by 30% year to date, investors appear to be optimistic the ASX All Ordinaries share can make a recovery.

Morgans has recently placed an add rating and $24 price target on the company’s shares. This is a massive 71% upside on the current share price.

Analysts are optimistic about the company’s global growth plans, as my Foolish colleague James reported. Morgans said: “LOV may just prove to be one of the biggest success stories in Australian retail.”

5E Advanced Materials Inc (ASX: 5EA)

The 5E Advanced Materials share price jumped 4.5% today — the biggest gain of any ASX All Ordinaries share –to finish the day at $3.48. The minerals exploration and production company’s shares jumped 7% in earlier trade before retreating. In contrast, the S&P/ASX 200 Materials Index (ASX: XMJ) slid 2.23% today.

5E Advanced Materials has not released any news to the market today. However, on Tuesday it revealed it has signed a non-binding letter of intent for the supply of boron with Corning Incorporated (NYSE: GLW). The company will work with Corning to develop and supply boron for Corning’s products.

Commenting on the deal, CEO Henri Tausch said: “Today’s announcement marks another key milestone for the company as we have now secured an LOI with one of the largest technical glass manufacturers in the world.”

The post 3 ASX All Ordinaries shares that defied Thursday’s slump to leap higher appeared first on The Motley Fool Australia.

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

More reading

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.

from The Motley Fool Australia https://ift.tt/3AOwEty