Day: July 7, 2022

Analysts name 2 ASX 200 blue chip shares to buy

A man with a yellow background makes an annoncement, indicating share price changes on the ASX

A man with a yellow background makes an annoncement, indicating share price changes on the ASX

If you’re wanting to build a strong portfolio, owning a few blue chips could be a good starting point.

Blue chips are generally large companies that have been operating for many years, have stable cash flows, and experienced management teams. This tends to make them lower risk options and a good foundation to build a portfolio from.

But which blue chip shares should you consider buying? Two that analysts rate highly are listed below:

CSL Limited (ASX: CSL)

The first blue chip ASX 200 share to look at is leading biotechnology company CSL.

It is the name behind the CSL Behring plasma therapies business and the Seqirus vaccine business. In addition, the company is in the process of acquiring Vifor Pharma for $16.4 billion.

Vifor Pharma has a focus on iron deficiency, nephrology, and cardio-renal therapies. It also has a research and development (R&D) pipeline that complements CSL’s existing R&D activities and should be supportive of long term growth.

Citi is bullish on the company and has a buy rating and $330.00 price target on its shares. It said:

With plasma collections now back to pre-pandemic levels, we expect the market to shift its focus to the strong underlying plasma product demand. This should lead to strength in the CSL share price.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 blue chip share that could be a top option for investors is Wesfarmers.

It is the company behind retail brands such as Bunnings, Kmart, and Priceline Pharmacy, and a collection of chemicals businesses. Combined with its strong management team and equally strong balance sheet, which provides further M&A opportunities, the future looks bright for Wesfarmers.

Morgans certainly believes that to be the case. So much so, it has add rating with a price target of $58.40. It commented:

We continue to see WES as a long-term, core portfolio holding with a strong mix of businesses, highly regarded management team and a healthy balance sheet.

The post Analysts name 2 ASX 200 blue chip shares to buy 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

See The 5 Stocks
*Returns as of July 7 2022

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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 CSL Ltd. The Motley Fool Australia has positions in and has recommended 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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Here are 2 top ETFs to boost your portfolio

ETF written with a blue digital background.

ETF written with a blue digital background.

Exchange traded funds (ETFs) continue to grow in popularity with investors and it isn’t hard to see why.

ETFs give investors easy access to a large number of different shares that they wouldn’t ordinarily have access to. This can be a great way to invest diversely on a limited budget.

With that in mind, listed below are two ETFs that could be top options for investors today:

Betashares Global Sustainability Leaders ETF (ASX: ETHI)

The Betashares Global Sustainability Leaders ETF could be an ETF to consider. This popular ETF gives investors exposure to large global stocks that have been identified as “Climate Leaders.”

BetaShares highlights that the ETF brings together positive climate leadership screens with a broad set of ESG criteria. It feels this offers investors a true-to-label ethical investment solution. Among the shares that you’ll be investing in are the likes of Adobe, Apple, Home Depot, Nvidia, Toyota, and Visa.

Shaw and Partners’ Felicity Thomas is a fan of this ETF and recently rated it as a buy. She told Livewire: “This is one of my favourites, so it’s definitely a buy for me. I really like that they do positive carbon screening.”

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF for investors to consider is the Vanguard MSCI Index International Shares ETF.

It is one of the most popular ETFs on the Australian share market. That’s not overly surprising given that the Vanguard MSCI Index International Shares ETF provides investors with exposure to over 1,500 of the world’s largest listed companies. All through just a single investment. This makes it a great way to instantly diversify a portfolio.

Among the companies you’ll be owning a slice of with this ETF are giants such as Apple, Johnson & Johnson, Nestle, Procter & Gamble, and Visa.

The post Here are 2 top ETFs to boost your 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

See The 5 Stocks
*Returns as of July 7 2022

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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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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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Up 33% in a week, what’s helping the Imugene share price higher?

Two happy scientists analysing test results.Two happy scientists analysing test results.

The Imugene Limited (ASX: IMU) share price has steamed ahead in the past week following positive media coverage and the appointment of a new executive director.

Imugene shares have soared 33% since market close on 30 June and are now trading at 24 cents.

So why has the Imugene share price soared higher this week?

New executive scientist

Imugene is an immuno-oncology company developing treatments to activate the immune system of cancer patients.

Early this week, Imugene advised it has appointed a new executive director and clinical scientist.

Dr Sharon Yavrom, with close to 20 years of industry experience, has now commenced in the role. She has taken the lead role in multiple clinical trials for cancer treatments in the past.

Commenting on the appointment, managing director and CEO Leslie Chong said:

We are excited to welcome Sharon to the Imugene management team. She is a well-respected and highly skilled clinical scientist.

Her experience with emerging pharmaceutical companies and oncology therapeutics makes her an ideal addition to our leadership team as we bring our clinical pipeline to fruition.

Imugene also received positive coverage on Sydney’s 2GB radio this week. Chong spoke to the outlet about its immunotherapy for stomach cancer. She highlighted that the treatment increased survival rates in patients. Speaking on the trial, she told 2GB:

It most certainly was a success…we have a patient that is going on 900 days of living.

On 27 June, the company reported the results of a phase 2 trial for the use of HER-Vaxx to treat advanced gastric cancer. The trial showed a median overall survival of 13.9 months for patients treated with HER-Vaxx and chemotherapy. This compared to a survival rate of just 8.3 months in those patients who only received chemotherapy treatment.

Imugene share price snapshot

Imugene shares have lost 28% in the past year, however, they have jumped 41% in the past month.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has shed nearly 10% in the past year.

Imugene has a market capitalisation of about $1.4 billion based on its current share price.

The post Up 33% in a week, what’s helping the Imugene share price higher? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Imugene Limited right now?

Before you consider Imugene Limited, 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 Imugene Limited 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.

See The 5 Stocks
*Returns as of July 7 2022

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Motley Fool contributor Monica O’Shea 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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What’s the outlook for ASX 200 dividend shares in FY23?

Australian dollar notes rolled into bundles.

Australian dollar notes rolled into bundles.

The last six months has seen ASX share market volatility flare up. Are things looking up for S&P/ASX 200 Index (ASX: XJO) dividend shares, or is there worse to come?

There are plenty of businesses in the ASX 200 known for paying large dividends.

Names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), Rio Tinto Limited (ASX: RIO), National Australia Bank Ltd (ASX: NAB), Fortescue Metals Group Limited (ASX: FMG), Australia and New Zealand Banking Group Ltd (ASX: ANZ), Woodside Energy Group Ltd (ASX: WDS) and Westpac Banking Corp (ASX: WBC) may spring to mind.

Some readers may have realised that these are many of the largest businesses on the ASX.

On the whole, the ASX 200 is known for paying a larger dividend yield than many other indices.

So let’s have a look at the outlook for some of these segments of the market.

Banks

The big four ASX banks have a large collective position in the ASX 200.

In the context of rising interest rates, it’s widely expected that central banks increasing rates will help bank net interest margins (NIMs).

The NIM is an essential bank profitability measure because it shows how much profit a bank is making compared to the cost of that funding money. One of the main costs for banks is the interest they pay to savers with savings accounts.

However, while the NIM may rise, some brokers such as Macquarie suggest that banks could suffer from lower lending growth as well as higher bad debt charges.

But, brokers like Macquarie do think that the big four ASX banks can grow the dividend over the next couple of financial years.

Resources

The outlook for each commodity and ASX mining share can be different. But, miners can generate strong cash flow, turning them into leading ASX 200 dividend shares.

However, the future may be becoming a bit more uncertain for BHP, Fortescue and Rio Tinto as the iron ore price falls, with Chinese demand seemingly not coming back strongly (yet) after the COVID-19 lockdowns.

Some brokers like UBS are not convinced. UBS is neutral on Rio Tinto and BHP, with price targets implying there won’t be material capital growth over the next 12 months. It is neutral on Fortescue as well, though the price target is $18.70 – this is a potential upside of around 10%.

Inflation and interest rates

The investment environment has become trickier with inflation and supply chain difficulties impacting many areas of the economy, while interest rate hikes can have negative impacts on asset values.

It will be interesting to see what happens next, though there are other ASX 200 dividend shares I’d be personally more interested in including Wesfarmers Ltd (ASX: WES) and Telstra Corporation Ltd (ASX: TLS).

The post What’s the outlook for ASX 200 dividend shares in FY23? 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

See The 5 Stocks
*Returns as of July 7 2022

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Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. 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 positions in and has recommended Telstra Corporation Limited and Wesfarmers Limited. The Motley Fool Australia has recommended 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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