Day: July 9, 2022

Here’s why experts 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 growth shares to buy when the market reopens? Well, look no further, listed below are two ASX growth shares that are rated as buys by experts.

Here’s what you need to know about them:

NextDC Ltd (ASX: NXT)

The first ASX growth share to look at is data centre operator NextDC. It has been tipped as a buy by analysts at Goldman Sachs, who believe the company is well-placed for growth thanks to the structural shift to the cloud.

And while the broker acknowledges that growth shares have been out of favour with investors, it believes its digital infrastructure characteristics are hard to ignore. Goldman said:

Although acknowledging the ongoing rotation towards value may impact NXT shares, we believe the company has a compelling growth profile, a proven and profitable business model, and digital infrastructure characteristics that continue to attract significant strategic interest. Hence we re-iterate our Buy (on CL) for NXT.

Goldman Sachs is positive on the company and has a conviction buy rating and $14.20 price target on its shares.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine could be another ASX growth share to buy. This wine giant has been tipped for strong growth by analysts at Morgans.

And with its shares trading at a very attractive level compared to peers, the broker believes now could be an opportune time to make a move. Its analysts said:

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

Morgans has an add rating and $13.93 price target on the company’s shares.

The post Here’s why experts 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

See The 5 Stocks
*Returns as of July 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor James Mickleboro has positions in NEXTDC 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 recommended Treasury Wine Estates 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/q2zyhId

Here are the worst-performing ASX ETFs of FY 2022

A young couple look upset as they use their phones.A young couple look upset as they use their phones.

The financial year that just ended on 30 June was a tough one for ASX shares. Over FY 2022, the S&P/ASX 200 Index (ASX: XJO) lost 10.19%. So it goes without saying that any ASX exchange-traded fund (ETF) that tracks the ASX 200 gave investors a similar loss.

But were there any ETFs that did even worse? Let’s check out the five worst-performing funds of the year.

The 5 worst-performing ASX ETFs of FY 2022

BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC)

Our first laggard is this tech-focused fund from provider BetaShares. ATEC tracks one of the newer ASX indexes in the S&P/ASX All Technology Index (ASX: XTX). It holds many of the ASX’s largest tech shares, including Xero Limited (ASX: XRO) and Carsales.com Ltd (ASX: CAR).

Unfortunately, ASX tech shares were some of the hardest-hit companies last financial year, as we can see this in this fund’s performance. Over FY 2022, ATEC units lost 35.7% of their value.

BetaShares Cloud Computing ETF (ASX: CLDD)

Another BetaShares ETF, CLDD has only been around since February 2021. But it has certainly had a rough time over its short life. As the name implies, this fund focuses on global companies that operate in the cloud computing arena.

You might know some of its larger holdings such as Zoom Video Communications and Netflix. But having such a potent exposure to tech has also hampered CLDD, with this fund losing 35.79% over FY 2022.

BetaShares Global Robotics and Artificial Intelligence ETF (ASX: RBTZ)

Tech is certainly featuring prominently in this list. RBTZ is such an ETF, and one that concentrates on robotics and artificial intelligence companies from around the world. It includes companies such as NVIDIA and Yaskawa Electric Corp. RBTZ took a beating over FY 2022, losing 36.01% for its investors.

ETFS S&P Biotech ETF (ASX: CURE)

A tech ETF of a different kind, this fund from provider ETFS focuses on US biotechnology companies. You’ll find COVID-19 vaccine provider Novavax here, as well as Twist Bioscience and Arrowhead Pharmaceuticals. But CURE investors were left wanting in FY 2022, with this fund going backwards by 40.51%.

ETFS Ultra Long NASDAQ 100 Hedge Fund (ASX: LNAS)

Our final and worst-performing ETF of FY 2022 is an index fund of sorts. LNAS tracks the US NASDAQ-100 (INDEXNASDAQ: NDX), giving investors exposure to 100 of the largest companies on the NASDAQ exchange.

However, LNAS is also leverage, meaning it is designed to amplify the gains or losses of the index it tracks. Sadly for investors, FY 2022 was a negative one for the NASDAQ. And due to LNAS’s leveraged nature, investors suffered a 49.99% loss as a result.

The post Here are the worst-performing ASX ETFs of FY 2022 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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Sebastian Bowen has positions in Nvidia, Netflix and Zoom Video Communications. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netflix, Nvidia, Xero, and Zoom Video Communications. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Netflix, Nvidia, Zoom Video Communications, and carsales.com 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/QgqxP9w

ASX battery metals shares trying to power up after a horror June

Pilbara Minerals share price ASX lithium shares A stylised clean energy battery flexes its muscles, indicating a strong lift in share price for ASX energy companiesPilbara Minerals share price ASX lithium shares A stylised clean energy battery flexes its muscles, indicating a strong lift in share price for ASX energy companies

ASX battery metals shares – once the darlings of the ASX – are trying to make a comeback after their shock June performance.

These shares include miners that produce metals like lithium and nickel, which are key ingredients in batteries.

ASX battery metal shares getting a recharge

The Liontown Resources Limited (ASX: LTR) share price surged 7.37% to $1.02 and the Allkem Ltd (ASX: AKE) share price jumped 5.23% to $10.46 at market close on Friday.

This makes them the third and fifth best performer on the S&P/ASX 200 Index (ASX: XJO) this morning.

These aren’t the only ASX battery metal shares that are shot the lights out today. The Pilbara Minerals Ltd (ASX: PLS) share price finished up at 6.82% at $2.35 and the IGO Ltd (ASX: IGO) share price finished up 3.21% at $9.97.

Powering off in June

The bounce stands in contrast to the horror June for the sector. These shares tumbled between 8% and 16% during that month alone.

There are a few factors that have triggered the sell-off. Fears of a global recession have weighed on commodity prices. Demand for these inputs would slow significantly if economies contract.

Further, ASX battery metal shares were looking overbought as they have rocketed over the past year. Investors may have gotten overexcited about the structural change from electric vehicles (EVs) and battery storage facilities.

Electrification trend intact

But regardless of these headwinds, the global trend towards EVs and battery farms remains intact. The bright outlook is due in no small part to government policies and decarbonisation ambitions.

The more environmentally friendly Labor federal government also has plans to boost EV adoption in this country.

Even if the world experiences a recession, it is unlikely to make much of an impact on battery metals demand over the medium to longer term.

Should you buy ASX battery metal shares?

This means the dip in ASX battery metal shares could be a buying opportunity for more patient investors.

That’s the view of UBS, which sees value in ASX lithium miners despite its cautious stance towards the broader mining sector.

The broker noted that even if record high spot lithium prices were to tumble by up to two-thirds by end of calendar year 2023, several of these miners will still make “exceptional cash flows that fund transformational growth”.

UBS is recommending investors buy the IGO share price, Allikem share price and the Mineral Resources Limited (ASX: MIN) share price.

The post ASX battery metals shares trying to power up after a horror June 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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Brendon Lau has positions in Allkem Limited and Independence Group NL. 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/nL89G61

Why did the ANZ share price plunge 22% in FY22?

A woman dressed in red and standing in front of a red background peers thoughtfully at a piggy bank in her hand.A woman dressed in red and standing in front of a red background peers thoughtfully at a piggy bank in her hand.

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price underperformed the S&P/ASX 200 Index (ASX: XJO) last financial year.

The ANZ share price closed financial year 2022 (FY22) trading at $22.03. That marked a 21.7% fall over the 12 months prior. In comparison, the ASX 200 slipped around 10% over FY22.

So, what dragged on the ASX 200 banking giant last financial year? Let’s take a look.

What weighed on the ANZ share price in FY22?

The ANZ share price suffered amid rising inflation and interest rates in FY22. But it wasn’t all dire for the big four bank.

The good

ANZ announced plenty of exciting news last financial year.

First up, was a $1.5 billion on-market buyback announced as part of its capital management plan. The bank announced the buyback in July and completed the activity in March.

It also stepped into the buy now, pay later (BNPL) space with a new offering available to its credit card customers courtesy of a partnership with Visa.

Finally, the bank underwent a $1 billion capital raise through a capital notes offering in February.

The bad

But, perhaps unsurprisingly, FY22 wasn’t all sunshine for ANZ.

The bank was hit with legal action by the Australian Securities and Investments Commission (ASIC) in May.

The watchdog alleged system errors at the bank saw customers’ bank balances misrepresented. The bank also purportedly charged fees based on the incorrect balances.

Additionally, broader macroeconomic events seemingly weighed on the institution.

The ANZ share price plunged 19.3% over May and June as the Reserve Bank of Australia implemented consecutive rate hikes in an effort to control inflation.

Rising rates generally allow banks the reprice loans, thereby increasing their net interest margins. But it also ups the risk of foreclosures and can weigh on house prices, both of which spell bad news for banks’ home loan books.

And the earnings

Finally, the ANZ share price lifted on the back of the bank’s most recent full and half year results.

ANZ dropped its results for FY21 in October 2021. It posted a 72% increase in statutory after-tax profit and a 65% increase in cash earnings.

Then, in May, the bank released its earnings for the first half of FY22, posting yet another strong result. Its statutory after-tax profits rose 10% over the six months ended 31 March on those of the prior comparable period. It also boasted a 4% increase in cash earnings.

On top of that, ANZ offered shareholders $1.44 in fully franked dividends last financial year – representing a 27% increase on those of FY21.

The post Why did the ANZ share price plunge 22% in FY22? 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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

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 positions in and has recommended Visa. 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/0sNZXOe