Day: July 16, 2022

2 top ASX 200 shares brokers rate as buys

A tattoed woman holds two fingers up in a peace sign.

A tattoed woman holds two fingers up in a peace sign.

If you’re on the lookout for ASX 200 shares to add to your portfolio, then the two listed below could be worth a closer look.

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

Altium Limited (ASX: ALU)

The first ASX 200 share that could be in the buy zone is Altium. It is an electronic design software provider that is best-known for its Altium Designer and Altium 365 platforms. These platforms are regarded as the best in the industry and are used by many of the world’s largest companies for electronic/printed circuit board design. Among its growing user base are the likes of BAE Systems, Microsoft, and Tesla.

In addition, the company has a parts search engine called Octopart that is performing exceptionally well thanks to supply chain disruption. All in all, the company appears well-placed for growth over the next decade. Particularly given the booming internet of things and artificial intelligence markets. These are driving strong demand for electronic design software.

Bell Potter currently has a buy rating and $34.00 price target on Altium’s shares.

CSL Limited (ASX: CSL)

Another ASX 200 share that could be a buy for investors this month is CSL. It is one of the world’s leading biotechnology companies, comprising the CSL Behring and Seqirus businesses. These businesses are leaders in their respective fields – plasma therapies and vaccines.

And while plasma collection headwinds have been weighing on sentiment in 2022, industry data appears to show that collections have finally returned to pre-COVID levels. Combined with the impending blockbuster acquisition of Vifor Pharma and its huge annual investment in research and development, the future looks bright for CSL.

Citi currently has a buy rating and $330.00 price target on the company’s shares.

The post 2 top ASX 200 shares brokers rate as buys appeared first on The Motley Fool Australia.

Inflation pressures and bear market opportunities

According to The Motley Fool’s Chief Investment Officer Scott Phillips, how investors handle their investments right now could have a massive impact on their wealth in years to come.
While many investors will turn to real estate, gold and other commodities in times of inflation, Scott is quick to point out another way…
Get the details now…

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*Returns as of July 1 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 Altium and CSL Ltd. 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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Own Westpac shares? The plan for a $1 billion division sale

A man working in the stock exchange.A man working in the stock exchange.

The Westpac Banking Corp (ASX: WBC) share price ended Friday in the red, down 0.2% to $19.90. It comes as a number of bidders are reportedly lining up to acquire the bank’s investment platform business, when it attempts to sell in August.

Reports have surfaced suggesting Westpac has various finance giants interested, ranging from asset managers and investment banks to private equity.

Westpac’s $1 billion divestment

It’s understood that non-binding bids for the bank’s planned divestment of its investment platform segment have come in at around $1.2 billion.

This was below Westpac’s expectations of around $1.5 billion, The Australian reports.

Meanwhile, the intended sale – planned for next month – is facing inquisitions from a number of players interested in participating in the bid.

Bain Capital and Colonial First State are purportedly interested, while Macquarie Group Ltd (ASX: MQG) and AMP Ltd (ASX: AMP) were reported to be “best-placed to buy the unit”, The Australian said.

The planned sale comes at the same time rival banking giant Australia and New Zealand Banking Group Ltd (ASX: ANZ) looks to acquire accounting software firm MYOB in a $4.5 billion transaction.

ASX-listed banks had a tough day on Friday after US investment banking giant JPMorgan Chase & Co posted weaker earnings overnight and announced it was set to wind back its buyback program. The S&P/ASX 200 Financials Index (ASX: XFJ) ended the day’s trading down 0.39%.

However, the Westpac share price has been on a downward trend for the past 12 months and now rests around 20% in the red over that period (see graph below). It has also fallen 8% so far this year.

TradingView Chart

The post Own Westpac shares? The plan for a $1 billion division sale appeared first on The Motley Fool Australia.

“The worst thing you can do is nothing”

Motley Fool Chief Investment Officer says right now is not the time to sit on your hands…
As inflation eats away at cash balances Scott Phillips reveals three stocks for investors to consider that could help fight rising prices…
… And Westpac Banking Corp isn’t one of them.

Learn More
*Returns as of July 1 2022

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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 recommended Macquarie Group Limited and Westpac Banking Corporation. 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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2 top ETFs tipped as buys by experts for ASX investors

businessman holding world globe in one hand, representing asx etfs

businessman holding world globe in one hand, representing asx etfs

If you’re looking for exchange traded funds (ETFs) to buy, then you may want to look at the two listed below.

These exciting ETFs have recently been rated as buys. Here’s what you need to know:

ETFS S&P Biotech ETF (ASX: CURE)

The first ETF to look at is the ETFS S&P Biotech ETF. This ETF provides investors with exposure to U.S. healthcare biotechnology companies. These are companies that are engaged in the research, development and manufacturing of products based on genetic analysis and genetic engineering. This includes vaccine manufacturers and immunotherapy treatment developers.

Among its holding are promising biotechs such as Arrowhead Pharmaceuticals, Beam Therapeutics, Global Blood Therapeutics, and Twist Bioscience.

Felicity Thomas from Shaw and Partners is positive on the ETF. She recently told Livewire:

I’m going to go with a buy. Look I like to buy ETFs for the long term. We have an ageing population, and what’s the most important thing in the world? Your health. Biotech, healthcare, and life sciences, that’s where you want to be invested over the next couple of decades.

VanEck Vectors MSCI World ex Australia Quality ETF (ASX: QUAL)

Another ETF for investors to look at is the VanEck Vectors MSCI World ex Australia Quality ETF. It provides investors with access to a portfolio of high quality shares outside Australia that pass certain criteria.

Companies deemed to be high quality enough to be included in the fund are the likes of Apple, Mastercard, Microsfot, Nestle, Pfizer, and Visa.

Sarah Gonzales from Apt Wealth is a fan of the ETF. She also told Livewire:

My preferred ETF is the VanEck MSCI International Quality ETF. I think it provides exposure to that quality factor, which tends to outperform in market downturns. It does focus on factors like return and equity, year-on-year growth of earnings and also levels of debt. These are proxies for profitability, earnings variability, and the level of debt of companies. Particularly if we are going into a recession,  I think these are really the factors that I think we should focus on.

The post 2 top ETFs tipped as buys by experts for ASX investors 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

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*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 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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Can the Kogan share price turn over a new leaf in FY23?

Happy couple doing online shopping.

Happy couple doing online shopping.

The Kogan.com Ltd (ASX: KGN) share price has been sold off heavily. It’s down around two thirds in the 2022 calendar year to date. But is this an opportunity?

The e-commerce retailer has been through a lot of volatility since the start of COVID-19. But, it’s currently down more than 30% from the bottom of the COVID-19 crash. In other words, the market seems to be pricing the business as having less favourable prospects now than at the worst point of the pandemic uncertainty.

It’s certainly true that the company’s profitability has significantly reduced.

Let’s look at the FY22 third quarter numbers, which is the most recent update.

Quarterly update

Total gross sales were $262.1 million, which was a reduction of 3.8% year on year. Gross profit fell 11.2% year on year to $41 million. Adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) sank 110.5% year on year to a loss of $0.8 million. Reducing profitability may have had a big impact on the Kogan share price.

Active customers grew 3.6% year on year to 4.1 million, while Kogan First members jumped 264% year on year to 328,000.

Kogan explained that there was a decline in both exclusive brands and third-party brand sales, cycling “extreme growth” in the prior year.

Consumer demand did not meet management’s expectation of continuing growth. It had $193.9 million of inventory at the end of the quarter. The company has an intention to “progressively recalibrate” its baseline level of inventory over the coming year.

Can things get better in FY23?

Management certainly thinks so.

In terms of sales, the business is quite a bit bigger than it was two years ago. FY22 third quarter gross sales were 42.6% higher than the third quarter of FY20.

If Kogan can improve its profit margins, then the profit numbers may look a bit better.

Kogan.com founder and CEO Ruslan Kogan said:

While market conditions are challenging at present, the foundations laid over the last 16 years are holding us in good stead. Our current focus on recalibrating inventory levels and core operational costs is aimed at returning the company to its historical margins and also to position the business for its next phase of growth.

Kogan didn’t spell out what profit margin the business would be aiming for, but a return to profitability could go some way to reassure the market of its future prospects.

Looking at the earnings estimate on CMC Markets, Kogan is expected to return to making a net profit after tax (NPAT) in FY23, with a projection of 6.5 cents of earnings per share (EPS). This puts the Kogan share price at 42 times FY23’s estimated earnings.

The FY24 profit projection is 14 cents of EPS, meaning it’s valued at 20 times FY24’s estimated earnings.

Broker rating

UBS rates Kogan as a sell because of the lower profitability and inventory level. The economic environment could also make it tricky for retailers. There is an ongoing impact on supply chains.

However, the Kogan share price has fallen so much that the price target of $2.90 represents a small rise over the next 12 months.

The post Can the Kogan share price turn over a new leaf in FY23? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Kogan.com Ltd right now?

Before you consider Kogan.com Ltd, 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 Kogan.com Ltd 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 Tristan Harrison 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 Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Kogan.com 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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