Day: July 26, 2022

Analysts name 2 ASX growth shares to buy in August

A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.

A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.

Looking for growth shares to buy in August? Listed below are two that have recently been named as buys and tipped to generate strong returns for investors.

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

NEXTDC Ltd (ASX: NXT)

The first growth share that could be a buy in August is leading data centre operator, NextDC.

The team at Morgans is bullish on the company due to its analysts’ belief that NextDC is well-placed for long term growth. This is thanks to the strong market position its world class data centre network has carved out for itself over the last decade, the industry’s significant barrier to entry, and its expansion opportunities.

Morgans commented:

We retain our Add recommendation and highlight that NXT remains our preferred pick given substantial structural growth, quality management, significant barrier to entry and, in our view, improving competitive advantage with regional/edge sites.

We see a clear pathway for long-term growth, substantially higher EBITDA and material free cash flow, over the medium term.

Last week, Morgans retained its add rating with a $13.01 price target. This compares favourably to the latest NextDC share price of $11.60.

TechnologyOne Ltd (ASX: TNE)

Another ASX growth share that is rated highly is enterprise software provider TechnologyOne.

The team at Goldman Sachs is bullish on the company due to its strong position in defensive end markets such as government, health and community services, and education.

And thanks to its shift to a software-as-a-service (SaaS) model and its UK expansion, the broker believes the company is well-placed to deliver strong earnings growth over the medium term and even in the current environment.

It commented:

In our view TNE is well on its way to becoming a pure SaaS business, with high recurring revenue and expanding margins (post FY22) providing visibility into medium-term earnings growth. With a potentially challenging macro backdrop on the horizon we see TNE as offering resilient earnings given its low churn, mission critical software and defensive public sector end markets

Goldman has a buy rating and $13.30 price target on the company’s shares. This compares to the latest TechnologyOne share price of $11.41.

The post Analysts name 2 ASX growth shares to buy in August 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 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 TechnologyOne 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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Why did the BHP share price have such a cracking session today?

a miner with a green hard hat stands in front of a piece of heavy mining equipment.a miner with a green hard hat stands in front of a piece of heavy mining equipment.

The BHP Group Ltd (ASX:) share price had a top run on Tuesday amid rising commodity prices.

In today’s trade, the mining giant’s share price lifted 2.46% to close at $38.27. In contrast, the S&P/ASX 200 Index (ASX: XJO) jumped 0.26% today.

So why did BHP have such a good day?

Iron ore prices

BHP shares forged ahead today while other mining giants also had a stellar day. The Fortescue Metals Group Ltd (ASX: FMG) share price rose 2.47% while Rio Tinto Ltd (ASX: RIO) shares increased 1.87%.

On commodity markets, iron ore and copper prices jumped overnight amid news out of China.

ANZ economist Madeline Dunk, in a research note, said:

Copper extended recent gains as concerns over the Chinese property sector eased. Real estate stocks in China picked up after it was reported that Beijing will establish a CNY50bn [AU$10.62 billion] fund to support struggling developers.

Sentiment in the iron ore market was also boosted following news on the Chinese real estate fund.

Iron ore prices gained 0.97% to US$104 per tonne in global markets overnight, Trading Economics data shows.

On the Dalian Commodity Exchange in China, iron ore leapt a massive 7.1% to $105.27 per tonne, mining.com reported. That was its strongest level since July 14.

However, Goldman Sachs has warned that China’s property crisis could lower iron ore prices. Goldman cut its three-month target price on iron ore to $70 per tonne and the six-month target to $85 per tonne. This is down from $90 and $110 per tonne, according to Bloomberg.

Goldman said:

This sector segment generates close to a third of China’s steel and iron ore demand, which in turn represents close to a quarter of global seaborne demand.

BHP share price snapshot

The BHP share price has fallen 17% in the past year while it’s climbed about 3.57% year to date.

However, in the past month alone, BHP shares have dropped 4.37%.

For perspective, the benchmark ASX 200 index has lost almost 8% in the last year.

BHP has a market capitalisation of about $193.7 billion.

The post Why did the BHP share price have such a cracking session today? 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 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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Broker names 2 blue chip ASX shares to buy now

A happy team of businesspeople stand in a corporate office.

A happy team of businesspeople stand in a corporate office.

If you’re looking to make some new blue chip additions to your portfolio, then look no further.

Listed below are two blue chip ASX shares that the team at Morgans are bullish on. Here’s what the broker is saying about them:

Treasury Wine Estates Ltd (ASX: TWE)

The first blue chip ASX share that the broker rates highly is wine giant Treasury Wine. In fact, Morgans describes the company as a “key pick” for its analysts.

Morgans is bullish on the company due to its strong brands, positive growth outlook over the coming years, and attractive valuation.

Its analysts commented:

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 Treasury Wine’s shares. This compares to the latest Treasury Wine share price of $12.00.

Wesfarmers Ltd (ASX: WES)

Another blue chip that has been rated as a buy is this conglomerate. Morgans rates the company highly due to the strong brands in its retail portfolio and its talent management team.

The broker also believes that recent share price weakness has created a buying opportunity for buy and hold investors.

Its analysts explained:

WES possesses one of the highest quality retail portfolios in Australia with strong brands including Bunnings, Kmart and Officeworks. The company is run by a highly regarded management team and the balance sheet is healthy. While COVID-related staff shortages are proving to be a challenge, the core Bunnings division (>60% of group EBIT) remains a solid performer as consumers continue to invest in their homes. We see the pullback in the share price as a good entry point for longer term investors.

Morgans has an add rating and lofty $58.40 price target on Wesfarmers’ shares. This compares favourably to the latest Wesfarmers share price of $45.95.

The post Broker names 2 blue chip ASX shares to buy now 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Wesfarmers Limited. 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.

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Here are the top 10 ASX 200 shares today

A young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads news about the top ASX 200 shares todayA young woman wearing a blue blouse with white polkadots holds her phone up with an intrigued and happy look on her face as she reads news about the top ASX 200 shares today

After a wobbly start to the day, the S&P/ASX 200 Index (ASX: XJO) posted a gain for the first time in three sessions after lacklustre performances yesterday and on Friday.

At the end of Tuesday’s trade, the index was up 0.26% at 6,807.3 points.

ASX 200 energy shares lead the way

ASX 200 energy shares drove the market higher today on the back of rising commodity prices.

The Brent crude price rose 1.9% overnight to trade at US$105.15 a barrel. The US Nymex crude price lifted 2.1% to US$96.70 a barrel.

Meanwhile, the price of thermal coal increased 0.3% to reach U$410.25 a tonne.

Materials shares also spent a day in the sun, likely on the back of a gain in iron ore futures, up 0.5% to US$105.01.

On the flipside, ASX consumer discretionary shares and ASX healthcare shares suffered.

The S&P/ASX 200 Consumer Discretionary Index (AS: XDJ) fell 1.7% today. The S&P/ASX 200 Health Care Index (ASX: XHJ) slipped 0.9%.

So, without further ado let’s take a look at which ASX 200 shares outperformed all others on Tuesday.

Top 10 ASX 200 shares countdown

Today’s top-performing ASX 200 share was none other than Zip Co Ltd (ASX: ZIP).

The buy now, pay later player lifted a whopping 20% despite the company’s silence. The Zip share price surged to trade higher than $1 for the first time in two months.

Today’s biggest gains were made by these ASX 200 shares:

ASX-listed company Share price Price change
Zip Co Ltd (ASX: ZIP) $1.025 19.88%
Paladin Energy Ltd (ASX: PDN) $0.665 8.13%
Nanosonics Ltd (ASX: NAN) $4.54 6.57%
Whitehaven Coal Ltd (ASX: WHC) $6.48 6.4%
Lake Resources NL (ASX: LKE) $0.73 5.8%
Telix Pharmaceuticals Ltd (ASX: TLX) $7.31 5.79%
Nickel Industries Ltd (ASX: NIC) $1.085 5.34%
Imugene Limited (ASX: IMU) $0.24 4.35%
Beach Energy Ltd (ASX: BPT) $1.80 4.05%
Mineral Resources Limited (ASX: MIN) $49.22 3.38%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today 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 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 Nanosonics Limited and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Nanosonics 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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