Day: July 31, 2022

Top brokers name 3 ASX shares to buy next week

A white and black clock face is shown with three hands saying Time to Buy reflecting Citi's view that it's time to buy ASX 200 banks

A white and black clock face is shown with three hands saying Time to Buy reflecting Citi's view that it's time to buy ASX 200 banks

Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Coronado Global Resources Inc (ASX: CRN)

According to a note out of Goldman Sachs, its analysts have retained their buy rating but trimmed their price target on this coal miner’s shares to $2.15. Although Coronado delivered a second-quarter update that was short of Goldman’s expectations, it remains bullish. This is due to its “compelling” valuation and strong free cash flow generation. The latter is expected to underpin huge dividend payments in the next couple of years. The Coronado Global share price ended the week at $1.41.

Mineral Resources Limited (ASX: MIN)

Analysts at Citi have retained their buy rating and $73.00 price target on this mining and mining services company. Citi is positive on Mineral Resources due to its exposure to iron ore and lithium. Its analysts expect the price of the latter to stay higher for longer thanks to strong demand and tight supply. The Mineral Resources share price was fetching $53.74 at Friday’s close.

Telstra Corporation Ltd (ASX: TLS)

Analysts at Credit Suisse have retained their outperform rating and $4.50 price target on this telco giant’s shares. The broker has been running the rule over the company’s impending Multi Operator Core Network agreement with TPG Telecom Ltd (ASX: TPG). It is expecting the agreement to be accretive to Telstra’s earnings if the ACCC gives the deal its approval. Outside this, the broker is positive on the telco partly due to favourable trends in the key mobile business. The Telstra share price ended the week at $3.89.

The post Top brokers name 3 ASX shares to buy next week 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 Telstra Corporation 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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From Cotton On to Catch: Wesfarmers’ plans to put its acquisition back on track

A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.A man sits in contemplation on his sofa looking at his phone as though he has just heard some serious or interesting news.

Shares in Wesfarmers Ltd (ASX: WES) edged higher on Friday.

This follows the company’s latest release regarding the appointment of a new managing director for its Catch.com.au business.

At market close on Friday, the conglomerates’ shares finished trading at $46.63, up 0.71%.

Wesfarmers draws in Cotton On talent

Investors are bidding up Wesfarmers shares after the company announced it has bolstered its leadership team.

In its release, Wesfarmers advised that experienced retail and e-Commerce executive Brendan Sweeney will become the new managing director for Catch.

Since 2015, Sweeney has headed up the global eCommerce and loyalty division for Australia’s largest global retailer, Cotton On Group.

Serving as group general manager of e-commerce, Sweeney leads the international online strategy across the Cotton On brand portfolio.

Prior to his current role, Sweeney led the strategy function at Coles Group Ltd (ASX: COL), where he led the supermarket’s multichannel offering.

Sweeney has significant e-commerce experience in both Australia and overseas in leading retail e-commerce businesses.

Wesfarmers OneDigital managing director and frequent commentator, Nicole Sheffield said:

Under OneDigital, Catch is transitioning to a broad-based Australian marketplace offering, focused on brands customers know and love.

Brendan has significant experience leading large-scale ecommerce and retail investment programs and will spearhead this transformation. He will also lead the Fulfilled by Catch program, a multimillion-dollar investment in cutting-edge fulfilment centres and delivery technology to drive faster delivery for Catch and other Wesfarmers retail business.

Acquired by Wesfarmers in 2019 for $230 million, Catch has recently moved into the Wesfarmers OneDigital division under Nicole Sheffield.

Sweeney is expected to begin the role in late October.

Wesfarmers share price snapshot

Since the start of 2022, the Wesfarmers share price has continued to tread lower to post a loss of 21%.

The company appears to have been impacted by inflationary pressures as well as the weakened economic environment.

Its shares hit a 52-week low of $40.03 on 17 June before regaining some lost ground in the weeks after.

Wesfarmers commands a market capitalisation of around $52.87 billion.

The post From Cotton On to Catch: Wesfarmers’ plans to put its acquisition back on track 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 Aaron Teboneras 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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Have Woolworths shares been a market-beating investment over the past 5 years?

Woman thinking in a supermarket.Woman thinking in a supermarket.

The Woolworths Group Ltd (ASX: WOW) share price is one of the most well-known ASX 200 blue chips on the share market.

In addition to its presence in the top 10 largest ASX 200 shares by market capitalisation, Woolworths is also one of the most active companies in Australians’ everyday lives, thanks largely to its dominance of the Australian grocery market.

But being an everyday presence doesn’t guarantee a successful investment. So let’s take a look at how the Woolworths share price has performed in recent years compared to the S&P/ASX 200 Index (ASX: XJO).

To more accurately gauge the absolute returns of the ASX 200 (including dividend returns), let’s use an ASX 200 index fund, the iShares Core S&P/ASX 200 ETF (ASX: IOZ).

Over the five years to 30 June 2022, this ASX 200 exchange-traded fund (ETF) has returned a total of 38.24%, which works out to be an average of 9.04% per annum.

How have Woolworths shares compared to the ASX 200?

Over the same time frame, the Woolworths share price has risen from $25.54 to $35.60. That’s a cumulative return of 39.39%, or 6.86% per annum on average. But this doesn’t factor in dividend returns, of course. So Woolies has consistently commanded a dividend yield of between 2% and 3% over the past five years.

So if we throw that, plus the full franking that came with it, into Woolies’ average annual return, we would get something just ahead of the index’s return. Perhaps even more so if we account for the spin-off of Endeavour Group Ltd (ASX: EDV) that the company executed last year.

All in all, it seems Woolworths shares have been a slight market-beater over the past few years, even if not dramatically so. But still, no doubt this will come as good news for shareholders.

At the current Woolworths share price, this ASX 200 blue chip has a market capitalisation of $45.61 billion, with a dividend yield of 2.5%.

The post Have Woolworths shares been a market-beating investment over the past 5 years? 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 Sebastian Bowen 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 Warren Buffett can teach you from his top 3 holdings

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

A couple sit in their home looking at a phone screen as if discussing a financial matter.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

There’s a reason Warren Buffett is often regarded as one of — if not the — greatest investors to ever live: He’s very good at it. Tens of billions of dollars good. Due to his success, people often look to his portfolio (via his company Berkshire Hathaway) to influence many of their investing decisions.

Berkshire Hathaway’s portfolio is loaded with blue chip stocks, including its top three holdings: Apple, Bank of America, and Coca-Cola. They each represent 41.3%, 10.2%, and 7.2% of Berkshire Hathaway’s portfolio, respectively (as of March 31, 2022).

If you’re wondering why a company with 50+ holdings has 58.7% of its portfolio in three stocks, it’s because blue chip stocks have stood the test of time and proven to be great long-term investments, regardless of broader economic conditions.

Blue chip companies find a way to survive

For a company to be considered blue chip, it must be worth billions and be one of the top leaders in its sector, and you don’t usually get to that point unless you have lots of resources. Resources that come in handy during bear markets, recessions, and everything in between. Warren Buffett has always preached long-term investing, and part of that is understanding that rough economic times are inevitable, and if companies can’t survive those, they’re likely not very good long-term investments.

Since the 1980s, Apple, Bank of America, and Coca-Cola have made it through Black Monday (1987), the dot-com bubble crash (late ’90s/Early ’00s), the Great Recession (2008), and the early stages of the COVID-19 pandemic (2020). Not only have they made it through, but they’ve also been valuable investments since then.

During the dot-com bubble in 2000, Apple traded at around $150 (the price at the time, not today’s price after stock splits through the years) and dropped as low as $13 in 2002. It’s since provided some of the greatest returns we’ve ever seen in stock market history.

From November 2006 to March 2009, Bank of America’s stock dropped over 94%. Over the next decade, the stock increased by more than 750%. In early 2020, Coca-Cola saw its stock price plunge by more than 36%. In the little over two years since then, the stock has increased by more than 60%.

Keep your eyes on the long-term prize

It can be hard to convince yourself to focus on the long term when you’re seeing your portfolio drop right before your eyes during bear markets and rough periods in the stock market, but it’s necessary. If you’re investing for the long term — and you should be — you have to believe the companies you’re investing in will find ways to adjust to the times and produce great results in the long run.

One thing that Apple, Bank of America, Coca-Cola, and lots of other blue-chip companies have in common is they find a way to adapt to broader economic problems they didn’t themselves create. Apple didn’t cause the dot-com bubble, Bank of America wasn’t the main culprit in the Great Recession, and Coca-Cola didn’t cause a global pandemic. Yet each time, they had the resources available to adapt and weather the storm.

That’s why, like Warren Buffett, you should rely on blue chip companies to represent the bulk of your portfolio. There’s no such thing as a foolproof investment, but blue chip stocks are as good as it gets.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post What Warren Buffett can teach you from his top 3 holdings 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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Bank of America is an advertising partner of The Ascent, a Motley Fool company. Stefon Walters has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), long January 2024 $47.50 calls on Coca-Cola, long March 2023 $120 calls on Apple, short January 2023 $200 puts on Berkshire Hathaway (B shares), short January 2023 $265 calls on Berkshire Hathaway (B shares), and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple and Berkshire Hathaway (B shares). The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.



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