Month: September 2022

Experts name 2 ASX growth shares to buy in October

Broker looking at the share price on her laptop with green and red points in the background.

Broker looking at the share price on her laptop with green and red points in the background.

If you have room in your portfolio for some new additions in October, then you might want to consider the two ASX growth shares listed below.

Both have recently been named as buys by experts and tipped to climb meaningfully higher from current levels. Here’s what you need to know:

IDP Education Ltd (ASX: IEL)

The first ASX growth share that has been named as a buy is language testing and student placement company IDP Education.

IDP is the co-owner of the IELTS test, which is the English test that is trusted by more governments, universities, and organisations than any other. This puts it in a great position to benefit from increasing demand for language testing, particularly given its strong position in key markets like India.

Goldman Sachs is a big fan of the company and is expecting strong underlying system demand to result its stellar earnings growth through to FY 2025. It commented:

IEL is trading c.40% below its 5-yr average P/E premium to the ASX200 Industrials with a forecast 37% FY22-25E EPS CAGR, we remain Buy-rated. We have upgraded EPS in FY23/FY24 by 1.7%/0.8% on the back of the stronger FY22 result, continued strong revenue growth and margin expansion. The balance sheet is in a resilient position with c.A$40mn of net cash to facilitate any bolt-on acquisitions or ramp up in organic investment in new offices and technology.

Goldman has a buy rating and $36.00 price target on the company’s shares.

Life360 Inc (ASX: 360)

Another ASX growth share that analysts have tipped as a buy is Life360.

Its is a technology company that operates in the digital consumer subscription services market, with a focus on products and services for digitally native families.

The company’s flagship product is the Life360 app, which has a whopping 40 million+ active users. It offers families features such as communications, driver safety, and location sharing.

Analysts at Bell Potter are very positive on the company. This is due to its huge total addressable market and material cross selling opportunities following recent acquisitions. It commented:

Life360 has the potential to leverage its large and growing user base to enter new markets and disrupt the legacy incumbents. An example is roadside assistance where Life360 launched a subscription-based product called Driver Protect which disrupted the market and helped enable monetisation of its user base. Other markets Life360 could potentially enter include insurance, item & pet tracking, senior monitoring, home security and/or identity theft.

And while Bell Potter acknowledges that Life360 isn’t profitable yet, which has been weighing on its shares this year, it isn’t concerned by this. The broker points out that the company is “expected to be operating cash flow positive from 4Q2023 and has more than sufficient cash to fund its operations till then.”

In light of this, its analysts see the weakness in the Life360 share price this year as a buying opportunity for investors. Bell Potter has a buy rating and $8.23 price target on its shares.

The post Experts name 2 ASX growth shares to buy in October appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Idp Education Pty Ltd and Life360, Inc. 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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Why did the Qantas share price have a lousy end to the week?

A sad woman sits leaning on her suitcase in a deserted airport lounge as the Qantas share price fallsA sad woman sits leaning on her suitcase in a deserted airport lounge as the Qantas share price falls

The Qantas Airways Limited Limited (ASX: QAN) share price suffered on Friday.

Qantas shares dropped 4.2% and finished the day at $5.02. For perspective, the S&P/ASX 200 (ASX: XJO) fell 1.23% on Friday.

Let’s take a look at what may have impacted the Qantas share price on Friday.

Qantas shares fall

Qantas shares may have dropped on Friday, but they were not alone among ASX travel shares. The Flight Centre Travel Group Ltd (ASX: FLT) share price fell 4.44% today, while Webjet Limited (ASX: WEB) shares lost 4.23%.

ASX travel shares have struggled after airlines in the USA dropped overnight. Qantas, Webjet and Flight Centre all have operations in the USA. The Delta Air Lines Inc (NYSE: DAL) share price fell 3.56% in the USA, while American Airlines Group Inc (NASDAQ: AAL) dropped 3.92%. United Airlines Holdings Inc (NASDAQ: UAL) shares fell 2.98%.

Airlines fell amid Hurricane Ian in Florida, recession fears and pending interest rate rises. Interest rate rises increase the costs for households, potentially limiting spending on travel.

Meanwhile, closer to home, Flight Centre CEO Graham Skroo Turner has leapt to the defence of Qantas despite recent travel woes. In an article in The Australian, Turner said “most in the travel industry” blame border closures and lockdowns for Qantas’ recent service issues. He said:

History will show or has already shown that shutting borders and dictating widespread lockdowns not only were ineffective in stopping COVID-19’s spread but caused enormous societal and collateral damage.

Qantas recently revealed that CEO Alan Joyce received $2.3 million in base salary and other benefits in FY22, 15% more than in FY21.

Qantas share price snapshot

The Qantas share price has slid 11% in the past year, while it has gained 0.2% in the year to date.

In comparison, the ASX 200 has lost 11.7% in the past year and 13% in the year to date.

Qantas has a market capitalisation of nearly $9.5 billion based on the current share price.

The post Why did the Qantas share price have a lousy end to the week? appeared first on The Motley Fool Australia.

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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 recommended Flight Centre Travel Group Limited and Webjet 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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Here are the top 10 ASX 200 shares today

A woman gives two fist pumps with a big smile as she learns of her windfall, sitting at her desk.A woman gives two fist pumps with a big smile as she learns of her windfall, sitting at her desk.

The S&P/ASX 200 Index (ASX: XJO) dumped most of Thursday’s gains today. The index closed 1.23% lower at 6,474.20 points.

That saw it posting a 1.53% week-on-week tumble and a 7.34% fall for the month of September.

Today’s suffering followed a rough session overseas. The S&P 500 Index (SP: .INX) fell 2.1% to a two year low on Thursday while the Dow Jones Industrial Average Index (DJX: .DJI) slipped 2% and the Nasdaq Composite Index (NASDAQ: .IXIC) dumped 2.8%.

It might come as no surprise, then, that the S&P/ASX 200 Information Technology Index (ASX: XIJ) led today’s downfall. The tech sector plunged 2.6% to its lowest point since July on Friday.

Meanwhile, the S&P/ASX 200 Financials Index (ASX: XFJ) dropped 2.3% ahead of an expected rate hike next week.

It wasn’t all bad news, however.

Both the S&P/ASX 200 Materials Index (ASX: XMJ) and the S&P/ASX 200 Energy Index (ASX: XEJ) closed in the green, gaining 0.7% and 0.1% respectively.

So, which ASX 200 share outperformed all others on Friday? Let’s take a look.

Top 10 ASX 200 shares countdown

The index’s top performing share on Friday was newcomer Capricorn Metals Ltd (ASX: CMM). The company was added to the ASX 200 earlier this month.

Its gains today came amid news Macquarie is expecting big things for its future. The broker has tipped the miner’s stock to lift to $3.30, slapping it with an outperform rating, as my Fool colleague James reports.

Today’s biggest gains were made by these shares:

ASX-listed company Share price Price change
Capricorn Metals Ltd (ASX: CMM) $3.00 8.7%
Silver Lake Resources Limited (ASX: SLR) $1.18 7.27%
Regis Resources Limited (ASX: RRL) $1.56 6.85%
St Barbara Ltd (ASX: SBM) $0.74 6.47%
Ramelius Resources Limited (ASX: RMS) $0.715 5.15%
West African Resources Ltd (ASX: WAF) $1.05 5%
Perseus Mining Limited (ASX: PRU) $1.52 4.83%
Northern Star Resources Ltd (ASX: NST) $7.83 4.54%
AGL Energy Limited (ASX: AGL) $6.84 3.64%
Gold Road Resources Ltd (ASX: GOR) $1.28 3.64%

Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes 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.

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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 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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Novonix share price dips lower amid interest rate hike fears

Man sits in front of laptop with head in hands.Man sits in front of laptop with head in hands.

The Novonix Ltd (ASX: NVX) share price struggled on Friday amid losses seen across the ASX technology sector. The company’s shares closed down 2.49% on Friday.

Shares of the battery metals and technology company ended the day at $1.76 each. Earlier today, they reached an intraday high of $1.79. and a low of $1.71.

Today’s price action means its shares hit a new 52-week low, surpassing the previous 52-week low of $1.77 it reached on Wednesday.

The S&P/ASX 200 All Technology Index (ASX: XTX) struggled today, too, ending with a 3.09% loss. It was also a tough day for the broader market, with the S&P/ASX 200 Index (ASX: XJO) closing 1.23% lower.

There was no news from the company today to make sense of the sell-off in its share price. However, some developments have occurred for the company in the recent past. Let’s cover the highlights.

What’s going on with Novonix?

Novonix has had some negative news coverage over the last 10 days, which may have contributed to its share price downfall.

The biggest news came on 20 September with Novonix’s auditor, PriceWaterhouseCoopers (PWC), noting a “material uncertainty” with the company existing as a going concern. as reported by my Fool colleague Zach.

Reasons stated for the uncertainty was the fact that Novonix posted a $71 million loss in its annual report for FY22, along with a $40 million cash outflow, Zach said.

More recently, Novonix could also be feeling the pinch of US jobless numbers coming in lower than expected on 29 September, leading to fears that the Fed will make further rate hikes to tame inflation.

Investors may surmise that the higher interest rates get, the higher the likelihood the Fed will botch the soft landing it has been planning, thus steering them away from riskier investments.

Novonix share price snapshot

Novonix’s share price is down 80% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 13% over the same period.

The company’s market capitalisation is around $878.45 million.

The post Novonix share price dips lower amid interest rate hike fears appeared first on The Motley Fool Australia.

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Motley Fool contributor Matthew Farley 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 Hansen Technologies and Life360, Inc. 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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