Month: October 2022

$5,000 invested in these US stocks could make you rich over the next 10 years
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

The new inflation numbers that just dropped certainly have the markets worried about the depth of the recession we could be facing. With the S&P 500 index firmly in bear market territory, down 25% year-to-date, investors are rightly nervous about what it means for stocks.

Yet, history shows that bull markets always follow these corrections. And whereas bear markets are measured in months, bull markets are measured in years. That means sharp downturns are actually the best time to buy stocks for the long-term returns generated for your portfolio.

As Warren Buffett once said, be fearful when others are greedy, and greedy when others are fearful. As long as investors have an appropriate investment horizon — 10 years is usually good — they should not fear bear markets, but look forward to them eagerly as a chance to buy good companies at discounted prices.

If you have $5,000 available, the following two growth stocks are excellent companies to own for years to come.

Apple

Apple (NASDAQ: AAPL) stock is down 22% in 2022 as investors worry about the economy’s impact on consumer spending habits. It’s estimated that App Store sales fell 5% in September, their biggest decline ever, and they are down 2% for the quarter. While that creates near-term headwinds, there is still strong demand for higher-priced iPhone 14 models, and a Piper Sandler survey of teens says Apple’s share of the smartphone market remains near record highs.

One short-term catalyst is Apple’s $90 million stock buyback program, which should help support any earnings weakness. And over the long haul Apple continues striving to introduce new products, such as virtual reality headsets and the long-awaited Apple Car, which it would like to bring to market by 2025.

While some services like the App Store may see lower revenue in the coming quarters, others like iCloud, AppleCare, and even music ought to keep growing. Product sales are stable too, and because Apple has been able to keep its premium pricing intact as demand maintains its upward trajectory, the macroeconomic pressures on the company won’t be as great as they will be on its lower-end rivals.

Investors might also take comfort in knowing that buying Apple stock at these prices means they will be buying the tech giant at prices cheaper than Warren Buffett got when he made the company 41% of Berkshire Hathaway‘s (NYSE: BRK.A)(NYSE: BRK.B) portfolio.

Costco

Another stock buffeted by consumer spending worries is Costco (NASDAQ: COST), whose stock is down 18% this year, and fell again last month despite reporting financial results that beat Wall Street expectations.

Inflation is taking its toll, with September’s numbers coming in hotter than expected. Particularly in the pocketbook items that matter most to consumers — food and fuel — inflation is even higher than the headline print. Utility gas is up 33% over last year, eggs are 30% higher, gas prices are up 18%, chicken 17%, coffee and milk 15% higher, and so on.

Costco has chosen not to raise its membership fees at this time, much to the consternation of some, but that is actually helping drive shoppers to its warehouse clubs and helping to grow sales by double-digit rates. Comparable store sales growth dipped to 8.5% in September, the first time in 28 months they were below 10% (they were still up over 11% in the U.S.). It proves bulk buying of goods is a smart choice in this high-cost period, even if it doesn’t fully insulate the retailer from the ravages of inflation. Gross margins, for example, were 10.5%, down from 11.1%, in fiscal 2021.

However, memberships remain a source of strength for Costco, and consumers are still flocking to the warehouse club. It ended its fiscal fourth quarter last month with 118.9 million cardholders, of which 53.1 million were household members, up 6.5% from last year.

While the economy can always get worse, Costco’s results show the soundness and stability of its business model. It should carry the retailer through the tough times, which makes its stock a solid choice for an investor willing to buy and hold for the long haul.

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

The post $5,000 invested in these US stocks could make you rich over the next 10 years appeared first on The Motley Fool Australia.

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Rich Duprey 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 Apple and Costco Wholesale. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. 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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17 October 2022
Why Baby Bunting, Brickworks, Core Lithium, and Dreadnought Resources are pushing higher
In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a sizeable decline. At the time of writing, the benchmark index is down 1.4% to 6,662.8 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are pushing higher:

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price is up over 2% to $2.74. This appears to have been driven by a broker note out of Morgans today. According to the note, the broker believes that recent share price weakness has created a buying opportunity. Morgans has retained its add rating with a reduced price target of $3.60.

Brickworks Limited (ASX: BKW)

The Brickworks share price is up 2.5% to $22.25. Investors have been buying this building products company’s shares after it was the subject of a bullish broker note. According to a note out of UBS, its analysts have upgraded Brickworks’ shares to a buy rating with a $25.30 price target. The broker made the move after increasing its earnings estimates materially for FY 2023.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up 5% to $1.21. This morning Core Lithium revealed that its managing director Stephen Biggins will step down with immediate effect. With the recent official opening of the Finniss Lithium Mine and appointment of Gareth Manderson as CEO, Biggins has decided it is the appropriate time to exit. Rising lithium prices have also given its shares a boost.

Dreadnought Resources Ltd (ASX: DRE)

The Dreadnought Resources share price is up 5% to 10 cents. This follows the release of an update on drilling activities at the 100% owned Mangaroon project. According to the release, the company has intersected thick rare earth mineralisation in both fresh and weathered material. Managing Director, Dean Tuck, commented: “We are already off to a good start so the next few months should be extremely exciting.”

The post Why Baby Bunting, Brickworks, Core Lithium, and Dreadnought Resources are pushing higher appeared first on The Motley Fool Australia.

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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 Brickworks. The Motley Fool Australia has positions in and has recommended Brickworks. The Motley Fool Australia has recommended Baby Bunting. 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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17 October 2022
Why are these ASX 200 lithium shares smashing it on Monday?
The S&P/ASX 200 Index (ASX: XJO) is having a rough start to the week, but shares involved with one particular material are defying its downturn – lithium.

ASX lithium stocks are leading the index on Monday. Here’s how some of the market’s favourites are tracking:
- The Liontown Resources Limited (ASX: LTR) share price is leading the way, gaining 5.81%
- Core Lithium Ltd (ASX: CXO) is next best, lifting 5.41%
- Lake Resources NL (ASX: LKE) stock has gained 2.26%
- Shares in Sayona Mining Ltd (ASX: SYA) are also up 0.91%
- The Pilbara Minerals Ltd (ASX: PLS) share price, meanwhile, has risen 0.85%
For comparison, the ASX 200 has tumbled 1.45% at the time of writing while the S&P/ASX 200 Materials Index (ASX: XJO) – home to the market’s biggest lithium shares – has fallen 2.38%.

So, what might be driving ASX 200 lithium shares higher on Monday? Let’s take a look.

What’s going right for ASX 200 lithium shares?

All eyes are on the market’s biggest lithium names on Monday as they defy a broader market downturn despite next to no news being released.

However, the value of the battery-making material is said to have hit a new record high.

Chinese lithium prices hit $117,125.64 per tonne today, The Australian reports.

The new peak comes amid rising demand for electric vehicles, driving the call for the lithium needed to make them. Of course, higher lithium prices are generally good news for lithium producers’ bottom lines.

It’s also worth noting it hasn’t been total silence among ASX 200 lithium shares today.

Core Lithium announced its managing director Stephen Biggins’ immediate resignation this morning. Biggins previously planned to stick out the year at the company.

Additionally, not all ASX 200 lithium shares are in the green right now.

The Allkem Ltd (ASX: AKE) share price is down 1.51% at the time of writing.

Meanwhile, those of IGO Ltd (ASX: IGO) and Mineral Resources Limited (ASX: MIN) have fallen 2.15% and 3.13% respectively.

The post Why are these ASX 200 lithium shares smashing it on Monday? 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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17 October 2022
Leading brokers name 3 ASX shares to buy today
With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Baby Bunting Group Ltd (ASX: BBN)

According to a note out of Morgans, its analysts have retained their add rating but slashed their price target on this baby products retailer’s shares to $3.60. While Morgans was disappointed with the company’s recent trading update, it feels the significant share price weakness since the release has created a buying opportunity for investors. Especially given its belief that Baby Bunting has plenty of growth opportunities ahead of it. The Baby Bunting share price is trading at $2.73 this afternoon.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

A note out of UBS reveals that its analysts have retained their buy rating and $85.00 price target on this pizza chain operator’s shares. This follows the release of an update from its US based parent which showed promising same store sales trends globally. In addition, the broker believes that Domino’s is well-placed in the current environment due to its value offering. The Domino’s share price is fetching $56.94 today.

National Australia Bank Ltd (ASX: NAB)

Analysts at Macquarie have upgraded this banking giant’s shares to an outperform rating with an improved price target of $32.25. According to the note, Macquarie has lifted its earnings estimates for the big four banks to reflect margin improvements thanks to higher interest rates. However, the broker sees NAB as the best bank to buy at the moment. In fact, it is the only big four bank that it is positive on. The NAB share price is trading at $30.82 on Monday.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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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 recommended Baby Bunting and Dominos Pizza Enterprises 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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17 October 2022
Looking for the best stocks to buy in a bear market? Here’s Warren Buffett’s advice
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

Since buying his first stock at age 11, Warren Buffett has amassed $90 billion in wealth and become one of the best-known figures in finance. Buffett’s ability to pick winning investments is nothing short of extraordinary, and Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) has achieved immense success under his leadership. In fact, Berkshire stock skyrocketed more than 3,600,000% between 1964 and 2021, and Buffett had racked up more than $177 billion in unrealized gains through Berkshire’s portfolio as of June 30, 2022.

With credentials like that, it’s no surprise that Buffett has become a legend in his own time. Upward of 40,000 people flock to Nebraska each year to attend the annual Berkshire shareholders meeting, eager to hear Buffett — known as the ‘Oracle of Omaha’ — share his thoughts on investing philosophy and the broader economy.

Naturally, Buffett has offered up many pearls of wisdom over the years, but one piece of advice is particularly relevant right now.

Warren Buffett made a big bet in 2007 (and won)

Buffett issued a challenge to the investing world in December 2007. He wagered $500,000 that no professional investor could select a set of five hedge funds — actively managed investment products with high fees — that would outperform a passively managed S&P 500 index fund over the following 10 years.

Only one advisory firm, Protégé Partners, accepted that challenge. The firm tasked five professional investors (each of whom employed dozens of investing experts) with managing one hedge fund a piece. In total, Protégé had 200-plus hedge fund managers bent on beating Buffett.

The bet started in January 2008 — as the S&P 500 was collapsing under the weight of the Great Recession, an event that ultimately erased 56% of its value — and it ran through December 2017. Buffett emerged victorious, and he won by a wide margin. The S&P 500 delivered a total return of 125.8% during that period, while the best-performing Protégé fund was up just 87.7%. It’s worth noting the worst-performing Protégé fund did so poorly it was liquidated in 2017.

An S&P 500 index fund is a great option for most investors

Investors can learn a lot from that story. Buffett beat hundreds of highly-trained professional investors, and he beat them without doing any work. A passively-managed S&P 500 index fund simply mirrors the composition (and, therefore, tracks the performance) of the S&P 500. Meanwhile, Protégé had hundreds of hedge fund managers actively buying and selling investments throughout the 10-year period. They did a lot of work and they achieved a worse result.

That anecdote explains why Buffett has consistently recommended a low-cost S&P 500 index fund for most investors. In 2017, he urged investors to “keep buying [an S&P 500 index fund] through thick and thin, and especially through thin.”

That advice is still relevant today — in fact, it’s especially relevant in this challenging environment. High inflation and rising interest rates have sent the stock market tumbling, and the S&P 500 is currently 25% off its high. That puts the index in a bear market, or a clear example of the “thin” times Buffett previously mentioned, and investors would do well to take Buffett’s advice regarding an S&P 500 index fund.

Another option for investors

Over the past decade, Berkshire Hathaway stock has virtually mirrored the performance of the S&P 500. But Berkshire stock has a five-year beta of 0.89, meaning it tends to rise and fall less dramatically than the overall market. That makes Berkshire stock a reasonable investment option for Buffett fans who find an S&P 500 index fund a little too volatile.

Berkshire has accumulated a number of businesses that operate across several critical industries, including insurance company GEICO, railway operator Burlington Northern Santa Fe, and industrial specialists Precision Castparts and Lubrizol, among others. Berkshire also owns 92% of Berkshire Hathaway Energy, which itself has several subsidiaries involved in electricity and natural gas utilities.

That diversification makes Berkshire financially resilient. Case in point: It has increased free cash flow per share at 6% annually over the past 15 years, despite weathering a couple of recessions during that time. Of course, no company is immune to an economic downturn, but Berkshire’s resilience is an advantage in the current environment.

In addition, the company has more than $105 billion in cash and short-term investments on its balance sheet. That war chest leaves Buffett with plenty of capital to deploy should he come across any bargain investments in the bear market.

Of course, investors don’t have to choose between an S&P 500 index fund and Berkshire. It’s OK to own both — I doubt Buffett would disapprove.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.
The post Looking for the best stocks to buy in a bear market? Here’s Warren Buffett’s advice appeared first on The Motley Fool Australia.

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Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway (B shares). The Motley Fool recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on 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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17 October 2022
Warning: BrainChip shares are being targeted by short sellers
BrainChip Holdings Ltd (ASX: BRN) shares are falling again on Monday.

In afternoon trade, the semiconductor company’s shares are down over 1% to 87 cents.

This means that since the back end of July, the company’s shares have dropped over 31% from $1.27.

What’s going on with BrainChip’s shares?

As some readers would be aware, at the start of each week, I reveal the ten most shorted shares on the Australian share market.

While BrainChip doesn’t feature in the top ten (yet), short sellers have been building larger and larger positions in the company in recent months.

So much so, the most recent data shows that short sellers now have a rather ominous and devilish interest of 6.66%. That’s the equivalent of 116.4 million shares.

Why are short sellers targeting BrainChip?

Unfortunately, there isn’t a short thesis available to explain why short sellers are betting on BrainChip shares crashing lower. However, it isn’t hard to imagine why they are attracted to the company.

The first is the company’s valuation, which currently stands at $1.5 billion. Some may say that this expensive considering BrainChip is generating next to no revenue.

For example, during the first half, the company reported cash receipts of just US$1.4 million and a loss of US$8.5 million. And given how the market has an aversion for loss-making tech shares right now as interest rates rise, it’s quite remarkable that the BrainChip share price is in positive territory year to date.

Short sellers could also have doubts about the company’s technology.

With BrainChip competing against giants such as IBM, Intel, and Qualcomm, which invest billions into research and development, it would be incredible if BrainChip’s small team and tiny budget allows it to create technology that not only outperforms its rivals but leads the industry.

Finally, the company has released a lot of promising announcements over the last 12-24 months, but none appear to have gone anywhere. One of those was an Early Access Program Order from space agency NASA.

It has been almost two years since the order was placed but no longer gets spoken about. In fact, it appears to have ended after just three weeks on 18 January 2021 based on NASA data.

What’s next?

Where the BrainChip share price goes from here, only time will tell.

But it certainly will be interesting watching on from the safety of the sidelines.

The post Warning: BrainChip shares are being targeted by short sellers appeared first on The Motley Fool Australia.

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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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17 October 2022
Star Entertainment share price halted amid $100m fine and casino license suspension
The Star Entertainment Group Ltd (ASX: SGR) share price is on ice as the casino operator’s NSW gaming licence is suspended and a $100 million fine handed down.

The Star share price was put into a trading halt ahead of the release of the NSW Independent Casino Commission’s (NICC) findings this morning. The company said:

The trading halt is necessary as otherwise trading in securities may take place in an uninformed market.

The casino operator’s stock last traded at $2.60.

Let’s take a closer look at what’s going on with the S&P/ASX 200 Index (ASX: XJO) company today.

Star stock halted amid licence suspension and $100m fine

The Star share price remains halted after the NICC revealed it’s taking the company’s casino operating licence away. The licence will be suspended from Friday morning.

It follows a damning enquiry that reportedly heard the casino operator misled regulators, dealt with suspicious junkets, and concealed gambling spending as hotel expenses.

Responding to the Bell Report, Star said it had taken “significant and urgent remedial steps” to retain its licence.

NICC will appoint a manager to allow Star’s Sydney casino to continue operating while the company’s licence is suspended. NICC chief commissioner Philip Crawford said:

If it were not for The Star’s change in attitude and our belief that it is in the public interest to protect the thousands of jobs at risk, there might have been a different outcome.

I’m hopeful incoming CEO Robbie Cooke can apply his experience and leadership skills to guide the company towards suitability under the direction of the manager.

Nicholas Weeks has been appointed as the manager until the NICC can determine if the matters identified in the Bell Review can be rectified and the company can achieve suitability.

The regulator has also slapped Star with a $100 million fine.

The company’s stock will remain halted until Wednesday unless it releases an earlier announcement.

The company is also considering the final version of Queensland’s new casino laws. Star was found unsuitable to hold a casino licence in the state last month.

Star Entertainment share price snapshot

The Star share price has underperformed this year, falling 31% since the start of 2022.

It’s also currently 30% lower than it was this time last year.

Meanwhile, the ASX 200 has fallen 12% year to date and 10% over the last 12 months.

The post Star Entertainment share price halted amid $100m fine and casino license suspension 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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17 October 2022
Is this controversial Ethereum-killer finally a buy?
This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

Tron (CRYPTO: TRX) has always been a polarizing crypto, primarily due to its associations with controversial cryptocurrency entrepreneur Justin Sun, who launched Tron back in 2017. But it’s getting increasingly difficult to ignore the fact that Tron has gained users and posted new transaction activity at an impressive rate throughout 2022. Could Tron finally be ready to stake its claim as a worthy Ethereum (CRYPTO: ETH) rival?

The most recent news that has investors buzzing is the announcement that Tron is now the official blockchain of the Caribbean island nation of Dominica. As a result of this, Tron will be issuing the first-ever government-backed crypto fan token. And Tron will also officially become legal tender in Dominica. There are also suggestions in the crypto community that Tron might leverage this deal to make similar deals around the Caribbean and in Latin America. If so, that would be huge in terms of Tron gaining worldwide market acceptance. So is this controversial crypto finally a buy?

Tron by the numbers

Analyzing Tron is like peeling back the layers of an onion. If you only look at the surface numbers, everything seems fantastic. Tron now has an impressive 115 million users worldwide, and has processed more than 4 billion transactions since it was founded back in 2017. Total Value Locked (TVL), which is a measure of how much activity is taking place on the blockchain, is an impressive $5.5 billion. That ranks Tron No. 2 among all blockchains, trailing only Ethereum.

In terms of overall market capitalization, Tron now ranks No. 15 in the world. It is now bigger than Avalanche (CRYPTO: AVAX), for example, which was once considered to be one of Ethereum’s major rivals. Add in the fact that the price of Tron has been surprisingly resilient in 2022, and it might appear that Tron has finally emerged as a worthy rival to Ethereum, which is down nearly 70% for the year.

Red flags?

But there are definitely some red flags about Tron. For example, there have been persistent concerns about the new Tron algorithmic stablecoin ever since it launched in May. At the time, the new stablecoin was being favorably compared to the algorithmic stablecoin for the Terra (CRYPTO: LUNA) ecosystem. A stablecoin is supposed to avoid crypto market volatility, usually via a peg to a currency like the U.S. dollar. But Terra proved to be anything but stable and it collapsed, wiping out investors. In June, the Tron algorithmic stablecoin briefly lost its peg to the U.S. dollar, causing alarm bells to go off in the heads of crypto investors everywhere. What if Tron was the new Terra?

And then there are all the opaque, behind-the-scenes dealings involving Justin Sun, who continues to be a major influence on Tron. You don’t have to dig very deep to find some very salacious (and potentially defamatory) allegations about Justin Sun that involve the FBI, IRS, and Securities and Exchange Commission. Even if you ignore these claims, there are very real concerns that Tron might be a “security” and not a “cryptocurrency.” As a result, Tron is not available for trading on every major cryptocurrency exchange.

Sun left Tron at the end of 2021 to become Grenada’s ambassador to the World Trade Organization (WTO). This, apparently, is what has led to Tron’s sudden prominence in the Caribbean region in 2022. Sun is continuing to give interviews about Tron and promote it on social media, even while fulfilling his diplomatic duties.

Is Tron a buy?

That’s why I’m discounting the value of the news surrounding Tron’s expansion into the Caribbean and Latin America. I love the idea of creating “fan tokens” for tourism destinations, and it’s exciting that sovereign states around the world are experimenting with cryptocurrencies as legal tender. But somehow, deep down, something just doesn’t add up when it comes to Tron. Maybe it has to do with the fact that Tron seems to be facing an enormous amount of legal and regulatory uncertainty in both the U.S. and China, where it conducted its initial coin offering (ICO).

For now, I cannot recommend Tron as a buy. While the recent price of $0.06 may seem enticing, I think that there are several other Layer 1 blockchain projects that are much better set up to become “Ethereum-killers” in the future. Investing in cryptocurrencies always involves risk and volatility, and investing in Tron — even at a bargain-basement price — seems to come with an extra measure of both.

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

The post Is this controversial Ethereum-killer finally a buy? appeared first on The Motley Fool Australia.

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Dominic Basulto has positions in Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Avalanche and Ethereum. The Motley Fool Australia owns and has recommended Ethereum. 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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17 October 2022
Own Rio Tinto shares? Here’s what to expect from the mining giant’s Q3 update
The Rio Tinto Limited (ASX: RIO) share price is having a tough start to the week.

In afternoon trade, the mining giant’s shares are down 3% to $93.57.

Why is the Rio Tinto share price dropping?

Investors have been selling down the company’s shares today in response to a very poor night of trade for its US listed shares on Friday.

The NYSE-listed Rio Tinto share price dropped almost 5% on Friday night after commodity prices pulled back amid concerns over a looming global recession.

In addition, it appears as though some investors may be nervous ahead of the release of the company’s third quarter update on Tuesday.

Ahead of the release, let’s take a look to see what is expected from the mining giant.

What is expected from Rio Tinto’s Q3 update?

According to a note out of Goldman Sachs, its analysts are expecting a strong quarter from Rio Tinto, with solid production growth across most commodities.

It expects the following:
- Iron ore shipments up 4% quarter on quarter (QoQ) to 83.4Mt
- Alumina production up 4% QoQ to 1,937kt
- Aluminium production up 4% QoQ to 762kt
- Bauxite production down 2% QoQ to 13.8Mt
- Mined copper up 11% to 140kt
- Titanium dioxide slag up 7% to 209kt
The market is even more positive on Rio Tinto’s quarterly performance for a number of commodities.

For example, consensus estimates are for iron ore shipments of 84.5Mt, alumina production of 1,982kt, aluminium production of 776kt, and bauxite production of 14.1Mt.

Outside this, the market will no doubt be keen to hear how inflation is impacting the company’s margins in FY 2022.

Should you invest?

Goldman continues to see a lot of value in the Rio Tinto share price at the current level.

It currently has a buy rating and $113.00 price target on its shares. This implies potential upside of almost 21% for investors over the next 12 months.

The post Own Rio Tinto shares? Here’s what to expect from the mining giant’s Q3 update appeared first on The Motley Fool Australia.

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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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17 October 2022
Are Westpac shares a buy ahead of next month’s full-year results?
Westpac Banking Corp (ASX: WBC) shares are dipping to the downside today amid a broad-based sell-off across ASX shares.

As we head into the afternoon, the major bank’s share price is 0.51% lighter at $23.38. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is carrying a heavy 1.45% fall.

The financials sector is one of the lesser impacted corners of the market today. Though the bank-laden sector is 1% in the red, other areas of the market — such as materials — have been struck with declines of more than 2.5%.

Today, onlookers and holders of Westpac shares might now be contemplating what to do in the lead-up to the company’s FY22 full-year results.

Banking on a solid result

Firstly, Westpac has 7 November earmarked as the day it will release its FY22 numbers to the public.

The information contained in this report could act as a catalyst for the Westpac share price, so investors are paying attention. As of today, that announcement is only three weeks away.

At the moment, expectations for the bank’s financial accounts are relatively rosy. However, this isn’t necessarily a Westpac-only phenomenon.

Instead, the improvement in sentiment likely stems from the affirmation of higher interest rates resulting in improved margins.

This affirmation was provided by Bank of Queensland Ltd (ASX: BOQ) last week upon the release of its full-year report.

Namely, the bank’s net interest margin (NIM) at the end of the financial year slotted in at 1.81%, compared to its second-half average of 1.75%. As a result, analysts — such as those at Goldman Sachs — believe Westpac shares could be in for a similar boost.

As my colleague previously covered, the broker considers Westpac the best bank to benefit from rising rates. As such, the Goldman team has assigned a $27.08 price target to the company, suggesting a further ~15% upside.

Furthermore, Refinitiv Eikon data puts the bank’s FY23 dividend yield estimate at 6%. For income investors, this could be an appetising offer to provide some form of an inflation hedge.

Westpac shares in the rearview

Looking across the big four banks, Westpac shares have been the best ones to hold so far this year.

In contrast to negative returns from the likes of Commonwealth Bank of Australia (ASX: CBA) and Australia and New Zealand Banking Group Ltd (ASX: ANZ), Westpac has climbed 8% into the green.

The only other big four constituent to dish out a positive return has been National Australia Bank Ltd (ASX: NAB). Though, NAB’s share price has appreciated a more modest 5.6% in 2022.

The post Are Westpac shares a buy ahead of next month’s full-year results? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has positions in Commonwealth Bank of Australia. 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 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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17 October 2022