Stock Pick

Month: October 2022

  • Brokers name 2 growing small cap ASX shares to buy

    Contented looking man leans back in his chair at his desk and smiles.

    Contented looking man leans back in his chair at his desk and smiles.

    If you’re a fan of small cap ASX shares, then you may want to add the two shares listed below to your watch list.

    Here’s what you need to know about these buy-rated small cap ASX shares:

    Readytech Holdings Ltd (ASX: RDY)

    The first ASX small cap share to look at is Readytech. It is an enterprise software provider with a focus on underserved market verticals such as higher education and local government.

    Demand for its sticky software continues to grow and has been underpinning strong recurring revenue growth in recent years.

    This continued in FY 2022, with Readytech reporting revenue of $78.3 million. This was up 16.8% on a like-for-like basis and ahead of its guidance of mid-teens organic growth.

    The good news is that Goldman Sachs is expecting more of the same in the coming years. It is expecting Readytech to “continue to grow mid-teens organically while making accretive acquisitions.”

    In light of its bullish view, Goldman currently has a buy rating and $4.60 price target on its shares.

    Silk Laser Australia Limited (ASX: SLA)

    Another small cap ASX share that has been tipped as a buy by brokers is Silk Laser.

    It is the operator of one of Australia’s largest specialist clinic networks, offering consumers a range of nonsurgical aesthetic products and services. These include laser hair removal, cosmetic injectables (botox etc), skin treatments, body contouring, and skincare products.

    Demand for Silk’s services has been strong in recent years and continued during the pandemic and then in FY 2022. This and recent acquisitions helped the company deliver a 91% increase in sales to $162.7 million.

    And while the current economic environment could be difficult for consumer spending, management remains positive on the future and “expects to continue its growth trajectory in FY23.”

    Wilsons is a fan of the company. The broker currently has an overweight rating and $3.62 price target on its shares.

    The post Brokers name 2 growing small cap ASX shares to buy 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 Readytech Holdings Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended SILK Laser Australia Limited. The Motley Fool Australia has recommended Readytech Holdings Ltd and SILK Laser Australia 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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  • 2 exciting tech ETFs for ASX investors to buy before the market rebounds

    A woman on a green background points a finger at graphic images of molecules, a rocket, light bulbs and scientific symbols as she smiles.

    A woman on a green background points a finger at graphic images of molecules, a rocket, light bulbs and scientific symbols as she smiles.

    If you’re wanting to invest in the tech sector before the market rebounds, then the exchange traded funds (ETFs) listed below could be worth considering.

    Here’s why they could be great options right now:

    BetaShares Asia Technology Tigers ETF (ASX: ASIA)

    The first tech ETF to look at is the BetaShares Asia Technology Tigers ETF. It gives investors easy access to ~50 of the largest technology companies that have their main area of business in Asia.

    These companies, that are known known as Tigers (hence the ETF’s name), include well-known players such as Alibaba, Baidu, Infosys, JD.com, Samsung, and Tencent Holdings. In addition, there are lesser known companies (to Westerners) such as Kuaishou Technology, Meituan Dianping, and Pinduoduo included in the fund that make many Australian tech companies look absolutely tiny.

    Pinduoduo, for example, is an e-commerce platform that connects distributors with consumers directly through an interactive shopping experience. This allows shoppers to team up to buy items in bulk at lower prices. It has an active customer base closing in on 1 billion.

    VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

    Another tech ETF to consider next week is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors exposure to many of the largest companies involved in video game development, eSports, and gaming related hardware and software.

    There are a number of high quality, growing companies that you’ll be owning with the fund. These include game developers Activision Blizzard, Roblox, Take-Two, and Electronic Arts, and graphics processing unit (GPU) developer Nvidia.

    In respect to Roblox, it is the game developer behind the eponymous Roblox online metaverse platform and game creation system. At the last count, Roblox had 52 million daily active users.

    The post 2 exciting tech ETFs for ASX investors to buy before the market rebounds 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 BetaShares Asia Technology Tigers ETF and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. 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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  • This is the biggest concern for crypto investors heading into the new quarter

    a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.a man weraing a suit sits nervously at his laptop computer biting into his clenched hand with nerves, and perhaps fear.

    Crypto investors managed to escape much of the pain in the last quarter that afflicted the market in the first six months of the year as markets repriced in the face of fast-rising inflation and interest rates.

    Not that most digital tokens shot the lights out.

    But many, like Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH), did manage to outperform the S&P/ASX 200 Index (ASX: XJO) in Q1 FY23.

    Of course, that’s all virtual water under the bridge.

    The question on cryptocurrency investors’ minds now is what to expect in the quarter ahead.

    The biggest concern for crypto investors

    For some expert insight into that answer, we turned to Josh Gilbert, market analyst at eToro, and Ray Brown, head of marketing at CoinSpot.

    Josh Gilbert said that inflation figures out of the United States, the world’s biggest economy, will play a critical role in determining the returns from cryptos in Q2.

    “The biggest concern for crypto investors moving into this quarter is that inflation continues to stay at stubbornly high levels,” he told The Motley Fool.

    “If this is the case, the US Federal Reserve will likely hike rates more aggressively in November and December or continue raising rates into 2023.”

    The pain in crypto and equity markets from the aggressive central bank tightening to bring down inflation, however, comes with a virtual silver lining.

    Gilbert said this is “expected to de-risk markets” and “hopefully allow more volatile assets like cryptos to perform better”.

    However, until the market has some clear indications of an improving macro picture, he expects cryptos will “continue trading in the tight range we have seen in the last month”.

    Institutional support

    Despite a big retrace in digital token prices in the first half of the calendar year, corporate interest in the space remains fairly robust.

    According to Gilbert:

    Institutional investment into crypto and blockchain technology is still happening, despite market weakness. The bear market may have stopped enterprises from adding crypto to their balance sheets, yet we continue to see names from Blackrock to Gucci and tech behemoths such as Alphabet investing billions into blockchain, Web 3.0 and DeFi innovation.

    He added that “the foundations are being laid even during a bear market to help these assets thrive when the market upturn eventually arrives”.

    Mainstream crypto adoption on the radar

    Ray Brown agreed that the outlook for crypto in Q2 will be heavily influenced by rates.

    “Factors like high inflation and continued interest hikes could see investors remain conservative,” he told us.

    “But if practical uses for the new, environmentally-friendly Ethereum blockchain continue to appear – and gain mainstream adoption – investors hope to see movement in the market.”

    Ethereum, if you’re not aware, underwent a major change in September, switching from a proof-of-work to a proof-of-stake protocol. This sees the blockchain using 99% less electricity.

    Brown also pointed to the crypto trial program the Reserve Bank of Australia (RBA) is launching in the last month of Q2 as something that could impact the market:

    The RBA is in the process of identifying a use case for a central bank digital currency in Australia. A trial program is commencing in December 2022 that will continue through to Q4 of the 2023 financial year.

    It’s unclear what the precise outcome of this pilot will be. But the growing volume of research into crypto use cases, coupled with inevitable regulatory changes, seems to indicate further adoption of cryptocurrency-based solutions in Australia is on the horizon.

    Then there’s the world’s richest man. Elon Musk, known to have a major influence on crypto prices like Dogecoin (CRYPTO: DOGE) with a single tweet, again looks locked into buying Twitter.

    “With Elon Musk also returning to his US$44 billion Twitter deal and his support towards investing in crypto, there is also speculation that he will add tipping and payment functions to Twitter, enabling users to send crypto,” Brown said.

    The post This is the biggest concern for crypto investors heading into the new quarter appeared first on The Motley Fool Australia.

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    Motley Fool contributor Bernd Struben 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 Bitcoin and Ethereum. The Motley Fool Australia has positions in and has recommended Bitcoin and Ethereum. 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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  • Down 50% so far this year, have Magellan shares got further to fall?

    A young woman slumped in her chair while looking at her laptop.A young woman slumped in her chair while looking at her laptop.

    After a shocker year, shares of Magellan Financial Group Ltd (ASX: MFG) are on the precipice of falling even further.

    The share finished the session on Friday at $10.67, bringing losses for the year to date to 50%, and 67% for the past year.

    As such Magellan has failed to recover its pandemic losses and now trades at its lowest mark in almost 10 years, as seen below.

    Also shown is Magellan’s performance against the benchmark S&P/ASX 200 Index (ASX: XJO) over the same time period.

    Note, in particular, the split in performance between Magellan and the benchmark from the onset of the pandemic in February 2020.

    TradingView Chart

    Is there more downside for Magellan?

    Magellan shares were initially rocked by the shock double-departure of the company’s CEO Brett Cairns, followed by co-founder and director Hamish Douglass.

    After an internal crisis period, a new CEO and a fresh set of strategies emerged, including a strategic review, and a planned share buyback to prop up the share price.

    Despite the efforts, monthly outflows from Magellan’s various investment vehicles have remained high over the past year.

    In its funds under management (FUM) update released yesterday, the group reported $3.2 billion in institutional outflows from 31 August–30 September 2022.

    Notes show one client redeeming $1 billion of capital alone. This was coupled with a $1.8 billion outflow of retail investment funds as well.

    In fact, Douglass had even sold more than 760,000 of his Magellan shares by July 2022, according to mandatory filings made with the Australian Securities and Investment Commission (ASIC).

    Adding to that, the fund’s performance has been lumpy, with the previously outperforming infrastructure fund falling behind its benchmark by 1.7% in September.

    Those at investment bank UBS have been following the fund’s numbers and reckon there’s more downside to come.

    UBS analysts, led by Shreyas Patel, trimmed the broker’s price target by another 5% to $9.80, reiterating their sell rating on Magellan in the process.

    According to Patel, Magellan’s “core global equity business is at risk of rebasing [down] further”, despite the firm’s upcoming AGM in October.

    UBS joins a number of other firms in its posture on Magellan, with 7 out of 10 brokers rating it a sell right now, with the remaining 3 saying to hold, per Refinitiv Eikon data.

    The following table summarises the progression of analyst coverage and consensus price target over the past 3 months, with data provided by Refinitiv Eikon.

    Recommendation  07-Jul-2022 07-Aug-2022 07-Sep-2022 Current
    Buy        
    Hold 2 3 3 3
    Sell 7 6 6 7
    Price Target 07-Jul-2022 07-Aug-2022 07-Sep-2022 Current
    Consensus $12.40 $11.50 $12.00 $10.90
    Change month to month -7.2% 4.3% -9.1%

    The current consensus price target from this list is $10.62, suggesting there’s a little more downside expected for Magellan shares.

    In the meantime, investors lay in wait patiently for the firm’s AGM to be presented later this month. As to whether this will provide any form of retribution on the charts, we will have to wait and see.

    The post Down 50% so far this year, have Magellan shares got further to fall? appeared first on The Motley Fool Australia.

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    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 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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  • Top brokers name 3 ASX shares to buy next week

    Broker written in white with a man drawing a yellow underline.

    Broker written in white with a man drawing a yellow underline.

    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:

    Core Lithium Ltd (ASX: CXO)

    According to a note out of Macquarie, its analysts have retained their outperform rating and $1.70 price target on this lithium miner’s shares. Macquarie notes that Core Lithium has just completed a $100 million institutional placement and the maiden sale of its spodumene direct shipping ore through a digital exchange platform. In respect to the latter, the broker was impressed with the strong price Core received. As for the former, it believes Core Lithium is now well-placed to accelerate its growth. The Core Lithium share price was trading notably lower than this price target at $1.15 at the end of the week.

    Life360 Inc (ASX: 360)

    A note out of Goldman Sachs reveals that its analysts have initiated coverage on this location technology company’s shares with a buy rating and $7.50 price target. Goldman sees a big growth runway ahead for Life360 thanks to its estimated US$12 billion global total addressable market. In addition, its analysts believe that Life360 is reaching a volume and pricing inflection point, with potential structural profitability tailwinds not far away. The Life360 share price was fetching $5.20 at Friday’s close.

    PolyNovo Ltd (ASX: PNV)

    Another note out of Macquarie reveals that its analysts have retained their outperform rating and $1.90 price target on this medical device company’s shares. Macquarie was impressed with PolyNovo’s first quarter sales update and highlights its record performance during September. It appears confident this strong form can continue, particularly given the recent FDA approval of its new MTX product. Macquarie expects this to bolster its offering and diversify its sales. The PolyNovo share price ended the week at $1.75.

    The post Top brokers name 3 ASX shares to buy next week 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 Life360, Inc. and POLYNOVO FPO. 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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  • Has the Betashares Nasdaq 100 ETF been a good buy so far in FY23?

    Four investors stand in a line holding cash fanned in their hands with thoughtful looks on their faces.Four investors stand in a line holding cash fanned in their hands with thoughtful looks on their faces.

    The Betashares Nasdaq 100 ETF (ASX: NDQ) is one of the most popular exchange-traded funds (ETFs) on the ASX, with $2.45 billion of investor money. But, has it performed well in this financial year?

    Firstly, let me tell you what the ETF is about. It tracks the 100 largest non-financial companies on the NASDAQ.

    The returns generated by an ETF are dictated by the returns of the underlying businesses (or assets) it’s invested in.

    For ETFs that are invested in companies in different countries that are priced in different currencies, changes in the exchange rate can impact short-term returns as well. I’ll give a good example of that in a moment.

    Betashares Nasdaq 100 ETF performance

    In the three months to September 2022, the ETF saw its price decline by 0.15%. That compares to the S&P/ASX 200 Index (ASX: XJO), which declined by 1.4%.

    For an Aussie investor, that’s an outperformance of 1.25%.

    However, I think it’s worth pointing out that the actual Nasdaq-100 Index (INDEXNASDAQ: NDX) fell by 4.6% in US dollar terms. This means that for Aussie investors in the ETF, the decline of the Australian dollar against the US dollar helped offset the decline in value of the US shares, in Australian dollar terms.

    There has been a lot of volatility for the biggest names on the NASDAQ as inflation and higher interest rates bite into the valuation of those largely tech and tech-related companies.

    Apple, Microsoft, Alphabet, Amazon.com, Tesla, Meta Platforms and Nvidia are the biggest names in the portfolio and they have all seen big swings in their share prices in recent months.

    What’s happening in October?

    September was the end of the first quarter of the Australian 2023 financial year.

    But we’re already a week into October.

    Since the end of September, the Betashares Nasdaq 100 ETF has risen by 3.8% and the ASX 200 has gone up 4.7%. To provide the full picture, in US dollar terms, the Nasdaq-100 Index has risen 4.7% as well.

    Why do interest rates matter so much?

    Interest rates impact all sorts of things, such as mortgage rates, the cost of business debt and so on. But, it also hurts asset valuations. Legendary investor Warren Buffett once said this about interest rates:

    The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be. So every business by its nature… its intrinsic valuation is 100% sensitive to interest rates.

    The post Has the Betashares Nasdaq 100 ETF been a good buy so far in FY23? appeared first on The Motley Fool Australia.

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    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. 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 Alphabet (A shares), Alphabet (C shares), Amazon, Apple, BETANASDAQ ETF UNITS, Meta Platforms, Inc., Microsoft, Nvidia, and Tesla. 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 positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., and Nvidia. 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 very exciting ASX growth shares experts rate as buys

    Two men look excited on the trading floor as they hold telephones to their ears and one points upwards

    Two men look excited on the trading floor as they hold telephones to their ears and one points upwards

    If you have room for some new additions next week, then it could be worth considering the two ASX growth shares listed below.

    Here’s what you need to know about these buy-rated shares:

    Lovisa Holdings Limited (ASX: LOV)

    The first ASX growth share that experts are tipping as a buy is Lovisa.

    It is a fast-fashion jewellery retailer with a growing network of stores across the world. But Lovisa’s highly experienced management team isn’t resting on its laurels, it sees a material expansion opportunity ahead.

    It is for this reason that Morgans is very bullish on the company. Following its strong FY 2022 result, it commented:

    What was even more remarkable than the result itself was the phenomenal scale of LOV’s ambition. In its own words, LOV is ‘building a global brand’, which will involve the development of a global presence that we believe will far out scale the 651 stores in the portfolio today.

    The momentum of growth is expected to increase in FY23 and the addition of further new markets, perhaps including Italy and Mexico, appears more than likely. In our opinion, it won’t stop there. Expansion in Hong Kong seems to us to be a precursor to a move into mainland China in due course. And if LOV can prove itself in Italy, the European fashion capital, why not Japan, its counterpart in Asia, further down the track?

    Morgans currently has an add rating and $24.00 price target on its shares.

    Megaport Ltd (ASX: MP1)

    Another ASX growth share that experts rate as a buy is leading global elastic interconnection services provider, Megaport.

    Megaport’s increasingly popular service provides users with an easy way to create and manage network connections. Through the Megaport network, businesses can then deploy private point-to-point connectivity between any of the locations on Megaport’s global network infrastructure.

    And with the structural shift to the cloud continuing, the team at Goldman Sachs believes the company is well-placed to benefit from increasing demand and higher spending on enterprise networking. It recently commented:

    MP1 is benefiting from its first-mover advantage, and two structural tailwinds that accelerated through covid-19, including: (1) The adoption of public cloud & multi-cloud usage; and (2) The growth in Networking as a Service (NaaS). The opportunity for further growth is immense (GSe A$129bn p.a. spent on fixed enterprise networking across MP1 geographies).

    Goldman Sachs has a buy rating and $10.30 price target on its shares.

    The post 2 very exciting ASX growth shares experts rate as buys 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 MEGAPORT FPO. The Motley Fool Australia has recommended Lovisa Holdings Ltd and MEGAPORT FPO. 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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  • 4 investment truths that have been shattered in 2022

    Young boy looks shocked as he lifts glasses above his eyes in front of a stock market graph. representing three ASX 300 shares hitting 52-week lows todayYoung boy looks shocked as he lifts glasses above his eyes in front of a stock market graph. representing three ASX 300 shares hitting 52-week lows today

    Like any area of life, in investment there are basically accepted rules or truths that have stood the test of time.

    But the chaos of 2022 has some people rethinking whether those axioms should now be challenged.

    One such expert is Fidelity International investment director Tom Stevenson.

    “Expressions like ‘time in the market not timing the market’ become investment adages because their truth endures through the ups and downs of the cycle,” he said in the UK’s The Telegraph.

    “But sometimes, as [former UK prime minister] Jim Callaghan noted about politics in the 1970s, there is a sea change about which we can do nothing, and which is only really clear in hindsight.”

    One such example is back in 1956, when decades-long wisdom was that bonds were a superior investment to stocks.

    According to Stevenson, that year Imperial Tobacco pension fund manager George Ross Goobey dared to make the outrageous claim that shares made better inflation– and risk-adjusted returns than bonds.

    “He was right and the rest is market history.”

    Stevenson is startled to find himself thinking 2022 could be another year in which conventional investment wisdom could be shattered.

    “Looking for the equivalent sacred cows today, I was unsettled to discover just how many things I could list about investing that I used to believe unreservedly and about which I’m now not quite so sure.”

    In 2022, bonds have performed as poorly as shares

    The first axiom in doubt is that dividing your investments between shares and bonds would minimise volatility, thus “helping you sleep better at night”.

    “This year has been a shocking reminder that in certain circumstances (think high inflation and central banks prepared to risk recession to get it under control), both bonds and shares can perform extremely badly at the same time.”

    According to Stevenson, all of 2022 has severely tested the previously “reassuring” notion that when one of the two assets falls, the other rises.

    “Risk-averse investors who have sought the shelter of a traditional balanced fund are quite reasonably asking their advisers what has just hit them.”

    In 2022, gold prices have not risen

    The second idea that could now be consigned to the trash can is gold is a hedge against inflation.

    “This illusion gained traction in the 1970s when the precious metal performed well alongside sharply rising prices,” said Stevenson.

    “But there is more correlation than causality at work here.”

    The actual truth, according to Stevenson, is that gold outperforms when inflation is greater than interest rates and bond yields.

    “Then, the metal is forgiven its most glaring disadvantage — the fact that it does not pay an income.”

    Negative inflation-adjusted returns from gold and cash are associated with times of rampant inflation — but not always.

    “Today’s rapid swing from negative to positive real yields and the associated underperformance of gold this year make the point.”

    In 2022, growth shares have lost the battle

    For more than a dozen years, high growth — and especially technology — shares had zoomed upwards. Many investors and experts attributed this to a structural change in attitudes, priorities and valuation methodologies.

    But the crash this year has quelled the revolution.

    “Investors are once again looking for the bird in the hand that less exciting but steady cash generators and dividend payers can offer,” said Stevenson.

    “Twenty years ago, we were reminded by the dot-com crash that shares on low multiples of earnings or assets, or which paid a high and sustainable income, were worth more than the market often acknowledges. I suspect we are relearning that today.”

    In 2022, China showed it’s not the US

    For many decades, investors saw the liberalisation of the Chinese economy with great enthusiasm.

    The prevailing wisdom was that China would emulate the US’ rise to eventually become the world’s largest economy.

    But 2022 has cast much doubt on whether the journey will be so straightforward, according to Stevenson.

    “Beijing’s recent prioritisation of ‘common prosperity’ over economic growth confirms that China has long since given up slavishly following the western development model.”

    Only a decade ago, the unstoppable rise of the middle class in China and their insatiable appetite for household goods, recreational needs and financial services looked like “a one-way bet for investors”.

    “A property bubble, regulatory squeeze and zero-COVID policy later, things look harder to navigate.”

    The post 4 investment truths that have been shattered in 2022 appeared first on The Motley Fool Australia.

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    Motley Fool contributor Tony Yoo 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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  • Here are 2 ASX dividend shares that experts say are buys right now

    A sophisticated older lady with shoulder-length grey hair and glasses sits on her couch laughing while looking at her phone

    A sophisticated older lady with shoulder-length grey hair and glasses sits on her couch laughing while looking at her phone

    If you’re looking to boost your income portfolio next week, then you may want to look at the shares listed below.

    Here’s why these ASX dividend shares have been tipped as buys by experts:

    Dexus Industria REIT (ASX: DXI)

    The first ASX dividend share for income investors to consider is Dexus Industria. It owns, manages, and develops high-quality industrial warehouses and business parks, and is invested in the operations of Jandakot Airport industrial precinct.

    Management notes that its portfolio is well positioned towards the industrial and logistics sectors. Pleasingly, this is a good thing. It highlights that tenant demand remains strong across the industrial market, supported by Australian retail online penetration increasing.

    Morgans is a fan of the company. Its analysts currently have an add rating and $3.28 price target on the company’s shares.

    They are also forecasting attractive dividends per share of 17.3 cents in FY 2023 and 16.1 cents in FY 2024. Based on the current Dexus Industria share price of $2.56, this will mean yields of 6.75% and 6.3%, respectively.

    Whitehaven Coal Ltd (ASX: WHC)

    Another ASX dividend share that is highly rated is coal miner Whitehaven Coal.

    With coal prices forecast to remain strong for some time to come, the miner has been tipped to deliver bumper profits and free cash flow in the coming years.

    One of those expecting this to be the case is Macquarie. It is bullish on Whitehaven Coal due to sky high coal prices and currently has an outperform rating and $12.00 price target on its shares.

    The broker is also expecting these high prices to underpin big dividends. It is forecasting fully franked dividends of $1.07 per share in FY 2023 and $1.25 per share in FY 2024. Based on the current Whitehaven Coal share price of $10.96, this implies potential yields of 9.8% and 11.4%, respectively.

    The post Here are 2 ASX dividend shares that experts say are buys right now 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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  • Why analysts say these excellent ASX growth shares are buys

    A group of business people pump the air and cheer.

    A group of business people pump the air and cheer.

    If you’re searching for growth shares to buy, then two ASX shares listed below could be worth considering.

    Both have been named as buys by analysts and tipped to have material upside potential. Here’s what they are saying about them:

    Domino’s Pizza Enterprises Ltd (ASX: DMP)

    The first ASX growth share that has been named as a buy is Domino’s.

    It is one of the largest pizza chain operators in the world with a significant presence in the ANZ, European, and Asian regions.

    And while the company is have a difficult time at present, analysts at Morgans believe investors should stick with the company. Particularly given its very positive long term outlook. It commented:

    DMP is the largest Domino’s franchisee outside the US and one of the largest quick-service restaurant companies in the world. It is an affordable option that has performed well historically even in times of inflation or slower economic growth. The engine of DMP’s growth is its ability to roll out new stores all over the world. […] Over the next ten years, DMP expects to grow organically to 7,250 stores in the 13 countries in which it currently operates. This means DMP expects to more than double in size again by 2033, not including any future acquisitions.

    Morgans has an add rating and $90.00 price target on Domino’s shares.

    Xero Limited (ASX: XRO)

    Another ASX growth that could be in the buy zone is Xero. It is a cloud-based accounting platform provider to small and medium sized businesses globally.

    Xero has been on form again this year despite the tough economic environment. For example, in FY 2022 the company reported a 29% increase in revenue to NZ$1.1 billion and a 28% jump in annualised monthly recurring revenue (AMRR) to NZ$1.2 billion. This was underpinned by a 19% increase in total subscribers to 3.3 million thanks to growth in all markets.

    Despite this, the Xero share price has been sold off along with the rest of the tech sector. Goldman Sachs sees this as a buying opportunity for investors. Earlier this year it said:

    Following the recent underperformance (absolute/relative), we see an attractive entry point into what is a compelling global growth story and our preferred large cap technology name in ANZ.

    Since then its shares have fallen even further, which is likely to have left Goldman’s analysts licking their lips. Particularly given their believe that the company is “well-placed to navigate this uncertainty given the stickiness & importance of its software.”

    The broker has a buy rating and $111.00 price target on Xero’s shares.

    The post Why analysts say these excellent ASX growth shares are buys 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 Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended 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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