Stock Pick

Month: October 2022

  • 3 dates that could influence the US stock market in October

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

    us shares, united states share prices, wall street, US stock market, American shares, American stock market, US business person

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

    If you’ve been following the US stock market even casually this year, you know there’s one factor above all that’s been roiling Wall Street: inflation.

    Inflation is near a 40-year high, clocking in at 8.3% year over year in August, and those persistent price increases have led the Federal Reserve to raise interest rates faster than it has in at least a generation. On Sept. 21, the Fed raised the federal funds rate another 75 basis points, its third such hike in a row. That, along with bearish commentary from Fed Chairman Jerome Powell, sent the stock market into free-fall to close out September. In just eight trading sessions from Sept. 20 to Sept. 30, the S&P 500 sank 7%. Higher interest rates tend to be bad for stocks, both because they make future earnings less valuable and make bonds more attractive by comparison.

    In October, it shouldn’t come as a surprise that any news that could influence the Fed’s future rate hike plans is likely to move the stock market. Though it won’t deliver its next interest rate decision until early November, there are three events in particular that investors will want to watch this month.

    1. The September jobs report (Friday, Oct. 7, 8:30 a.m. ET)

    The monthly jobs report from the Bureau of Labor Statistics, officially known as the Employment Situation Summary, is closely watched even in a stable economy. In the current one, it takes on extra importance.

    The jobs report may be the best barometer of the overall health of the economy. Despite high inflation and the Fed’s aggressive fiscal tightening, the unemployment rate has remained near record-low levels under 4%, and job growth remains strong. In August, the economy added a solid 315,000 jobs, following an even stronger 526,000 new jobs in July.

    Normally, investors like to see strong growth in the labor market, but in the current environment, their priorities are a bit different. Since the Fed is likely to keep raising interest rates until inflation cools, any sign the economy is cooling should be received well by investors. It may seem ironic, but since the market narrative is focused on the Fed, a strong jobs report is likely to push stocks lower, while a weak one should give the market a boost.

    2. The September Consumer Price Index report (Thursday, Oct. 13, 8:30 a.m. ET)

    With inflation dictating the Fed’s moves, the monthly CPI report has become the government’s most influential data release. Inflation actually cooled off somewhat in July and August, largely due to falling oil prices, but the August inflation reading didn’t fall as much as expected. Core inflation, which excludes the more volatile food and energy categories, also remained elevated, up 0.6% from the prior month.

    In the wake of that worse-than-expected August report, the S&P 500 plunged 4.3% on Sept. 13, and the September reading could cause a stock swing of similar magnitude. The good news is oil prices continued to fall in September, easing some price pressures. There’s also a good chance year-over-year numbers will fall since they’re lapping the 0.4% month-over-month and 5.4% year-over-year increases from Sept. 2021. However, this time, Wall Street will be focused on the month-over-month change.

    Friday’s jobs report could also influence estimates for the CPI.

    3. JPMorgan Chase’s Q3 earnings report (Friday, Oct. 14, 8:30 a.m. ET)

    The big banks will kick off earnings season in mid-October. As financial institutions, they tend to have their fingers on the pulse of the economy, and no quarterly update from the sector is more closely watched than that of JPMorgan Chase (NYSE: JPM).

    It’s the No. 1 bank in the country by assets and is a leader in a wide range of financial businesses, including credit cards, mortgages, commercial banking, and investment banking. Among the metrics that investors will be paying attention to in the upcoming report are its loan growth, loan loss reserves (or provision for credit losses), and credit card sales volumes.

    However, there’s another reason investors will be tuning into JPMorgan’s earnings call. CEO Jamie Dimon is one of the most respected business leaders in the country, and he isn’t afraid to share strong opinions on the economy. On a client call in August, Dimon said there was only a slim chance the U.S. would avoid a recession, and he also suggested there was a 20% to 30% possibility the economy would experience “something worse” than a recession. This next earnings call will give him a chance to elaborate on that forecast, among other topics.

    Given his longtime stewardship of the nation’s largest bank, Dimon has as good of a sense as anyone of what’s happening in the economy. If he forecasts doom and gloom, and if JPMorgan’s numbers disappoint, the stock market is likely to take a hit as a result.  

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

    The post 3 dates that could influence the US stock market in October appeared first on The Motley Fool Australia.

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    Jeremy Bowman has no position in any of the stocks mentioned. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase. 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.

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

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  • PolyNovo share price surges 13% on record quarter

    a doctor in a white coat makes a heart shape with his hands and holds it over his chest where his heart is placed.

    a doctor in a white coat makes a heart shape with his hands and holds it over his chest where his heart is placed.

    The PolyNovo Ltd (ASX: PNV) share price is having a stellar day on Thursday.

    In early afternoon trade, the medical device company’s shares are up 13% to $1.66.

    Why is the PolyNovo share price rocketing higher?

    Investors have been bidding the PolyNovo share price higher today after the company released a strong trading update.

    According to the release, PolyNovo achieved its first ever $5 million sales month during September. This underpinned record first quarter sales of $12.5 million, which is an increase of 73.3% over the prior corresponding period.

    The key driver of the company’s growth was its US business, which reported record quarterly sales of $10.4 million. This was up 71.3% over the prior corresponding period and driven by a 61.3% increase in constant currency sales and favourable exchange rates.

    Also supporting PolyNovo’s growth was an 84% increase in rest of the world (ROW) sales to $2.1 million.

    No details were provided on margins or profitability.

    Management commentary

    PolyNovo’s chairman, David Williams, was pleased with the company’s performance during the quarter. He said:

    By focusing on hiring the right talent and expanding our commercial footprint, we are confident of building a Global leader in Soft Tissue Regeneration based in Australia. However, while the growth trajectory is clear and exciting, month to month sales are still lumpy.

    The company’s chief executive officer, Swami Raote, echoed this sentiment. Raote said:

    Our results are a vindication of surgeon recognition of consistent outcomes, better patient experience along with hospital systems acknowledgement of lower complexity and cost associated with NovoSorb BTM. I am pleased with how our teams are now beginning to translate our burn heritage and supremacy into trauma and other acute surgical soft tissue reconstruction opportunities. PolyNovo has always been focused, responsible and capital efficient in delivering results and I look forward to accelerating our global impact.

    The post PolyNovo share price surges 13% on record quarter 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 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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  • What’s the outlook for ASX 200 mining shares in Q2?

    two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.two men in hard hats and high visibility jackets look together at a laptop screen that one of the men in holding at a mine site.

    ASX 200 mining shares have been on an interesting journey in 2022, whipsawing in a wide range between highs and lows.

    The S&P/ASX 300 Metals and Mining Index (ASX: XMM) has held a 14.2% gain over the past 12 months, despite tracking 1.6% lower this year to date.

    Meanwhile, various global factors – both geopolitical and macroeconomic – continue to drive hefty price swings in the broader commodity sector.

    Baking all this in, the question now is what is the outlook for ASX 200 mining shares?

    Commodity demand to slow, or heat up?

    Analysis on the direction of the broad commodity sector is mixed.

    Those at investment bank UBS forecast commodity demand will slow in the coming six months.

    This is primarily due to softening in demand from China. UBS analysts also said “prices for most commodities are still above cost support levels” and, thus, haven’t priced in a recession.

    Despite this, there are numerous selective opportunities around, according to UBS.

    In a recent note to clients, the analysts said lithium shares continue to represent good value within the ASX 200 materials space.

    UBS has buy ratings on IGO Ltd (ASX: IGO), Mineral Resources Ltd (ASX: MIN), and Allkem Ltd (ASX: AKE).

    Meanwhile, the Refinitiv CRB Commodity Equity Index (CRBQX) has recovered from a key low point and is now shifting higher, regaining momentum.

    As seen in the chart below, the index has pulled back sharply in the second half of 2022.

    TradingView Chart

    In the meantime, Brent Crude oil has fallen from its previous high of 8 June at US$120/Bbl to now trade at $93.8/Bbl. It has rallied from lows in recent weeks and remains up 15% for the year.

    According to a note to clients from investment company Price Futures Group, it all points to lower diesel and gasoline supplies.

    “The mantra we’ve been seeing in recent weeks is the economy is slowing and oil prices were down because of peak demand,” it said.

    However, it added, “These numbers seem to be holding up a lot better than people would think.”

    Meanwhile, in the ASX 200 energy space, AGL Energy Ltd (ASX: AGL) is now trading steady at $7.28 a share. The Origin Energy Ltd (ASX: ORG) share price is up 1.35% at $5.64 and Santos Ltd (ASX: STO) is 1.25% higher to $7.705 in today’s session so far.

    All three shares are in the green this year to date and have made a strong recovery from recent weakness earlier in the year.

    The post What’s the outlook for ASX 200 mining shares in Q2? 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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  • ANZ share price best-value buy of the ASX 200 big four banks right now: expert

    Happy man at an ATM.Happy man at an ATM.

    The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price represents the best-value buy out of the S&P/ASX 200 Index (ASX: XJO) big four banks, according to one expert.

    The ANZ share price is $24.46 at the time of writing, 0.16% lower than its previous close.

    For comparison, the ASX 200 is currently up 0.07%, while the S&P/ASX 200 Financials Index (ASX: XFJ) has slipped 0.18%.

    So, what might make the smallest of the big four banks a better buy than its peers? Let’s take a look.

    ANZ represents best value of big four banks: expert

    The ANZ share price represents better value than those of the three other ASX 200 big four banks, Baker Young managed portfolio analyst Toby Grimm says.

    Indeed, the stock offers the lowest price-to-earnings (P/E) ratio while its dividends outpace those of its peers, the analyst said, courtesy of The Bull, as he labelled ANZ shares a buy.

    ANZ posted 223.8 cents of earnings per share (EPS) over the 12 months ended 31 March. That sees it trading with a P/E ratio of 10.8x at the time of writing.

    The smallest of the bunch has also offered investors $1.44 per share in dividends over the 12 months just been.

    That leaves the bank boasting a 5.88% dividend yield. That is, again, the best of the big four banks.

    And if you think that’s all Grimm likes about the ANZ share price, you’d be mistaken. He continued, as per The Bull:

    The decision to expand core operations via the Suncorp Bank acquisition reduces risk and supports medium term growth.

    As it announced in July, ANZ is planning to acquire Suncorp Group Ltd (ASX: SUN)’s banking division for $4.9 billion.

    Speaking on the purchase, ANZ CEO Shayne Elliott said, “this will result in a stronger, more balanced bank for customers and shareholders”.

    Finally, Grimm tips net interest margin (NIM) expansion will likely underpin the bank’s full-year earnings, set to be released later this month.

    The Reserve Bank of Australia has hiked interest rates to 2.6% this year.

    While such hikes present certain risks to banks and their loan books, they also allow them to reprice their loan offerings, thereby increasing their profits.

    ANZ share price snapshot

    Sadly, the ANZ share price has been underperforming its big four bank peers this year.

    The stock has dumped nearly 12% since the start of 2022. It’s also trading 10% lower than it was this time last year.

    Meanwhile, the ASX 200 has fallen 10% year to date and 6% over the last 12 months.

    The post ANZ share price best-value buy of the ASX 200 big four banks right now: expert 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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  • The Fortescue share price has just capped off a disappointing quarter. What now?

    Miner looking at his notes.

    Miner looking at his notes.

    The Fortescue Metals Group Limited (ASX: FMG) share price has been on a rollercoaster over the last few months.

    The ASX mining share has seen declines since June. But could things be about to turn around?

    Fortescue shares dropped 4% between the end of June and the end of September. However, they shed 22% between 8 June and 30 September.

    The S&P/ASX 200 Index (ASX: XJO) only dropped by 1% over the last quarter.

    What’s going on with the iron ore price?

    As a commodity business, Fortescue’s fortune has been – and is currently – linked to the iron ore price.

    A higher iron ore price largely turns into more profit and cash flow for the business because it costs the same to produce 1mt of iron ore no matter what price it fetches.

    While the iron ore price hasn’t collapsed, it has been drifting lower since June, dropping around 20%. This certainly reduces the profit-making potential of the business.

    Not only is the iron ore price important for the company’s iron ore division, but it’s also the source of funding for its green energy endeavours. Fortescue is currently committed to allocating 10% of its net profit after tax (NPAT) to Fortescue Future Industries (FFI).

    Expectations for iron ore

    The resources and energy quarterly report from the office of the chief economist from the Department of Industry, Science and Resources outlines a number of growing global recessionary fears. New COVID-19 outbreaks in China and the weakness in the Chinese housing sector have dampened steel and iron ore demand in recent months.

    It said that weakening demand in China, combined with a cost increase in many raw material inputs, have driven steel mill margins down so far in 2022.

    The spot price for 62% Fe iron ore fines (FOB) for the 2022 calendar year is now forecast to average around US$110 per tonne in 2022. Thoughts about where iron ore is headed could certainly affect the Fortescue share price.

    For the next few years, the iron ore price is expected to fall even further, with the report stating:

    Over the rest of the outlook period, iron ore prices are projected to decline toward (lower) longer-run levels. This follows more modest growth in blast furnace steelmaking (compared with the past decade) from major producers such as the EU, US and China, as the world undergoes a transition to a low emissions environment. Slower growth in blast furnace steelmaking capacity will also take place alongside growing supply from Australia and Brazil. Growing global recessionary fears present further downside risks to iron ore prices over this period.

    From a forecast average price of around US$110 per tonne (FOB) in 2022, the benchmark iron ore price is projected to average US$90 per tonne in 2023 and around US$70 per tonne in 2024.

    Brokers are also pessimistic about iron ore. Reporting by the Australian Financial Review showed that UBS has a sell rating on Fortescue, with China’s zero-COVID policy stifling growth and its property market remaining weak. The price target is just $14.30. It suggests that commodity prices are yet to price in recession.

    JPMorgan recently slightly lowered its price target on Fortescue (and the other iron ore miners of BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) ). It said:

    The iron ore players show strong balance sheets, low near-term multiples, trade below net replacement value, and continue to have high margins.

    However, we believe the China property slowdown and sluggish ex-China steel production combined with more supply in 2023 present downside risks to iron prices. Add to this heightened global recession risks, we feel the space is lacking positive share price catalysts.

    What else could help the Fortescue share price?

    Meantime, FFI continues to work on its plans for making green hydrogen, green ammonia, and so on.

    Positive developments could certainly see the market believe in that side of the business more.

    Fortescue announced earlier this week that it’s investing in a business working on building import facilities for green hydrogen and green energy in Germany.

    The post The Fortescue share price has just capped off a disappointing quarter. What now? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase. 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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  • 3 reasons you should (still) be buying growth stocks right now

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

    Increasing white bar graph with a rising arrow on an orange background.

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

    It’s not an easy time to be a faint-of-heart investor. With the market down by more than 22% this year, we’re falling deeper into the bear market, and growth stocks are leading the descent.  

    Rather than panic selling some of your growth stocks or refusing to consider them altogether, it’s probably in your best interest to be a net buyer, even if the market continues to drop. That idea might sound crazy, but be sure to consider these three reasons to keep investing before writing it off. 

    1. The bear market can’t go on forever

    The market is always changing, and thus relatively short-term downward trends eventually reverse. On average, bear markets last for a year, give or take a month or so. There’s no use in trying to time the market by predicting the very bottom of the bear market and investing at that precise moment, as it’s highly unlikely that you’ll nail the entry point, and you might lose out on growth while waiting on the sidelines for the right time to roll around. So what should you do with the information that bear markets aren’t permanent?

    Continuing to buy growth stocks on the way down is one move that could pay off, and it might even take less time than you’d expect. For example, consider genetics-testing business 23andMe (NASDAQ: ME). Its shares are down by nearly 65% in the past 12 months, underperforming the market significantly. But if you’d bought shares three months ago, you’d be sitting on a nice gain of around 24.5%, driven by better-than-anticipated revenue growth in its consumer genetic information subscription segment during its fiscal Q1 of 2023.

    That doesn’t necessarily mean it’s the right move for you specifically to start buying shares of 23andMe today; after all, one quarter’s results don’t mean much of anything in the long term. The point is that if you buy shares during the bear market, you could be setting yourself up for the possibility of a significant gain eventually. By contrast, keeping your cash out of growth stocks ensures that you won’t get the advantage of any rebounds in their prices, never mind their long-term potential to appreciate in value. 

    2. Buying now means getting more bang for your buck

    The second reason you shouldn’t stop buying growth stocks right now is that doing so would cause you to miss out on the increasingly attractive valuations on the market right now. In 23andMe’s case, its price-to-sales (P/S) multiple was 10.4 at the end of 2021, whereas it’s now five.

    That means if you bought one share of the stock today, you’d be getting more than twice as much revenue compared to buying a share back then. Note that getting more value per dollar compared to before doesn’t mean you’re necessarily getting a good value, as valuations have shifted across the market in that period. 

    Still, if you’re bullish on the company and you want to establish a position to hold for the long term, lower valuations are great news for you. They mean that you don’t need to spend as much money to buy a portion of control of a business’ earning power, and if you’re actually getting a bargain, you might even be setting yourself up for outperformance once the market notices the cheapness. 

    3. Recessions and inflation aren’t an equal threat to every growth stock

    Not all growth stocks are going to be hurt by inflation, nor are they going to be necessarily hurt by an economic recession. And while some will experience more difficulty raising capital, many won’t. So if you can find the businesses that aren’t very affected by the headwinds most investors are focusing on right now, you’ll be setting yourself up for success. 

    In 23andMe’s case, some of its top line might be negatively affected as part of its business model is getting consumers to sequence their genomes with the company’s kit and then offering them frequently updated profiles on some of their genetic risk factors. But it also does lead generation for drug development programs as a collaborator, and its partners are some of the most powerful pharmaceutical companies in the world, like GSK.

    Even if consumers can’t pay for luxuries like genome sequencing services, investors can bet on seeing giants like GSK continue to advance the clinical-stage program that it’s working on with 23andMe. What’s more, it’ll probably continue to fund development of pre-clinical programs it thinks might be worthwhile down the line. And regardless of the economy, other pharmas might try to copy GSK’s lead by working with 23andMe. 

    So even if the stock isn’t a shoo-in for beating the market right now, it isn’t under intense pressure, and it’ll almost certainly survive the macroeconomic whirlwind. In other words, if you were on board with buying its shares before 2022, you probably still should be — and that’s a lesson you can easily apply to many other growth stocks, especially those within the biopharma sector.  

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

    The post 3 reasons you should (still) be buying growth stocks right now appeared first on The Motley Fool Australia.

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    Alex Carchidi has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended GSK plc. 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.         

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

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  • The Paladin Energy share price soared 30% in the first quarter. What’s next?

    happy miner using a computer at a mine, oil or gas site with rigging in the background.happy miner using a computer at a mine, oil or gas site with rigging in the background.

    The Paladin Energy Ltd (ASX: PDN) share price had a strong first quarter of the financial year and managed to clip a 30% gain in the process.

    Shares in the uranium explorer are currently resting at 79.2 cents apiece during morning trade on Thursday, having whipsawed in a wide price range across the length of 2022.

    As seen in the chart below, the share has rallied hard off 52-week lows back on 23 June.

    TradingView Chart

    What’s next for the Paladin Energy share price?

    Energy shares continue to catch a strong bid in the second half of 2022.

    The S&P/ASX 200 Energy Index (ASX: XEJ) has returned around 37% this year to date, having bounced off a sharp low in September.

    Paladin’s key market, uranium, has pushed higher over the past 12 months and gained 18% in that time.

    While there’s been some volatility in pricing, the metal used in nuclear energy has shown a gradual climb upwards this year.

    The price swings have been important for the growth in the Paladin share price, seeing as the company is a price taker on uranium.

    As seen in the chart below, there’s been somewhat of a similarity in movements between the pair over the past 12 months to date.

    TradingView Chart

    This is important for projections for Paladin moving forward. For instance, four out of five analysts covering the share rate it a buy right now, according to Refinitiv Eikon data.

    Meanwhile, forward contracts on uranium for physical delivery have priced uranium at US$49 per pound for February 2023, and US$50 per pound in March 2023.

    At present, it trades at US$49.25 per pound. Furthermore, given Paladin’s lack of profitable earnings at present, valuation is increasingly difficult.

    The company does, however, trade on a price-to-book (P/B) ratio of 3.98 times, roughly in-line with the GICS Metals & Mining Industry’s median of 4.09 times.

    It is also estimated by analysts to deliver a 0.26% forward dividend yield, per Refinitiv.

    Alas, it remains predominantly a uranium story for Paladin, seconded by the market’s breadth of investment into growth-type shares with no profits.

    Meantime, the Paladin Energy share price has climbed 12% in the past 12 months.

    The post The Paladin Energy share price soared 30% in the first quarter. What’s next? 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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  • If I’d invested $1,000 in Sayona Mining shares at the start of 2022, here’s what I’d have now

    A man in a blue collared shirt sits at his desk doing a single fist pump as he watches the Appen share price rise on his laptopA man in a blue collared shirt sits at his desk doing a single fist pump as he watches the Appen share price rise on his laptop

    Shares in S&P/ASX 200 Index (ASX: XJO) lithium-focused newbie Sayona Mining Ltd (ASX: SYA) have rocketed in 2022. Though, the stock wasn’t hot out of the gates.

    It traded flat for much of the first quarter of 2022 before charging to a decade-high in April – a peak that quickly turned into a trough.

    But since then, the Sayona Mining share price has posted a partial recovery. It’s currently trading at 24.2 cents a share.

    So, if one had funnelled $1,000 into the stock at the start of 2022, how would their investment have fared so far? Keep reading to find out.

    Winner, winner

    If I had invested $1,000 into Sayona Mining shares at the start of 2022, I’d imagine I would be pretty happy with my decision.

    Those funds likely would have seen me acquiring approximately 6,896 shares for 14.5 cents apiece.

    And for a moment, that would’ve been a nail-biting buy. At its 2022 low point, Sayona shares were swapping hands for just 11 cents, leaving my imagined holding with a value of around $760.

    Fortunately, things have since turned around for the Sayona Mining share price.

    At the current share price, my imaginary $1,000 investment would have grown to be worth around $1,660.

    That’s one of the best year-to-date returns to be found on the ASX 200 right now. Indeed, the index has dumped 10% since the start of the year.

    But does Sayona Mining’s strong recent performance put its shares squarely in the buy zone?

    Why I’m still not sold on Sayona Mining shares

    Sayona Mining is one of a handful of ASX 200 lithium shares not yet producing the battery-making material.

    The company has a 75% stake in the North American Lithium (NAL) operation. A pre-feasibility study looking at the operation’s potential to restart production of lithium carbonate was launched this week. The restart is scheduled to kick off in the first quarter of 2023.

    Upon the restart, an offtake agreement with Piedmont Lithium Inc (ASX: PLL) will come into effect. That will allow Piedmont to buy 113,000 metric tons of spodumene concentrate or 50% of the operation’s production annually, whichever is larger.

    The company also revealed another pre-feasibility study was launched at the Moblan Lithium Project yesterday. Sayona Mining holds a 60% stake in the project.

    It’s also exploring a number of lithium and gold prospective projects in Australia and Canada.

    With all that in mind, Sayona Mining shares can be seen to promise much potential.

    However, I would personally be more inclined to invest in profitable ASX 200 lithium shares.

    Lithium is expected to boom in the near future and ASX 200 lithium favourites such as Pilbara Minerals Ltd (ASX: PLS) and Allkem Ltd (ASX: AKE) are already cashing in on the ‘white gold’.

    I like that these companies face fewer development risks than upcoming producers. I would also argue they might have more potential to profit from an expected peak in lithium prices, tipped to occur in 2023.

    The post If I’d invested $1,000 in Sayona Mining shares at the start of 2022, here’s what I’d have now 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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  • Why is the Woodside share price having such a top run today?

    Happy man standing in front of an oil rig.

    Happy man standing in front of an oil rig.

    The Woodside Energy Group Ltd (ASX: WDS) share price has been a solid performer on Thursday.

    In morning trade, the energy producer’s shares are up 2.5% to $34.70.

    This means the Woodside share price is now up over 50% since the start of the year.

    Why is the Woodside share price pushing higher again today?

    Investors have been scrambling to buy the company’s shares again on Thursday after OPEC+ announced a much-speculated production cut.

    At a time when the global economy needs cheaper oil, the oil cartel decided to put profits first and cut production by 2 million barrels per day from November.

    Unsurprisingly, this led to oil prices extending their positive run during overnight trade.

    According to Bloomberg, the WTI crude oil price was up 1.5% to US$87.82 a barrel and the Brent crude oil price was up 1.8% to US$93.50 a barrel.

    This has lifted the Woodside share price, as well as the shares of peers Santos Ltd (ASX: STO) and Origin Energy Ltd (ASX: ORG).

    The response

    US President Joe Biden has been calling for cuts and so was disappointed with OPEC’s decision. A White House statement said:

    The President is disappointed by the shortsighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine. At a time when maintaining a global supply of energy is of paramount importance, this decision will have the most negative impact on lower- and middle-income countries that are already reeling from elevated energy prices.

    The White House also advised that he will now look at reducing OPEC’s control over energy prices.

    The President is also calling on U.S. energy companies to keep bringing pump prices down by closing the historically large gap between wholesale and retail gas prices — so that American consumers are paying less at the pump. In light of today’s action, the Biden Administration will also consult with Congress on additional tools and authorities to reduce OPEC’s control over energy prices.

    Judging by the performance of the Woodside share price today, investors don’t appear to believe that OPEC’s influence will diminish any time soon.

    The post Why is the Woodside share price having such a top run 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 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 Bank of Queensland share price got 25% upside baked in?

    A young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptopA young woman sits at her desk in deep contemplation with her hand to her chin while seriously considering information she is reading on her laptop

    The Bank of Queensland Limited (ASX: BOQ) share price has struggled year to date, but one analyst is tipping its fortunes to turn around.

    Bank of Queensland shares have lost nearly 14% so far this year. For perspective, the S&P/ASX 200 (ASX: XJO) has fallen 8.45% in the year to date.

    Let’s check the outlook for the Bank of Queensland share price.

    Significant upside

    Analysts at Citi are optimistic about the Bank of Queensland share price. Citi has put a buy rating and a $8.75 price target on the regional bank’s shares. This is a 26% upside on the current share price of $6.93.

    Analysts are predicting cost synergies from the Members of Equity Bank (ME Bank) acquisition to be supportive of earnings growth. However, Citi also noted mortgage loan growth could slow amid interest rate rises.

    The Reserve Bank of Australia (RBA) lifted rates by 0.25% on Tuesday. However, the market had been expecting a rate rise of 0.5%.

    In more good news for shareholders, Citi is predicting Bank of Queensland will dish out a fully franked dividend per share of 46 cents in FY22.

    Meanwhile, in FY23, Citi is predicting Bank of Queensland will deliver a fully franked dividend of 50 cents per share.

    Bank of Queensland delivered an interim dividend of 22 cents per share earlier this year.

    The company is due to release its full-year financial results for the 2022 financial year on 12 October.

    Share price snapshot

    Bank of Queensland shares have shed nearly 27% in the past 12 months, but have climbed 4.52% in the past week.

    For perspective, the ASX 200 has lost nearly 6% in the past year.

    Bank of Queensland has a market capitalisation of about $4.48 billion based on the current share price.

    The post Has the Bank of Queensland share price got 25% upside baked in? 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 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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