Day: December 22, 2022

3 ASX shares I’d buy after each fell by over 30% this year

Three people in a corporate office pour over a tablet, ready to invest.Three people in a corporate office pour over a tablet, ready to invest.

The past year has been a tumultuous one for investors. While the S&P/ASX 200 Index (ASX: XJO) is down by nearly 6%, many individual ASX shares have suffered an even grimmer fate.

While a deep laceration to a share price can be cause for concern, it can also present an opportunity for investors looking to pick up high-quality companies at a discounted price. From my perspective, Christmas has come early for those willing to scoop up some of the less loved corners of the market.

Right now, there are few companies that look rather tantalising at their current prices. With that being said, here are three ASX shares that have fallen by over 30% this year and why I’d consider buying them now.

I’m seeing value in these 3 ASX shares

Codan Limited (ASX: CDA)

The metal detector-making communications company has seen its share price get pummeled this year. Shockingly, shares in Codan have dropped 58% over the course of the year, after already falling sharply from a high of $19.33 in 2021.

With that level of destruction, you might assume this is an unprofitable business… or at best, experiencing a severe cratering in earnings. Instead, Codan posted record revenue and profits in FY22 despite a challenging environment.

Investors are mostly worried about the forward guidance, which projects a possible 45% fall in Minelab sales in FY23. However, I believe Codan could achieve around $390 million in revenue even with a big blow to its detecting division.

Maybe I’m missing something (@ me on Twitter if you think I am)… but the valuation on this ASX share looks too good to ignore — in my opinion — at a price-to-earnings (P/E) ratio of around 7 times.

ARB Corporation Limited (ASX: ARB)

The 4X4 accessories company might be susceptible to a weakening economic environment. As interest rates increase, car loans and mortgages are becoming more expensive, meaning less money spare to deck out the ute.

However, I can’t get over the enviable track record that ARB has built over the years. Earnings have grown at a historical rate of ~23%, management has successfully established a booming export market, and not a cent of debt on the balance sheet.

There could be a touch more downside to play out as car sales potentially decline into 2023. Though, I wouldn’t be foolish enough to try and time the market. This is one ASX share I’d happily nibble away at throughout the year.

The ARB share price is down 52% compared to where it was pre-2022.

Sonic Healthcare Limited (ASX: SHL)

Lastly, this medical diagnostic mastodon is possibly my favourite on the list for dividends. The Sonic Healthcare share price has suffered a 34% retreat during this year, which is significant considering it’s a $14.6 billion company.

The market is wary of how much of Sonic’s earnings are replicable in a post-COVID world. As such, the company now trades on a P/E ratio of around 10 times. I also suspect that Sonic’s earnings might begin to normalise. Despite this, I believe its profits will still hold above pre-COVID levels, and with a much healthier balance sheet.

Currently, Sonic offers a dividend yield of 3.3% at a payout ratio of 33%. I suspect further dividend increases are probable in the future. Discounted valuation, plus decent dividends, and a dominant market position — consider me keenly interested!

The post 3 ASX shares I’d buy after each fell by over 30% this year appeared first on The Motley Fool Australia.

FREE Beginners Investing Guide

Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…

For over a decade, we’ve been helping everyday Aussies get started on their journey.

And to help even more people cut through some of the confusion “experts’” seem to want to perpetuate – we’ve created a brand-new “how to” guide.

Yes, Claim my FREE copy!
*Returns as of November 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Mitchell Lawler has positions in Sonic Healthcare. 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 ARB Corporation and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/i13qR0T

Here are the top 10 ASX 200 shares today

trophy depicting top 10, asx 200 sharestrophy depicting top 10, asx 200 shares

Thursday was another good day on the S&P/ASX 200 Index (ASX: XJO). It closed 0.53% higher at 7,152.5 points.

In the lead today was the S&P/ASX 200 Utilities Index (ASX: XUJ). The sector soared 1.6% as all three of its constituents gained between 1.2% and 1.7%.

Next best was the S&P/ASX 200 Information Technology Index (ASX: XIJ), rising 1.3% following a strong overnight session for the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC).

The Wall Street index rose 1.5% on Wednesday’s session as United States consumer confidence reached an eight-month high.

There was only one sector trading in the red at the end of today’s session. That was the S&P/ASX 200 Materials Index (ASX: XMJ). It fell 0.2% despite BHP Group Ltd (ASX: BHP) officially entering an agreement to buy copper giant OZ Minerals Ltd (ASX: OZL).

So, with all that in mind, which ASX 200 share outperformed all others on Thursday? Keep reading to find out.

Top 10 ASX 200 shares countdown

The top-performing stock on the index today was real estate services business Domain Holdings Australia Ltd (ASX: DHG). It dived 9% on Tuesday after the company released a disappointing trading update.

Today’s biggest gains were made by these shares:

ASX-listed company Share price Price change
Domain Holdings Australia Ltd (ASX: DHG) $2.70 5.47%
Champion Iron Ltd (ASX: CIA) $7.40 4.96%
Pro Medicus Limited (ASX: PME) $56.40 3.91%
Lake Resources N.L. (ASX: LKE) $0.81 3.85%
Nanosonics Ltd (ASX: NAN) $4.44 3.74%
Breville Group Ltd (ASX: BRG) $18.66 3.61%
Seek Limited (ASX: SEK) $21.20 3.52%
NIB Holdings Limited (ASX: NHF) $7.70 3.49%
Lifestyle Communities Ltd (ASX: LIC) $19.19 3.34%
Telix Pharmaceuticals Ltd (ASX: TLX) $7.11 3.34%

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

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

FREE Investing Guide for Beginners

Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…

For over a decade, we’ve been helping everyday Aussies get started on their journey.

And to help even more people cut through some of the confusion “experts’” seem to want to perpetuate – we’ve created a brand-new “how to” guide.

Yes, Claim my FREE copy!
*Returns as of November 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

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 positions in and has recommended Nanosonics and Pro Medicus. The Motley Fool Australia has positions in and has recommended Nanosonics and Pro Medicus. The Motley Fool Australia has recommended NIB Holdings and Seek. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/UQufKey

Here are the 3 most heavily traded ASX 200 shares on Thursday

An office worker and his desk covered in yellow post-it notesAn office worker and his desk covered in yellow post-it notes

It’s been another healthy day for the S&P/ASX 200 Index (ASX: XJO) so far this Thursday. After yesterday’s pleasing gains, the ASX 200 has once again lifted, this time by 0.5% at the time of writing, putting the index at just over 7,150 points. 

Perhaps we’ll get a Santa rally after all this December (although the markets will have to pull a mighty big rabbit out of the hat tomorrow).

But time now to dive a little deeper into the pleasing gains we are seeing. So let’s take stock of the ASX 200 shares currently sitting atop the share market’s trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Thursday

South32 Ltd (ASX: S32)

The first ASX 200 share to check out today is the mining giant South32. A sizeable 9.52 million South32 shares have been traded on the share market thus far this Thursday. We haven’t heard much out of South32 recently, except for ongoing share buyback notices, which could in themselves be boosting volumes.

But it’s more likely that today’s high numbers are a result of the gyrations of the South32 share price itself. South32 initially opened strongly this morning, rising up as high as $4.18 a share. But investors seem to have cooled on the company as the day has gone on. The miner is now flat at $4.10 a share.

Origin Energy Ltd (ASX: ORG)

Next up we have ASX 200 energy utility share, Origin. So far this Thursday, a notable 19.56 million Origin Energy shares have changed owners. There’s been no major news out of Origin today either.

Saying that, yesterday saw a big jump for the company after news of a $9 per share takeover offer became public. Today, Origin shares have bumped higher again, currently up 1.32% at $7.65. It’s this combination that has probably caused the high volumes we are seeing.

Pilbara Minerals Ltd (ASX: PLS)

It will surprise no one that our last ASX 200 share today is lithium producer Pilbara Minerals. A sizeable 39.02 million Pilbara shares have been exchanged on the markets this Thursday. Similarly to South32, it looks as though this volume is a result of some bumpy share price movements on the market today.

Pilbara also opened in the green this morning, rising as high as $3.92 a share. But again, investors seem to have gotten cold feet on this one too. At present, Pilbara shares have fallen into the red, and are currently going for $3.81 each, down 0.78% for the day.

The post Here are the 3 most heavily traded ASX 200 shares on Thursday appeared first on The Motley Fool Australia.

FREE Investing Guide for Beginners

Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…

For over a decade, we’ve been helping everyday Aussies get started on their journey.

And to help even more people cut through some of the confusion “experts’” seem to want to perpetuate – we’ve created a brand-new “how to” guide.

Yes, Claim my FREE copy!
*Returns as of November 7 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/XUnsr3T

Why are ASX 200 tech shares having such a stellar run on Thursday?

Three analysts look at tech options on a wall screenThree analysts look at tech options on a wall screen

It’s a good day to be invested in the tech sector, with many of the market’s favourite S&P/ASX 200 Index (ASX: XJO) technology shares posting notable gains.

It follows a strong overnight session on the tech-heavy Nasdaq Composite Index (NASDAQ: .IXIC) amid better-than-expected United States consumer confidence data.

Right now, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is outperforming most other sectors, gaining 1.3%.

Meanwhile, the ASX 200 has lifted 0.52% to trade at 7,152.4 points.

Let’s take a closer look at the ASX 200 tech shares having a ripper day on Thursday.

What’s going right for ASX 200 tech shares on Thursday?

The ASX 200 tech sector is in the green on Thursday, with shares in Novonix Ltd (ASX: NVX), WiseTech Global Ltd (ASX: WTC), and Xero Limited (ASX: XRO) among its leaders. Here’s how they’re performing right now:

  • The Novonix share price has lifted 2.2% to trade at $1.61
  • WiseTech stock has gained 1.28%, trading at $53.15
  • Xero shares have also climbed today, currently up 1.8% to swap hands for $71.495 apiece

Other strong performers include Block Inc (ASX: SQ2) – up 1.55% – and BrainChip Holdings Ltd (ASX: BRN) – up 1%.

Their gains come on the back of a 1.5% gain posted by the Nasdaq Composite overnight.

The tech-heavy New York indices lifted amid news consumer confidence in the US was at an eight-month high in December after posting back-to-back losses in October and November.

That’s good news for tech shares since they tend to be more growth-focused than their peers in other sectors. The better an economy’s health, the more opportunities for growth exist.

Sadly, the sector’s Thursday gains aren’t enough to pull it back into the longer-term green. The ASX 200 tech sector has tumbled 34% so far this year amid soaring inflation and consecutive rate hikes.

Meanwhile, the broader ASX 200 has dropped 6%.

The post Why are ASX 200 tech shares having such a stellar run on Thursday? appeared first on The Motley Fool Australia.

Billionaire: “It’s the foundation of how I invest in stocks these days…”

Tech billionaire Mark Cuban believes the world’s first trillionaires are going to come from it…

And just like the internet and smartphones before it, this technology is set to transform the world as we know it. It’s already changing the way you work, how you shop… and it’s even helping to save lives — Perhaps that’s why experts predict it could grow to a market defying US$17 trillion dollar opportunity?

If you’re wondering what could be the engine room of the next bull market… You’ll need to see this…

Learn more about our AI Boom report
*Returns as of December 1 2022

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

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 positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/iLhXxRK