Stock Pick

  • Start your investment journey with a $2,500 investment in these ASX shares

    Making a decision at a crossroads

    If you’re just starting out with investing, you may not have tens of thousands of dollars to invest into the share market.

    But I wouldn’t let that put you off starting your investment journey. This is because even small investments can grow into something meaningful over a long enough timeframe thanks to compounding.

    For example, $2,500 invested in the share market each year for 20 years and earning a 10% return would grow into almost $160,000.

    And if you’re able to increase your level of investments as the years go by and your earnings increase, you could grow your wealth materially more.

    But which shares should you start with? I think you would be best looking long term and at companies which have the potential to grow their earnings strongly.

    Two that tick a lot of boxes for me are listed below. Here’s why I would invest $2,500 into them:

    Nearmap Ltd (ASX: NEA)

    I think this growing aerial imagery technology and location data company could be a great place to invest $2,500. Nearmap provides high resolution aerial imagery, city-scale 3D datasets, and integrated geospatial tools to businesses. It has a massive opportunity in a highly fragmented market and looks well-placed to grow it market share significantly over the next decade thanks to its high quality product offering.

    Pushpay Holdings Group Ltd (ASX: PPH)

    Another ASX share to consider investing these funds into is Pushpay. It is a donor management platform provider which is well-positioned to benefit from the digitisation of giving and the shift to a cashless society. It is aiming to capture a 50% share of the medium to large church market in the future, which represents a US$1 billion opportunity. If it delivers on this target, which I suspect it will, then it should drive strong earnings growth over the next decade.

    And here are more exciting shares which could be stars of the future and great options for that $2,500…

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    Learn More

    *Extreme Opportunities returns as of June 5th 2020

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    James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Nearmap Ltd. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Nearmap Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Start your investment journey with a $2,500 investment in these ASX shares appeared first on Motley Fool Australia.

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  • Torpedoed by the Corona Crisis, Can Cruise Lines Recover?

    Torpedoed by the Corona Crisis, Can Cruise Lines Recover?It’s no great secret that cruise line stocks have been some of the biggest victims of the COVID-19 pandemic.From a mid-January high near $52 a share, Carnival Corporation (CCL) stock lost nearly 82% of its value through mid-March! Royal Caribbean (RCL) was about as hard-hit, falling 83% the same time period. And Norwegian Cruise Line (NCLH), perceived to be the weakest of the three big publicly-traded cruisers, lost a staggering 87%.More than just victims of consumers unable to cruise because they were stuck at home under stay-at-home orders, or unable to serve patrons because individual state governments had told them to close their doors, cruise lines were actually forbidden to do what they do — cruise — by order of the federal government, and subjected to a blanket “no sail” order from the U.S. Centers for Disease Control (CDC), instructing them not to leave port before late July.And yet, as state governments across the U.S. began gradually to reopen, investors have begun regaining hope that these cruise lines will in fact resume sailing at some point in the future, even as capital raises by the companies have raised hopes they can remain solvent long enough to wait that long. Thus, since mid-May, observes J.P. Morgan analyst Brandt Montour, “cruise shares are up ~75% vs. the SPX +11%.”Is this a reasonable expectation? And what are the chances that cruise line stocks will go up some more?In Montour’s estimation, the answers to these questions depend on a whole series of factors, chief among them “load factors.” Given the high fixed costs of the cruise business (luxury liners cost a lot of money to build, and then more money to maintain, fuel, and staff), Montour admits that the timing of the CDC lifting its no sail order matters, and the prices cruise lines charge for their tickets matter, and profit margins matter, too — but because it takes a lot of passengers renting a lot of cabins to cover a cruise line’s fixed costs, occupancy rates matter most of all.Currently, cruise lines appear to be betting on a resumption of sailing by late summer (Montour estimates “August/September”) and a return to “near-full occupancy” by 2021. Montour thinks this, too, is a reasonable assumption, given consumers’ demonstrated “surprisingly high risk-tolerance” (see any newspaper headline on summer crowds from the past few weeks) and the apparent “pent-up demand for vacationing … broadly.”Granted, “common sense indicates” that getting back to 100% occupancy rates “will be difficult without a vaccine.” But with more than 100 different coronavirus vaccines now in development, and governments around the world pushing vaccine developers to accelerate their work, the chances look good that something should be available on the vaccine front relatively early next year. And in that case, it’s at least plausible that cruising will resume in 2021, and that occupancy levels could approach 100% as consumers gain more confidence in its effectiveness.Just to be safe, though, Montour is predicting 100% occupancy won’t be reached “across operators” before 2022, and advising investors to “accumulate shares below current levels.” He doesn’t hold out much hope that stock prices will get too much cheaper, however, setting a price target of $20 on Carnival stock (which currently costs $19 and change), $24 price target for Norwegian Cruise (which costs $19.20 now), and $72 stock-price forecast for Royal Caribbean (which currently costs $58).Given these guesstimates, it’s unsurprising that he says J.P. Morgan prefers “RCL and NCLH over CCL.”To find good ideas for stocks trading at attractive valuations, visit TipRanks’ Best Stocks to Buy, a newly launched tool that unites all of TipRanks’ equity insights. More recent articles from Smarter Analyst: * HSBC Resumes Plans To Cut 35,000 Jobs Postponed By Pandemic * Oracle Sinks Post-Earnings As Cloud Push Drags On * Novartis Scores FDA Ilaris Approval For Rare Type Of Arthritis * KKR-Led Consortium Buys 6% Stake In Vietnam’s Vinhomes For $650 Million

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  • Top brokers name 3 ASX 200 shares to sell today

    On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

    Unfortunately, not all shares are in favour with them right now. Three ASX 200 shares that have just been given sell ratings by brokers are listed below.

    Here’s why these brokers are bearish on them:

    Fisher & Paykel Healthcare Corp Ltd (ASX: FPH)

    According to a note out of UBS, its analysts have retained their sell rating but lifted their price target on this medical device company’s shares to NZ$18.20 (A$17.09). While the broker acknowledges that Fisher & Paykel Healthcare will have been benefiting during the pandemic, it doesn’t appear convinced it will be as much as its share price implies. In light of this, it has retained its sell rating, largely on valuation grounds. The Fisher & Paykel Healthcare share price is trading notably higher than this price target at $26.84 this afternoon.

    InvoCare Limited (ASX: IVC)

    A note out of the Macquarie equities desk reveals that its analysts have downgraded this funerals company’s shares to an underperform rating and cut the price target on them to $10.20. Macquarie believes there is a risk of InvoCare falling short of expectations in FY 2020. It notes that its research is indicating that the company is losing market share. In addition to this, it suspects there will be lower deaths during the current flu season because of social distancing initiatives. The InvoCare share price is trading at $11.12 at the time of writing.

    Regis Resources Limited (ASX: RRL)

    Analysts at Ord Minnett have downgraded this gold miner’s shares to a sell rating with a $4.10 price target. According to the note, the broker made the move on valuation grounds after a strong share price gain over the last three months. Prior to today, the Regis share price was up over 130% in the space of just three months thanks to a strong gold price. Regis’ shares are currently changing hands for $5.08.

    Those may be the shares to sell, but these are the shares that analysts have given buy ratings to…

    3 “Double Down” Stocks To Ride The Bull Market

    Motley Fool resident tech stock expert Dr. Anirban Mahanti has stumbled upon three under-the-radar stock picks he believes could be some of the greatest discoveries of his investing career.

    He’s so confident in their future prospects that he has issued “double down” buy alerts on each of these three stocks to members of his Motley Fool Extreme Opportunities stock picking service.

    See the Double Down Stocks

    *Extreme Opportunities returns as of June 5th 2020

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended InvoCare Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

    The post Top brokers name 3 ASX 200 shares to sell today appeared first on Motley Fool Australia.

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