Stock Pick

  • Where should you invest $1,000 in ASX shares?

    Pile of $100 notes, asx 200 shares

    Want to know where to invest $1,000 into ASX shares?

    The ASX has performed strongly since that initial coronavirus share market sell-off. Some share performances have been too strong in my opinion, so I’d leave those ASX shares to one side.

    Investing $1,000 of your hard-earned money is an important job. You don’t want to throw it away on the wrong investments. Only go for the best ASX ideas. 

    Here is a growth idea and a dividend idea:

    ASX growth share: Pushpay Holdings Ltd (ASX: PPH)

    I think Pushpay is one of the most promising ASX shares. It’s an electronic donation business that’s currently focused on the large and medium churches in the US. This is such a large sector that Pushpay thinks this is a $1 billion revenue opportunity.

    The ongoing coronavirus pandemic is terrible. But Pushpay is helping churches through this. The Pushpay technology enables churches to livestream to their congregations. Electronically donating is obviously also on the rise in a period of social distancing.

    Pushpay is expecting that earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) to approximately double over the course of FY21. That would be a very strong result from the ASX share. And that’s just one year. It’s expecting to achieve higher gross margins over time. 

    I’m not expecting Pushpay to become a major player in anything other than the US church sector. But if it could grow into other donation areas, that would further increase its growth potential.

    ASX dividend share: Brickworks Limited (ASX: BKW)

    I think Brickworks is an undervalued ASX dividend share. It owns a large amount of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares which provides reliable earnings and growing dividends

    Brickworks also owns a 50% stake in an industrial property trust along with Goodman Group (ASX: GMG). Industrial properties should be in even more demand due to the rapid shift to ecommerce due to the coronavirus.

    Most people would know Brickworks as a building products business. It’s certainly tough to be in construction right now. But there is plenty of talk of government support for the sector. And demand for construction will return in the future.

    In the meantime Brickworks is making use of the shutdowns to accelerate its plans in the US and it has closed one of its plants.

    Brickworks is trading cheaply compared to its asset value. It hasn’t decreased its dividend for over 40 years and currently offers a grossed-up dividend yield of 5.2%.

    Foolish takeaway

    I think that both of these ASX shares have a strong potential to deliver very good returns over the next few years. Over the next five years I believe that Pushpay could deliver very impressive earnings growth. But Brickworks could provide a very solid dividend as well.

    If I had another $1,000 I’d want to put it into one of these leading ASX shares…

    NEW. The Motley Fool AU Releases Five Cheap and Good Stocks to Buy for 2020 and beyond!….

    Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.

    One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…

    Another is a diversified conglomerate trading over 40% off its high, all while offering a fully franked dividend yield over 3%…

    Plus 3 more cheap bets that could position you to profit over the next 12 months!

    See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.

    CLICK HERE FOR YOUR FREE REPORT!

    More reading

    Motley Fool contributor Tristan Harrison owns shares of Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, PUSHPAY FPO NZX, and Washington H. Soul Pattinson and Company 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 Where should you invest $1,000 in ASX shares? appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/36PxZmU

  • Lufthansa Gains Following Breakthrough on $10 Billion Bailout

    Lufthansa Gains Following Breakthrough on $10 Billion Bailout(Bloomberg) — Deutsche Lufthansa AG shares surged after Europe’s biggest airline overcame most of the barriers to receiving a 9 billion-euro ($10 billion) bailout from the German government.The stock gained as much as 8.3% and was priced 6.6% higher at 9.75 euros as of 9:04 a.m. Tuesday, the first day of trading on the Frankfurt bourse since last week.Barriers to the rescue began to crumble late Friday, with Lufthansa agreeing to hand over operating slots at its main hubs to win European Union backing for the deal. Its supervisory board approved the compromise in a vote on Monday.Lufthansa is seeking emergency aid after the Covid-19 pandemic punctured a decades-long aviation boom, grounding flights and draining cash reserves. The company expects its fleet to be 100 aircraft smaller following the crisis, implying the loss of 10,000 jobs.While investors still need to vote on a package that will dilute their holdings at a meeting on June 25, analysts say they’re likely to grant their approval rather than see Lufthansa slide toward insolvency.The EU still has to approve other aspects of a deal that will make Germany Lufthansa’s biggest shareholder, thrusting the state back into the heart of company privatized with fanfare over two decades ago.Under the compromise with the EU, Lufthansa will reduce its presence in Frankfurt and Munich by four aircraft apiece and surrender enough slots for 12 daily return flights, offering new challengers a toehold at its fortress hubs.Lufthansa will publish first-quarter earnings on Wednesday.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.

    from Yahoo Finance https://ift.tt/3eEJcta

  • Visa Sees Solid Uptick In Spending As Lockdown Eases

    Visa Sees Solid Uptick In Spending As Lockdown EasesVisa (V) has indicated a solid uptick in consumer spending from April to May, as it continues to actively monitor the Covid-19 impact globally.Most notably, in May, total U.S. payments volume declined 5% year-over-year, a 13 percentage point (ppt) improvement over April. Meanwhile debit grew 12% and credit declined 21% year-over-year in May, a 17 ppt and 9 ppt improvement over April, respectively.“The continued distribution of Economic Impact Payments and the relaxing of shelter-in-place restrictions in a number of states are driving these trends” Visa stated.However, recovery in international markets in which Visa processes the majority of transactions lagged the U.S. in May. Across most of Europe, as well as Australia, Canada and Japan, the trajectory so far is comparable to the U.S. India and Singapore are slowly reopening, said Visa, while a few markets, such as New Zealand, Denmark and Chile, have positive year-over-year constant dollar growth in May.Global processed transactions declined 12% in May, a 12 ppt improvement over April. Since April, the mix has shifted to larger ticket transactions.Cross-border volumes excluding intra-Europe transactions declined 45% in May, a 6 ppt improvement over April. Travel related cross-border volumes declined 78% in May while cross-border eCommerce (excluding travel) continued to grow strongly, up 18%. Cross-border volumes including intra-Europe transactions declined 35% in May, an 8 ppt improvement over April.“As we have indicated before, cross-border volumes excluding intra-Europe transactions drive our international transaction revenues” Visa said.Shares in Visa are currently trading up 3.5% year-to-date, and analysts have a bullish Strong Buy consensus on the stock. In the last three months, 18 analysts have published buy ratings vs 5 hold ratings. Meanwhile the average analyst price target stands at $200 (3% upside potential). (See V stock analysis on TipRanks).RBC Capital analyst Daniel Perlin recently bumped up his price target from $195 to $212 (9% upside potential). “Overall volume trends point to a path of stabilization, while the shape of the recovery likely to be more elongated. However, new secular opportunities in ecommerce & accelerated cash to electronic conversion points to solid long-term growth.” he explained.“Our higher valuation is based on our view that V will be able to expand its constituencies, improve its competitive position, and accelerate secular trends as we emerge into a more normalized phase of growth” the analyst added.Related News: Western Union Seeks To Buy MoneyGram; MGI Spikes 32% Amazon’s Jeff Bezos Invests In UK Freight Startup Beacon Zynga Snaps Up Peak For $1.8B In Its Largest Deal To Date; Shares Up 7% More recent articles from Smarter Analyst: * AbbVie Seeks Rinvoq Approval For Psoriatic Arthritis In US, Europe * Aveo’s Tivozanib Gets FDA Nod For New Drug Application To Treat Kidney Cancer   * Revance, Mylan Move Forward With Botox Rival; Analyst Sees Long Path Ahead * Regeneron, Intellia Expand Partnership To Develop Hemophilia Treatments

    from Yahoo Finance https://ift.tt/36SlOpi

The Latest