Stock Pick

  • Why CSL, Elders, Evolution, & Xero shares are dropping lower

    The S&P/ASX 200 Index (ASX: XJO) has returned from the long weekend in fine form. In late morning trade the benchmark index is up over 2.5% to 6,150.9 points.

    Four shares that have failed to follow the market higher today are listed below. Here’s why they are dropping lower:

    The CSL Limited (ASX: CSL) share price is down 2.5% to $277.77. This appears to be down to concerns that the company’s plasma collection network has been disrupted by the pandemic. This could have a knock-on effect on its FY 2021 performance. These concerns have offset an announcement that reveals that CSL has agreed to acquire biotech company Vitaeris this morning.

    The Elders Ltd (ASX: ELD) share price has fallen over 3% to $9.22. This decline could be down to profit taking after a strong share price gain year to date. Prior to today, the agribusiness company’s shares were up over 47% since the start of the year. Investors have been buying agriculture shares due to improving trading conditions and their defensive qualities.

    The Evolution Mining Ltd (ASX: EVN) share price is down 3% to $5.43. The catalyst for this decline was a sharp pullback in the gold price on Friday night. And although the precious metal rebounded last night, it wasn’t enough to stop the gold miners from being sold off today. Especially with investors switching to risk on assets en masse today. The S&P/ASX All Ordinaries Gold index is down 1.75% on Monday.

    The Xero Limited (ASX: XRO) share price has fallen almost 3% to $85.05. Investors may be taking profit off the table after some strong gains by the business and accounting platform provider’s shares in recent weeks. In fact, last week the Xero share price climbed to a record high of $91.49. When its shares hit that level, they were up 15% year to date.

    Need a lift after these declines? Then you won’t want to miss the recommendations below…

    5 ASX stocks under $5

    One trick to potentially generating life-changing wealth from the stock market is to buy early-stage growth companies when their share prices still look dirt cheap.

    Motley Fool’s resident tech stock expert Dr. Anirban Mahanti has identified 5 stocks he thinks 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

    More reading

    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 CSL Ltd. and Xero. The Motley Fool Australia has recommended Elders 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 Why CSL, Elders, Evolution, & Xero shares are dropping lower appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2YdJctz

  • 2 ASX 200 biotech shares to consider buying today

    asx healthcare shares

    There are a couple of ASX 200 biotech shares that could be in the buy zone right now. The S&P/ASX 200 Index (ASX: XJO) is down -10.25% this year but many Aussie healthcare companies have surged in value.

    This is partly due to the nature of the coronavirus pandemic. Many healthcare services are in high demand even as the economy falls on hard times.

    While not all Aussie biotech companies are created equal, here are a couple of my top picks to buy today.

    2 ASX 200 biotech shares to buy today

    I like the look of CSL Limited (ASX: CSL) right now. CSL is one of the largest companies by market capitalisation on the ASX and weighs in at $129.55 billion.

    The ASX 200 biotech share doesn’t always look like good value. However, CSL shares have dropped below the $300 per share mark and are trading at $276.45 at the time of writing.

    We’ve seen some strong investor support around the $270-280 per share mark in recent months. That could mean now is a good chance to buy CSL at a 16.75% discount to its all-time high.

    It’s not just the Aussie biotech giant that is in the buy zone. I also like the look of Polynovo Ltd (ASX: PNV) shares right now.

    Polynovo designs develops and manufactures dermal regeneration solutions using its patented NovoSorb BTM biodegradable polymer technology.

    In plain English, the ASX 200 biotech share develops solutions for burns, skin grafts and similar medical issues.

    The Polynovo share price crashed hard in the recent bear market. In fact, shares in the company fell 56.29% from 25 February to 23 March. 

    However, Polynovo’s value has surged higher in recent months. The ASX 200 biotech share boasts a market capitalisation of $1.75 billion and has climbed 94.70% since that March 23 bottom.

    Foolish takeaway

    I think for buy and hold investors, both CSL and Polynovo could be good value buys.

    Both ASX 200 biotech shares have a track record of success and a solid growth outlook.

    I would say CSL is more of a tactical buy for $285.33 per share. In contrast, the Polynovo share price has already rebounded but I think it’s a potential ASX 50 share in the coming decade.

    For more ASX shares to buy for a good price, check out these cheap picks today!

    NEW! 5 Cheap Stocks With Massive Upside Potential

    Our experts at The Motley Fool have just released a FREE report detailing 5 shares you can buy now to take advantage of the much cheaper share prices on offer.

    One is a diversified conglomerate trading over 30% off it’s all-time high, all while offering a fully franked dividend yield of over 3%…

    Another is a former stock market darling that is one of Australia’s most popular and iconic businesses. Trading at a significant discount to its 52-week high, not only does this stock offer massive upside potential, but it also trades on an attractive fully franked dividend yield of almost 4%.

    Plus, this free report highlights 3 more cheap bets that could position you to profit in 2020 and beyond.

    Simply click here to scoop up your FREE copy and discover the names of all 5 cheap shares.

    But you will have to hurry because the cheap share prices on offer today might not last for long.

    YES! SEND ME THE FREE REPORT!

    As of 2/6/2020

    More reading

    Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. 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 2 ASX 200 biotech shares to consider buying today appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/2XKLi5e

  • 3 ASX 200 shares to watch this week

    watch, watch list, observe, keep an eye on

    It was a strong week for ASX shares as the S&P/ASX 200 Index (ASX: XJO) surged 4.22% higher last week to close just shy of 6,000 points.

    The benchmark Aussie index finished the week at 5,998.70 points and was led higher by many Aussie blue chips including the banks.

    Last week I was watching Bendigo and Adelaide Bank Ltd (ASX: BEN), Flight Centre Travel Group Ltd (ASX: FLT) and St Barbara Ltd (ASX: SBM).

    The Bendigo share price was one of last week’s biggest moving as it rocketed 19.02% higher including a 4.72% gain on Friday. Flight Centre shares also surged, gaining 17.66%, while St Barbara shares were sold-off in the bullish ASX 200 share market and closed the week down 3.85%.

    After a big week for last week’s top picks, here are 3 shares I’ll be watching in the week ahead.

    3 ASX 200 shares to watch this week

    I always like to watch some of the biggest movers from the previous week. That means Stockland Corporation Ltd (ASX: SGP) is in my sights.

    The Stockland share price rocketed 10.92% last week and is up another 4.04% at the time of writing. The Aussie real estate investment trust (REIT) seems to be climbing thanks to investor optimism.

    Stockland has interests in retail, office and residential real estate. There are a lot of factors at play in all of those areas right now. I think this ASX 200 REIT could be set to recover further if the re-opening of the economy continues at a cracking pace.

    Another ASX 200 share I’ve got my eye on is SkyCity Entertainment Group Limited (ASX: SKC). SkyCity operates a number of hotels and wagering businesses that are starting to see eased restrictions.

    That could be good news for SkyCity earnings in FY20 and FY21. The entertainment share is up a whopping 8.96% in morning trade so far and will be well worth watching this week.

    I also think it’s hard to ignore the ASX banks right now. The Westpac Banking Corp (ASX: WBC) share price is one I’m watching this week.

    The big four bank’s shares have some strong momentum after rocketing 9.12% higher last week. Westpac shares have shot out of the gates this morning to be up more than 5% at the time of writing.

    I’d expect investors to continue buying high-quality shares this week. Westpac shares are still down 22.45% for the year and could have further to go in 2020.

    Foolish takeaway

    These are just a few of the ASX 200 shares I’m watching at the moment. It’s important to focus on the long-term investment horizon rather than getting too caught up in daily or weekly moves.

    There might be tactical buying opportunities on offer from time to time. However, I believe a buy and hold strategy is still the ticket to long-term wealth.

    If you’re in the market for more income in 2020, check out this top dividend pick today!

    NEW: Expert names top dividend stock for 2020 (free report)

    When our resident dividend expert Edward Vesely has a stock tip, it can pay to listen. After all, he’s the investing genius that runs Motley Fool Dividend Investor, the newsletter service that has picked huge winners like Dicker Data (+92%), SDI Limited (+53%) and National Storage (+35%).*

    Edward has just named what he believes is the number one ASX dividend stock to buy for 2020.

    This fully franked “under the radar” company is currently trading more than 24% below its all-time high and paying a 6.7% grossed-up dividend.

    The name of this dividend dynamo and the full investment case is revealed in this brand new free report.

    But you will have to hurry — history has shown it can pay dividends to get in early to some of Edward’s stock picks, and this dividend stock is already on the move.

    See the top dividend stock for 2020

    More reading

    Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Sky City Entertainment Group 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 3 ASX 200 shares to watch this week appeared first on Motley Fool Australia.

    from Motley Fool Australia https://ift.tt/3f7Nw4v

The Latest