Stock Pick

Author: openjargon

  • Here’s what ASX brokers are saying about Guzman y Gomez shares right now

    It’s now almost three weeks since Guzman y Gomez Ltd (ASX: GYG) shares joined the ASX boards.

    Guzman debuted on the ASX at $22 back at its ASX IPO on 20 June but quickly shot up to $30 each. No doubt that delighted early participants in the IPO and quickly established GYG shares as a formidable ASX force.

    But ever since Guzman shares’ first day on the public markets, it has mostly been downhill for investors, with a bit of volatility sprinkled in.

    At the close on Wednesday, GYG shares were going for $27.80 apiece. That’s still a good 26.3% above the company’s IPO price but down almost 8% from the highs we saw upon the company’s ASX entry.

    Despite this descent from $30, it’s still hard to call Guzman’s ASX IPO anything but a roaring success for the company.

    GYG stock: Buy or sell?

    But now that Guzman has settled into ASX life and the hype from its IPO has died down a little, it’s a great time to see what ASX brokers think of this new kid on the ASX block.

    After all, it’s a good opportunity to get a grip on Guzman’s fundamentals and see what the experts reckon now that we’ve all had a chance to analyse this company post-IPO.

    To begin, let’s look at the views of ASX broker Morgans.

    As my Fool colleague James covered earlier this month, Morgans initiated its coverage of GYG shares by issuing an ‘add’ rating alongside a 12-month share price target of $30.80.

    This broker sees strong long-term growth in Guzman’s future and believes that the company’s plan to reach 1,000 restaurants in Australia is doable if it succeeds in executing its plan to open  30-30 stores annually.

    Morgans has also set a long-term share price target of $62 for GYG. That is based on an assumption that the company will be able to successfully expand into the American market.

    But Morgans isn’t the only broker eyeing off Guzman y Gomez shares after their IPO. As reported by the Australian Financial Review this week, Wilsons is another broker seeing success in this company’s future.

    Another ASX broker says buy on Guzman y Gomez shares

    Wilsons has reportedly given Guzman shares an ‘outperform’ rating, with a 12-month share price target of $31.98. If realised, Guzman would gain almost 15% from the current share price.

    The broker acknowledged that this share price target was ambitious but argued it was still achievable thanks to Guzman’s unique opportunity to capitalise on Australians’ growing appetite for Mexican-themed food.

    Here’s some of what Wilsons’ head of research, James Ferrier, had to say on this bullish position on Guzman shares:

    The market opportunity in Australia for a Mexican-inspired quick service restaurant offering has enthused us for some time… GyG has established a domestic store network with very attractive unit economics and sufficient scale to support expectations of a significant and successful full store rollout.

    Wilsons is also pencilling in a same-store sales growth rate of 4.5% annually until 2030, along with increasing margins from each restaurant.

    Foolish takeaway

    No doubt, ASX investors who have already bought into Guzman shares or are even considering a buy will take a lot of comfort from the views of these two ASX brokers.

    But brokers aren’t always on the money. Only time will tell if GYG can pull off its ambitious growth plans and justify these experts’ bullishness.

    The post Here’s what ASX brokers are saying about Guzman y Gomez shares right now appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Guzman Y Gomez right now?

    Before you buy Guzman Y Gomez shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Guzman Y Gomez wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 10 July 2024

    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.

  • Is the fully franked 6.2% yield on Bank of Queensland shares for real right now?

    ASX bank shares are well-known for their fat dividends, which are usually fully franked. But looking at Bank of Queensland Ltd (ASX: BOQ) shares today, the yield from this bank stock still stands out.

    As of yesterday’s closing price of $6.11, BoQ shares seemingly finished up trade on a sizeable dividend yield of 6.22%. Like most ASX banks, BoQ’s dividends usually come with full franking credits attached as well. That means this already-steep dividend yield grosses up to an impressive 8.89% with the value of those franking credits included.

    A 6.22% yield is high, even by ASX bank standards. For some comparisons, only ANZ Group Holdings Ltd (ASX: ANZ) comes close to Bank of Queensland’s current yield. ANZ shares are currently trading on a yield of 5.96%, although that only comes partially franked.

    Westpac Banking Corp (ASX: WBC) trades on a yield of 5.34% today, while National Australia Bank Ltd (ASX: NAB) is on 4.69%.

    Shockingly, BoQ’s 6.22% yield is now almost double that of Commonwealth Bank of Australia (ASX: CBA) shares, which closed yesterday with a yield of 3.54%.

    So let’s get down to the crux of today’s discussion: Is this 6.22% yield for real?

    Do Bank of Queensland shares really trade on a 6.22% yield today?

    Well, on one level, yes.

    This yield is indeed ‘legit’, as it stems from BoQ’s last two dividend payments. The first of those was the final dividend from November, which was worth 21 cents per share. The most recent payment was May’s interim dividend of 17 cents per share.

    That annual total of 36 cents gives BoQ shares a 6.22% yield at yesterday’s closing stock price of $6.11.

    However, as any good dividend investor knows, a dividend yield represents the past, not the future. No ASX share, including BoQ, is under any kind of obligation to maintain its dividends at a previous year’s levels. So, there is no guarantee whatsoever that if you invested $1,000 in Bank of Queensland shares today, you will bank $62 in dividend income every year going forward.

    Indeed, history is not on BoQ shares’ side here. That November final dividend of 21 cents per share was actually a reduction from the final dividend of 24 cents per share that investors enjoyed in 2022.

    The 17-cent interim dividend from May was also another downgrade from the 20 cents investors banked back in 2023.

    Looking forward, we have no idea what the next Bank of Queensland dividends will look like until the bank reveals them.

    But some ASX experts aren’t holding their breath.

    For example, last week, my Fool colleague Tristan covered the views of ASX broker UBS on BoQ shares. UBS is expecting BoQ’s cash earnings to drop from $450 million in FY23 to $294 million in FY24, eventually recovering to $406 million by FY28.

    ASX shares fund their dividend payments by drawing on their earnings and profits, which doesn’t bode well for higher BoQ dividends in the future.

    Only time will tell what the next Bank of Queensland dividends will be worth. But BoQ investors, as with all shares, shouldn’t be banking on that 6.22% yield to continue indefinitely.

    The post Is the fully franked 6.2% yield on Bank of Queensland shares for real right now? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bank Of Queensland right now?

    Before you buy Bank Of Queensland shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bank Of Queensland wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 10 July 2024

    More reading

    Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. 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.

  • Costco is raising its membership fee for the first time in 7 years

    Hand holding Costco membership card in front of Costco store
    Costco is raising its membership fee, the retailer said Wednesday.

    Andy.LIU/Shutterstock

    • Costco said Wednesday that it's raising its annual membership fee.
    • It's the first time that Costco has raised the fee since 2017.
    • The retailer has hinted for months that a raise was in the future.

    Costco's annual membership fee is getting more expensive.

    As of September 1, the wholesale club retailer will charge $65 a year for its Gold Star and Business memberships, it said as it announced its June sales results. Currently, the memberships run $60.

    Executive memberships, meanwhile, will cost $130 each, up from the current rate of $120.

    One benefit of the Executive membership is a 2% cash back reward on what members spend annually. The maximum cash-back that those members can earn will rise to $1,250, up from the current $1,000 cap.

    The fees will apply to Costco members in the US and Canada. The membership prices are the same amount regardless of currency — a Gold Star membership in Canada runs 60 Canadian dollars, for example.

    The increase is the first time that Costco has raised its membership fee since 2017.

    In May, Costco CFO Gary Millerchip said that a fee increase would happen at some point, adding that it was a question "of when we increase the fee, rather than if we increase the fee." Millerchip didn't offer a specific date for the increase at the time.

    At the time, Costco said it had roughly 134 million members. The retailer boasts renewal rates of more than 90%.

    The increase comes after Costco's CEO said in a memo obtained by Business Insider that its hourly employees would be getting a pay raise.

    Do you work at Costco and have a story idea to share? Reach out to abitter@businessinsider.com

    Read the original article on Business Insider

  • See inside one of the high-tech refrigerated warehouses powering Walmart’s grocery dominance

    The exterior of a Walmart automated distribution center
    The exterior of a recently completed grocery distribution center in Lancaster, Texas.

    Walmart

    • Walmart is America's grocery king, selling more food than the next two largest companies combined
    • The retailer is leaning heavily into AI to get perishable foods to store shelves even faster.
    • Take a look inside one of Walmart's state-of-the-art distribution centers for perishable goods.

    Walmart is the biggest grocery store in the US, with more shoppers getting their groceries there than from any other retailer.

    To keep the shelves of its 4,600 US stores well-stocked, the retailer relies on a vast network of 42 regional distribution centers that receive and sort pallets of merchandise.

    On Wednesday, Walmart pulled back the curtain on one of its state-of-the-art AI-powered refrigerated warehouses designed to handle perishable goods like meat, dairy, and produce.

    The company says it has completed two all-new builds, with three more on the way, while five existing perishable distribution centers are being upgraded with the tech.

    Take a look to see how it works:

    Trucks arrive with pallets that have of one type of merchandise
    The loading area at a Walmart automated distribution center

    Walmart

    Arriving goods are inspected by human workers.

    Forklift operators put arriving pallets into a machine that separates the boxes
    A forklift with a pallet at a Walmart automated distribution center

    Walmart

    Walmart says automation is allowing workers to transition into higher-skilled roles.

    The machine raises the pallet and scans the contents…
    A pallet at a Walmart automated distribution center

    Walmart

    "We know what we own, in what quantity and where it is, all in near real time," Dave Guggina, executive vice president of Walmart's supply chain, told CNBC. "And we know that at a level of proficiency that is significantly improved than what we've been able to achieve with manual processes or legacy software."

    … and send cases down a conveyer belt to be stored
    Boxes on rollers at a Walmart automated distribution center

    Walmart

    The automation and tracking allow Walmart to better anticipate customer demand and keep the right amount of inventory on hand, the company says.

    What makes this facility special is that everything must be refrigerated – like this cream cheese
    Boxes on a conveyer belt at a Walmart automated distribution center

    Walmart

    Walmart previously revealed its automation technology at what are called "ambient" distribution centers.

    The shelves reach as high as 80 feet and are accessed entirely by robots
    Vertical storage at a Walmart automated distribution center

    Walmart

    Walmart says the additional vertical space is allowing the company to expand its fulfillment services for third-party sellers — not unlike Amazon.

    Warehouse employees keep an eye on the flow of merchandise
    A worker at a Walmart automated distribution center

    Walmart

    This automated warehouse still requires about 500 workers, with starting pay at $20 to $34 per hour.

    As stores report inventory requirements, an AI algorithm determines the most effective way to pack the mix of products they need onto a new pallet
    A computer display at a Walmart automated distribution center

    Walmart

    The system also puts more fragile items, like eggs and fruit, toward the top of the stack.

    Walmart says the model tries to ensure that pallets are loaded in a way that simplifies the restocking process for store employees
    Boxes on rollers at a Walmart automated distribution center

    Walmart

    The system knows exactly which aisle in a particular store that a group of cases is headed to.

    Robots then pull the items from throughout the warehouse
    A worker at a Walmart automated distribution center

    Walmart

    "You take a distribution center today, one of our associates is walking up to 10 miles a day, lifting thousands of pounds, moving pallets and things like that," Walmart CFO John David Rainey said of the traditional, non-automated system.

    Selected merchandise flows to a loading area…
    Boxes on conveyer belts at a Walmart automated distribution center

    Walmart

    New construction is slated for Wellford, South Carolina; Belvidere, Illinois; and Pilesgrove, New Jersey.

    … and is loaded onto a pallet according to the plan, before it is wrapped for shipping
    A pallet being wrapped at a Walmart automated distribution center

    Walmart

    Guggina told CNBC some pallets can be stacked exclusively with items for fulfilling e-commerce orders, rather than being put on shelves.

    It's a complex system that still requires human oversight
    A worker at a Walmart automated distribution center

    Walmart

    Of Walmart's 42 distribution centers, CFO John David Rainey said the company has 15 with "some level of automation."

    Finished pallets are then loaded onto a truck and sent to a store
    A Walmart truck driving through farmland

    Walmart

    The 15 automated distribution centers serve about 1,700 stores.

    At the store, workers unload the trucks and restock the shelves
    A Walmart worker moving a pallet

    Walmart

    If everything goes according to plan, restocking the shelves moves more quickly.

    Walmart says its automated warehouses can process twice as much merchandise as traditional ones
    A lift at a Walmart automated distribution center

    Walmart

    "When we automate one of these DCs, we see roughly twice the throughput with half the head count," CFO John David Rainey said. "And so the math on this is very, very compelling."

    Read the original article on Business Insider

  • Own iShares S&P 500 ETF (IVV) units? It’s payday for you!

    excited young female in business attire and wearing glasses is holding up $100 notes in both hands.

    Good news for investors in iShares S&P 500 ETF (ASX: IVV). The exchange-traded fund (ETF) — one of the largest on the ASX — is paying its latest distribution today.

    Investing in ETFs allows us to own a whole group of businesses in a single investment, providing a good level of diversification. ETFs pass the dividends and distributions received from their holdings onto the fund’s investors.

    So, let’s see what’s in store for eligible IVV ETF investors.

    Final distribution for IVV ETF in FY24

    Blackrock announced earlier in July that the FY24 final distribution for the iShares S&P 500 ETF would be 14.06 cents per unit.

    The ex-distribution date for this payment was 1 July 2024, so investors needed to own units of the fund before this date to be entitled to the payout.

    A distribution reinvestment plan (DRP) was open for this distribution, and investors had to sign up for it before today if they wanted to use it. Blackrock informed investors on 2 July 2024 that the unit price for new units issued under the DRP would be 54.45 cents.

    Other distributions from FY24

    The distribution that was paid three months ago to unitholders was 13.98 cents per unit.

    Six months ago, the iShares S&P 500 ETF paid a distribution per unit of 15.98 cents per unit.

    Nine months ago, the IVV ETF paid a distribution per unit of 17.3 cents to investors.

    Strong capital growth

    This ETF is not known for its passive income because its underlying holdings don’t offer high dividend yields.

    According to Blackrock, the current 12-month trailing dividend yield of the IVV ETF is just 1.11%.

    However, the iShares S&P 500 ETF has delivered strong returns in the last 12 months thanks to capital growth. The underlying performance of stocks like Microsoft, Nvidia, Alphabet, Amazon, Meta Platforms and Apple has been impressive — all increased by double-digit percentage terms over the past year.

    The strength of the underlying holdings has helped the IVV ETF rise by 26% over the last 12 months, as shown in the chart above.

    In contrast, the S&P/ASX 200 Index (ASX: XJO) has only climbed by 11% in the past year, so the US share market has significantly outperformed. However, past performance is not a guarantee of future performance, of course.

    At the end of June 2024, the iShares S&P 500 ETF had a price/earnings (P/E) ratio of 27.3. This implies that the market is expecting strong earnings growth in the next couple of years to justify the current valuation.

    The post Own iShares S&P 500 ETF (IVV) units? It’s payday for you! appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Ishares S&p 500 Etf right now?

    Before you buy Ishares S&p 500 Etf shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Ishares S&p 500 Etf wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 10 July 2024

    More reading

    Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison 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 Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Up 23% since May, are investors on the punt with Star Entertainment shares?

    A group of people cheer at a blackjack table in a casino

    Shares in The Star Entertainment Group Ltd (ASX: SGR) have been drifting higher lately, rising by 23% since May.

    Despite this recent uptick, the company’s stock is still down 48% over the past 12 months. It is currently trading at 51 cents per share.

    In fact, Star was one of the worst stocks to own in FY24, according to my colleague James.

    But its share price has risen from a low of 40 cents on 1 May. So the question is, is there a change in the outlook, or are investors taking a punt on Star Entertainment shares?

    Star Entertainment shares up since May

    Star Entertainment has faced a tumultuous year marred by regulatory challenges and disappointing financial results.

    The NSW Independent Casino Commission’s second inquiry into its suitability as a casino operator heavily impacted investor sentiment. This contributed to a sharp decline in the share price earlier in the year.

    However, recent management changes and strategic initiatives have sparked a modest recovery in Star Entertainment shares since May.

    Steve McCann, the former CEO of Crown Resorts, has taken the helm at Star Entertainment, bringing with him a wealth of experience in turning around troubled businesses. The new CEO’s resume includes roles at Lendlease and investment bank ABN AMRO.

    McCann’s appointment on June 26 looks to have been well-received by the market, with shares up 7.45% since then.

    In his first interview as Star’s boss, McCann acknowledged the significant challenges ahead but expressed confidence in his ability to steer the company towards recovery.

    Speaking to The Australian Financial Review, McCann said he was “very well aware that there are a lot of different outcomes”.

    But I’ve always had that work ethic throughout my whole career, and I haven’t shied away from a challenge before….

    …We’ve got to succeed, we’ve got to make the changes we need to make, and we’ve got to get through them in a timely fashion. We’ve got to make sure the stakeholders remain supportive and aligned because not all outcomes are rosy, obviously.

    Financial performance and outlook

    Despite the new CEO’s tenure starting this week, the outlook for Star Entertainment shares remains challenging.

    In its half-year results, the company revised its profit expectations for FY24 lower, forecasting a significant decline in earnings.

    Group revenue for Q4 FY24 is expected to be 4.3% below the previous quarter, driven by continued declines in Premium Gaming Rooms (PGRs) revenue.

    Brokers are fairly neutral on the stock too.

    According to Commsec, Star Entertainment shares are rated a hold, with just 1 broker rating it a buy.

    Foolish takeout

    Star Entertainment’s journey to recovery is fraught with challenges, from regulatory hurdles to financial instability.

    However, the recent leadership changes and strategic initiatives could inject a dose of optimism – at least that’s what the market appears to be saying. As always, thorough due diligence and a keen eye on upcoming financial reports and regulatory updates are essential.

    The post Up 23% since May, are investors on the punt with Star Entertainment shares? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in The Star Entertainment Group Limited right now?

    Before you buy The Star Entertainment Group Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and The Star Entertainment Group Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 10 July 2024

    More reading

    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.

  • Meet the ASX gold stock that could double in value

    Do you want big returns and exposure to the booming gold price?

    Well, I have good news for you. That’s because one leading broker is tipping one ASX gold stock to double in value from current levels.

    Which ASX gold stock?

    Analysts at Bell Potter believe that Alkane Resources Limited (ASX: ALK) is a gold stock to buy right now.

    The broker highlights that the gold miner has just released the scoping study for the Boda-Kaisar Project in New South Wales.

    While a touch softer than its expectations, the broker sees the study results as “a good outcome.” It said:

    Principal differences to BPe include: (1) average grade is 0.46g/t AuEq vs BPe 0.57g/t AuEq (driven by processing of low-grade stockpiles, excluding stockpiles average Study grade is 0.53g/t AuEq, much closer to BPe), (2) mining duration in the Study is 13-years, vs BPe 20-years, as the Study largely excludes the Underground Resource (374Mt at 0.59g/t AuEq), (3) Study initial capital costs are A$1,783m (including A$250m of growth and contingency) vs BPe A$1,500m, and (4) due to the previous points, $1,120m Post-tax NPV (adjusted for tax by BP) is less than BPe $1,500m.

    Bell Potter agrees with management that Boda-Kaiser can support a large gold mining operation thanks to strong commodity prices. It adds:

    We agree with management that the Study shows that at current copper and gold prices, Boda-Kaiser can support a large operation with strong economic returns in highly attractive commodities with strong fundamentals over the long-term.

    Big returns

    In response to the study, Bell Potter has retained its buy rating and $1.10 price target on the ASX gold stock. Based on its current share price of 51.5 cents, this implies potential upside of 113% for investors over the next 12 months.

    Bell Potter then concludes by explaining why it thinks its shares could re-rate to higher multiples in the future. It said:

    In ALK’s forward plan we can see steps to increase market value recognition for Boda / Kaiser, including: (1) feasibility studies to include Underground Resources in the Project using mass mining methods (Sub-level Caving), to prolong the duration of higher-grade plant feed over the current 13-year mining period, (2) exploration to discover additional open pit deposits would also enable a longer duration of higher-grade plant feed, (3) securing a high-calibre partner could promote market value recognition of Boda / Kaiser, given the Projects large capital cost relative to ALK’s market capitalisation, and Tomingley’s ability to generate free cash.

    The post Meet the ASX gold stock that could double in value appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Alkane Resources Limited right now?

    Before you buy Alkane Resources Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Alkane Resources Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 10 July 2024

    More reading

    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.

  • Why ASX investors are ‘flocking back’ to BHP shares and these other top stocks

    A mining worker wearing a hard hat, orange high vis vest and blue long-sleeved shirt raises his fists in celebration with an excited expression on his face

    BHP Group Ltd (ASX: BHP) shares are rising fast on Aussie investors’ radars.

    That’s according to the second quarter (Q2 2024) Top Stocks data just out from online investing platform eToro.

    The data revealed that Aussies are continuing to invest in Nvidia Corporation (NASDAQ: NVDA) and big tech while also increasing their interest in S&P/ASX 200 Index (ASX: XJO) mining stocks.

    Atop fast-rising interest in BHP shares, ASX lithium miners Pilbara Minerals Ltd (ASX: PLS) and Core Lithium Ltd (ASX: CXO) also counted among the top 20 stocks seeing a big rise in investor interest over the past quarter.

    BHP shares see big surge in interest

    According to the eToro report, BHP shares saw a 24% boost in Aussie retail investor holdings in Q2 compared to the prior quarter.

    Retail investor holdings in Core Lithium shares gained 8%, while Pilbara Minerals shares increased 5%.

    Commenting on the rise in interest in BHP stock, eToro market analyst Josh Gilbert said, “We’ve also seen investors flock back to local miner BHP as the downturn in China’s real estate sector shows signs of slowing as the government continues to offer support to the sector.”

    Gilbert pointed to a recent rise in the iron ore price coupled with the sliding BHP share price as likely driving part of this increased interest.

    “There is clearly still a long way to go for China’s economy, but with iron ore prices rising in recent months, investors are seeing the weakness in BHP shares this year as an opportunity,” he said.

    As for international stocks like Nvidia…

    Move over Apple

    It’s not just BHP shares that saw a big increase in interest in Q2.

    eToro reported that over the quarter just past, Nvidia overtook Apple Inc (NASDAQ: AAPL) to become the second-most-held stock in Australia. Nvidia continues to dominate AI-related news, likely driving that increased interest.

    Elon Musk’s Tesla Inc (NASDAQ: TSLA) maintained its number one spot.

    According to Gilbert:

    Retail investors continued to flock to AI stocks in the second quarter of 2024, as businesses such as Nvidia and TSMC continue to reap the rewards of the biggest technology revolution we’ve seen for decades.

    Taiwan Semiconductor Manufacturing Co (BCBA: TSMC) was the second largest riser for the quarter, enjoying a 25% increase in Aussie retail investor holdings over the three months.

    And Gilbert forecasts this trend has some legs.

    “We’re unlikely to see this investor migration to AI stocks ease up anytime soon, as these stocks continue to deliver huge profits quarter after quarter, and other AI winners are sure to emerge in the years ahead,” he said.

    How have BHP shares been tracking?

    Investors may be seeing good value in BHP shares, with the ASX 200 mining stock down 13% in 2024.

    The post Why ASX investors are ‘flocking back’ to BHP shares and these other top stocks appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Bhp Group right now?

    Before you buy Bhp Group shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Bhp Group wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 10 July 2024

    More reading

    Motley Fool contributor Bernd Struben 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 Apple, Nvidia, and Tesla. The Motley Fool Australia has recommended Apple and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Trump’s cementing his lead after Biden’s debate disaster

    A composite image of Donald Trump and Joe Biden
    President Joe Biden's standing has post-debate standing has left some Democrats worried former President Donald Trump will romp to a reelection win.

    Getty Images

    • President Joe Biden's reelection is in a critical moment.
    • Biden entered the debate trailing. Since then, polls and pundits have shown further struggles.
    • In the meantime, the president has been clear that he's not going anywhere.

    President Joe Biden's reelection campaign is barely holding on.

    He was already in a difficult spot before his debate with former President Donald Trump. Since his horrendous performance, Biden has, at best, fallen slightly further behind. At worst, some New York Democrats are afraid the race there could be much closer than expected. A Republican hasn't won the Empire State since Ronald Reagan in 1984.

    "We're still acting like this is a one-party state, which for pretty much 20, 25 years it has been," Democratic Manhattan Borough President Mark Levine told Politico. "I truly believe we're a battleground state now."

    Political prognosticators are moving more states closer to Trump. While no one is ready to say he has a chance in New York, the former president now has better chances in Minnesota and New Hampshire — even New Mexico could become closely contested.

    "The notion that the presidential is a Toss Up was a stretch even before the debate," Dave Wasserman, senior editor & elections analyst for Cook Political Report, wrote on X. "Today, Trump has a clear advantage over Biden and a much more plausible path to 270 Electoral votes."

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    Even some voices that were once close to Biden are expressing some uneasiness.

    "I think the questions and worries about Biden's path are legitimate. I think Biden has work to do, but I think he can do it," former White House communications director Kate Bedingfield wrote on X in a series of posts. "We need to see it, though, and we need to see it soon."

    Bedingfield has cautioned Democrats who think ditching Biden will somehow make it significantly easier to beat Trump.

    Biden's path was already narrow before the debate. He hasn't led in a single poll conducted in Georgia, a state he won by only 12,670 votes, throughout this entire cycle, according to Decision Desk HQ. There isn't better news in Arizona, according to RealClearPolitics' polling average Trump is up over 5 points there. Nevada, a state Democrats have carried since 2008, also looks bad.

    The president's best-case scenario would be to fall back on Michigan, Wisconsin, Pennsylvania, and Omaha-metro area 2nd District in Nebraska. Cook Political Report, a widely respected political prediction group, moved the Nebraska 2nd closer to Trump on Tuesday when it moved five states closer to the former president.

    Biden now has the unfortunate distinction of being the first Democratic candidate to trail in national polling in July of an election year since Vice President Al Gore in 2000. Biden's dismal approval rating of approximately 38% has remains below the roughly 48% threshold incumbents have needed to win reelection. Biden's worst 2020 position was a four point lead over Trump, according to CNN. Biden now trails the former president by anywhere between 2 to 3 points nationally.

    "Donald Trump is on track, I think, to win this election, and maybe win it by a landslide, and take with him the Senate and the House," Sen. Michael Bennett, a Colorado Democrat, told CNN's Kaitlan Collins on Tuesday evening. "So for me, this isn't a question about polling. It's not a question about politics. It's a moral question about the future of our country."

    Biden's campaign does not share the same state of panic. Their belief is that Trump's campaign will rue its decision to opt against an extensive on-the-ground presence in the key battleground states.

    "For months, the Biden-Harris campaign has been on the ground talking to the voters who will decide this election, and Donald Trump's been nowhere to be found. Now, with just over four months until the election, Donald Trump couldn't match our battleground infrastructure if he tried," Biden-Harris 2024 battleground states director Dan Kanninen said in a statement.

    Read the original article on Business Insider

  • Biden faces a closer race in deep blue New York, a huge problem for swing-district Democrats

    President Joe Biden
    President Joe Biden listens to remarks at the White House.

    Nathan Howard/Getty Images

    • President Biden easily won New York in 2020, powered by his strong margins in NYC and its suburbs.
    • But Biden has faced tepid numbers in the state for months, which could impact down-ballot Democrats.
    • While Gov. Kathy Hochul remains behind Biden, Lt. Gov. Antonio Delgado called on him to forgo his reelection bid.

    Democratic presidential nominees have won New York in every election since 1988, generally by double-digits.

    The 2020 election was no different, as President Joe Biden won the state by 23 points, powered largely by his massive advantage in New York City and its suburbs.

    But this year, Biden's tepid poll numbers in New York point to a general election contest that could be remarkably closer than any presidential race in recent memory, a scenario that could sink the campaigns of down-ballot Democrats.

    Empire State Democrats have taken notice and are urging the Biden campaign to invest resources in the state to not only improve his standing but also aid Democratic candidates in critical swing House districts, according to Politico.

    In pointing to Biden's potentially vulnerability, Politico revealed that in two private polls taken over the past year, former President Donald Trump led Biden by one point in a battleground House district.

    In a Siena College poll taken in mid-June, Biden posted an eight-point lead (47% to 39%) over Trump statewide, despite having won 61% of the statewide vote in 2020. The survey also showed that Biden's job approval rating in New York was 45%, with 53% of voters disapproving of his performance. While Biden had a 54% job approval rating in New York City, it sat at 38% in the city's suburbs.

    And these figures were taken before Biden's disastrous debate performance against Trump late last month, which have pushed his numbers down nationally and even led some New York Democrats to call for the president to step aside as the party's standard-bearer.

    While Biden is still overwhelmingly favored to win New York State this November, the latest numbers indicate the general election could be much closer than many might imagine.

    Mark Levine, the borough president of Manhattan, told Politico that New York has become a more competitive state in recent years.

    "We're still acting like this is a one-party state, which for pretty much 20, 25 years it has been," the Democrat told the publication. "I truly believe we're a battleground state now."

    Since 2020, Democrats have had to fend off renewed GOP support in Long Island. And over the past two years, they've struggled to handle the influx of migrants to New York City from the US-Mexico border.

    In the 2022 midterms, Democrats fared much better than had been predicted, but they underperformed in New York, with Gov. Kathy Hochul only narrowly winning reelection and the GOP sweeping key House districts on Long Island and in the Hudson Valley.

    It's something that Democrats are thinking about this year as many officials reexamine their support for Biden's candidacy — fearing that he might weigh down other candidates.

    While Hochul reaffirmed her support for Biden after a meeting at the White House last week, New York Lt. Governor Antonio Delgado on Wednesday called on Biden to forgo his reelection bid.

    And Rep. Pat Ryan, a swing-district Democrat from the Hudson Valley-anchored 18th district, also said the president should step aside as the party's nominee ahead of November.

    So while Biden remains the favorite to carry New York once again, his troubles in other parts of the country are also evident in one of his strongest-performing states.

    Read the original article on Business Insider