Author: openjargon

Fortescue Ltd (ASX: FMG) shares were under pressure this week.

So much so, the iron ore giant’s shares lost over 7% of their value across the five days.

This compares to a 0.9% decline by the ASX 200 index over the same period.

Is this a buying opportunity for Fortescue shares?

According to a recent note out of Bell Potter, its analysts think investors should be keeping their powder dry and waiting for a better entry point.

The broker has put a sell rating and $20.63 price target on the miner’s shares. This implies potential downside of approximately 16.5% for investors over the next 12 months.

And while Bell Potter is expecting a decent dividend yield in the region of 7% for investors between now and this time next year, this only limits the potential downside to around 10%.

The note reveals that Bell Potter was unimpressed with the company’s performance during the last quarter. It highlights that Fortescue recorded its “biggest miss” in a decade, which means that a stunning final quarter will be required to turn things around. It said:

While we had been expecting a seasonally soft quarter exacerbated by the derailment, this result was below our expectations and was in fact the biggest quarterly production miss (11% below guidance midpoint) in over a decade (42 quarters). FMG needs to ship 54.2Mt (+25% qoq) in order to meet the 192Mt low end of FY24 production guidance. This would also be a quarterly record, 10% above the previous best of 49.45Mt. This is not to say it can’t be done: in the month of March, FMG achieved record shipments of 18.7Mt (~56Mt quarterly run-rate). Still, the March quarter production result was the biggest miss in 10 years and FMG now requires its biggest beat in 10 years. Inherently, we see the production risk skewed to the downside and forecast ore shipments of 189Mt for FY24.

In light of the above and due to concerns over subdued steel demand, the broker feels that Fortescue shares are overvalued now. It concludes:

Our NPVbased valuation is lowered 6% to $20.63/sh. We continue to see low growth in global steel demand and downside risks dominating the iron ore price outlook. In addition to this we now see the risk of a production guidance miss as being further elevated after the March 2024 quarter result. Dividend yield as a price support remains a factor, but this will fall away with a lower iron ore price. We retain our Sell recommendation.

The post Buy, hold, or sell: What is Bell Potter saying about Fortescue shares? appeared first on The Motley Fool Australia.

More reading

• Why these 3 top ASX 300 stocks dragged the benchmark lower this week
• Why Core Lithium, Fortescue, Peter Warren, and Talga shares are falling today
• Planning your retirement? Here are the most popular investments outside superannuation
• How much could $10,000 invested in Fortescue shares be worth next year?
• 3 top ASX 300 dividend shares to buy now for $3,000 a month in passive income

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.

It was another good day for Hub24 Ltd (ASX: HUB) shareholders on Friday.

That’s because the ASX 200 stock climbed to a record high of $43.08 during the session.

When the financial technology company’s shares hit that level, it meant they were up almost 20% this year.

But things are even better if you step back a little further. On a 12-month basis this ASX 200 stock is up over 70% and on a five-year basis it is now up over 200%.

In respect to the latter, a $10,000 investment back in 2019 would now be worth approximately $30,000.

What is this ASX 200 stock?

HUB24 is a financial technology company behind the HUB24 platform, HUBconnect, the Xplore Wealth platform, Class, and myprosperity.

Its key HUB24 platform offers advisers and their clients a comprehensive range of investment options. This includes market-leading managed portfolio solutions, and enhanced transaction and reporting functionality.

Management notes that as one of the fastest growing platforms in the market, the HUB24 platform is recognised for providing choice and innovative product solutions that create value for advisers and their clients.

Its HUBconnect offering focuses on leveraging data and technology to provide solutions to common challenges for stockbrokers, licensees and advisers. It also enables the delivery of professional advice to more Australians.

Class, which was acquired in 2022, is a cloud-based wealth accounting software company and has been recognised as one of Australia’s most innovative technology companies. It delivers SMSF administration, trust accounting, portfolio management, legal documentation and corporate compliance solutions to financial professionals across Australia.

Finally, Myprosperity is a leading provider of client portals for accountants and financial advisers. It enables streamlined service delivery, increased productivity and enhanced customer experience for finance professionals and their clients.

Across these businesses, HUB24 has $79.7 billion in Platform funds under administration (FUA) and total FUA of $100 billion.

Can HUB24 shares keep rising?

Unfortunately for shareholders, the broker community appears to believe that this ASX 200 stock could be close to peaking for the time being.

For example, a note out of Citi from earlier this month revealed that it has a buy rating and $42.80 price target. This is in line with where its shares currently trade.

Elsewhere, Macquarie and Ord Minnett currently have overweight and buy ratings on its shares with price targets of $44.00. This offers modest upside of approximately 3% from where its shares closed on Friday.

The post Guess which ASX 200 stock just hit a record high? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Lovisa Holdings Ltd (ASX: LOV) share price has surged an impressive 66% over the past 12 months, touching a new record high of $34.04 in mid-afternoon trading today.

Shares in the ASX retail stock began to climb in November last year after hitting a 52-week closing low of $17.22 on October 30.

They tracked sideways from January and then broke above the $30 barrier in late February, reaching a prior all-time closing high of $33.22 on 11 April. After peaking at today’s all-time record high, the Lovisa share price has retreated slightly to close at $33.91 on Friday.

So, what has driven this remarkable performance, and should you consider adding Lovisa shares to your portfolio?

Why has the Lovisa share price surged 66% in a year?

Lovisa Holdings is a fashion jewellery retailer with a multinational presence in Australia and more than 20 other countries. Founded in 2010, the company now boasts around 860 locations owned by itself and through franchisees.

The company is well-known for its affordable jewellery ranges while still emphasising quality and style.

Lovisa’s share price has substantially increased over the last year for two reasons: strong growth in its store network and e-commerce platforms and positive analyst sentiment.

Bell Potter – which has maintained a buy rating on Lovisa shares and upgraded its price target to $36 apiece – said the company’s store network was expanding faster in new markets than previously anticipated.

It analysed data from various global markets and projected that Lovisa could grow its store network by 10% annually between FY 2024 and FY 2034.

Additionally, Lovisa has been building momentum on its e-commerce platforms in Australia and the United States compared to its peers. If the company hits these growth numbers, it could contribute to increased earnings and, potentially, market valuation.

Recent financial performance

Lovisa reported its H1 FY 2024 financial results in February. The company grew revenues 18% year over year, leading to an 18.9% increase in gross profit. The gross profit margin also rose by 40 basis points to 80.7%.

Comparable store sales for the same period increased by 0.3% year over year, while total sales rose by 19.6% compared to the previous year.

What’s next for the Lovisa share price?

With the Lovisa share price hitting new highs and strong growth prospects ahead, investors are watching closely as the company continues to execute its expansion plans and e-commerce strategy.

Lovisa CEO Victor Herrero said in the H1 FY 2024 results that the company was looking to “move forward with growth in both existing and new markets”.

To that point, it had already opened nine new stores in H2 FY 2024, bringing the total network to 860 sites.

Bell Potter’s positive outlook underscores confidence in Lovisa’s ability to continue growing revenues for the coming decade.

Foolish takeaway

Lovisa shares have surged 66% over the past year, reaching a new 52-week high, driven by robust financial performance and positive analyst sentiment.

For investors seeking growth opportunities in the retail sector, Lovisa could be an appealing investment case, given its strong financial performance and expansion plans.

However, as with any investment decision, it’s important to conduct thorough research and consider your own financial goals.

The post Up 66% in a year, the Lovisa share price just hit an all-time high appeared first on The Motley Fool Australia.

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

Looking for two high-yielding ASX shares to bag their market-beating dividends?

Below, we look at two top passive income stocks that have delivered smashing yields over the year gone by and that I believe will continue to do so for years to come.

Both high-yield ASX shares also pay fully franked dividends. While franking credits aren’t a deal breaker for me, I do lean towards companies that provide them with the potential tax benefits they offer.

Now before moving on, do note that the yields we’re discussing are trailing yields. I believe both these companies will remain reliable, strong dividend payers over the coming years. However, future yields will vary depending on a range of company specific and macroeconomic factors.

With that said…

Two high-yielding ASX shares for passive income

The first high yield ASX share I’d buy now for dividends is Yancoal Australia Ltd (ASX: YAL).

There’s a lot to like about this All Ordinaries Index (ASX: XAO) coal stock.

On the passive income front, Yancoal has paid out 69.5 cents a share in fully franked dividends over the past 12 months.

At the current Yancoal share price of $6.45, this ASX share trades on a fully franked trailing yield of 10.8%.

The Yancoal share price has also been a stellar performer over this time, up 42% in 12 months.

The ASX coal stock has proven resilient as coal prices tumbled from record highs. For FY 2023, Yancoal reported $7.8 billion in revenue and $1.8 billion in after-tax profit.

And you couldn’t ask for a stronger balance sheet. As of 31 December, the miner held $1.4 billion of cash, a figure that has only increased since then.

Which brings us to our second high-yield ASX share, Woodside Energy Group Ltd (ASX: WDS)

Unlike Yancoal, shares in the S&P/ASX 200 Index (ASX: XJO) oil and gas stock are down 20% over the last 12 months.

But with the company’s three top growth projects on track and largely on budget, I think that retrace offers a potential bargain buying opportunity.

Indeed, with commission activities currently in progress, Woodside’s Sangomar project in Senegal is expected to produce its first oil inside the next few months.

As for that passive income, this high-yield ASX share paid an interim dividend of $1.243 per share on 28 September and a final dividend of 91.7 cents per share on 4 April.

That works out to a full-year dividend payout of $2.16 per share, fully franked.

At the current Woodside share price of $27.30, this ASX share trades on a fully franked trailing yield of 7.9%.

The post 2 high-yield ASX shares I’d buy now for dividends appeared first on The Motley Fool Australia.

More reading

• Buying ASX shares, rentvesting and co-ownership: How young Australians are achieving home ownership
• How the Yancoal share price soared 36% in a year and what to expect next
• Buy the dip: Woodside share price now at ‘attractive entry point’
• These ASX shares could rise 25% to 35%
• 5 things to watch on the ASX 200 on Thursday

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 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.

Three leading S&P/ASX 300 Index (ASX: XKO) stocks hit the skids this week.

With a bit more than two hours of trading left in the week, the ASX 300 is down 0.8% since last Friday’s closing bell, despite today’s 0.6% intraday gain.

A number of companies underperformed the index of top 300 stocks over the week. However, these three big name ASX 300 shares have earned top spots on the weekly laggard board.

Namely mining giant Fortescue Ltd (ASX: FMG), BNPL stock Zip Co Ltd (ASX: ZIP), and biotech company Mesoblast Ltd (ASX: MSB).

Interestingly, none of the three companies released any price-sensitive information over the week.

Here’s what we do know.

ASX 300 stocks with a week to forget

The Fortescue share price closed last Friday at $26.77. At the time of writing, shares are swapping hands for $24.48, down 8.5%.

The Fortescue share price remains up 27% since this time last year. But the ASX 300 stock is now well into the red for 2024.

This week’s selling pressure looks to have been driven by some gloomy forecasts for China’s steel demand.

Despite increased stimulus measures from China’s government, many analysts believe the nation’s sluggish property sector will continue to struggle, impacting iron ore demand.

Iron ore slipped 2.6% overnight to trade for US$115.85 a tonne.

Commenting on the outlook for iron ore demand earlier this week, ANZ Group Holdings Ltd (ASX: ANZ) noted (courtesy of The Australian Financial Review), “The iron ore market remains unconvinced the recent property support measures in China will be successful in boosting demand.”

ANZ added:

Futures declined for a second day, alongside a sell-off in shares of Chinese property developers. Stockpiles at Chinese ports remain elevated without any signs of a notable drawdown. Steel mills are also still making losses, with margins under pressure amid weak steel prices.

Mesoblast shares also took a tumble this week.

The ASX 300 stock closed last Friday trading for $1.18 a share. In late afternoon trade today, shares are trading for $1.07 apiece, down 9.3%.

There’s no clear reason for this sell-off, other than the mammoth gains posted by the biotech company since it reported on promising communications with the US Food and Drug Administration (FDA) back on 26 March.

At market close last Friday, the Mesoblast share price had rocketed 251.5% since the release of that announcement.

So this week’s sell-down, which still sees the stock up 224.2% since 26 March, is likely nothing more than some profit-taking.

Which brings us to the third falling ASX 300 stock, Zip.

Zip shares closed last Friday trading for $1.21. At the time of writing, shares are changing hands for $1.13 apiece, down 6.4%.

With the Zip share price still up an eye-watering 176.1% over the past six months, I reckon there’s also been a little profit-taking going on here.

The ASX 300 stock could also be catching additional headwinds from the stronger-than-expected inflation figures reported by the Australian Bureau of Statistics (ABS) on Wednesday.

As we’re seeing in the United States, inflation down under is proving to be more resilient than expected. That means investors are bracing for higher rates for longer and potentially even another rate hike.

And BNPL companies like Zip have proven to be very sensitive to higher interest rates.

The post Why these 3 top ASX 300 stocks dragged the benchmark lower this week appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, Fortescue, Peter Warren, and Talga shares are falling today
• Planning your retirement? Here are the most popular investments outside superannuation
• How much could $10,000 invested in Fortescue shares be worth next year?
• 3 top ASX 300 dividend shares to buy now for $3,000 a month in passive income
• Are Fortescue shares a dividend trap?

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 Zip Co. 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.

If you want to add some tech sector exposure to your portfolio, then it could be worth check out the three ASX tech shares listed below.

Here’s why these shares have been named as buys:

Life360 Inc (ASX: 360)

The first ASX tech share to look at is location technology company Life360.

It is the company behind the eponymous Life360 app, which is used by millions of families worldwide. And when I say millions, I mean it. The company recently released an update which revealed that its global monthly active users (MAU) increased by 4.9 million during the first quarter to 66.4 million.

This growth impressed analysts at Bell Potter. In response, the broker retained its buy rating with a boosted price target of $17.75.

Tyro Payments Ltd (ASX: TYR)

Another ASX tech share that for investors to look at is Tyro Payments.

This growing payments provider has around 70,000 merchants on its network, making it Australia’s fifth largest merchant acquiring bank by number of terminals in the market. This means Tyro is behind only the big four banks.

Morgans is a fan of the company and highlights its “significant discount to valuation.” It believes this is unwarranted given its belief that “FY24 will show significantly improved business momentum, importantly driven by a much greater focus on lifting overall profitability.”

The broker currently has an add rating and $1.47 price target on its shares.

WiseTech Global Ltd (ASX: WTC)

A third and final ASX tech share that could be a buy for investors right now is WiseTech Global.

It is the logistics solutions company behind the industry leading CargoWise One platform. This platform allows users to execute complex logistics transactions and manage freight operations from a single, easy to use system.

Over the last few years, CargoWise One has become incredibly important to the global logistics industry. So much so, there are more than 17,000 logistics organisations use the company’s software solutions. This includes all of the top 25 global freight forwarders and 45 of the top 50 global third-party logistics providers.

Analysts at UBS are feeling bullish about the company’s outlook. Particularly after a recent investment expanded its addressable market. The broker believes this leaves the company well placed to deliver growth notably ahead of consensus estimates in the coming years.

In light of this, earlier this month, UBS put a buy rating and $112.00 price target on WiseTech Global’s shares.

The post 3 excellent ASX tech shares to buy to supercharge your investment portfolio appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Tyro Payments, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Tyro Payments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares of BHP Group Ltd (ASX: BHP) are slipping slightly on Friday following yesterday’s collapse of the miner’s $74 billion bid to acquire Anglo American.

Despite the failed bid, investor reaction has been fairly muted in Friday’s trade. At the time of writing, BHP shares are trading at $44.02, down 0.64% from yesterday’s close of $44.30.

In comparison, the S&P/ASX 200 index (ASX: XJO) is currently up 0.5%.

A quick recap of the deal

The miner announced earlier this year that it was in talks to buy Anglo American. BHP shares have been volatile since.

BHP’s pursuit of Anglo was aimed at significantly boosting its copper assets. But despite three increasingly attractive offers, Anglo’s board rejected each of the ASX share’s proposals.

And despite a one-week extension to negotiate further, Anglo’s board was unconvinced of the benefits of BHP’s latest revised offer. The latest attempt to secure a deal ended yesterday, just before the takeover deadline.

“BHP will not be making a firm offer for Anglo American”, the Australian miner’s CEO Mike Henry said.

“While we believed our proposal for Anglo American was a compelling opportunity, we were unable to address Anglo’s specific concerns, particularly regarding South African regulatory risk and cost,” he added.

What’s next for BHP shares?

With the Anglo American deal off the table for now, investors may be left wondering about what’s next for BHP shares. British regulations prevent BHP from making another offer for at least six months unless a competing bid emerges.

BHP’s interest in Anglo was driven by its strategy to enhance its copper portfolio. Copper is a critical metal in the transition to a greener economy and is in hot demand.

Highlighting this is BHP’s recent acquisition of South Australian copper miner Oz Minerals for $6.4 billion. Some criticised the move for its high price, but recent surges in the copper price have vindicated the decision.

BHP also has a majority stake in the Escondida mine in Chile, the world’s largest copper mine. It is set to showcase the Escondida site later this year, according to the Australian Financial Review.

Other copper assets?

Although BHP now can’t pursue Anglo for six months, it’s unlikely to sit idle. Analysts suggest it might target other copper assets, with South American mines like Antofagasta being potential candidates.

Argonaut’s head of research, Hayden Bairstow, believes BHP’s keen interest in copper will keep it on the lookout for valuable assets and potentially impact its shares.

Speaking to the ABC, Bairstow said: “I don’t think this story is finished by any stretch of the imagination,” highlighting BHP’s long-term strategy to dominate the copper market.

This is something to consider for the outlook on BHP shares going forward, in my view.

Foolish takeaway

The BHP share price has been volatile lately, down 13% year-to-date, as the graph below shows.

BHP’s share price might have dipped due to the failed Anglo American bid, but the miner’s commitment to expanding its copper assets appears unwavering.

As the market watches for BHP’s next strategic move, its focus on future-facing commodities like copper could be promising. Only time will tell.

The post Copper checkers: What’s next for BHP shares after Anglo talks? appeared first on The Motley Fool Australia.

More reading

• Brokers name 3 ASX shares to buy now
• Buying ASX shares, rentvesting and co-ownership: How young Australians are achieving home ownership
• Why BHP, GR Engineering, Novonix, and Pointerra shares are dropping today
• BHP share price tumbles as $74 billion deal evaporates
• 5 things to watch on the ASX 200 on Thursday

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.