Author: openjargon

How much passive income would I make from 300 BHP shares?
BHP Group Ltd (ASX: BHP) shares are a popular option for passive income investors.

That’s because the mining giant returns a good portion of its bumper profits each year to its shareholders. This often sees tens of billions of dollars lining shareholders’ pockets.

But what sort of passive income could be coming your way if you were to buy BHP shares today? Let’s have a look and see what could be on the cards for investors.

Passive income from BHP shares

Let’s imagine that you were to pick up 300 shares in the Big Australian.

With BHP shares currently changing hands for $44.09, this would mean an investment of $13,227 is needed.

This is a fairly large investment, but would it be worth it?

Goldman Sachs appears to believe it could be. Firstly, the broker currently has a buy rating and $49.00 price target on its shares.

This means that if the mining giant’s shares were to rise to that level, your 300 units would have a market value of $14,700. That’s approximately 11% or $1,473 greater than your original investment, which means you are off to a great start.

Now let’s look at what passive income BHP shares could provide for investors.

According to a note out of Goldman Sachs, its analysts are forecasting a fully frankedÂ US$1.45 (A$2.17) per share dividend in FY 2024. This means that those 300 units would generate passive income of A$651.

But the dividends won’t stop there, so let’s keep going and see what future years could bring.

As I covered here recently, Goldman then expects a fully frankedÂ US$1.26 (A$1.88) per share dividend in FY 2025. This will mean passive income of A$564 for that year.

Moving on, in FY 2026 the broker expects another small cut toÂ US$1.22 (A$1.82) per share, fully franked. If this proves accurate, it will lead to passive income of A$546 for investors.

Goldman then expects fully franked dividends per share of US$1.12 (A$1.67) in FY 2027 and US$1.07 (A$1.60) in FY 2028. This would generate income of A$501 and A$480, respectively.

Commenting on its buy recommendation, the broker said:

BHP is currently trading at ~6.0x NTM EBITDA, (25-yr average EV/EBITDA of ~6-7x) vs. RIO on ~5.5x. BHP is trading at 0.9x NAV (A$49.2/sh), vs. RIO at ~0.9x NAV. That said, we believe this premium vs. peers can be partly maintained due to ongoing superior margins and operating performance (particularly in Pilbara iron ore where BHP maintains superior FCF/t vs. peers), high returning copper growth, and lower iron ore replacement & decarbonisation capex.

The post How much passive income would I make from 300 BHP shares? 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 heâs 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 5 May 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 positions in and has recommended Goldman Sachs Group. 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.
16 May 2024
Warren Buffett’s company reveals its mystery bet is a nearly $7 billion stake in insurance giant Chubb
Warren Buffett.

Getty Images / Michael Buckner
- Warren Buffett's secret stock is Chubb, an insurance giant.
- Berkshire Hathaway quietly built a 6.4% stake in under nine months, worth $6.7 billion as of March.
- Buffett and his team also slashed their biggest stock bet, Apple, by 13% last quarter.
Warren Buffett has finally revealed his company's mystery stock: Chubb.

The famed investor's Berkshire Hathaway first bought into the insurance giant in the third quarter of 2023, but secured regulatory permission to keep the holding confidential until it finished building its stake.

Buffett's company initially purchased 8.1 million Chubb shares worth $1.7 billion at the end of September, then boosted the position to 20.1 million shares valued at $4.5 billion at December's close. It raised the bet to 25.9 million shares worth $6.7 billion at the end of March, SEC filings revealed on Wednesday.

Assuming Berkshire hasn't touched its stake since then, it owns about 6.4% of Chubb — a company with a roughly $100 billion market capitalization.

Chubb operates in 54 countries and provides everything from property and casualty insurance to health insurance, reinsurance, and life insurance.

It's a stock that Buffett will feel comfortable owning, given Berkshire has a large insurance business with subsidiaries like Geico and Alleghany.

Buffett and his team also slashed their biggest holding, Apple, by 13% to 789 million shares last quarter. The sales fueled a $39 billion decline in the position's value to $135 billion at March's close.

The Apple disposals won't surprise Buffett's close followers as they were clearly telegraphed in Berkshire's recent annual report. The sales of the iPhone maker's stock accounted for virtually all of Berkshire's $20 billion of stock sales in the period.

Berkshire investors will likely welcome the Chubb reveal, as Buffett has struggled to find assets worth buying in recent years. The bargain drought reflects the stock market trading at record highs, and fierce competition for acquisitions from private equity firms.

The upshot has been an increase in Berkshire's hoard of cash and Treasury bills to a record $189 billion at the end of March. Buffett also predicted during Berkshire's recent annual meeting that it would surpass $200 billion by the end of June.

Read the original article on Business Insider
16 May 2024
Reopen the NYC-Dublin livestreaming portal, you cowards! It was an example of tech bringing humans together.
Viewers in New York City could look through the portal and see a live stream of viewers in Dublin — and vice versa.

Brendan McDermid/Reuters
- A video portal between New York City and Dublin was shut down this week after "inappropriate" behavior and chaos.
- The portal was a rare and pure instance of technology bringing joy and connection.
- We should have portals all over the globe.
The portal between New York City and Dublin — a giant video installation livestreaming between the two locations — has been shut down due to bad behavior.

This is terrible. The portal should reopen! In fact, we should have portals all over the country, all over the world — connecting two random places. We should have a portal between Miami and Tokyo, Florence and Dubai, Delhi and Stockholm. Currently, there's a portal between cities in Lithuania and Poland, but let's dream even bigger.

We live in a world where technology can feel menacing. We worry about what AI is doing to the information we consume, the art we see — and how it might degrade both. This week, OpenAI and Google debuted new ways to interact with AI. OpenAI's voice assistant drew comparisons to the movie "Her" in ways that were both flattering and dystopian.

But the portal is a case of technology that's just pure joy.

It's simple, there's nothing too deep to think about. It's not even "new" tech — video streaming between two locations is not exactly novel, although I suppose "it's really big" differentiates it from, say, FaceTime. The situation is what makes it different — video chatting technology is usually personal, used at home or in your office conference room. Putting it in a public space, with other strangers — that makes it fun and special.

It is pure and human to be curious about strangers in another country, to be excited about the idea of seeing someone else across the screen, knowing they can see you, too. It's fun. It's delightful.

Unfortunately, there was some bad behavior during the NYC-Dublin link-up. New Yorkers taunted the Dubliners with potatoes; a Dubliner held up a photo of 9/11. Someone in Dublin mooned the New Yorkers, and then there was the woman who flashed her breasts to the Dubliners. Not ideal (although not even necessarily illegal in NYC).

Besides, the flasher was a really specific case — she is a TikTok and OnlyFans influencer named Ava Louise who has also been involved in some other headline-grabbing scenarios, like licking a plane toilet seat during Covid, being involved with Addison Rae's father, spending a night with Antonio Brown before his mid-game retirement, and admitting to starting a rumor about Ye (formerly Kanye) West and Jeffree Starr dating, and appearing on the Dr. Phil show. Whew. Let's chalk this up to a highly unique case of one individual with a particular knack for spectacle rather than the portal being a temptation for constant flashings.

The portal was a magical thing — a rare public artwork with fun utility that reminded us of how technology can bring the world together in the simplest way. Sure, there was a little mayhem, but it's not worth shutting down the whole thing over.

We can't let a few potatoes or boobs take that joy from us!

Read the original article on Business Insider
16 May 2024
Google’s former CEO Eric Schmidt found a buyer for his $24.5 million Atherton mansion in just 2 weeks. See inside the stunning estate.
Eric Schmidt bought his mansion for around $2 million in 1990, according to Zillow, and is now trying to sell it for $24.5 million.

Vivien Killilea/Peter Lyons/Getty
- Eric Schmidt, Google's ex-CEO, found a buyer for his Atherton mansion, listed for $24.5 million.
- The property, located in the most expensive US zip code, includes a main home and a guest house.
- Schmidt, who served as Google and Alphabet chairman, has a net worth of around $23.9 billion.
Google's former CEO, Eric Schmidt, and his wife, Wendy, found a buyer for their mansion in Atherton, California two weeks after listing it for $24.5 million, according to a Wall Street Journal report.

The 5,265 square-foot listing includes a main home and a guest house in the most expensive zip code in the US. Schmidt's current net worth is estimated at around $23.9 billion, according to Forbes' ranking.

Schmidt, 69, served as CEO of Google from 2001 to 2011. He later served as chairman of Google and its parent company, Alphabet, until 2018.

Since leaving his role as CEO, Schmidt turned his focus to tech investments and philanthropy.

Scroll on to see inside the mansion.

The five-bedroom home at the top of a cul-de-sac in Atherton was Schmidt's primary residence for the last several decades.

Schmidt purchased the Atherton home for $2 million in 1990.

Peter Lyons

The former CEO purchased the Atherton home for around $2 million in 1990, according to estimates by Zillow. The home was built in 1969, according to the listing.

Atherton, a small town in San Mateo County, is known to be a hotspot for tech moguls, like former Facebook COO Sheryl Sandberg, Microsoft cofounder Paul Allen, and former HP CEO Meg Whitman.

Other tech titans like Sheryl Sandberg and Paul Allen also purchased Atherton homes.

Peter Lyons

Schmidt is one of several tech executives that have called Atherton home.

Tech investors Ben Horowitz and Marc Andreessen, as well as early Tesla investor Alan Salzman, have also bought properties in Atherton.

The home has dark hardwood flooring and traditional nodes of design.

Peter Lyons

The prestigious town is about a 45-minute drive to San Francisco and less than 20 minutes from the headquarters of Google, Meta, and Tesla. The average household income in Atherton is over $450,000.

It isn't the only home Schmidt bought in California. He bought Ellen Degeneres and Portia de Rossi's 7,000-square-foot Montecito mansion in 2007.

Schmidt's portfolio includes multiple properties on the East and West Coast.

Peter Lyons

He bought the home for $20 million and used to rent it out for weddings. However, he reportedly struggled to keep renting it after Kim Kardashian and Kris Humphries used the home as their wedding venue and divorced soon after.

The billionaire also bought a Southern California "French chateau" in Los Angeles in 2014, about five minutes from the Playboy Mansion.

He also bought homes on the East Coast. In 2013, he purchased a $15 million penthouse in New York City and reportedly spent millions soundproofing it.

The Atherton kitchen has marble counters, white wooden cabinets, and a steel stove area.

Peter Lyons

Schmidt and his wife purchased a home in Nantucket in 1999, where she reportedly spent most of her time.

The billionaire also reportedly paid $67.6 million for a 267-foot superyacht in 2023.

The exterior of the guest house has an outdoor fireplace, an amphitheater on one side, and a cascading water feature on the other.

The home was designed by Schwanke architecture in 1969.

Peter Lyons

Both the guest house and main home were designed by Schwanke Architecture.

The home has multiple terraces and access to the outdoors in almost every room.

The home has ample amounts of natural light.

Peter Lyons

The home has ample access to natural light with large open doors and windows throughout the home.

The estate has five bedrooms, eight total bathrooms, and a fireplace in the living room and family room.

The estate has five bedrooms and eight total bathrooms.

Peter Lyons

The two-story home also has a wet bar, according to the online listing by The reSolve Group.

The sold mansion includes three acres of park-like grounds and an outdoor pool.

The property has an outdoor pool and three acres of park-like grounds.

Peter Lyons

The property has a 3.36 acre lot and 5,265 square foot living area, according to the listing.

Like many Atherton homes, landscaping surrounding the house creates a secluded feel to the property.

Many Atherton homes are secluded by landscaping or fencing.

Peter Lyons

Both the front and back of the house are shaded by large trees and greenery. The back of the house also has a fenced area to create privacy.

The estate includes a diverse selection of mature plants and specimen trees from Amdega Conservatory imported from the UK.

The home features a greenhouse.

Peter Lyons

The greenhouse is equipped with wooden shelves, a sink, and black and white floor tiles.

The home also has several areas for growing plants or produce.

The home has a greenhouse and outdoor garden area.

Peter Lyons

In addition to the greenhouse, the outdoor area has several planting plots.

The home embraces the California landscape of while incorporating European design.

The dining room has a traditional design with large windows and greenery.

Peter Lyons

Dark wooden furniture and flooring contrast against bright green outdoor openings in the estate.

Read the original article on Business Insider
16 May 2024
The US and Pacific ally Japan are teaming up to defeat new hypersonic missiles that right now are basically unstoppable
A Sabre short-range ballistic missile launches in June 2017 at White Sands Missile Range, New Mexico, for a test of the Patriot Advanced Capability-3 (PAC-3) Missile Segment Enhancement, an advanced missile defense system. Hypersonic missiles might be able to penetrate PAC-3 and similar systems.

U.S. Army photo by U.S. Army Space and Missile Defense Command/Army Forces Strategic Command
- The US and Japan have agreed to jointly develop a hypersonic missile defense system.
- Hypersonic weapons are outside the threat envelope of current missile defenses.
- The move is a major step for the allies toward defending against new missile threats from China and others.
The US and Japan have agreed to work together to develop a defense system to defeat hypersonic missiles, according to the US Department of Defense.

Hypersonic missiles are a daunting challenge and nearly impossible for current missile-defense systems to stop because they can fly low and maneuver along unpredictable flight paths, making the new project the US and Japan are working on significant as the two allies face emerging Russian and Chinese missile threats.

On Wednesday, the US and Japan "finalized a formal agreement for a Glide Phase Interceptor (GPI) Cooperative Development (GCD) Project Arrangement," which aims to develop a missile defense system that can effectively intercept hypersonic weapons in the glide phase of their flight.

The new bilateral agreement is the culmination of over a year of talks between the two countries. Plans for the co-development of a GPI were originally announced in August 2023 during a Japan-US summit. The US Missile Defense Agency will lead the development of the GPI, while Japan will contribute specific components.

In their joint statement, the allies said that the coming "GPI will deliver a regional defensive capability over time as part of a holistic layered defensive architecture. The GPI co-development will build upon long-standing U.S.-Japan missile defense cooperation and strengthen the Alliance deterrence posture."

Russian navy frigate Admiral Gorshkov launching a Zircon hypersonic missile in White Sea, Russia, on July 19, 2021.

Russian Defense Ministry Press Service via AP, File

The development of the planned GPI could be a game-changer against hypersonic threats, which neither country currently has the ability to defeat.

Though US weaponry has defeated adjacent threats like Russia's Kinzhal air-launched ballistic missile, current missile defenses would likely struggle against actual hypersonic weapons like China's DF-17 equipped with a hypersonic glide vehicle or Russia's Zircon scramjet-powered hypersonic cruise missile.

Cooperation on the GPI comes as the US and Japan face an expanding Chinese missile force capable of targeting US bases in Japan, as well as other positions in the Pacific region, and increasing cooperation between Moscow and Beijing that has American intelligence re-evaluating its defenses. Notably, Pyongyang is also attempting to develop what it says are hypersonic missiles.

Current and former US military leaders have expressed concerns about China's missiles, and US lawmakers and experts have said that the US lacks sufficient active and passive defenses to defend against a bombardment that could include hypersonic weapons.

DF-17 medium-range ballistic missiles equipped with a DF-ZF hypersonic glide vehicle in a military parade to mark the 70th anniversary of the Chinese People's Republic.

Zoya Rusinova\TASS via Getty Image

The GPI project is not the first time the US and Japan have worked together on missile defenses.

The allies successfully tested the jointly developed Standard Missile 3 (SM-3) Block IIA interceptor in a February 2017 intercept of a ballistic missile target. The SM-3, part of the Aegis Ballistic Missile Defense system, was used in combat for the first time in April during Iran's missile and drone strike against Israel.

At the time, the launch of the SM-3 was significant not only because of its unprecedented use in combat, but also due to its unique capability to eliminate targets outside of the Earth's atmosphere, or exo-atmospherically.

Read the original article on Business Insider
16 May 2024
China’s BYD just unleashed a hybrid pickup truck that has no rival in America — see the Shark
A BYD Shark hybrid pickup truck.

BYD
- China's BYD Auto launched its all-new Shark plug-in hybrid pickup truck in Mexico on Tuesday.
- The BYD Shark's hybrid drive system puts out 430 horsepower and has 62 miles of all-electric range.
- The Shark starts at $54,000 in Mexico but is not for sale in the US.
BYD introduced its new Shark plug-in hybrid pickup truck in Mexico on Tuesday. It's the company's first truck and the first product launched outside its home market, China.

Mexico is growing in importance for BYD's global strategy as it aims to gain a foothold in North America — even as the company has made clear in recent months that it does not plan to enter the US market any time soon.

As a result, the Shark will not be available in the US but will go on sale in Mexico with a starting price of roughly $54,000 USD, or 899,980 pesos.

Therefore, the midsize Shark hybrid will be aimed squarely at major global players like the Toyota Hilux and Nissan Navarra.

In the US, the BYD Shark would have competed against midsize pickup stalwarts like the Toyota Tacoma, Chevrolet Colorado, Nissan Frontier, and Ford Ranger.

However, there are no plug-in hybrid midsize pickup trucks on sale in the US. The Tacoma does offer a hybrid but does not have the ability to be plugged in.

The Shark is built on BYD's Super Hybrid Off-road Platform.

The BYD Shark's hybrid system.

BYD

The BYD Sharks' power comes from a longitudinally mounted 1.5-liter, turbocharged four-cylinder engine and two electric drive motors. Together, they produce a total system output of 430hp.

According to BYD, the Shark can make the run from 0-62 mph in just 5.7 seconds

As a result of the hybrid system, the Shark does not have a traditional mechanical all-wheel-drive system.

A BYD Shark

BYD

Instead, it sends power to the rear axle via an electric drive motor.

The Shark comes with a 29.6 kWh battery pack.

A BYD Shark hybrid pickup truck.

BYD

According to BYD, the Shark has an all-electric range of 62 miles. The company also claims the pickup has a maximum combined range of 522 miles with the battery fully charged and a full tank of gas.

According to BYD, the Shark can tow up to 2,500 kg or 5,512 lbs.

A BYD Shark hybrid pickup truck.

BYD

Don't expect to do much towing with just the battery, though.

Aesthetically, the Shark's aggressive looks are the work of BYD's design team led by Wolfgang Egger.

A BYD Shark doing a product demonstration drive at the launch event.

BYD

According to BYD, Egger, the former chief designer at Audi and Alfa Romeo, sought inspiration from the aquatic predator for which the truck is named. In fact, the front grille was inspired by the open mouth of a shark.

At 215 inches in length, the Shark is a few inches longer than the Ford Ranger SuperCrew and the standard-wheelbase Nissan Frontier. However, it's about a foot shorter than the extended-length versions of the Frontier and the long-bed Toyota Tacoma.

Inside, the Shark's cabin is highlighted by a head-up display, a 10.25 LCD digital instrument display, and an impressive 12.8-inch central infotainment screen.

The BYD Shark's cabin.

BYD

The 12.8-inch screen can change orientation from portrait and landscape. It's also equipped with Apple CarPlay and Android Auto as well as built-in apps for navigation, karaoke and music streaming.

The Shark is also equipped with a 540-degree panoramic view camera.

The BYD Shark's 12.8-inch infotainment screen

BYD

BYD's 540-degree panoramic camera system is a 360-degree camera coupled with a 180-degree undercarriage view camera. The undercarriage camera is designed to help drivers get a better view of the terrain while offroading.

The Shark comes with a suite of advanced safety features, including adaptive cruise control, lane keep assist, and automatic emergency braking.

Like Tesla's Cybertruck, the Shark's features can be controlled via smartphone which can also serve as a key.

The BYD Shark's digital key

BYD

Tesla has long pioneered the use of its mobile app as an NFC key for vehicles.

The Shark's hybrid system can be used to power campsites or worksites.

The BYD Shark hybrid powers a video projector.

BYD

Most electric trucks these days are rife with electrical outlets for the job site or campsite.

Read the original article on Business Insider
16 May 2024
Here’s what Wilsons is saying about ANZ, CBA, NAB, and Westpac shares
It has been a busy period for the banking sector, with ANZ Group Holdings Ltd (ASX: ANZ), Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), and Westpac Banking Corp (ASX: WBC) all releasing their latest updates this month.

The market reaction to the results has been overwhelmingly positive, with CBA and the other big four banks seeing their shares charge higher (before some traded ex-dividend).

Let’s now see what analysts at Wilsons are saying about the banks after it ran the rule over their results and outlooks.

What is Wilsons saying about ANZ, CBA, NAB, and Westpac shares?

Unfortunately, the broker hasn’t seen anything in the results to change its view on the banks. It revealed that its “sector view remains unchanged with the Focus Portfolio retaining an underweight exposure to sector.”

Wilsons acknowledges that the “banks reported sound results for 1H24, which were generally a touch ahead of consensus expectations across key line items.” However, this doesn’t hide the fact that “the sector’s medium-term earnings outlook still remains challenged.”

It also feels that CBA shares (and the rest of the big four) look overvalued based on current multiples and this challenging outlook. The broker said:

Following modest forward upgrades, consensus forecasts still point to negative EPS growth for the ASX 200 Banks Index in both FY24e and FY25e. In this context, the sector’s valuation premium relative to history remains excessive and unjustified at the headline level, albeit with pockets of relative value within the sector.

What else did the broker say?

Wilsons notes that the banks are returning capital with share buybacks. However, it has described this as a “temporary sugar hit.” It also believes it “fails to address the still lacklustre medium and long-term EPS growth outlook facing the sector.”

The broker then summaries its view on CBA and the rest of the banks’ shares. It said:

In the context of a weak earnings growth outlook, on the whole bank valuations remain highly uncompelling. The ASX 200 Banks Index trades on a forward PE multiple of 16x (skewed by CBA where we have zero weight), representing a ~13% premium to the 5-year average, and a forward price to book (PB) ratio of 1.6x, which is 14% above the 5-year average.

The current sector valuation (forward PE of 16x) implies the market is pricing in ~20% EPS growth in FY25 (if we assume a mean reversion to the 10-year avg PE of ~13x occurs) , compared to consensus of -1%. This is highly unlikely to eventuate in our view without a dramatic shift in RBA policy rate expectations and the economic outlook, demonstrating the extent of the sector’s current valuation excesses at current levels.

The post Here’s what Wilsons is saying about ANZ, CBA, NAB, and Westpac shares appeared first on The Motley Fool Australia.

Should you invest $1,000 in Australia And New Zealand Banking Group right now?

Before you buy Australia And New Zealand Banking 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 Australia And New Zealand Banking Group wasn’t one of them.

The online investing service heâs 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 5 May 2024

More reading
Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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.
16 May 2024
This ASX 200 healthcare stock just hit an all-time high: Is it too late to buy?
The S&P/ASX 200 Index (ASX: XJO) healthcare stock Pro Medicus Ltd (ASX: PME) have performed incredibly well. It’s up more than 90% in 12 months, and over 480% in five years, as we can see on the chart below. It hit a new all-time high of $119.09 during Wednesday’s trading, rising by around 3% by the end of the day.

After such an incredible performance, investors may be wondering if this IT healthcare stock is a buy or not.

Why is the ASX 200 healthcare stock soaring?

The business continues to deliver on its strategy.

Pro Medicus is one of the most profitable businesses on the ASX, with an earnings before interest and tax (EBIT) margin of 66%. That means around two-thirds of revenue is turning into EBIT. The net profit after tax (NPAT) margin was 49% in the FY24 first-half result, so around half of the new revenue is turning into NPAT.

Impressively, margins are continuing to climb as the company’s footprint increases. Pro Medicus says it has a highly scalable offering, with a contained cost base.

It’s delivering excellent revenue growth as it wins more contracts in Europe and North America.

I’ll mention its biggest contract won in FY24 to date – in September 2023; it won a $140 million contract (over 10 years) from BaylorScott&White Health. It has also won a $24 million contract over seven years, a $16 million contract over eight years and a $20 million contract over eight years.

When you add those new contracts to the ASX 200 healthcare stock’s previously-announced revenue, at the margins it’s earning, the company is clearly on track for strong profits over the rest of this decade.

Is it too late to buy?

Pro Medicus is clearly one of the best businesses on the ASX.

The company’s service offers several benefits to its clients, including “significant IT and infrastructure savings, improved physician engagement, unparalleled increase in radiologist efficiency, delivers superior value proposition and greater clinical accuracy.”

It’s aiming to grow in a number of different ways including winning new clients, seeing transaction growth from existing clients, delivering new product offerings, extending to new geographical markets and leveraging its research and development capability to introduce the next generation of products.

Management says there is a very significant addressable runway, and its pipeline is strong.

The question is â what valuation makes sense for the ASX 200 healthcare stock? According to the forecasts on Commsec, the Pro Medicus share price is valued at 154x FY24’s estimated earnings and 93x FY26’s estimated earnings. That’s a very high earnings multiple, particularly when interest rates are still so high.

Profit is growing strongly, but it’s difficult to say what the right price is. I’d be exceptionally happy if I were a long-term shareholder. I’m just not sure what a fair earnings multiple is for the business.

According to Commsec, the business currently has four sell ratings, five holds, and six buys. The average rating is a hold, but there are a range of views.

The post This ASX 200 healthcare stock just hit an all-time high: Is it too late to buy? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Pro Medicus Limited right now?

Before you buy Pro Medicus 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 Pro Medicus Limited wasn’t one of them.

The online investing service heâs 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 5 May 2024

More reading
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 Pro Medicus. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
16 May 2024
5 things to watch on the ASX 200 on Thursday
On Wednesday, theÂ S&P/ASX 200 IndexÂ (ASX: XJO) returned to form and pushed higher. The benchmark index rose 0.35% to 7,753.7 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to rise again

The Australian share market looks set for another good session on Thursday following a strong night on Wall Street after US inflation came in lower than expected. According to the latest SPI futures, the ASX 200 is expected to open the day 42 points or 0.55% higher this morning. In the United States, the Dow Jones was up 0.9%, the S&P 500 rose 1.2%, and the Nasdaq jumped 1.4%. The S&P 500 closed at a record high.

Oil prices charge higher

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good session after oil prices stormed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.1% to US$78.88 a barrel and the Brent crude oil price is up 0.7% to US$82.95 a barrel. Oil prices pushed higher amid news that US stockpiles have fallen.

Aristocrat Leisure results

The Aristocrat Leisure Limited (ASX: ALL) share price will be one to watch on Thursday when the gaming technology company releases its half-year results. According to a note out of Macquarie, its analysts are expecting Aristocrat Leisure to achieve consensus estimates. This will mean earnings growth of approximately 6% year on year.

Gold price jump

It looks set to be a very good session for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price charged higher again overnight. According to CNBC, the spot gold price is up 1.4% to US$2,392.7 an ounce. Traders were bidding the precious metal higher after softer than expected inflation in the United States bolstered the prospect of rate cuts from the US Federal Reserve.

JB Hi-Fi shares downgraded

The JB Hi-Fi Ltd (ASX: JBH) share price could be overvalued according to analysts at Goldman Sachs. This morning, the broker has downgraded the retail giant’s shares to a sell rating with a new $50.00 price target (from $56.50). This implies potential downside of approximately 14% from current levels. Goldman notes that the company is facing “stronger competition on JBH AU from several fronts including expanding range at Amazon, recovery of execution from HVN, and intensifying competition from Officeworks.”

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

Should you invest $1,000 in Aristocrat Leisure Limited right now?

Before you buy Aristocrat Leisure 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 Aristocrat Leisure Limited wasn’t one of them.

The online investing service heâs 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 5 May 2024

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John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Foolâs board of directors. Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Goldman Sachs Group, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Amazon and Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
16 May 2024
Could Liontown shares roar 30%+ higher?
Liontown Resources Ltd (ASX: LTR) shares have been having a rough time of late.

So much so, on a 12-month basis, the lithium developer’s shares have halved in value.

While this is disappointing for shareholders, could it be a buying opportunity for the rest of us?

The team at Bell Potter appears to believe this is the case and is tipping the company’s shares to roar materially higher from current levels.

Where are Liontown shares heading?

According to a recent note out of Bell Potter, its analysts have a speculative buy rating and $1.85 price target on its shares.

Based on the latest Liontown share price of $1.40, this implies potential upside of 32% for investors over the next 12 months.

To put that into context, a $20,000 investment would grow to be worth approximately $26,400 if Bell Potter is on the money with its recommendation. Though, it is worth highlighting that the broker’s speculative rating means it is a high risk, high reward option. This makes it unsuitable for investors with a low to normal risk tolerance.

Why is the broker positive?

Bell Potter thinks very highly of the company’s wholly owned Kathleen Valley (KV) lithium project in Western Australia.

This project, which is due to commence production in the middle of the year, has been optimised for an initial 3 Mtpa, producing approximately 500,000 tpa of spodumene concentrate. It also has a 4Mtpa expansion planned in year six, which aims to deliver approximately 700,000 tpa spodumene concentrate.

The broker notes that the project is highly strategic and should be fully funded through to free cash flow generation. It said:

LTR’s 100% owned KV lithium project remains highly strategic in terms of its stage of development, long mine life and location. LTR has offtake contracts with top tier EV and battery OEMs (Ford, LG Energy Solution and Tesla). Hancock Prospecting has a 19.9% interest in LTR. Under our modelled assumptions which includes the drawdown of the $550m debt package and repayment of Ford debt, and under a more conservative spot price scenario, we expect that LTR is fully funded to free cash flow. LTR is an asset development company; our Speculative risk rating recognises this higher level of risk.

All in all, Bell Potter appears to believe this makes Liontown shares a good option for investors (with a high risk tolerance) that are looking for exposure to the lithium industry before it rebounds.

The post Could Liontown shares roar 30%+ higher? appeared first on The Motley Fool Australia.

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

Before you buy Liontown Resources 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 Liontown Resources wasn’t one of them.

The online investing service heâs 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 5 May 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.
16 May 2024