Author: openjargon

With just a few hours of trade left in this first week of FY 2025, the S&P/ASX 200 Index (ASX: XJO) is up 0.8% with three ASX 200 stocks doing a lot of the heavy lifting.

Which companies are leading the benchmark higher in these early days of the new financial year?

Read on!

ASX 200 stocks at the top of the FY 2025 leaderboard

The third-best ASX 200 stock in the budding new financial year is Lynas Rare Earths Ltd (ASX: LYC).

Shares in the rare earths miner closed last Friday, the final trading day of FY 2024, at $5.93 apiece. In afternoon trade today, shares are swapping hands for $6.57.

That sees the Lynas share price up 10.8% over the week.

This strong performance is likely linked to the company’s 27 June announcement that its Lynas Malaysia business is aiming for first production of two separated heavy rare earths products in 2025.

The plant will produce separated dysprosium (Dy) and terbium (Tb), both critical elements in the high-performance rare earth permanent magnets found in numerous high-tech devices and EVs.

Moving on to the second-best ASX 200 stock performer in these early days of FY 2025, we have Magellan Financial Group Ltd (ASX: MFG).

Shares in the fund manager closed out FY 2024 trading for $8.42. At the time of writing, shares are changing hands for $9.39 apiece. That puts the Magellan share price up 11.5% over the week.

The Magellan share price closed in the green every day this week, and it looks set to do so again today.

The biggest boost for the ASX 200 stock came yesterday when the company updated the market on its funds under management. After experiencing net money outflows of $100 million in May, flows into and out of its funds were flat in June. Magellan is also set to pay out some $200 million in dividends in July.

Which brings as to the top-performing ASX 200 stock in this first week of the 2025 financial year, Whitehaven Coal Ltd (ASX: WHC).

Shares in the coal miner closed on 28 June trading for $7.65. At the time of writing, shares are trading for $8.96 apiece.

This sees the Whitehaven share price up a whopping 17.1% over the first week of FY 2025.

Whitehaven received some unexpected tailwinds this week alongside other ASX coal miners after Anglo American (LSE: AAL) was forced to suspend production at its Grosvenor coal mine in Queensland following an underground fire.

With an eye towards safety and significant fire damage likely within the mine, Anglo American said it expects coal production at the project to remain suspended for at least several months.

The post 3 high-flying ASX 200 stocks leading the charge into FY 2025 appeared first on The Motley Fool Australia.

More reading

• Why Clinuvel, Guzman y Gomez, Magellan, and Sandfire shares are charging higher
• Up 15% in a month: Are Magellan shares still cheap enough to buy?
• Top brokers agree that Lynas shares are ‘undervalued’
• Broker sees Whitehaven shares and one other coal stock as top buys
• Here are the top 10 ASX 200 shares today

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.

The Qantas Airways Ltd (ASX: QAN) share price encountered some turbulence in the financial year just past.

Shares in the S&P/ASX 200 Index (ASX: XJO) airline stock closed out FY 2023 trading for $6.20. On 28 June, the last trading day of FY 2024, shares ended the day trading for $5.85.

That saw the Qantas share price down 5.6% over the 12 months.

For some context, the ASX 200 gained 7.8% over this same period.

So, why did the Flying Kangaroo trail the benchmark index?

What happened with the Qantas share price in FY 2024?

The first month of FY 2024 started out strongly for the airline, with the Qantas share price up 7.9% at $6.69 on 24 July.

But not even the company’s blockbuster FY 2023 results, released on 24 August, could keep the stock from sinking all the way to $4.74 a share by 19 October,

Highlights of those results included a 118% year on year increase in revenue to $19.8 billion, with underlying profit before tax of $2.5 billion, roaring back from an FY 2022 loss. Qantas also announced a 500 million on-market share buyback on the day.

However, the strong performance was overshadowed by a steady stream of negative publicity.

That included allegations from the Australian Competition and Consumer Commission (ACCC) that Qantas sold tickets to flights that were already cancelled and the Federal Court ruling that the airline illegally fired 1,700 workers, outsourcing their jobs during the pandemic.

The Qantas share price also faced headwinds, with reports of lengthy flight delays and missing baggage. Investors were then caught off guard by CEO Alan Joyce’s earlier-than-expected departure on 5 September.

The airline’s new CEO, Vanessa Hudson, quickly rolled out plans to rebuild the company’s brand and regain customer trust.

A welcome updraft

The Qantas share price took a marked turn for the better in March, leaping 16.8% from 6 March through to the end of FY 2024.

The big turnaround came not long after the ASX 200 airline released its half-year results on 22 February.

Qantas reported $11.1 billion in revenue for the six months, up 12.3% year on year. And while underlying profit before tax declined by 12.8%, profits still came in at a solid $1.3 billion. Qantas also announced another $400 million on-market share buyback on the day.

As for the new financial year, the Qantas share price is up 2.6% as we near the end of the first trading week of FY 2025.

The post Why did the Qantas share price fly backwards in FY 2024? appeared first on The Motley Fool Australia.

More reading

• Why these losing ASX stocks could be a better buy than AI right now
• Are Qantas or ANZ shares a better buy?
• Qantas share price drops 3% amid Qatar rumours
• Qantas shares lift amid new investment in next-generation aircraft
• Can the Qantas share price keep flying higher in FY25?

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.

When it comes to growing your retirement savings, choosing between different investment options can be crucial.

One popular choice for Australians is the Vanguard Australian Shares Index ETF (ASX: VAS), known for its passive investment approach and low fees. But how does it stack up against your superannuation fund?

Vanguard Australian Shares Index ETF (ASX: VAS) performance

VAS is designed to track the performance of the S&P/ASX 300 Index (ASX: XKO), which includes Australia’s top 300 companies listed on the Australian Securities Exchange (ASX). It offers investors a diversified exposure to the Australian stock market, aiming to replicate its performance.

According to Vanguard, the ETF performances for each time period to 31 May 2024 have been as follows:

• 12.8% over the 12 months to 31 May 2024
• 6.5% per year over the 3 years to 31 May 2024
• 7.8% per year over the 5 years to 31 May 2024
• 7.7% per year over the 10 years to 31 May 2024

As designed, the VAS ETF returns closely follow S&P ASX 300 Index returns, which rose 8.04% per year over the last 10 years to June 2024. This annual return is split into the price return of 3.74% and income return of 4.3%.

I note the comparison period is different by one month, explaining slight differences in returns. But we can say that over a long period, say 10 years, the index fund generates an annual return of approximately 8%. This means your invested capital would double every nine years, assuming reinvestment of your dividends.

What’s the average investment return from super funds?

Before we make this comparison, it is important to remember that your superannuation fund, unlike the VAS ETF, may invest in assets beyond Australian shares, such as international stocks, bonds, property, and cash. Its performance will depend on the asset allocation strategy chosen by the fund managers.

For the purpose of this comparison, let’s simply assume a ‘balanced’ super fund.

According to Chant West, as my colleague Sebastian summarised, the average returns of the average Australian balanced fund (41%-60% of growth assets) were as follows:

• 9.4% over the 12 months to 31 May 2024
• 5.3% per year over the 3 years to 31 May 2024
• 6.7% per year over the 5 years to 31 May 2024
• 7.2% per year over the 10 years to 31 May 2024

The Association of Superannuation Funds of Australia (ASFA) provides estimates for all super funds based on historical data. While this data is only available to June 2023, ASFA believes that superannuation funds achieved average annual returns as follows:

• 9.2% over the 12 months to 30 June 2023
• 5.8% per year over the 5 years to 30 June 2023
• 7.4% per year over the 10 years to 30 June 2023

Making an informed decision

As reviewed above, a simple comparison based on performance history suggests the VAS ETF is doing slightly better than an average super fund.

After all, there’s a reason why legendary investor Warren Buffett advocates index investing. With that said, there are other things to consider before jumping to your conclusion.

• Performance history: Compare the annual returns of VAS with your super fund over the same period.
• Asset allocation: Understand how much of your super fund is allocated to Australian shares compared to other assets.
• Personal preferences: Evaluate whether you prefer a hands-on approach with ETF investments like VAS or rely on professional management through your super fund.

Overall, the VAS ETF appears to be a good place to consider for your retirement planning.

The VAS ETF is up 7.89% over the past year to $96.86.

The post Is the Vanguard Australian Shares Index ETF (VAS) outperforming your super fund? appeared first on The Motley Fool Australia.

More reading

• Why it’s a big day for ASX ETFs
• Want the latest Vanguard Australian Shares Index ETF dividend? Here’s what to do
• Buy these ASX ETFs in July for passive income
• Is the FY25 outlook compelling for the Vanguard Australian Shares Index ETF (VAS)?
• What kind of return could I expect by investing $200 monthly into ASX shares?

Motley Fool contributor Kate Lee 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.

The S&P/ASX 200 Index (ASX: XJO) appears to have run out of steam on Friday. In afternoon trade, the benchmark index is down slightly to 7,824 points.

Four ASX shares that are not letting that hold them back today are listed below. Here’s why they are racing higher on Friday:

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel Pharmaceuticals share price is up 14% to $17.34. Investors have been buying this pharmaceuticals company’s shares following the release of an update on the CUV151 study. It is evaluating the DNA-repair capacity of afamelanotide on skin of healthy volunteers exposed to ultraviolet (UV) radiation. Chief scientific officer, Dr Dennis Wright, commented: “The results from RNA sequencing complement the earlier results we saw from immunohistochemistry, in that afamelanotide consistently seems to assist repair of UV-damaged DNA in the skin.”

Guzman Y Gomez Ltd (ASX: GYG)

The Guzman Y Gomez share price is up 4% to $27.78. It appears that some investors believe this quick service restaurant operator’s shares were oversold in recent sessions. One broker that thinks this is the case is Morgans. Earlier this week, the broker initiated coverage on the company’s shares with an add rating and $30.80 price target. This implies upside of almost 11% for investors.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price is up a further 4% to $9.44. Investors have been buying this fund manager’s shares since the release of its monthly update on Thursday. Magellan revealed that net flows were flat in June. This comprised net retail outflows of $0.2 billion and net institutional inflows of $0.2 billion. The company also estimates that it will be entitled to performance fees of approximately $19 million for FY 2024. The market may be pleased but analysts at Macquarie weren’t impressed. The broekr retained its underperform rating and lowered its price target on its shares to $8.20.

Sandfire Resources Ltd (ASX: SFR)

The Sandfire Resources share price is up 1.5% to $9.21. This follows the release of an updated mineral resource estimate for its MATSA asset in Spain. The new estimate totals 172.8Mt at 1.3% copper, 2.8% zinc, 1.0% led and 38.6g/t silver. Sandfire’s CEO, Brendan Harris, said: “It’s pleasing to see the team at MATSA continue to build on our improved orebody knowledge. We have been successful in replacing mining depletion and are now seeing the beginnings of the resource and reserve growth potential we believe will be a key driver of value at MATSA.”

The post Why Clinuvel, Guzman y Gomez, Magellan, and Sandfire shares are charging higher appeared first on The Motley Fool Australia.

More reading

• Up 15% in a month: Are Magellan shares still cheap enough to buy?
• Why is this ASX 300 healthcare stock surging 12% today?
• Here are the top 10 ASX 200 shares today
• Why Arafura Rare Earths, Magellan, Metro Mining, and Santos shares are racing higher
• Inflows: Magellan shares spike 7% as institutions pile in

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

The Santos Ltd (ASX: STO) share price is pushing lower on Friday and is currently trading less than 1% down at $7.68 apiece.

This move follows a sharp decline from the weekly high of $8.16 per share on Thursday, as speculation mounted that Santos had found itself a potential buyer.

Who else than Saudi Aramco, the majorly state-owned Saudi Arabian oil company, was the prospect, according to Bloomberg.

However, the Saudi oil giant debunked reports about a potential takeover today. Whilst there is no direct evidence investors are unhappy about this, the Santos share price has subsequently drifted lower on Friday.

Here’s a closer look.

Aramco denies interest in Santos

Saudi Aramco has clarified that media reports suggesting it was considering a bid for Santos are false, according to Reuters.

This statement came in response to Bloomberg’s report on Thursday, which indicated that Saudi Aramco and Abu Dhabi National Oil Company were exploring bids for Santos.

The Santos share price surged on speculation about the possible takeover. On Thursday, shares climbed around 4% to $8.00 as investors reacted to the news.

But without any confirmation from Santos or Saudi Aramco on the matter, the excitement was short-lived.

In an emailed statement on Thursday, the Saudi oil giant clarified it had no intentions to buy Santos, nor was it considering an offer to buy the company.

It said that reports “it was considering an offer for Santos are inaccurate”, per Reuters.

The question was never whether Saudi Aramco has the means to buy Santos.

In 2023, it posted net income of US$32.6 billion. That’s more than Apple Inc‘s income of $19.8 billion and Google owner Alphabet Inc‘s $19.7 billion net profit for the same year.

This isn’t the first time Santos has been in the merger spotlight. Just six months ago, the company engaged in preliminary discussions with Woodside Energy Group Ltd (ASX: WDS) for a potential merger.

However, these talks ended without a deal.

What’s next for the Santos share price?

Despite the recent decline, brokers are positive on the Santos share price.

Goldman Sachs reinstated Santos as a buy in a February note with a price target of $8.35. It highlights expected production growth at its key sites over the next three years.

With key growth project Barossa materially de-risked following the Federal Court’s Jan 15 Judgment to lift the injunction halting pipeline installation and a lack of challenges to NOPSEMA project approvals, we see attractive valuation.

Meanwhile, consensus rates Santos a buy, according to CommSec.

While the initial excitement around a potential takeover has faded, it’s crucial to stay informed and consider the broader market dynamics before making any investment decisions.

Santos is up nearly 5% in the past year.

The post Santos share price goes red as takeover rumours turn into hot air appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Arafura Rare Earths, Magellan, Metro Mining, and Santos shares are racing higher
• Santos share price smashing the benchmark amid new takeover rumours
• Are Woodside shares a better buy than rival Santos?
• 5 things to watch on the ASX 200 on Tuesday

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. 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 Alphabet, Apple, and Goldman Sachs Group. The Motley Fool Australia has recommended Alphabet and Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Magellan Financial Group Ltd (ASX: MFG) shares have been in focus lately, with the stock trading a whopping 15.3% higher over the past month.

Shares in the formerly embattled fund manager are currently swapping hands at $9.55 per share, up 5.29% from the open on Friday.

But is it time to snap up these shares, or is it too early in the turnaround story? Here’s a look.

Magellan shares? Not for Macquarie

Investors have bought Magellan this week after its monthly funds flow update showed outflows drying up. This was coupled with a significant lift in performance fees for FY24 to $19 million.

These performance fees could signify a stronger performance of its investment strategies.

Investment bank Macquarie remains cautious about Magellan, keeping its ‘underperform’ rating despite the recent share price surge.

Analyst Brendan Carrig argued that Magellan’s funds management business was “still not cheap enough”, and that it might be “too early in the turnaround” to buy just yet, according to The Australian.

With the funds management business trading on about 11.1 times FY25 earnings, the market is already pricing in a recovery, but investment performance hasn’t improved enough to drive a recovery in flows.

Carrig warns that retail outflows might increase in H1 FY25, as a mammoth $3.4 billion of close-ended funds under Magellan’s management is set to become open-ended.

Open-ended funds allow for ongoing and new contributions, whereas closed-ended funds do not allow for new investments. It remains to be seen what effect this will have on Magellan’s assets.

Fund outflows beginning to slow

Magellan shares were in favour this week following an update on the company’s funds under management (FUM) for June. The stock is up more than 7% since Monday.

The latest FUM update showed that new money flows were flat compared to the previous month. Retail investors pulled a net $0.2 billion out in June, but institutional flows were a net positive $0.2 billion.

This brings institutional FUM to $19.6 billion by the end of June.

Insiders have also been active on Magellan shares lately. Deputy Chair Hamish McLennan recently sold nearly $545,000 worth of his shares, more than 60% of his interest in the company.

On the flip side, Director Cathy Kovacs bought $100,000 worth of Magellan shares.

Analysts have mixed views on Magellan shares. Macquarie’s reiterated underperform rating contrasts with UBS’s bullish buy rating and target of $10.25.

Morgans rates the stock as a hold with a target of $9.67. According to CommSec, the consensus of analysts estimates rates Magellan a hold.

Should you buy Magellan shares now?

While the recent price increase and positive FUM trends are encouraging, it’s crucial to consider the mixed analyst views and the potential for increased retail outflows in the near term.

Based on this, it would be wise to watch for further improvements. Either way, remember to conduct your own due diligence and consider your own personal risk tolerances in any decision-making.

The post Up 15% in a month: Are Magellan shares still cheap enough to buy? appeared first on The Motley Fool Australia.

More reading

• Why Clinuvel, Guzman y Gomez, Magellan, and Sandfire shares are charging higher
• Here are the top 10 ASX 200 shares today
• Why Arafura Rare Earths, Magellan, Metro Mining, and Santos shares are racing higher
• Inflows: Magellan shares spike 7% as institutions pile in
• Here are the top 10 ASX 200 shares today

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