Author: therawinformant

The Zip Co Ltd (ASX: Z1P) share price has been the worst performer on the S&P/ASX 200 Index (ASX: XJO) on Friday.

At one stage today the buy now pay later provider’s shares were down over 6.5% to $7.40.

The Zip share price has recovered a touch in afternoon trade and is currently down 3.5% to $7.66.

Why is the Zip share price sinking lower today?

This decline appears to have been driven by profit taking from investors, rather than anything company specific.

Prior to today, buy now pay later provider’s shares were up a massive 22% since the end of last week.

Why have its shares been on fire this week?

There have been a couple of catalysts for Zip’s strong share price gain this week.

The first is bargain hunters swooping in after a terrible 30 days of trade in September.

Zip shares were the worst performers on the ASX 200 in September with a massive 32.6% decline. This decline was driven by concerns over increasing competition in the U.S. market following an announcement by PayPal.

Given that Zip’s U.S. based QuadPay business is still only a reasonably small player in the lucrative market, there are concerns that PayPal’s entry could stifle its growth.

Some investors (myself included) appear to believe its shares were oversold in September and had fallen to an attractive level.

What else is supporting the Zip share price?

A second catalyst for its strong share price gains this week was a third quarter update out of Sezzle Inc (ASX: SZL) on Thursday.

For the three months ended 30 September, the buy now pay later provider reported a massive 231.5% year on year increase in underlying merchant sales (UMS) to US$228 million (A$318 million).

This was driven by a 178.1% year on year increase in active customers to 1.79 million, a 178.3% lift in active merchants to 20,890, and strong repeat customer growth.

Sezzle’s update appears to indicate that the buy now pay later market in the United States continues to grow at a rapid rate. This bodes well for its aforementioned QuadPay business.

Should you invest?

I continue to believe Zip shares would be great options for patient long term-focused investors.

While there are a lot of risks associated with its U.S. expansion because of increasing competition, there certainly is plenty of room for multiple companies to operate successfully in the $5 trillion market.

QuadPay may never become the market leader, but it could still be a big contributor to Zip’s growth over the 2020s.  

More reading

• Why Domino’s, Harvey Norman, WiseTech Global, & Zip shares are dropping lower
• ASX 200 down 0.2%: Big four banks drop, CIMIC jumps, CSL slides lower
• 3 unique ASX shares I’d buy and hold forever
• ASX 200 rises 1% again, Zip (ASX:Z1P) soars 8%
• BNPL ASX shares are running hot today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Sezzle Inc. The Motley Fool Australia has recommended Sezzle Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Zip (ASX:Z1P) share price is sinking 6% lower today appeared first on Motley Fool Australia.

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The Janus Henderson Group CDI (ASX: JHG) share price has jumped 6.40% today, with the company’s shares trading at $37.38  at the time of writing. This came after the Janus Henderson share price rallied on the New York Stock Exchange overnight, up by 7.55% before close and an additional 5.16% in after hours trading to US$28.32.

Why is the Janus Henderson share price moving higher?

I believe Janus Henderson shares are likely moving higher on rumours of a potential merger with fund manager Invesco Ltd. (NYSE: IVZ). The rumours were sparked after a recent investment by hedge fund Trian Fund Management. The fund took a 9.9% stake in both Janus Henderson and Invesco .

Trian Fund Management built up an investment in Legg Mason in 2019 before its merger with Franklin Resources, Inc. (NYSE: BEN) in February this year. The hedge fund is reportedly actively pushing for consolidation in the asset management industry and describes itself as a “highly engaged shareholder”.

Janus Henderson had US$336.7 billion in funds under management at 30 June 2020 whilst Invesco had $1.1 trillion funds under management at the same point in time. 

Investors can only speculate on the nature of the offer, however, according to Credit Suisse it is likely that an offer would consist mainly of scrip with some cash, which it expects Invesco will borrow.

About Janus Henderson

Janus Henderson is a fund manager that offer services to institutional and individual investors. It is listed on the ASX and the New York Stock Exchange.

In the second quarter of 2020, Janus Henderson had revenue of US$518 million, down 7% compared to the first quarter of 2020. The company had adjusted diluted earnings per share of 67 cents in Q2 2020, this was a 12% increase compared to Q1 2020.

In March, Janus Henderson announced that it would buy back up to US$200 million worth of shares on both the New York Stock Exchange and the ASX. The buyback program is planned to remain in place until 2021.

The Janus Henderson share price is up 80.75% since its 52-week low of $20.68 and has risen 6.77% since the beginning of the year. The Janus Henderson share price is up 24.23% since this time last year.

More reading

• Why ARB, CIMIC, Janus Henderson, & Netwealth shares are charging higher
• These were the best performing shares on the ASX 200 last week
• ASX 200 down 0.95%: Mesoblast crashes lower on FDA update, Afterpay surges higher
• ASX 200 up 0.15%: a2 Milk sinks lower, Bank of Queensland tumbles, CTM’s major acquisition.

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Fortunately in this low interest rate environment, there are countless dividend shares for investors to choose from on the Australian share market.

But with so many to choose from, it can be hard to decide which ones to buy.

To narrow things down, I have picked out three ASX dividend shares that brokers think investors should buy:

BHP Group Ltd (ASX: BHP)

According to a note out of Ord Minnett, its analysts have upgraded this mining giant’s shares to a buy rating with a $44.00 price target. Although it is expecting BHP’s iron ore exports to be softer in the first quarter, it remains confident that BHP is on track to achieve its full year production guidance in FY 2021. Given current commodity prices, it expects this to lead to a strong profit result and a ~$2.22 per share fully franked dividend. Based on the latest BHP share price, this represents a generous 6% dividend yield.

National Australia Bank Ltd (ASX: NAB)

Analysts at Citi have retained their buy rating and $23.50 price target on this banking giant’s shares. According to the note, the broker has reduced its earnings estimates slightly to reflect lower net interest income assumptions. Nevertheless, the broker sees a lot of value in its shares at the current level and continues to rate them as a buy. It is forecasting a fully franked dividend of 80 cents per share in FY 2021. Based on the current NAB share price, this equates to a 4.3% dividend yield.

Transurban Group (ASX: TCL)

A note out of UBS reveals that its analysts have retained their buy rating and $15.50 price target on this toll road operator’s shares following its latest quarterly update. While Transurban posted another sizeable decline in traffic volumes during the quarter, the broker remains positive on the medium term. It notes that new projects are coming online and expects them to boost its growth in the coming years. For now, UBS is forecasting a FY 2021 dividend of 44 cents per share. Based on the current Transurban share price, this will provide investors with a 3.15% yield.

More reading

• ASX 200 down 0.2%: Big four banks drop, CIMIC jumps, CSL slides lower
• 3 key takeaways from the Transurban (ASX:TCL) AGM
• ASX 200 up 0.8%: Big four banks higher, CSL rises on vaccine update, Zip rockets
• Why ARB, Accent, Bigtincan, & Transurban shares are dropping lower today
• ASX 200 finishes 1.3% higher after federal budget

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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QuickFee Ltd (ASX: QFE) shares dropped this morning after the company released its Q1 business update. At the time of writing, the QuickFee share price is down 3.67% to 52 cents.

Let’s see how the company tracked for Q1 FY21 and why the QuickFee share price is falling.

What’s driving the QuickFee share price lower?

The QuickFee share price is falling lower after the company announced a mixed first quarter result for the period ending 30 September. The payment and lending solutions company achieved rapid growth into the United States market. Lending was up 91% to US$4.1 million on the prior corresponding period. The surge in demand was driven by a combination of new firm activations and increased lending from existing firms. This represents the company’s fourth consecutive quarter of record lending in the US.

In addition, transaction volumes continued to benefit from the accelerated shift to online payments, in particular, electronic invoices. This reflected a 215% jump in the number of transactions to 63,000 compared to Q1 FY20. In total, transaction value in the US came to US$127.2 million, up 213%.

Across the Pacific, however, QuickFee said the government stimulus measures designed to help combat the economic effects of COVID-19 heavily impacted its results in Australia. Lending declined by 41% to $6.4 million as cash flow for small to medium-sized businesses received JobKeeper and other tailored financial packages. QuickFee anticipates that when government supports unwind, normal levels of funding will return.

What did the CEO say?

QuickFee CEO Bruce Coombes said due to it first mover advantage in the US market, the company has achieved rapid growth in its lending and platform transactions.

Mr Coombes also mentioned QuickFee’s partnership with Splitit Ltd (ASX: SPT) which looks to launch its product in mid-October. He said:

In addition to the structural tailwinds benefiting QuickFee in the US, the launch of the new ‘interest free’ product in partnership with Splitit represents a major growth opportunity. An additional 650,000 accounting and law firms in the US, along with new market segments and geographies are now target firms for QuickFee’s suite of products.

The build of the receivables management system and e-invoicing product for the US market is expected to be launched this quarter. This remains a major development for QuickFee and is expected to help further drive take-up of QuickFee’s lending product.

New CFO appointment

QuickFee announced the appointment of Simon Yeandle as chief financial officer, who has started the position today.

Mr Yeandle is a chartered accountant with more than 25 years of experience in software-as-a service (SaaS), fintech, and media organisations. His previous roles include CFO of businesses such as oOh!media Ltd (ASX: OML) and 3P Learning Ltd (ASX: 3PL). Mr Yeandle is recognised for leading the finance function which oversaw a number of successful acquisitions and debt/equity raising projects.

Mr Coombes welcomed the CFO appointment, saying:

Given Simon’s significant experience in senior financial roles and high growth companies, we are very excited to welcome him to the QuickFee team and look forward to his contribution to continue our rapid growth.

More reading

• The Splitit (ASX:SPT) share price is up today. Here’s why.
• QuickFee (ASX:QFE) share price lower after capital raising to support Splitit partnership
• ASX 200 drops 1.2%, Mineral Resources (ASX:MIN) fell 9%
• Why the Splitit (ASX:SPT) share price is on the move today
• Why De Grey, Scentre, Splitit, & Temple & Webster shares are pushing higher

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In early afternoon trade the S&P/ASX 200 Index (ASX: XJO) is on course for a subdued finish to an excellent week. The benchmark index is currently down 0.1% to 6,093.9 points.

Four ASX shares that have fallen more than most today are listed below. Here’s why they are dropping lower:

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is down 1.5% to $83.16. This follows the release of the latest quarterly update from its US-based parent, Domino’s Pizza Inc. Its shares fell 7% during overnight trade after its earnings fell short of the market’s expectations during the three months ended 30 September. Though, it is worth noting that its international same store sales growth outperformed expectations.

The Harvey Norman Holdings Limited (ASX: HVN) share price has dropped over 4% to $4.63. The catalyst for this decline is the retail giant’s shares trading ex-dividend this morning for its fully franked 18 cents per share final dividend. This will be paid to eligible shareholders on 2 November. Excluding this dividend, Harvey Norman’s shares would be largely flat today.

The WiseTech Global Ltd (ASX: WTC) share price is down 2.5% to $26.74. After the market close on Thursday, the logistics solutions platform provider revealed further share selling by its CEO, Richard White. Between 1 October and 7 October, Mr White offloaded a total of 366,489 WiseTech shares. The chief executive received a total consideration of just under $9.6 million for the shares.

The Zip Co Ltd (ASX: Z1P) share price has sunk over 5% lower to $7.51. This appears to have been driven by profit taking after some very strong gains this week. Prior to today, the buy now pay later provider’s shares were up 22% since the end of last week. A good portion of these gains came on Thursday following a positive quarterly update from one of its industry peers.

More reading

• ASX 200 down 0.2%: Big four banks drop, CIMIC jumps, CSL slides lower
• 3 unique ASX shares I’d buy and hold forever
• 5 things to watch on the ASX 200 on Friday
• ASX 200 rises 1% again, Zip (ASX:Z1P) soars 8%
• BNPL ASX shares are running hot today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia owns shares of WiseTech Global. The Motley Fool Australia has recommended Domino’s Pizza Enterprises Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Mount Gibson Iron Limited (ASX: MGX) share price is falling today despite a positive company update on its new iron ore project. Mount Gibson shares are trading 0.68% lower at 73 cents at the time of writing.

Mount Gibson Iron is a large iron ore miner located in Western Australia. The company has three major projects currently in operation, including Koolan Island, Extension Hill and Tallering Peak. 

Project update

The Mount Gibson share price is on the move today as the company provided an update on its planned development of the Shine iron ore project. The Shine mine is located 375 km northeast of Perth, in the mid-west region of Western Australia. The company said Shine was a “near-term, low-capital production opportunity that will further extend Mount Gibson’s 16-year operational presence”.

Today, Mount Gibson reported its iron ore reserves at the mine were 2.8 million tonnes. The mining time for the project is expected to be 2 years. However, this could be extended by developing a ‘stage 2’ pit if the subject is a success.

Furthermore, the company reported it was currently finalising commercial and permit requirements to start development and achieve targeted first ore sales in mid 2021.

What now for the Mount Gibson share price?

The Mount Gibson share price has been on downward trend this year as COVID-19 related issues have impacted supply chains. Mount Gibson shareholders will be hoping this new project can provide the impetus to drive the company’s share price upwards.

Mount Gibson CEO Peter Kerr was optimistic, saying:

We are pleased to be able to capitalise on the positive iron ore market conditions by progressing the Shine iron ore project in order to extend our significant presence in the mid-west, where we have been an established iron ore exporter since 2004.

Our detailed review of the project has confirmed Shine as an attractive production opportunity that can be quickly brought on line and appropriately staged to suit market conditions.

More reading

• Why the Rio Tinto share price is outperforming its peers

Motley Fool contributor Daniel Ewing has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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At lunch on Friday the S&P/ASX 200 Index (ASX: XJO) is on course to end its incredible winning streak. The benchmark index is currently down 0.2% to 6,091.9 points.

Here’s what is happening on the market today:

Big four banks run out of steam.

The big four banks have run out of steam on Friday and are all dropping lower and weighing on the ASX 200. While all four banks are in the red, the worst performer in the group is the National Australia Bank Ltd (ASX: NAB) share price with a 1.1% decline. This is despite analysts at Citi retaining their buy rating and $23.50 price target on the bank’s shares this morning.

CIMIC update impresses.

The CIMIC Group Ltd (ASX: CIM) share price is surging higher today following the release of its third quarter update. While the engineering company reported a notable drop in revenue and profits for the nine months to 30 September, it revealed an uptick in its performance during the third quarter. In addition to this, management spoke positively about its outlook. Especially given the increased spending on infrastructure to boost the global economy following the pandemic.

Healthcare shares drag on the market.

The healthcare sector has been underperforming on Friday and is also acting as a drag on the ASX 200’s performance. The likes of CSL Limited (ASX: CSL) and ResMed Inc. (ASX: RMD) shares are trading lower today, possibly due to profit taking following some solid gains this week. This has led to the S&P/ASX 200 Healthcare index falling 1% today.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Friday has been the CIMIC share price with a 6.5% gain following its update. The ARB Corporation Limited (ASX: ARB) share price isn’t far behind with a 6% gain. Going the other way, the worst performer has been the Zip Co Ltd (ASX: Z1P) share price with a 6% decline. This may be due to profit taking after a strong gain on Thursday.

More reading

• Why ARB, CIMIC, Janus Henderson, & Netwealth shares are charging higher
• Why I would invest $10,000 into these fantastic ASX shares today
• Why the CIMIC (ASX:CIM) share price is storming higher today
• 3 unique ASX shares I’d buy and hold forever
• 3 reasons I would buy CSL (ASX:CSL) shares today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and ZIPCOLTD FPO. The Motley Fool Australia has recommended ARB Limited and ResMed Inc. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) looks set to end its winning streak with a small decline. At the time of writing the benchmark index is down 0.2% to 6,090.5 points.

Four shares that have not let that hold them back are listed below. Here’s why they are charging higher today:

The ARB Corporation Limited (ASX: ARB) share price has climbed 5% to $31.84. Investors have been buying the auto accessories company’s shares this week following the release of a positive first quarter update. ARB reported unaudited sales revenue growth of 17.7% for the first quarter of FY 2021. Profit before tax for the quarter was $29.7 million, setting it up for a big lift in first half profit growth.

The CIMIC Group Ltd (ASX: CIM) share price has surged 6% higher to $21.59. This follows the release of the engineering company’s third quarter update this morning. Although CIMIC’s revenue and profits are down notably year to date, it revealed that its performance improved in the third quarter. Management also advised that it expects to benefit from the increased investment in infrastructure as part of the economic recovery from the pandemic.

The Janus Henderson Group CDI (ASX: JHG) share price has risen 6.5% to $37.50. The fund manager’s shares have been strong performers this month. Investors have been buying Janus Henderson’s shares following reports that activist investor Trian Fund Management had bought a big stake.

The Netwealth Group Ltd (ASX: NWL) share price has pushed 3.5% higher to $17.89. This appears to have been driven by a broker note out of Macquarie this morning. That note reveals that the broker has upgraded the investment platform provider’s shares to a neutral rating and lifted the price target on them materially to $17.50. This follows the release of its first quarter update this week.

More reading

• Why the CIMIC (ASX:CIM) share price is storming higher today
• ASX 200 rises 1% again, Zip (ASX:Z1P) soars 8%
• Why Downer, ELMO, Netwealth, & Sezzle shares are storming higher today
• Why ARB, Accent, Bigtincan, & Transurban shares are dropping lower today
• This is why the Netwealth (ASX:NWL) share price just jumped 9% to a record high

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Netwealth. The Motley Fool Australia has recommended ARB Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The A2 Milk Company Ltd (ASX: A2M) share price has been largely COVID-proof, thanks to strong overseas demand for its formula and milk products.

Even with the company being included on the ‘unreliable entity list’ by the Chinese Ministry of Commerce on 19 September – which means A2 Milk could potentially get banned from trading with China in the near future – its milk products are still popular in Asia. The company posted a 33% jump in revenue for FY20, and analysts from UBS are bullish on A2 Milk, giving it a ‘Buy’ rating at NZ$22 per share.

A2 Milk’s relationship with China

A2 Milk’s sales data shows that its China sales in infant nutrition products more than doubled to NZ$337.7 million in 2020. While the UK market is struggling, the company is also playing its cards well in the US market, with a revenue growth of 91.2% to US$42.95 million in FY20.

With China clearly the biggest market for the dairy exporter, Australian consumer goods may be vulnerable to the ongoing trade war if China perceives Australia to be a US ally.

COVID-19 has cost exporters huge sums of money to get through the regulatory burdens imposed as a result of the pandemic, but A2 Milk signed a strategic agreement in 2018 with China State Farm Holding Shanghai Co. Ltd. (CSFA Shanghai). This agreement means CSFA Shanghai is A2’s exclusive import agent and regulatory consultant, which has enabled A2 to continue its distribution of products to China amid the pandemic.

A2 Milk’s bet on China and Asia

As one of the largest agribusinesses by market capitalisation in 2020, A2 Milk’s main success comes from its huge sales growth in China and other Asian nations.

While A2’s recent results announcement fell slightly short of analysts’ projections, the ‘Daigou’ (cross-border exporting in Chinese) retail and other e-commerce channels in China and other Asian countries brought in 37.9% of total annual revenue in 1H20.  

Can A2 Milk keep up its winning streak after Babidge’s retirement?

Since 2014, A2 Milk’s CEO Geoff Babidge has led a successful restructuring and transformed the business into a brand-focused, leading omni-channel retailer with strong wholesale partnerships. He has now announced his retirement and HanesBrands executive David Bortolussi will take up the CEO role as Babidge’s successor.

Given Bortolussi’s strong supply chain experience in the apparel industry, I believe his exposure in sourcing and brand distribution in Asia will be of use. But with economic and political uncertainty looking set to continue, whether Bortolussi can keep A2’s winning streak running when he takes over in 2021 is anyone’s guess.

Foolish takeaway

In light of its positive sales figures, I remain bullish on the A2 Milk share price for the near future and believe the company is well placed to capitalise on the Chinese infant formula market.

In my opinion, investors should be comfortable with A2 Milk’s decision to leave the UK market and focus on the Chinese and the other Asian markets. I think the popularity of foreign infant formula brands in Asia and the untapped market of Asian consumers who just want the highest quality brands for their babies will become an important shield for the A2 Milk share price against any political fallout from trade disputes.

More reading

• Why I would buy Afterpay (ASX:APT) and these ASX growth shares
• 2 top ASX 200 blue chip shares worth a spot in your portfolio
• Why a2 Milk, Afterpay, ARB, & SEEK shares are pushing higher today
• A2 Milk and Mesoblast were among the most traded shares on the ASX last week
• Should you buy the A2 Milk Company Ltd (ASX: A2M) share price dip? 

Motley Fool contributor Miles Wu has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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As I mentioned here earlier today, the interest rates on offer with savings accounts right now are at some of the lowest levels imaginable.

In light of this, if I had $10,000 sitting in a savings account, I would consider investing it into the share market where the potential returns are immeasurably superior.

But where should you invest these funds? Three top ASX shares I think would be great candidates for a $10,000 investment are listed below:

Aristocrat Leisure Limited (ASX: ALL)

I think that Aristocrat Leisure would be a top option for a $10,000 investment. I’m a big fan of the gaming technology company due to its very positive long term growth outlook. Not only does the company have a core pokie machine business with some of the most in demand machines in the world, it has a fledgling digital business which is generating significant recurring revenues from its millions of daily active users. The pandemic has hit its core pokie machine business hard, but with most casinos now open again, demand for machines should start to pick up. Combined with the strong performing digital business, Aristocrat Leisure’s growth looks likely to accelerate in 2021.

CSL Limited (ASX: CSL)

While the CSL share price may not be the bargain buy it was in July, I don’t believe for a second that it is too late to invest in one of Australia’s highest quality businesses. Due to its core plasma business, the growing Seqirus influenza business, and its growing pipeline of new therapies and vaccines, I expect the company to continue growing its earnings at a solid rate for the foreseeable future. This could make it well worth considering a long term-focused investment in CSL’s shares today.

Xero Limited (ASX: XRO)

One of my favourite tech shares on the local market would have to be this cloud-based business and accounting software company. Although its growth in the U.S. has been a touch slower than many had hoped, I think it is well worth being patient with it. At present Xero has 241,000 subscribers in North America, compared to 914,000, subscribers in the materially smaller ANZ market. However, due to the quality of its platform, I believe Xero will win a good share of the massive U.S. market in the next decade. This should underpin strong recurring revenue and earnings growth long into the future.

More reading

• 3 reasons I would buy CSL (ASX:CSL) shares today
• ASX 200 rises 1% again, Zip (ASX:Z1P) soars 8%
• The Xero (ASX:XRO) share price is at a new all-time high. Here’s why
• ASX 200 up 0.8%: Big four banks higher, CSL rises on vaccine update, Zip rockets
• CSL (ASX:CSL) share price higher on COVID-19 vaccine update

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. and Xero. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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