Author: therawinformant

I think that one of the most promising areas of the share market to invest in at the moment is the tech sector.

In this area there are a good number of companies with the potential to grow strongly over the next decade. This could see them  generate outsized returns for shareholders in the future.

Three mid cap ASX tech shares that I think are worth considering are listed below. Here’s why I like them:

Audinate Group Limited (ASX: AD8)

Audinate is a $420 million digital audio-visual networking technologies provider. It has achieved very strong sales growth in recent years thanks to the increasing demand for its Dante product. This award-winning audio over IP networking solution is used widely across a number of industries globally. Unsurprisingly, demand for Dante has fallen materially during the pandemic. This led to the release of an underwhelming FY 2020 result in August. However, given its strong balance sheet, clear leadership position, and significant market opportunity, I think it could be worth being patient with the company.

Jumbo Interactive (ASX: JIN)

Jumbo Interactive is a $760 million online lottery ticket seller and the operator of the Oz Lotteries website. While this website is  easily the biggest contributor of revenue at present, I expect this to change in the future. I believe its Powered by Jumbo SaaS business will be the key driver of growth over the 2020s. This business is in a strong position to benefit from the shift online of lotteries globally. Management estimates that it has a US$303 billion global total addressable market, with only 7% of this market online at the moment. Given the quality of its SaaS platform, I believe it has the potential to win a sizeable share of this market in the future.

Nearmap Ltd (ASX: NEA)

Nearmap is a $1.1 billion aerial imagery technology and location data company. I think it would be a great long term option due to the quality of its offering, new product releases, and its massive addressable market in North America. Combined with potential further geographic expansion and its transition into an insights and analytics provider, I believe Nearmap can be a very strong performer over the next decade.

More reading

• The Nearmap (ASX:NEA) share price is down 28% in September: Time to buy?
• New to investing? I would invest $500 into these exciting ASX shares
• Forget BrainChip (ASX:BRN) and buy and hold these outstanding ASX shares
• Why Jumbo, New Hope, Northern Star, & Qantas shares are dropping lower
• Jumbo (ASX:JIN) share price on watch after Tabcorp (ASX:TAH) sells its stake

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 AUDINATEGL FPO and Nearmap Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Jumbo Interactive Limited. The Motley Fool Australia owns shares of and has recommended Jumbo Interactive Limited. The Motley Fool Australia has recommended AUDINATEGL FPO and Nearmap Ltd. 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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With a new month on the horizon, now could be an opportune time to consider making some new additions to your portfolio.

To help you on your way, I’ve picked out ten ASX shares which I think would be great options for October and beyond. They are as follows:

a2 Milk Company Ltd (ASX: A2M)

A2 Milk Company is an infant formula and fresh milk company with a focus on A2-only products. It has been growing at a rapid rate over the last few years thanks largely to the increasing demand for its infant formula in China. Pleasingly, given its modest market share in this key market and its growing footprint, I expect more of the same in the coming years. Management also has the option of boosting its growth with value accretive acquisitions thanks to its sizeable cash balance.

Afterpay Ltd (ASX: APT)

This payments company has been on form again in 2020, generating very strong returns for investors. The good news is I’m confident the continued success of its US operations could make its shares market beaters again over the next 12 months. They could also be given a major boost if its expansion into Canada and mainland Europe goes well.

Altium Limited (ASX: ALU)

Another ASX share to look at is Altium. It is a printed circuit board design software provider which is aiming for market domination by FY 2025/26. It is also aiming to grow its revenue to US$500 million over the same period. This will be a ~160% increase on FY 2020’s revenue. Given the very favourable tailwinds and its world class platform, I believe it will get there.

Appen Ltd (ASX: APX)

I think Appen would be a great ASX share to buy. Its team of one million-plus crowd sourced experts prepare the data that goes into artificial intelligence and machine learning models. This is an incredibly vital part of the process, as without high quality data these models will not reach their full potential. Pleasingly, these markets are forecast to grow significantly over the next decade. I feel this bodes very well for Appen’s growth.

CSL Limited (ASX: CSL)

I think this biotherapeutics company’s shares are a strong buy at the current level. This is because I believe CSL is in a great position for growth over the long term due to increasing demand for immunoglobulins, its expansive plasma collection network, growing demand for influenza vaccines, and its burgeoning research and development pipeline. The latter has some very lucrative therapies under development.

Kogan.com Ltd (ASX: KGN)

This ecommerce company could be an ASX share to buy, especially if you’re thinking long term. I think Kogan would be a great buy and hold option due to the structural shift to online shopping and the growing popularity of its website. Management also intends to make value accretive acquisitions in the near term.

NEXTDC Ltd (ASX: NXT)

NEXTDC is a technology company providing innovative data centre outsourcing solutions, connectivity services, and infrastructure management software. Its partner ecosystem hosts Australia’s largest independent network of carriers, cloud, and IT service providers. Given the accelerating shift to the cloud, I believe it can deliver strong earnings growth over the 2020s.

Pushpay Holdings Group Ltd (ASX: PPH)

Another ASX share to buy is Pushpay. It is a donor management and community engagement platform provider for the faith sector. Thanks to the shift to a cashless society and social distancing measures, Pushpay’s platform is proving invaluable for churches. This has led to it delivering stellar growth in recent years, with more of the same expected in FY 2021.

ResMed Inc. (ASX: RMD)

One of my favourite ASX shares is ResMed. I think the sleep treatment-focused medical device company is well-placed for growth thanks to its industry-leading products and sizeable market opportunity. The company also has a growing ecosystem of connected devices generating invaluable data insights. This could give it a real edge over the competition in the future.

Xero Limited (ASX: XRO)

A final ASX share to consider buying is Xero. It is a leading cloud-based business and accounting software provider which has been growing its customer numbers and recurring revenues at a strong rate for many years. I’m very confident there will more of the same over the coming years. This is due to the shift to online accounting, its global market opportunity, and high quality and sticky product.

More reading

• 3 fantastic ASX shares to buy in October
• 3 of the best ASX growth shares you can buy right now
• Top brokers name 3 ASX shares to buy next week
• 5 things to watch on the ASX 200 next week
• How to be the next Warren Buffett with ASX shares

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 and recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd., Kogan.com ltd, PUSHPAY FPO NZX, and Xero. The Motley Fool Australia owns shares of A2 Milk, AFTERPAY T FPO, and Appen Ltd. The Motley Fool Australia has recommended Kogan.com ltd, PUSHPAY FPO NZX, 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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There’s a lot of things to be stressed about right now with COVID-19 and related impacts. Some ASX shares could help give you less stress than the typical ASX stock.

Of course, share prices do move. There are buyers and sellers of all shares on the ASX. Different people will have different views on what they’re willing to transact shares for.

Some businesses offer quite predictable annual cashflow, so there may be a more consistent market valuation for a reliable earner compared to an inconsistent business or one with an unknown future like Fortescue Metals Group Ltd (ASX: FMG) or Afterpay Ltd (ASX: APT).

Here are three ASX shares that could help with a stress-free life:

APA Group (ASX: APA)

What’s APA Group? It owns a vast network of 15,000km of natural gas pipelines around Australia with a presence in every mainland state and the Northern Territory. It also owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms). APA owns, or manages and operates, a portfolio of assets and delivers half the nation’s natural gas usage.

Delivering a lot of the country’s gas is an important job that’s done by this ASX share and leads to reliable cashflow. In FY20, which included COVID-19, APA saw revenue rise 4.8% to $2.13 billion and net profit increased 10.1% to $317.1 million. Operating cash flow rose 8.3% to $1.1 billion.

The FY20 distribution rose by 6.4% to 50 cents per unit. It has actually increased its distribution for the past decade and a half.

In FY21 the ASX share is expecting profit to be largely the same, but the APA share price has fallen a little since mid-August – making it a better value buy.

At the current APA Group share price it offers a distribution yield of 4.6%.

Rural Funds Group (ASX: RFF)

Rural Funds is an agricultural real estate investment trust (REIT) which owns a variety of farmland including cattle, almonds, macadamias, vineyards and cropping (cotton and sugar).

Property landlords are attractive because they (usually) generate regular rental income and rental profit. We all need to eat food. I think Rural Funds is an attractive, defensive idea.

The ASX share receives good rent from high-quality tenants like Select Harvests Limited (ASX: SHV), Treasury Wine Estates Ltd (ASX: TWE), Olam, JBS and Australian Agricultural Company Ltd (ASX: AAC).

Not only does it have reliable existing earnings, but it’s steadily growing thanks to contracted rental increases. Rental increases are either a fixed 2.5% per annum, or it’s linked to CPI inflation. Some contracts have market reviews.

Each year the farmland REIT aims to increase its distribution by 4% per annum. The ASX share is currently investing in improving some of its farms to generate more rental income.

At the current Rural Funds share price it has a FY21 distribution yield of 4.7%.

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

I think Soul Patts could be one of the most stress-free ASX shares around. It has actually been listed on the ASX since 1903 – it has already survived through the Spanish Flu, two world wars and various recessions.

The investment conglomerate looks to invest in defensive assets that can provide reliable earnings even in a recession. That’s why its (somewhat) recent expansion into swimming schools was (and is) a good move to protect against most recessions – people hopefully still want their children to learn how to swim even if the economy is uncertain. Only a global pandemic was capable of stopping those swimming earnings.

Soul Patts owns plenty of other reliable businesses like TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Milton Corporation Limited (ASX: MLT), Bki Investment Co Ltd (ASX: BKI) and Clover Corporation Limited (ASX: CLV).

The ASX share has been a very reliable dividend payer. It has increased its dividend every year since 2000. No other ASX share has a current dividend record as good as that.

At the current Soul Patts share price it has a grossed-up dividend yield of 3.45%.

Foolish takeaway

Each of these ASX shares are defensive, offer reliable cashflow and pay growing dividends to shareholders. Soul Patts shares have risen over September, though I still prefer it because of the diversification and longevity. Both Rural Funds and APA aren’t cheap, but they could be stress-free ideas too with their good cashflow.

More reading

• How to create a yearly income of $65,000 in dividends
• These were the best performing ASX 200 shares last week
• I think the Brickworks (ASX:BKW) share price is a buy
• Will the Reserve Bank cut the cash rate again in October?
• Why the Brickworks (ASX:BKW) share price is soaring higher today

Tristan Harrison owns shares of RURALFUNDS STAPLED and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Clover Limited. The Motley Fool Australia owns shares of and has recommended Brickworks, RURALFUNDS STAPLED, Treasury Wine Estates Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and APA 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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With a new month on the horizon, now could be a good time to look at your portfolio to see if you can make some additions to take it to the next level.

Three ASX shares that I think could be great additions are listed below. Here’s why I would buy them:

Altium Limited (ASX: ALU)

The first option to consider buying is Altium. It is an electronic design software provider which has been growing at an exceptionally strong rate over the last few years. While it growth has been stifled by the pandemic, I expect a swift recovery once the crisis passes. Especially given its exposure to the growing Internet of Things and Artificial Intelligence markets. These markets are underpinning the proliferation of electronic devices and driving increasingly strong demand for its Altium Designer software. The company has also just launched a cloud-based version, Altium 365. Given the rise of remote working, this offering its likely to go down very well with end users.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX share to buy is Domino’s. I think this pizza chain operator is a great option due to the popularity of its pizzas and its ongoing international expansion. At the end of FY 2020, Domino’s had a store network of 2,668 stores. While this is undoubtedly a very large store network, management is settling for that. It is aiming to more than double its network to 5,500 stores by 2033. If it delivers on this and continues delivering solid same store sales growth, Domino’s is likely to deliver very strong earnings growth over the next decade.

ResMed Inc. (ASX: RMD)

A final ASX share to consider buying is ResMed. It is a medical device company which has a focus on sleep treatment solutions. I think it is one of the best buy and hold options on the Australian share market due to its world class product offering and its materially global market opportunity. Management estimates that there are 936 million people with sleep apnoea globally and 380 million people who suffer from chronic obstructive pulmonary disease (COPD). Given that the vast majority of these people are undiagnosed. ResMed still has a very long runway for growth over the next decade and beyond.

More reading

• How to be the next Warren Buffett with ASX shares
• 3 five-star ASX 200 shares to buy in October
• How to turn $20,000 into over $200,000 in 10 years with ASX shares
• Has the BrainChip (ASX:BRN) share price weakness created a buying opportunity?
• 3 outstanding blue chip ASX shares to buy in October

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 and recommends Altium. The Motley Fool Australia has recommended Domino’s Pizza Enterprises 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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S&P/ASX 200 Index (ASX: XJO) shares are popular investments. Are the ones in this article worth buying? I’m going to look at Wesfarmers Ltd (ASX: WES), Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) and Fortescue Metals Group Ltd (ASX: FMG).

Are any of these ASX 200 shares worth buying?

Wesfarmers

Since the start of the year the Wesfarmers share price is actually up just over 10% even though it has actually dropped 7.3% over the last month.

FY20 was a mixed result. Excluding significant items, net profit rose 8.2%. However, FY20 did see impairments for both Kmart Group and the industrial and safety division.

Looking at the underlying performance (excluding significant items) across the divisions, Bunnings earnings before interest and tax (EBIT) rose 13.9%, Kmart Group (continuing operations) EBIT fell 23.5% to $413 million, Officeworks EBIT rose 13.8% to $190 million, WesCEF (chemicals, energy and fertilisers) EBIT dropped 9.2% to $393 million and the industrial and safety EBIT plunged 53.5%.

I like the diversification offered by the ASX 200 share’s various subsidiaries. One of the best attractive things about Wesfarmers is that it can invest into other industries if it wants to such as lithium mining with the Kidman Resources acquisition. That should allow it to remain relevant for many years to come. 

Overall underlying profit growth is good. But is the Wesfarmers share price a good buy now? It’s trading at 24x FY22’s estimated earnings. I think it has fallen enough to be a decent buy today, but I wouldn’t buy a huge amount.

It currently offers a grossed-up dividend yield of 5.3%.

Fisher & Paykel Healthcare

Since the start of the year the Fisher & Paykel Healthcare share price has risen by 47%, however over the past month it has fallen 9.2%.

The company is actively involved in the fight against COVID-19 because it produces devices used to help patients.

In the ASX 200 share’s recent trading update for the first four months of FY21 it reported hospital hardware sales up 390%, hospital consumable revenue up 48% and overall hospital product revenue up 91%.

For the world’s sake, I hope demand for COVID-19-related equipment slows down sooner rather than later. However, Fisher & Paykel Healthcare is unfortunately still seeing increased demand because of the unfortunate situation and it may be a decent idea as a hedge against COVID-19 impacts on most other businesses.

At the current Fisher & Paykel Healthcare share price it’s valued at 49x FY21’s estimated earnings.

Fortescue Metals Group

Since the start of the year the Fortescue Metals Group share price has risen by 47.6%. Over the past month it has fallen by 17.6%.

The iron ore price has remained strong during this difficult year with strong demand from China and disrupted supply from competition in Brazil because of COVID-19.

FY20 was an incredible result with underlying earnings before interest, tax, depreciation and amortisation (EBITDA) rising by 38% and net profit going up by 49% to US$4.7 billion.

The dividend was huge from the ASX 200 share, with a full year payment of $1.76 per share. That amounted to a total of US$3.7 billion, or a dividend payout ratio of 77% of full year net profit.

Also pleasingly was that net debt reduced by US$1.8 billion to US$258 million thanks to the strong level of cashflow by the ASX 200 share. In FY20 it generated operating cash of US$6.4 billion, up 47% compared to the prior year.

At the current Fortescue Metals Group share price it’s trading at under 7x FY21’s estimated earnings. It offers a trailing grossed-up dividend yield of 15.8%.

Fortescue has done very well, however it’s a question of how long iron ore prices remain strong – commodity prices are hard to predict.

Foolish takeaway

Both Fortescue and Fisher & Paykel Healthcare are great ASX 200 shares, but I don’t know how long demand will remain elevated. It might be better to wait for less demand which may result in a lower price. So, I’d prefer to buy Wesfarmers. Though there are other ASX 200 shares I’d rather buy first.

More reading

• 5 things to watch on the ASX 200 next week
• How to turn $20,000 into over $200,000 in 10 years with ASX shares
• Brokers name 3 ASX shares to buy right now
• Why I would buy Wesfarmers (ASX:WES) and this ASX dividend share
• The ASX stocks most leveraged to the Victorian economy re-start

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Wesfarmers 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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Ethical investing (sometimes called ESG investing) has been one of the biggest growth trends we have seen on the share market over the past few years. Whether it’s exchange-traded fund (ETF) products coming to market, or companies like Australian Ethical Investment Limited (ASX: AEF) offering ‘ethical’ superannuation products, you can’t get far these days without coming across an investment product branding itself as ‘ethical’.

It’s clearly a growing trend too. That’s probably why the Australian Ethical Investment share price is up 700% over the past 5 years. The company did grow funds under management by 19% in FY20 alone, so we can see this trend quantified here.

Ethical investing sounds nice and warm and fuzzy on the surface. ‘Invest with your values’ is one catchline you might hear, or else ‘make a difference with your money’. All sounds great, right?

Take an ETF from BetaShares – the BetaShares Global Sustainability Leaders ETF (ASX: ETHI). This ETF promises to deliver a “portfolio of large global companies that meet strict sustainability and ethical standards”. That sounds nice.

Well, it’s not as nice as you might think. And I’ll explain why I think ethical investing is a trend that’s built on something of a farce.

The big problem with ethical investing

The problem with ethical investing lies in this one premise – shares are traded on a secondary, not a primary market. What does this mean? Well, it describes the nature of what happens when you buy shares. Contrary to what many ‘ethical investors’ might think, you do not support a company when you buy its shares. You’re not giving money to the company, you are buying the shares off of someone else, another investor who receives the cash when you buy.

It’s the same concept as buying a used car. You’re not ‘supporting Toyota‘ when you buy your neighbour’s old Camry off of them. Toyota doesn’t even get a cut. It’s the same with Toyota shares or the shares of any other company.

So the idea that you’re ‘supporting fossil fuel companies’ by owning their shares makes no sense. Whether you or anyone else owns the shares makes no real difference to the world, or to the world’s demand for fossil fuels (the real thing supporting fossil fuel companies). All you’re doing is cutting yourself out of the profits of these companies by cutting someone else in.

Now if you can’t stomach the idea of receiving these profits, then fine, choose an ethical ETF or some other ethically-branded investment product. But don’t think you’re making a difference either way. The only thing that actually influences how much money a company makes is if and how it sells its products. Not who’s entitled to those profits.

Foolish takeaway

I know ethical investing sounds great on paper, but in reality, you’re usually being charged higher fees for an ethical portfolio that won’t make an iota of difference to the world we’re living in. This might help you sleep at night (and if that’s the case, go for it). But don’t make the mistake of thinking the higher fees you are paying are contributing to anything other than your funds’ bottom line.

More reading

• 2 ASX shares looking much cheaper today
• ASX shares to buy if there’s another crash
• 3 ASX shares for beginners to buy
• Interested in ethical investing? Look at these 3 ETFs
• 3 ASX shares I’d happily buy every month

Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Australian Ethical Investment Ltd. The Motley Fool Australia has recommended Australian Ethical Investment Ltd. 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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There certainly are a large number of growth shares for investors to choose from on the ASX.

Three which I think are among the best the local market has on offer are named below. Here’s why I would buy them:

Bravura Solutions Ltd (ASX: BVS)

The first ASX growth share to consider buying is Bravura Solutions. It is the financial technology company behind the Sonata wealth management platform. This increasingly popular wealth management platform allows financial advisers to connect and engage with clients via computers, tablets, or smartphones. In addition to this, the company has been on an acquisition spree over the last couple of years and now has a collection of software solutions with large addressable markets. Combined, I believe Bravura is well-placed for growth once the pandemic passes.

NEXTDC Ltd (ASX: NXT)

Another ASX growth share to consider is this leading data centre-as-a-service provider. I’ve been very impressed with the way the company has been performing over the last few years. For example, NEXTDC’s customer numbers have grown at a compound annual growth rate (CAGR) of 21% over the last four years. Pleasingly, not only are its customer numbers rising, but the number of services they are using has also been rising. This has led to its interconnections increasing at a CAGR of 31% over the same period. Management notes that this has been driven by the increasing use of hybrid cloud and connectivity inside and outside its data centres due to customers expanding their ecosystems. The good news is that the seismic shift to the cloud is continuing to accelerate. I believe this leaves NEXTDC well-positioned to deliver strong earnings growth over the next decade. 

Xero Limited (ASX: XRO)

A final ASX growth share to consider buying is Xero. I think this cloud-based business and accounting software provider has the potential to grow its earnings at a very strong rate over the coming years thanks to the quality and stickiness of its platform. And while the company has almost 2.5 million subscribers using its platform, this is still only a fraction of its overall market opportunity. Management notes that less than 20% of its global English-speaking target market is using cloud-based accounting software currently. This compares to 50% in the ANZ market. Given the overwhelming benefits of this type of software, I expect more to shift to the cloud in the coming years.

More reading

• 5 things to watch on the ASX 200 next week
• Why this fundie still sees an ASX tech share surge
• 2 must buy ASX 200 shares to snap up right now
• The NEXTDC (ASX:NXT) share price just hit a record high: Can it go higher?
• Why I would buy Altium (ASX:ALU) and these ASX growth shares

James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Xero. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. 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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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Computershare Limited (ASX: CPU)

According to a note out of Citi, its analysts have retained their sell rating and $12.00 price target on this stock transfer company’s shares. Citi believes that FY 2021 will be a tough year for the company due to the numerous headwinds it is facing. And while it does expect these headwinds to ease eventually, it fears it could be FY 2022 until there is an improvement in its performance. The Computershare share price ended the week at $12.29.

New Hope Corporation Limited (ASX: NHC)

A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating and cut the price target on this coal miner’s shares to 90 cents. Macquarie notes that New Hope delivered a weaker than expected FY 2020 result last week. Unfortunately, the broker doesn’t expect an improvement any time soon due to reducing production at New Acland and weak thermal coal prices. The New Hope share price last traded at $1.28.

Webjet Limited (ASX: WEB)

Analysts at Morgan Stanley have retained their underweight rating and cut the price target on this online travel agent’s shares to $3.00. According to the note, Morgan Stanley is expecting another sizeable loss from Webjet in FY 2021 due to its exposure to the struggling leisure air travel market. And although it expects the company to return to profit in FY 2022, it doesn’t see value in its shares at the current level. The Webjet share price was fetching $3.66 at Friday’s close.

More reading

• Is the Soul Patts (ASX:SOL) share price a buy?
• Top brokers name 3 ASX shares to sell today
• Why the Flight Centre (ASX:FLT) share price and Webjet (ASX:WEB) share price are taking off
• Why Kathmandu, New Hope, Recce, & Ramelius shares are dropping lower today
• ASX 200 falls 0.7%, UK and travel shares drop

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. 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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Last week saw a large number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Citi, its analysts have retained their buy rating and lifted the price target on this gaming technology company’s shares to $34.60. The broker notes that its U.S. land-based business is recovering quicker than expected with the vast majority of its machines now in operation. In addition to this, it believes that new machine sales will start to pick in the near term and has upgraded its estimates accordingly. I agree with Citi on Aristocrat Leisure and would be a buyer of its shares.

Pushpay Holdings Ltd (ASX: PPH)

Analysts at Credit Suisse have retained their outperform rating and lifted their price target on this donation platform provider’s shares to NZ$9.30 (A$8.63). According to the note, Credit Suisse believes Pushpay is providing churches with an indispensable service and expects it to benefit greatly from an acceleration in digital donations because of the pandemic. In light of this, the broker suspects the company will outperform its guidance once again in FY 2021. I agree with Credit Suisse and believe Pushpay would be a fantastic long term option for investors.

Westpac Banking Corp (ASX: WBC)

A note out of Goldman Sachs reveals that its analysts have reiterated their buy rating but trimmed their price target on this banking giant’s shares slightly to $19.80. Although Westpac’s $1.3 billion settlement was higher than the broker expected, it believes the lifting of this dark cloud could be a big positive for its shares. Goldman notes that Westpac’s shares are trading at a significant discount to its peers and feels this could narrow now the bad news is out of the way. I would have to agree with Goldman Sachs on this one as well. I think Westpac could be a good option if you don’t already have exposure to the banks.

More reading

• How to be the next Warren Buffett with ASX shares
• $3,000 invested in these 3 ASX shares could make you a fortune over the next 10 years
• ASX 200 finishes the week with a bang
• Are ASX bank shares a buy after lending rules eased?
• Will the Reserve Bank cut the cash rate again in October?

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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 Top brokers name 3 ASX shares to buy next week appeared first on Motley Fool Australia.

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I think investing in exchange-traded funds (ETFs) could be a very good choice with $10,000.

But there are lots of different ETFs. Some are focused on one particular country like Vanguard Australian Shares Index ETF (ASX: VAS). Others are focused on a particular industry like Betashares Global Cybersecurity Etf (ASX: HACK).

If I had $10,000 to invest into ETFs then these are the ones I’d pick:

Betashares Global Quality Leaders ETF (ASX: QLTY) – $5,000

I think this could be one of the best ETFs to own. Some broadly diversified ETFs don’t produce strong returns. And country-specific ones are obviously limited to one country.

This idea gives exposure to quality businesses listed across the world. It’s invested in 150 great businesses outside of Australia. To make it into the ETF’s holdings, a business needs to rank well on: return on equity (ROE), debt to capital, cash flow generation ability and earnings stability.

If a business ranks well on those metrics then it gives it a great chance of producing good shareholder returns. The biggest holdings in the ETF are: Nike, Keyence, Nvidia, Novo Nordisk, Intel, Texas Instruments, Adobe, Intuit, UnitedHealth and Johnson & Johnson.

Around a third of the shares are outside of the US and more than half of the sector allocations are to IT and healthcare. I like those two sectors because they offer secular growth.

The ETF has annual management fees of 0.35% and since inception in November 2018 it has produced net returns of 19.6% per annum.

Betashares Ftse 100 ETF (ASX: F100) – $3,000

The UK share market has been unloved in recent years because of Brexit and now COVID-19. Indeed, over the past year the net return has actually been a decline of 14.4%.

But there are plenty of good, global businesses on the London Stock Exchange that are worth getting exposure to in my opinion. Investments include: Astrazeneca, Glaxosmithkline, British American Tobacco, Diageo, HSBC, Unilever, Rio Tino, Reckitt Benckiser, BP, Royal Dutch Shell, BHP, National Grid, Vodafone, London Stock Exchange, BAE Systems, Scottish Mortgage Investment Trust and Ocado.

I think these are high-quality names and will be able to do well over the long-term.

The ETF has an annual management fee of 0.45% per annum and it’s trading with a price/earnings ratio of just 15.

I believe getting exposure to just different companies and currencies is a good idea.

Vanguard FTSE Asia Ex-Japan Shares Index ETF (ASX: VAE) – $2,000

Asia has been one of the best regions in getting COVID-19 under control which has helped get their economies mostly back to normal.

Over the long-term I think Asia could be a region that delivers good economic growth, which should be helpful for the underlying businesses.

The ETF has over 1,350 holdings from across the region, excluding Japan. Its biggest holdings are: Alibaba, Tencent, Taiwan Semiconductor Manufacturing, Samsung, AIA, Meituan Dianping, Reliance Industries, JD.com, China Construction Bank and Ping An Insurance.

It has an annual management fee of 0.40% per annum. The ETF has delivered annual returns per annum of 9.7% since inception in December 2015 which has included issues like the trade war as well as COVID-19.

Aside from the Asia exposure, one of the main reasons to like this ETF so much is its investment metrics. According to Vanguard, it has a price/earnings ratio of around 17, an earnings growth rate of 12.7% and a return on equity ratio of 15.3%. These are solid numbers for an entire ETF. Earnings growth and return on equity is a good indicator of future returns. COVID-19 has harmed earnings in the short-term, but it could bounce back. 

Foolish takeaway

I like each of these investment ideas and I think they offer good diversification. They offer something quite different to a typical Australian or American based ETF. I think the BetaShares global quality one is best, but I like the look of UK shares and Asia right now too.

More reading

• Why I just bought shares of this ASX ETF
• COVID-19 fear hits the UK, 2 ASX shares to buy
• Where I’d invest $500 into ASX shares
• Here’s how I would spend $10,000 on ASX shares right now
• 3 top ASX shares I would love to buy this September

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of BETA CYBER ETF UNITS. 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 Where I’d invest $10,000 into ETFs right now appeared first on Motley Fool Australia.

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