Stock Pick

Author: therawinformant

  • Want to beat the market? Try these 3 ASX growth shares

    share market beating

    I’m a big fan of investing in growth shares, so feel quite fortunate to have such a large number of them to choose from on the local market.

    Amongst the numerous high quality options available to investors, I think the three listed below are up there with the best of them right now.

    Here’s why I think growth investors ought to buy them:

    Altium Limited (ASX: ALU)

    The first ASX growth share to consider buying is Altium. I believe the electronic design software company has an incredibly positive long term outlook thanks to the increasing demand for its award-winning printed circuit board (PCB) design platform. This platform has exposure to the rapidly growing Internet of Things (IoT) market. According to IDC, it estimates that there will be 41.6 billion connected IoT devices generating 79.4 zettabytes of data in 2025. As the majority of IoT devices have PCBs inside them, I feel this bodes well for its earnings growth in the future.

    Bravura Solutions Ltd (ASX: BVS)

    Another growth share to consider buying is Bravura Solutions. It is a fast-growing provider of software and services to the wealth management and funds administration industries. I’ve been very impressed at the way the company has been performing in recent years and particularly its Sonata wealth management platform. This platform has been growing at a very strong rate and looks set to continue doing so over the coming years thanks to its quality and large global market opportunity. It should be bolstered by recent acquisitions that have opened up the company to new markets.

    ResMed Inc. (ASX: RMD)

    A third growth share to consider buying is this leading developer of sleep treatment products. I think ResMed shares could be long term market beaters due to its strong earnings growth potential thanks to its industry-leading products and its large market opportunity. In respect to the latter, management estimates that there are 1 billion people impacted by sleep apnoea worldwide. However, the majority of these people are undiagnosed and potentially at risk of life-threatening conditions. If a greater proportion of these people are diagnosed over the coming years, then sales of its products could increase materially.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    See the 5 stocks

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    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 Altium. The Motley Fool Australia owns shares of and has recommended Bravura Solutions Ltd. The Motley Fool Australia has recommended 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.

    The post Want to beat the market? Try these 3 ASX growth shares appeared first on Motley Fool Australia.

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  • ‘Housing prices will continue to accelerate through the summer, demand didn’t go away’: Economist

    'Housing prices will continue to accelerate through the summer, demand didn't go away': EconomistMark Fleming, First American Chief Economist joins the On the Move panel to discuss
    to discuss the impact of COVID-19 on the housing market.

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  • Did Hedge Funds Make The Right Call On BioCryst Pharmaceuticals, Inc. (BCRX) ?

    Did Hedge Funds Make The Right Call On BioCryst Pharmaceuticals, Inc. (BCRX) ?We know that hedge funds generate strong, risk-adjusted returns over the long run, which is why imitating the picks that they are collectively bullish on can be a profitable strategy for retail investors. With billions of dollars in assets, professional investors have to conduct complex analyses, spend many resources and use tools that are not […]

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  • Now Might Not Be the Greatest Time in the World to Buy Southwest Stock

    Now Might Not Be the Greatest Time in the World to Buy Southwest StockAs I write this on July 15, Southwest (NYSE:LUV) is having an excellent day on the markets with LUV stock up more than 8% on the day and just a little more than 60 minutes of trading until the 4 p.m. bell. Source: Carlos E. Santa Maria / Shutterstock.com The $2.81 move by Southwest puts it near its one-month high, a sign that its stock might be coming back to life. However, before you jump in, you might want to consider a couple of points that don't work in its favor. Donald Trump might like the novel coronavirus to magically disappear, but as anyone who's studied science knows, the data doesn't lie. The pandemic could be here in the U.S. well into 2021. InvestorPlace – Stock Market News, Stock Advice & Trading TipsDr. Robert Redfield, head of the U.S. Centers for Disease Control and Prevention, spoke at a July 14 webinar for the Journal of the American Medical Association, suggesting that the fall and winter could be the country's worst public health crisis in its history. "I do think the fall and the winter of 2020 and 2021 are going to be probably one of the most difficult times we've experienced in American public health because of … the co-occurrence of COVID and influenza," Redfield said in the webinar. * 15 Growth Stocks That Are Being Propped Up By Low Rates "Keeping the health care system from being overstretched, I think, is really going to be important. And the degree that we're able to do that, I think, will define how well we get through the fall and winter."Redfield makes it very clear that if people wear masks 100% of the time, they're outside their home bubble, the country will have a much better time coping. For Southwest's sake, and that of its fellow airlines, mask-wearing is essential to a return to anywhere near the number of flights it had a year ago. A Closer Look at LUV StockUnfortunately, I have almost no confidence in North Americans (yes, that includes Canada and Mexico) being conscientious enough to heed the call. And so, more people will die unnecessarily, and Southwest's revenues will go back into the toilet. Covid-19 is winning the battle in a landslide. The Motley Fool's Adam Levine-Weinberg does a good job highlighting why the improvements in air travel experienced between Memorial Day weekend and the July 4 holiday weekend are likely to be all for nothing. "[S]everal cities and states are requiring 14-day quarantines for anyone arriving from COVID-19 hotspots. The list of hotspots on the tri-state quarantine list for New York, New Jersey, and Connecticut has grown to encompass 22 states, accounting for more than half of the U.S. population," Levine-Weinberg wrote July 15. Right now, according to the Transportation Security Administration (TSA), the number of people it is screening per day appears to have plateaued at 25% of last year's figures. With Florida setting daily records of new cases, that number is likely to revisit 10% where it was in April. Luckily for Southwest, it has a relatively healthy balance sheet compared to its largest rivals, which means it ought to be able to ride out any downturn over the next few months and into 2021. The bad news, as Levine-Weinberg points out, is that a chunk of Southwest employees are going to get tossed to the curb come October when the restrictions on layoffs imposed as part of the airline bailout come to an end. It's impossible to know how many employees will be furloughed or laid off. However, because these employees must be given 60 days' notice, investors will start getting a better idea come August. Barring a miraculous disappearance of Covid-19 — something nobody anticipates except for President Trump — the numbers are going to be in the thousands. As of the end of 2019, Southwest had 60,800 employees. A 10% cut, which is not at all unthinkable, would be more than 6,000 people losing their jobs. Like the coronavirus itself, the reality is far worse than anyone could have possibly imagined. The Bottom Line on Southwest Airlines StockAs I stated July 14, if you're going to bet on Southwest — I wouldn't — hedge your bet by putting 50% of that bet into the U.S. Global Jets ETF (NYSEARCA:JETS). It will soften the blow should the U.S. return to a full lockdown scenario. With every passing hour, it's looking more and more likely. Will Ashworth has written about investments full-time since 2008. Publications where he's appeared include InvestorPlace, The Motley Fool Canada, Investopedia, Kiplinger, and several others in both the U.S. and Canada. He particularly enjoys creating model portfolios that stand the test of time. He lives in Halifax, Nova Scotia. At the time of this writing Will Ashworth did not hold a position in any of the aforementioned securities. More From InvestorPlace * Why Everyone Is Investing in 5G All WRONG * America's 1 Stock Picker Reveals His Next 1,000% Winner * Revolutionary Tech Behind 5G Rollout Is Being Pioneered By This 1 Company * Radical New Battery Could Dismantle Oil Markets The post Now Might Not Be the Greatest Time in the World to Buy Southwest Stock appeared first on InvestorPlace.

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  • Barron’s Picks And Pans: Dollar General, IAC, Wells Fargo And More

    Barron's Picks And Pans: Dollar General, IAC, Wells Fargo And More* This weekend's Barron's cover story presents the publication's latest annual ranking of the best annuities. * Other featured articles look at dividend aristocrats roaring back, the political considerations for vaccine makers and retail stocks bucking the trend. * Also: the prospects for index providers, an internet holding company a big bank and more.Cover story "The Best Annuities" by Karen Hube presents a look at the best of what the industry has to offer. For its latest annual ranking, Barron's compiled 100 of the best annuities based on assumptions such as age, gender, size of investment and time horizon.Darren Fonda's "Why MSCI and S&P Global Are Worth Buying at Any Price" points out that investors have rewarded the index providers' growth and could lift MSCI Inc (NYSE: MSCI) and S&P Global Inc (NYSE: SPGI) stocks further as profits climb.In "Dollar Stores Are a Retail Growth Story Even in a Downturn," Teresa Rivas shows why Dollar General Corp. (NYSE: DG) and the like are resilient while many other retailers are struggling. Could there be further upside in these stocks?What effect could the launch of a COVID-19 vaccine before Election Day have? That's what "The Vaccine Race Might Have Political Side Effects" by Josh Nathan-Kazis looks at — and what might it mean for Moderna Inc (NASDAQ: MRNA), Pfizer Inc. (NYSE: PFE) and others in the race.In Eric J. Savitz's "IAC Has Cash, Looks Cheap, and Is Shopping for Deals," see what New York-based internet holding company IAC (NASDAQ: IAC) looks like following the spin-off of the dating site Match.com. Is it a whole new company?See also: 5 Worst-Performing Stocks Of 2010: Where Are They Now?"Dividend Aristocrats Roar Back After Early-Year Stumbles. These 10 Recently Raised Their Payouts" by Lawrence C. Strauss takes a look at what dividend hikes from the likes of Cardinal Health Inc (NYSE: CAH) and Clorox Co (NYSE: CLX) may signal.Might it be time to consider the worst-performing of the big banks this year? So asks Carleton English's "Wells Fargo Stock Has Been Beaten Down. It Could Be a Buy." See how Wells Fargo & Co (NYSE: WFC) compares to its peers.In "9 Cheap Retail Stocks With High Expectations for Earnings," Teresa Rivas shows why, despite plenty of suffering in the retail sector, there are brick-and-mortar winners like Kroger Co (NYSE: KR) and Lowe's Companies Inc (NYSE: LOW).Also in this week's Barron's: * The market gatekeepers that wield enormous power * The annual ranking of the top 100 women advisors * Whether gold will overtake Treasuries in the global hedging battle * What to expect from the next stimulus bill * Why M&A has taken a backseat for activist investorsAt the time of this writing, the author had no position in the mentioned equities.Keep up with all the latest breaking news and trading ideas by following Benzinga on Twitter.See more from Benzinga * Bulls And Bears Of The Week: Apple, Facebook, Tesla And More(C) 2020 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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  • Should We Be Delighted With Enphase Energy, Inc.’s (NASDAQ:ENPH) ROE Of 72%?

    Should We Be Delighted With Enphase Energy, Inc.'s (NASDAQ:ENPH) ROE Of 72%?One of the best investments we can make is in our own knowledge and skill set. With that in mind, this article will…

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  • Top brokers name 3 ASX shares to buy next week

    finger pressing red button on keyboard labelled Buy

    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:

    Afterpay Ltd (ASX: APT)

    According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $101.00 price target on this buy now pay later provider’s shares. Morgan Stanley notes that Afterpay has announced an agreement with Apple Pay and Google Pay for in-store payments in the United States market. The broker believes this could accelerate adoption and protect its first mover advantage in the rapidly growing buy now pay later market. I think Morgan Stanley is spot on and feel Afterpay could be a great buy and hold investment.

    Altium Limited (ASX: ALU)

    Another note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $40.00 price target on this electronic design software company’s shares. This follows the release of Altium’s FY 2020 sales update. While Altium’s sales fell short of its original target of US$200 million, they were ahead of the broker’s expectations. And while the broker believes that the market’s margin expectations are too optimistic given the tough finish to the year, it remains upbeat on its long term growth prospects. I agree with Morgan Stanley on this one as well and would buy Altium shares.

    Beach Energy Ltd (ASX: BPT)

    Analysts at Morgans have upgraded this energy producer’s shares to an add rating with a $1.66 price target. According to the note, the broker believes recent weakness in the Beach share price has created a buying opportunity for investors. In addition to this, it appears optimistic on its long term prospects and is expecting a positive five-year outlook released with its full year results. While I think Morgans makes some good points, I would suggest investors wait for demand for oil to improve before considering an investment.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    See the 5 stocks

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    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 Altium. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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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  • Americans will tolerate ‘1,000 people dying a day’ of coronavirus [Video]

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  • 4 ASX shares I’d buy to protect against a recession

    Share prices down

    Some ASX shares could be good for protection against a recession.

    Are all shares good for recession protection?

    Not every share will prove to be defensive. Indeed some industries like banking are known to suffer during recessions. That’s why the share prices of shares like National Australia Bank Ltd (ASX: NAB) and Australia and New Zealand Banking Group (ASX: ANZ) have fallen so much over the last few months. Though you may be able to pick up a bargain during a recession. 

    Share prices aren’t guaranteed not to fall, that’s what makes the share market so unpredictable. But there are some shares that may not see much of an earnings hit during a recession:

    Here are four ASX shares I’d buy to protect against a recession:

    Share 1: Coles Group Limited (ASX: COL)

    We all need to keep eating whether we’re in a booming economy, a recession or a global pandemic. So a supermarket seems like an obvious idea for protection as people need to keep buying their groceries. Indeed, Coles could see more volume if people are buying food less from restaurants, cafes and takeaways.

    The ASX share has been solid during this COVID-19 period. In the FY20 third quarter it reported that its supermarket sales were up 13.1%. Costs were higher too due to health and safety measures. But it showed that supermarkets are resilient businesses.

    The Coles share price has been steadily rising over the past few weeks. But it still offers a solid dividend, with a projected FY20 grossed-up yield of 4.5%. In terms of valuation, it’s trading at 26x FY20’s estimated earnings.

    Share 2: TPG Telecom Ltd (ASX: TPG)

    TPG is now one of the largest telcos in Australia after merging with Vodafone Australia. The combined business has a lot of synergy potential, both on the cost side and revenue side.

    I don’t know about you, but I view my internet connection as an essential service for my household. I’d keep paying for it over most other things if I were low on money.

    The ASX share receives pleasingly consistent monthly income from its customers. The company also has growth potential with the upcoming 5G technology that could lead to a number of new services like automated cars.

    The telco is expected to pay high ordinary dividends now that the merger has been successful.

    Share 3: Rural Funds Group (ASX: RFF)

    This is a real estate investment trust (REIT) which owns farmland across a variety of sectors including cattle, almonds, vineyards, cotton and macadamias.

    It actually has very reliable rental income and profit because of its leases to high-quality tenants. The regular rental cashflow means Rural Funds shareholders get a lot of earnings and distribution visibility.

    Like I said with Coles supermarkets, we all need to eat food. Rural Funds’ tenants should still be fairly resilient in a recession.

    Rural Funds aims to increase its distribution by 4% each year for unitholders. That’s comfortably more than inflation. The ASX share is able to achieve that distribution growth through two key factors. The first is that there’s rental indexation included in all of its contracts – rent growth is either a fixed 2.5% increase or it’s linked to CPI inflation, plus market reviews.

    At the current Rural Funds share price, it offers a FY21 distribution yield of 5.5% based on the distribution guidance of 11.28 cents per unit for this financial year.

    Share 4: Bubs Australia Ltd (ASX: BUB)

    Nutrition is one of the most important things. Bubs, an infant formula producer, provides an essential product for consumers.

    The ASX share is experiencing very strong growth. In the quarter ending 31 March 2020, both its Chinese revenue and infant formula revenue more than doubled. So not only does it offer potentially defensive earnings, but its revenue is growing at a very fast rate.

    In the next few years I think Bubs will be able to capitalise on the international market opportunity, particularly in places like Vietnam.

    Bubs is an exciting small cap. I like that it’s now cashflow positive which makes it a safer investment so that it doesn’t need external funding for its day to day operations.

    Foolish takeaway

    I think Bubs can produce good returns over the next five years. However, for defensive income I think Rural Funds could be the best pick for yield – it has already proved itself during this COVID-19 period.

    Where to invest $1,000 right now

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

    See The 5 Stocks

    *Returns as of June 30th

    More reading

    Motley Fool contributor Tristan Harrison owns shares of RURALFUNDS STAPLED. The Motley Fool Australia owns shares of and has recommended BUBS AUST FPO and RURALFUNDS STAPLED. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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 4 ASX shares I’d buy to protect against a recession appeared first on Motley Fool Australia.

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  • Top brokers name 3 ASX shares to sell next week

    ASX shares to avoid

    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:

    Cochlear Limited (ASX: COH)

    According to a note out of UBS, its analysts have retained their sell rating and $160.50 price target on this hearing solutions company’s shares. UBS has concerns over rising coronavirus cases and the impact this could have on elective surgeries. In light of this and concerns that the market is expecting too much from its sales growth in the medium term, it holds firm with its sell rating. Cochlear shares were changing hands for $191.91 at the end of the week.

    Whitehaven Coal Ltd (ASX: WHC)

    A note out of the Macquarie equities desk reveals that its analysts have retained their underperform rating but lifted the price target on them to $1.40. Although it was impressed with its very strong fourth quarter production, it notes a significant build up in inventory due to subdued coal markets. As a result, it has concerns that its full year results could disappoint the market in August. The Whitehaven Coal share price closed the week at $1.55.

    Zip Co Ltd (ASX: Z1P)

    Analysts at UBS have downgraded this payments company’s shares to a sell rating with an improved price target of $5.70. According to the note, the broker was pleased with the company’s sales growth during FY 2020. However, it does appear a little concerned by a rise in its bad debts during the fourth quarter. In light of this and its strong share price gains over the last few months, UBS doesn’t believe this risk/reward on offer is sufficient. The Zip share price ended the week at $5.90.

    5 stocks under $5

    We hear it over and over from investors, “I wish I had bought Altium or Afterpay when they were first recommended by The Motley Fool. I’d be sitting on a gold mine!” And it’s true.

    And while Altium and Afterpay have had a good run, we think these 5 other stocks are screaming buys. And you can buy them now for less than $5 a share!

    See the 5 stocks

    *Extreme Opportunities returns as of June 5th 2020

    More reading

    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 Cochlear Ltd. and ZIPCOLTD FPO. The Motley Fool Australia has recommended Cochlear 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.

    The post Top brokers name 3 ASX shares to sell next week appeared first on Motley Fool Australia.

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