Author: therawinformant

The S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and is dropping lower this afternoon. At the time of writing the benchmark index is down 0.7% to 6,011.7 points.

Four shares that are falling more than most today are listed below. Here’s why they are tumbling lower:

The Audinate Group Ltd (ASX: AD8) share price is down 5% to $5.10 following the release of a trading update. That update reveals that the audio solutions company posted flat unaudited revenue of approximately US$20.4 million in FY 2020. Unaudited EBITDA came in 28.5% lower at A$2 million for the 12 months. Demand for Audinate’s products has been impacted significantly by the pandemic.

The Breville Group Ltd (ASX: BRG) share price is down almost 6% to $24.02. This decline appears to be down to profit taking after the appliance manufacturer’s shares stormed notably higher earlier this week. Investors were buying Breville’s shares after Morgan Stanley initiated coverage on the company with an overweight rating and $28.00 price target.

The Zip Co Ltd (ASX: Z1P) share price is down 7.5% to $6.08. Investors have been selling the buy now pay later provider’s shares after it was downgraded by analysts at UBS. According to the note, the broker has downgraded Zip Co to a sell rating with a $5.70 price target. It doesn’t believe the risk/reward on offer with its shares is enough to invest.

The Zoono Group Ltd (ASX: ZNO) share price has crashed 11% lower to $2.63. This follows the release of the biotech company’s fourth quarter update this morning. According to the release, unaudited fourth quarter revenue came in at NZ$20.9 million. This compares to negligible sales in the prior corresponding period and sales of NZ$15.7 million in the third quarter of FY 2020. This was driven by increasing demand for its antimicrobial solutions during the pandemic. Investors appear to have been expecting even stronger sales.

More reading

• Audinate share price sinks on trading update
• ASX 200 flat: Big four banks and travel shares push higher, Breville tumbles lower
• ASX BNPL shares: should you invest in the fastest growing industry of 2020?
• 2 ASX shares I’d buy if the market crashes again
• Zoono share price sinks lower despite COVID-19 sales surge

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 ZIPCOLTD FPO. The Motley Fool Australia has recommended AUDINATEGL 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.

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I believe ASX medical shares are among the most defensive on the market. After all, people require medical treatment regardless of the state of the economy. Despite the volatility seen in share markets as a result of COVID-19, the S&P/ASX 200 Healthcare Index (ASX: XHJ) has increased 21% over the past year. By comparison, the S&P/ASX 200 (ASX: XJO) has fallen nearly 10%. 

The healthcare sector is involved in the fight against coronavirus, but also stands to benefit from long-term trends such as the aging population and increased focus on personal health. Globally, some $6.5 trillion is spent on healthcare every year, according to the World Health Organisation (WHO). On that note, let’s take a look at three ASX medical shares to hold for the long term. 

3 ASX medical shares to hold for the long term

Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) 

Fisher & Paykel Healthcare has been in the respiratory care market since 1971. The company offers a range of products and systems used in respiratory and acute care and in the treatment of obstructive sleep apnea. Fisher & Paykel’s products have been in strong demand in the fight against coronavirus. Its respiratory humidifiers and consumables are used in treating COVID-19 patients which has resulted in an increase in demand globally, causing the company to ramp up production. 

Fisher & Paykel reported record results for the financial year ended 31 March 2020. Operating revenue increased 18% over the previous year to reach $1.26 billion. This was largely driven by growth in the use of Fisher & Paykel’s Optiflow nasal high flow therapy, demand for products to treat COVID-19, and strong hospital hardware sales. “The 2020 financial year was already on track to deliver strong growth before the coronavirus impacted sales,” said CEO Lewis Gradon. He went on to comment “Beginning in January, the demand for our respiratory humidifiers accelerated in a way that has been unprecedented.” 

Fisher & Paykel’s Hospital products group, which includes products used in respiratory, acute, and surgical care, saw operating revenue increase 25%. The Homecare product group, which includes products used in the treatment of obstructive sleep apnea and home respiratory support, saw revenue rise 9%. Net profit after tax increased 37% in FY20 to $287.3 million, with a final dividend of 15.5 cents per share. This represents a 15% increase on the previous final dividend. 

In the first three months of FY21, growth in the Hospital product group has continued to accelerate. Hardware growth is tracking at over 300% while a one-third increase has been seen in consumables. Fisher & Paykel has provided guidance of full year operating revenue of $1.48 billion for FY21. This would give net profit after tax of approximately $325 million to $340 million.

Cochlear Limited (ASX: COH) 

Cochlear is behind cochlear implants which are used to help the hearing impaired. Unlike hearing aids, which amplify sounds, cochlear implants bypass the damaged part of the ear and stimulate the hearing nerve directly. The implants work by using electrical stimulation to replace the function of the inner ear (cochlea). 

The ASX medical share was negatively impacted by the coronavirus pandemic as infection control measures resulted in many implant operations being deferred. A significant decline in surgeries across major markets materialised. Although implant surgeries are restarting in some major markets, the rate of recovery is unclear. Nonetheless, many of the delayed surgeries are expected to progress once hospitals resume normal operations. 

As a result of the decline in surgeries, Cochlear saw sales revenue decline 60% in April with most elective surgeries postponed across the United States and Western Europe. In China, surgeries recommenced in late February and are now running close to pre-virus rates despite Beijing, the largest surgery centre, remaining closed to elective surgery. Implant surgeries have also restarted in the US, Germany and Australia. 

Cochlear has significantly reduced non-essential spending and capital expenditure pending a sustained increase in surgeries. The company strengthened its liquidity position with a $1.1 billion capital raising and $225 million in debt facilities. Longer term, there remains a significant unmet need for cochlear and acoustic implants that is expected to underpin long-term growth for Cochlear. Its enhanced liquidity position will enable the business to weather the temporary decline in demand caused by COVID-19 while continuing to progress the R&D pipeline. 

Paradigm Biopharmaceuticals Ltd (ASX: PAR) 

Paradigm is an ASX medicare share focused on repurposing the drug pentosan polysulphate sodium (PPS). Previously used to treat bladder inflammation and deep vein thrombosis, PPS has anti-inflammatory and tissue regenerative properties. Paradigm has developed an injectable form of PPS (Zilosul) which is being trialled in the treatment of osteoarthritis. 

Yesterday, Paradigm released data showing Zilosul reduced cartilage degradation in osteoarthritis patients. Data from one patient cohort showed their chronic pain response reduced by a mean 44.9% with Zilosul treatment. 85.7% of patients reported a moderate to considerable improvement in their condition following treatment. A number of former NFL players with knee osteoarthritis have also been treated with Zilosul under an Expanded Access Program with results expected in early August. 

Paradigm plans to apply to the Therapeutic Goods Administration (TGA) for provisional approval of Zilosul. Data from the clinical trials and Expanded Access Program will be used to support the application. PPS has a long track record of usage prior to Paradigm provisioning it to treat osteoarthritis which will also assist in obtaining regulatory approval. 

Osteoarthritis is the most common joint disorder in the United States. Symptomatic knee osteoarthritis occurs in 10% of men and 13% of women aged 60 years and older. The number of people impacted by oseteoarthiris is expected to grow rapidly due to the increase in geriatric and obese populations. The osteoarthritis therapeutics market was estimated to be worth $6.8 billion in 2019 and is projected to reach $10.1 billion by 2024, with a compound annual growth rate of 8.1%. If Zilosul proves successful in treating osteoarthritis, Paradigm could capture a significant portion of this market. 

Paradigm is also looking beyond osteoarthritis to broader uses of PPS. A trial is planned to evaluate the drug in the treatment of Mucopolysaccharidosis. Furthermore, a commercial research agreement with an Australian University is being finalised which will investigate the use of PPS in viral induced respiratory diseases.

More reading

• 5 ASX shares with huge moats to own today
• Stock of the day: Paradigm Biopharmaceuticals share price climbs 6% on clinical data
• Why these are the top performing ASX 200 shares over the past year
• Why Afterpay, ELMO, Oil Search, & Paradigm shares are racing higher
• 3 ASX 200 shares to buy and hold for a decade

Kate O’Brien owns shares of Cochlear Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. 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.

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The Pointsbet Holdings Ltd (ASX: PBH) share price is outperforming the market this morning after it announced securing an operating license in one US state.

The Pointsbet share price jumped 1.2% to $5.72 even as the S&P/ASX 200 Index (Index:^AXJO) gave up early gains to trade 0.2% in the red at the time of writing.

Shares in the online bookmaker is also outperforming other tech darlings. The Afterpay Ltd (ASX: APT) share price gained 0.3% to $68.45 while the Xero Limited (ASX: XRO) share price fell 0.6% to $91.21.

New gaming market opens

Investors got excited after Pointsbet’s subsidiary was issued a temporary operating permit by the Illinois Gaming Board.

This means Pointsbet can start retail and online sports betting operations that state. This assumes its partner, Hawthorne Race Course Inc. will also be granted a Master Sports Wagering Licence.

Illinois only recently passed legislation allowing online sports betting. The governor of the state signed the legislation into law on 28 June, 2019, and there’s a race among companies to start offering these services to the public.

COVID-19 tailwind for the sector

Online shopping got a big boost from the COVID-19 pandemic, and online betting is no exception. Consumers that are stuck-at-home and practicing isolation are looking for entertainment. You only need to look at the Netflix Inc (NASDAQ: NFLX) share price to see what I mean.

From that perspective, Pointsbet will benefit from this trend. The COVID-19 outbreaks at Star Entertainment Group Ltd’s (ASX: SGR) Sydney casino underscores this point.

Another support for the Pointsbet share price

Further, investors hunting for an alternative to the Jumbo Interactive Ltd (ASX: JIN) share price might also be drawn to Pointsbet.

Jumbo’s share price was hit hard as it needs to pay Tabcorp Holdings Limited (ASX: TAH) more to sell its online lotteries. Being beholden to one large commercial partner always carries risk.

This also explains why the Jumbo share price collapsed 28% since the start of calendar 2020 when Pointsbet rallied 20%.

A good ASX bet

But Pointsbet isn’t the only company that will benefit from the shift to online gambling. The Aristocrat Leisure Limited (ASX: ALL) share price should also do well.

While Aristocrat’s land-based business of supplying poker machines to casinos, hotels and clubs is impacted by social restrictions, its digital gaming division is the key growth driver for the group.

It’s social gaming apps are very popular and are among the most downloaded apps on Apple and Android phones.

Aristocrat is one of my key ASX stock picks for FY21.

More reading

• ASX 200 flat: Big four banks and travel shares push higher, Breville tumbles lower
• Why PointsBet, Recce Pharmaceuticals, Vocus, & Webjet shares are storming higher
• The best ASX shares to buy right now with $10,000
• Should you buy Fortescue shares at an all-time high?
• Up 31% in 1 month: is the Saracen share price a buy?

Brendon Lau owns shares of Aristocrat Leisure Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Pointsbet Holdings 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 Netflix and Pointsbet Holdings 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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The Audinate Group Ltd (ASX: AD8) share price is trading lower for the day after the company released a trading update earlier this morning. Here are some of the highlights from the company’s announcement and an outlook for 2020 and beyond.  

Highlights from Audinate’s trading update

In this morning’s trading update, Audinate reported unaudited revenue of $30.3 million for the 12 months to 30 June 2020, with a gross margin of 77%. As a result, Audinate recorded unaudited EBITDA of $2.0 million for FY20 with $29.3 million cash on hand as at 30 June.

Audinate also provided a financial update on its performance in the fourth quarter of FY20 and highlighted the impact of the COVID-19 pandemic and government restrictions on its business. For the fourth quarter, Audinate generated US$4 million in unaudited revenue, with the company’s management highlighting a recovery in revenue and sales in June.

The outlook for Audinate

Audinate specialises in hardware and software solutions for the audio-visual (AV) market. The company’s flagship and award-winning Dante program is a global leader in AV connectivity. It eliminates the need for traditional analogue connections by transmitting synchronised audio signals across large distances via IP networks. As a result, Audinate’s platform is used extensively across the professional live sound, broadcasting and recording industries globally.

Due to the pandemic, Audinate was forced to withdraw its FY20 growth guidance as government lockdowns impacted key markets and large gatherings. The company has contracted manufacturing operations in China and Malaysia which were impacted during the height of the pandemic. In an earlier trading update, Audinate’s management assured investors that the company is well positioned with a strong balance sheet.

In response to the pandemic, Audinate launched a range of marketing campaigns to highlight the benefits of the Dante program to industries needing to adapt to remote working conditions. Audinate noted the challenging trading conditions over the next 6 months and expects cash operating costs to be in line with FY20 if exchange rates remain stable.

Foolish takeaway

The Audinate share price was up more than 8% in early trade after hitting an intraday high of $5.82. Since then, the company’s shares have been sold down and are currently trading at $5.07 which is nearly 6% lower for the day.

More reading

• 3 quality ASX shares to buy right now with $3,000
• Are these small cap ASX tech shares future stars?
• ASX tech shares: 2 exciting small caps to watch closely
• 3 undervalued ASX growth companies to add to your portfolio

Nikhil Gangaram 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. The Motley Fool Australia has recommended AUDINATEGL 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.

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At lunch on Thursday the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and is trading mostly flat at 6,048.8 points. 

Here’s what is happening on the market today:

Bank shares push higher.

The big four banks are trying their hardest to drive the ASX 200 higher on Thursday. All four banks are pushing higher at lunch, with the National Australia Bank Ltd (ASX: NAB) share price the standout performer. It is up 1.2% at the time of writing. Investors appear to have responded positively to news that Australia added almost 211,000 jobs to the economy in June.

Unemployment data

This morning the Australian Bureau of Statistics released its employment data for the month of June. According to the release, seasonally adjusted employment increased by 210,800 people during the month. And while the unemployment rate rose month on month from 7.1% to 7.4%, this was due to more people going back out to look for work. Bjorn Jarvis, head of labour statistics at the ABS, explained: “The easing of COVID-19 restrictions in June saw an extra 280,000 people in the labour force, with more people in employment, and more actively looking and available for work.”

Travel share rise.

Promising coronavirus vaccine news in the United States has given travel and tourism shares a boost on Thursday. The likes of Qantas Airways Limited (ASX: QAN) and Webjet Limited (ASX: WEB) are outperforming the benchmark index at the time of writing. This follows the release of data published by the New England Journal of Medicine which shows Moderna’s coronavirus vaccine produced a robust immune response in all 45 patients in its early stage human trial.

Best and worst ASX 200 performers.

The best performer on the ASX 200 on Thursday is the Vocus Group Ltd (ASX: VOC) share price with a gain of almost 5%. Last week UBS upgraded its shares to a buy rating with a $3.60 price target on valuation grounds. The worst performer has been the Breville Group Ltd (ASX: BRG) share price with a 5% decline. This appears to be down to profit taking after some strong gains this week.

More reading

• Why the Pointsbet share price is outperforming today
• Why PointsBet, Recce Pharmaceuticals, Vocus, & Webjet shares are storming higher
• Why Goldman Sachs’ revenue surge bodes well for the Macquarie Group share price
• Should you buy Fortescue shares at an all-time high?
• Up 31% in 1 month: is the Saracen share price a buy?

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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The Beacon Lighting Group Ltd (ASX: BLX) share price surged more than 13% today before falling back to a more modest gain of 5.8% at the time of writing. The rise came following a positive trading update this morning in which the lighting retailer announced a strong sales and profit result for FY20.

Trading update

Based on the update, Beacon Lighting has reported statutory sales of $252 million representing growth of approximately 2.6%. 

Additionally, underlying sales of approximately $251 million when excluding Beacon Energy Solutions representing sales growth of approximately 8%.

Company stores sales growth was 7.2% with the biggest jump in sales coming from the company’s online channel with growth of 50.6%.

Statutory net profit after tax (NPAT) growth was approximately 38.5% to $22 million. However, underlying NPAT when including the Parkinson Distribution Centre sale, lease accounting standard AASB 16 and Beacon Energy Solutions was approximately $19 million. This represents profit growth of 16.7%. 

The above figures are subject to audit before the release of the accounts on 20 August 2020.

Furthermore, the strong trading update follows a business update released on 17 June 2020. In last month’s update, Beacon Lighting also revealed robust sales growth for H2 FY20. A significant contributor to the growth was the company’s online platform. 

CEO comments 

Beacon Lighting CEO, Glen Robinson, said:

“Despite the disruptive times of H2 FY2020 the group has been able to achieve outstanding results…Our ongoing commitment to innovate the lighting and ceiling fan categories, ensures our customer(s) receive the latest products. This together with exceptional service and great value has helped the business navigate through the global pandemic so far, however there still remains a lot of uncertainty for the future and the Australian economy”.

About Beacon Lighting

Beacon Lighting is a specialty retailer providing customers with lighting products encompassing the latest styles, trends and innovations. The company opened its first store in Melbourne in 1967 and has since grown to over 99 stores nationwide in Australia. 

In FY20, the group paid its shareholders a dividend of 4.6 cents which represents a yield of 4.22% on the current share price.

At the time of writing, the Beacon Lighting share price is trading at $1.09, 0.9% lower than this time last year. At the current price, its market capitalisation is $241.48 million. 

More reading

• Here’s where this ASX fund manager sees value for investors
• Why the Beacon Lighting share price is soaring 22% today

Motley Fool contributor Matthew Donald 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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One of the best performers on the Australian share market on Thursday has been the Recce Pharmaceuticals Ltd (ASX: RCE) share price.

This morning the pharmaceutical company’s shares rocketed a massive 31% higher to a record high $1.50.

When its shares hit that new record high, it meant they were up a whopping 315% since the start of the year.

Why did the Recce Pharmaceuticals share price rocket higher?

Investors have been fighting to get hold of the company’s shares after it announced an agreement with Path BioAnalytic.

According to the release, the agreement will see the U.S. based precision medicine company study its RECCE 327 and RECCE 529 compounds against SARS CoV-2 – the virus causing COVID-19.

Researchers at Path BioAnalytic will evaluate RECCE 327 and RECCE 529 against SARS-CoV-2 in an ex vivo respiratory organoid model system at the state-of-the-art Biosafety Level 3 containment laboratories of a leading US research university.

Management advised that preliminary data is anticipated to be available in September 2020.

What are these compounds?

RECCE 327 is a broad-spectrum synthetic antibiotic formulated using synthetic polymer technology to treat blood infections and sepsis.

Whereas RECCE 529 is a new synthetic polymer formulation, built upon the company’s anti-infective expertise.

Recce Pharmaceuticals’ Non-Executive Chairman, Dr. John Prendergast, commented: “The current pandemic underscores the need for more effective treatment approaches to prevent infectious diseases. Over the past few months Recce has received a number of expressions of interest from several universities and research organisations to collaborate on the development of potential new therapies to address the unmet needs of patients with COVID19.”

“We’re excited to be working with experts at Path BioAnalytics to investigate the potential effectiveness of Recce’s compounds in treatment of SARS-CoV-2 infection using their advanced respiratory organoid model system,” he added.

Is this the real deal?

While this is promising news, the company has warned investors not to get excited just yet.

It explained: “While Recce is delighted that its compounds have been selected for potential investigational therapies, such selection is not an indication that the compounds are safe or effective for use in treatment of SARS-CoV-2.”

I would suggest investors keep their powder dry and wait for data to be released from the trials before considering an investment.

More reading

• Why PointsBet, Recce Pharmaceuticals, Vocus, & Webjet shares are storming higher
• 2 ASX shares that could be 10-baggers

Motley Fool contributor James Mickleboro 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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Market research firm Ibisworld recently published its report on the top 10 fastest growing industries in Australia by revenue growth. This list was published for free on their website and measures the revenue growth of more than 750 industries in Australia from 2019–2020. 

Taking out the number one spot on the list, with a massive 12-month revenue growth of 65.8%, is the buy now, pay later sector, or BNPL. We take a closer look at some of the major ASX buy now, pay later shares below. 

Who are the major ASX buy now, pay later players?

Afterpay Ltd (ASX: APT)

Afterpay is arguably the most well known BNPL brand in Australia. Founded in 2017 in Melbourne, Afterpay is a local legend. There aren’t many shop windows left that are missing the Afterpay sticker!

With a market cap of $18.84 billion at the time of writing, Afterpay is a heavyweight. The BNPL giant wasn’t immune to the COVID-19-induced market crash in March this year, however, Afterpay shares have since increased by a staggering 780%+ since their March low. An even larger number is the 2,500% share price gain since Afterpay’s IPO in July 2017 – that’s an impressive 3-year run.

Between March and April this year, Chinese fintech giant Tencent Holdings acquired approximately 5% ownership in Afterpay. Tencent holds a wide variety of positions across many companies with internet-related products. If the share price increase in Afterpay following this substantial holding announcement is anything to go by, investors in Afterpay were pleased with the Chinese interest.

Zip Co Ltd (ASX: Z1P)

There’s a difference between Afterpay and Zip from a consumer point of view. Whilst Afterpay is static on a payment schedule (similar to layby and strictly over 4 fortnight periods), Zip allows consumers to determine their own schedule. This can be an important point of difference for shoppers on a budget.

Additionally, Zip splits its business model into 2 pieces: Zip Pay, for accounts with a limit of $1,000; and Zip Money, for accounts with limits above $1,000. Customers can purchase multiple items across multiple stores and then receive a single monthly invoice from Zip. From here, they can choose to pay the full amount or make custom instalments.

With a market cap of $2.47 billion at the time of writing, Zip Co is much smaller than Afterpay, however still considered a major player in the BNPL industry. Since its IPO in September 2015, Zip Co has provided shareholders with growth to the tune of 2,400%. 

Who are the BNPL ‘up and comers’?

There are a number of smaller BNPL companies listed on the ASX. Too many, in fact, for the confines of a single article, but here’s a look at one that is challenging the big players:

Sezzle Inc (ASX: SZL)

A market cap of $567 million at the time of writing and similar product offerings to Afterpay means that Sezzle is an up-and-coming competitor in the BNPL space. However, a key difference between Afterpay and Sezzle is market share. According to SimilarTech, Afterpay has more website coverage than Sezzle across all categories. 

Market share is not only important to revenue but also simply for brand recognition, so, although Sezzle has experienced impressive growth recently in its share price, in my view it still needs a little more market dominance before it can seriously challenge Afterpay and Zip.

Foolish takeaway

With subtle differences between the BNPL providers and new players coming on the scene, it makes sense to spread an investment in the industry across a few names. While Afterpay might appeal to the younger crowd, Zip offers monthly payment scheduling, which can be the point of difference needed for a salaried consumer.

With BNPL being named this year’s highest revenue growth industry by Ibisworld, the money will likely continue to flow into the sector. I believe investors in ASX buy now, pay later shares can expect pleasing results for the second half of this year and beyond. 

More reading

• 2 ASX shares I’d buy if the market crashes again
• 3 reasons the Openpay share price is better than Afterpay
• ASX 200 jumps almost 2% today, Afterpay rises
• 3 things millennial investors should do in this ASX bull market
• Broker warns Afterpay and these ASX stocks are caught in an overcrowded trade

Motley Fool contributor Glenn Leese 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 AFTERPAY T FPO. 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.

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