Category: Stock Market

3 buy-rated ASX shares

stack of wooden blocks with '1, 2, 3' written on them

With so many shares to choose from on the Australian share market, it can be hard to decide which ones to buy over others.

To narrow things down, I have picked out three options that are highly rated to consider:

Pushpay Holdings Group Ltd (ASX: PPH)

The first ASX share to look at is Pushpay. It is a leading donor management and community engagement platform provider for the faith sector. Pushpay has also boosted its offering with acquisitions. The most recent being the US$150 million acquisition of Resi Media. It is a US-based market-leading streaming solutions provider, servicing more than 70% of the Outreach 100 largest churches in the US. Management notes that it broadens Pushpay’s core product offering and enhances its value proposition to customers, strengthening its digital technology strategy and maintaining its position at the forefront of innovation in the faith sector.

Jarden currently has a buy rating and NZ$2.24 (A$2.15) price target on its shares.

ResMed Inc. (ASX: RMD)

Another ASX share to look at is ResMed. It is a medical device company with a focus on the sleep treatment market. Thanks to its industry-leading products, wide distribution network, and successful acquisitions, ResMed has been growing at a very strong rate over the last few years. The good news is that thanks to its significant market opportunity and the growing prevalence of sleep disorders, it has been tipped to continue doing so for the foreseeable future. Its near term performance is also being boosted by a major product recall from a competitor.

Morgan Stanley is positive on the company and has an overweight rating and $40.20 price target on ResMed’s shares.

Zip Co Ltd (ASX: Z1P)

A final ASX share to look at is Zip. This buy now pay later (BNPL) provider has been growing at a strong rate over the last few years thanks to the increasing popularity of the payment method and its international expansion. This has continued in FY 2022, with Zip recently revealing record quarterly revenue of $136.8 million during the first quarter. This was up 89% year on year and 8% quarter on quarter. The good news is the company still has a very long runway for growth over the next decade thanks to its massive global market opportunity.

Analysts at Morgans are positive on Zip. They currently have an add rating and $8.56 price target on its shares.

The post 3 buy-rated ASX shares appeared first on The Motley Fool Australia.

Should you invest $1,000 in Zip right now?

Before you consider Zip, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Zip wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended PUSHPAY FPO NZX and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended ResMed Inc. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3vOTtgg

Ansell (ASX:ANN) share price hits a new 52-week low today

A stockmarket chart on a red background with an arrow going down, indicating falling share price

The Ansell Limited (ASX: ANN) share price has slipped to a new 52-week low today. Unfortunately for shareholders, this deepens Ansell’s fall from grace. It was only four months ago when the health and safety protection solutions company hit a 52-week high of $44.07.

At the end of Monday’s session, shares in the company finished at $31.30, down 1.07% from their previous close. This means the Ansell share price is now down approximately 29% from its 52-week high milestone.

Let’s have a closer look at what has been happening at the $4.1 billion company.

Going out of fashion

It is perplexing to think a company that delivered strong revenue and earnings growth in its FY21 full-year results is suffering a share price decline. However, that is exactly the case for personal protection equipment (PPE) manufacturer, Ansell.

In August, the company posted a 25.6% increase in sales to US$2 billion. Meanwhile, net profit after tax (NPAT) jumped a staggering 57% year-over-year to US$338 million. Certainly not bad growth for a healthcare company that is 92 years old.

However, the growth story was largely a beneficiary of the COVID-19 pandemic, which created a surge in demand for PPE across the globe. Now, as vaccination rates reach re-opening levels, investors are worried the tailwind might be reversing. Hence, the market is applying downwards pressure to the Ansell share price.

https://platform.twitter.com/widgets.js

As we recently covered, analysts from Macquarie have shared this perspective in its latest broker note. Essentially, the broker foresees a softening in demand for PPE. Consequently, Ansell is predicted to have difficulty raising prices to offset increasing costs being observed with inflation.

As a result, Macquarie suspects the company might fall short of earnings estimates for FY2022. In response, the broker has applied an underperform rating on the company with a $32 share price target for Ansell.

Ansell share price recap

Although Australia is only now beginning to emerge from its broad lockdowns and restrictions, the Ansell share price has been falling since June. Meanwhile, over the past 12 months, the company’s shares have sunk 23% in value. In contrast, the S&P/ASX 200 Index (ASX: XJO) has gained 20.9% during that time.

Having said all that, it is worth mentioning that Ansell is currently trading on a trailing 12-month price-to-earnings (P/E) ratio of 12.6 times. Likewise, the company is boasting a 3.2% dividend yield.

The post Ansell (ASX:ANN) share price hits a new 52-week low today appeared first on The Motley Fool Australia.

Should you invest $1,000 in Ansell right now?

Before you consider Ansell, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Ansell wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ansell Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3mbh0EJ

Why has the Alumina (ASX:AWC) share price fallen 8% over the last week?

Young woman dressed in suit sitting at cafe staring at laptop screen with hands to her forehead looking tense

The Alumina Limited (ASX: AWC) share price has plummeted over the last week despite no news having been released by the company.

Interestingly, the company had a good day on the ASX today. That’s despite the Australian Government pledging to reach net-zero emissions by 2050 ahead of next week’s COP26 climate summit in Glasgow.

As The Motley Fool Australia has previously reported, Alumina is one of the S&P/ASX 300 Index‘s (ASX: XKO) biggest carbon polluters. It also doesn’t have a plan to reach net-zero carbon emissions.

As of Monday’s close, the Alumina share price is $2.11, 1.44% higher than it was at the end of Friday’s session. However, it’s still 8.2% lower than it was this time last week.

For context, the S&P/ASX 200 Index (ASX: XJO) has gained 0.81% in that time. The All Ordinaries Index (ASX: XAO) has also gained 0.84% over the week just been.

Let’s take a look at what might have weighed on the aluminium producer’s share price over the past week.

What’s driving the Alumina share price down?

The Alumina share price’s struggles on the ASX came amid the company’s stock being downgraded by a major broker.

As The Motley Fool Australia reported on Saturday, analysts at Credit Suisse downgraded the company’s stock to a neutral rating and slapped its shares with a price target of $1.90.

The reason behind the broker’s downgrade was its belief that aluminium prices are unsustainable and Alumina’s shares too expensive.

The price of aluminium has slipped since last week. It’s been trending downwards since Wednesday after spending most of October surging higher.

According to data from Business Insider, 1 tonne of aluminium is currently US$2,868.15. That represents a fall of 1.46% over the course of today.  

Additionally, Alumina seems to have suffered through a sell-off last week.

Over the last 4 weeks, an average day has seen around 12.2 million Alumina shares swapping hands.

However, Thursday saw a whopping 41.7 million Alumina shares traded. Wednesday and Friday also saw above-average numbers passed from seller to buyer.

The post Why has the Alumina (ASX:AWC) share price fallen 8% over the last week? appeared first on The Motley Fool Australia.

Should you invest $1,000 in Alumina right now?

Before you consider Alumina, you’ll want to hear this.

Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Alumina wasn’t one of them.

The online investing service he’s run for nearly a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

*Returns as of August 16th 2021

More reading

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3ntOVIt

3 exciting ASX growth shares analysts love

Big green letters spell growth, indicating share price movements for ASX growth shares

There are a lot of growth shares for investors to choose from on the Australian share market.

To narrow things down, I have picked out three ASX growth shares that are highly rated. Here’s what you need to know about them:

ELMO Software Ltd (ASX: ELO)

The first ASX growth share to look at is ELMO. It is a HR and payroll platform provider that has been growing at a rapid rate over the last few years and even during the pandemic. Its popular software platform allows businesses to simplify and streamline a wide range of tasks. Demand has been strong, leading to stellar recurring revenue growth over the last few years. For example, last week ELMO released its first quarter update and revealed Annualised Recurring Revenue (ARR) of $88.5 million, which was up 61% over the prior corresponding period. This was driven by the benefits of acquisitions and a 35% increase in organic revenue.

In response to its update, Morgan Stanley retained its overweight rating and $7.80 price target on ELMO’s shares.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to look at is IDP Education. It is a provider of international student placement services and English language testing services. It was unsurprisingly hit hard by the pandemic. However, the company has been tipped to win market share and resume its rapid growth once the crisis passes and trading conditions recover. In fact, this is already happening. Last week the company revealed that during the first quarter of FY 2022, IELTS volumes were up 84% on the same period last year.

This led to Morgan Stanley retaining its overweight rating and $40.20 price target on the company’s shares.

Temple & Webster Group Ltd (ASX: TPW)

Another growth share to consider is Temple & Webster. It is Australia’s leading online furniture and homewares retailer. It has been growing at a strong rate over the last few years. This has been driven by the shift to online shopping. Pleasingly, this strong growth has continued despite COVID tailwinds easing. Last week the company revealed that its revenue for the period July 1 to 15 October increased 56% over the prior corresponding period.

In response, Credit Suisse retained its outperform rating and lifted its price target on the company’s shares to $15.89.

The post 3 exciting ASX growth shares analysts love appeared first on The Motley Fool Australia.

Wondering where you should 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 could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of August 16th 2021

More reading

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Elmo Software, Idp Education Pty Ltd, and Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Elmo Software. The Motley Fool Australia has recommended Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3maSvI0