Category: Stock Market

Westpac Banking Corp (ASX: WBC) shares will be in focus next week.

That’s because the banking giant is scheduled to release its first quarter update on Monday 19 February.

Ahead of the release, let’s take a look to see what the market may be expecting from Australia’s oldest bank.

Westpac Q1 update preview

While brokers haven’t laid out the first quarter expectations for Westpac, we know what they are looking for in FY 2024.

As a result, we can use next week’s update to see if the bank is performing in-line, ahead, or below expectations.

But firstly, let’s have a quick reminder of Westpac’s outlook commentary for the first half. Goldman Sachs said:

On the outlook into 1H24, WBC noted: i) Persistent inflation, ii) Software amortisation headwind, iii) Risk & reg spend to remain elevated, iv) Focus on cost reset, and v) Sustained investment of A$2 bn pa over the next four years.

It also warned that its net interest margin (NIM) could be under pressure again. Goldman adds:

Management highlighted that competition on mortgages will translate to continued NIM deterioration.

What to look out for?

Three things for investors to look out for with the update are its costs, profits, and NIM.

In respect to costs, Goldman Sachs expects Westpac’s costs growth to accelerate in FY 2024. It is expecting expenses to be up 9% for the full year due largely to staff costs, operating expenses, and software amortisation.

This is expected to lead to its cash profit falling 8.3% to $6,618 million for the year.

Finally, as for its NIM, Goldman expects it to fall from 195 basis points to 187 basis points over the year.

So, if the bank is run-rating better than these metrics and showing signs of outperforming expectations over the course of the year, this could give Westpac’s shares a big boost.

Stay tuned for that update.

The post Westpac shares at a 52-week high ahead of results: What’s the market expecting? appeared first on The Motley Fool Australia.

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More reading

• 3 top ASX bank shares hit 52-week highs today: Is there still value to be found?
• ASX dividend shares: What’s better, growth or consistency?
• Which Big Four ASX bank share will pay the biggest dividend this year?
• Why has the Westpac share price just hit a 52-week high?
• Want to buy ASX 200 bank shares? You need to read this

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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 Scott Phillips.

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There are plenty of quality ASX 200 dividend shares to choose from on the Australian share market.

But which ones are buys?

Two that have been tipped as best ideas by analysts at Morgans in February are listed below. Here’s why they could be worth a look:

QBE Insurance Group Ltd (ASX: QBE)

Insurance giant QBE could be an ASX 200 dividend share to buy according to the broker.

Morgans believes that the company is well-placed for earnings and dividend growth thanks to strong rate increases and its cost cutting plans. It explains:

With strong rate increases still flowing through QBE’s insurance book, and further cost-out benefits to come, we expect QBE’s earnings profile to improve strongly over the next few years. The stock also has a robust balance sheet and remains relatively inexpensive overall trading on 8x FY24F PE.

Morgans expects this to support dividends per share of 98.5 cents in FY 2023 and 136 cents in FY 2024. Based on the current QBE share price of $16.64, this will mean yields of 5.9% and 8.2%, respectively.

Morgans has an add rating and $17.56 price target on its shares.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX 200 dividend share that Morgans rates as a buy is wine giant Treasury Wine.

The broker sees significant value in its shares at the current level. And that’s not including the additional value that could be unlocked if its $1.4 billion acquisition of DAOU Vineyards delivers the goods. The broker explains:

The acquisition is in line with TWE’s premiumisation and growth strategy and will strengthen a key gap in Treasury Americas (TA) portfolio. Importantly, DAOU has generated solid earnings growth and is a high margin business. It consequently allowed TWE to upgrade its margins targets. While not without risk given the size of this transaction, if TWE delivers on its investment case, there is material upside to our valuation. The key near term share price catalyst is if China removes the tariffs on Australian wine imports.

For now, Morgans expects Treasury Wine to pay fully franked dividends of 37 cents in FY 2024 and 45 cents in FY 2025. Based on its current share price of $11.14, this equates to yields of 3.3% and 4%, respectively.

The broker has an add rating and $14.15 price target on the company’s shares.

The post Morgans names the best ASX 200 dividend shares to buy in February appeared first on The Motley Fool Australia.

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More reading

• 3 ASX dividend shares with 5%+ yields to buy now
• 2 rejuvenated ASX 200 stocks with ‘strong brands’ ready to roar again
• Brokers name 3 ASX shares to buy now
• The market is undervaluing this ASX 200 stock: Goldman Sachs
• Morgans names more of the best ASX 200 shares to buy in February

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. 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 Treasury Wine Estates. 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 CSL Ltd (ASX: CSL) share price will be on watch this morning.

That’s because the biotechnology giant has just released its half-year results.

Let’s see how the company performed during the six months ended 31 December.

CSL share price on watch following half-year results

• Revenue up 11% in constant currency to US$8.05 billion
• Net profit after tax in constant currency up 20% to US$1.94 billion
• Net profit after tax before amortisation (NPATA) in constant currency up 13% to $2.06 billion
• Interim dividend up 12% to A$1.81 per share
• Guidance reaffirmed for FY 2024

What happened during the half?

During the first half, CSL reported an 11% lift in constant currency revenue to US$8.05 billion.

This was driven by a 14% increase in CSL Behring revenue to US$5,238 million, a 2% increase in CSL Seqirus revenue to $1,804 million, and a US$1,011 million contribution from the new CSL Vifor business.

In respect to the key CSL Behring business, its growth was underpinned primarily by strong demand for immunoglobulins (Ig). Management notes that Ig product sales increased 23% to US$2,757 million thanks to strong growth across all geographies driven by global plasma supply and patient demand.

The good news is that plasma collection conditions remain strong, and the cost of collections have continued to trend down following a post-COVID spike. In addition, a new roll out plan for the RIKA plasmapheresis devices has been developed. Deployment across its US fleet is expected over the next 18 months.

CSL continued to invest in its research and development (R&D) during the half. It advised that its R&D expenses were US$669 million, up 11% year on year.

Management commentary

CSL’s CEO and managing director, Dr. Paul McKenzie, was pleased with the “strong” half. He commented:

Our strong first-half result for the 2024 financial year was driven by CSL Behring’s exceptional performance across its portfolio, especially immunoglobulins. The plasma initiatives we have implemented are starting to drive gross margin recovery. CSL Seqirus achieved solid growth in a challenging season. Its portfolio of differentiated products outperformed the market. For CSL Vifor we are well prepared for the transitioning iron market.

Outlook

The good news for the CSL share price is that management has reaffirmed its guidance for FY 2024. Dr. McKenzie said:

For FY24, I am pleased to reaffirm our previous guidance. CSL’s underlying profit, NPATA is expected to be in the range of approximately $2.9 billion to $3.0 billion at constant currency, representing growth over FY23 of approximately 13-17%6

The company’s CEO also remains very positive on the future, highlighting that “CSL is in a strong position to deliver annualised double-digit earnings growth over the medium term.”

The CSL share price is down 5% over the last 12 months.

The post CSL share price on watch amid 20% profit jump appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• CSL shares could pop 9% on surprising results if history repeats itself
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• CSL share price sinks 6% on major trial failure
• 3 things ASX investors should watch this week

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. 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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When building a retirement portfolio, it’s can be a good idea to find defensive options with long-term growth potential.

But which ASX 200 shares could fit the bill right now?

Two retirement shares that analysts at Goldman Sachs are feeling very positive about are listed below. Here’s what they are saying about them:

Telstra Group Ltd (ASX: TLS)

Goldman thinks that telco giant could be an ASX 200 share to buy right now.

It highlights that its low risk earnings growth is what it finds most attractive about the company.

We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive.

In addition, the broker sees opportunities for the company to unlock value through asset divestments. It adds:

We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn.

In the meantime, Goldman is expecting the company to pay fully franked dividends per share of 18 cents in FY 2024 and 19 cents in FY 2025. Based on the current Telstra share price of $3.98, this will mean yields of 4.5% and 4.75%, respectively.

Goldman has a buy rating and $4.70 price target on its shares.

Woolworths Limited (ASX: WOW)

The broker also thinks that this supermarket giant and Big W owner could be an ASX 200 share to buy for a retirement portfolio.

As well as its defensive qualities, Goldman rates the company highly due to its leadership position and the stickiness and loyalty of its customers. It explains:

We are Buy rated on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as pass through any cost inflation to protect its margins, beyond market expectations.

And while its growing dividend yields are not as generous as Telstra’s, Goldman still expects them to be in the region of 3% over the medium term.

The broker has a conviction buy rating and $42.30 price target on Woolworths’ shares.

The post Will these ASX 200 shares help you retire rich? appeared first on The Motley Fool Australia.

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More reading

• Transform $50 into monthly income: The best ASX dividend stocks under $50
• 3 ASX 200 dividend shares to buy with great yields
• 3 things ASX investors should watch this week
• 10 time-wasters that could destroy your ASX investments
• 5 ASX shares to buy and hold forever in your investment portfolio

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. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Telstra Group. 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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If you’re on the lookout for some new additions to your income portfolio, then read on.

Listed below are three ASX dividend shares that brokers have recently been named as buys.

Here’s what sort of dividend yields you can expect from them:

Accent Group Ltd (ASX: AX1)

Bell Potter think that Accent Group would be a top option for income investors. It is the owner of store brands including The Athlete’s Foot, Stylerunner, and HYPEDC.

The broker is forecasting fully franked dividends per share of 12 cents in FY 2024 and then 14.1 cents in FY 2025. Based on the current Accents share price of $2.22, this represents dividend yields of 5.4% and 6.4%, respectively.

Its analysts currently have a buy rating and $2.50 price target on its shares.

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Another ASX dividend share that could offer an attractive yield is Dalrymple Bay Infrastructure. It is the long-term operator of the Dalrymple Bay Coal Terminal (DBCT).

Citi is positive on the company and believes it is well-positioned to pay dividends per share of 20.6 cents in FY 2023 and 22 cents in FY 2024. Based on the latest Dalrymple Bay Infrastructure share price of $2.78, this will mean yields of 7.4% and 7.9%, respectively.

Citi has a buy rating and $3.00 price target on its shares.

QBE Insurance Group Ltd (ASX: QBE)

Over at Goldman Sachs, its analysts believe that insurance giant QBE could be an ASX dividend share to buy. This is due largely to favourable tailwinds and strong premium increases in the insurance market.

Goldman expects this to allow the company to pay a 59 US cents (90.4 Australian cents) per share dividend in FY 2024 and a 61 US cents (93.5 Australian cents) per share dividend in FY 2025. Based on the current QBE share price of $16.64, this equates to yields of 5.4% and 5.6%, respectively.

Goldman has a buy rating and $18.52 price target on the company’s shares.

The post 3 ASX dividend shares with 5%+ yields to buy now appeared first on The Motley Fool Australia.

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More reading

• Forget term deposits and buy these ASX dividend shares
• Morgans names more of the best ASX 200 shares to buy in February
• Buy ANZ and these ASX dividend stocks now
• Citi says Coles and these ASX dividend stocks are buys
• 3 ASX dividend shares for income investors to buy now

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Accent Group. 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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Investors in ASX lithium shares have had a headache for a year now as global prices for the battery ingredient have nosedived.

According to TradingEconomics, the lithium carbonate price was nearing 600000CNY per tonne 15 months ago but can now barely reach six figures.

And this has meant a classic cyclical downturn as is common in the mining industry.

ASX lithium stocks have plunged as some lithium mines have been forced to stop production because they had become uneconomical to keep running.

Like other minerals, most experts predict that the lithium price will eventually recover, especially with its importance in the transition to a lower carbon future.

But this environment has meant that only some lithium producers have had the financial resources to endure this tough part of the cycle.

So if you were to buy some lithium stocks right now while they’re cheap, which ones are the best to go for?

A couple of fund managers had some ideas this week:

‘Ability to remain profitable throughout the cycle’

Bell Potter advisor Christopher Watt has been impressed with Pilbara Minerals Ltd (ASX: PLS)’s resilience.

“The December 2023 quarterly activities update demonstrated Pilbara’s ability to remain profitable throughout the cycle,”  Watt told The Bull.

He reckons Pilbara Minerals could absorb even more punishment.

“The lithium miner maintains a strong balance sheet to withstand any further declines in lithium prices.

“We expect the lithium market to recover in the long term and believe recent share price weakness in Pilbara presents a buying opportunity.”

The Pilbara share price has lost about 26% over the past year, while paying out a fully franked 6.9% dividend yield.

Unfortunately, Pilbara shares are currently the most shorted stock on the ASX. However, this means that any revival could trigger a massive surge in price as short sellers seek to quickly cover their positions.

The lithium shares with a catalyst coming in June

Meanwhile, Baker Young analyst Toby Grimm’s buy right now is Mineral Resources Ltd (ASX: MIN).

He admits the business is feeling the effects of low lithium prices, but one particular mine is providing much hope for the future.

“While still under pressure from falling lithium prices, we’re encouraged by the company’s recent update regarding the development of the Onslow iron ore project,” he said.

“The project is on track to deliver [its] first ore-on-ship in June 2024.”

And once this happens, it will deliver much needed funds to help it endure the tough conditions.

“It will provide excellent cash flow ahead of what we expect will be an eventual lithium market recovery.”

MinRes shares have plunged 37% over the past 12 months. They are paying a 3.3% dividend yield, fully franked.

The post ‘Buying opportunity’: 2 ASX lithium shares with cash to ride out the current depression appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• Shares vs. property: Beginner investors choosing Aussie shares, ASX ETFs and rentvesting
• Morgans names more of the best ASX 200 shares to buy in February
• Here are the top 10 ASX 200 shares today
• Why Cettire, Dexus Industria, Pilbara Minerals, and Zip shares are jumping today

Motley Fool contributor Tony Yoo 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 Scott Phillips.

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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decline. The benchmark index fell 0.4% to 7,614.9 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market is expected to rebound on Tuesday despite a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 28 points or 0.4% higher. In late trade in the United States, the Dow Jones is up 0.3%, the S&P 500 is flat, and the NASDAQ is down 0.3%.

CSL results

CSL Ltd (ASX: CSL) shares will be on watch today when the biotechnology company releases its half year results. A strong result is expected by the market. Morgans commented: “FY24 guidance suggests solid 1H. FY24 constant currency guidance calls for NPATA US$2.9-3bn (13-17%) on 9-11% revenue growth, with operating efficiency improving, B/S leverage declining (2x ND/EBITDA) and ROIC “steadily improving” over time.”

Oil prices soften

ASX 200 energy shares including Woodside Energy Group Ltd (ASX: WDS) and Karoon Energy Ltd (ASX: KAR) could have a subdued session after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 0.25% to US$76.64 a barrel and the Brent crude oil price is down 0.5% to US$81.77 a barrel. Traders appear to have been taking profit after recent gains.

Beach named as a buy

Bell Potter thinks investors should be buying Beach Energy Ltd (ASX: BPT) shares following the release of its half year results. This morning, the broker has retained its buy rating with a $1.90 price target. It said: “BPT has a strong, fully funded production growth outlook, diversified across five energy basins and across four separate gas markets. […] With a positive view on Australian east coast gas and LNG markets, and strong earnings growth outlook, we maintain a Buy recommendation.”

Gold price eases

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could fall today after the gold price eased overnight. According to CNBC, the spot gold price is down 0.2% to US$2,035.1 an ounce. Traders were selling gold ahead of the release of inflation data in the United States.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• CSL shares could pop 9% on surprising results if history repeats itself
• Why the CBA dividend fountain will be in focus this week
• Why CSL, Fletcher Building, Skycity, and Wildcat shares are falling today
• Why Audinate, Beach Energy, Calix, and JB Hi-Fi shares are charging higher

Motley Fool contributor James Mickleboro has positions in CSL and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Goldman Sachs Group. The Motley Fool Australia has recommended CSL. 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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Sometimes even good companies fall out of favour with investors.

It might be that the economic conditions aren’t quite right for them in the short term, or they might be dealing with some one-off problems.

But when it becomes clear that the problems are not chronic and the stock starts poking up,  it could be an excellent buying opportunity for investors.

Here are two such S&P/ASX 200 Index (ASX: XJO) stocks that the experts are rating as buy this week:

The next month could ‘ignite demand’

Treasury Wine Estates Ltd (ASX: TWE) lost a major export market four years ago when China instituted punitive tariffs on imported wine in retaliation for Canberra’s call for an enquiry into the origins of COVID-19.

Now that diplomatic relations have thawed somewhat, there could be a revival.

“A review of punitive tariffs imposed on Australian wine in China is expected to be completed at the end of March,” Shaw and Partners senior investment advisor Jed Richards told The Bull.

“Lifting tariffs, or significantly reducing them should ignite demand for Treasury Wine’s Penfolds brand.”

The market has started to appreciate that the business is solid outside of the China issue, pushing the Treasury stock price up more than 9% since early January.

Richards said that Treasury Wine has “a strong track record”.

“The company offers strong brands and a quality management team.”

Many of his peers agree. A whopping 12 out of 14 analysts surveyed on CMC Markets currently rate the stock as a buy.

The ASX 200 stock looking forward to rate cuts

The Macquarie Group Ltd (ASX: MQG) shares have merely moved sideways since a brief period in late 2021 when the investment bank overtook Westpac Banking Corp (ASX: WBC)’s market capitalisation to technically enter the Big Four.

Baker Young analyst Toby Grimm is convinced transitory headwinds are now behind Macquarie.

“Downgrades in mid to late 2023 were due to difficult corporate transaction conditions,” he said.

“However, we believe financial conditions are improving.”

A likely pivot from central banks around the world will set up favourable conditions for Macquarie in the coming years.

“The global outlook includes interest rates cuts, which, in our view, positions this diversified financial services company to benefit from improving transaction volumes and earnings in fiscal years 2024 and 2025.”

The post 2 rejuvenated ASX 200 stocks with ‘strong brands’ ready to roar again appeared first on The Motley Fool Australia.

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More reading

• I think this ONE factor gives ASX shares a huge chance to make big returns
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• CBA could be eyeing record profits if first-half results echo the past
• Brokers name 3 ASX shares to buy now
• The market is undervaluing this ASX 200 stock: Goldman Sachs

Motley Fool contributor Tony Yoo has positions in Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Treasury Wine Estates. 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 are plenty of exchange-traded funds (ETFs) for investors to choose from, but which ones could be buys in February?

Let’s take a look at four top options that could be worth considering this month:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The BetaShares Asia Technology Tigers ETF could be a top option if you’re feeling bullish on the long-term outlook of the Asian economy. That’s because it provides investors with easy access to the biggest and best companies that the region has to offer. This includes Tencent, which owns the WeChat super app and has approximately 1.3 billion users.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF that is highly rated is the BetaShares Global Cybersecurity ETF. It offers investors access to a global cybersecurity sector that is predicted to grow materially over the next decade due to the rising threat of cybercrime. Among the companies included in the fund are Accenture, Cisco, and Palo Alto Networks.

ETFS Battery Tech & Lithium ETF (ASX: ACDC)

The lithium industry has been sold off over the last 12 months. But if you think that this is a temporary blip, then it could be worth checking out the ETFS Battery Tech & Lithium ETF. It invests in the leading companies in the battery technology and lithium industries. This includes miners, battery producers, and electric vehicle manufacturers.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Finally, the Vanguard MSCI Index International Shares ETF could be a good option for investors if they’re looking to diversify a portfolio. That’s because it provides easy access to approximately 1,500 of the world’s largest listed companies (excluding Australia). Among its holdings are companies from countries including the US, Japan, UK, France, Canada, and the Netherlands.

The post 4 ASX ETFs to supercharge your portfolio in February appeared first on The Motley Fool Australia.

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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. has positions in and has recommended Accenture Plc, BetaShares Global Cybersecurity ETF, Cisco Systems, Global X Battery Tech & Lithium ETF, Palo Alto Networks, and Tencent. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $290 calls on Accenture Plc and short January 2025 $310 calls on Accenture Plc. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended Betashares Capital – Asia Technology Tigers Etf, Global X Battery Tech & Lithium ETF, and Vanguard Msci Index International Shares ETF. 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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If you’re willing to put up with a little bit more risk than the average, there are some ASX stocks out there with the capability to rocket in a short amount of time.

They potentially have some catalysts coming that, if they occur, could put an absolute rocket under the share price.

Of course, nothing is guaranteed, but enter these types of investments with an open mind and a risk-on mindset, and you may find yourself with handsome riches at the end of the journey.

Let’s take a look at two ASX stock picks ripe with such potential:

Try a 1,400% gain for explosive potential

Telix Pharmaceuticals Ltd (ASX: TLX) shares, already up 15.8% so far this year, are a classic example of a growth stock with explosive capabilities.

It is a maker of anti-cancer diagnostic and therapeutic products.

This means that every success in the development process — clinical trials, regulatory approval, or commercial release — will be met with excitement in the stock market.

Its journey over the past few years is testament to that. The Telix share price has gained an unbelievable 1,468% in the past five years and 87% over the past 12 months.

The company is in a great position now because it already has a product, Illuccix, on sale commercially. So this brings in revenue to fund its future pipeline.

Many experts agree that Telix stocks have incredible potential. According to CMC Invest, all eight analysts studying the stock rate it as a buy.

The stock pick that could rocket with the economy

Chrysos Corporation Ltd (ASX: C79) has a very specific remit.

The company provides assay services for the mining industry, which means it tests samples to determine the quality and quantity of any minerals present.

Its PhotonAssay technology is unique in the industry for its speed, accuracy, and environmental credentials. And it is rapidly gaining customers.

That’s shown in how the shares soared 77%  over the past year, during a period in which the mining industry has had mixed fortunes.

So imagine how well the business and stock could do when the mining industry is in full swing in the coming years as the global economy recovers back to health.

The shares have dipped 16% this year, providing a buying opportunity.

Shaw and Partners senior investment advisor Jed Richards attributed that to Chrysos falling short of revenue expectations in a January update.

But that’s a minor setback, as far as he’s concerned.

“Delays in the number of PhotonAssay unit installations reflect timing issues as opposed to a reduction in demand,” Richards told The Bull.

“We view the share price reaction as overdone, presenting attractive entry levels for investors.”

The post 2 ASX stock picks with explosive potential appeared first on The Motley Fool Australia.

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More reading

• Brokers say these ASX mining shares are strong buys in February
• 2 top ASX growth shares to buy right now and hold for the long term
• Why did this ASX All Ords stock sink 6% after a high growth quarter?
• Why Adriatic Metals, Chrysos, Coronado, and Nanosonics shares sinking today
• How I’d invest $300 a month in ASX shares to target $22,000 annual passive income!

Motley Fool contributor Tony Yoo has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Chrysos and Telix Pharmaceuticals. The Motley Fool Australia has positions in and has recommended Chrysos. The Motley Fool Australia has recommended Telix Pharmaceuticals. 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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