Category: Stock Market

Aussies understandably love property – it is a large and growing asset class. As such, ASX property shares could be a strong pick for retirement.

Residential property is an expensive investment, with significant transaction costs to buy ( such as stamp duty) and sell (including agent fees). Houses usually don’t come with an appealing net income yield either.

Commercial property could provide the right mix of passive income and growth in value. However, not every property sector is generating good growth, so I’d be selective about office or physical retail opportunities right now.

Industrial property is one of the most exciting areas, which is why I like the two investment ideas below.

Centuria Industrial REIT (ASX: CIP)

Centuria Industrial is a real estate investment trust (REIT), which is a business that owns a portfolio of properties. It is the largest domestic pure-play industrial option, with high-quality assets situated in important urban locations throughout Australia.

The ASX property share is benefiting from its exposure to land-constrained ‘last mile’ locations, which, according to the business, is delivering “robust” rental growth. Tailwinds for industrial property include the continued adoption of e-commerce by Australians and the onshoring of supply chains by companies.

In the first nine months of FY24, the business achieved re-leasing spreads of approximately 50%. In other words, its properties are seeing huge increases in rental income when new leases are signed.

The REIT expects to pay a distribution per unit of 16 cents for FY24, which translates into a distribution yield of 5%.

Brickworks Limited (ASX: BKW)

Brickworks offers multiple ways to get exposure to Australian property, including an investments division that owns approximately a quarter of Washington H. Soul Pattinson and Co. Ltd (ASX: SOL). But I’m going to focus on the property aspects today.

Brickworks produces various building materials, including bricks, paving, masonry, stone, roofing, specialised building systems, cement, and timber battens.

While it doesn’t own residential property, the building materials division allows retired investors to gain exposure to the growing demand for Australian property due to population growth.

Furthermore, Brickworks owns various commercial property assets, including a 50% stake in an industrial property trust. This trust is building huge warehouses on excess land that the ASX property share previously owned.

The completed warehouses are increasing the value of the real estate and unlocking significant rental cash flow for Brickworks.

It currently has a grossed-up dividend yield of 3.5% and hasn’t cut its dividend for almost 50 years. Although future dividends aren’t guaranteed, this could be appealing for investors in retirement.

The post 2 cheap ASX property shares I’d buy in retirement appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy in June and hold for retirement
• Buy these ASX dividend stocks with 5% to 6% yields
• Down 17% in 3 months, is it time to buy this ASX 200 dividend superstar?
• Leading brokers name 3 ASX shares to buy today
• Why this broker just upgraded Brickworks shares to a buy rating

Motley Fool contributor Tristan Harrison has positions in Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) offers a range of attractive passive income stocks that could help boost your retirement outlook.

In building a retirement income portfolio, I’d aim to invest in around 10 ASX dividend shares, with a preference for companies offering franking credits. Those credits should enable me to hold onto more of that passive income when it comes time to pay the ATO its annual dues.

I’d also be sure to buy a diversified mix of ASX 200 stocks operating in various sectors and, ideally, different geographic locations. That will help lower the overall risk to my portfolio.

Below, I look at two top companies I’d buy now in hopes of a wealthier retirement.

Both ASX 200 stocks have long track records of paying out two dividends a year. While their dividend payouts have declined recently, so too have their share prices. That leaves them trading at attractive trailing yields.

And I believe that following the 2024 sell-down, the shares in both companies are now trading at levels that will continue to see them offer market-beating passive income over the longer term.

With that said…

Two ASX 200 passive income stocks to sweeten my retirement

The first company I’d tap to help boost my retirement is ASX 200 funds manager Magellan Financial Group Ltd (ASX: MFG).

The Magellan share price is down by around 10% so far in 2024, having come under selling pressure amid fund outflows in April and May.

While it may be too early to call a bottom, the Magellan share price has orchestrated a solid turnaround in June. Shares closed at $8.46 apiece yesterday, putting the financial stock up 3.55% for the month so far.

I think that should represent an attractive longer-term entry point for passive income investors.

On that front, Magellan paid a final dividend of 69.8 cents a share, franked at 85%, on 7 September. The interim dividend of 29.4 cents a share, franked at 50%, was delivered on 6 March.

That equates to a full-year payout of 99.2 cents a share.

At yesterday’s closing price, Magellan shares trade on a partly franked trailing yield of 11.7%.

This brings us to the second ASX 200 passive income stock I’d buy now to boost my retirement prospects, mining giant Fortescue Ltd (ASX: FMG).

Excepting the bumper year of 2021, Fortescue’s past two dividends remain near historic highs.

And with the Fortescue share price down 19.7% in 2024, closing yesterday at $23.60 a share, I think the big Aussie miner is also now trading at an attractive long-term level.

As for that retirement-lifting passive income, Fortescue paid a fully franked final dividend of $1.00 a share on 28 September. The ASX 200 miner paid its interim dividend of $1.08 a share on 27 March.

That works out to a full-year payout of $2.08 a share.

At yesterday’s closing price, this sees Fortescue shares trading on a fully franked trailing yield of 8.8%.

If I were to invest an equal amount in each company, I’d be eyeing a trailing yield of 10.3%.

Or enough to produce $2,060 in annual passive income from a $20,000 investment portfolio.

The post 2 top ASX 200 passive income stocks I’d buy now to boost my retirement appeared first on The Motley Fool Australia.

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• Here’s the iron ore price forecast through to 2027
• If I buy 1,000 Fortescue shares, how much passive income will I receive?
• How to earn $1,900 in passive income with just $10,000 in savings
• Fortescue shares rally amid claims of green tech theft
• Should you buy the 3 highest-yielding dividend shares in the ASX 200?

Motley Fool contributor Bernd Struben 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.

Income investors are a lucky bunch! The Australian share market is home to a large number of stocks that pay dividends every six months.

But which ASX income stocks could be in the buy zone for investors? Let’s take a look at a few that are forecast to have big dividend yields.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Bell Potter thinks that this healthcare and wellness focused property company could be an ASX income stock to buy. It has previously highlighted its “significant scope for growth with an estimated $218 billion addressable market where an ageing and growing population should underpin long-term sector demand.”

As for income, the broker is forecasting dividends per share of 8 cents in FY 2024 and 8.3 cents in FY 2025. Based on its current share price of $1.13, this equates to yields of 7% and 7.3%, respectively.

Bell Potter has a buy rating and $1.50 price target on its shares.

Rural Funds Group (ASX: RFF)

Bell Potter also thinks that Rural Funds could be an ASX income stock to buy. It is an agricultural property company that leases almond orchards, macadamia orchards, poultry property and infrastructure, vineyards, cattle properties, cropping properties, cattle and water rights.

The broker believes these assets will generate enough cash flow to pay dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.02, this will mean yields of 5.8% in both years for investors.

Bell Potter has a buy rating and $2.40 price target on its shares.

Stockland Corporation Ltd (ASX: SGP)

A third ASX income stock that could be a buy is Stockland. It is Australia’s largest community creator.

Citi is positive on the company and expects some attractive dividend yields from its shares. It is forecasting dividends per share of 26.2 cents in FY 2024 and 26.6 cents in FY 2025. Based on the current Stockland share price of $4.47, this will mean yields of 5.9% and 6% yields, respectively.

The broker has a buy rating and $5.10 price target on its shares.

Suncorp Group Ltd (ASX: SUN)

Finally, Goldman Sachs thinks that insurance giant Suncorp could be an ASX income stock to buy right now. This is largely due to “the tailwinds that exist in the general insurance market.”

The broker expects this to support the payment of fully franked dividends per share of 78 cents in FY 2024 and 83 cents in FY 2025. Based on the Suncorp share price of $16.46, this will mean yields of 4.7% and 5%, respectively.

Goldman has a buy rating and $17.54 price target on its shares.

The post 4 ASX income stocks with big dividend yields to buy now appeared first on The Motley Fool Australia.

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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 positions in and has recommended Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investing is all about delivering positive results over the longer term, and ASX growth shares can produce strong returns due to their rise in underlying value and earnings compounding.

In five years from now, investors want their portfolios to be worth substantially more than they are today. Here are two ASX growth shares that I believe can produce excellent returns in the coming years.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading online retailer of homewares, furniture and home improvement products.

The Temple & Webster share price has fallen by around 25% since 27 March 2024, as shown in the chart below. However, its ongoing business progress indicates that this is a much more compelling time to buy than a few months ago.

At a time when many Aussie households are struggling amid a high cost of living and elevated interest rates, the business has been growing its market share.

In a recent trading update, Temple & Webster revealed total sales were up 30% from 1 January 2024 to 5 May 2024. The company said the overall furniture and homewares market was down 4% in the half-year to date.

Products exclusive to Temple & Webster are now generating more than 40% of revenue which helps entrench its market position. Its trade and commercial and home improvement segments have both seen growth of over 30% in the half to date.

The ASX growth share has also been tapping into AI to improve efficiencies and margins. AI has helped boost the conversion rate by more than 10% and is now handling around 40% of all customer interactions.

As Temple & Webster grows, I think it can achieve greater profit margins, particularly as its fixed costs as a percentage of revenue reduce. I’m excited by the company’s ongoing expansion into other areas, such as home improvement, because that’s a big market category (including paint, plumbing fixtures, flooring, window furnishings and so on).

I’m a shareholder today in this ASX growth share because I believe in the company’s long-term future.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This exchange-traded fund (ETF) focuses on some of the leading businesses in the United States, and I think it has the potential to deliver good returns.

While many companies are listed in the US, their underlying earnings usually come from around the world. This gives the VanEck Morningstar Wide Moat ETF more geographic diversification than it appears.

For this portfolio, Morningstar analysts only choose stocks whose share prices they believe are trading at an attractive level compared to their fair value. In other words, they rate a business as being materially undervalued.

In addition, the MOAT ETF only includes businesses that Morningstar believes have economic moats that are almost certainly going to endure for the next decade and, more likely than not, persist for the next two decades.

I’m calling it an ASX growth share because of its ability to deliver strong returns. From the ETF’s start date to 31 May 2024, it has delivered an average annual return of 15.3%, though past performance is not indicative of future returns.

The post Looking for ASX growth shares? I rate these 2 as buys appeared first on The Motley Fool Australia.

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• 3 ASX 300 shares just rerated by leading brokers
• How to turn $10,000 into $100,000 with ASX shares
• 3 of the best ASX ETFs to buy in June
• How I’d aim to turn $20,000 invested in ASX shares into passive income of $1,200 a month!

Motley Fool contributor Tristan Harrison has positions in Temple & Webster Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. The Motley Fool Australia has recommended Temple & Webster Group and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With a population of just around 26 million, Australia boasts a surprising number of companies making big waves on the global stage.

In this article, I’ll explore the success stories of two Australian companies that have surpassed expectations in their respective niches.

These companies not only command significant market share but also showcase remarkable innovation and resilience in competitive environments.

From ground-breaking technologies to rock-solid business models, they’ve proven themselves as top performers, presenting investors with enticing opportunities for long-term growth.

Join me as I delve into the journeys of two ASX-listed companies that have firmly cemented their positions as industry leaders.

Audinate Group Ltd (ASX: AD8)

Audinate is an Australian technology company, specialising in digital audio networking solutions, also known as audiovisual (AV) technology. Founded in 2006, Audinate has become a global leader in the industry with its innovative ‘Dante’ networking technology.

Dante technology revolutionises the way audio is transmitted and managed in various applications, including live sound, broadcast, education, and commercial uses. Dante replaces old-school analogue cable AV connections with a digital computer network.

The company operates in 13 countries, including Australia, the US, the UK, and Japan.

In the audio devices market, there are currently over 4,000 Dante-enabled products from more than 600 manufacturers, being used in 5 million devices worldwide. On the video side, more than 50 manufacturers have licensed Dante AV, with over 75 products available on the market.

The company reported a strong 1H FY24 report, with revenues soaring approximately 48% to US$30.4 million. Its net profit after tax improved to US$4.7 million in 1H FY24 after recording a net loss of US$0.4 million in 1H FY23.

The Audinate share price continued to strengthen for about a month after the half-year results. However, from there, it has dropped by around 29% to $16.49 as of today.

A number of brokers hold bullish views on Audinate shares. Morgan Stanley maintains its overweight rating and $22.00 price target, while UBS has a buy rating and a $22.80 price target for Audinate shares.

Pro Medicus Ltd (ASX: PME)

Regarding international triumphs, another standout is Pro Medicus, an Australian med-tech company, making waves worldwide, particularly in the US market.

Established in 1983, Pro Medicus has grown to become a key player in the global healthcare sector. It provides cutting-edge software platforms that streamline medical imaging processes and improve patient care.

Pro Medicus’ flagship product, Visage Imaging, helps medical professionals improve the efficiency and accuracy of medical imaging interpretation. By leveraging cloud-based technology and artificial intelligence (AI), Pro Medicus continues to set new standards in medical imaging.

The company is doing very well, adding new contracts every month, but the story might get even better with its AI angle according to Goldman Sachs. As my colleague James covered, the analyst highlighted in a recent report:

PME is generating revenue from its Visage breast density AI algorithm (developed via a partnership with Yale) today, and we see the potential value for AI to be significant with adoption driven by improved accuracy and clinical outcomes. We forecast AI to comprise 9% of PME’s revenue by FY30E (from <1% in FY25E), with upside if PME achieves faster AI attach penetration, higher price per scan, and a greater proportion of algorithms developed in-house where no royalties are paid to a partner.

High quality often comes with an expensive price tag. At the time of writing, Pro Medicus shares are trading close to all-time highs at $128.06.

Foolish takeaway

Here I’ve reviewed two ASX companies excelling in their respective niches. With innovative technologies, they could offer enticing opportunities for long-term growth, in my opinion.

The post 2 ASX companies dominating their niches appeared first on The Motley Fool Australia.

More reading

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• Here are the top 10 ASX 200 shares today

Motley Fool contributor Kate Lee 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 Audinate Group and Pro Medicus. The Motley Fool Australia has positions in and has recommended Audinate Group. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you on the lookout for ASX shares with the potential to rise strongly over the next 12 months and generate big returns for your portfolio? If you are, then read on.

That’s because the two ASX shares in this article have been named as buys by analysts and tipped to rise very strongly from current levels.

Let’s see what they are saying about these shares and just how big the returns could be if you buy at current levels.

Karoon Energy Ltd (ASX: KAR)

Morgans thinks that this ASX energy share could be undervalued by the market.

The broker currently has an add rating and $2.80 price target on its shares. This suggests that its shares could rise by a massive 66% over the next 12 months.

Its analysts think investors should be investing due to Karoon Energy’s growth plans and the potential for rising oil prices. It said:

Unique as a reasonable scale pure conventional oil producer, benefitting directly from rising oil prices. Karoon has significant net cash and is fully funded through a doubling of production over the next 12 months. There are also potential catalysts just around the corner with Karoon flagging at its recent result that it plans to shortly update the market with more detail on its growth plans, Bauna’s outlook, and its ESG approach.

Universal Store Holdings Ltd (ASX: UNI)

The team at Bell Potter sees significant value in this ASX youth fashion retailer’s shares. The broker currently a buy rating and $6.15 price target on them. This implies potential upside of almost 23% for investors over the next 12 months. In addition, it is forecasting a fully franked 6%+ dividend yield from its shares in FY 2025.

Bell Potter likes the company due to its positive growth outlook, which is being underpinned by its store rollout and private label sales. It commented:

Management execution remains a key strength for UNI and we see good growth trajectory for the name given the building of core brands while growing its store rollout. In our view, the higher margin sales from the majority of private label sales should become a major driver of margin improvement and earnings growth, in an expanded store footprint. While we remain cautious on the overall consumer sentiment, given the return to positive comps while cycling elevated pcp through Jan-Feb, we think UNI is well placed as comps become supportive through the 2H.

The post These ASX shares could rise 25% to 65% appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Universal Store. 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.

In a volatile market, arguably cash is king.

Companies with strong cash reserves not only have the flexibility to weather economic downturns but also the ability to seize growth opportunities when they arise.

For retail investors, identifying cash-rich companies can potentially provide a safer and more rewarding investment path.

In this article, I will spotlight two ASX shares with robust cash positions, which I think are attractive investments for those looking to add both stability and growth potential to their portfolios.

There are many ways to measure the strength of a company’s cash position. However, here, I will mainly use the companies’ reported net cash balance as a percentage of their market capitalisations as my guide.

Before jumping in, it’s worth noting that this is my initial screening only and you should always do your own research or consult a financial advisor before making investment decisions.

With that said, here are two ASX shares I like based on their cash holdings relative to their market caps.

A2 Milk Company (ASX: A2M)

First up is A2 Milk Company. It is encouraging to see A2 Milk Company significantly recovering from its downturn in terms of its share price. The New Zealand infant formula business has managed to stage a substantial comeback from the hardships caused by the decline in its daigou market.

Daigou is the term used to describe individuals engaging in cross-border exporting. Many Chinese students in Australia sell premium Australian products back to China, including A2 Milk’s formula, but this market was severely impacted by the reduction of international students in Australia during the pandemic.

As the share price chart below illustrates, the A2 Milk share price declined from a high of approximately $20 in July 2020 to a low of around $4 in May 2022. Then, from there, the share price has recovered by around 28% to over $7 today. While this is a remarkable recovery from the bottom price, the share price still remains at below half its peak price.

According to its FY24 half-year result, the company has gained a “significant” market share in the Chinese label infant formula over the prior few years, which supported its revenue and earnings before interest, tax, depreciation and amortisation (EBITDA) growth.

A2 Milk has cash and short-term investments of NZ$792 million and a small debt position of NZ$57 million, including lease liabilities as of 31 December 2023. Its net cash balance of NZ$735 million accounts for approximately 13% of its current market capitalisation.

GR Engineering Services Ltd (ASX: GNG)

GR Engineering is a small Australian engineering and consulting firm that provides services to the mining and mineral processing industries.

The company specialises in designing, building, and managing mining projects, ensuring they run smoothly and efficiently. Known for its expertise and reliability, GR Engineering helps bring mining projects to life both in Australia and around the world.

GR Engineering shares have hovered around $1.80 to $2.40 per share since 2022 after surging from less than $1 in June 2019.

In February 2024, the mining services company had a total cash and short-term investments balance of $58 million. Thanks to its asset-light business model, GR Engineering doesn’t hold much debt. Adjusting for that, the company had a net cash position of $48 million, equivalent to 13% of its current market capitalisation.

Recently, however, management cut its revenue guidance. It now expects FY2024 revenue in the range of $415 million to $430 million, down from its previous guidance of between $500 million and $530 million. While this is disappointing, the good news is that the company still expects its EBITDA to be between $50 million and $51 million, which indicates year-over-year growth in profit.

Foolish takeaway

A company’s cash holding can be one factor to consider when looking for safety and potential returns. Here, I’ve reviewed two ASX-listed companies with strong cash reserves, which could help them to deliver stable growth through the thick and thin of business cycles.

The post 2 cash-rich ASX companies to buy now appeared first on The Motley Fool Australia.

More reading

• Here is the earnings forecast out to 2026 for A2 Milk shares
• My ASX share portfolio has two giant weeds in it. Should I pull them out?
• How ASX shares vs. property performed in May
• Why BHP, GR Engineering, Novonix, and Pointerra shares are dropping today
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Kate Lee 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 A2 Milk and Gr Engineering Services. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors with a high tolerance for risk might want to take a look at the ASX All Ords stock in this article.

That’s because one leading broker is tipping it to deliver mouth-watering returns over the next 12 months.

Which ASX All Ords stock?

The share in question is Electro Optic Systems Holdings Ltd (ASX: EOS).

Electro Optic Systems, or EOS, operates two business divisions: Defence Systems and Space Systems.

The Defence Systems business specialises in technology for weapon systems optimisation and integration, as well as ISR (intelligence, surveillance and reconnaissance) and C4 systems for land warfare.

Whereas the Space Systems business operates under two entities: Space Technologies and EM Solutions. Space Technologies specialises in applying EOS-developed optical sensors and effectors to detect, track and characterise objects in space. EM Solutions delivers world-leading RF and optical space communications technology.

What is the broker saying?

According to a note out of Bell Potter, its analysts believe that the ASX All Ords stock is being undervalued by the market. It said:

In an effort to highlight the disconnect between EOS’s intrinsic valuation and the current market valuation, we have undertaken a simple valuation of EM Solutions separate from the core operations of the EOS business. We estimate EMS will generate $70.3m in revenue for CY24 (+22% YoY) and assuming an EBITDA margin of ~29%, this implies an underlying EBITDA of $20.4m. Our valuation assumptions are intentionally conservative, utilising a 13.0x EV/EBITDA multiple and applying 100% of the company’s CY24e net debt, our relative valuation generates an implied equity value of $292.0m or $1.70 per share. Based on the current EOS share price, if we ascribe zero value to the Defence Systems and Space Systems (exc. EMS) divisions, the market is currently valuing EMS at approximately 9.3x CY24e EBITDA.

Bell Potter thinks this is wrong and that the Defence Systems business has a lot of value given its leadership position and favourable operating conditions. It said:

The lack of value attributed to EOS Defence Systems is in direct contradiction to its market position and current operating conditions. EOS is a market leader in the RWS market with a growing product portfolio and current beneficiary of significant industry tailwinds. The company recently completed a $35m placement to invest in long lead time RWS cannons based on strong visibility over market demand. This division is at an inflection point, with a relatively fixed operating base (BPe ~$62m) and 40% gross margins, the $155m of revenue in CY23 was the EBITDA breakeven point and thus our forecast revenue growth in future periods will drive substantial increases in bottom-line earnings.

Big return potential

The note reveals that Bell Potter has a buy rating and $2.10 price target on the ASX All Ords share.

Based on its current share price of $1.27, this implies 65% upside for investors over the next 12 months. It concludes:

In our view, the current market valuation of EOS undervalues the EM Solutions business and essentially provides a free call option on the Defence and Space (exc. EMS) divisions, which we believe are well positioned to produce substantial earnings growth in future periods.

The post Guess which undervalued ASX All Ords stock could rocket 65% 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 Electro Optic Systems. 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.

ASX gold stocks are cooling off after a phenomenal three-month run during which time the commodity price soared from US$2,034 per ounce on 28 February to an all-time high of US$2,449.89 on 21 May.

Since that peak, the gold price has slipped to US$2,302 per ounce at the time of writing. ASX gold stocks have also weakened, with the S&P/ASX All Ordinaries Gold Index (ASX: XGD) falling 7% since 21 May.

Among the biggest ASX gold stocks, Northern Star Resources Ltd (ASX: NST) shares are now 7.4% lower since the gold price peaked and Newmont Corporation CDI (ASX: NEM) shares are 6.5% lower.

Shaw and Partners portfolio manager James Gerrish says a fair bit of profit-taking, along with the falling gold price, has dragged ASX gold stocks lower over the past few weeks.

However, Gerrish and his Market Matters funds management team are still bullish on gold over the long term and decided to hold their overweight position amid the sell-off.

They’re now looking for opportunities to buy the dip “as the sector’s pullback gathers momentum”.

In a recent Market Matters newsletter, Gerrish said:

As medium–term bulls, we are looking at levels to potentially start increasing our exposure to the sector.

Remember, this is a sector that’s likely to witness plenty of M&A activity over the coming year.

For example, [in late May], Ramelius Resources Ltd (ASX: RMS) made a play for Westgold Resources Ltd (ASX: WGX).

Gerrish and his Market Matters team say their “ideal roadmap for gold” is the commodity price finding support beneath the US$2,300 per ounce mark.

Here are two gold stocks that Gerrish and his team say are buys when their share prices fall to the right levels.

Bellevue Gold Ltd (ASX: BGL)

This ASX gold stock closed on Tuesday at $1.88, down 5.53% for the day.

The team has a favourable view of Bellevue Gold at about the $1.70 mark, as Gerrish explains:

BGL has advanced over 15% so far in 2024, although recent bond jitters have dampened the performance of the $2.2bn WA-based gold miner.

On [3 June], a 4.8mn block of BGL exchanged hands at $1.93, arguably a good sign that the market still has the appetite for the miner around $2, assuming we don’t hear that directors were the sellers, investors wouldn’t want another Boss Energy Ltd (ASX: BOE)!

We like the risk/reward towards BGL around $1.70 …

Perseus Mining Ltd (ASX: PRU)

This ASX gold stock closed on Tuesday at $2.33, down 6.05% for the day.

The Market Matters analysts see value in Perseus shares at about $2.15 per share.

Gerrish says:

PRU has really outperformed in 2024, surging almost 30% since January 1st.

This $3.1bn stock looks set to break its $2.50 resistance area once the fear of rising interest rates subsides. It even pays a dividend of around 2%, but investors should be aware that its main revenue stream comes from Africa, which can, at times, increase a stock’s volatility.

We like the risk/reward towards PRU around $2.15 …

The post As ASX gold stocks cool off, here are 2 to buy when the price is right appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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.

If you don’t have exposure to the mining sector or want to increase your exposure to this side of the market, then read on.

That is because listed below are five top ASX mining stocks that brokers have given the thumbs up to this month.

In addition, making things even sweeter for investors, all five shares have been tipped to rise more than 10% from current levels over the next 12 months.

Let’s now see what these brokers are expecting from the five miners:

BHP Group Ltd (ASX: BHP)

The team at Goldman Sachs thinks that Australia’s largest miner could be a top option for investors this month. The broker recently reinstated coverage on the Big Australian’s shares with a buy rating and $49.00 price target. Based on its current share price of $43.74, this implies potential upside of 12% for investors over the next 12 months.

Lynas Rare Earths Ltd (ASX: LYC)

Goldman also thinks that this ASX mining stock could be a buy right now. In fact, it believes that the market is undervaluing this rare earths miner’s shares. So much so, it currently has Lynas’ shares on its coveted conviction list with a buy rating and $7.40 price target. This represents potential upside of 13% from where they currently trade.

Mineral Resources Ltd (ASX: MIN)

Over at Bell Potter, its analysts think that this mining and mining services company’s shares would be a great pick for investors this month. The broker currently has a buy rating and $84.00 price target on its shares. Based on its latest share price, this implies significant potential upside of 23% over the next 12 months.

Rio Tinto Group Ltd (ASX: RIO)

Goldman Sachs also thinks that Rio Tinto could be an ASX mining stock to buy this month. The broker currently has a buy rating and $138.90 price target on the iron ore and copper giant’s shares. This suggests that its shares could rise by 13% from current levels.

South32 Ltd (ASX: S32)

Finally, analysts at Macquarie think that diversified miner South32 could be a top ASX mining stock for investors to snap up this month. Due largely to its exposure to copper, late last month the broker reaffirmed its outperform rating on its shares with an improved price target of $4.25. Based on its current share price, this implies potential upside of almost 16% for investors over the next 12 months.

The post Buy Rio Tinto and these 4 ASX mining stocks in June appeared first on The Motley Fool Australia.

More reading

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• Here’s the iron ore price forecast through to 2027
• Don’t listen to the bears! Buy this ASX mining stock
• Guess which popular ASX 200 mining stock could crash over 30%
• Is it time to cash in these 2 ASX large-cap stocks?

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 and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.