Category: Stock Market

The lithium industry has been under significant pressure over the past 12 months due to a collapse in battery material prices.

While this has dragged most ASX lithium stocks significantly lower, that doesn’t necessarily mean that they are all buys.

Let’s now take a look at two popular options and see what analysts are saying about them at current levels. They are as follows:

Core Lithium Ltd (ASX: CXO)

This lithium miner’s shares are down almost 90% over the last 12 months. Investors have been hitting the sell button after weak lithium prices weighed heavily on its operations.

In fact, things have got so bad that the lithium miner is actually more of a processor than anything now. That’s because it has suspended mining operations indefinitely and is just processing ore stockpiles until they run out in the middle of the year.

Goldman Sachs thinks investors should stay well clear of the company. That’s because it still believes the ASX lithium stock is overvalued despite its significant decline. It said:

We rate CXO a Sell on: (1) Valuation, trading at a premium on ~1.1x NAV and an implied LT spodumene price of ~US$1,200/t (peer average ~1.05x & ~US$1,250/t (lithium pure-plays ~US$1,140/t)), with the lowest average operating FCF/t LCE on a more moderated/deferred production restart/ramp up, (2) Ongoing risk to restart timing in the current pricing environment, with a mine restart highly unlikely ahead of the next wet season and, given the Grants open pit has ~12 months of life, likely tied to a development decision on BP33 (with its own funding risks) to support a new processing contract, increasing the risk of a longer gap in production; (3) Potential resource growth/ development now likely longer dated.

Goldman has a sell rating and 11 cents price target on Core Lithium’s shares.

Arcadium Lithium (ASX: LTM)

With its shares down by a third since the start of the year, Bell Potter thinks that Arcadium Lithium is an ASX lithium stock to buy now.

Particularly given its very positive production growth outlook and its diverse operations. The broker explains:

LTM provides the largest, most diversified exposure to lithium in terms of mode of upstream production, asset locations, downstream processing and customer markets. It is a key large-cap leverage to lithium prices and sentiment, which we expect to improve over the medium term. In supportive markets, LTM’s growth pipeline could see the company more than double production over the next three years.

Bell Potter has a buy rating and $9.50 price target on its shares.

The post One ASX lithium stock to buy and one to sell appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• These ASX shares could rise 30% to 60%
• Forget Pilbara Minerals and buy this ASX 200 lithium stock instead
• At 14 cents, has the Core Lithium share price become a bit of a joke?
• Bell Potter names more of the best ASX 200 stocks to buy

Motley Fool contributor James Mickleboro owns Arcadium Lithium shares. 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.

At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Pilbara Minerals Ltd (ASX: PLS) remains the most shorted ASX share with short interest of 21.5%. This is down slightly week on week again. Short sellers appear to believe that lithium prices will be staying lower for longer.
• IDP Education Ltd (ASX: IEL) has 16.3% of its shares held short, which is up week on week again. This may be due to the language testing and student placement company battling tough trading conditions caused by student visa changes.
• Syrah Resources Ltd (ASX: SYR) has short interest of 13.1%, which is down week on week. This graphite miner continues to burn through cash due to weak battery materials prices.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest increase week on week again to 11.9%. Last week, the travel agent revealed that it expects record sales in FY 2024. Short sellers didn’t appear fazed by this.
• Liontown Resources Ltd (ASX: LTR) has 10.9% of its share held short, which is up week on week. This lithium developer is making good progress with the Kathleen Valley Lithium Project. Despite this, short sellers continue to target the company.
• Core Lithium Ltd (ASX: CXO) has short interest of 8.2%, which is flat week on week. This lithium miner has suspended mining operations due to weak lithium prices.
• Sayona Mining Ltd (ASX: SYA) has short interest of 8.1%, which is also flat week on week. This lithium miner hasn’t suspended its operations despite selling its lithium for $500 less per tonne than it costs to produce.
• Westgold Resources Ltd (ASX: WGX) has short interest of 8.1%, which is up strongly since last week. Short sellers seem to be unsure about the gold miner’s plan to merge with Canada-based Karoa Resources.
• Chalice Mining Ltd (ASX: CHN) has entered the top ten with short interest of 7.7%. This mineral exploration company’s shares have lost 81% of their value over the last 12 months. It seems that short sellers don’t believe the declines are over.
• Strike Energy Ltd (ASX: STX) has returned to the top ten with short interest of 7.55%. This gas company’s shares have been hammered this year due to disappointment over drilling at the SE-3 well.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• One ASX lithium stock to buy and one to sell
• These ASX shares could rise 30% to 60%
• Liontown shares charge higher on lithium project update
• Forget Pilbara Minerals and buy this ASX 200 lithium stock instead
• Here are the top 10 ASX 200 shares today

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 Idp Education. The Motley Fool Australia has recommended Flight Centre Travel Group and Idp Education. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you have a higher-than-average tolerance for risk, then you might want to consider adding some small caps to your investment portfolio.

But which small cap ASX shares should you buy?

Listed below are three that Morgans has on its best ideas list. Here’s why it is bullish on them:

AVITA Medical Inc (ASX: AVH)

This regenerative medicine company’s shares could be seriously undervalued according to Morgans. Particularly given the recent expansion of the ASX small cap share’s RECELL technology into new and lucrative indications. The broker commented:

AVH is a regenerative medicine company focusing on the acute wound care market. It has recently expanded its indication into full thickness skin defects and Vitiligo (US$5bn TAM). The expanded indication in full thickness skin defects has the required reimbursement in place and sales have started. AVH has provided revenue guidance for FY24 of growth of ~64% and importantly has guided to achieving profitability by 3QCY25. At the same time, the company is seeking approval by the FDA for its automated device RECELL Go, which if successful will launch 1 June 2024, and will be a meaningful driver of rapid adoption by clinicians.

Morgans has an add rating and lofty price target of $6.40.

Camplify Holdings Ltd (ASX: CHL)

This peer-to-peer RV rental operator could be a small cap ASX share to buy according to Morgans.

It likes the company due to its market leadership position in a significant global market. The broker said:

We expect CHL to continue to grow into its large addressable market locally, with over 790k registered RVs in Australia and ~130k in NZ. CHL only has ~2% of these on its platform. It has broadly doubled its domestic fleet since listing and with its acquisition of Germany- based PaulCamper (PC) now has a total fleet of over 29,000, making it a true global player.

Morgans has an add rating and $2.85 price target on its shares.

Superloop Ltd (ASX: SLC)

Another small cap ASX share to consider buying is Superloop. It is a growing telco with over 400,000 customers.

The broker is a big fan of Superloop and has named it as its top telco pick. This is thanks to its strong balance sheet and earnings and free cash flow growth. It explains:

SLC is our key telco pick. It’s the fastest growing, has a solid balance sheet (virtually no debt), and the highest Free Cash Flow yield in our coverage. The share price has lifted following a substantial upgrade to earnings expectations and a takeover offer from ABB (which the SLC Board declined). Even though the share price is up ~100% over the past 6 months, earnings have more than exceeded this. EPSA and FCF have lifted ~150% over the same period so we still see good fundamental value in SLC.

Morgans has an add rating and $1.50 price target on its shares.

The post Morgans names the best small cap ASX shares to buy in May appeared first on The Motley Fool Australia.

More reading

• Morgans rates these ASX small-cap shares as best buys
• Morgans names more of the best ASX shares to buy
• Why Avita Medical, NextDC, Predictive Discovery, and Star shares are tumbling today

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 Aussie Broadband and Avita Medical. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Camplify. The Motley Fool Australia has recommended Aussie Broadband, Avita Medical, and Camplify. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two of the hottest commodities around right now are copper and uranium.

With demand rising and supply struggling to keep up, prices have been increasing strongly. But how could you gain exposure to copper and uranium on the ASX?

Two ASX mining stocks that analysts at Bell Potter have recently tipped as buys are listed below.

Here’s why they could be in the buy zone right now:

Aeris Resources Ltd (ASX: AIS)

Bell Potter thinks that this ASX mining stock could be a great way to invest in the copper space.

The broker recently responded to the company’s quarterly update by reiterating its buy rating with an improved price target of 30 cents. This implies potential upside of almost 18% for investors over the next 12 months.

Commenting on the company, the broker said:

AIS is a copper dominant producer with all its assets in Australia. On balance, we maintain our production growth forecast for Tritton to which AIS’ financial performance and valuation is highly leveraged. With our higher commodity price forecasts our NPVbased valuation is up 30%, to $0.30/sh and we retain our Buy recommendation.

Lotus Resources Ltd (ASX: LOT)

The broker thinks that this ASX mining stock could be a great option for investors looking for uranium exposure.

Last week, Bell Potter retained its speculative buy rating on the uranium developer’s shares with an improved price target of 60 cents. This suggests that upside of 30% is possible over the next 12 months.

The broker highlights that Lotus Resources has just released an updated mineral resource estimate for the Letlhakane project (LM). This project was acquired through its merger with ACAP Resources.

It notes that “the updated MRE stands at 155.3Mt at 345ppm U3O8 for a total contained 118.2Mlbs U3O8, inclusive of 34.4Mlbs in Indicated Resources.” In response to the above, the broker said:

We maintain a Speculative Buy recommendation and our valuation lifts to $0.60/sh (previously $0.50/sh). Our valuation lift comes from an extension of potential operations at LM beyond our initial forecast (initial LOM production of 61Mlbs). We see positive catalysts at KM [Kayelekera] including 1) MDA finalisation, 2) FID and 3) offtake negotiations. Successful navigation of these hurdles will place LOT in the best position to advance project funding for KM, all whilst LM advances in the background.

Though, it is worth noting that Bell Potter’s speculative buy rating means this ASX mining stock may only be suitable for investors with a high tolerance for risk.

The post Copper and uranium: 2 ASX mining stocks to buy appeared first on The Motley Fool Australia.

More reading

• The little known ASX uranium stock that could rise 35%
• Is it too late to buy surging ASX copper shares like Sandfire?
• 2 ASX mining stocks to buy now for returns of 18% to 34%
• Why Aeris Resources, Mesoblast, Pointsbet, and Worley shares are sinking today
• ASX copper stocks in the spotlight as the red metal soars to 2-year highs

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 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.

QBE Insurance Group Ltd (ASX: QBE) shares have been a great investment over the past 12 months.

During this time, the insurance giant’s shares have generated a return of 19%.

But those returns are behind us now, what might happen if you were to invest $10,000 into the company’s shares today? Let’s find out.

$10,000 invested in QBE shares

With QBE shares currently changing hands for $17.61, if you were to invest $10,000 (and a further $2.48) you would end up own 568 units.

What could those shares be worth in a year? Well, Goldman Sachs has just responded to the insurance company’s quarterly update by reiterating its buy rating with an improved price target of $20.90.

This values those 568 shares at a total of $11,871.20. That’s a return of 18.7% or $1,868.72 on your original investment.

But wait, there’s more!

QBE is traditionally one of the more generous dividend payers on the Australian share market. Goldman expects this trend to continue and is forecasting a 5.3% dividend yield this year, a 5.4% dividend yield in FY 2025, and then a 5.5% dividend yield in FY 2026.

This will mean dividends of approximately $530 over the next 12 months, which boosts the total return to $12,400 or 24%.

Why is Goldman bullish?

Goldman was pleased with QBE’s “strong” quarterly update and notes that its guidance has been reaffirmed. It said:

1Q24 print was operationally strong a) Guidance reaffirmed – COR 93.5%/ GWP mid single digit b) Strong investment result (in line) – 4.8% running yield at May-24 c) Net impact across both Apr-24 YTD Perils experience & PYD flagged perhaps ~$50m positive (on our estimates) before full reserve calcs at half year. We had estimated PYD from the Italian hail event at $50m. Further, we note that QBE increased its risk asset allocation to 15% (from 12%) over the quarter which we think will be a capital strain of ~3-5bps to PCA ratio. Outside of capital management, this signals confidence in QBE’s capital position / ROE of business.

Commenting on its bullish view on QBE shares, the broker concludes:

QBE is a global commercial insurer with three main geographical operations across Australia Pacific, International (encomassing Europe) and North America. We are Buy-rated on QBE because 1) QBE has the strongest exposure to the commercial rate cycle. 2) QBE’s achieved rate increases continue to be strong & ahead of loss cost inflation. 3) North America on a pathway to improved profitability. 4) Valuation not demanding. 5) Strong ROE.

The post What could $10,000 invested in QBE shares be worth in 12 months? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• The QBE share price is marching higher on Friday. Here’s why
• Morgans names the best ASX dividend shares to buy in May
• 5 ASX dividend shares to buy next week
• Buy NAB and these ASX 200 dividend 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. 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 recent times, the Australian share market has provided income investors with an average dividend yield of approximately 4%.

While this is a good yield, you don’t have to settle for that. Especially given that there are analysts forecasting 6%+ dividend yields from some ASX dividend shares.

Let’s take a look at three that analysts are feeling bullish about:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share that analysts are tipping as a buy right now is Accent Group. It is the owner of numerous footwear retail store brands such as HypeDC and Platypus.

Bell Potter likes Accent Group due to its strong market position and its “growth adjacencies via exclusive partnerships with globally winning brands such as Hoka and growing vertical brand strategy.”

The broker currently has a buy rating and $2.50 price target on its shares.

As for income, Bell Potter expects the company to pay fully franked dividends per share of 13 cents in FY 2024 and then 14.6 cents in FY 2025. Based on the latest Accent share price of $1.84, this represents dividend yields of 7% and 7.9%, respectively.

APA Group (ASX: APA)

Another ASX dividend share that analysts are bullish on is APA Group. It is an energy infrastructure business that owns and operates a portfolio of gas, electricity, solar and wind assets valued at $27 billion.

The team at Macquarie thinks it would be a great option for income investors. Particularly given its belief that the company’s long run of dividend increases can continue.

Macquarie has an outperform rating and $9.40 price target on its shares.

As for those dividends, the broker is forecasting dividend increases to 56 cents per share in FY 2024 and then 57.5 cents per share in FY 2025. Based on the current APA Group share price of $8.78, this equates to 6.4% and 6.55% yields, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

A final ASX dividend share that analysts are bullish on is Healthco Healthcare and Wellness REIT. It is a property company with a focus on health and wellness assets such as hospitals, aged care, and primary care properties.

Bell Potter also sees it as a dividend share to buy and expects some big yields from its shares in the near term.

The broker is forecasting dividends per share of 8 cents in FY 2024 and 8.3 cents in FY 2025. Based on the current Healthco Healthcare and Wellness REIT unit price of $1.19, this will mean yields of 6.7% and 7%, respectively.

Bell Potter has a buy rating and $1.70 price target on its shares.

The post These ASX dividend shares offer 6%+ yields appeared first on The Motley Fool Australia.

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• Why I’d buy high-yield ASX dividend shares for superannuation in retirement
• 1 compelling ASX dividend share I’d buy for its big yield
• Telstra shares and 4 other defensive income stocks to buy now
• 4 ASX retirement shares to buy in May

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group and Macquarie 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.

On Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week on a positive note. The benchmark index rose 0.35% to 7,749 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set to start the week in the red despite a relatively positive finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.2% lower. On Friday in the United States, the Dow Jones was up 0.3%, the S&P 500 rose 0.15%, and the Nasdaq traded largely flat.

Oil prices fall

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a poor start to the week after oil prices weakened on Friday. According to Bloomberg, the WTI crude oil price was down 1.25% to US$78.26 a barrel and the Brent crude oil price was down 1.3% to US$82.79 a barrel. A stronger US dollar weighed on prices.

ANZ going ex-dividend

ANZ Group Holdings Ltd (ASX: ANZ) shares are likely to trade lower on Monday after going ex-dividend for the bank’s upcoming interim dividend. Last week, the big four bank released its half year results, reported a cash profit of $3,552 million, and declared an interim dividend of 85 cents per share. Eligible shareholders can look forward to receiving this 65% franked interim dividend on 1 July.

Gold price pushes higher

ASX 200 gold mining shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a good session after the gold price charged higher on Friday. According to CNBC, the spot gold price was up 1.15% to US$2,366.9 an ounce. The precious metal extended its gains on Friday after US jobs data supported rate cut bets.

QBE rated as a buy

The QBE Insurance Group Ltd (ASX: QBE) share price could be undervalued according to analysts at Goldman Sachs. In response to the insurance giant’s quarterly update, the broker has retained its buy rating with an improved price target of $20.90. It said: “1Q24 print was operationally strong a) Guidance reaffirmed – COR 93.5%/ GWP mid single digit b) Strong investment result (in line) – 4.8% running yield at May-24 c) Net impact across both Apr-24 YTD Perils experience & PYD flagged perhaps ~$50m positive (on our estimates) before full reserve calcs at half year.”

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

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• $20,000 invested in these ASX 200 shares 10 years ago is worth…
• Here are the top 10 ASX 200 shares today
• Should you buy ANZ shares before they trade ex-dividend next week?
• It was huge week for ASX 200 bank shares. Here’s why

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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.

ASX 200 mining stocks have vastly underperformed ASX 200 bank stocks in recent months.

Take a look at this chart below comparing the S&P/ASX 200 Banks Index (ASX: XBK) and the S&P/ASX 200 Resources Index (ASX: XJR) in the year to date.

ASX 200 bank stocks have risen 8.57% whilst ASX 200 resources stocks have lost 7.41% of their value.

This is an interesting situation, given the mining and banking stocks comprise a huge proportion of the ASX 200’s total market capitalisation.

With one going up and one going down, is it any wonder the S&P/ASX 200 Index (ASX: XJO) is virtually flat in the year to date at 7,749 points, up just 1.59%?

So, what’s going on?

Ray David, Portfolio Manager and Partner at Blackwattle Investment Partners discussed the divergent performance between the two stock types in a recent interview with ausbiz.

Why are ASX 200 mining stocks underperforming bank stocks?

In terms of ASX 200 mining stocks, David explained that the market is concerned about the iron ore price amid weakness in China’s property market.

This has weighed on the performance of mega iron ore shares BHP Group Ltd (ASX: BHP), down 15% in the year to date, and Rio Tinto Ltd (ASX: RIO), down 4.8% in the year to date.

David says there’s an opportunity for investors to snap up weakened BHP and Rio Tinto shares while commodity prices are rising.

He said:

So you’ve seen softer property sales, softer property prices, and a lack of stimulus [in China]. So that’s really weighed on Rio and BHP. But if you actually look at underlying commodities for RIO and BHP, iron ore is up about 12% over one year, and copper — which is about 25 to 30% of earnings — is up by about 17%, so we think there’s a real opportunity for investors …

In terms of ASX 200 bank stocks, David said the banks “look like they’ve overstretched on valuations”.

… so banks are trading about … 16x earnings. Markets have gotten excited that bad debts really won’t tick up but we still think there’ll be some pressure there.

In terms of deciding between ASX 200 mining stocks vs. bank stocks, David sums it up:

… the concerns around demand for iron ore and copper in our view are probably too cautious, and so there’s an opportunity for investors to be overweight materials because the valuation multiples are a lot cheaper than the banks. They’re trading on 11x, 12x cash earnings.

Which other miners are a buy?

David said Blackwattle looks for mining stocks that tick four boxes:

• Low-cost
• Long reserve lives
• Strong balance sheets
• Good management.

One of his ASX 200 mining stock picks is lithium producer IGO Ltd (ASX: IGO).

He describes decarbonisation as “a theme for the next century”. It will mean the adoption of much more electrification and a reduction in fossil fuels and emissions.

He says there are four commodities that stand to benefit most from decarbonisation. They are lithium, copper, rare earths and aluminium.

David said:

So the way we’re playing decarbonisation is through our ownership in … IGO.

IGO owns a 25% interest in the lowest-cost spodumene producer in the world. So, the Greenbushes mine, it’s producing under US$400 dollars a tonne, that’s well below the current spodumene lithium price of US$1,100 a tonne.

And again, it’s long reserve life, so a mine life out to 2040; it’s got no debt so the balance sheet will see you get through the volatility of commodity prices, and also there’s a management team that’s now in place that’s focusing on improving shareholder outcomes because the previous management team did destroy some value through some poor acquisitions in nickel.

David admits “the market hates lithium at the moment” following a 52% decline in commodity prices over 12 months.

But he said Blackwattle sees the demand profile for lithium in the future as quite strong.

… and if you’re producing at the lowest cost, you’ll be able to produce lots of cash flow for shareholders, which IGO should, and again the valuation is attractive, with no debt on the balance sheet.

IGO shares finished the session on Friday at $7.92 apiece, down 0.25%. The ASX 200 lithium mining stock has fallen 13% in the year to date.

The post ASX 200 banks vs. mining stocks: Which is the better buy today? appeared first on The Motley Fool Australia.

More reading

• 4 excellent ASX 200 dividend shares to buy for your income portfolio
• Should you buy BHP stock on a pullback?
• Buying BHP shares for the Anglo takeover? Here’s why it might be a ‘crazy’ move
• Buy Rio Tinto and these ASX 200 dividend stocks for a passive income boost
• Is it too late to buy surging ASX copper shares like Sandfire?

Motley Fool contributor Bronwyn Allen has positions in BHP Group. 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 have room for some new exchange-traded funds (ETFs) in your portfolio, then read on!

Listed below are five ASX ETFs that are highly rated right now and could be good options for investors when the market reopens next week.

Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ASX ETF to look at is the BetaShares Asia Technology Tigers ETF. It could be a great option if you’re feeling positive on the long term Asian economic outlook. That’s because it provides investors with super-easy access to many of the best tech stocks from China and the rest of Asia (but not Japan). Many of these are the region’s equivalents of the West’s biggest and best tech companies and appear well-positioned for long-term growth.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF to consider buying next week is the BetaShares Global Cybersecurity ETF. It provides investors with access to the global cybersecurity sector. And this could be a great place to be right now. That’s because the sector has been tipped to grow materially over the next decade or two due to the rising threat of cybercrime and the shift to the cloud. It invests in the leaders in the sector and emerging players.

Betashares Global Uranium ETF (ASX: URNM)

Another ASX ETF for investors to look at next week is the Betashares Global Uranium ETF. It could be a good option if you believe that nuclear power is the key to decarbonising the planet. As its name implies, this fund provides investors with exposure to a portfolio of leading companies in the global uranium industry. These companies stand to benefit greatly from increasing demand for the chemical element.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A fourth ASX ETF to look at next week is the very popular VanEck Vectors Morningstar Wide Moat ETF. Much to the delight of its unitholders, the MOAT ETF has delivered very strong returns for investors in recent years. This has been underpinned by its focus on investing in high-quality companies with fair valuations and sustainable competitive advantages. These are the qualities that legendary investor Warren Buffett looks for when making investments. And it is never a bad idea to follow the Oracle of Omaha’s lead.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ASX ETF for investors to consider buying next week is the Vanguard MSCI Index International Shares ETF. This popular ETF gives investors access to more than 1,000 of the world’s largest listed companies. This means that you are left owning a very diverse group of quality companies. Many of which are absolute behemoths and household names.

The post 5 excellent ASX ETFs to buy next week appeared first on The Motley Fool Australia.

More reading

• Top ASX shares to buy for your superannuation fund in May 2024
• Does the VanEck Wide Moat ETF pay a decent ASX dividend?
• 2 ASX ETFs to buy and hold forever in your investment portfolio
• How to invest in uranium on the ASX
• 5 ASX ETFs to invest $10,000 into next week

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 BetaShares Global Cybersecurity ETF. 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, Betashares Global Uranium Etf, VanEck Morningstar Wide Moat 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.

It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Lovisa Holdings Ltd (ASX: LOV)

According to a note out of Bell Potter, its analysts have retained their buy rating on this fashion jewellery retailer’s shares with an improved price target of $36.00. Bell Potter has been reviewing the retail sector and continues to feel very bullish about Lovisa. In fact, the broker believes that the company’s store network can grow even quicker in new markets than first thought after taking into account some recent data points from markets such as Netherlands, Ireland, Canada, and Peru. Bell Potter now estimates that Lovisa can grow its store network by 10% per annum between FY 2023 and FY 2034. In addition, its analysts highlight encouraging trends out of the ecommerce platforms in both Australia and the US compared to its key rival. Combined, this has led to the broker boosting its earnings estimates and valuation accordingly. The Lovisa share price ended the week at $31.77.

Qube Holdings Ltd (ASX: QUB)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating on this logistics solutions company’s shares with an improved price target of $3.95. This follows Qube’s investor day event, which went down well with the broker. Goldman notes that the company’s Patrick operation is unmatched and has an advantage at Port Botany via automation, its 1,400m quay line, and efficiencies. In addition, the broker was pleased to see that trading conditions are improving and execution risks at Moorebank are reducing. Overall, this has led to the broker lifting its earnings estimates for the coming years and boosting its valuation. The Qube share price was fetching $3.58 at Friday’s close.

REA Group Ltd (ASX: REA)

Analysts at Morgan Stanley have reaffirmed their overweight rating and $210.00 price target on this property listings company’s shares. This follows the release of REA Group’s quarterly update, which revealed very strong sales and earnings growth from the realestate.com.au operator. Morgan Stanley notes that the company slightly outperformed analyst expectations but significantly outperformed its closest rival. This is cementing its market leadership position further, which bodes well for the future and appears to support Morgan Stanley’s forecast for further strong growth in the coming years. The REA share price ended the week at $187.32.

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

More reading

• I’d buy these ASX retail shares if economic fragility starts a fire sale
• Brokers name 3 ASX shares to buy now
• 5 ASX shares to buy following the market selloff
• Why is this ASX 200 stock avoiding the market selloff and pushing higher?
• Why 4DMedical, Orica, PSC Insurance, and REA shares are rising today

Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Lovisa, and REA Group. The Motley Fool Australia has recommended Lovisa and REA Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.