Category: Stock Market

BHP Group Ltd (ASX: BHP) shares are charging higher today.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed up 0.8% on Friday trading for $44.89. In morning trade on Monday, shares are swapping hands for $45.87 apiece, up 2.2%.

For some context, the ASX 200 is 0.5% at this same time.

This comes amid another uptick in copper and iron ore prices, and as the clock ticks down on BHP’s takeover bid for Anglo American (LSE: AAL). The alarm is set for 5pm United Kingdom time this Wednesday (early Thursday morning Aussie time).

You see, to move past 22 May, UK regulations stipulate the ASX 200 miner must be involved in two-way negotiations with Anglo, in which case they can ask for more time to strike an agreement. Alternatively, BHP could also come out with an unconditional offer free of any conditions.

So, should investors expect BHP shares will encompass Anglo American?

We’ll look at what the experts are saying below.

First, a quick recap.

ASX 200 miner eyeing expanded copper footprint

On 26 April, BHP shareholders learned the miner had made a conditional offer to acquire Anglo American for approximately $60 billion.

BHP is primarily interested in Anglo American’s copper assets. The red metal is forecast to remain undersupplied for years despite strong demand growth due to the global electrification push. A successful takeover would see BHP become the world’s top copper producer.

However, Anglo American’s board swiftly rejected the initial offer as undervaluing the company’s growth prospects.

BHP shares made headlines again on 14 May, when the miner returned with an improved takeover bid valued at some $64 billion.

This too was rejected by the Anglo American board.

In the days that followed, investors learned that Anglo American’s CEO Duncan Wanblad is now planning to divest its platinum and diamond businesses and sell its Queensland-based coal mines, potentially to ward off BHP’s takeover attempt.

BHP has also flagged its intentions to likely sell off some of Anglo’s assets, like its platinum and iron ore projects in South Africa.

So, with the clock ticking on a momentous acquisition, what can ASX 200 investors expect?

What’s ahead for BHP shares and Anglo American?

Commenting on the prospect of BHP shares enveloping Anglo American’s assets, Josh Gilbert, market analyst at eToro said, “We might see a third and final offer from the world’s largest miner.”

But that’s likely to be the final deal.

“BHP CEO Mike Henry has already expressed his frustration at a deal not being met, so the next offer is likely to be the last,” Gilbert said.

He noted that despite a difficult past few years “with poor acquisitions, weaker commodity prices, and operating failures”, Anglo American “has quality copper mines that the competition wants”.

And it’s relatively cheap compared to many of its peers.

According to Gilbert:

The business trades at 11 times forward price to earnings, in line with its long-term average and lower than broader markets, showing there isn’t much optimism priced into shares right now. 

The bottom line is that this acquisition still may not come to fruition. BHP needs to come to the table with a better offer. However, savvy investors will know that if copper prices keep rising, China’s housing crisis improves, and BHP can stay financially disciplined, the business will likely be in a better position years from now. 

Liberum Capital says there are three ways that BHP shares will acquire Anglo American. All of which come with a cost.

According to Liberum (quoted by The Australian Financial Review):

We see three ways to get it over the line 1) a big premium – market talking up at least £30/share, but requires another 35 per cent bump in the offer 2) a radical change in structure – perhaps a BHP/Glencore joint bid for all assets 3) more time – if Duncan [Wanblad] doesn’t deliver on his plans, BHP’s offer will likely stay on the table.

Liberum added that regardless of the short-term outcome, Anglo American shares and BHP shares are now closely linked:

Anglo American shares will be tied to BHP’s performance going forward and if … Wanblad fails to deliver material progress on the proposed restructuring plans over the next 18 months, or if Anglo American shares do not outperform BHP, then shareholders will be looking for BHP to come back with an offer.

BHP shares are up 2% over the past year.

The post BHP shares charging higher as the clock ticks down on the Anglo American takeover appeared first on The Motley Fool Australia.

More reading

• ASX 200 mining shares charging higher amid China’s $210 billion cash injection
• What this unprecedented short squeeze signals for ASX copper stocks
• What’s the outlook for ASX iron ore shares after the federal budget?
• How much passive income would I make from 300 BHP shares?
• Why BHP, Boss Energy, Domino’s, and Renascor shares are racing higher

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.

Many investors hold ANZ Group Holdings Ltd (ASX: ANZ) shares for the juicy dividends they pay. However, the size of future dividends is largely dependent on the bank’s profit. So just how much profit is ANZ expected to make in the next few years?

With a rapidly changing economic environment, and uncertainty surrounding inflation and interest rates, no one can know precisely how much profit the ASX bank stock will deliver in FY25 or FY26. But we can rely on ANZ’s recent earnings updates and predictions from top brokers to gain a pretty good idea of what’s to come.

Also to be considered is the fact that ANZ is looking to boost its scale and geographic diversification (particularly in Queensland) by buying the banking operations of Suncorp Group Ltd (ASX: SUN).

Let’s dive into the outlook!

FY24

The bank recently reported its FY24 first-half result, which according to broker UBS, was largely in line with market expectations. Net profit after tax (NPAT) came in at $3.5 billion, down 1% half-over-half. ANZ benefitted from a stronger non-net interest income performance, supported by its loan book doing better than expected.

UBS said the $2 billion on-market share buyback was a “welcome positive”.

However, there was a 9 basis point (0.09%) hit to the net interest margin (NIM) to 1.56%, which the broker said was a “negative overhang on the result”. Excluding ‘markets’, ANZ’s NIM declined 2 basis points (0.02%) to 1.63%.

After reviewing the results, UBS increased its FY24 profit forecast for ANZ by around 6%, but downgraded the FY25 and FY26 forecasts by 0.1% and 0.6%, respectively. The downgrades were due to higher cost expectations.

The broker is forecasting the bank could make $7 billion in FY24 and deliver earnings per share (EPS) of $2.29. This suggests ANZ is valued at around 12x FY24’s estimated earnings.  

FY25

UBS is still forecasting FY25 will see a sizeable increase in profitability for ANZ shares, despite the challenge of rising arrears and lending competition.

The broker is suggesting ANZ’s net profit can rise by more than $200 million to $7.2 billion. This would translate to the bank making EPS of $2.42. If this eventuates, it would mean the ANZ share price is currently valued at under 12x FY25’s estimated earnings.

FY26

UBS suggests that ANZ’s profit could rise again by around $500 million to $7.7 billion in FY26. This would mean the ASX bank stock could deliver EPS of $2.58, despite the broker’s warning of higher costs than previously expected for FY26.

Based on those profit estimates, the ANZ share price is currently trading at under 11x FY26’s estimated earnings.

Foolish takeaway

Whilst UBS tapered its profit forecast slightly based on the bank’s most recent results, the outlook still looks pretty promising to me. If ANZ can deliver on the broker’s predictions, I believe that the current share price trading at under 11x FY26’s earnings seems like good value for ASX income investors.

The post Here is the earnings forecast through to 2026 for ANZ shares appeared first on The Motley Fool Australia.

More reading

• Here’s what Wilsons is saying about ANZ, CBA, NAB, and Westpac shares
• How ASX growth shares can become top dividend stocks
• Here’s the ANZ dividend forecast through to 2026
• Why ANZ, Fletcher Building, Macquarie, and Sayona Mining shares are dropping today
• Why is the ANZ share price sinking today?

Motley Fool contributor Tristan Harrison 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’re a beginner investor and not yet confident with stock picking, then the solution could be exchange traded funds (ETFs).

That’s because ETFs allow investors to buy large groups of shares through a single investment.

This means that not only can you build a diverse portfolio effortlessly, but you don’t have to worry about dedicating time to researching individual shares.

With that in mind, which ASX ETFs could be top options for beginner investors right now? Three that could be worth considering are listed below:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ASX ETF that could be a great pick for beginners is the BetaShares NASDAQ 100 ETF. It would be a top option if you want to invest in some of the biggest and best companies that the world has to offer (which is never a bad idea!).

That’s because the massively popular ETF gives you access to the 100 largest non-financial shares on the famous NASDAQ index. This is where you’ll find all the big tech giants that are ever-present in our daily lives. This includes by providing search engines, streaming services, mobile phones, spreadsheets, electric vehicles, and online shopping platforms.

iShares S&P 500 ETF (ASX: IVV)

Another ASX ETF for beginner investors to consider buying this month is the iShares S&P 500 ETF. It could be a good alternative to the NASDAQ 100 ETF if you want a more balanced option for your investment portfolio.

The reason for this is that as well as giving you access to the 100 shares in the above-mentioned ETF, the iShares S&P 500 ETF also covers a further 400 of the top listed companies on Wall Street. This means that you will be investing in a diverse group of shares, including countless household names, from a range of different sectors. This makes it a more diverse option for investors.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ASX ETF for beginner investors to look at is the Vanguard MSCI Index International Shares ETF. It could also be a great option if you’re focusing on diversity. That’s because this ETF gives investors exposure to approximately 1,500 of the world’s largest listed companies from major developed countries.

The fund manager, Vanguard, highlights that investing internationally offers greater access to sectors such as technology and health care that aren’t as well represented in the Australian share market. Among the ETF’s largest holdings are giants from numerous industries such as Apple, Johnson & Johnson, JP Morgan, Nestle, and Visa.

The post 3 excellent ASX ETFs for beginner investors to buy appeared first on The Motley Fool Australia.

More reading

• 16% per annum: Is the iShares S&P 500 ETF (IVV) too good to turn down?
• 3 reasons the Betashares Nasdaq 100 ETF (NDQ) is a great ASX ETF pick
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• Why these ASX ETFs could be fantastic buy and hold options
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, BetaShares Nasdaq 100 ETF, JPMorgan Chase, Visa, and iShares S&P 500 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and Nestlé. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Vanguard Msci Index International Shares ETF, and iShares S&P 500 ETF. 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 21.6%. This is up slightly week on week. Short sellers are betting on a lithium surplus weighing on prices.
• IDP Education Ltd (ASX: IEL) has 16.2% of its shares held short, which is down slightly week on week. This language testing and student placement company has been targeted due to student visa changes in a number of key markets.
• Syrah Resources Ltd (ASX: SYR) has short interest of 13.2%, which is up slightly week on week. Short sellers may believe this graphite miner will continue to burn through cash due to weak battery materials prices and require yet another capital raising.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease week on week to 11.5%. Short sellers appear to have closed a few positions in response to news that the travel agent giant expects record sales in FY 2024.
• Liontown Resources Ltd (ASX: LTR) has 10.3% of its share held short, which is down sharply week on week. Liontown’s Kathleen Valley Lithium Project will soon be commencing production and adding to the supply of the white metal.
• Westgold Resources Ltd (ASX: WGX) has short interest of 8.6%, which is up strongly for a second week in a row. This may be due to doubts over the gold miner’s plan to merge with Canada-based Karoa Resources.
• Core Lithium Ltd (ASX: CXO) has short interest of 7.8%, which is down week on week. Lithium prices have become so weak that Core Lithium had to suspend mining activities to conserve cash.
• Chalice Mining Ltd (ASX: CHN) has short interest of 7.8%, which is up week on week. Short sellers may be regretting this one. The mineral exploration company’s shares rocketed 25% last week following the Federal Budget.
• Sayona Mining Ltd (ASX: SYA) has short interest of 7.6%, which is down week on week. It currently costs this lithium miner $500 per tonne more to produce its lithium than it is selling it for. This hasn’t gone unnoticed by short sellers.
• Weebit Nano Ltd (ASX: WBT) has returned to the top ten with short interest of 7.6%. This semiconductor company’s shares have lost almost half their value this year. Despite this, it seems that short sellers believe they can fall even further given the company’s lack of meaningful revenue and its significant competition.

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

More reading

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• Why Clearview, Loyal Lithium, Polynovo, and Weebit Nano shares are falling
• Buy one, sell the other: Goldman’s verdict on these 2 ASX 200 travel shares

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 are on the lookout for the winning combination of market-beating returns and an attractive dividend yield (who isn’t?), then it could be worth checking out the two ASX stocks in this article.

That’s because the team at Morgans thinks so highly of these stocks that it has put them on its best ideas list this month and is tipping very big returns over the next 12 months.

Here’s what you need to know about these stocks:

Cedar Woods Properties Limited (ASX: CWP)

Morgans thinks this property company is great value at current levels and sees scope for the ASX stock to re-rate to higher multiples. Particularly given that demand for its offering is improving and should result in improving margins in the near future. The broker explains:

CWP is a volume business and the demand for lots looks to be improving, with margins to invariably follow. CWP’s exposure to lower priced stock in higher growth markets sees further potential to drive earnings. On this basis, we see every reason for CWP to trade at NTA and potentially at a premium, were the housing cycle to gain steam through FY25/26.

Morgans has an add rating and $5.60 price target on its shares. This implies potential upside of 20% for investors from current levels. In addition to this upside, the broker is forecasting a 4.3% dividend yield from its shares.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX stock that could be a buy according to Morgans is youth fashion retailer Universal Store. The broker likes the company due to its growth opportunities and resilient target market. It said:

Our positive view about the fundamental long-term appeal of Universal Store as a retail proposition and investment opportunity is undiminished. The growth opportunities are in place. Universal Store’s women’s banner Perfect Stranger is performing well, justifying an acceleration in its network expansion; the prospect of building out the wholesale distribution channels acquired with CTC is compelling; and customers continue to respond well to the Universal Store banner, rendering its plan to grow this network to more than 100 stores more than reasonable. Although its core youth customers are far from buoyant, they continue to spend.

Morgans has an add rating and $6.50 price target on its shares, which suggests potential upside of 20%. Making the deal even sweeter for investors is that the broker believes this ASX stock will provide a fully franked ~5% dividend yield.

The post Morgans says these ASX stocks can rise 20% (and pay big dividends!) appeared first on The Motley Fool Australia.

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• 5 ASX dividend shares to buy next week

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.

There are plenty of ASX 200 dividend stocks to choose from, but which ones could be in the buy zone?

Three that analysts have recently named as buys are listed below. Here’s what they are saying about them:

Deterra Royalties Ltd (ASX: DRR)

Morgan Stanley thinks that Deterra Royalties could be an ASX 200 dividend stock to buy.

It is a mining royalty company with a range of operations, including its cornerstone asset Mining Area C in the Pilbara region of Western Australia.

The broker is feeling positive about the company’s outlook thanks to favourable commodity prices. So much so, it is one of its favourites in the mining sector right now.

It also believes Deterra Royalties is well-positioned to pay some big dividends in the near future. It is forecasting fully franked dividends per share of 32.7 cents in FY 2024 and 39 cents in FY 2025. Based on the current Deterra Royalties share price of $4.84, this will mean dividend yields of 6.75% and 8%, respectively.

Morgan Stanley has an overweight rating and $5.60 price target on its shares.

Inghams Group Ltd (ASX: ING)

Over at Morgans, its analysts think that Inghams could be an ASX 200 dividend stock to buy this week. It is Australia’s leading poultry producer and supplier.

The broker likes the company due to its market leadership position, favourable consumer trends, and attractive valuation. In fact, in respect to the latter, the broker feels that Ingham’s shares are actually “undervalued” at current levels.

Morgans is also expecting some generous dividend yields in the near term. Its analysts are forecasting fully franked dividends of 22 cents per share in FY 2024 and then 23 cents per share in FY 2025. Based on the current Inghams share price of $3.79, this equates to yields of 5.8% and 6.1%, respectively.

The broker has an add rating and $4.40 price target on its shares.

Suncorp Group Ltd (ASX: SUN)

Finally, Goldman Sachs thinks that Suncorp could be a top ASX 200 dividend stock to buy. It is one of Australia’s largest insurance companies.

The broker believes that Suncorp is well-positioned thanks to tailwinds in the general insurance market. It expects this to underpin fully franked dividends per share of 78 cents in FY 2024 and 83 cents in FY 2025. Based on the current Suncorp share price of $16.31, this will mean dividend yields of 4.8% and 5.1%, respectively.

Goldman has a buy rating and $17.54 price target on the company’s shares.

The post 3 ASX 200 dividend stocks for investors to buy 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 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.

There are plenty of ASX growth shares for investors to choose from on the local market.

But which ones could be top options for investors in May? Let’s take a look at a couple that are highly rated by analysts. Here’s what they are saying about them right now:

IDP Education Ltd (ASX: IEL)

Goldman Sachs remains very positive on this language testing and student placement company and sees it as an ASX growth share to buy.

Its analysts don’t appear overly concerned by the short term headwinds that IDP Education is facing. Instead, they are focusing on the long term, which the broker believes is extremely positive. Goldman explains:

With valuation near all-time lows (25x P/E vs 45x historically), and share px -17% in the last month, we would argue the market has priced these cuts already given VA Consensus is relatively flat. We are nearing the base for FY25E earnings and are now capitalising what we see as trough earnings/growth at a historically low multiple. IEL’s structural growth outlook and business quality remain unchanged in our view, and we reiterate Buy.

Goldman currently has a buy rating and $26.60 price target on IDP Education’s shares.

NextDC Ltd (ASX: NXT)

The data centre market certainly is a great place to be right now. That’s because the artificial intelligence (AI) boom is accelerating demand for data centre capacity.

A testament to this was NextDC’s recent capital raising. It raised $1.3 billion from investors in April to accelerate “the development and fit out of NEXTDC’s leading digital infrastructure platform in its core Sydney and Melbourne markets to meet unprecedented growth in customer demand and position itself to take advantage of ongoing market expansion over the medium term.”

It is thanks partly to this demand that Morgans thinks that the company is an ASX growth share to buy right now. It explains:

NXT should deliver another good set of results in FY24 with some upside risk to guidance, in our view. Structural demand for cloud and colocation remains incredibly strong. NXT’s new S3 and M3 data centres are now open. Consequently, we expect significant new customer wins over the next six-to-twelve months (including CSP options being exercised). Sales should drive the share price higher. NXT looks comfortably on-track to generate over $300m of EBITDA in the next three to five years.

Morgans currently has an add rating and $19.00 price target on NextDC’s shares.

The post 2 highly rated ASX growth shares to buy before it’s too late appeared first on The Motley Fool Australia.

More reading

• Why this smashed ASX 200 share is a fundie’s top value pick
• 5 stellar ASX growth shares to buy for strong returns
• Why IDP Education, JB Hi-Fi, PYC, and Renascor shares are falling today
• Here are the top 10 ASX 200 shares today
• 3 ASX All Ords shares going gangbusters on Wednesday

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

These two ASX dividend shares can provide excellent passive income and could be solid options for capital growth, too.

The high interest rate and inflationary environment has led to some stocks trading at a large discount to their underlying value.

I’m optimistic about the future of the below two ASX dividend shares.

Bailador Technology Investments Ltd (ASX: BTI)

Bailador is a company that invests in unlisted technology businesses. Software is an attractive industry to invest in because of the high margins that technology companies can generate on their intangible offerings. On top of that, software businesses can rapidly sell another (digital) subscription, they don’t need to open another store or make another car or table.

Typically, Bailador invests in companies that are run by their founders and have proven business models with attractive unit economics, international revenue generation, and a “huge market opportunity.”

Rosterfy is one of the most recent Bailador investments. This company provides volunteer and workforce management software to not-for-profit organisations, government volunteering bodies, and mass-scale sporting and other events.

Since Bailador’s investment, Rosterfy has seen strong annual recurring revenue (ARR) growth, driven by a combination of new customer wins and account expansion from existing customers.

Rosterfy generates more than 50% of its ARR outside of Australia, with customers including FIFA, EUFA, Tennis Australia, Golf Australia, Lifeline Australia, British Heart Foundation, Greater London Authority, Brisbane City, Auckland Council and Las Vegas Convention and Visitors Authority.

The ASX dividend share pays a dividend yield equivalent to 4% of the pre-tax net tangible assets (NTA). The Bailador share price is trading at a 27% discount to its post-tax NTA and a 34% discount to the pre-tax NTA. The NTA is reported as the underlying value of Bailador’s portfolio of investment stakes, cash, and so on.

Due to the huge NTA discount, Bailador may actually have a current cash yield of 6%, or 8.6% when grossed up for franking credits.

Rural Funds Group (ASX: RFF)

This ASX dividend share is one of my favourite real estate investment trusts (REITs) on the ASX. It owns a large portfolio of farmland across almonds, macadamias, vineyards, cattle and cropping.

The business is currently investing many millions of dollars into new macadamia plantings, which, when completed, can unlock more rental income.

High interest rates are a short-term obstacle to distribution and rental profit growth. But, the business aims to grow its distribution by 4% every year. Rural Funds has grown or maintained its distribution yearly since it started paying distributions in 2014. That’s a pleasing level of stability.

Many Rural Funds’ contracts have rental indexation linked to inflation or a fixed annual increase, plus the occasional market review. This can help offset the ASX dividend share’s higher interest costs and help fund organic distribution growth in the future.

The current Rural Funds distribution yield works out to be 5.8%.

After its assets were recently independently valued, Rural Funds said in its FY24 half-year result that its adjusted net asset value (NAV) was $3.07. The Rural Funds share price closed on Friday at $2.03.

The post 2 cheap ASX dividend shares I’d buy for income appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments and Rural Funds Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bailador Technology Investments. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Bailador Technology Investments. 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 in the red. The benchmark index sank 0.85% to 7,814.4 points.

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

ASX 200 expected to rebound

The Australian share market looks set to rebound on Monday following a relatively positive finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 35 points or 0.45% higher. On Friday in the United States, the Dow Jones was up 0.3% and the S&P 500 rose 0.1%, but the Nasdaq fell 0.1%.

Oil prices rise

ASX 200 energy shares Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent start to the week after oil prices rose on Friday. According to Bloomberg, the WTI crude oil price was up 1.05% to US$80.06 a barrel and the Brent crude oil price was up 0.85% to US$83.98 a barrel. Optimism over improving demand drove oil prices higher last week.

Elders half year results

Elders Ltd (ASX: ELD) shares will be on watch on Monday when the agribusiness company releases its half year results. The market won’t be expecting a strong result from Elders today. A trading update last month revealed that “first half trading for FY24 was significantly below expectations.” Investors will no doubt be hoping that management is able to at least reiterate its full year underlying EBIT guidance of between $120 million and $140 million.

Gold price races higher

ASX 200 gold mining shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a very good start to the week after the gold price raced higher on Friday. According to CNBC, the spot gold price was up 1.45% to US$2,419.8 an ounce. This was driven by Chinese stimulus and US rate cuts bets.

Macquarie Technology downgraded

The Macquarie Technology Group Ltd (ASX: MAQ) share price could be fully valued according to analysts at Goldman Sachs. This morning, the broker has downgraded the data centre operator’s shares to a neutral rating with a trimmed price target of $90.20. Goldman explained: “MAQ has re-rated from 13x to 19x NTM EV/EBITDA over the last 12 months, now valuing MAQ in line with our SOTP and factoring in execution of IC3W (though trading at a stable discount vs NXT). We see MAQ as appropriately valued relative to peers and its earnings growth outlook, and downgrade to Neutral.”

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

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Motley Fool contributor James Mickleboro has positions in Nextdc and 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 recommended Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you want to diversify your portfolio, then having some exposure to the mining sector could be one way to do it.

But which ASX mining stocks could be good options for investors right now?

Let’s take a look at a couple that have been named as best buys by brokers this month. They are as follows:

Regis Resources Ltd (ASX: RRL)

The first ASX mining stock to look at buying is Western Australia-based gold miner Regis Resources.

The team at Bell Potter is feeling very positive about the company’s outlook and sees a lot of value in its shares at current levels. Especially given its all-Australian operations and takeover appeal. It currently has a buy rating and $2.80 price target on its shares. The broker commented:

RRL is an established multi-mine gold producer with all its operating mines located in Western Australia. The Duketon Gold Project (located in the Laverton region 350km north, north-east of Kalgoorlie in WA) is RRL’s flagship project and comprises the Duketon North Operations (DNO) and the Duketon South Operations (DSO) which produce a combined ~300kozpa. As one of the largest ASX listed gold producers, we are attracted to its all- Australian asset portfolio and organic growth options which are unique at this scale. Furthermore, we see key opportunities in the fundamental, medium-term outlook and, in our view, these may also make RRL an appealing corporate target in the current conducive M&A environment.

South32 Ltd (ASX: S32)

Another ASX mining stock that could be a buy according to analysts is South32. It is a diversified miner with operations across a number of future-facing metals. This includes aluminium, copper, nickel, and zinc.

Morgans is a fan of the company due partly to the transformation of its portfolio and favourable commodity prices. It currently has South32 on its best ideas list with an add rating and $4.10 price target. The broker commented:

S32 has transformed its portfolio by divesting South African thermal coal and acquiring an interest in Chile copper, substantially boosting group earnings quality, as well as S32’s risk and ESG profile. Unlike its peers amongst ASX-listed large-cap miners, S32 is not exposed to iron ore. Instead offering a highly diversified portfolio of base metals and metallurgical coal (with most of these metals enjoying solid price strength). We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.

The post 2 of the best ASX mining stocks to buy now appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Top brokers name 3 ASX shares to buy today
• This ASX 200 gold stock can rise 30% and could be a takeover target
• Expert reveals the best and worst months for ASX shares
• 5 things to watch on the ASX 200 on Tuesday

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.