Category: Stock Market

Do you own shares of ASX 200 annuities provider Challenger Ltd (ASX: CGF)? Well, you’re in luck, because today, there’s some cash coming your way. That cash will come in the form of Challenger’s latest dividend, of course.

In the middle of last month, Challenger, like many ASX 200 shares, gave investors a look at its latest earnings report. In this case, it was a fairly pleasing report for shareholders to read through. For the six months ending 31 December 2023, the company reported total assets under management of $117 billion, which represented an 18% increase year on year.

Challenger also delivered a normalised net profit before tax of $290 million, up 16% over the same period in 2022. That helped the company report a statutory profit after tax of $56 million, up 80%.

This all enabled Challenger to declare an interim dividend of 13 cents per share, fully franked, for the half. That was up 8% over the interim dividend of 12 cents per share investors enjoyed this time last year.

So this dividend is obviously the paycheque we’re discussing today.

Unfortunately, if you don’t already own this stock, the ex-dividend date for the payment (20 February) has already passed us by. But if you owned shares before that ex-dividend date, you are indeed eligible for today’s payment.

Today’s interim dividend of 8 cents per share compliments the final dividend of 12 cents per share (also fully franked) that investors enjoyed back in September of last year. It takes Challenger’s annual dividend total to 25 cents per share.

At Challenger’s closing share price (as of yesterday afternoon) of $6.65, this gives the company a dividend yield of 3.76%.

Challenger share price snapshot

This stock has had a moderately positive, if not wildly successful, few months on the share market. The Challenger share price is up 1.84% year to date, as well as up 7.26% over the past 12 months.

At this share price, Challenger has a market capitalisation of $4.59 billion, with a price-to-earnings (P/E) ratio of 27.86.

The post Own Challenger shares? There’s cash coming your way today appeared first on The Motley Fool Australia.

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More reading

• If I buy $8,000 of Challenger shares, how much passive income will I receive in 2024?
• Are Challenger shares becoming a top ASX dividend pick?

Motley Fool contributor Sebastian Bowen 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 Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for ASX tech shares to buy, then it could be worth checking out Chrysos Corporation Ltd (ASX: C79).

In case you’re not familiar with Chrysos, it provides technology solutions to the global mining industry.

Its flagship product is PhotonAssay, which was developed at Australia’s national science agency, CSIRO.

PhotonAssay delivers faster, safer, more accurate, and environmentally-friendly analysis of gold, silver, copper and other elements. The company notes that the technology has rapidly displaced slower, more hazardous and costly processes to become the mining industry’s most innovative and valuable assaying solution.

Last month, the company revealed that its growing popularity with end users helped underpin a sizeable 62% increase in revenue to $19.8 million during the first half of FY 2024.

Why is Chrysos an ASX tech share to buy?

Bell Potter notes that UK-based mining services provider Capital has just released its results and outlook for 2024.

Its subsidiary MSALABS has the largest international network of Chrysos PhotonAssay technology.

According to the note, deployments into MSALABS’s network is on track and the company has reiterated its multi-year expansion strategy, which emphasises PhotonAssay deployments.

Bell Potter highlights that Capital advised that “MSALABS relationship with Chrysos remains strong and will see the deployment of 21 units” in 2024. This compares to its previous guidance for these 21 deployments to be made by 2025.

It sees this as a big positive and appears to believe it supports its view that PhotonAssay is on its way to winning a significant market share. It commented:

We believe C79’s disruptive PhotonAssay technology will command a significant foothold within the large gold assaying market (BPe 25% market penetration by FY30), with current lease agreements providing good near-term deployment visibility. These lease agreements with some of the largest gold miners and international laboratory businesses provide third-party technical and commercial validation for PhotonAssay technology adoption, which should support further industry take-up.

Big returns could be coming

The note reveals that Bell Potter has reaffirmed its buy rating on the ASX tech share with a price target of $8.30.

Based on its current share price of $6.55, this implies potential upside of approximately 27% for investors over the next 12 months.

The post Why Bell Potter thinks this ASX tech share is a top buy appeared first on The Motley Fool Australia.

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More reading

• Buy this ASX All Ords stock for a 15% gain and 9% dividend yield
• 3 Australian shares to buy and hold forever in your ASX portfolio
• 3 ASX dividend shares to buy for a passive income boost
• 5 things to watch on the ASX 200 on Tuesday
• The best ASX shares to invest $500 in right now

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

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It’s always nice to be able to find an ASX All Ords stock that offers both market-beating gains and above-average dividend yields.

The only problem is that they are few and far between on the Australian share market.

But Goldman Sachs thinks it has identified an ASX All Ords stock that could do just this. That is fund manager GQG Partners Inc (ASX: GQG).

What is the broker saying about this ASX All Ords stock?

Goldman notes that GQG Partners has announced plans to acquire minority interests in Avante Capital Partners, Proterra Investment Partners, and Cordillera Investment Partners from Pacific Current Group Ltd (ASX: PAC).

This will create GQG Private Capital Solutions (PCS), which the company believes can become a strategic partner of choice for middle market private capital investment managers and offer compelling investment opportunities for clients.

Goldman is positive on the plan, it commented:

We think this acquisition is consistent with GQG’s strategy and is a capital light approach to gain exposure to private markets (credit and equity) through debt financing. As stated, GQG’s PCS division will provide financing and strategic solutions.

And while the businesses being acquired have been performing mixed, the broker sees reason to be positive. It adds:

Based on company released funds data, these businesses being acquired have shown mixed FUM performance. We do note however that these businesses have a pipeline of new product launches + access to GQG’s global distribution capability and clients. We make no earnings changes as the acquisition is yet to complete.

Big gains and yields

As mentioned above, Goldman hasn’t made any changes to its estimates yet. For now, it is forecasting earnings per share of 12 US cents (18.3 Australian cents) in FY 2024 and 14 US cents (21.3 Australian cents) in FY 2025. This means its shares are changing hands at an estimated 11.3x FY 2024 earnings and under 10x estimated FY 2025 earnings. This is well below average.

As for income, the broker is forecasting unfranked dividends of 12 US cents (18.3 Australian cents) in FY 2024 and 13 US cents (19.8 Australian cents) in FY 2025

So, with this ASX All Ords stock currently trading at $2.08, this will mean dividend yields of 8.8% and 9.5%, respectively, for investors.

Goldman also sees 15.4% upside for GQG’s shares with its buy rating and $2.40 price target. This brings the total potential return on offer with its shares to approximately 24% over the next 12 months.

The post Buy this ASX All Ords stock for a 15% gain and 9% dividend yield appeared first on The Motley Fool Australia.

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More reading

• 2 ASX growth stocks I’d buy for rapidly rising profit
• I think they can! 3 ASX shares that can keep chugging higher
• 3 high-yield ASX dividend shares that pay cash every quarter
• Got $10,000 to invest? How to turn it into monthly income
• Why Cettire, GQG, Mesoblast, and Nine Entertainment shares are falling 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 Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Recommending Australian shares that an ASX investor can buy and reasonably expect to hold forever is no easy task. After all, forever is an awfully long time. Predicting what might happen on the markets tomorrow is difficult enough, let alone what a company might be trading for in five, ten or 20 years.

However, that won’t stop us today. As the legendary Warren Buffett once said, “I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years”.

So with that in mind, let’s talk about three Australian shares that I think are worth buying and holding today for a lifelong investment.

3 Australian shares to buy and hold forever

Woolworths Group Ltd (ASX: WOW)

First up is a company we’d all know well, I’d wager. Woolworths is one of the most prominent businesses in Australia. It boasts the largest network of supermarkets and grocers in the country and also owns the Big W department store chain.

My investing thesis for Woolworths is simple. More Australians choose Woolworths to shop for life’s essentials than any other consumer staples company. I don’t see our need to continually eat, drink and stock our households going away any time soon.

As such, I think this high-quality business is an Australian share you can comfortably hold forever. A recent share price dip doesn’t hurt either.

JB Hi-Fi Ltd (ASX: JBH)

Next up we have another popular shopping destination in JB Hi-Fi. This ASX 200 retail stock has proven to be something of a weathervane in recent decades. If you visited a JB store 30 years ago, you’d probably find it stocked with the latest hi-fi equipment.

But JB has proven it is highly adept at moving with the times. Today, it stocks far more consumer electronics, phones, computers and home appliances than hi-fi equipment (although the vinyl records aisle is still popular in most JB stores).

This Australian share has proven that it has what it takes to survive and thrive in today’s modern economy. I fully expect shoppers to flock to JB for decades to come.

iShares S&P 500 ETF (ASX: IVV)

Finally, we have an exchange-traded fund (ETF). The S&P 500 Index is the most widely-tracked index in the world It consists of the largest 500 shares listed on the US market. That’s everything from Apple, Netflix and Amazon to Adobe, Ford and PepsiCo.

Although the iShares S&P 500 ETF is an index fund with no exposure to Australian shares, I still think it’s a great investment for any ASX investor. The S&P 500 simply holds most of the best companies in the world. It has delivered meaningful returns over many decades. Even Warren Buffett has recommended it as an investment suitable for almost anyone.

Buffett has advised all investors to ‘never bet against America’, and so this all-American ETF is the final investment I envisage will prove to be a lucrative share to buy and hold forever.

The post 3 Australian shares to buy and hold forever in your ASX portfolio appeared first on The Motley Fool Australia.

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More reading

• Better buy: Coles or Woolworths stock?
• Can you buy Nvidia shares on the ASX?
• 3 ASX shares you can confidently invest $500 in right now
• Top ASX passive income shares to buy in March 2024
• 1 ASX 200 dividend stock down 13% in 2024 to buy right now

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Adobe, Amazon, Apple, Berkshire Hathaway, and PepsiCo. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Amazon, Apple, Berkshire Hathaway, Netflix, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Adobe, Amazon, Apple, Berkshire Hathaway, Jb Hi-Fi, Netflix, 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.

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Thankfully for income investors, there are plenty of ASX dividend shares to choose from on the Australian share market.

But which ones could be buys this week?

Well, listed below there are three that analysts have rated as buys. Here’s what sort of yields could be on offer with these shares:

Endeavour Group Ltd (ASX: EDV)

The first ASX dividend share for income investors to look at this week is Endeavour. It is the drinks giant behind the leading BWS and Dan Murphy’s brands, as well as a large network of hotels.

It is the company’s “clear market leading position” and attractive valuation that Goldman Sachs likes. It currently has a buy rating and $6.20 price target on the company’s shares.

As for dividends, the broker is forecasting fully franked dividends of approximately 22 cents per share in FY 2024 and FY 2025. Based on the current Endeavour share price of $5.31, this will mean dividend yields of 4.1% for both years.

Stockland Corporation Ltd (ASX: SGP)

Another ASX dividend share that could be a buy is Stockland. It is known as Australia’s largest community creator, delivering a range of masterplanned communities and medium density housing in growth areas across the country.

Citi likes the company and believes it is well-placed to pay big dividends. It has a buy rating and $5.00 price target on its shares.

In respect to income, Citi is expecting 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 $4.80, this will mean yields of 5.45% and 5.5% yields, respectively.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend share that could be a buy this week is Universal Store. It is the youth fashion retailer behind the eponymous Universal Store brands, as well as the Perfect Stranger and Thrills brands.

The team at Bell Potter is very positive on the company. So much so, it recently put a buy rating and $5.65 price target on its shares.

The broker believes the company is well-placed to pay fully franked dividends per share of 24 cents in FY 2024 and then 31 cents in FY 2025. Based on the current Universal Store share price of $5.05, this will mean attractive yields of 4.75% and 6.1%, respectively.

The post 3 ASX dividend shares to buy for a passive income boost appeared first on The Motley Fool Australia.

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More reading

• Why bond yields are bruising ASX property shares on Monday
• 3 highly-rated ASX dividend shares for income investors to buy next week
• Here’s how the ASX 200 market sectors stacked up last week
• How are ASX REITs smashing 52-week highs despite today’s market meltdown?
• Buy BHP and these ASX dividend shares

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Endeavour Group and Universal Store. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with the smallest of gains. The benchmark index rose slightly to 7,675.8 points.

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

ASX 200 expected to edge higher

The Australian share market is expected to edge higher on Tuesday following a positive start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 2 points higher. In late trade in the United States, the Dow Jones is up 0.35%, the S&P 500 is up 0.8%, and the NASDAQ is 1% higher.

RBA meeting

The Reserve Bank of Australia will be meeting today to decide on interest rates. Unfortunately for homeowners and borrowers, the central bank is largely expected to keep rates on hold at this meeting and through to at least September. The ASX 30 Day Interbank Cash Rate Futures March 2024 contract is currently trading at 95.685, which is indicating only a 5% expectation of an interest rate decrease to 4.10% at today’s meeting.

Oil prices surge

ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) could have a strong session after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.45% to US$83.03 a barrel and the Brent crude oil price is up 2.1% to US$87.13 a barrel. Oil prices stormed higher on news of lower Iraq and Saudi exports.

New Hope results

The New Hope Corporation Ltd (ASX: NHC) share price will be on watch today when the coal miner releases its half-year results. The coal miner has already advised that it expects to report EBITDA of $425 million for the half. All eyes will be on its interim dividend, which is likely to be down approximately 50% on the prior corresponding period. This is due largely to weaker coal prices.

Gold price rises

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent session after the gold price edged higher on Monday. According to CNBC, the spot gold price is up 0.15% to US$2,164.4 an ounce. Traders were buying gold ahead of a number of central bank meetings.

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

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More reading

• Here are the top 10 ASX 200 shares today
• 2 ASX 200 shares to buy that are ‘catalyst rich’
• Why is the ASX 200 retreating from this month’s all-time highs?
• 5 things to watch on the ASX 200 on Monday
• Here’s how the ASX 200 market sectors stacked up last 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 no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Many Australians have the impression that investing in stocks is only for rich people. 

But that cannot be further from the truth.

If you have just $500 you could make a pretty useful start to a portfolio.

I have taken the liberty of picking out the best ASX shares that could be ideal purchases for a few hundred dollars.

And for diversification, they’re all a bit different to each other.

One is a reliable growth exchange-traded fund (ETF), another is an explosive pharmaceutical stock that’s in a dip currently, and the third is a cloud computing and artificial intelligence (AI) play that’s already soared in recent times.

The best ASX shares for diversification

Regardless of how much you have to spend, I am a big fan of Vaneck Morningstar Wide Moat Etf (ASX: MOAT) as an excellent starter stock for a new portfolio.

This ETF tracks the constituents of the Morningstar Wide Moat Focus NR AUD Index, which are companies that are judged to have the biggest competitive advantages over their rivals and potential rivals.

Morningstar and many other investors call this concept an “economic moat“.

Looking at the current constituent list, there are some familiar brands such as Walt Disney Co (NYSE: DIS), Alphabet Inc (NASDAQ: GOOGL) and Nike Inc (NYSE: NKE).

Another benefit of the Wide Moat ETF is that the US stocks provide diversification from your other ASX holdings.

Chuck $500 on this one.

The ASX stock with explosive potential

Neuren Pharmaceuticals Ltd (ASX: NEU) was the best performer in the S&P/ASX 200 Index (ASX: XJO) last year with a spectacular 214% climb.

This year hasn’t been as kind though, with the healthcare company taking a 22.4% dive so far in 2024.

“A short report targeting Neuren’s US partner, Acadia Pharmaceuticals Inc (NASDAQ: ACAD), combined with unexpected holiday-period seasonality in sales for its flagship drug, Daybue, shook investor confidence,” Elvest analysts said in a memo to clients.

They are still confident in the Melbourne outfit’s long-term outlook.

“Our thesis for Neuren Pharmaceuticals is unchanged. New CY24 Daybue sales guidance of US$370 to US$420 million (+120%) underpins another solid year of royalty and milestone revenue for Neuren.”

All six analysts currently surveyed on CMC Invest reckon Neuren is a buy.

The best ASX shares to invest in artificial intelligence

While the ASX is short on companies that directly produce generative artificial intelligence, Nextdc Ltd (ASX: NXT) is going gangbusters.

As a provider of data centres, the company is enjoying high demand from the intensive resources required for AI and cloud computing generally.

To celebrate February 29, Moomoo market strategist Jessica Amir declared NextDC as one of the stocks she would buy and hold until the next leap year.

The business is at a “tipping point”, she said.

“Positioned to capture [and] generate AI opportunities… Market is telling you that it’s exciting about its future and that it’s essential in AI.

“Half of its revenue is from NSW and ACT — huge potential to expanding capacity and geographically — and it’s doing that.”

The post The best ASX shares to invest $500 in right now appeared first on The Motley Fool Australia.

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More reading

• 2 ASX ETFs that have made investors rich
• $20,000 invested in these ASX 200 shares 10 years ago is worth how much?
• Here are the top 10 ASX 200 shares today
• 5 ASX ETFs to buy and hold for 10 years
• 2 ASX shares I want to buy for the artificial intelligence (AI) revolution

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Nike, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $47.50 calls on Nike. The Motley Fool Australia has recommended Alphabet, Nike, VanEck Morningstar Wide Moat ETF, and Walt Disney. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A2 Milk Company Ltd (ASX: A2M) shares have been on a volatile journey over the last year. The share price is up 36% in 2024, but down 10% over the past 12 months.

A fund manager has picked out the dairy stock as an opportunity because of a potential catalyst that could send A2 Milk shares higher.

No one can say for sure when a share price is going to go up, but certain events can excite investors. Let’s look at why we should pay attention to this business that sells milk products that only contain the A2 protein type.

Exciting catalyst for A2 Milk shares

The investment team from Wilson Asset Management (WAM) have picked A2 Milk for the WAM Active Limited (ASX: WAA) portfolio.

Here’s one of the main reasons why they like the stock:

We believe that the launch of its new products in the second half of FY24, which include a2 Gentle Gold, two new English label infant formula products, and fortified milk powder products, positions the company to continue to deliver revenue growth.

WAM pointed out that A2 Milk recently reported an FY24 half-year result which beat market expectations.

The A2 Milk HY24 earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 5%, with an increased market share in the Chinese infant milk formula market.

A2 Milk managed to achieve that despite a double-digit decline in the Chinese birth rate.

The WAM investment team said they were pleased to see A2 Milk decided to increase its FY24 revenue growth guidance from low to low-to-mid single-digit percent compared to the prior year.

Single-digit revenue growth may not sound exciting, but a share price usually includes a number of underlying assumptions. If the revenue achieved is better than expected, then it can be a catalyst to send the A2 Milk share price higher.

Valuation

Based on the current A2 Milk share price and using profit projections on Commsec, it’s valued at 26 times FY24 estimated earnings and 19 times FY26’s estimated earnings.

Time will tell if WAM is right to be excited about the dairy company, or whether things are going to go sour and other ASX shares would be better picks.

The post This new catalyst could make A2 Milk shares a buy appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares 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 recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re a growth investor and looking for new portfolio additions this week, then it could be worth checking out the three shares named below.

That’s because they have recently been tipped as buys by analysts.

Here’s why they are feeling bullish about these ASX 200 growth shares:

Life360 Inc (ASX: 360)

Goldman Sachs is a fan of this location technology company and sees it as a top option for investors even after rising strongly this year. It said:

360’s re-rate is only beginning, in our view, as it delivers solid subscription and EBITDA growth from the core business while opening up significant upside optionality via advertising monetisation.

FY24E EBITDA guidance appears conservative relative to the operating leverage demonstrated in FY23A and provides visibility to >50% growth in both FY24/25E.

Goldman currently has a buy rating and $14.20 price target on the ASX 200 growth share.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX 200 growth share that analysts are positive on is fast fashion jewellery retailer Lovisa.

Morgans was very pleased with the company’s performance during the first half, noting that its result came in ahead of expectations. The good news is that it believes there’s more to come thanks to its global expansion. It said:

The 1H24 result surpassed expectations, mainly due to strong gross margins, which were supported by favourable changes to the price architecture. We have increased our EBIT estimate for the current year by 4%, but, for us, it’s not about the near-term. The investor should focus on what this business could develop into in the years ahead. We reiterate our Add rating and increase our target price.

Morgans has an add rating and $35.00 price target on its shares.

TechnologyOne Ltd (ASX: TNE)

Finally, this enterprise software provider could also be a top ASX 200 growth share to buy according to Goldman Sachs.

The broker is expecting TechnologyOne to achieve its annual recurring revenue (ARR) target and deliver mid to high teen earnings per share growth through to at least FY 2026. It explains:

In our view, the company is well placed to meet its A$500mn FY26 ARR target through a combination of SaaS flip uplift, net expansion and new customer growth. We see margin expansion resuming from FY24E onwards, which in combination with robust revenue growth should drive a mid-high teens EPS CAGR to FY26E, providing strong earnings visibility. TNE’s share price has historically been driven by its strong rate of compound earnings growth underpinned by its leading market position, high R&D investment and defensive public sector end markets.

Goldman has a buy rating and $18.05 price target on its shares.

The post Why these ASX 200 growth shares could be top buys now appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why Bannerman Energy, Cettire, TechnologyOne, and Zip shares are charging higher
• 2 ASX growth stocks I’d buy for rapidly rising profit
• Guess which ASX 200 tech stock has just been upgraded
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has positions in Life360 and Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Life360, Lovisa, and Technology One. The Motley Fool Australia has recommended Lovisa and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The best-performing stock on the S&P/ASX 300 Index (ASX: XKO) over 2024 to date might surprise you. By the headline, you probably already know the answer, but just for the record, it is none other than buy now, pay later (BNPL) share Zip Co Ltd (ASX: ZIP).

This might come as a surprise to some investors because it wasn’t too long ago that Zip shares were something of a pariah on the ASX. Remember, this is a company that fell from over $14.50 a share in early 2021 to just 26 cents a share by October last year. That’s a wealth-destroying drop of 98.2%.

Yet investors who have bravely held on during this rollercoaster ride (or been better, bought in October) have enjoyed something of a reprieve in recent months.

Between 6 October and 31 December, Zip shares hopped on a rocket ship, gaining a whopping 146%. Since the beginning of 2024, we’ve seen another 120.97% added to the Zip share price.

That stonking gain is enough to crown Zip the best-performing ASX 300 share of the year so far.

What’s gone so right for Zip shares in 2024?

Well, Zip’s most recent success seems to be a result of two events in particular.

Firstly, Zip delivered a fairly impressive quarterly update back in January. The BNPL stock told investors that its transaction volumes rose 8.5% over the second quarter of FY2024. Revenues also rose by an even more luminous 26.1% to $225.6 million for the quarter.

Zip backed this up with its half-year earnings results in February too. The company reported a 28.9% rise in revenues for the six months to 31 December, as well as a cash gross profit of $176.2 million, which was up 45.9%.

Secondly, Zip’s January quarterly update prompted some rumours over February that Zip might be becoming an appealing target for a takeover. As we covered at the time, “‘multiple sources’ have suggested at least one possible suitor is eyeing up Zip, and it is ‘gaining interest’”.

We haven’t heard any more developments on that front, but this did give Zip shares a meaningful boost, and we are still seeing the momentum from this in the company’s stock price today.

So a wonderful start to 2024 for Zip shares. Let’s see what this BNPL share does over the rest of 2024.

The post Why is the Zip share price the best-performing ASX 300 stock so far this year? appeared first on The Motley Fool Australia.

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More reading

• Why Bannerman Energy, Cettire, TechnologyOne, and Zip shares are charging higher
• If I’d put $5,000 into Zip shares on 9 October, here’s what I’d have now!
• Up 288% in 6 months, Zip share price tipped for more outsized gains
• Why Accent, Liontown, PSC Insurance, and Zip shares are charging higher today
• 4 ASX All Ords shares going gangbusters on Tuesday

Motley Fool contributor Sebastian Bowen 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 Zip Co. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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