Category: Stock Market

Was the Vanguard MSCI Index International Shares ETF (ASX: VGS) worth owning in April? Good question.

April was a fairly solid month for ASX shares. Over the month just passed, the S&P/ASX 200 Index (ASX: XJO) rose by 1.8%. But the VGS ETF isn’t an ASX index fund. Rather, it’s a truly massive exchange-traded fund (ETF) that covers more than 1,500 different companies, hailing from more than 20 different advanced economies from around the world.

Those include Canada, the United Kingdom, France, Japan, Singapore, Switzerland, and Israel.

But by far the most dominant market in this ETF is the United States. A whopping 69.4% of this ETF’s portfolio is weighted towards US shares. That includes every share of this ETF’s top 10 holdings, which are dominated by the US tech giants like Apple, Microsoft, Amazon, and Tesla.

Thus, it doesn’t really matter what the ASX did in April when we discuss this ETF.

Let’s get into it.

How did VGS units fare on the ASX over April?

VGS units began April at a price of $98.70 each. But by the end of the month, those units were going for $101.86 each – a rise worth a healthy 3.2%. Somewhat ironically, the very next trading day (1 May) saw this fund clock a new 52-week high of $102.55:

3.2% is a solid monthly return for any investment. But the fact that the ASX 200 ‘only’ gave investors a 1.8% gain means the VGS ETF shone especially bright in April. So yes, we can conclude that it was definitely worth owning the Vanguard MSCI International Shares ETF last month.

Vanguard International Shares ETF snapshot

The VGS ETF has a long and productive history on the ASX, being one of the most popular ETFs on the market that covers international shares. As of 30 April, this fund has returned an average of 12.78% per annum over the past three years, and 11.2% per annum over the past five.

Since its inception in late 2014, it has averaged 11.78% per annum. This ETF charges a management fee of 0.18% per annum (or $18 a year for every $10,000 invested).

The post Was the Vanguard MSCI Index International Shares ETF (VGS) worth owning in April? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 of the best ASX ETFs for global investing
• 3 top ASX ETFs hitting new 52-week highs on Friday
• I think this underrated reason is key to why ETFs can be great investments
• 3 reasons why the Vanguard MSCI Index International Shares ETF (VGS) could be an excellent investment for beginners
• 3 quality ASX ETFs for investors to buy for the long term

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 Amazon.com, Apple, Microsoft, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon.com, Apple, Microsoft, Tesla, and Vanguard Msci Index International Shares ETF. The Motley Fool Australia has recommended Amazon.com, Apple, 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.

from The Motley Fool Australia https://ift.tt/Yx6UOTk

The Bank of Queensland Ltd (ASX: BOQ) share price didn’t have a good time in April 2023, falling by 10.6%. This was significantly worse than the performance of the S&P/ASX 200 Index (ASX: XJO) which climbed by 1.8%.

It was an eventful month for the ASX bank share which reported its FY23 half-year result for the six months to 28 February 2023.

Let’s look at some of the numbers, which didn’t impress investors.

Earnings recap

It said that cash earnings after tax declined by 4% to $256 million, while cash earnings per share (EPS) declined 5% to 39 cents.

The net interest margin (NIM) only saw a 4 basis point (0.04%) increase compared to the second half of FY22, despite all of the increases in the central bank interest rates.

Statutory net profit after tax (NPAT) fell 98% to $4 million after two large one-off items – a $60 million provision for its integrated risk program and a $200 million impairment of goodwill.

One of the main things that could have affected the Bank of Queensland share price was that it said the benefit of margin tailwinds was “materially reduced” over the last two months of the half, with “heightened mortgage and deposit competition”.

There was also a 7% increase in operating expenses year over year, but the bank has a ‘simplification program’ which is intended to address the expense growth.

With the fall in profit, the business decided to cut the interim dividend per share by 9% to 20 cents per share.

Is the future looking positive for the BOQ share price?

The ASX bank share provided a number of interesting comments about the outlook.

BOQ said that the Australian economy ended the half “reasonably well placed, with low unemployment, stable growth in order books and strong terms of trade.”

But, the bank also said that economic growth is moderating due to elevated inflation and higher interest rates. Further slowing is expected in the second half.

Bank of Queensland is expecting to see heightened mortgage competition continuing, as well as escalated deposit competition, with margin compression “anticipated”. In other words, margins could suffer in the second half of the financial year.

The bank said that it’s looking to optimise revenue, portfolio quality and returns.

Bank of Queensland share price valuation

Using the estimates on Commsec, the BOQ share price is priced at less than 9 times FY23’s projected earnings.

The post The Bank of Queensland share price crumbled 11% in April. Here’s why appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Bank of Queensland share price dips following more losses for US regional banks
• Why did the Bank of Queensland share price just hit a new 52-week low?
• Bought $2,000 of Bank of Queensland shares five years ago? If so, here’s how much dividend income you’ve earned
• Lowest ASX bank yield: Are CBA shares still worth it?
• Are Bank of Queensland shares a buy following the latest results?

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.

from The Motley Fool Australia https://ift.tt/cp7PAyx

ASX rare earths share Arafura Rare Earths Ltd (ASX: ARU) has fallen in the last month, so is now the time to pounce?

Arafura shares have slid 18% in a month and closed on Thursday at 40 cents apiece. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) has dropped 3% in the past month.

Let’s check the outlook for this ASX rare earths share.

What’s ahead for this ASX rare earths share?

Arafura Rare Earths is developing the Nolans neodymium and praseodymium (NdPr) project in the Northern Territory, 135km from Alice Springs.

Analysts at Bell Potter in April retained a “speculative buy” rating on Arafura with a 72 cents price target. This implies an upside of about 78% based on the latest share price.

This followed news Arafura had signed a binding offtake agreement with Siemens Gamesa Renewable Energy for its Nolans production.

Bell Potter analysts believe “this is a milestone” and supports the company’s final investment decision on the project.

Under the agreement, Arafura would supply up to 400 tonnes per annum (tpa) of neodymium and praseodymium (NdPr) metal.

Offtake volumes would start at 200 tpa in 2026 and then lift to 360tpa in 2027 and 400 tpa in the remaining three years.  

Commenting on the news, Arafura managing director Gavin Lockyer said:

We are delighted to have concluded negotiations for our second offtake agreement. Siemens Gamesa is the world’s leading manufacturer of offshore wind turbines, and this agreement compliments our strategy to create supply diversification into the renewable & E-mobility sectors.

In late April, Arafura presented quarterly results to the market. The company had $153.4 million of cash reserves as of 31 March 2023.

However, the market price of NdPr oxide fell 26% to US$76 per kg during the quarter due to “demand weakness for magnets in China”. At the time, the company said:

China remains the largest user of sintered magnets for applications such as electric vehicles (EVs), wind generation technology, consumer electronics and appliances, and demand in these sectors is experiencing lower manufacturing output since the beginning of the COVID-19 pandemic in 2020.

Share price snapshot

Arafura shares have lifted 14% in the past 12 months.

This ASX rare earths share has a market capitalisation of about $856 million based on the latest share price.

The post Down 18% in a month, is ASX rare earths share Arafura now a bargain buy? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Top brokers name 3 ASX shares to buy today
• Why Arafura, Core Lithium, Mayne Pharma, and Newcrest shares are storming higher
• Here’s why the Arafura share price is racing 11% higher
• Why has the Arafura share price just been halted?

Motley Fool contributor Monica O’Shea 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.

from The Motley Fool Australia https://ift.tt/o3qzStY

Well, it’s been another month, and another ASX notice confirming fund outflows for Magellan Financial Group Ltd (ASX: MFG). 

Yesterday, we got the news that Magellan’s funds under management (FUM) continued to fall over April. The embattled fund manager reported a total FUM of $42.7 billion as of 28 April. That was down by $500 million from the $43.2 billion that the company recorded on 31 March.

This latest fall is just another notch down the ratchet for Magellan. It was only three years ago that this company was flying high, with more than $100 billion in FUM under its belt. But a devastating series of events has led to a massive loss in confidence from both investors and shareholders since 2020.

What went wrong with Magellan shares?

There was the issue of performance to start with. Magellan, as a fund manager, needs to show that it is a safe and lucrative place for clients to house their investments. But Magellan’s flagship funds have failed to consistently deliver market-beating returns for a long period of time now (more on that later).

This started before 2020, to be sure. But a series of unfortunate investments over the COVID period saw investors rapidly lose confidence in what used to be Magellan’s star stock picker Hamish Douglass.

Speaking of Douglass, and we have the second problem Magellan has had to deal with in recent years. Douglass co-founded Magellan, and for many years was the company’s investing talisman.

But Douglass dramatically walked away from the company in 2022 amid revelations regarding his personal life. He promised not to sell any of his large stake in the company, before promptly offloading large volumes of shares.   

At the same time, Magellan suffered the loss of several sizeable investing mandates from institutional clients.

All of these events culminated in Magellan sliding from more than $65 a share back in early 2020 to a low of $7.52 last month. At yesterday’s closing share price of $8.30, the company has bounced back a little. But Magellan is still a long, long way from its glory days:

So this begs the question: can Magellan ever stem the seemingly ceaseless month-on-month FUM losses?

Can this ASX 200 fund manager get its FUM back?

That’s a hard question to answer since there were so many issues that led to the company’s present predicament to start with.

But arguably, the best thing Magellan can do to stop the bleeding would be to boost the performance its investors currently enjoy.

Magellan’s flagship Global Fund has seen something of a turnaround over the past 12 months. As of 30 April, its unlisted iteration had returned 11.75% over the preceding year, outperforming its benchmark by 0.8%. But its longer-term performance still remains patchy.

Over three years, it has averaged 4.87% per annum, an underperformance of 7.88%. Over five years, it is sitting at 9.76% per annum, again undershooting the benchmark by 1.29%. And over the past decade, the returns are sitting at 12.8% per annum, missing the benchmark by 0.93%.

Investors typically like to see significant market-beating returns when they are asked to pay 1.35% per annum in management fees.

So if Magellan can keep its more recent performance up, it might just have a shot at clawing back some FUM over time. And perhaps some of the Magellan share price. But we’ll have to wait and see how it fares.

 

The post Can Magellan ever stem the FUM outflows? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Why CogState, Jumbo, Magellan, and St Barbara shares are rising today
• 12 ASX dividend shares with yields over 10%. Are they too good to be true?
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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 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.

from The Motley Fool Australia https://ift.tt/AG3o19g

There are a lot of growth shares for investors to choose from on the ASX.

To narrow things down, I have picked out three ASX growth shares that have recently been tipped as buys with major upside potential.

Here’s what you need to know:

Pilbara Minerals Ltd (ASX: PLS)

Pilbara Minerals shares could be a top option for growth investors. This is because the lithium giant has been tipped to generate big returns from current levels by analysts at Macquarie. This is due to its belief that the miner is well-placed to generate huge free cash flow from its expanding operations in the coming years.

Macquarie currently has an outperform rating and $7.70 price target on Pilbara Minerals’ shares. This implies potential upside of 82% for investors.

Readytech Holdings Ltd (ASX: RDY)

Another ASX growth share to buy could be Readytech. It is a leading provider of mission-critical solutions to the education, employment services, workforce management, government and justice sectors. Goldman Sachs is bullish on the company and believes its shares are cheap considering its growth potential. It highlights that “RDY is now trading at ~17x FY24 P/E while delivering ~20% FY23-25E EBITDA CAGR.” The latter is expected to be “supported by its defensive public sector end-markets (~3/4 of earnings) and mission-critical software systems.”

Goldman has a buy rating and $4.40 price target on its shares. This suggests potential upside of 42% from current levels.

Temple & Webster Group Ltd (ASX: TPW)

A final ASX growth share that could be a buy is Temple & Webster. It is Australia’s leading pureplay online furniture and homewares retailer. Goldman Sachs is also very positive on the company and believes it is well-placed for strong growth over the next decade. This is due to its belief that the company “is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry.”

Goldman has a buy rating and $6.10 price target on its shares. This would mean a return of almost 60% over the next 12 months.

The post Buy Pilbara Minerals and these ASX growth shares for 40%+ returns: analysts appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• What’s the outlook for the Pilbara Minerals share price in May?
• 2 ASX 200 lithium shares to buy for $100 monthly passive income each
• 2 ASX growth shares I’d buy today before it’s too late
• 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 ReadyTech and Temple & Webster Group. The Motley Fool Australia has recommended ReadyTech and Temple & Webster Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/R104UFs

Diversification is one of the simplest and most effective risk reduction tools an everyday investor can hang on their belt. And it needn’t take hours of stock picking to employ. Some S&P/ASX 200 Index (ASX: XJO) shares offer a degree of built-in diversification – Wesfarmers Ltd (ASX: WES) being one.

However, I wouldn’t rely on the stock to diversify my portfolio if it was already retail-heavy.

Wesfarmers is a diversified ASX 200 share, but…

Wesfarmers is, of course, just one company. However, its multitude of businesses surpass sector borders, thereby providing some built-in diversification.

Most Aussies will know the ASX 200 share for its headline retail brand, Bunnings. They’ll also likely be familiar with discount retailer Kmart, its sibling Target, and Officeworks.

But there’s far more to the company than meets the eye of most consumers.

Wesfarmers also boasts a chemical, energy, and fertiliser segment, supplying products including ammonia, phosphate, nitrogen, and potassium-based fertilisers, and polyvinyl chloride resins.

The company is also involved in the mining sector.

It might surprise the uninitiated to learn that Wesfarmers has a 50% stake in the Mt Holland lithium mine. It also owns Western Australia’s only manufacturer of sodium cyanide – used by miners to extract gold.

To the health sector, Wesfarmers has recently branched out into pharmacies, health, and beauty. It snapped up the owner of Priceline in a high-profile bidding war involving Woolworths Group Ltd (ASX: WOW) last year. It’s now got its eye on another acquisition in the space – listed aesthetics clinic operator Silk Laser Australia Ltd (ASX: SLA).

Why I wouldn’t turn to the ASX 200 stock for diversification

Diversifying your portfolio means spreading your investments out over various companies, sectors, and asset classes to protect against isolated downturns and make the most of single-sector or asset-class swings.  

In similar steed, Wesfarmers may find its overall earnings protected if one – or a handful – of its businesses suffer a rough patch. However, not all of the conglomerate’s brands can offer equal protection.

Of the $22.6 billion of revenue the company brought in last half, $9.8 billion came from Bunnings. Another $5.7 billion came from Kmart and Target.

Thus, Wesfarmers is still, for the most part, an ASX 200 retail share.

For that reason, I doubt adding it to an already retail-heavy portfolio would be a worthwhile diversification move.

Though, I might look into the company if my portfolio were looking a little light in the consumer discretionary department.

The post Is Wesfarmers a diversified ASX 200 stock? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Could Wesfarmers shares get a boost from further acquisitions?
• Dalio says US and China ‘on brink of war’. Which ASX shares could be impacted?
• 6 excellent ASX 200 dividend shares that aren’t banks or miners
• Why did the Wesfarmers share price perform so well in April?
• Another 52-week high: Are Wesfarmers shares stretched, or could they be a buy?

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

from The Motley Fool Australia https://ift.tt/wLhZgrd

The ANZ Group Holdings Ltd (ASX: ANZ) share price will be one to watch closely today.

That’s because this morning it has become the latest big four bank to release its half-year results.

ANZ share price on watch amid record half-year cash earnings

• Statutory profit after tax down 1% from the prior half to $3,547 million
• First-half cash earnings from continuing operations up 12% to a record of $3,821 million
• CET1 ratio up 89 basis points to 13.2%
• Net interest margin (NIM) up 7 basis points to 1.75%
• Fully franked interim dividend up 9.5% to 81 cents per share

What happened during the half?

For the six months ended 31 March, ANZ reported record first-half cash earnings of $3,821 million, up 12% on the second half of FY 2022.

Pleasingly, unlike with National Australia Bank Ltd (ASX: NAB) on Thursday, this result has come in ahead of the consensus estimate. The market was expecting cash earnings of $3,769 million for the half.

ANZ CEO, Shayne Elliott, revealed that all four dividends contributed to its earnings growth. He said:

This was a strong financial performance in which all four divisions made a material contribution. The record result was driven by solid revenue growth across the board and the benefits of having a well-diversified business. It was also a direct outcome of our deliberate strategy to simplify, reshape and de-risk the bank, which has allowed us to replace revenue following the disposal of non-core assets.

Elliott also highlighted its home loans growing faster than the market, its record half-year result from the institutional business, an improvement in New Zealand, and a particularly strong performance from the Australia Commercial division. In respect to the latter, the CEO said:

Australia Commercial was a strong contributor to Group revenue, generating the highest return on equity of our divisions and delivering revenue growth of 30%5 compared with the prior comparable period.

In light of this solid earnings growth, the ANZ board elected to increase its fully franked interim dividend by 9.5% to 81 cents per share. This was ahead of the 80 cents per share that Goldman Sachs was forecasting.

Outlook

One thing that could potentially hold back the ANZ share price was management’s outlook commentary. Elliott warned that the second half will be harder than the first due to “intense” competition in retail banking. He said:

The next six months will be more difficult than the last. Competition in retail banking is as intense as it has ever been, both in Australia and New Zealand. We understand that sustained higher inflation and interest rates create further challenges for some households and businesses across the economy. While the number of ANZ customers in difficulty remains low, we stand ready to help in these potentially challenging times.

We enter the next half with a business structure that brings the benefits of geographic and product diversification. We have a robust capital position, credit loss provisions higher than any other time pre-COVID, a strong and diverse deposit base and a track-record of execution. We are seeing continued momentum and high employee engagement across all four divisions, each with a clear strategy and a funded roadmap for growth.

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

The post ANZ share price on watch after record result beats expectations appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Friday
• 4 reasons to buy ASX 200 banks stocks right now
• 3 ASX 200 bank shares to go ‘long and bullish’ on right now
• Why did ANZ shares smash the other ASX 200 banks in April
• What’s happening with ASX 200 banks today as First Republic teeters on the brink of collapse?

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.

from The Motley Fool Australia https://ift.tt/la4ACfH

If you’re looking for some new ASX 300 stocks to buy, then you may want to check out the three listed below that Goldman Sachs has just named as buys.

Here’s why the broker is bullish on them:

Jumbo Interactive Ltd (ASX: JIN)

This online lottery ticket seller could be an ASX 300 share to buy according to Goldman. It has just slapped a buy rating and $16.10 price target on its shares.

Although Goldman wasn’t blown away by the company’s performance during the third quarter, it was pleased with its plan to increase prices. It is expecting this to fall to the bottom line and boost its earnings. The broker explained:

While the update for FY23 was negative in view of the ongoing weakness in the jackpot games, the proposed portfolio pricing changes are expected to have a positive impact on JIN’s earnings outlook.

JIN expects to increase Powerball prices by a further A¢10 and all other games by A¢5 from late May when TLC implements the price increase for Powerball. These price increases are largely likely to fall directly to the bottom line given no major additional costs.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

Another ASX 300 stock that the broker is positive on is media company Nine. Goldman has a buy rating and $2.40 price target on its shares.

Its analysts are positive on Nine due to their belief that the company is well-placed to offset tough trading conditions in the advertising market. It explains:

We are Buy rated on NEC and are positive on the outlook for the company, even with increasing macro uncertainty, seeing NEC to be well placed to offset ad market declines with its high-quality suite of digital assets (incl. Stan, BVOD and Domain), with strong cost performance in prior market downturns, and an attractive valuation entry point given recent share price weakness.

Super Retail Group Ltd (ASX: SUL)

A third ASX 300 stock that Goldman Sachs has just rated as a buy is this diversified retailer. In response to its third-quarter update, the broker has retained its buy rating and lifted its price target to $14.90.

Goldman is positive on Super Retail due largely to its loyalty program, which it feels is a meaningful competitive advantage. It said:

We believe that the company’s positive trading update continues to display resilience that is built upon its competitive advantage of high loyalty (~10m active members accounting for >70% of sales) and this will be further bolstered in 2H23 as the company launches the Rebel loyalty program and continues to build personalisation capabilities.

The post 3 ASX 300 stocks Goldman Sachs has just put buy ratings on appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why CogState, Jumbo, Magellan, and St Barbara shares are rising today
• Why Genesis Minerals, NAB, oOh!Media, and Super Retail shares are sinking today
• Brokers say buy these ASX dividend stocks for their big fully franked yields
• Why Flight Centre, Jumbo, Pilbara Minerals, and Ramelius shares are charging higher
• Why Citi says these ASX 200 dividend shares are buys

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

from The Motley Fool Australia https://ift.tt/DsJTvXf

It’s been a relatively tough week for Telstra Group Ltd (ASX: TLS) shares so far. Telstra closed out last week at $4.38 a share, before building on that during Monday’s trading with a new 52-week high of $4.40.

But the rest of the week has told a different story. Tuesday’s trading saw the Telstra share price lose a nasty 2.28%. The ASX 200 telco has recovered somewhat over Wednesday and Thursday’s sessions and closed trading yesterday at $4.33.

But the hard numbers don’t lie – Telstra has gone backwards this week.

This is quite a change of pace for Telstra. The company has had a strong year so far, almost tripling the returns of the S&P/ASX 200 Index (ASX: XJO) with its year-to-date gain of 9.6%. Telstra shares have also booked quite a few new 52-week highs over the past couple of months too:

So the value investors out there might be asking if this pullback for Telstra shares is a good chance to jump in.

Well, let’s see what some of the ASX’s top brokers have to say about that.

Are Telstra shares a buy after this week’s slump?

First up is Macquarie. As we covered last month, Macquarie currently rates Telstra shares as outperform. This broker has given the ASX 200 telco a 12-month share price target of $4.68. It is expecting Telstra to continue to outperform expectations when it comes to earnings over the next few years after the company’s recent mobile price hikes.

That’s one notch on the belt.

But another ASX broker in Goldman Sachs is also positive on Telstra. This expert rates Telstra shares as a buy, with an even better share price target of $4.70. Goldman is also eyeing off Telstra’s ability to generate strong earnings down the road, together with higher dividends.

Finally, let’s go over the views of yet another broker in Morgans. As we covered last month, Morgans is our third ASX broker to recommend Telstra. It currently has an add rating on the telco, and shares Goldman’s $4.70 price target.

Morgans reckons the Telstra share price is sporting an attractive valuation, and anticipates further value if the company proceeds with asset divestment.

So that’s three out of three brokers that are currently recommending Telstra shares for investors today. No doubt Telstra shareholders will be exceptionally pleased with that outcome.

At Telstra shares’ current pricing, this ASX 200 telco has a market capitalisation of $50.03 billion, with a dividend yield of 3.93%.

 

The post Should I buy this week’s slump on Telstra shares? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• My 5-step plan to achieving $500 in monthly passive income
• 5 things to watch on the ASX 200 on Wednesday
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Dalio says US and China ‘on brink of war’. Which ASX shares could be impacted?
• These ASX 200 shares could be top options for your retirement portfolio: experts

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

from The Motley Fool Australia https://ift.tt/G7ouNYc

Some S&P/ASX 300 Index (ASX: XKO) retail shares facing an uncertain time. Households are facing painful inflation and elevated interest rates. This could be difficult for a number of retailers if households spend less.

Plenty of businesses saw excellent retail conditions during COVID as households had more savings and fewer other places where they could spend their discretionary money.

However, now that the RBA has ramped up the cash rate to lower economic demand in the Australian economy, retailers may see subdued conditions.

But, according to Australian Financial Review reporting on comments from Josh Clark, portfolio manager of QVG Capital’s long short fund, there are a few pockets of the retail industry that could keep performing.

Pockets of strength

Clark is cautious about housing-related retailers, asking the question “how many couches, cushions and coffee machines can you fit in your house?”. There are certainly a few ASX shares that specialise in those sorts of products.

But, while he believes that cost of living pressures make it “inevitable” that spending will slow, the economy is “only just starting to see evidence of consumer softness from early this year”.

Clark acknowledged that the portfolio he manages has minimal exposure to the consumer sector, but he does like the look of retailers who are focused on younger shoppers.

He pointed out that customers aged between 18 to 25 years old are “reaping the benefits of low unemployment without the headwinds of higher mortgage rates.”

There was one ASX share in particular that he called out with this younger demographic angle in mind – Lovisa Holdings Ltd (ASX: LOV).

What does Lovisa do?

Lovisa is an affordable jewellery retailer. It has a strong market presence in Australia, with 163 stores.

However, the company is rapidly growing in a number of different markets. In the first half of FY22, it had 81 USA stores and by the first half of FY23, it had 155 stores.

The business has only recently entered a number of regions that I think offer compelling growth potential including Italy, Poland, Hong Kong, Romania, Canada, Mexico and South America.

Some day, the business may decide to enter the huge population markets of mainland China and India.

In the first half of FY23, it saw net profit after tax (NPAT) grow by 31.9%. In the second half of FY23, it had opened 31 net new stores by the time it announced its HY23 result.

The ASX 300 retail share is expecting to deliver growth in “existing and new markets, and expect rollout momentum to increase going forward.”

Any other ASX retail share ideas?

While Lovisa was the only one that he named, there are a few other retailers that are aimed at younger shoppers that could perform better.

Shoe retailer Accent Group Ltd (ASX: AX1) has a number of brands that are targeted at younger shoppers such as Glue Store and Beyond Her.

Universal Store Holdings Ltd (ASX: UNI) owns three different brands that are “premium youth fashion brands” – Universal Store, THRILLS and Perfect Stranger.

So, it could be worthwhile to look more into these ASX retail shares.

The post Why these ASX 300 retail shares could be immune to rising interest rates appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buy 16,900 shares in this top ASX dividend stock for $400 per month in passive income
• Expect big yields from these buy-rated ASX dividend stocks: brokers
• ‘Under the radar success’: 3 quality ASX 200 growth shares to buy right now
• Top ASX shares to buy in May 2023
• These ASX dividend shares have big yields

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

from The Motley Fool Australia https://ift.tt/aqQ3ZWp