Category: Stock Market

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

U.S. stocks showed signs of a potential bounce on Tuesday morning, albeit a modest one. Stock index futures were up as much as a third of a percent shortly before the regular trading session began on Wall Street.

One factor that has weighed on investor sentiment recently has been the ongoing battle that the Chinese government has waged against the COVID-19 pandemic. China has been a lot more stringent with its lockdown measures to stem the potential spread of the disease, and that has raised concerns about how much downward pressure the government’s actions could have on economic activity. With Chinese citizens now starting to protest lockdowns and other restrictions, the prospects for eliminating the zero-COVID policy in favor of a more lenient alternative are giving many well-known stocks in China a boost on Tuesday morning.

What China could do

Investors in Chinese companies got more comfortable after hearing comments from China’s National Health Commission (NHC). The governmental body said that it would make a greater effort to provide COVID-19 vaccinations for its elderly population, aiming to protect those over 80 and making booster shots available sooner after primary vaccinations. The NHC is also looking to launch a campaign to convince those who are reluctant to get vaccinated that the benefits of COVID-19 vaccines outweigh any perceived downsides.

Interestingly, the reaction to recent protests in China has been mixed. At first, investors feared that the Chinese government would crack down on protestors with COVID-19-related measures that could be stricter than current guidelines. However, more market participants seem to view the protests as potentially having a positive influence in persuading government officials to loosen their zero-COVID policy.

That’s a big part of why some major Chinese stocks moved higher in premarket trading Tuesday morning. Alibaba Group Holding rose 5%, matching gains from electric vehicle companies Li Auto and XPeng. Baidu climbed 6%, while JD.com moved 7% higher.

Solid earnings from Bilibili

Also boosting sentiment on Chinese stocks, Bilibili (NASDAQ: BILI) released its latest quarterly results on Tuesday, and the stock climbed 10% in response. The online gaming and digital media company reported solid gains in the third quarter, including an 11% rise in revenue year over year to $814.5 million. Net losses narrowed by 36% from year-ago levels to $241 million as Bilibili reported a 25% rise in daily active users to 90.3 million. Almost 333 million people now use the service on a monthly basis, and while less than 10% of those users actually pay for a premium subscription, Bilibili reported high levels of engagement.

Shareholders were pleased to see Bilibili responding proactively to macroeconomic threats. Already, Bilibili’s numbers are reflecting more efficient operations, as gross margin improved and expenses for sales and marketing fell as a percentage of total revenue. The company anticipates continuing to control its costs strictly, with an eye toward unlocking even more savings as it aims to become consistently profitable as soon as it can.

More hurdles ahead

COVID-19 is only one of the factors that have weighed on Chinese stocks in recent years. Turbulent foreign relations between China and the U.S. have led to volatility, while structural aspects of the Chinese economy have introduced systemic risks for investors to consider. Talk of potentially delisting Chinese stocks has quieted in Washington, but it could come back in 2023 and beyond.

Nevertheless, progress toward moving beyond the zero-COVID policy seems to be giving investors more comfort in investing in Chinese stocks. Those who are comfortable with the risks could find interesting opportunities in China. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Chinese stocks are soaring. Here’s why appeared first on The Motley Fool Australia.

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• Which ASX directors were buying and selling their company shares in November?
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Dan Caplinger 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 Baidu and JD.com. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Bilibili. The Motley Fool Australia has recommended JD.com. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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ASX directors buying and selling their company’s shares can arguably provide insight into what they expect from its future. Indeed, investing great Peter Lynch is widely quoted as saying:

Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.

Thus, insider buying is often heralded as a sign those in the know are confident in their business, while insider selling can arguably signify the opposite.

There have been plenty of director transactions on the ASX this month. Let’s take a look.

ASX directors trading their company’s shares this month

Let’s start with ASX technology share Electro Optic Systems Holdings Ltd (ASX: EOS). The stock has tumbled 75% since the start of 2022.

Its slump may have presented a buying opportunity, if a recent uptick in insider buying is any sign.

Directors Kate Lundy and Robert Kaye both recently bolstered their stake in the company. Lundy bought 8,000 shares in the ASX tech stock for 60 cents apiece on 22 November, while Kaye’s spouse purchased 50,700 shares, paying around 57.90 cents apiece, on 22 November. The buys were worth $4,800 and $29,355 respectively.

Topping off the trading was a $307,050 acquisition by newly appointed chair Garry Hounsell. Hounsell bought 500,000 shares for 60.41 cents apiece on 24 November.

Meanwhile, insider selling was going down at WiseTech Global Ltd (ASX: WTC). The ASX tech company’s founder, CEO, and director Richard White has been selling off the company’s shares in droves this month, but there might be more to the story than meets the eye.

Between 28 October and 24 November, White appears to have offloaded a grand total of 455,075 shares in the ASX company, receiving $25.8 million for the sales. However, it’s unclear whether the insider selling is related to a previously announced equity swap transaction.

Finally, ASX share Bravura Solutions Ltd (ASX: BVS) recently took a 52% tumble and some of its directors have seemingly taken advantage.

Chair Neil Broekhuizen indirectly bought 636,000 Bravura shares, paying 62.53 cents apiece, on 4 November. Director Alexa Henderson got in on the buying action on 7 November, indirectly acquiring 141,000 shares for 70.72 cents apiece. Finally, director Peter Mann indirectly purchased 119,200 shares for around 73.33 cents per stock on 8 November.

The parcels of ASX shares cost the respective directors $397,675, $99,715, and $86,224.

The post Which ASX directors were buying and selling their company shares in November? appeared first on The Motley Fool Australia.

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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 positions in and has recommended Bravura Solutions Ltd, Electro Optic Systems Holdings Limited, and WiseTech Global. The Motley Fool Australia has positions in and has recommended Bravura Solutions Ltd and WiseTech Global. 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 very possible that Mineral Resources Limited (ASX: MIN) could be about to become a leading S&P/ASX 200 Index (ASX: XJO) dividend share. Though its income potential is currently hidden.

The business is involved in the resources sector. It’s the world’s largest crushing contractor, a leading pit-to-port mining services provider, a “world top five lithium producer” and an “Australian top five iron ore producer”. It’s also the largest landholder of gas acreage in Perth and Carnarvon basis.

Why it’s a hidden ASX 200 dividend share

The business is already paying dividends to investors.

In FY22 it paid a total dividend of $1 per share. This translates into a grossed-up dividend yield of 1.7%. That certainly doesn’t seem like a compelling yield at the moment.

But, the reason why I think it’s a “hidden” opportunity is because of what’s about to come next.

The company is working on different elements of its business across lithium and iron ore. This is expected to significantly increase the profit, cash flow and dividend of the business in the next couple of years.

For example, the estimated numbers on CommSec for FY24 suggest that the business could generate more than $10.80 of earnings per share (EPS) and pay an annual dividend per share of $4.25. This would translate into a forward grossed-up dividend yield of 7.25%.

But, the broker Macquarie thinks that Mineral Resources can achieve even stronger growth of the dividend, with a potential grossed-up dividend yield of 15.8%.

Whether it’s 7%, 16% or somewhere in between, the dividend yield for FY24 (and beyond) could be a lot stronger than it is today from the potential ASX 200 dividend share. We’re almost halfway through FY23, so those larger payouts may not be far away.

What is Mineral Resources working on?

In terms of mining services’ future growth potential, Mineral Resources-operated projects could see 65% volume growth in the near term.

With its existing iron ore operations, it points to the Yilgam magnetite opportunity. Drilling and study work is underway. It will be assessing the long-term plan over the next three months.

The iron ore Pilbara hub development is another longer-term plan as it will unlock “stranded” iron ore assets. The mine could produce 20mt per annum, with a 30-year life.

Mineral Resources’ Onslow iron development is a “transformational, low-cost, long life sustainable iron ore project”. Stage one will be 30mt per annum, with a capacity of 35mt per annum.

In terms of the lithium side of the business, Mineral Resources is benefitting from “strong” market fundamentals. Electric vehicle demand is expected to continue, driving strong demand for lithium. While the lithium price won’t always be as high as it is today, it’s allowing the ASX lithium shares to benefit and boost investor sentiment about the Mineral Resource share price.

The five-year plan for the ASX 200 dividend share’s attributable share of lithium hydroxide conversion capacity is a total of around 118kt per annum. Mineral Resources’ long-term plan is to continue to capture more of the battery supply chain.

The post Why this ASX 200 dividend share could be an income gold mine hiding in plain sight appeared first on The Motley Fool Australia.

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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 Macquarie Group Limited. 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 Whitehaven Coal Ltd (ASX: WHC) share price has been on fire this year.

Thanks to sky high coal prices, this mining giant’s shares have risen a whopping 235% since the start of the year.

Unsurprisingly, this makes the Whitehaven Coal share price the best performer on the ASX 200 index this year.

Can the Whitehaven Coal share price keep climbing?

The good news for investors is that one leading broker doesn’t believe it is too late to snap up this high-flying coal miner’s shares.

According to a note out of Bell Potter, its analysts have upgraded the company’s shares to a buy rating and lifted their price target to $11.00.

Based on the current Whitehaven Coal share price of $9.26, this implies potential upside of approximately 19% for investors over the next 12 months.

And with the company generating significant free cash flow from its coal, Bell Potter is expecting a big dividend yield over the period. Its analysts have pencilled in a 96 cents per share fully franked dividend in FY 2023, which equates to a 10.4% yield for investors.

All in all, this brings the total potential return on offer to a little beyond 29%. Not bad for a share that has already risen 225% this year!

Coal price forecasts upgraded

Driving the broker’s bullish view has been an upgrade to its coal price estimates for the coming years. It explained:

We have materially upgraded our coal price outlook: Thermal coal (FOB Newcastle) now averaging US$275/t in 2023 (+26%), US$200/t in 2024 (+62%) and US$125/t in 2025 (+56%); hard coking coal (FOB Queensland) now averaging US$250/t in 2023 (+5%), US$225/t in 2024 (+20%) and US$200/t in 2025 (+25%). Our long term estimates are unchanged: Thermal coal US$80/t (real) and hard coking coal US$160/t (real) from 2026 (previously from 2025).

The broker added:

Upside risk to pricing across the energy complex in the northern hemisphere winter, exacerbated by sanctions on Russian supply, are the key drivers of our strong coal price, near-term WHC earnings and dividend outlook and recommendation upgrade.

The post Broker says this ASX 200 coal share could offer a market-beating 29% return in 2023 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 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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S&P/ASX 200 Index (ASX: XJO) energy shares have been strong performers over the past 12 months.

Aussie oil and gas stocks, including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS), handily outpaced the returns from the benchmark index over the full year. And they’ve paid out some juicy dividends to boot.

But November saw that trend reverse, with the ASX 200 energy shares underperforming the benchmark, and they were hit with headwinds from fast-falling crude oil prices.

Brent crude dropped more than 12% from the start of November through to Tuesday, when it was trading for US$83.19. That’s the lowest levels seen since early January, before Russia’s invasion of Ukraine.

But the Organization of Petroleum Exporting Countries (OPEC) may be about to reverse that trend.

Is OPEC about to give ASX 200 energy shares a boost?

ASX 200 energy shares owe some thanks to OPEC for helping prop up crude oil prices.

Last month the cartel announced significant output cuts as a slowing global economy dampens demand for oil. That demand has slipped further as China continues to pursue its growth inhibiting COVID zero policies.

Now, as Bloomberg reports, some OPEC delegates have flagged the potential for a fresh round of output cuts when the group meets on 4 December. A move that could usher in fresh tailwinds for ASX 200 energy shares.

Commenting on the upcoming meeting, Charu Chanana, market strategist at Saxo Capital Markets Pte, said:

There is near-term risk to the demand outlook. OPEC+ is likely to remain more concerned about the technical picture in the oil market turning negative, and that is likely to force the cartel to respond.

Potentially related to OPEC’s meeting, Brent crude prices gained 2.6% yesterday, trading for US$85.38 per barrel.

Investors in ASX 200 energy shares will also want to keep an eye on Europe. The European nations are hammering out an agreement on just what price level Russian oil exports should be capped at.

Sanctions on Russian oil come into effect on 5 December. Russia’s response to those caps, and how well they’re enforced, could have a major impact on global oil prices.

The post Is OPEC about to give ASX 200 energy shares a boost? appeared first on The Motley Fool Australia.

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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.

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The ASX share market has been through plenty of volatility in 2022. But I’ve been using the lower prices as an opportunity to invest for my portfolio.

No one can know what share prices are going to do next month or next year. But I can see when valuations have dropped from where they were.

It’s common, and expected, for share prices to go through declines every so often. However, it’s rare for the entire market to drop at the same time.

The last time inflation and interest rates went up this quickly was a number of decades ago. It is a rare opportunity to be able to invest in businesses after such a large, rapid fall across the market.

While this is a different economic climate to the COVID-19 crash and the GFC, some businesses have — or had — experienced a similar level of decline.

Why I’ve been buying ASX shares

One of the benefits of a lower share price is that it boosts the prospective dividend yield of ASX dividend shares.

For example, if a business had a 6% dividend yield but the share price drops by 10%, that dividend yield turns into 6.6%.

All of the shares in my portfolio pay dividends. I like the real cash flow that dividends can add to my annual financial picture.

In the current market, I’ve seen plenty of opportunities to add to existing positions as well as invest in new ASX shares. Earlier in the year, I saw an opportunity to buy some more Washington H. Soul Pattinson and Co. Ltd (ASX: SOL) shares and Rural Funds Group (ASX: RFF) shares.

I also invested in new positions like Brickworks Limited (ASX: BKW) and Bailador Technology Investments Ltd (ASX: BTI).

But, this article isn’t about trying to advocate for those particular ASX shares.

Share prices don’t typically drop by themselves. There has to be a significant worry for something to drop more than 10% in a relatively short amount of time.

When there’s even a sniff that things might be getting better, or even not getting worse, the share market often likes to push valuations higher.

Which ones could be good value?

I think the names that could be opportunities are the ones that have fallen significantly but still have sound long-term plans.

Names in the tech space and retail space could be good value in my opinion, such as Xero Limited (ASX: XRO), Adairs Ltd (ASX: ADH), Accent Group Ltd (ASX: AX1), Airtasker Ltd (ASX: ART), Wesfarmers Ltd (ASX: WES), Temple & Webster Group Ltd (ASX: TPW), Universal Store Holdings Limited (ASX: UNI), and Volpara Health Technologies Ltd (ASX: VHT).

The strong growth businesses can hopefully recover investor sentiment, while the outlook for retail conditions won’t always be this uncertain.

I think that buying businesses at a lower price can help the long-term compounding of the returns, resulting in stronger long-term wealth building. This could help me retire earlier, generate more dividend income, and perhaps see me finish with a bigger nest egg.

The post Why I’m buying ASX shares in this once-in-a-lifetime market to try and retire early appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Bailador Technology Investments Limited, Brickworks, RURALFUNDS STAPLED, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ADAIRS FPO, Bailador Technology Investments Limited, Brickworks, Temple & Webster Group Ltd, VOLPARA FPO NZ, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. The Motley Fool Australia has positions in and has recommended ADAIRS FPO, Brickworks, RURALFUNDS STAPLED, VOLPARA FPO NZ, Washington H. Soul Pattinson and Company Limited, Wesfarmers Limited, and Xero. The Motley Fool Australia has recommended Accent Group, Bailador Technology Investments Limited, and Temple & Webster Group Ltd. 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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Are you looking to add some growth shares to your portfolio?

If you are, two explosive ASX growth shares that could be worth considering are listed below. Here’s what you need to know about them:

Allkem Ltd (ASX: AKE)

The first ASX growth share to consider is Allkem. It is one of the world’s largest lithium miners with projects in Argentina, Australia, and North America.

From these projects, Allkem is aiming to command a 10% share of global lithium supply over the long term. This bodes well for its profits in the coming years, particularly given the strong prices that the battery making ingredient is fetching right now.

Bell Potter’s analysts are bullish on Allkem and have a buy rating and $19.45 price target on its shares. The broker commented:

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that has been tipped for strong growth is online furniture and homewares retailer Temple & Webster.

Goldman Sachs is very positive and believes the company is well-placed for long term growth due to its leadership position in a retail category that is in the early stages of shifting online. Its analysts have a buy rating and $7.55 price target on the company’s shares. It commented:

Our Buy thesis is predicated on the following key drivers: (1) we believe TPW is well positioned in the upcoming cycle to continue to grow market share, despite a weaker macro environment; (2) in our view TPW 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 vs. other retail categories; and (3) greater focus on costs is a sensible strategy to balance near-term profitability with growth.

The post 2 explosive ASX growth shares to buy according to experts appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Allkem Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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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Energy and mining stocks have absolutely carried the S&P/ASX 200 Index (ASX: XJO) this year while other sectors struggled.

But it’s a familiar story in share markets that a hot sector in one year could deflate the next.

So if you’re buying ASX resources shares right now, discerning selections are the name of the game to avoid a disastrous 2023.

Fortunately, a pair of experts had some ideas this week:

‘Healthy’ boost to production

Morgans investment advisor Jabin Hallihan currently reckons ASX 200 share Karoon Energy Ltd (ASX: KAR) is a prudent purchase.

That’s despite a nice 51% surge upwards since a 7 July trough in the share price.

“The oil and gas producer and explorer operates in Australia and Brazil,” Hallihan told The Bull.

“We retain an add rating, with a $3.75 valuation.”

The advisor is bullish on Karoon from “the steady progress KAR is making on its growth program”.

“Karoon has provided encouraging drilling results at the second Patola well in Brazil,” said Hallihan.

“Given the results, Karoon now expects initial production from Patola to exceed 10,000 barrels of oil a day. This is a healthy short-term boost to group oil production.”

Hallihan’s peers generally agree with him.

According to CMC Markets, seven out of nine analysts that cover Karoon recommend the ASX 200 stock as a buy. Six of them even rate it as a strong buy.

A peaking US dollar could mean a rising gold price

Seneca investment advisor Arthur Garipoli is banking on a rebound in the gold price in his backing for Evolution Mining Ltd (ASX: EVN).

“Potentially slowing interest rate increases and a peaking US dollar should support the gold price, so we believe there’s good value in the gold sector.”

He reckons Evolution is poised to under-promise then over-deliver in 2023.

“Metrics at Evolution projects, including the challenging Red Lake, are improving. We believe guidance is conservative.”

The Evolution share price has enjoyed a tidy 29% rise this month.

“The share price has risen from $2.01 on November 4 to trade at $2.73 on November 24,” said Garipoli.

“We like the company’s outlook and see potential upside from here.”

The professional community is more split on Evolution than Karoon. Currently, nine analysts rate the ASX 200 gold miner as a buy on CMC Markets, while five recommend holding.

Concerningly, three analysts are urging their clients to strongly sell.

The post 2 ASX 200 energy and mining shares hot to buy right now: experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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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It’s often seen in share markets that a group of shares that are completely out of favour in one year will outperform the next.

After all, simple mean reversion would tell you that a beaten up stock will have more upside as opposed to another that has already been well celebrated by investors.

That’s the attitude Switzer Financial Group director Paul Rickard is taking into the new year with growth shares.

“What we’ve seen in the last six to nine months is that the market’s punished growth stocks with interest rates going up,” he said on a Switzer TV Investing video.

“To get away from the defensive end of the market, you have to have the view that inflation has peaked and therefore the next big movement in interest rates is down.”

Rickard said the November consumer price index figures for the US, which will be revealed mid-December, could act as confirmation of that thesis. Although even if it doesn’t happen next month, the signal will eventually occur down the track.

Considering this, all three of Rickard’s top stock tips for 2023 are in the growth style:

Share price ‘breakthrough’ coming 

Biotechnology company CSL Limited (ASX: CSL) is an oldie but a goodie for Rickard.

It’s been something of a sleeping giant in recent years as the share price has merely moved sideways, never getting close to the pre-COVID peak of around $336. 

But Rickard noted that it has tried to burst through the $300 barrier about four times this year.

“I think we’re going to see that breakthrough at some stage,” he said.

“It’s actually up year to date, which might surprise a number of people.”

Rickard thought the takeover of Swiss company Vifor was positive, as it operates in a valuable part of the health industry fighting kidney disease.

“Not a huge contribution to profit this year, about US$300 million,” he said.

“But CSL had the same [situation] when it acquired Sequiris, which was the influenza vaccines business. That took a few years to work really well for CSL.”

‘Back a winner’

Investment bank Macquarie Group Ltd (ASX: MQG) has seen its share price take a 16% hit year to date, which Rickard attributes to its exposure to the wider corporate world.

“As interest rates go up, we see the business cycle slow down a bit and investors get nervous. We’ve seen the slowdown in private equity and fewer IPOs,” he said.

“It becomes harder to sell assets because there’s just not as much interest.”

But for Rickard, anyone looking with a long-term horizon would have to back the Holey Dollar.

“You back a winner. It’s in the top two or three Australian companies. 60% of its revenues are now [from] offshore,” he said.

“It has a mix of what it calls market-facing and non-market-facing businesses.”

The other reason Rickard is bullish on Macquarie is it has a similar trait to CSL.

“It has a history of positive surprises. It under-promises — gets cautious, gets conservative in its outlook statements — then likes to over-deliver.”

‘Big opportunities’ in the US and the UK

The third pick for Rickard is the cloud accounting software maker Xero Limited (ASX: XRO).

The Xero share price has unfortunately more than halved in 2022.

“Its next leg of growth is in the US and the UK, and that’s struggled a little bit,” said Rickard.

“Not that it’s not growing, but it’s not growing at the rate the market wants it to grow.”

Rickard believes that Xero can turn the situation around and conquer those expansion markets for two reasons

“We know their software is pretty good, it’s very sticky, people love it,” he said.

“Surprisingly, the market, in terms of provision of small business software, in the UK and the US is actually behind Australia. Despite some global giants in that marketplace, there’s big opportunities.”

Despite a new chief executive due to take the reins in 2023, Rickard pointed to the technology company’s growth history.

“I think it’s going to get there,” he said.

“You back something that, again, has been pretty successful and it’s demonstrated some great metrics.” 

The post ‘Back a winner’: Expert names his 3 best ASX shares for 2023 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has positions in CSL Ltd., Macquarie Group Limited, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Macquarie Group Limited. 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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Are you looking for ASX 200 dividend shares to buy in December? If you are, then you may want to check out the two listed below that have recently been named as buys.

Here’s why brokers rate them highly right now:

National Australia Bank Ltd (ASX: NAB)

Analysts at Goldman Sachs believe that NAB could be an ASX 200 dividend share to buy.

This is due partly to its strong position in commercial banking, which the broker believes is the better part of the market to be right now given the challenging housing market.

Goldman has a buy rating and $35.41 price target on the banking giant’s shares. It commented:

We are Buy rated on NAB given i) we see volume momentum over the next 12 months as favouring commercial volumes over housing volumes and NAB provides the best exposure to this thematic, ii) NAB has delivered the highest levels of productivity over the last three years, which we think leaves it well positioned for an environment of elevated inflationary pressure, iii) NAB’s cost management initiatives, which seem further progressed vs. peers, have freed up investment spend to be more directed towards customer experience as opposed to infrastructure (it is the only major bank to be growing above system in both domestic lending and deposits over the last 12 months). The stock is trading at a discount to peers, versus the historic average discount of 11%.

As for dividends, Goldman is forecasting fully franked dividend yields of 5.5% in FY 2023 and 5.6% in FY 2024.

Suncorp Group Ltd (ASX: SUN)

The team at Morgans appears to see Suncorp as another ASX 200 dividend share to buy.

Suncorp is of course one of Australia’s leading insurance and banking companies and the owner of brands including AAMI, Apia, Bingle, GIO, Shannons, Suncorp, and Vero.

Morgans currently has an add rating and $13.98 price target on its shares. The broker believes its shares are trading at an attractive level and sees a lot of positives from its efficiency program. It commented:

While weather remains volatile, we think SUN’s underlying business trends continue to broadly track in the right direction. SUN will also reap the full benefits of its efficiency program in FY23 and we see SUN’s current valuation as undemanding, e.g. FY23 PE multiple of 13x and a 6% dividend yield.

At present, the broker is forecasting fully franked dividends per share of 77.5 cents in FY 2023 and 80 cents in FY 2024. Based on the current Suncorp share price of $12.00, this will mean yields of 6.45% and 6.65%, respectively.

The post Brokers name 2 ASX 200 dividend shares to buy in December appeared first on The Motley Fool Australia.

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More reading

• The 10 ASX 200 shares responsible for 60% of all Aussie dividends last quarter
• Which ASX 200 bank share stands to benefit the most from ‘good borrowers’?
• Could NAB shares pay bigger dividends in the future?
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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 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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