Stock Pick

Category: Stock Market

  • Morgans names 2 more of the best ASX shares to buy in October

    a man raises his fists to the air in joyous celebration while learning some exciting good news via his computer screen in an office setting.

    a man raises his fists to the air in joyous celebration while learning some exciting good news via his computer screen in an office setting.

    The team at Morgans has been busy again picking out its best ASX share ideas for the month of October.

    These are the shares that the broker thinks offer the highest risk-adjusted returns over a 12-month timeframe and are supported by a higher-than-average level of confidence.

    The first two shares we looked at can be found here. Read on for the next two:

    Domino’s Pizza Enterprises Ltd (ASX: DMP)

    The first ASX share that Morgans rates as a strong buy this month is Domino’s. It is a growing pizza chain operator with operations across the ANZ, Asian, and European markets. Morgans highlights that the company has performed positively previously when inflation was high or economic growth was slow. In addition, the broker likes Domino’s due to its long term growth plans. It commented:

    DMP is the largest Domino’s franchisee outside the US and one of the largest quick-service restaurant companies in the world. It is an affordable option that has performed well historically even in times of inflation or slower economic growth. The engine of DMP’s growth is its ability to roll out new stores all over the world. It added 438 stores to its global network in the year to June 2022, a pace of expansion that we forecast to accelerate to nearly 600 in FY23. This will take the total to almost 4,000 stores, up fourfold over a ten-year period. Over the next ten years, DMP expects to grow organically to 7,250 stores in the 13 countries in which it currently operates. This means DMP expects to more than double in size again by 2033, not including any future acquisitions.

    Morgans has an add rating and $90.00 price target on the company’s shares.

    Telstra Corporation Ltd (ASX: TLS)

    A new addition to the best ideas list this month has been Telstra. Its analysts are positive on the telco giant for a number of reasons. This includes its belief that the market is undervaluing the company on a sum of the parts basis. It also expects the Optus data leak to be a boost to Telstra’s business in the next 12 months. Morgans explained:

    After a major turnaround, TLS has emerged in good shape with strong earnings momentum and a strong balance sheet. In late CY22 shareholders vote on Telstra’s legal restructure, which opens the door for value to be released. TLS currently trades on ~7x EV/EBITDA. However some of TLS’s high quality long life assets like InfraCo are worth substantially more, in our view. We don’t think this is in the price so see it as value generating for TLS shareholders. This, free option, combined with likely reputational damage to its closest peer, following a major cybersecurity incident, means TLS looks well placed for the year ahead.

    Morgans has an add rating and $4.60 price target on Telstra’s shares.

    The post Morgans names 2 more of the best ASX shares to buy in October 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 positions in and has recommended Telstra Corporation Limited. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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  • Could the Coles share price be in for a better month in October?

    A man looks a little perplexed as he holds his hand to his head as if thinking about something as he stands in the aisle of a supermarket.A man looks a little perplexed as he holds his hand to his head as if thinking about something as he stands in the aisle of a supermarket.

    The Coles Group Ltd (ASX: COL) share price struggled through September, dumping 6.4% over the month.

    But with broker sentiment appearing positive on the stock, could October bring better days?

    At the time of writing, the Coles share price is $16.41, 0.97% lower than its previous close.

    Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 0.1%. The index also slumped 7.3% in September, which is generally the market’s worst month.

    Let’s take a look at what the future might hold for the ASX 200 supermarket favourite.

    What might the future hold for the Coles share price?

    The near future of the Coles share price looks bright, according to some experts.

    Morgans, for one, is tipping a 21.7% upside on the supermarket stock, slapping Coles shares with an add rating and a $20 price target, as my Fool colleague James reports.

    The broker likes the company’s recently announced plan to sell Coles Express for $300 million.

    It says the move will “free up significant balance sheet capacity” and allow the company to focus on its supermarkets and liquor businesses, continuing:

    [W]e think [this] is the right strategy as competition is likely to remain intense on the back of higher inflation, rising interest rates, and increasing cost-of-living pressures for customers.

    Of course, the company is an S&P/ASX 200 Consumer Staples Index (ASX: XSJ) constituent. Meaning, it’s regarded as better off than most amid tough times as consumers can’t simply stop spending on food.

    However, new data shows Australians did, indeed, slow their supermarket spending last month.

    The Beforepay Group Ltd (ASX: B4P) Cost of Living Index, which summarises the spending of more than 300,000 Aussies, found daily spending on groceries dropped 19% month on month to $15.20 a day in September.

    If such trends continue, it could weigh on the supermarket operator’s bottom line.

    However, Seneca investment advisor Arthur Garipoli, who is neither bullish nor bearish on Coles shares, believes tightening purse strings won’t prove too large an obstacle for the company, telling The Bull:

    In a higher interest rate environment, Coles can be sufficiently agile to appeal to shoppers by ensuring affordable prices.

    The post Could the Coles share price be in for a better month in October? 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. 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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  • Could the RBA’s latest interest rate decision signal a turning point for ASX 200 shares?

    The back of a man standing in front of two roads going in different directions.The back of a man standing in front of two roads going in different directions.

    S&P/ASX 200 Index (ASX: XJO) shares are slightly lower in afternoon trading, down 0.21% to 6,801 points.

    This week so far, the benchmark index is up 4.4%. This is almost exclusively due to the Reserve Bank of Australia (RBA)’s interest rate decision on Tuesday.

    The RBA decided to raise the official cash rate by 0.25%. This surprised the market, as analysts were expecting a fifth consecutive month of 0.5% rises.

    The response? Well, the market threw a party.

    On the day of the RBA announcement, the ASX 200 closed 3.75% higher at 6,699.3 points. That was the best performance in more than two years.

    The party continued yesterday, with another 1.74% gain to 6,815.7 points at the close.

    So, could this be a turning point for ASX 200 shares, after a dismal year so far? (The index is down 10% year to date.)

    Is this a turning point for ASX 200 shares?

    In short, it could be.

    The RBA boss indicated in a statement that the board might be happy to slow rate rises down from here.

    RBA Governor Philip Lowe said:

    The cash rate has been increased substantially in a short period of time. Reflecting this, the Board decided to increase the cash rate by 25 basis points this month as it assesses the outlook for inflation and economic growth in Australia.

    Slowing rate rises down could mean two things that the market is likely to love, potentially leading to a turnaround in ASX 200 shares.

    The first is that the RBA might be thinking they’ve raised rates enough to put the brakes on rising inflation in a meaningful way to this point.

    The cash rate is up 2.5% over just six months, and that’s aggressive in anyone’s language.

    What do the experts think?

    As we reported yesterday, James Nicolaou of Shaw & Partners said the RBA’s decision might signal that rate increases are “starting to have the desired effect”.

    And that’s “positive for the markets and economy”, he told The Australian.

    Lowe made it clear in his statement that more rate rises are likely. But if they’re in smaller increments, that will help people cope better with the rising cost of mortgage interest. That bodes well for the economy.

    Also in The Australian, top broker Macquarie said a “bear market rally” may have already started as a result. It said this was due to the “dovish” RBA increase and weak US ISM Manufacturing data.

    The broker has nominated 10 ASX 200 shares that are “more likely to outperform” in such a rally.

    LGT Crestone deputy chief investment officer Kevin Wan Lum from LGT Crestone weighed in on Livewire:

    From a relative value perspective, we favour Australia over offshore equity markets.

    Overall, we believe the domestic economy remains in relatively good health supported by low unemployment levels, reasonable valuations relative to longer pre-COVID averages, and a less severe path of inflationary pressures.

    Additionally, Australia has robust terms of trades, driven by hard commodities and energy, which we expect to at least continue in the short to medium term.

    We view the US dollar as currently stretched, and expect the Australian dollar to rebound, favouring our domestic equity positioning.

    Also on Livewire, Oreana Financial Services chief investment officer, Isaac Poole, said Oreana was biased toward Australian equities and quality companies.

    Poole said:

    While we think equity beta will perform OK over the next 12 months, the challenge will be for companies to hit their earnings targets in the near-term, and that will probably favour higher quality companies.

    (Fun fact: ‘Beta’ is a measure of how reactive an ASX share is to market movements. For example, an ASX 200 share with a beta of one generally moves in line with the market. Lower than one means lower volatility, higher than one means higher volatility.)

    The post Could the RBA’s latest interest rate decision signal a turning point for ASX 200 shares? appeared first on The Motley Fool Australia.

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    Motley Fool contributor Bronwyn Allen has positions in Macquarie Group Limited. 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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  • Why Appen, De Grey Mining, Magellan, and Zip shares are dropping today

    An older woman with grey hair and wearing glasses looks at her laptop screen with her hand outstretched to demonstrate that she doesn't understand what she is reading

    An older woman with grey hair and wearing glasses looks at her laptop screen with her hand outstretched to demonstrate that she doesn't understand what she is readingIn afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has followed the lead of US markets and dropped into the red. At the time of writing, the benchmark index is down 0.1% to 6,805.4 points.

    Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

    Appen Ltd (ASX: APX)

    The Appen share price is down 14% to $2.86. Investors have been selling this artificial intelligence data services company’s shares following the release of another dismal update. Appen revealed that it expects FY 2022 revenue in the range of US$375 million to US$395 million and constant currency EBITDA of US$13 million to US$18 million. The latter will be down 77.2% to 83.5% over the prior corresponding period.

    De Grey Mining Limited (ASX: DEG)

    The De Grey Mining share price is down almost 4% to $1.05. This follows the completion of the gold developer’s institutional placement. De Grey Mining has received firm commitments for the placement of 130 million shares at $1.00 per share to raise $130 million before costs. This issue price represents an 8.3% discount to its last closing share price.

    Magellan Financial Group Ltd (ASX: MFG)

    The Magellan share price is down 8.5% to $10.75. The catalyst for this decline has been the release of yet another terrible funds under management (FUM) update from the struggling fund manager. In September, Magellan experienced net outflows of $3.6 billion. This comprised net retail outflows of $0.4 billion and net institutional outflows of $3.2 billion. This and unfavourable market movements led to Magellan’s FUM falling almost 12% month on month to $50.9 billion.

    Zip Co Ltd (ASX: ZIP)

    The Zip share price is down over 5% to 70.5 cents. Investors have been selling this buy now pay later (BNPL) provider’s shares despite there being no news out of it. This appears to have been driven by weakness in the tech sector and a poor night for BNPL rival Affirm on Wall Street.

    The post Why Appen, De Grey Mining, Magellan, and Zip shares are dropping today appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd and ZIPCOLTD FPO. 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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  • This top Warren Buffett stock has enormous overlooked upside potential

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

    Broker looking at the share price on his laptop.

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

    Warren Buffett has been buying shares of oil giant Occidental Petroleum (NYSE: OXY) hand over fist these days. His company, Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B), recently bought another 5.99 million shares, boosting its stake to 20.9%. Buffett took advantage of the recent slide in oil prices and Occidental Petroleum’s stock to increase Berkshire’s position in one of its top 10 holdings in late September.  

    While oil is the primary focus of Buffett’s bold bet on Occidental Petroleum, it’s likely not the only thing he sees in the company. Most investors have overlooked that Occidental is a leader in carbon capture and sequestration (CCS), a process that captures carbon dioxide and sequesters the greenhouse gas underground. Occidental sees it as a $3 trillion to $5 trillion future global market opportunity. It could one day supply the company with as much earnings and cash flow as its current oil and gas business.   

    That potentially massive market opportunity is leading the company to continue taking strides to capitalize on the upside it sees ahead. This strategy could give the oil stock the fuel to deliver big-time returns for Buffett in the coming years.  

    Securing another potential partnership

    Occidental Petroleum has been securing partners to pursue a wide array of CCS opportunities. Its latest one is with Western Midstream Partners (NYSE: WES), a master limited partnership (MLP) it used to control. The partners signed a letter of intent to pursue opportunities to produce and deliver low-carbon intensity oil and gas products. 

    Occidental will explore installing carbon capture facilities on its upstream oil and gas activities in the Texas Delaware and Colorado DJ Basins. Meanwhile, Western Midstream will explore installing carbon capture facilities on its natural gas plants and other major gathering and treating facilities. Western would also explore providing carbon dioxide transportation services from those capture facilities to Occidental’s carbon dioxide delivery facilities. The companies intend to consider providing carbon management services to other emitters interested in reducing their emissions.

    This partnership can potentially reduce the emissions of Occidental Petroleum’s oil and gas production in the Delaware and DJ Basins, enabling it to market net-zero output. Meanwhile, it could supply Western Midstream with a stable source of cash flow as it transports carbon dioxide to Occidental’s facilities.   

    Building out a robust solution

    That partnership is the latest in a string of agreements Occidental has signed this year to build its CCS business. It’s creating an end-to-end solution that can manage the entire lifecycle of carbon.

    In late August, the company started construction on the world’s largest direct air capture (DAC) plant in Texas’ Permian Basin. Once operational in 2024, the plant can capture up to 500,000 metric tons of carbon dioxide per year, with the potential to scale up to 1 million metric tons in the future. That’s one of 70 DAC facilities the company intends to deploy worldwide by 2035. 

    Occidental has already signed commercial contracts to support that first facility. Aerospace leader Airbus has agreed to purchase 400,000 tons of carbon removal credits over four years with an option to secure more volume in the future. Meanwhile, SK Trading will buy up to 200,000 barrels of net-zero oil for five years, supported by the carbon dioxide removed from the atmosphere in Occidental’s first DAC. 

    The company has also secured several other midstream partners to help it transport captured carbon to sequestration and utilization sites. It signed a deal with Enterprise Products Partners (NYSE: EPD) to explore a potential carbon dioxide transportation and sequestration solution for the Texas Gulf Coast. Enterprise would use a combination of new and existing pipelines to support the project. Meanwhile, Occidental signed a similar agreement with EnLink Midstream (NYSE: ENLC), focusing on the Mississippi River corridor from Waggaman to Baton Rouge, Louisiana. EnLink would also use new and existing pipelines to transport the captured carbon. 

    Finally, the company has been locking up underground pore space suitable to sequester carbon. It has leased more than 30,000 acres of subsurface pore space from leading timberland REIT Weyerhaeuser (NYSE: WY) in Louisiana. Weyerhaeuser will continue to manage the forest while receiving fees for leasing the pore space to Occidental. The company signed a similar deal with Manulife Investment Management to lease 27,000 acres of timberland in Western Louisiana for a potential carbon sequestration hub. 

    The overlooked upside potential of Buffett’s top oil pick

    Most investors see Buffett’s continued buying of Occidental Petroleum stock as a bet on oil prices. While that’s certainly the case, investors shouldn’t overlook the enormous upside potential of the company’s emerging CCS business. It could provide a big boost for Buffett’s investment in the coming years if the market develops as Occidental anticipates.   

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

    The post This top Warren Buffett stock has enormous overlooked upside potential appeared first on The Motley Fool Australia.

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    Matthew DiLallo has positions in Berkshire Hathaway (B shares), Enterprise Products Partners, and Weyerhaeuser and has the following options: short October 2022 $40 calls on Weyerhaeuser. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Enterprise Products Partners. 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.  

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

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  • Why are ASX 200 energy shares smashing the benchmark on Thursday?

    An oil refinery worker stands in front of an oil rig with his arms crossed and a smile on his face as the Woodside share price climbs today

    An oil refinery worker stands in front of an oil rig with his arms crossed and a smile on his face as the Woodside share price climbs todayASX 200 energy shares are enjoying another strong day today.

    In afternoon trading, the S&P/ASX 200 Index (ASX: XJO) is down 0.11%, having recovered from some steeper earlier losses.

    The S&P/ASX 200 Energy Index (ASX: XEJ), on the other hand, has been trading solidly in the green, currently up 2.13% for the day.

    Leading ASX 200 energy share Santos Ltd (ASX: STO) is up 1.64%, while shares in competitor Woodside Energy Group Ltd (ASX: WDS) are up 2.58%.

    What’s driving investor interest in these ASX 200 energy shares?

    Woodside and Santos both look to be benefiting from a boost in oil prices.

    The Brent crude oil price is up 1.8% over the past day to US$93.60 a barrel. Brent hit six-month lows of US$84.06 on 26 September amid fears of a global slowdown impacting demand.

    But it seems the rebounding oil price has little to do with resurgent demand. Rather it comes following the latest output decision from the Organization of Petroleum Exporting Countries and its allies (OPEC+).

    What did OPEC+ decide?

    If you own ASX 200 energy shares, you may wish to tip your hat to the OPEC+ members.

    Though not everyone is happy with the cartel’s decision.

    Yesterday (overnight Aussie time), the group agreed to reduce their combined oil production by two million barrels per day, commencing in November. That represents their biggest supply cut in two years.

    As Bloomberg reports, Saudi energy minister Prince Abdulaziz Bin Salman said the reduced output levels will remain through the end of 2023, unless there are material changes in the market.

    Nigerian minister of state for petroleum resources Timipre Sylva said falling oil prices would destabilise some of the members’ economies. He added, “OPEC wants prices around $90.”

    While that price offers ASX 200 energy shares like Santos and Woodside a healthy profit margin, the United States government was quick to voice its displeasure.

    The White House stated:

    The president is disappointed by the short-sighted decision by OPEC+ to cut production quotas while the global economy is dealing with the continued negative impact of Putin’s invasion of Ukraine.

    Brent crude prices topped US$120 per barrel in June this year, sending ASX 200 energy shares like Santos and Woodside sharply higher.

    Year to date, the Santos share price is up 22.6% while Woodside shares have soared 58% higher.

    The post Why are ASX 200 energy shares smashing the benchmark on Thursday? 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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  • Why Lake, Pilbara Minerals, PointsBet, and PolyNovo shares are charging higher

    A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.

    A beautiful woman holds up one finger with one hand and has her hand on her waist with the other as she smiles widely as though she is very pleased about something.

    In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) looks set to end its winning streak. At the time of writing, the benchmark index is down 0.15% to 6,806.2 points.

    Four ASX shares that have not let that hold them back today are listed below. Here’s why they are charging higher:

    Lake Resources N.L. (ASX: LKE)

    The Lake Resources share price is up almost 5% to $1.05. Investors have been buying this lithium developer’s shares after it announced a strategic investment and offtake agreement with WMC Energy. The offtake agreement is for up to 25,000 mtpa of battery grade lithium or 50% of the Kachi Project’s production.

    Pilbara Minerals Ltd (ASX: PLS)

    The Pilbara Minerals share price is up 8% to $5.52. This is despite the company announcing the departure of its chief financial officer, Brian Lynn, this morning. Lynn has been with the company for over six years and has chosen to step down in order to spend more time with his family. Pilbara Minerals has commenced a global search for a replacement.

    PointsBet Holdings Ltd (ASX: PBH)

    The PointsBet share price is up 6% to $2.16. This morning this sports betting company announced an agreement with 1/ST Technology to deliver a fully integrated, white-label advance-deposit wagering horse racing betting experience to PointsBet customers across the United States. Management called this “a pivotal moment” for the company’s US expansion.

    Polynovo Ltd (ASX: PNV)

    The PolyNovo share price is up 14% to $1.67. Investors have been buying this medical device company’s shares after it released a trading update. That update revealed that PolyNovo had a record first quarter, with sales growth of 73.3% to $12.5 million. This was driven by strong sales growth in the US and favourable currency movements.

    The post Why Lake, Pilbara Minerals, PointsBet, and PolyNovo shares are charging higher appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended POLYNOVO FPO and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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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  • Down 9% in a month, could the Woolworths share price turn around in October?

    A female Woolworths customer leans on her shopping trolley as she rests her chin in her hand thinking about what to buy for dinner while also wondering why the Woolworths share price isn't doing as well as Coles recentlyA female Woolworths customer leans on her shopping trolley as she rests her chin in her hand thinking about what to buy for dinner while also wondering why the Woolworths share price isn't doing as well as Coles recently

    The Woolworths Group Ltd (ASX: WOW) share price struggled in September, but could there be better days ahead?

    Woolworths shares have fallen 9.49% since market close on 6 September and are currently trading at $33.35 apiece. For perspective, the S&P/ASX 200 Index (ASX: XJO) has lost 0.18% over the same time frame.

    Let’s check the outlook for the Woolworths share price.

    Could the Woolworths share price rise?

    Woolworths is not the only ASX consumer share to fall in the past month. The Coles Group Ltd (ASX: COL) share price has descended nearly 7% since market close on 6 September, while Wesfarmers Ltd (ASX: WES) has lost nearly 2%.

    Amid higher interest rates, average daily spending on groceries fell by 19% in September, The Age reported. However, Jarden believes Woolworths can weather the storm. In comments cited by the publication, Jarden said:

    The value shopper is returning and Aldi is forecast to be the second-fastest growing retailer over the next 12 months, with Woolworths number one.

    We remain cautious on the outlook for the consumer and believe staples and fast-moving consumer goods should perform well against this backdrop

    In the 2022 financial year, Woolworths’ net profit after tax (NPAT) increased by 0.7% to $1,514 million while group sales lifted 9.2%. Woolworths paid a final dividend of 53 cents per share.

    Meanwhile, analysts at Goldman Sachs are positive on the outlook for the Woolworths share price. Goldman has placed a $44.10 price target on the company’s shares. This represents a 32% upside on the current share price. The broker thinks Woolworths shares are trading at an attractive level after their recent falls.

    However, Alto Capital investment manager Tony Locantro has recently placed a sell rating on Woolworths. He said in comments published on The Bull:

    While cost pressures have eased, we’re concerned about the impact from broad cost of living increases on its customers moving forward.

    Share price snapshot

    The Woolworths share price has fallen nearly 15% in the past year, while it has lost more than 12% in 2022 so far.

    For perspective, the ASX 200 has shed more than 6% in the past year.

    Woolworths has a market capitalisation of nearly $40.5 billion based on the current share price.

    The post Down 9% in a month, could the Woolworths share price turn around in October? appeared first on The Motley Fool Australia.

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    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 positions in and has recommended COLESGROUP DEF SET and Wesfarmers 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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  • Why did the Novonix share price crash 27% in September?

    Sad investor watching the financial stock market crash on his laptop computer.Sad investor watching the financial stock market crash on his laptop computer.

    September was a dire month for both the Novonix Ltd (ASX: NVX) share price and the broader S&P/ASX 200 Index (ASX: XJO).

    Interestingly, however, there was no news from the battery technology and materials giant last month.

    But that didn’t stop the market from selling it off. After closing August at $2.42, the Novonix share price plummeted to end September at $1.76 – marking a 27.27% drop.

    Meanwhile, the ASX 200 dumped 7.34% and the S&P/ASX 200 Information Technology Index (ASX: XJI) slumped 10.67%.

    So, what might have gone wrong for the ASX 200 tech stock last month? Let’s take a look.

    What weighed on the Novonix share price in September?

    While there was no news from Novonix in September, there were plenty of factors that could have dragged on its share price.

    Notably, interest rate hikes. The Reserve Bank of Australia and the United States Federal Reserve both hiked rates in a bid to tackle inflation in September, bolstering concerns that a recession could be nigh.

    Such concerns, of course, likely weighed on the broader market too, but rising rates spell particularly bad news for tech stocks.

    That’s because many that are also growth shares and plenty, like Novonix, are yet to turn a profit. Higher rates make borrowing cash more expensive while inflation can diminish the value of future earnings.

    On that note, within the company’s annual report – posted late in August –  its auditors flagged that it’s now “dependant” on capital raising activities to finance its growth, my Fool colleague Zach reports.

    The auditor also noted “material uncertainty” surrounds the company’s future. That likely sounds alarms for risk-averse investors, particularly in economic times such as those we find ourselves.

    With all that in mind, it’s probably not surprising that the Novonix share price trailed the broader market last month. Though, the stock is well versed in trading in the red.

    The Novonix share price is currently 82% lower than it was at the start of 2022. It has also fallen 62% since this time last year.

    For comparison, the ASX 200 has fallen 10% year to date and 6% over the last 12 months.

    The post Why did the Novonix share price crash 27% in September? 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 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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  • Goldman Sachs names the ASX tech shares to buy now

    A woman sits in front of a computer and does some calculations.

    A woman sits in front of a computer and does some calculations.

    Although the tech sector has rebounded this month, it is still down materially year to date.

    This could make it worth considering an investment in the sector if you believe the rebound will continue.

    But which ASX tech shares should you buy? Two that Goldman Sachs is tipping as buys are listed below. Here’s why it rates them highly:

    Life360 Inc (ASX: 360)

    The first ASX tech share that has been tipped as a buy by Goldman Sachs is Life360.

    It is a technology company that operates in the digital consumer subscription services market. The key product in its portfolio is the Life360 app, which has 40 million active users. It offers families features such as communications, driver safety, and location sharing.

    Goldman is very bullish on the company due to its massive market opportunity. Earlier this week, it commented: “We estimate Life360 is exposed to a US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US.”

    The broker currently has a buy rating and $7.50 price target on the company’s shares.

    Readytech Holdings Ltd (ASX: RDY)

    Another ASX tech share that Goldman is bullish on is Readytech.

    It is a technology company that owns a portfolio of enterprise software businesses across several market verticals such as higher education and local government.

    Goldman notes that these businesses operate in market niches that are under-served by both large and small enterprise software competitors. In light of this, its growing levels of recurring revenue, and ultra low churn levels, the broker is expecting Readytech to “continue to grow mid-teens organically while making accretive acquisitions.”

    Goldman Sachs currently has a buy rating and $4.60 price target on its shares.

    The post Goldman Sachs names the ASX tech shares to buy now appeared first on The Motley Fool Australia.

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    Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. and Readytech Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings 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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