Category: Stock Market

If you’re interested in gaining some exposure to the healthcare sector, then Healthco Healthcare and Wellness REIT (ASX: HCW) shares could be for you.

That’s because the team at Goldman Sachs believes the healthcare property company’s shares have major upside potential.

What did Goldman say about this healthcare share?

Goldman is very bullish on Healthco Healthcare and Wellness REIT’s shares and has reiterated its conviction buy rating with a $2.20 price target.

So, with its shares currently changing hands at $1.66, this implies potential upside of 33% for investors over the next 12 months.

In addition, the broker is forecasting a 4.5% dividend yield in both FY 2022 and FY 2023. This lifts the total 12-month return to ~38%.

5 reasons Goldman is bullish

Goldman Sachs has named five reasons that it is bullish on the Healthco Healthcare and Wellness REIT share price.

These include the company’s strong balance sheet, robust demand for its properties, and the attractive valuation of its shares following a period of underperformance. The broker explained:

Year-to-date, HCW has underperformed the REIT index by ~7% as concerns over the macro environment and rising rates have impacted HCW’s share performance. However, the REIT remains one of our top picks in the sector given:

1) its net cash position with over $450mn of liquidity, providing flexibility for near term opportunities, 2) its diversified mix of strong tenant covenants in sub-sectors that are majority government-backed across the care spectrum, mitigating potential tenant credit risks, 3) Healthcare and childcare assets valuations have remained resilient, 4) the expansive forecast future demand for assets across the care spectrum, underpinning development opportunities, and 5) inexpensive valuation, trading below its IPO share price and an ~18% discount to NTA.

And while Goldman acknowledges that there are risks from higher capital costs, it believes the risk/reward on offer is compelling enough to support its conviction buy rating.

Whilst we acknowledge risks remain we believe the current valuation provides an attractive entry point. HCW offers a potential 12m total return of +c.39% at our revised 12-m A$2.20 TP. We maintain our Buy (on CL) rating.

The post 5 reasons to buy this ASX healthcare share: Goldman Sachs appeared first on The Motley Fool Australia.

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More reading

• 2 ASX shares in a sector ready for a massive comeback

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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All eyes will be on the Commonwealth Bank of Australia (ASX: CBA) share price next week.

On 10 August, Australia’s largest bank will be releasing its highly anticipated full-year results.

Ahead of the release, let’s take a look to see what the market is expecting from the banking giant.

What is the market expecting from the CBA result?

According to a note out of Goldman Sachs, its analysts are expecting the banking giant to outperform consensus expectations with its second-half cash earnings.

The broker has pencilled in cash earnings from continued operations (before one-offs) of $4,742 million for the six months. This will be a 1% decline on the prior corresponding period, but ahead of the consensus estimate of $4,546 million.

This will take its full-year cash earnings to $9,488 million for FY 2022, up 9.7% year over year.

From these earnings, Goldman Sachs is expecting the bank to pay a 205 cents per share fully franked final dividend. Interestingly, despite forecasting higher than consensus earnings, the broker’s estimate is lower than the consensus estimate of 208 cents per share.

Goldman’s estimate would mean a full-year dividend of 380 cents per share, up 8.6% on FY 2021’s payout.

What else should you look out for?

Outside its earnings and dividend, arguably the key focus for investors will be CBA’s net interest margin (NIM). Goldman is expecting an improvement in this metric thanks to the rising cash rate. It explained:

We estimate CBA’s 3Q22 NIM was 1.87%, and supported by the early benefits of cash rate rises. We estimate a 2H22E NIM of 1.88%. However, we expect the market will focus more on any updated commentary around the leverage of its NIM to cash rate rises and/or commentary around exit NIMs.

In addition, the broker is expecting the bank’s asset quality to remain strong. It said:

Despite rising interest rates, high inflation, and supply chain disruptions, asset quality has remained strong with CBA reporting a BDD contribution of A$48 mn (-2 bp of total loans) in 3Q22 driven by a slight reduction to credit provisions. For us, the key focus will be around how CBA frames its downside and severe scenarios as part of its expected credit losses (ECL) modeling, which we suspect will need to shift from scenarios based around Covid-lockdowns, to be more focused around stagflation.

Is the CBA share price good value?

Unfortunately, Goldman Sachs continues to believe that the CBA share price is overvalued at the current level.

It has retained its sell rating and $90.45 price target on the bank’s shares.

The post Own CBA shares? Here’s what to expect from the bank’s FY22 results appeared first on The Motley Fool Australia.

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More reading

• Which ASX 200 shares will prove to be dividend heavyweights this earnings season?
• First mover: CBA share price rises amid interest rate changes
• Here is the RBA interest rate outlook according to ASX 200 banks
• How are ASX 200 bank shares responding to the RBA rate increase?
• Up 10% in a month, is the CBA share price now fully valued?

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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ASX shares involved in lithium production have been so hot in recent years that it’s difficult to find cheap buys these days.

But Wilson Asset Management analyst Cooper Rogers reckons he’s found a major resources company where the market is materially undervaluing its lithium operations.

“Mineral Resources Limited (ASX: MIN)’s a buy for us,” he said in a Wilson video.

“Their mining services division is underwritten for a 10% growth on their EBITDA line next year, along with that, we really do like the lithium business.”

Lithium, which is highly sought after for its role in modern batteries, could be a massive cash cow for the company in the coming years.

“We think [the lithium business] is undervalued versus its peers,” said Rogers.

“We think the MD Chris Ellison is going to come out of the full-year result and outline a really strong strategy for that division… that’s a catalyst for this stock to re-rate.”

The company’s preliminary results are scheduled to report on Wednesday.

The Mineral Resources share price has fluctuated widely in 2022, as mining stocks do. It is currently about 5.3% down from the start of the year.

(Almost) everyone reckons this stock is a buy right now

Rogers is not the only one bullish on Mineral Resources Limited.

According to CMC Markets, 10 out of 11 analysts recommend it as a buy. Nine of those 10 rate Mineral Resources as a strong buy.

Last week, The Motley Fool reported that Citibank analysts have a buy rating on the stock and a price target of $73.

That’s a nice 31.5% premium on the Thursday closing price of $55.50.

“Citi is positive on Mineral Resources due to its exposure to iron ore and lithium,” wrote James Mickleboro.

“Its analysts expect the price of the latter to stay higher for longer thanks to strong demand and tight supply.”

Bell Potter has a $75 price target for similar reasons to Rogers.

“Bell Potter is bullish on Mineral Resources due largely to its lithium business,” The Motley Fool reported last week.

“The broker is expecting this side of its business to start yielding increasing returns from FY 2023.”

The post Buy this ASX share for its ‘undervalued’ lithium business: expert appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Brokers name 3 ASX shares to buy today
• Here are the top 10 ASX 200 shares today
• Mineral Resources share price on watch following Q4 update
• How much has Mineral Resources paid in dividends over the last 5 years?

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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The Objective Corporation Limited (ASX: OCL) share price was a strong performer on Thursday.

The information technology software and services company’s shares stormed 7% higher to end the day at $16.60.

Why did the Objective Corp share price shoot higher?

The catalyst for the strong gain by the Objective Corp share price appears to have been a bullish broker note out of Goldman Sachs.

According to the note, the broker has upgraded the company’s shares to a buy rating with an improved price target of $18.90.

Based on the current Objective Corp share price, this implies potential upside of 14% for investors over the next 12 months even after yesterday’s strong gain.

What did the broker say?

One of the reasons that Goldman is bullish on the company is its Regworks offering, which it believes has a major total addressable market (TAM). Goldman explained:

While more difficult to quantify based on the broad applicability of Objective RegWorks (regulatory compliance software) across public sector use cases, we are attracted to the large potential market opportunity. OCL estimates its RegTech addressable opportunity at A$27bn, based on the administrative burden of regulation. Given the wide reach of regulation across all parts of the economy and layers of government, arguably RegWorks has the largest TAM of any part of OCL’s product suite per our estimates.

In addition, the broker believes that recent weakness in the Objective Corp share price has created an attractive entry point for investors. Particularly given its forecast for an earnings per share compound annual growth rate of 20% between FY 2022 and FY 2025

Since initiating in April, we highlight two key developments driving our more constructive view: (1) a more attractive entry point, with the shares now having de-rated -40% since late 2021; and (2) increased conviction around OCL’s growth outlook as new products scale. We now see OCL’s valuation as attractive compared to SaaS peers after adjusting for its growth outlook and conservative accounting policies (all R&D expensed).

The post Goldman Sachs just slapped a buy rating on this ASX tech share appeared first on The Motley Fool Australia.

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More reading

• Expert says Telstra is a blue chip ASX 200 share to buy
• 3 ASX 200 shares to buy for a post-COVID resurgence: experts
• Brokers name 2 ASX dividend shares to buy now
• 3 reasons this broker says Woolworths shares are a strong buy
• The retailer that’s a ‘recession-proof’ ASX share to buy: analyst

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 Objective Corporation Limited. 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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If you’re looking to bolster your portfolio with some blue chip ASX 200 shares, then it could be worth considering telco giant Telstra Corporation Ltd (ASX: TLS).

Why is Telstra a blue chip ASX 200 share to buy?

Analysts have become bullish on this telco giant this year after its transformative T22 strategy delivered on expectations and underpinned a return to growth in FY 2022.

For example, commenting on its first half results earlier this year, the team at Morgans said:

TLS’s 1H22 result showed the second consecutive half of underlying growth, with underlying EBITDA up 5%, underlying EPS up substantially and the DPS flat yoy. Mobile was the star performer. Performance is tracking in the right direction and FY22 guidance was re-iterated.

And with the company’s T22 strategy soon to be replaced with the growth-focused T25 strategy, the company’s outlook is now arguably the best it has been in a decade.

This is particularly the case given the increasingly rational competition in the mobile market, the ongoing adoption of average revenue per user (ARPU)-boosting 5G internet by consumers, and its recent acquisition in the pacific.

Where are its shares heading to from here?

Morgans currently has an add rating and $4.56 price target on its shares. Based on the latest Telstra share price of $4.00, this implies potential upside of 14% for investors over the next 12 months.

But it gets even better for investors. Morgans continues to forecast fully franked dividends per share of 16 cents in both FY 2022 and FY 2023.

Based on where its shares are trading today, this will mean attractive 4% yields for investors in both years. This stretches the 12-month total return on offer with its shares to a sizeable 18%.

The post Expert says Telstra is a blue chip ASX 200 share to buy appeared first on The Motley Fool Australia.

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More reading

• ‘Competition is key’: Why Telstra shares are in the ACCC naughty corner today
• Is the Telstra share price on the way back up?
• Top brokers name 3 ASX shares to buy next week
• Why this ASX 200 giant ‘looks attractive’ right now: expert
• Why is the Telstra share price lagging the ASX 200 on Thursday?

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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Although it doesn’t make the front page of newspapers any more, the COVID-19 pandemic unfortunately refuses to go away.

In fact, hospitalisations and deaths were disturbingly up the past few weeks as Australians battled through winter.

So despite more than two years having passed since the S&P/ASX 200 Index (ASX: XJO) hit its coronavirus panic trough, many post-COVID recovery stocks have yet to reach their full potential.

This is great news for investors, as it’s not too late to buy into some of these ASX shares.

In fact, some of them have discounted nicely in 2022 as the general market malaise dragged them down.

Here are three to buy, as nominated by Wilson Asset Management analysts:

Travel’s back. And busier than before the pandemic

The sector most obviously hit by the pandemic has been the travel industry.

While online travel agent Webjet Limited (ASX: WEB) has seen its share price double since the dark days of 2020, senior analyst Shaun Weick feels like there’s plenty more upside.

“Webjet’s a buy for us,” he said in a Wilson video.

“If you look at consensus analyst estimates on this name, you’re essentially implying a recovery to pre-COVID in the second half of 2023. We think that’s too conservative.”

Webjet has its financial year end each March, so had already reported on its results back in May, when it revealed it had returned to profitability.

“We think the market’s underappreciating the technology investments that they’ve made and the upside that provides.”

3 reasons why CSL will go gangbusters

While CSL Limited (ASX: CSL) had made a lot of money for investors for decades, the pandemic period has been lean.

Its blood plasma collection business in North America took a massive hit due to lockdowns and people generally wary of physically visiting donor centres.

Its share price, therefore, has still yet to approach its pre-COVID high.

But Wilson analyst Anna Milne reckons that’s all about to turn around.

“Firstly, there’s the Behring business, which is plasma-derived products — that’s been under-earning for a number of years now, and we think it’s really just starting to hit its straps,” she said.

“Sequiris is the vaccine business… it’s been a pretty horrendous flu season Down Under and we think that’ll probably translate to the same in the northern hemisphere.”

Then there’s the new $16.4 billion Vifor Pharma business, which CSL put in a takeover offer for late last year.

“The Vifor transaction, which has been delayed, but management is still very confident that it’s going to close and we’re really excited about the pipeline of drugs there,” said Milne.

“So CSL’s a buy.”

CSL will reveal its preliminary results on 17 August.

Strong assets and a lucrative market reopening?

Winemakers are not obvious COVID victims, but Treasury Wine Estates Ltd (ASX: TWE) would argue very much that it was.

Back in 2020, the Australian government demanded an international enquiry into the origins of COVID-19. Beijing took exception to this and placed punitive tariffs on certain Australian imports.

And China was one of the largest markets for Treasury Wine at the time.

The stock price plunged, and the company attempted to diversify its markets to restore its revenues.

Milne feels like the company can put its woes behind it now.

“Firstly, it’s got a really strong asset backing. It’s got the wine itself, then it’s got the vineyards — so that provides a bit of a backstop to the share price in these kinds of volatile environments,” she said.

“Additionally, I don’t want to speak too soon, but with a new Australian government, it does like China-Australia relations might be having a bit of a cautious reset.”

Treasury Wine will report its annual results on 18 August.

The post 3 ASX 200 shares to buy for a post-COVID resurgence: experts appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Friday
• ‘We are in for the long haul’: Rio Tinto CEO defends future spending in the face of recession fears
• NRW share price leaps 11% on guidance upgrade for FY22
• Which ASX 200 shares will prove to be dividend heavyweights this earnings season?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tony Yoo has positions in CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has recommended Treasury Wine Estates Limited and Webjet 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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If you’re an income investor then you might want to read on. Listed below are two ASX dividend shares that have just been rated as buys by brokers.

Here’s what they are saying about these top ASX dividend shares:

Janus Henderson Group (ASX: JHG)

The team at Bell Potter think that this fund manager could be a dividend share to buy. It has a buy rating and $43.50 price target on the company’s shares.

While Janus Henderson has been facing a number of challenges, the broker believes that now could be the time to buy before the tide turns.

It explained:

Falls in investment markets have reduced AUM and profitability. The appearance of an activist investor has not led to corporate activity which may have disappointed some investors. The change of CEO means a new strategy and that will take time to deliver tangible results.

But now might be a good time to revisit: markets should start to recover; the company has a new direction and there is still the prospect of M&A (we feel JHG could easily be swallowed by a larger group).

As for dividends, the broker is forecasting dividends per share of 190 cents in FY 2022, 172 cents in FY 2023, and 181 cents in FY 2024. Based on the current Janus Henderson share price of $36.33, this will mean yields of 5.2%, 4.7%, and 5%, respectively.

Stockland Corporation Ltd (ASX: SGP)

Analysts at Goldman Sachs are positive on Stockland. It is a residential and land lease developer and retail, logistics and office real estate property manager. The broker has just initiated coverage on Stockland with a buy rating and $4.44 price target.

Goldman likes Stockland due to its refreshed corporate strategy and attractive valuation. The broker explained:

We believe that investor concerns regarding the housing cycle are reflected in current pricing. Furthermore, we believe SGP is progressing on its recently refreshed corporate strategy, noting that recycled proceeds from the completed sale of its low returning Retirement division provides flexibility to accelerate its commercial development pipeline and its Communities (including Land Lease) business and see the shares as attractively valued both relative to peers and historically.

SGP currently trades at a ~10% discount to last stated NTA (vs. LT average of ~1.14x), and at a FY23 FFO multiple of ~12x (vs. our REIT coverage average of 17x).

In respect to dividends, the broker is forecasting dividends per share of 26.6 cents in FY 2022, 26.7 cents in FY 2023, and 26.9 cents in FY 2024. Based on the current Stockland share price of $3.86, this will mean yields of 6.9%, 6.9%, and 7%, respectively.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Can ASX dividend shares deliver during earnings season?
• Could ASX earnings season be ‘a lot better than what the market is positioned for’?

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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The Woolworths Group Ltd (ASX: WOW) share price could be good value at current levels.

That’s the view of the team at Goldman Sachs, which recently reiterated their buy rating and $40.50 price target on the company’s shares and added them to the broker’s coveted conviction buy list.

Why does Goldman think that Woolworths shares are a strong buy?

There are three key reasons that Goldman Sachs is bullish on Woolworths’ shares.

The first is the broker’s belief that Woolworths will deliver strong earnings growth between FY 2022 and FY 2024. This is thanks to the strength of its key Australian supermarkets business. It said:

Superior growth in core business: we forecast CAGR of 6.6% and underlying NPAT of 14.1% over FY22-24e, with key driver being market share gain of AU Foods business at comp sales growth of FY23/24 8.8% and 6.6% respectively driven by effective cost-price pass through and additional mix improvement with relatively stable volume growth. This implies that EBIT margins will be well protected, and we forecast 50bps increase to 5.0% to FY24e.

Another reason for its positive stance is the retail media business. Goldman believes this relatively underappreciated business has a material growth opportunity with strong margins. The broker explained:

Adjacent revenues with higher margins: with a highly loyal consumer base and high frequency contact points, we believe that the retail media business is the next material growth lever for WOW. We have factored in A$1.1B sales, with 30% EBIT margin (unchanged) in 2030 and discounted value of A$4B adds ~6% to WOW’s EV.

Finally, the broker sees value in the Woolworths share price at the current value and feels that a rerating to higher multiples is possible. It said:

Valuation re-rating: since 2018, WOW has traded at an average 1yr fwd P/E of 25.7x, vs COL (Neutral) of 21.6x, with average multiple premium of 4.0x. Currently, WOW is at 24.3x, with multiple premium at 1.8x, its lowest level since 2018, and we believe this is unwarranted as we see WOW to be still the superior operator with faster growth outlook. We expect better comps and margin management to become apparent, and the stock to re-rate.

The post 3 reasons this broker says Woolworths shares are a strong buy appeared first on The Motley Fool Australia.

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More reading

• The Woolworths share price leapt 5% in July, what’s in store now?
• Does rising inflation put the Woolworths share price in the buy zone right now?
• Have Woolworths shares been a market-beating investment over the past 5 years?
• Broker names 2 ASX dividend shares to buy next week
• Own Woolworths shares? Here’s what a top broker is saying about its latest acquisition

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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With interest rates rising rapidly and an economic downturn expected to follow, the retail sector is somewhat on the nose with ASX investors at the moment.

But one analyst reckons he’s found a retailer stock to pick up now that can withstand plummeting consumer confidence.

“Lovisa Holdings Ltd (ASX: LOV)’s a buy for us,” said senior analyst Shaun Weick in a Wilson Asset Management video.

“We think this one’s a diamond in the rough.”

Weick admitted his team is “cautious” on the retailer stocks because of the gloomy economic outlook.

“But we think fast fashion jewellery is largely recession-proof.”

The share price for Lovisa has lost around 11% so far this year. It does pay out a handy dividend yield of 3.1%, according to Google Finance.

Lovisa’s expansion strategy

According to Weick, the company is banking on new store rollouts to fuel future growth. 

“We can see capacity for this business to more than triple its current footprint,” he said.

“They’ve opened up five new markets recently. And if we look at management’s LTIs [long-term incentives], they suggest that there’s significant upside to consensus earnings expectations.”

Lovisa is scheduled to report its preliminary numbers on 24 August.

Other professionals also share Weick’s enthusiasm for the jewellery retailer. Eight out of 10 analysts surveyed on CMC Markets currently rate Lovisa as a strong buy.

And just last week, The Motley Fool reported that Morgans analysts thought Lovisa could end up as “one of the biggest success stories in Australian retail”.

That team thought the dividend could grow immensely in the future from international expansion.

“We do not think there is any lack of opportunity,” a Morgans memo read.

“In the US, for example, Lovisa now has 81 stores, representing 0.25 stores for every million people, compared to Australia with 158 stores, [which is] 6.15 stores for every million people.”

The Motley Fool’s James Mickleboro reported that Morgans has a buy rating and a $21.50 price target.

The Lovisa share price closed Thursday at $17.62.

The post The retailer that’s a ‘recession-proof’ ASX share to buy: analyst 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 recommended Lovisa 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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On Thursday, the S&P/ASX 200 Index (ASX: XJO) gave back its morning gains and ended the day a fraction lower. The benchmark index fell 1 point to 6,974.9 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to end the week on a mildly positive note despite a mixed night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 10 points or 0.15% higher this morning. In the United States, the Dow Jones fell 0.25%, the S&P 500 edged 0.1% lower, and the Nasdaq pushed 0.4% higher.

Oil prices fall again

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a tough finish to the week after oil prices tumbled again. According to Bloomberg, the WTI crude oil price is down 2.5% to US$88.42 a barrel and the Brent crude oil price is down 3% to US$93.91 a barrel. Fears of a demand slowdown after a build in U.S. crude and gasoline inventories sent oil prices to multi-month lows.

ResMed results

The ResMed Inc (ASX: RMD) share price will be one to watch on Friday. This morning the medical device company is releasing its fourth quarter and full year results. In respect to its full year result, the market is expecting ResMed to report a profit after tax of US$825.6 million for the 12 months ended 30 June.

Gold price rebounds

The shares of gold miners such as Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a decent end to the week after the gold price rebounded overnight. According to CNBC, the spot gold price is up 1.9% to US$1,810.5 an ounce. This followed a pullback in the US dollar and rising US-China tensions.

Elders rated as a buy

The Elders Ltd (ASX: ELD) share price could be great value after recent weakness according to Goldman Sachs. This morning the broker reiterated its conviction buy rating and $21.00 price target on the company’s shares. Commenting on the underperformance of its shares, Goldman said: “We believe the market is applying a higher weight to the potential of a cyclical downturn in seasonal conditions over the long term structural growth opportunities still in front of the company.”

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

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More reading

• ‘We are in for the long haul’: Rio Tinto CEO defends future spending in the face of recession fears
• NRW share price leaps 11% on guidance upgrade for FY22
• Which ASX 200 shares will prove to be dividend heavyweights this earnings season?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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 ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool Australia has recommended Elders 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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