Category: Stock Market

The Polynovo Ltd (ASX: PNV) share price is heading south again today despite the company not releasing any announcements.

Since the start of the week, the medical device company’s shares are down 3% to currently trade at $1.295 each.

While down 1.15% today, this isn’t the case for the S&P/ASX 200 Index (ASX: XJO) which is 1.59% higher to 6,535 points at the time of writing.

Let’s take a look at what is weighing down the Polynovo share price of late.

What’s impacting Polynovo shares?

Besides the recent buying action by the company’s board, it has been relatively quiet for Polynovo.

Its last trading update came in early April when management provided a snapshot of the company’s third-quarter results.

Since then, Polynovo shares tumbled to a multi-year low of 83.5 cents before rebounding to February 2022 levels.

The share price weakness came off the back of negative investor sentiment across the ASX following fears surrounding a possible recession.

However, added to the mix is the large number of short-sellers on Polynovo’s registry.

The latest short position report by the Australian Securities & Investments Commission (ASIC) reveals the level of short interest within companies.

Polynovo remains in the top 10 of short interest ASX stocks, with 10.95% of its shares being shorted by investors.

In case you aren’t aware, short-selling is a common trading strategy that aims to profit from the fall in the price of a security. The goal is for an investor to borrow shares then sell them and buy them back at a lower price for a profit.

On top of this, the S&P/ASX 200 Healthcare (ASX: XHJ) sector has fallen by 4.63% in the past week and is down 15% in 2022.

Yet perhaps the biggest selling pressure has come from Polynovo’s removal from the S&P/ASX 200 Index (ASX: XJO) which took effect on Monday.

The S&P Dow Jones Indices announced changes in its quarterly rebalance earlier this month.

Polynovo’s removal from the ASX 200 means that fund managers must abide by their investing mandate which permits them to only buy shares included in specific indices. It’s commonplace that shares can climb or fall after being included in or excluded from a particular index.

Polynovo share price summary

While staging a small rebound from early May onwards, the Polynovo share price is down 15% year-to-date.

When looking at the past 12 months, its shares are deep in the red by 53%.

Based on today’s price, Polynovo presides a market capitalisation of about $856 million.

The post How have Polynovo shares been performing since leaving the ASX 200? appeared first on The Motley Fool Australia.

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More reading

• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• Buying the dip: 3 ASX All Ord shares insiders are loading up on
• Why is the Polynovo share price rising while other ASX 200 stocks are plummeting?

Motley Fool contributor Aaron Teboneras 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. 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 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.

ESG investing — which stands for environmental, social, and corporate governance — gives investors a chance to look at companies from a different viewpoint. Traditionally, a lot of investment decisions were based solely on a company’s financials, but ESG investing looks past the numbers and into a company’s role in society. By no means does ESG investing mean ignoring a company’s financials and conventional investment wisdom, but those aren’t the only factors in ESG investing decisions.

Here’s a quick look at the components of ESG:

• The environmental portion of ESG investing focuses on a company’s current role in contributing to environmental problems, as well as its commitment to addressing imminent issues like climate change.
• When you examine a company on its social standing, you pay attention to how it interacts with employees, customers, and the outside community, which may not impact its bottom line.
• Governance focuses on transparency, compliance, and truthfulness regarding finances and operations.

Here are two reasons you should become an ESG investor and one reason you shouldn’t.

1. You can invest in companies that align with your values

ESG investing allows you to make sure you’re putting your money into companies that align with your values. The main purpose of investing is to make money, but your personal values and financial goals don’t have to be mutually exclusive. Just because a company is committed to operating with high ESG standards doesn’t mean it can’t do so profitably. 

If you’re passionate about fighting climate change, for example, you have the chance to invest in companies making strides in renewable energy and green operations. If you’ve been a victim of a data leak, you may feel strongly about customer data privacy and focus on companies in cybersecurity. Whatever the case, you can make sure your money is going toward companies aiming to positively impact things you care about.

2. You can invest in ESG-themed funds

Luckily for investors, more funds are increasingly being put together that are focused on particular themes of ESG investing. With more than 600 ESG funds in the U.S., if you care about an ESG cause, there’s likely a fund specific to it. You can also choose not to focus on issue-specific funds and invest in funds covering all ESG aspects as a whole.

For example, the iShares ESG Aware MSCI USA ETF (NASDAQ: ESGU), the second-largest ESG fund by assets under management, contains mid- and large-cap stocks of U.S. companies that “have positive environmental, social, and governance characteristics,” and has the highest MSCI ESG fund rating possible. If you don’t want to be limited to just the U.S., there are also international funds for you, like the Vanguard ESG International Stock ETF (NYSEMKT: VSGX), which contains companies of all sizes from non-U.S. countries.

Some ESG funds may seem contradictory

One thing that may stick out when you’re looking into ESG funds is that some of the companies the ESG fund invests in don’t seem to fit its objectives. This is generally due to one of two reasons. First, there’s no universal method for selecting companies for ESG funds; some funds consider all three aspects of ESG, some consider two aspects, and some may only consider one. If an ESG fund is considering one aspect and a company fits the criteria while having a bad standing on the other two, it could still be included.

Another reason you may see an apparent contradiction is that although a company may seemingly go against the purpose of an ESG fund by its current operations, its commitment and investments in change may warrant a spot. Take big oil, for example. It’s not far-fetched to see green ESG funds containing significant stakes in big oil companies. Yes, they play a large role in harming the environment right now, but they also make huge investments in green innovation that could change the future. 

If your values align strongly around a particular aspect of ESG, be sure to look past the fund’s name and stated mission and into its holdings. You may personally find some funds misleading and decide it goes against your investment objective. More than anything, just make sure you’re aware. 

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

The post 2 good reasons to become an ESG investor — and 1 reason you shouldn’t appeared first on The Motley Fool Australia.

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More reading

• ‘The largest unmet medical need in human health’: Why this ASX biotech share is surging 28% today
• Fortescue share price rebounds 3% today
• What’s boosting the Qantas share price on Tuesday?
• How to start investing in stocks: This ASX 200 share is where I’d begin
• Here’s why the Beach Energy share price is leaping 4% today

Stefon Walters 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. 

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

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The Recce Pharmaceuticals Ltd (ASX: RCE) share price is rebounding after hitting a near multi-year low of 56 cents yesterday.

This comes after the pharmaceutical company provided an update on its development of a new class of synthetic anti-infectives.

At the time of writing, the ASX biotech share is soaring 28.32% to 73 cents.

What’s pushing the Recce share price higher?

The company has reported positive results for its broad-spectrum antibiotic Recce 327 drug today.

The phase I study assessed the safety and tolerability of Recce 327 in patients with sepsis.

As such, investigators reviewed the data and found that all 10 male subjects indicated a good safety and tolerability record.

The healthy patients received the cohort six dosing at 4,000mg – an 80-fold increase from cohort one at 50mg.

Following the successful results, the Independent Safety Committee will carefully review the cohort six data. Once completed, the Committee will make a recommendation for the dosage limit and the commencement of testing with the next group of patients.

What did Recce management say?

Recce CEO James Graham commented:

We are pleased with these data which builds on previous results and strongly supports the potential of RECCE 327 as a new treatment option for patients with sepsis.

We look forward to continuing to work with the Independent Safety Committee and further evaluating RECCE 327’s safety and tolerability profile in additional cohorts.

Recce is conducting the study at Adelaide’s CMAX clinical trial facility. It is seeking to evaluate seven to 10 healthy subjects per dose across eight cohorts.

Recce is aiming to wrap up the phase I trial by the second quarter of 2022.

In addition, the PEW Charitable Trusts global antibiotic pipeline review noted that “R327 is the only clinical-stage new class of antibiotic in the world being developed for sepsis, the largest unmet medical need in human health”.

Recce share price snapshot

The ASX biotech share has tumbled 33% in 2022 despite today’s outstanding gains.

For context, the S&P/ASX 200 Healthcare (ASX: XHJ) sector is down 15% over the same time frame.

Based on today’s price, Recce presides a market capitalisation of roughly $113.71 million.

The post ‘The largest unmet medical need in human health’: Why this ASX biotech share is surging 28% today appeared first on The Motley Fool Australia.

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More reading

• 2 good reasons to become an ESG investor — and 1 reason you shouldn’t
• Fortescue share price rebounds 3% today
• What’s boosting the Qantas share price on Tuesday?
• How to start investing in stocks: This ASX 200 share is where I’d begin
• Here’s why the Beach Energy share price is leaping 4% today

Motley Fool contributor Aaron Teboneras 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 Fortescue Metals Group Limited (ASX: FMG) share price is rebounding on Tuesday.

In afternoon trade, the mining giant’s shares are up 3% to $17.52.

Why is the Fortescue share price rising today?

Investors appear to have been picking up Fortescue shares today on the belief that they were oversold on Monday.

The Fortescue share price started the week with a sizeable decline after seaborne iron ore prices plunged in response to sharp falls in the futures markets.

With things looking a little more stable for iron ore prices today, Fortescue, BHP Group Ltd (ASX: BHP), and Rio Tinto Limited (ASX: RIO) shares are rebounding.

Are its shares good value?

Despite the recent weakness in the Fortescue share price, brokers aren’t recommending investors jump in.

In fact, none of the major brokers currently have a buy rating on its shares.

Though, it is worth noting that Macquarie’s neutral rating and $20.00 price target does imply meaningful upside of 14% from current levels.

Elsewhere, the bears at Goldman Sachs have a sell rating and lowly $13.50 price target on the company’s shares. Its analysts see far more value in BHP and Rio Tinto and have buy ratings on both.

The post Fortescue share price rebounds 3% today appeared first on The Motley Fool Australia.

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More reading

• Fortescue’s Twiggy adamant there’s ‘not a snowflake’s chance in hell’ of recession
• Why Bega, Fortescue, Santos, and Silver Lake shares are tumbling lower
• Why are ASX 200 iron ore shares getting hammered on Monday?
• Fortescue share price plunges 7%, but here’s why Twiggy’s not worried about a Chinese iron ore cartel
• Fortescue share price sinks 5% as iron ore price slides

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. 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 Qantas Airways Limited (ASX: QAN) share price is leaping ahead today.

Qantas shares have risen 2.6% and are currently trading at $4.545. In comparison, the S&P/ASX 200 Index (ASX: XJO) is up 1.41%.

Let’s take a look at what could be giving this ASX travel share a boost.

Qantas shares rise

Qantas shares are jumping, but it is not the only ASX 200 travel share on the rise today. Webjet Limited (ASX: WEB) shares have risen 3.2%, while Flight Centre Travel Group Ltd (ASX: FLT) shares are up 4.19%.

In today’s news, Qantas has ditched the mask mandate on selected international flights. This includes flight paths between Queensland, New South Wales and Western Australia to the USA, United Kingdom and Rome. An internal memo to Qantas staff cited by Nine News stated:

The change to in-flight mask requirements on some international flights is an important step in our transition to living with COVID, and we welcome this change

Meanwhile, a solution to another international travel barrier is also in focus today. The use of Australian digital COVID-19 vaccine certificates in restaurants and tourist attractions overseas could become easier in the future.

The Sydney Morning Herald reported Australia’s Federal Health Minister Mark Butler is meeting with G20 leaders to discuss reducing “impediments for travellers as they cross borders“. This could include a pilot program to universally recognise vaccine passports from multiple nations including Australia, Canada, Brazil and the United States.

In other news, Qantas announced a new sustainability partnership earlier this week. The airline will work with Airbus to establish a domestic sustainable aviation fuel industry. This involves a US$200 million investment.

Qantas share price snapshot

The Qantas share price has dropped nearly 3% in the past 12 months, while it has slumped more than 9% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has shed nearly 10% in a year.

Qantas has a market capitalisation of about $8.6 billion based on today’s share price.

The post What’s boosting the Qantas share price on Tuesday? appeared first on The Motley Fool Australia.

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• Why are ASX 200 travel shares lifting off on Monday?
• Qantas share price lifts amid new sustainability partnership
• What happened to the Qantas share price today?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• How did ASX 200 travel shares perform amid today’s sell-off?

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It may seem like a pretty scary time to have your money invested in ASX 200 shares.

After all, the S&P/ASX 200 Index (ASX: XJO) is down 14% over 2022 thus far. And many prominent ASX 200 shares have fallen far further than that.

But the reality is that periods like the one we’re in have often proven to be a perfect time to get started in investing. As the saying goes, ‘buy low, sell high’.

But where should one get started? There are hundreds of ASX shares to choose from. Not to mention exchange-traded funds (ETFs) or international shares.

I’ve talked about the conglomerate Washington H. Soul Pattinson and Co Ltd (ASX: SOL) before, and why I think that company is a good starting point. Well, here is another ASX 200 share investment that I personally think would also make a fantastic starting point.

Start with this ASX 200 share

It’s Coles Group Ltd (ASX: COL).

We all know Coles. It’s the second-largest supermarket chain in Australia, and services millions of Australians every year.

So, why this ASX 200 share?

Well, I think it’s important for a beginner to understand they are investing in a business, not just a share.

Coles is not an overly complicated business. Most of us would be able to get a handle on how a supermarket makes a crust. Plus, I think it is beneficial for a new investor to be able to go to one of ‘their’ stores and see how the business works and fares.

In addition, Coles is arguably a fairly safe investment. That doesn’t mean its shares can’t fall dramatically in value from time to time. But we all need (and will keep needing) to eat. That doesn’t change if the economy is in recession, if we have high inflation (or deflation, for that matter), or if interest rates go up.

Many Australians use Coles to fulfil this basic need, and I don’t see this changing too much in the future. It’s an efficient business that will arguably always be fairly competitive when it comes to the prices of food, drinks, and household essentials.

The benefits of dividends

Coles shares also pay a pretty robust dividend. At present, its shares offer a dividend yield of 3.6%, which also comes with full franking credits. I also believe a dividend-paying share is a great thing for a beginner investor, since it demonstrates how owning shares of a business can put money back into your pocket.

If an investor bought Coles shares today as their first investment, they can likely expect their first dividend payment in September.

No business is perfect, and Coles is certainly not a ‘double your money in two weeks’ kind of stock. But that’s precisely why I think it will make for a great starting ASX 200 share.

The post How to start investing in stocks: This ASX 200 share is where I’d begin appeared first on The Motley Fool Australia.

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More reading

• The ANZ share price has tumbled 24% from its 2022 high. Is it time to pounce?
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• Morgans is urging investors to buy these 2 ASX 200 shares for this challenging environment
• Why is the Premier Investments share price falling today?
• ASX 200 midday update: BHP and Rio Tinto rebound, Westpac rated as a buy

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET and Washington H. Soul Pattinson and Company 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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It’s a good day on the market for the Beach Energy Ltd (ASX: BPT) share price despite no word having been released by the company.

The energy company’s stock might be gaining due to higher oil prices. The black liquid’s value lifted overnight, reportedly on the back of supply concerns.

At the time of writing, the Beach Energy share price is $1.6125, 4.03% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) has lifted 1.51% at the time of writing with the S&P/ASX 200 Energy Index (ASX: XEJ) outperforming all other ASX 200 sectors.

Let’s take a closer look at what might be going on with the oil and gas company on Tuesday.

Beach Energy share price gains alongside oil prices

Beach Energy’s stock is lifting today, tracking upwards with both global oil prices and its home sector.

The Brent crude oil price lifted 0.9% to US$114.13 a barrel overnight, according to CommSec. Meanwhile, the West Texas Intermediate crude price rose 0.6% to reach US$110.27 a barrel.

The rise was likely due to concerns oil supply will remain tight amid continued sanctions on Russian oil and despite worries of a recession in the US, according to Reuters.  

The news is probably helping the energy sector outperform on Tuesday. It’s currently 3.33% higher, coming in as today’s best-performing ASX 200 sector.  

Meanwhile, the Beach Energy share price is the sector’s third-best performer, behind Paladin Energy Ltd (ASX: PDN) and Whitehaven Coal Ltd (ASX: WHC). They’ve lifted 9.2% and 7.05% respectively at the time of writing.

Beach’s share price is also likely recovering from yesterday’s 8% tumble. That drop followed news the company is prioritising a new opportunity over the development of an existing reserve.

Today’s gain included, the Beach Energy share price is around 28% higher than it was at the start of 2022. It has also gained approximately 26% since this time last year.

The post Here’s why the Beach Energy share price is leaping 4% today appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
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• ASX 200 midday update: PointsBet jumps, energy shares sink, Vicinity’s upgrade
• Despite recent volatility, the Beach Energy share price has still gained over the past 3 weeks. Here’s why
• 5 things to watch on the ASX 200 on Friday

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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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.

The recent bear market has left many investors scared and reluctant to invest. Many one-time high-flyers in technology, both inside and outside the Nasdaq Composite, now trade at a fraction of their highs. The Composite itself is down about 31% year to date. 

However, that bear market means that $1,000 buys a lot more stock than it did a year ago. To that end, the market has priced Amazon (NASDAQ: AMZN) and The Trade Desk (NASDAQ: TTD) well within the range of such investors.

Amazon stock is trading at a substantial discount

Until recently, Amazon shareholders with only $1,000 to invest would have had to settle for a partial share. But now that Amazon just split its stock 20-for-1, small-scale investors have an easier time buying whole shares of this e-commerce and cloud giant.

Even with an extensive online retail footprint, consumers have bought less online, which has hurt Amazon stock. Investors have sold off as its North America and International divisions reported negative operating income.

Still, Amazon Web Services, which pioneered the cloud computing industry, continues to fire on all cylinders. It made up only 16% of Amazon’s revenue in the first quarter of 2022, but that revenue grew by 36% year over year.

This far exceeded the 7% revenue growth for the company over the same period in Q1. That revenue, which amounted to over $116 billion, still led to an overall net loss of $3.8 billion, down from an $8.1 billion profit in the year-ago quarter. This slower revenue growth has likely contributed to a 45% drop in Amazon’s stock price from its 52-week high. 

Nonetheless, analysts believe it can recover to 12% revenue growth for 2022. Moreover, the lower stock price has taken the price-to-earnings ratio to 50, a substantial discount for a stock that has often sold for over 100 times earnings in recent years. Given cloud resilience and a likely retail recovery, such a price point could make today a good time to start adding Amazon positions. 

The Trade Desk’s stock sells at a 60% discount at the moment

Investors who don’t know this company may assume it has something to do with trading stock. While it most certainly operates a market, this particular trade desk buys available advertising inventories.

Additionally, to foster a competitive advantage, it helps clients tailor media campaigns and set spending parameters to ensure they buy ad spaces that would enhance the marketing goals of clients. And it utilizes further advantages through software. Thanks to a new platform called Solimar, it can work around privacy updates from Apple and Alphabet. Also, with its Unified ID 2.0 solution, clients no longer need access to third-party cookies, a concern that has hurt some media stocks in recent months.

In the first three months of 2022, its revenue of $315 million surged by 43% year over year. This means revenue growth had remained consistent with 2021, when revenue also grew by 43%. Though the company reported a $15 million GAAP loss, non-GAAP income rose 50% to $105 million when excluding stock-based compensation and an income tax adjustment.

Still, The Trade Desk also predicts modest slowing as it forecast $364 million in second-quarter revenue, which would mean a 30% surge year over year if that figure holds.

Investors have turned on the company amid the more modest increases, and it sells at a nearly 60% discount to the 52-week high. However, the price-to-sales ratio of 18 is a two-year low and has fallen from 50 in November. This discount and its growth potential could make it a great time for a starter investment. 

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

The post Nasdaq bear market: Where to invest $1,000 right now appeared first on The Motley Fool Australia.

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Will Healy has no position in any of the stocks mentioned. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and The Trade Desk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, and The Trade Desk. 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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We seem to have turned a corner with ASX bank shares. The ASX 200 banks have endured some of the worst selling pressure of recent weeks. Nowhere is that more clear than the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price.

ANZ shares are up a healthy 2.29% so far today at $21.88 a share. That’s a very pleasing step up from the lows under $21 that we saw on Friday last week. But ANZ shares are still down by 14% over the past month alone. They also remain down by more than 20% in 2022 thus far.

ASX bank shares have a rough start to 2022

Indeed, since we saw this bank hit a 2022 high of around $28.75 a share back in January, ANZ shares have given up around 24% of their value.

So with these kinds of losses under the belt, could it be time to pounce on ANZ shares?

Well, one investor who thinks so is Hugh Dive of Atlas Funds Management. In a recent piece for Livewire, Dive argued that ASX bank shares like ANZ are well placed to weather any inflationary pressures that might come our way. Here’s some of what he said:

Rising interest rates have historically seen expanding bank profit margins, as interest rates paid on loans increased immediately… Rising interest rates increase the benefits banks get from the billions of dollars held in zero or near-zero interest transaction accounts that can be lent out profitably.

The May reporting season showed that Australia’s banks are in good shape and face a better outlook than many sectors of the Australian market…

After the shock of last week’s rate rise has been digested, we expect the banks to outperform in the near future, enjoying a tailwind of a rising interest rate environment and high employment levels, which will see customers make the new higher loan repayments.

So is it time to buy the ANZ share price?

But Dive isn’t the only one bullish on ASX banks right now. As my Fool colleague James covered last week, analysts at Macquarie also see some potential in ANZ shares. Macquarie currently has an overweight rating on ANZ with a share price target of $34. That implies a potential upside of almost 60% on the current pricing.

This broker reckons the ASX banks like ANZ will benefit enormously from rising interest rates. It predicts that many savers won’t bother to chase higher interest rates for their term deposits and, thus, ANZ will enjoy a tailwind as it raises interest rates on its own loans.

So that’s two ASX experts who see good things ahead for the ANZ share price. But we shall have to wait and see if these predictions prove accurate.

In the meantime, the current ANZ share price gives this ASX 200 bank a market capitalisation of $61 billion, with a dividend yield of 6.61%.

The post The ANZ share price has tumbled 24% from its 2022 high. Is it time to pounce? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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 Novonix Ltd (ASX: NVX) share price has been a strong performer on Tuesday.

In afternoon trade, the battery technology company’s shares are up 7% to $2.51.

This makes the Novonix share price one of the best performers on the ASX 200 index today.

Why is the Novonix share price shooting higher?

Investors have been bidding the company’s shares higher today despite there being no news out of it.

However, it is worth noting that a number of beaten down shares are climbing particularly strongly today amid a broad share market recovery.

Beaten down battery metals and lithium shares such as Argosy Minerals Limited (ASX: AGY), Chalice Mining Ltd (ASX: CHN), and Sayona Mining Ltd (ASX: SYA) are also charging notably higher today.

Though, despite today’s gains, this group of shares is still down materially in recent weeks. For example, the Novonix share price remains down 37% over the space of the month, with Chalice and Sayona recording similarly severe declines.

In light of this, it’s possible that today’s buying could be from investors that believe these shares have been oversold.

Time will tell if they hold onto these gains or give them back if/when the market volatility returns.

The post Why is the Novonix share price charging 7% higher today? appeared first on The Motley Fool Australia.

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More reading

• These were the worst performing ASX 200 shares last week
• Novonix share price loses 20% in dire week for ASX 200 tech stocks
• The Novonix share price is the worst of the ASX 200 losers today. What’s going on?
• ASX 200 midday update: ResMed’s US$1bn acquisition, tech shares continue to sink
• Novonix share price tumbles 10% amid Tuesday’s carnage

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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