Category: Stock Market

There is a group of wonderful ASX shares that have been among the best performers on the Australian stock market over the past decade.

However, the last few months have been painful for the share prices of many of these businesses. I think this is presenting a great opportunity to buy shares at a much lower price/earnings (P/E) ratio.

While these leading ASX growth shares still don’t trade on an earnings multiple similar to Commonwealth Bank of Australia (ASX: CBA) after the declines, the businesses below have a lot more earnings potential and they continue to grow profit. I’d happily buy them with $3,000.

Pro Medicus Ltd (ASX: PME)

This business is arguably the best company on the ASX. It describes itself as a global provider of medical imaging solutions, including radiology imaging solutions (RIS) and picture archiving and communication systems (PACS).

The FY25 result was a perfect example of the businesses’ impressive financials. Revenue rose 31.9% to $213 million, net profit after tax (NPAT) jumped 39.2% to $115.2 million and the final dividend per share was hiked by 37.5% to 30 cents per share.

A key enabler of the company’s strong financials is an underlying operating profit (EBIT) margin of 74%, which is exceptionally high. This helps turn a sizeable majority of new revenue into operating profit.

The ASX share is winning new contracts with major customers in the northern hemisphere and it’s also successfully selling additional modules to existing customers.

With the Pro Medicus share price down 35% since July, it looks like a good time to invest for the long-term. According to the forecast on Commsec, it’s now trading at 85x FY28’s estimated earnings.

TechnologyOne Ltd (ASX: TNE)

TechnologyOne is an ASX share I’ve put some of my own investing money into recently.

The company provides enterprise resource planning (ERP) software, with customers like local, state and federal government, companies, universities and other organisations.

This business is delivering consistent growth year after year. In FY25, the business delivered profit before tax (PBT) growth of 19% to $181.5 million, beating guidance of between 13% to 17%.

TechnologyOne has been successful at providing subscribers with software improvements, unlocking more revenue from them over the years. It’s also winning new customers from competitors, such as the London boroughs of Islington London Borough Council and the Council of the Royal Borough of Greenwich. This is helping drive revenue.

The business reached annual recurring revenue (ARR) of $554.6 million in FY25 and it has a goal to reach $1 billion of ARR by FY30, which would help it become significantly more profitable.

According to the forecast on Commsec, the TechnologyOne share price is now valued at 39x FY28’s estimated earnings. That’s after a decline of 34% in the past six months.

Xero Ltd (ASX: XRO)

Xero is the leading cloud accounting provider in Australia and New Zealand. It also has built an impressive market share in markets like the UK, Singapore and South Africa.

The company now has 4.5 million subscribers from across the world, which has given the company significant scale advantages. With its gross profit margin of almost 90%, new revenue is rapidly boosting the ASX share’s profit statistics.

In the first half of FY26, net profit surged 42% to NZ$135.8 million and free cash flow jumped 54% to NZ$321 million.

The Xero share price is down 43% in the past six months, which I think has been overdone. Tax reporting and digitalisation gives Xero pleasing earnings tailwinds for the years ahead.

According to the forecast from UBS, the Xero share price is now valued at just 37x FY28’s estimated earnings following the heavy decline this year.

The post 3 unstoppable ASX shares to buy with $3,000 appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Pro Medicus and Technology One. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Technology One and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Pro Medicus. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Pro Medicus and Technology One. 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.

The “Magnificent Seven” is the name given to the group of Nvidia, Apple, Microsoft, Alphabet, Meta, Tesla, and Amazon (NASDAQ: AMZN). These seven companies are bundled together because they have driven much of the stock market’s gains in recent years. As of Dec. 15, they are seven of the world’s top nine most valuable companies and represent nearly 35% of the S&P 500.

So far this year, every “Magnificent Seven” stock has produced double-digit returns except for one: Amazon.

Once the face of growth stocks, Amazon has lagged over the past year, frustrating its investors along the way. Despite that retreat, Amazon may be positioned to bounce back in 2026.

^SPX data by YCharts.

Why has Amazon’s stock been lagging?

There hasn’t been one issue that’s caused Amazon’s underperformance. It’s more a combination of factors. First, Amazon has spent a lot of money this year, with capital expenditures (capex) of around $90 billion through the first nine months of 2025.

Given how much Amazon has been spending (mostly on AI infrastructure), investors have been wanting more to show for it — especially when it comes to Amazon Web Services (AWS) growth. With many of the “Magnificent Seven” stocks making big splashes in AI, some people viewed Amazon as falling behind in the race.

AMZN Capital Expenditures (Quarterly) data by YCharts.

Amazon’s heavy spending has weighed on its free cash flow, and that’s not something investors typically like without seeing more immediate results. Add in how expensive Amazon’s stock has been, and there was little room for error in many investors’ eyes.

AWS is positioning itself for the future

AWS may not have been producing the results that we’ve grown used to seeing over the years, but investors jumping ship seems like a premature overreaction (which is no surprise if you know investors). Yes, AWS has been losing market share to Microsoft’s Azure and Alphabet’s Google Cloud, but it’s still the world’s largest cloud platform by far.

Cloud platforms are, and will continue to be, crucial to AI training and scaling. That’s why Amazon has been focusing so much on building out more infrastructure and adding computing capacity. It has added more than 3.8 gigawatts in the past 12 months and plans to double its capacity through 2027.

This investment is noteworthy because, according to calculations from investment bank Oppenheimer, each incremental gigawatt of capacity could add $3 billion in revenue. The high capex might be weighing on Amazon’s financials right now, but it’s poised to pay off in the long term.

Amazon has an underrated profit machine

There’s no doubt that AWS is Amazon’s profit engine, accounting for most of its operating income. However, advertising is a high-margin business that has been growing steadily over the past couple of years.

On one hand, Amazon has access to data from its millions of customers and Prime members, making it more effective at helping advertisers with targeted ad campaigns. They know what customers buy, when they buy it, what they watch, what they listen to, what they browse, and other information that allows advertisers to target with greater precision. 

On the other hand, Amazon’s massive reach means it has plenty of places to set these ads. Whether it’s online, when you search for a specific product, stream something on Prime Video, watch Twitch, or listen to music, there’s no shortage of real estate for advertisers looking to reach potential customers. Amazon also announced that it recently struck partnerships that allow its advertisers to buy ad space on Netflix, Spotify, and SiriusXM.

In the third quarter, Amazon’s advertising services revenue grew 24% to $17.7 billion, outpacing its revenue from subscriptions ($12.5 billion). Beyond revenue growth, advertising is a high-margin business that can help Amazon boost its overall profitability. I expect the momentum to continue in 2026.

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

The post My surprising top “Magnificent Seven” stock pick for 2026 appeared first on The Motley Fool Australia.

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.

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Stefon Walters has positions in Apple and Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix, Nvidia, Spotify Technology, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix, and Nvidia. 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.

Nvidia (NASDAQ: NVDA) has been a focal point of investment in the artificial intelligence (AI) sector this year. It’s the undisputed leader in accelerated computing. However, Nvidia’s chips aren’t the only reason why.

The company’s graphics processing unit (GPU) stacks combine hardware, software, and platform solutions designed to support applications from gaming to professional visualization and accelerated computing. I believe Nvidia’s vast array of solutions will reaccelerate growth in the stock price next year. 

AI solutions for the future

Nvidia’s revenue soared to a record $57 billion in the recently reported fiscal third quarter. That was a remarkable 62% year-over-year jump.

Some investors believe that this kind of growth is unsustainable. That seems like a sensible position considering that level of sales. I predict that another leg of sustainable growth lies ahead that investors will begin to recognize in 2026. Nvidia CEO Jensen Huang has already publicly signaled what it will be, too.

Even if the AI data center buildout slows, as some believe will happen, Jensen Huang sees a long growth runway for his company over the next decade. In an interview earlier this year, Huang stated, “This is going to be the decade of AV [autonomous vehicles], robotics, autonomous machines.”

Nvidia will supply both hardware and software to support that development. The company produces embedded systems for autonomous and robotic applications. Nvidia’s Drive ADX platform provides high-level compute performance for the highest level of self-driving technology.

The company calls its Jetson platform “the ideal software for robotics and generative AI at the edge.” It’s powered by Nvidia’s leading Blackwell GPU, helping to generate more hardware sales, too.

Investors should continue to monitor data center growth to track the state of Nvidia’s business. However, watching developments in robotics, autonomous vehicles, and machines should provide confidence that a new leg of sales growth for Nvidia is likely. That, in turn, should drive the stock higher after shares have consolidated over the past couple of months. 

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

The post 1 prediction for Nvidia in 2026 appeared first on The Motley Fool Australia.

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.

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Howard Smith has positions in Nvidia and has the following options: short February 2026 $170 calls on Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Nvidia. The Motley Fool Australia has recommended Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Agribusiness Elders Ltd (ASX: ELD) received the third strike against its remuneration report in as many years on Thursday, with investors lodging a hefty protest vote at the annual general meeting (AGM).

Under Australian corporations law, a vote of 25% or more against the remuneration report at a company’s annual general meeting constitutes a strike, with two strikes in a row triggering a vote to potentially spill the board.

Elders’ board survived such a vote at last year’s AGM, when the vote against the remuneration report ran at about 67%.

Under the law, the strike count resets after a spill vote, meaning today’s protest vote did not trigger a spill vote.

The company also received a strong protest vote against Managing Director Mark Allison’s remuneration package, with 39.6% of the vote against.

New boss not far off

While the remuneration vote this year sets the company up with a potential spill trigger if it receives another protest vote next year, this is arguably unlikely, given that current Chief Executive Officer Mark Allison’s succession plans are “well advanced”, according to Chair Glenn Davis.

Mr Allison originally announced he would retire from the company three years ago; however, he ended up staying on when a global search for a new leader failed to find a suitable candidate.

Mr Davis said on Thursday that Mr Allison was “available” to stay with the business as Chief Executive until September next year, “ensuring an orderly transition aligned with the completion of our current Eight Point Plan”.

Outlook looking good

Mr Allison told the AGM on Thursday that Elders was “optimistic” about the outlook for FY26.

Elders expects EBIT growth in FY26 driven by a positive outlook for most agricultural commodities and season. We are also looking to a strong contribution from transformation projects and Delta Agribusiness in FY26. We will continue to focus on maintaining operational and financial discipline, investing in growth opportunities, and upholding our commitment to clients as trusted partners in their agricultural enterprises and communities. With our new business structure in place, we have a clear and focused direction for stable and methodical performance to make the most of improved conditions and to remain responsive to the needs of our clients.  

Mr Allsion said the company had delivered a strong result in FY25, despite “mixed seasonal conditions and commodity market volatility”.

Elders shares have delivered a total shareholder return of just 2.3% over the past year and a negative 1.7% over the past five years, annualised, according to data sourced from CMC Markets.

Elders was valued at $1.48 billion at the close of trade on Wednesday.

The post Elders gets third strike in a row against its executive pay appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 Elders. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today 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 positions in and has recommended SiteMinder and Xero. The Motley Fool Australia has positions in and has recommended Imdex, SiteMinder, and Xero. The Motley Fool Australia has recommended Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Getting started in the share market can be scary. Many new investors worry about picking the wrong stock, buying at the wrong time, or not knowing enough to compete with professionals.

Unfortunately, that fear alone is enough to stop some people from ever investing at all.

But don’t let that stop you. Not when there are exchange-traded funds (ETFs) out there to make life easier for beginner investors.

They offer instant diversification, low costs, and exposure to dozens or even thousands of stocks in a single trade. For beginners, that simplicity can make all the difference.

With that in mind, here are three ASX ETFs that could be ideal starting points for new investors.

Betashares Nasdaq 100 ETF (ASX: NDQ)

The Betashares Nasdaq 100 ETF is often one of the first ETFs new investors come across, and for good reason. It provides exposure to 100 of the largest non-financial stocks listed on the famous Nasdaq exchange in the United States.

The fund includes well-known global leaders such as Microsoft (NASDAQ: MSFT), Apple (NASDAQ: AAPL), Nvidia (NASDAQ: NVDA), Meta Platforms (NASDAQ: META), Tesla (NASDAQ: TSLA), and Netflix (NASDAQ: NFLX). These are businesses with strong competitive positions, global customer bases, and long histories of innovation.

For beginners, the Betashares Nasdaq 100 ETF offers a simple way to gain exposure to world-class growth stocks without having to choose individual winners.

Betashares Global Quality Leaders ETF (ASX: QLTY)

Another top option for beginners could be the Betashares Global Quality Leaders ETF.

This ASX ETF invests in global stocks with strong balance sheets, consistent profitability, and high returns on capital.

Its portfolio includes high-quality businesses such as Visa (NYSE: V), Johnson & Johnson (NYSE: JNJ), Accenture (NYSE: ACN), and L’Oreal (FRA: OR). These are market leaders with pricing power and resilient earnings.

For beginners, the Betashares Global Quality Leaders ETF could be attractive because it emphasises quality over hype. It aims to smooth out some of the bumps that come with growth investing, making it a solid core holding for those who want steadier long-term returns.

It was recently recommended by analysts at Betashares.

VanEck MSCI International Value ETF (ASX: VLUE)

A third option for beginners is the VanEck MSCI International Value ETF.

It is focused on value investing. Rather than chasing fast-growing or highly priced stocks, this fund targets developed-market stocks that are trading at attractive valuations relative to their fundamentals.

The ETF holds around 250 large- and mid-cap international companies selected using a rules-based approach that looks at metrics such as price-to-book value, forward earnings, and cash flow. This provides diversified exposure across multiple countries and sectors. Its holdings include Micron Technology (NASDAQ: MU), Western Digital (NASDAQ: WDC), and Cisco Systems (NASDAQ: CSCO).

It was recently recommended by analysts at Van Eck.

The post 3 ASX ETFs that could be perfect for beginners appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Accenture Plc, Apple, BetaShares Nasdaq 100 ETF, Cisco Systems, Meta Platforms, Microsoft, Netflix, Nvidia, Tesla, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Apple, Meta Platforms, Microsoft, Netflix, Nvidia, and Visa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Most investors would do a double-take if they saw an ASX 300 dividend share trading at a yield of almost 6% today. After all, most popular passive income picks on the ASX currently sport yields far lower than that.

You won’t get anything close to 6% from the likes of Telstra Group Ltd (ASX: TLS), Coles Group Ltd (ASX: COL), Wesfarmers Ltd (ASX: WES) or Commonwealth Bank of Australia (ASX: CBA) right now.

Yet that’s what’s apparently on offer from Rural Funds Group (ASX: RFF) shares right now.

Yep, this ASX 300 real estate investment trust (REIT) currently trades on a yield of 5.81%.

That yield stems from the four quarterly dividend distributions that this REIT has doled out over 2025. Each one of those quarterly dividend distributions was worth 2.93 cents per unit. That annual total of 11.72 cents per unit gives Rural Funds that trailing yield of 5.81% at the present (at the time of writing anyway) unit price of $2.02.

What’s more, this ASX passive income stock seems to be trading at a steep discount to its underlying value.

Rural Funds periodically reports the net tangible assets (NTA) per unit for the benefit of investors. In other words, that’s how valuable its property portfolio is on a per-unit basis. Bear in mind that, as Rural Funds is an agricultural-based REIT which owns vast tracts of diverse farmland, these assets can be more difficult to put a value on than publicly-traded shares.

Even so, Rural Funds told investors in August that its NTA per share was $3.08 on adjusted terms. That’s as of 30 June 2025.

At the current $2.02 unit price, this implies that this ASX 300 share is currently trading at a 30% discount to the value of its underlying portfolio.

So is this ASX 300 REIT a buy for passive income?

Looking at Rural Funds, I think this passive income stock has what it takes to be a useful investment for anyone who prioritises seeing maximum dividend income from their portfolio. Rural Funds has never cut its dividend distributions since listing in 2013, and obviously offers that hefty 5.8% yield today (although investors should remember that no yield is ever in the bag).

Having said that, Rural Funds’ dividends don’t usually come with much in the way of franking credits, as is typical of most REITs.

As a REIT, Rural Funds’ unit price is highly impacted by interest rates, though. That would explain why investors have seen the value of their units drop more than 20% over the past five years. As such, I wouldn’t expect much in the way of capital appreciation going forward. Particularly if interest rates have already bottomed this cycle.

As I am not a solely dividend-focused investor, I won’t be buying this passive income stock anytime soon. But I would recommend it to anyone who does want to maximise their cash flow as part of a diversified dividend portfolio.

The post A 5.8% yield and 30% undervalued — time for me to buy this ASX 300 passive income star? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Rural Funds Group and Telstra Group. The Motley Fool Australia has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

When I buy an ASX share, I tend to do so with the expectation of owning that share, whether it be on the S&P/ASX 200 Index (ASX: XJO) or not, for at least a decade. Hopefully longer.

But of course, finding those companies is easier said than done. I myself have bought ASX 200 shares before with the hope of owning a lifelong investment, only to have had to sell out of them as my original thesis failed to hold up with time.

Today, though, let’s discuss an ASX 200 share that I think is worthy of consideration as a stock to own for the coming decade. This ASX 200 company shows signs of market dominance and significant brand loyalty with its portfolio of iconic brands. It also looks financially healthy and has established itself as a reliable payer of fully-franked dividends.

That ASX 200 share is Bega Cheese Ltd (ASX: BGA). You probably know Bega for its dairy products. After all, this is a company that has been around in some shape or form since 1899.

Why is Bega a top ASX 200 share for long-term investors?

But aside from Bega Cheese (which is actually produced by French dairy company Lactalis), Bega owns a wide stable of some of Australia’s favourite household brands. There are juice labels Juice Brothers, Daily Juice Co and Mildura, as well as dairy brands Yoplait, Dairy Farmers and Pura.

But Bega has been on a bit of a buying spree over the past decade. For one, it acquired the rights for Kraft peanut butter from Mondelez International in 2017, which has subsequently been rebranded as Bega Peanut Butter. The company also owns the more health-focused Simply Nuts brand.

Even more significant was Bega’s acquisition of Mondelez’s other snack brands, which included Zoosh and the culturally iconic Vegemite. It was the first time Vegemite returned to an Australian owner in almost 90 years.

But that’s not the largest acquisition Bega has made in recent years. This ASX 200 share purchased the non-alcoholic drinks division of Lion Dairy & Drinks from the Japanese giant Kirin in 2020. These included popular names like Farmers Union, Big M, Dare, and Zooper Dooper.

So Bega is a giant share in the ASX 200 consumer staples space.

But let’s get into this company’s financials. So Bega has just come off a bumper year. For its FY2025, it posted a normalised earnings before interest, tax, depreciation and amortisation (EBITDA) of $202 million, up 23.1% year on year. Earnings per share (EPS) rose by a stunning 72.9% on a normalised basis to 16.6 cents.

Meanwhile, the company is making enormous progress in paying off its debt from the acquisitions discussed above. Its net debt fell 22.4% over the 2025 financial year to $126.1 million.

At the same time, Bega paid out its highest dividend in history in 2025. The company announced two dividends, both worth 6 cents per share, this year. Both came fully franked too, as is Bega’s habit.

Foolish takeaway

Bega is not a perfect investment. The company is subject to many factors outside its control, most notably farmgate dairy prices. But no ASX share is perfect. With such a strong portfolio of beloved consumer brands, I think Bega is well placed to thrive over the coming decade.

The post 1 ASX 200 share to consider for the coming decade appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has positions in Kraft Heinz and Mondelez International. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Kraft Heinz. 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.

IDP Education Ltd (ASX: IEL) shares rose around 2% today after the company announced a voluntary change to how it recognises revenue across its global student placement business. While accounting policy updates rarely grab headlines, this one clearly caught the attention of investors.

Under the updated approach, IDP Education will recognise student placement revenue at census date across all jurisdictions, bringing its Australia and UK businesses in line with the approach already used for its businesses in Canada, the United States, Ireland, and New Zealand.

According to the announcement, the change will shift the timing of revenue recognition for some markets but will not alter underlying cash flows, capital management settings, or banking covenants.

So why did the share price rise?

Consistency builds confidence

IDP Education has become a much more complex global business, and aligning revenue recognition across all markets simplifies the way investors evaluate its performance. Increased comparability typically reduces uncertainty.

Greater certainty and consistency are something that the market values highly.

The revised treatment results in a $9.2 million uplift in revenue and a $5.2 million increase in net profit after tax for FY25, reflecting the timing shift between reporting periods. While this doesn’t change the economic reality of the business, stronger reported results often provide a short-term sentiment boost.

Guidance remains intact

Management reaffirmed its FY26 Adjusted EBIT target of $115 million –$125 million, even after incorporating the accounting change. For investors already navigating a volatile macro environment for international student flows, reaffirmed guidance is a welcome signal of stability and visibility.

Importantly, the update does not affect operating cash flow, which is the lifeblood of IDP Education’s business, nor does it imply any deterioration in demand or margins.

Foolish bottom line

Today’s share price reaction suggests the market is happy that guidance has not been downgraded and that it sees the policy shift as a housekeeping move that improves transparency rather than a sign of trouble. In an environment where consistency is valued, IDP’s proactive approach may be exactly what investors want to see.

The post Here’s why a surprise accounting shift sent IDP shares higher today appeared first on The Motley Fool Australia.

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Motley Fool contributor Kevin Gandiya has no positions 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.

There are a lot of ASX 200 shares out there for investors to choose from.

Let’s now take a look at three popular options and see if analysts rate them as buys, holds, and sells.

Here’s what they are saying about them:

Flight Centre Travel Group Ltd (ASX: FLT)

Morgans was pleased with this travel agent’s acquisition of UK based online cruise agency Iglu. This is due to Iglu operating in a high growth and high margin segment of the travel industry.

In response, the broker has retained its buy rating with an improved price target of $18.38. It said:

In our view, Iglu is a strategically sound acquisition for FLT’s Leisure business unit, given the cruise sector is a high growth and high margin segment within the travel industry. The acquisition multiple was reasonable for an online business and, importantly, is immediately EPS accretive. FLT’s strong balance sheet can comfortably fund this acquisition and its capital management strategy. We have upgraded our forecasts to reflect the acquisition of Iglu. Despite recent share price appreciation, FLT’s fundamentals remain attractive and we retain a Buy recommendation with a new A$18.38 price target.

Suncorp Group Ltd (ASX: SUN)

Over at Ord Minnett, its analysts aren’t feeling overly positive on insurance giant Suncorp due to its softening premium rate growth.

Although the broker sees value in its shares, it isn’t enough to give it a buy rating. Instead, the broker has put a hold rating and $20.50 price target on Suncorp. It said:

Between weather-related volatility and an industry-wide slowdown in premium rate growth, the outlook for Suncorp (and its peers) remains challenging. This leads Ord Minnett to cut its target price on Suncorp to $20.50 from $22.50, and maintain its Hold recommendation despite the apparent value on offer.

Zip Co Ltd (ASX: ZIP)

Finally, Macquarie remains very bullish on this buy now pay later provider. Although it acknowledges that its rapid total transaction value (TTV) growth is leading to higher loss rates, it believes Zip will still achieve its net transaction margin (NTM) guidance.

As a result of this and its rapid growth, the broker has put an outperform (buy) rating and $4.85 price target on its shares. It commented:

Outperform. We forecast Zip to continue to deliver rapid growth supported by increased product adoption, expansion of merchant network, increased customer engagement and digital product innovation. […] We expect ZIP to deliver attractive TTV growth and NTM in the guidance range, with potential upside risk to earnings.

The post Buy, hold, sell: Flight Centre, Suncorp, and Zip shares 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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.