Category: Stock Market

The Origin Energy Ltd (ASX: ORG) share price is heading south during early Tuesday morning.

This comes despite the energy giant not releasing any market-sensitive news today.

At the time of writing, Origin shares are down 0.70% to $5.66 apiece.

Why are Origin shares falling today? 

Following the company’s half year results released on 17 February, investors are eyeing Origin shares as they go ex-dividend today.

Typically, one business day before the record date, the ex-dividend date is when investors must have purchased shares. If the investor does not buy Origin shares before this date, the dividend will go to the seller.

Historically, when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

What does this mean for Origin shareholders?

For those eligible for Origin’s interim dividend, shareholders will receive a payment of 12.5 cents per share on 25 March. Although, the dividend is unfranked, which means investors won’t receive any tax credits from this.

The dividend remains unchanged when compared against the prior corresponding period (H1 FY21).

The above payout figure represents 66% of the company’s free cash flow and annualised dividend yield of 3.51%.

Management expects to restore partial franking for its dividends sometime during FY23.

Are Origin shares a buy now?

Following the company’s H1 FY22 results, a number of brokers weighed in on the Origin share price.

The team at Macquarie raised its 12-month price target by 2.5% to $6.53 for the energy giant’s shares. Its analysts believe that there is still more upside in Origin shares regardless of its mixed performance recently.

Based on the current share price, this implies an upside of about 14.5% for investors.

Furthermore, Morgan Stanley also lifted its assessment on Origin shares by 4.1% to $6.05 a pop.

However, JP Morgan appeared unimpressed with Origin’s results, downgrading to underweight from neutral, and cutting its shares by 9.1% to $5.50.

Morgans had a similar take to JP Morgans’s view, downgrading Origin to hold from add, and slashing the outlook by 5.2% to $6.23.

Origin shares price summary

Since the beginning of 2022, Origin shares have gained 8% on the back of rising energy prices.

The company’s shares reached a 52-week high of $6.37 in February, before treading slightly lower thereafter.

On valuation grounds, Origin commands a market capitalisation of around $10.04 billion, with approximately 1.76 billion shares outstanding.

The post Why is the Origin (ASX:ORG) share price is edging lower today? appeared first on The Motley Fool Australia.

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• Origin (ASX:ORG) share price lifts amid green hydrogen news
• Origin (ASX:ORG) share price slides 7% but UBS is still bullish. Here’s why
• Australia’s largest coal power plant set for early D-day. What it means for Origin (ASX: ORG) shares
• Origin (ASX:ORG) share price slides 5% following another half of losses
• Power surge! These 2 ASX 200 utilities shares are storming higher 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 Bruce Jackson.

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ASX agriculture shares could be on a new bull run amid predictions that Australia’s farm gate output will hit a record-breaking $81 billion this financial year.

That’s $3 billion higher than the previous estimates given in January, reported the Australian Financial Review.

The soft commodity boom is getting less coverage than oil, lithium, and other “green” metals.

But if the forecast from the Australian Bureau of Agricultural and Resource Economics (ABARE) is correct, several ASX shares linked to the rural sector could record strong earnings during the August reporting season.

What’s driving the soft commodity boom?

Near-perfect growing conditions and the surge in soft commodity prices to around 32-year highs are driving the bullish outlook.

While the value of Australian farm production is expected to moderate in FY23, it’s still tipped to come in at $76 billion. That’s the second-highest on record, noted the AFR.

But the war in Ukraine is also bolstering the outlook for Australian commodities, including wheat. Russia and Ukraine account for around 30% of global wheat output.

That leaves a big hole that is unlikely to be completely filled. Most of Australia’s bumper harvest will be exported to the tune of $64 billion.

Sun shining on these ASX agri shares

One possible beneficiary from any supply deficit could be the Graincorp Ltd (ASX: GNC) share price. The company owns Australia’s largest grain storage and handling network on the east coast, although the devasting floods hitting Queensland and New South Wales could present a near-term headwind.

But it isn’t only Graincorp that could benefit from these powerful tailwinds. The cash from the soft commodities boom will help top up government coffers. Farmers and rural communities will also likely partake in the feast.

This means any ASX company that provides products and services to the sector could get an earnings boost.

Other ASX shares making hay

You can count the Nufarm Ltd (ASX: NUF) share price among the possible winners. It provides seeds and herbicides to more than 100 countries, including Australia and Europe.

While the Nufarm share price has been gaining ground recently, it’s only up around 12% over the past year.

Another beneficiary could be the Elders Ltd (ASX: ELD) share price. The group provides a wide range of products and services to the rural sector, including insurance.

The Elders share price is faring even worse than the Nufarm share price. It has essentially gone nowhere over the past year.

The post 3 ASX shares that could get a slice of a record $81bn farm output this year appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares in February
• Here’s why the Graincorp (ASX:GNC) share price jumped 5% today
• Why Core Lithium, Dicker Data, GrainCorp, and InvoCare shares are rising
• ASX 200 (ASX:XJO) midday update: Zip to buy Sezzle for $491m, GrainCorp storms higher
• 3 buy-rated ASX 200 shares

Motley Fool contributor Brendon Lau owns Elders Limited and Nufarm Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Elders Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

What happened

Popular metaverse cryptocurrency The Sandbox (CRYPTO: SAND) has seen some wild price action today. As of noon ET, this token has surged into positive territory, up 2.1% over the past 24 hours. This move negated an earlier intraday decline that saw The Sandbox decline as much as 5.9% over a 24-hour period ending this morning.

The Sandbox has been one of the higher-beta cryptocurrencies of late, surging in late 2021 as investors sought metaverse-related assets. Accordingly, during the recent market-driven declines tied to macro risks, The Sandbox has underperformed.

This morning, investors appear to be taking a more positive view of risk assets, as bond yields declined following news that the Russia-Ukraine war might be heating up.

And news out of South Korea early this morning suggested that the country will be investing heavily in creating its own metaverse platform. A $187 million national metaverse project will be set up, something South Korea hopes will spur corporate growth domestically.

So what

Indeed, the metaverse is an interesting place for investors to focus on right now. On the one hand, they can certainly make the argument that metaverse stocks and cryptocurrencies both likely appreciated far too rapidly, relative to their long-term growth prospects. Accordingly, this breather can be viewed as one that has been necessary, from a fundamentals standpoint.

On the other hand, the massive corporate (and now government) investment in this space is one that has many investors excited. This news coming out of South Korea might renew interest among many investors who have put blockchain-based metaverse projects on the back burner.

Now what

There’s not much investors can control when it comes to the macro environment. Yes, risk assets are rallying once again today amid lower bond yields. However, the roller coaster ride we’ve been on in recent months appears to be far from over. Accordingly, those looking at any high-beta asset, such as The Sandbox, should be aware of the inherent risks tied to volatility, particularly over the near term.

However, from a longer-term perspective, there is a lot to like about the fact that big money continues to flow into the metaverse. Capital flows matter, and today’s news might have sparked some renewed interest among dormant investors.

The metaverse is a growth area (both within and outside of the crypto world) that I think has legs. Accordingly, The Sandbox is a top metaverse crypto project investors might want to put on their watch list.

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

The post Why the Sandbox cryptocurrency went from red to green today appeared first on The Motley Fool Australia.

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• Real-world conflict hits the virtual world, metaverse cryptocurrencies plunge 12%
• 3 ways to stake your claim to the $30 trillion Metaverse
• Meta’s metaverse losses pour cold water on these 3 cryptocurrencies

Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

 

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

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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.

Stock markets remained volatile on Monday. However, the Nasdaq Composite (NASDAQINDEX: .IXIC) in particular remained resilient even in the face of ongoing geopolitical pressure. After having opened down around 1%, the Nasdaq bounced back to post gains briefly during the morning and was roughly unchanged as of 12:30pm ET.

There were a couple of strong stocks that helped bolster the Nasdaq overall. Tesla (NASDAQ: TSLA) shares regained some of their lost ground from last week, as some bearish stock analysts had a slightly less pessimistic view of the electric vehicle (EV) pioneer’s longer-term prospects.

Meanwhile, Coinbase Global (NASDAQ: COIN) gained ground despite some cautionary comments from Wall Street, as the cryptocurrency universe recovered from some of its recent losses.

Tesla moves out of the slow lane

Shares of Tesla gained more than 6% early Monday afternoon. The Elon Musk-led automaker didn’t exactly earn positive comments from analysts, but a slightly less negative view was enough to give shareholders the inspiration they needed.

Analysts at Bernstein haven’t had a favorable view of Tesla’s prospects, and the fact that they kept their underperform rating on the stock shows they haven’t dramatically changed that view. Nevertheless, Bernstein did boost its price target on the stock by 50%, resetting its expectations from $300 per share to $450.

The move higher in Tesla’s stock also came amid news that Japanese battery producer Panasonic would set up a factory to boost the production of its high-capacity lithium-ion batteries. Tesla intends to use Panasonic’s 4680 model battery when it’s available, and the Japanese producer hopes to have the factory up and making batteries by 2023 or 2024.

Tesla’s stock has seen a big pullback as investors have lost confidence in high-growth stocks more generally. However, demand for its vehicles remains robust and seeing a key battery supply-chain issue move toward resolution should help bolster the bullish case for the EV maker.

Coinbase rises on crypto revival

Meanwhile, shares of Coinbase Global were up nearly 5%. The cryptocurrency exchange provider benefited from some rebounds in digital asset prices following a big swoon last week.

Most major crypto prices were well off their lows on Monday. Bitcoin (CRYPTO: BTC) moved higher by 5% to get close to the $41,000 mark. Ethereum (CRYPTO: ETH) rebounded to $2,800, and the smaller but still prominent crypto asset Terra (CRYPTO: LUNA) saw double-digit percentage gains.

Even with the gains, Coinbase remains nearly 50% below its highs. Yet that’s not entirely inconsistent with the crypto market more broadly, as Bitcoin, Ether, and other digital assets are far lower than their highest levels as well.

In the long run, Coinbase is looking to diversify its business to deemphasize the importance of trading activity and instead participate in broader cryptocurrency trends, such as decentralized blockchain technology, non-fungible tokens, and improved wallet technology. If those efforts are successful, then Coinbase could evolve into a more reliable generator of revenue and income even when crypto markets aren’t booming.

Gains from individual stocks like Coinbase and Tesla won’t be enough by themselves to prop up the Nasdaq. However, it’s comforting to remember that even when broader market measures aren’t showing big gains, you can still find some businesses that are producing powerful results and rewarding their shareholders.

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

The post Tesla, Coinbase help the Nasdaq hold its ground Monday appeared first on The Motley Fool Australia.

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• ASX lithium shares or EV makers, what’s been the better bet?
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• Liontown (ASX:LTR) share price rockets 16% today on Tesla lithium deal
• Is Tesla stock a buy?
• This is how we’ll know the share market has bottomed

Dan Caplinger has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Bitcoin, Coinbase Global, Inc., Ethereum, Terra, and Tesla. 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 Bruce Jackson.

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

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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.

Since peaking in November, the tech-heavy Nasdaq Composite has dropped nearly 15%, putting the index in correction territory. And many individual stocks have fallen much further. For instance, shares of DocuSign (NASDAQ: DOCU) and Zoom Video Communications (NASDAQ: ZM) have dropped 63% and 78%, respectively, from their highs, as Wall Street continues to weigh the impact of high inflation and potential interest rate hikes on corporate profitability.

Many investors have also categorized DocuSign and Zoom as “pandemic stocks,” citing slowing revenue growth as cause for alarm. But, arguably, nothing could be further from the truth. Both businesses play an important role in digital transformation, and their services should only become more valuable in the years ahead. Better yet, both stocks look relatively cheap right now.

Here’s what you should know. 

1. DocuSign

Agreements are an essential part of any business. Organizations form agreements with customers, employees, and partners, but traditional paper-based processes — such as printing, signing, and taking action on a physical document — are slow, costly, and prone to errors. With its Agreement Cloud, DocuSign aims to accelerate and simplify workflow by digitizing and automating the agreement process. Its platform spans over a dozen applications, and it integrates with over 350 other technologies.

At its core is DocuSign eSignature, a product that allows documents to be signed in a digital, secure, and legally valid manner, on virtually any device. But the company’s portfolio also includes tools for automatic contract generation, AI-powered analytics and risk scoring, and payment collection. Collectively, those tools help clients work more quickly and efficiently.

Founded in 2003, DocuSign is a pioneer in the e-signature industry, and the company has parlayed its first-mover status into a robust competitive edge. DocuSign ranks as the No. 1 e-signature tool, holding over 70% market share, and its platform boasts a net promoter score (NPS) of 72. For context, the NPS is designed to measure the customer experience, and 50 is an impressive score, but an NPS of 70 (or higher) is considered world class. 

Not surprisingly, DocuSign’s strong competitive position and excellent rapport with customers have fueled impressive growth. Over the past year, the company’s customer base expanded 34% to 1.1 million; revenue soared 51% to $2 billion; and free cash flow skyrocketed 125% to $418.7 million. More importantly, management puts its addressable market at $50 billion, meaning DocuSign still has plenty of room to grow. And with the stock trading at 11.4 times sales — significantly cheaper than its three-year average of 22 times sales — now could be a good time to buy a few shares.

2. Zoom Video Communications

Zoom became a household name during the pandemic. Its core product, videoconferencing app Zoom Meetings, helped socially distanced friends and families stay in touch, while allowing students and employees to learn and work remotely. However, Zoom is more than a videoconferencing application; it’s a communications company, and its platform also includes a cloud-based phone system (Zoom Phone) and a software-based collaboration suite for hybrid workforces (Zoom Rooms). 

While some employees have already returned to the office, remote work is likely here to stay. In fact, research firm Gartner believes that 48% of employees will work remotely at least part time in a post-COVID world, up from 30% prior to the pandemic. And Gartner says that by 2024 just 25% of enterprise meetings will take place in person, down from 60% in 2019. Both of those trends are good news for Zoom and its shareholders.

Better yet, Zoom is actually becoming more popular. In the videoconferencing space, the company captured 49% market share in 2021, up from 26% in 2020. Even more impressive, Zoom is actually the fifth most popular enterprise application of any kind, according to Okta‘s 2022 Business at Work report.

In the most recent quarter, Zoom hit 512,100 customers, up 18%. And the company has kept its expansion rate above 130% for the last 14 quarters, meaning the average customer consistently spends 30% more. Fueled by that stickiness, revenue soared 100% to $3.9 billion over the past year, and free cash flow rose 59% to $1.7 billion. More importantly, management puts its market opportunity at $91 billion by 2025, leaving plenty of room for future growth. And with the stock trading at 9.7 times sales — near its cheapest valuation since going public in 2019 — now could be a good time to take a closer look at this beaten-down tech company. 

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

The post Market correction: 2 top tech stocks down 63% and 78% appeared first on The Motley Fool Australia.

More reading

• Lithium bonanza! Broker says the Allkem (ASX:AKE) share price could double
• These were the best performing ASX 200 shares in February
• These were the worst performing ASX 200 shares in February
• Will ASX REITs get smashed by rising interest rates?
• 2 great ASX shares to buy in March 2022: experts

Trevor Jennewine owns Okta. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended DocuSign, Okta and Zoom Video Communications. The Motley Fool Australia has recommended Zoom Video Communications. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson. 

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

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The Allkem Ltd (ASX: AKE) share price could be great value and destined to climb materially higher.

That’s the view of the team at Bell Potter, which has spoken very positively about the lithium miner today.

Why is the Allkem share price great value?

In response to the lithium miner’s half year results on Monday, Bell Potter has reiterated its buy rating and lifted its price target to $18.05.

Based on the current Allkem share price of $9.07, this implies potential upside of almost 100% over the next 12 months.

The broker highlights that Allkem’s first half earnings were better than it was forecasting. It explained: “AKE reported underlying 1H FY22 EBITDA of US$98m (BP est. US$83m) and NPAT of US$57m (BP est. US$44m).”

Why is the broker so positive?

Bell Potter notes that Allkem is expecting lithium prices to improve further in the second half. This has led to the broker upgrading its earnings forecasts accordingly.

In addition, its analysts like the company due to its production growth potential, which will allow it to benefit greatly from these high lithium prices.

The broker commented: “AKE is a go-to stock for multi-project exposure to lithium markets. AKE will realise significantly higher prices from 2022, driving material operating cash flow growth. Looking ahead, AKE has a portfolio of growth projects to materially lift production over the next three years.”

“Naraha will commence conversion of primary grade lithium carbonate into 10ktpa battery grade lithium hydroxide by mid-2022. At Olaroz, an additional 25ktpa LCE capacity will be commissioned from 2H 2022, lifting capacity at this asset to over 40ktpa. Construction of Sal de Vida Stage 1 at around 11ktpa LCE has commenced for first production from 2023. In aggregate, we expect AKE’s equity share of production to lift from 33kt LCE in FY21 to over 50ktpa LCE by FY24,” it added.

The post Lithium bonanza! Broker says the Allkem (ASX:AKE) share price could double appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 (ASX:XJO) midday update: Zip to buy Sezzle for $491m, GrainCorp storms higher
• Allkem (ASX:AKE) share price higher amid results and ‘surging demand for lithium’
• Analysts are tipping massive upside potential for these ASX growth shares
• 2 ASX growth shares with huge upside potential

Motley Fool contributor James Mickleboro owns Allkem. 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 Bruce Jackson.

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Despite battling tough trading conditions, the S&P/ASX 200 Index (ASX: XJO) managed to record a decent gain last month. The benchmark index rose 1.1% to end the period at 7,049.1 points.

While a number of shares climbed higher with the market, some recorded bigger gains than others. Here’s why these were the best performing ASX 200 shares in February:

NRW Holdings Limited (ASX: NWH)

The NRW share price was the best performer on the ASX 200 last month with a 37.6% gain. Investors were buying this mining contractor’s shares following the release of a better than expected half year result. For the six months ended 31 December, NRW delivered a 26% increase in operating earnings to $74.6 million. In light of this strong form, management has updated and narrowed its full year guidance towards the top end of its previous range.

Cimic Group Ltd (ASX: CIM)

The Cimic share price wasn’t far behind with a gain of 36% in February. This strong gain was driven by news that the engineering company has received a hostile takeover approach. According to the release, Cimic’s majority shareholder, HOCHTIEF, is planning to make an off-market takeover offer of $22 cash per share.

Sims Ltd (ASX: SGM)

The Sims share price was on form and charged 26.9% higher over the month. Investors were buying the scrap metal company’s shares following the release of a strong half year result. For the first half, Sims reported a 74% increase in revenue to $4,265 million and a 541% jump in underlying EBIT to $361.7 million. Management advised that this was driven by “higher sales volumes and higher material prices, combined with disciplined margin management.”

Nufarm Ltd (ASX: NUF)

The Nufarm share price was a strong performer and rose 25.1% over the period. This agricultural chemicals company’s shares were in demand with investors in February following the release of a very upbeat trading update. According to the release, Nufarm’s first quarter revenue grew 36% over the prior corresponding period. Management advised that this was supported by favourable weather conditions.

The post These were the best performing ASX 200 shares in February appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares in February
• Will ASX REITs get smashed by rising interest rates?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• Why is the Webjet (ASX:WEB) share price having such a lousy start to the week?

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 Bruce Jackson.

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The S&P/ASX 200 Index (ASX: XJO) overcame tough trading conditions to record a decent gain in February. The benchmark index rose 1.1% to end the period at 7,049.1 points.

Unfortunately, not all shares were able to climb higher with the market. Here’s why these were the worst performing ASX 200 shares last month:

Boral Limited (ASX: BLD)

The Boral share price was the worst performer on the ASX 200 last month with a 39% decline. However, this decline is a touch misleading as it wasn’t driven by bad news. This decline actually reflects the building materials company returning a total of $3 billion to shareholders following a series of asset sales. Boral’s total cash return of $2.72 per share comprises a $2.65 per share capital reduction and an unfranked dividend of 7 cents per share.

PointsBet Holdings Ltd (ASX: PBH)

The PointsBet share price was out of form again and sank 30% in February. This brings the sports betting company’s 12-month decline to 75%. Investors were selling the company’s shares following weakness in the tech sector and particularly the sports betting industry. The latter was driven by a disappointing update from rival DraftKings. Its shares crashed after revealing a loss of US$326 million for the fourth quarter. It also warned that it was likely to make a loss of US$1 billion in 2022 due largely to marketing costs.

Zip Co Ltd (ASX: Z1P)

The Zip share price wasn’t far behind with a 25% decline last month. Investors were selling the buy now pay later (BNPL) provider’s shares amid weakness in the industry and in response to its half year update. That update revealed a greater than expected loss for the first half of FY 2022. Speculation that a capital raising was imminent also weighed on sentiment.

Appen Ltd (ASX: APX)

The Appen share price was sold off again and tumbled 25% in February. Investors were selling down the artificial intelligence data services company’s shares following the release of its full year results. Appen reported a 3% increase in underlying EBITDA to US$77.7 million in FY 2021, which fell short of its revised guidance. Management also didn’t provide any guidance for FY 2022, which didn’t help sentiment.

The post These were the worst performing ASX 200 shares in February appeared first on The Motley Fool Australia.

More reading

• Will ASX REITs get smashed by rising interest rates?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• Why is the Webjet (ASX:WEB) share price having such a lousy start to the week?
• Leading brokers name 3 ASX shares to buy today

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. owns and has recommended Appen Ltd, Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Appen Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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ASX shares, like the rest of the world’s, are down a shocking amount for the year.

The S&P/ASX 200 Index (ASX: XJO) is now 7.8% lower than when 2022 started.

The big fear is that interest rates will rise very soon.

Investors are worried that central banks will be forced to hike rates due to persistent inflation, which will only be exacerbated by the war in Ukraine.

One type of investment that’s arguably a little bit different to other ASX shares is real estate investment trusts (REITs).

Since these are investments in real estate, they’re not really like other shares, which represent ownerships of businesses.

So can real estate fare any better in such anxiety-ridden times?

Shaw & Partners portfolio manager James Gerrish was recently asked this very question from a punter.

Not all REITs were created equal

Speaking generally, Gerrish said rising rates are a negative influence on the value of REITs.

“However, they will impact different REITs in different ways,” he told his Market Matters newsletter.

But if one drills down into individual trusts, they all have very different characteristics.

“Goodman Group (ASX: GMG) will grow earnings at 20% this year so rising rates will influence them less as a proportion of their earnings,” said Gerrish.

“The Charter Hall Long WALE REIT (ASX: CLW) will be more impacted because their growth is slower and their lease terms longer. It’s more like a longer-dated bond.”

Goodman shares have fallen 17% for the year, while Charter Hall Long WALE has remained flat. The latter is paying out a 5.45% dividend yield.

Another example that could be less impacted by rate hikes is National Storage REIT (ASX: NSR).

“National Storage, that we own, has a large tailwind from high demand and tight supply of storage which is pushing up storage rates — and therefore earnings.”

Shares for National Storage have dipped 5.6% for the year, while paying out a 3.46% dividend yield.

REITs could be oversold

Gerrish feels like investors may have overreacted during this year’s market dip.

“I think recently the market became more concerned about rates and their impact on REITs than is warranted,” he said.

“The sell-off in the property space over the past few weeks or so is a buying opportunity generally.”

The post Will ASX REITs get smashed by rising interest rates? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• Why is the Webjet (ASX:WEB) share price having such a lousy start to the week?
• These 3 ASX 200 shares are topping the volume charts on Monday
• 5 ASX 200 shares trading ex-dividend today

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 Bruce Jackson.

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This month could be a smart time to hunt for ASX share opportunities. Experts have identified two stocks that have the potential to deliver good returns in 2022.

Share prices are always moving, but experts believe that some of the recent declines have opened up strong opportunities:

Temple & Webster Group Ltd (ASX: TPW)

The Temple & Webster share price has fallen more than 50% over the past six months. Since the start of the year it has declined by 37%.

This business sells over 200,000 homewares and furniture products from hundreds of suppliers. The company uses a drop-shopping model where products are sent directly to customers by suppliers, enabling faster delivery times and reduces the need to hold inventory, allowing for a larger product range. It also means Temple & Webster can operate with negative working capital.

Temple & Webster is building out its own private label range, which comes with higher gross profit margins. The business continues to offer more products. It recently announced that it was working on growing in the home improvement sector – that includes things like plumbing supplies, painting, tools, flooring, garden and landscaping, window furnishings and so on.

The ASX share is growing quickly, which is helping long-term operating leverage and helps it invest more into marketing, technology and the customer experience. A key focus is the AI interior design service, as well as augmented reality (AR) so that the customer can see the product in their space.

Management think that Aussies will continue to do more online shopping. In 2020, the US had online penetration in the furniture and homewares market of 25.3%. That compared to between 7% to 9% for Australia in 2020. The suggestion is that Australia’s online penetration is headed that way.

UBS thought the Temple & Webster HY22 result was impressive, with revenue growth of 46%. It rates it as a buy, with a price target of $11.80.

Corporate Travel Management Ltd (ASX: CTD)

The Corporate Travel Management share price has fallen 10% over the last couple of weeks. But UBS is a fan of the business, with a buy rating and a price target of $28.20. It thought the business did well in the recent result despite the Omicron variant impacts and that the FY22 half-year result showed a number of positives.

The ASX share reported that it made an underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $18.2 million in the first half of FY22, compared to a loss of $15.2 million in the prior corresponding period.

There was positive underlying EBITDA in North America, Europe and ANZ regions. The Europe EBITDA was stronger than the FY20 first half, which was before COVID.

Corporate Travel Management said that its expert service and proprietary technology value proposition is more relevant in a complex recovery environment. It has seen record client wins thanks to “enhanced reputation”.

HY22 revenue was up 120% to $163 million, which was only 27% below pre-COVID revenue despite Omicron impacts.

Management are expecting a significant ramp-up of activity in regions where travel restrictions are relaxed or removed. The UK and USA are experiencing a rapid rebound in February 2022 as restrictions have been lifted.

It’s expecting underlying EBITDA to continue to build during February and March as organisations return to working in offices. The ASX share continues to assess acquisition opportunities.

UBS thinks the Corporate Travel Management share price is valued at 24x FY23’s estimated earnings.

The post 2 great ASX shares to buy in March 2022: experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Corporate Travel Management Limited and Temple & Webster Group Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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