Category: Stock Market

With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

BHP Group Ltd (ASX: BHP)

A note out of Macquarie reveals that its analysts have retained their outperform rating and lifted their price target on this mining giant’s shares to $60.00. Macquarie has upgraded its earnings estimates and valuation in response to higher commodity prices. The broker also highlights that BHP’s shares are trading on a double-digit free cash flow yield, which bodes well for dividends in the coming years. The BHP share price is fetching $47.48 at the time of writing.

CSL Limited (ASX: CSL)

According to a note out of Citi, its analysts have retained their buy rating and $335.00 price target on this biotherapeutics company’s shares. Citi has been looking at industry data and believes that plasma collections will be above pre-pandemic levels in 2022. Combined with the potential completion of its acquisition of Vifor Pharma, it feels this could give investor sentiment a major boost. The CSL share price is trading at $262.56 on Monday afternoon.

Dicker Data Ltd (ASX: DDR)

Analysts at Morgan Stanley have commenced coverage on this IT distributor’s shares with an overweight rating and $16.00 price target. Morgan Stanley believes Dicker Data is well-placed for growth over the medium term thanks to industry tailwinds. Especially given its leadership position in the industry and strong technical capabilities thanks to its new distribution centre. The Dicker Data share price is trading at $13.88 this afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Elders jumps, Magellan and Zip tumble
• 5 things to watch on the ASX 200 on Monday
• $20k invested in these ASX shares 10 years ago is now worth…
• The CSL (ASX:CSL) share price has struggled to gain traction in 2022. Does that make it cheap?
• ‘What’s not to like’ about BHP (ASX:BHP) shares? Experts weigh in

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 CSL Ltd. and Dicker Data Limited. The Motley Fool Australia owns and has recommended Dicker Data 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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The Flight Centre Travel Group Ltd (ASX: FLT) share price is in the green today amid the company’s announcement of a travel technology investment.

The travel company’s shares are currently trading at $18.85, a 1.84% gain, after reaching as high as $18.98 earlier in the session.

Let’s take a look at what Flight Centre announced today.

What did Flight Centre announce?

Flight Centre has boosted its interest in travel technology business TP Connects (TPC) from 22.5% to 70%.

TPC is a Dubai-based software as a service (SaaS) business. Flight Centre said TPC has been at the forefront of changes to traditional distribution models.

Flight Centre said the investment reinforces its commitment to provide customers with the “widest choice of airfares”.

Commenting on the announcement, Flight Centre leisure and supply chief executive officer Melanie Waters-Ryan said:

By investing further in the business, we have greater influence over future developments and the product’s ongoing evolution, while ensuring we continue to deliver the widest choice of airfares to our customers.

Greater influence over future developments will also provide FLT with a better opportunity to be ahead of our competitors’ comparable solutions.

TPC has been at the heart of the evolution in airfare distribution during the past decade, is now ingrained in our business and is integral to the new operating systems and platforms we are delivering in both the leisure and corporate sectors.

Flight Centre said the investment will lower costs, improve margin, and provide the company with access to new revenue schemes.

In other travel shares, the Qantas share price is up 2.16% today, while Webjet is up 1.29%.

Travel shares may be receiving a boost from a fall in oil prices on global markets. The Brent Crude Oil price has fallen 3.76% while the WTI Crude Oil price has dropped 3.87%, according to Bloomberg. Oil prices can impact airline fuel costs.

Flight Centre share price snapshot

The Flight Centre share price has jumped 6.75% since the start of 2022 and has held a 086% gain over the past year.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has returned 5% in the past year.

The company has a market capitalisation of about around $3.8 billion based on its current share price.

The post Flight Centre (ASX:FLT) share price climbs amid technology investment appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Here’s why ASX 200 travel shares are having another stellar day
• ASX 200 (ASX:XJO) midday update: Rio Tinto goes ex-div, tech and travel shares rebound
• Why is the Flight Centre (ASX:FLT) share price having such a volatile time in 2022?
• ASX travel shares rebound despite rising oil prices

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 Flight Centre Travel Group 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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A number of popular ASX 200 shares are likely to fall tomorrow despite no news coming from the companies.

The conclusion of the February earnings season has led to a vast majority of ASX shares trading ex-dividend in March.

The ex-dividend date is when investors must have purchased a company’s shares beforehand to be eligible for the upcoming dividend. If an investor buys the shares on or after this date, the dividend will go to the seller.

Below, we take a look at the list of shares that are trading ex-dividend tomorrow.

Sandfire Resources Ltd (ASX: SFR) shares will trade ex-dividend for the mining company’s 3 cents per share fully franked dividend. This will be paid to eligible shareholders on 30 March. Sandfire shares are currently swapping hands for $5.55, up 0.91%.

TPG Telecom Ltd (ASX: TPG) shares will also trade ex-dividend on Tuesday for the telco giant’s fully franked 8.5 cents per share final dividend. Shareholders will have to wait until 13 April for their paycheck. TPG shares are fetching for $5.66 apiece, up 1.25%.

Yancoal Australia Ltd (ASX: YAL) shares are set to trade without the rights to the mining outfit’s unfranked 70.4 cents per share final dividend. Yancoal shareholders will then be paid this dividend on 29 April. At the time of writing, Yancoal shares are going for $5.18, up 0.78%.

Foolish Takeaway

To qualify for any of these dividends you need to make sure you are on the share registry at the close of trade today.

After that, you will still qualify for the dividend even if you sell the shares tomorrow or at a later date.

The post These ASX 200 shares trade ex-dividend tomorrow. Here’s what you need to know appeared first on The Motley Fool Australia.

More reading

• Want to secure this monster ASX coal share dividend? Here’s what you need to do next week
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Why the Ukraine crisis is shining the spotlight on ASX coal shares
• 3 reasons why Soul Pattinson (ASX:SOL) is a strong ASX dividend share idea
• Here are the top 10 ASX shares 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 recommended TPG Telecom 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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With sky high fuel prices expected to accelerate the already rapid shift to electric vehicles, demand for lithium looks set to continue to increase strongly in the coming years.

This bodes well for prices of the battery making ingredient and the companies mining the white metal.

With that in mind, let’s take a look at two ASX lithium shares that have been rated as buys and tipped to shoot notably higher from current levels. They are as follows:

Allkem Ltd (ASX: AKE)

The first ASX lithium share to look at is Allkem. It is a top five player in the industry following the merger of Galaxy Resources and Orocobre last year. Allkem has a portfolio of high quality operations and projects across a range of locations and is already benefiting greatly from high lithium prices.

Morgans is very positive on Allkem and recently named the company as its top pick in the sector. It has an add rating and $14.83 price target on the company’s shares. This compares to the latest Allkem share price of $10.46.

Morgans commented: “AKE is a pure play lithium producer with diversified products (spodumene, LiCO and borax) and geographies (WA and Argentina) that is set to expand. The almost completed Naraha plant will allow AKE to grow vertically into the lithium hydroxide market, supported by increased Argentinian brine production.”

“The lithium market has seen strong price increases in CY21 but we don’t see signs of a break to this momentum yet. We expect EV demand to remain strong with geopolitical events and a potentially tight oil market accelerating the shift towards electrification,” it added.

Vulcan Energy Resources Ltd (ASX: VUL)

Another ASX lithium share to look at is Vulcan. It is the Germany-based lithium developer behind the massive Zero Carbon Lithium Project. Management notes that this is Europe’s largest lithium resource and large enough to satisfy Europe’s lithium needs for many years to come.

While it is not yet producing lithium, management is aiming to commence production in 2024. At which point, it has signed away huge volumes of lithium already to eager buyers.

This went down well with Germany-based broker Alster Research. It currently has a buy rating and $25.00 price target on the company’s shares. This compares to the latest Vulcan share price of $9.10.

It commented: “By finalizing the deal with LGES, Vulcan has now five definitive agreements with high-profile customers. We consider this as a clear sign for the high demand for battery metals from the phasing out of the combustion engine. At this point, Vulcan has marketed its initial production volumes for the first 5-6 years.”

“In the near term, we expect the admission to FSE as a catalyst for the stock, as future capital increases will be accessible to a broader audience. Thus, liquidity and interest will most likely increase. We confirm our PT of AUD 25.00, equivalent to EUR 15.81, and reiterate our BUY recommendation,” Alster added.

The post 2 ASX lithium shares that brokers rate as buys with huge upside potential appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• 3 ASX lithium stocks that brokers rate as buys
• 3 excellent ASX growth shares analysts believe have huge upside potential
• Why did the Vulcan Energy (ASX:VUL) share price plunge 6% on Monday?
• Get ready! The ASX shares set for a decade-long tailwind: expert

Motley Fool contributor James Mickleboro owns Orocobre 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 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 Nickel Mines (ASX: NIC) share price is falling today amid an update on its Oracle Nickel Project.

Nickel Mines shares are currently trading on the ASX at $1.17, a 2.5% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 1% at the time of writing.

Let’s take a look at what is happening at Nickel Mines.

Oracle nickel project

Nickel Mines advised the company’s Oracle Nickel Project in Indonesia has been granted corporate tax relief. The project is under construction at the Indonesia Morowali Industrial Park in Central Sulawesi, Indonesia.

Nickel mines signed an agreement with partner Shanghai Decent Investment to acquire a 70% interest in the project in December. In February, the miner completed the acquisition of an initial 10% interest in the project.

The venture has been granted tax concessions for 10 years of production plus a further 2 years at 50% of the corporate Indonesian tax rate.

Nickel Mines managing director Justin Werner said the Oracle Nickel Project has made “tremendous progress” since December.

All 12 of our RKEF lines that are either in operation, commissioning or under construction have been granted these tax concessions in recognition of meeting the expenditure and investment conditions set by the Indonesian government.

These tax concessions along with the very low levels of sustaining capex required by our RKEF operations have resulted in 97%-99% EBITDA to free cash flow conversion over the course of 2021.

Nickel Mines hopes to complete its 70% stake in the project by the end of the year.

Last week, the Nickel Mines share price had a turbulent week. The company’s shares have fallen 29% from market close on Monday 7 March to their current price.

As my Foolish colleague Tristan reported, the company addressed media speculation regarding a short position in LME nickel held by the Tisinghan group.

Nickel Mines also withdrew a share purchase plan after receiving applications totalling $57 million. The company had been aiming to raise $18 million.

Last week, the London Metal Exchange suspended trading in nickel after record price increases on commodity markets.

Nickel mines on the ASX snapshot

The Nickel Mines share price has plunged around 17% in the past year, dropping 18% year to date.

In the past month, the miner’s shares have taken an 18% hit, sliding 29% in the past week alone.

For perspective, the benchmark ASX index has returned around 5% over the past year.

The post Nickel Mines (ASX:NIC) share price slides despite Indonesian project update appeared first on The Motley Fool Australia.

More reading

• 5 ASX shares making unbelievable news this week
• These were the worst performing ASX 200 shares last week
• These 3 ASX 200 shares are topping the volume charts this Friday
• Why Core Lithium, Nickel Mines, SG Fleet, and Whitehaven Coal are pushing higher
• ASX 200 (ASX:XJO) midday update: Block falls, Nickel Mines jumps

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 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 past few months have not been friendly to high-multiple, high-growth tech stocks. Soaring inflation has pushed the Fed to plan to raise interest rates this year, sparking a sell-off into safer assets. Add in the recent geopolitical turmoil, and we have the ingredients for major uncertainty in the stock market. 

Streaming platform Roku (NASDAQ: ROKU) has been severely affected and its stock has been in a downward spiral since last July. Roku’s share price has fallen roughly 50% so far in 2022, as overall market pessimism continues hammering the stock. The company is also facing its own set of problems, giving investors lots to think about. 

Should you scoop up discounted shares in this streaming business today? Let’s take a closer look.

Roku is dealing with inflation 

Like the rest of the economy, Roku is facing inflationary pressures and supply-chain issues relating to the company’s sale of media sticks. While hardware sales only represented 17% of the business in 2021, over the past three quarters, Roku has posted a widening loss — a negative 28.4% in the most recent quarter on a gross margin basis. Management has decided not to pass on higher component costs to customers. 

Roku’s licensed TV partners are also trying to navigate the situation. “Similar to Q3, overall U.S. TV unit sales in Q4 fell below pre-COVID 2019 levels,” Anthony Wood, Roku’s founder and CEO, highlighted in the shareholder letter. These inventory challenges are clearly hurting sales figures. Since Roku’s main objective is to get its operating system into as many households as possible, any headwind to achieving this certainly hurts company performance.  

In 2021, 83% of Roku’s overall sales came from its platform segment, which includes high-margin advertising and subscription fees. This is the bread and butter of the business, but even it is struggling in the current economic environment. Organizations that advertise on Roku’s platform, particularly in industries like autos and consumer packaged goods, pared back ad spend in the fourth quarter due to their own supply chain disruptions. 

Although Roku increased revenue 33% in Q4 2021, the growth rate missed Wall Street expectations. Furthermore, first-quarter 2022 guidance of 25% year-over-year sales growth disappointed as well. Higher component costs and ongoing supply-chain challenges will continue to negatively affect Roku in the near term, so investors shouldn’t be surprised if the player segment’s gross margin remains negative in the next few quarters. 

On a positive note, I believe that these issues will prove to be temporary. And the market’s pessimism on Roku provides a great buying opportunity for investors. 

The future still looks promising 

If we zoom out and focus on the bigger picture, we’ll see that Roku is in a prime position to benefit from the world’s transition away from traditional cable TV and toward streaming entertainment. 

Roku is the top streaming platform in the U.S., Canada, and Mexico by hours streamed. In 2021, Roku’s 60.1 million active accounts (up 17% year over year) viewed 19.5 billion hours (up 15% year over year) of content. And monetization continues showing strength. Average revenue per user of $41.03 over the trailing 12 months was up 43% compared to the prior-year period.  

There are 1 billion cable-TV subscriptions worldwide, signaling a massive opportunity ahead for Roku. On a micro level, Roku’s management cites Nielsen data that shows that the average household in the U.S. watches eight hours of TV per day. And Roku’s average active account streams 3.6 hours per day, leaving room for engagement to grow in order to control more TV time. 

And as more TV time goes to streaming, advertising dollars will ultimately follow. According to eMarketer, connected-TV ad spending in the U.S. is forecast to exceed $30 billion in 2025, increasing its share of total digital ad spending. Roku is in an extremely advantageous position to capitalize on this trend. 

Valuation is at a three-year low

Roku’s stock is now trading for 5.7 times 2021 revenue. This is the lowest multiple shares have sold for in about three years. The market has completely thrown out Roku with other tech stocks. But this business is a huge leader in the streaming space, and it also has the chance to capture a big chunk of ad dollars that will inevitably flow to connected TV over the next decade. 

With a more attractive valuation today and a long-term thesis that remains intact, Roku’s stock looks like a screaming buy right now. 

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

The post Down 50% in 2022, should you buy this top streaming stock right now? appeared first on The Motley Fool Australia.

More reading

• 2 ASX lithium shares that brokers rate as buys with huge upside potential
• Nickel Mines (ASX:NIC) share price slides despite Indonesian project update
• Woodside (ASX:WPL) share price slips but CEO says Ukraine puts ‘spotlight’ on natural gas
• ASX 200 (ASX:XJO) midday update: Elders jumps, Magellan and Zip tumble
• The CBA (ASX:CBA) share price has gone nowhere in 10 months… time to buy?

Neil Patel owns Roku. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Roku. 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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A message from our CIO, Scott Phillips:

“G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to war in Ukraine.”

————

Even though it’s only around lunchtime, the Woodside Petroleum Limited (ASX: WPL) share price has already had a wild ride so far during today’s trading. At present, Woodside shares are down 0.63% at $31.78. But soon after market open, Woodside shares were up, and up convincingly. After opening at a flat $32 a share after closing at $31.98 last week, Woodside quickly rose as high as $32.49 in the first hour or two of today’s session. That was a gain close to 1%. But it wasn’t to last.

So what on earth is going on here? After all, oil prices have started the week on the rise. As my Fool colleague James covered this morning, oil was up more than 3% overnight, although that was after a week of heavy falls last week. So it could be some deeper issues that investors are having with the global ructions in the energy market that are currently playing out.

According to a report in The Australian today, Woodside CEO Meg O’Neill reckons the spotlight is now on natural gas, particularly in light of the war in Ukraine. Not only have oil prices exploded in recent weeks, largely due to the fallout from the war, but gas prices have followed suit.

Woodside share price falls, but CEO says gas is the future

O’Neill told the Australian that 20-25% of Woodside’s LNG (liquified natural gas) production in 2022 will be sold at spot prices, which means the company will benefit well from the rising prices. Unfortunately, she doesn’t believe Woodside is in a position to meaningfully make up any shortfalls in the European gas market that have resulted from the sanctions that European nations are placing on Russia: “the transportation costs just make it uneconomic”.

However, she is more excited about the role Woodside can play in helping wean Japan off Russian gas. Japan, the third-largest economy in the world, reportedly “buys between 20 and 25 per cent of Russia’s LNG exports”. Here’s what O’Neill had to say about that opportunity:

What the Japanese do in the short term is a little hard for me to say. Long term, I think Japan will be looking to the question of where should they get their energy from and they will be leaning more towards countries like Australia.

Even though Woodside shares have had a tough day today, the ASX 200 energy giant is still up almost 40% in 2022 so far.

At the current Woodside share price, the oil company has a market capitalisation of $31.01 billion, with a dividend yield of 5.85%.

The post Woodside (ASX:WPL) share price slips but CEO says Ukraine puts ‘spotlight’ on natural gas appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Why are ASX 200 oil shares taking such a beating today?
• Why Newcrest, Nickel Mines, Rio Tinto, and Woodside shares are dropping today
• Woodside (ASX:WPL) share price tumbles but boss sees ‘a change with us for decades’

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 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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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a strong gain. The benchmark index is currently up 1.1% to 7,142.8 points.

Here’s what is happening on the ASX 200 today:

Elders shares jump

The Elders Ltd (ASX: ELD) share price is shooting higher today after the release of a trading update. The agribusiness company revealed that trading conditions have been strong during the first half. As a result, it is expecting its underlying earnings before interest and tax (EBIT) to increase by 20% to 30% in FY 2022.

Magellan funds under management fall again

The Magellan Financial Group Ltd (ASX: MFG) share price is under pressure again on Monday. The fund manager’s shares dropped to a multi-year low after it revealed a 10.5% reduction in its funds under management since 25 February. At the close of US trading on Friday 11 March, Magellan had funds under management of approximately $69.1 billion. This compares to $77.2 billion late last month. Its poor performing global fund weighed heavily on its funds under management again.

CSL higher on plasma collection optimism

The CSL Limited (ASX: CSL) share price is rising today. This appears to have been driven by optimism that plasma collections are improving. A note out of Citi highlights that industry data is pointing to a recovery in collections. So much so, it is forecasting 2022 collections to be above pre-pandemic levels. The broker expects this and the completion of its acquisition of Vifor Pharma to support its shares in the coming months. Its analysts have a buy rating and $335.00 price target on its shares.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Elders share price with an 11% gain. This follows the release of its impressive trading update this morning. The worst performer has been the Zip Co Ltd (ASX: Z1P) share price with a 3% decline. Zip’s shares are now down 65% in 2022.

The post ASX 200 (ASX:XJO) midday update: Elders jumps, Magellan and Zip tumble appeared first on The Motley Fool Australia.

More reading

• 2 punished ASX shares that don’t deserve to be (and experts are buying)
• Why is the Elders (ASX:ELD) share price jumping 11% to a decade-high?
• Magellan (ASX:MFG) share price hits multi-year low after fund outflows accelerate
• Down 14% in a month, why the Pilbara Minerals (ASX:PLS) share price is attractive right now: analyst
• $20k invested in these ASX shares 10 years ago is now worth…

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 CSL Ltd. and ZIPCOLTD FPO. 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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The Commonwealth Bank of Australia (ASX: CBA) share price has amassed a reputation as a winner on the S&P/ASX 200 Index (ASX: XJO). It’s hard not to do so when CBA shares have outstripped the performance of all of your ASX banking peers in recent years. Indeed, the CBA share price is the only one out of the ASX 200 big four banks to have enjoyed a new all-time high in the past 7 years or so. 

But CBA’s march has certainly slowed in recent months. At the time of writing, CBA shares are sitting at $101.15. That’s up a healthy 1.78% so far today. Alas, that’s pretty much the same level they were commanding in May last year, a good 10 months ago. And we haven’t seen the CBA share price get close to its all-time high of $110.19 that we saw late last year for a while now.

That represents quite a change of pace for CBA shares. When it last hit an all-time high in November last year, CBA had spent the preceding 12 months rising by more than 57%. That high watermark also represented a 20% premium to where CommBank shares were just before the COVID-induced crash of 2020. And back then, CBA was also at what was then an all-time high.

So now that CBA has been stuck in the mud for a few months, could this be a time to pick up its shares today? Is the CBA share price a buy right now? 

Buy or sell for the CBA share price? Here’s what the brokers say

Broker opinion remains mixed on the CBA share price. Investment bank Goldman Sachs is one such broker who isn’t wild about CBA shares and where they stand today. Upon news that the Bank would be offloading half of its share in China’s Bank of Hangzhou earlier this month, Goldman retained its sell rating on CBA with a 12-month share price target of $82.94. 

This broker reckons there is still too much of a premium priced into CBA shares. It points out that the bank trades expensively compared to its peers. If CBA indeed descends to this pricing level over the next year, investors would be out of pocket by close to 20%. 

But fellow broker Bell Potter disagrees. As my Fool colleague James covered earlier this month, Bell Potter is still buy rated on the CBA share price, with a 12-month share price target of $108. That implies an upside of roughly 7% going forward. This broker is more bullish on CBA’s overall metrics, including return on equity and cash flows.

So one of these brokers is going to be wrong over the coming year. Unfortunately, we don’t know which one yet. But investors will have a clear favourite, I’d wager.

At the current CBA share price, this ASX 200 banking share has a market capitalisation of $172.17 billion, with a dividend yield of 3.72%.

The post The CBA (ASX:CBA) share price has gone nowhere in 10 months… time to buy? appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to sell next week
• Why has the CBA (ASX:CBA) share price climbed 7% so far this month?
• Own CBA (ASX:CBA) shares? Here’s why the bank’s boss is ‘very optimistic’ for 2022
• Is the Westpac (ASX:WBC) share price the cheapest bank to buy right now?
• Record $36bn in dividends could help ASX share market recovery

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 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 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.

Amazon (NASDAQ: AMZN) announced a 20-for-1 stock split after the market closed on March 9. Typically, a split announcement draws a lot of attention to a stock and Amazon is no exception. 

Despite recent loss-taking by the broad market, Amazon’s shares were up more than 6% on the day following the announcement. That said, a pending split should not be the sole reason investors buy or sell a stock.

Let’s look at some of the details of the announcement and, more importantly, at Amazon’s business prospects to determine if investors should buy its stock before the split.

Amazon announces 20-for-1 stock split 

While Amazon announced the 20-for-1 stock split on March 9, the move will not take effect immediately. Management still needs to gain shareholder approval on a vote slated for May 25. If approved, Amazon will trade on a split-adjusted basis on June 6.  

Note, however, that the change will not increase or decrease shareholder ownership. You will not suddenly own 20 times more of Amazon’s business than before the split. Instead, your current ownership will be sliced more thinly. In the end, shareholders are left with the same magnitude of ownership, split into more pieces. 

Amazon’s business prospects 

Digging into Amazon’s business prospects, investors may find it more exciting than the news of the split. The company has increased revenue from $61 billion in 2012 to $479 billion in 2021. The explosive revenue growth has flowed to operating income, which increased from $676 million to $24.9 billion in that same time.

Amazon has evolved through the years, starting from a tiny bookseller to an e-commerce giant and now much more. Indeed, its more profitable Amazon Web Services segment has grown to an annual revenue run rate of $71 billion as of its quarter ended December 2021. What’s more, Amazon generated over $30 billion in advertising revenue in the trailing 12 months.

It has all crescendoed in excellent shareholder returns and earnings-per-share (EPS) growth. In the last decade, Amazon has compounded earnings per share at a rate of 47.1%. Similarly impressive, its share price has increased by more than 1,500% over that period.

Amazon’s stock price valuation 

Fortunately for potential investors, Amazon has been selling at its lowest price-to-earnings (P/E) ratio in the past five years. The market is concerned about how the economic reopening will affect sales and customer retention at Amazon in the near term. As a result, Amazon is trading at a P/E of 45, down from its peak of over 240 reached in 2018.

Before or after a stock split, Amazon is an excellent stock to buy for long-term investors. Better yet, to minimize the impact from trading activity surrounding the stock split, investors can split their purchase in two, buying half of their allocation before and half after the June 6 inflection point. 

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

The post Should you buy Amazon stock now or wait until after the stock split? appeared first on The Motley Fool Australia.

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• Is Amazon stock a buy now before the 20-for-1 stock split?
• Amazon makes its case to join the Dow
• Amazon (NASDAQ:AMZN) announces US$10b share buyback and 20-for-1 split
• Why Rivian tanked ahead of earnings after the bell
• 3 stocks that could be worth more than Apple by 2035

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Parkev Tatevosian owns Amazon. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Amazon. The Motley Fool Australia has recommended Amazon. 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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