Category: Stock Market

The sheer incline in lithium prices over the past year has left many investors with their jaws unhinged and on the floor. Shockingly, many industry experts suspect these remarkable prices will continue into the future.

Fattening the pockets of anyone in the lithium game, the commodity price has increased about 525% in the last 12 months. This has led to ASX lithium shares such as Pilbara Minerals Ltd (ASX: PLS) and Liontown Resources Limited (ASX: LTR) exploding 181% and 291% in value, respectively.

However, the all-important question is: can it stay this way? Well, based on the perspectives of certain mining veterans and analysts, the answer is a resounding — yes.

Let’s take a closer look at the reasoning behind the hype.

Fundamentals are on the right side of lithium prices

When searching for credible insights, nearly 32 years of industry experience doesn’t go astray. That’s how well-accustomed former Fortescue Metals Group Limited (ASX: FMG) exec and mining veteran, Greg Lilleyman, is to the commodity game.

Having served as chief operating officer at Fortescue, Lilleyman has shared in the success of booming industries — such as iron ore — in his time. Although, after leaving the $60 billion iron ore behemoth, Lilleyman has been salivating over a commodity of a different kind.

Joining the board of Global Lithium Resources Ltd (ASX: GL1) as a non-executive director, Lilleyman is banking on lithium prices to benefit from decarbonisation tailwinds. Global Lithium is another ASX-listed lithium name that has enjoyed astonishing returns of late. For context, the company’s shares are up 435% in the past year.

Lilleyman expects the commodity commonly used in electric vehicle (EV) batteries will be a winner moving forward, stating:

Prices go up, prices go down. But I genuinely believe structurally the prices will remain solid in the spodumene and lithium space because the fundamentals say it should. There’s nothing speculative about it.

Importantly, the veteran draws attention to a shortage of mines producing high-quality lithium. In addition, Lilleyman expects supply to be harder to source and more expensive due to environmental reasons and increased taxes. These factors combined could push lithium prices even further to the upside.

Analysts on the same page

Lilleyman is not alone in his assessment of the burgeoning lithium industry. Recently analysts from Citigroup and UBS have both shared a positive sentiment for future lithium prices.

Firstly, Citigroup outlined its expectations for an extreme lithium deficit in 2022. Additionally, the lack of lithium projects in the pipeline has led the analysts to raise their long-term price forecast by 36%.

Referencing an expected 10.7 million EV’s to be sold in 2022, Citigroup analysts stated:

EV penetration is on an ‘S-curve’ and high lithium prices are here to stay.

Meanwhile, the team over at UBS is supportive of these forecasts. Adding that the investment bank believes climate-friendly government policy will squash internal combustion engine vehicle sales by 2040.

The post Are high lithium prices here to stay? Industry insiders say yes appeared first on The Motley Fool Australia.

More reading

• Global Lithium (ASX:GL1) share price rockets 18% on ‘huge achievement’
• How has the Global Lithium (ASX:GL1) share price managed to surge 58% in 2022?

Motley Fool contributor Mitchell Lawler 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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It’s been solid past three weeks for the Bank of Queensland Limited (ASX: BOQ) share price, having climbed 9.3%.

It appears investors are unfazed by the current geopolitical turmoil between the West and Russia, as well the rising rate of inflation.

At market close on Friday, Bank of Queensland shares finished trading at $8.43, down 0.47%.

In contrast, the S&P/ASX 200 Index has lifted by 3.34% after falling to a 9-month low in late January.

While the regional bank hasn’t released any market-sensitive announcements since the end of 2021, we take a look at how its shares compare to the other big banks.

How does the Bank of Queensland share price stack up against the big banks?

Looking at the major banks’ share price performance against Bank of Queensland shares, and there is a clear picture of who’s winning the race.

Since 28 January, the Commonwealth Bank of Australia (ASX: CBA) share price has risen by 2.17%. This is based on the current price at market close on Friday of $97.75. Although CBA did break the $100 mark again on the back of their strong first-half results for FY22.

Moving onto the National Australia Bank Ltd. (ASX: NAB), the country’s second largest bank saw its shares jump 10.6%. Investor confidence in the bank surged on the release of the company’s positive first-quarter trading results.

Next up, the Westpac Banking Corp (ASX: WBC) share price accelerated an astonishing 14.06% over the last three weeks. The bank also released its first-quarter update earlier this month, with investors seemingly pleased with the results.

Lastly, the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price gained 2.48%, the same as CBA shares above. The fourth largest bank by market capitalisation failed to impress the market on 7 February, when it released its first-quarter report.

As you can see, Westpac shares come out as the clear winner over the past 3 weeks. NAB has taken second place followed by a close run at third place by Bank of Queensland shares.

Are Bank of Queensland shares a buy?

A number of brokers weighed in on the Bank of Queensland share price last month.

The team of analysts at Macquarie cut its 12-month price target on the regional bank’s shares by 5% to $9.50. Based on the current price of $8.24, this implies an upside of around 13% for investors.

Following suit, Morgan Stanley also reduced its outlook on Bank of Queensland shares by 2.9% to $10, reflecting a potential upside of around 19%.

Lastly, the brokers from Citi raised their outlook on Bank of Queensland shares by 5% to $10.50. This indicates an attractive upside of roughly 25% from where it trades today.

Bank of Queensland commands a market capitalisation of about $5.42 billion, with approximately 642.63 million shares on its books.

The post The Bank of Queensland (ASX:BOQ) share price has leapt 10% in 3 weeks. How does this compare to the other big banks? appeared first on The Motley Fool Australia.

More reading

• Morgans names 2 ASX 200 dividend shares to buy now
• This expert says the Westpac (ASX:WBC) share price has 25% upside
• Why ‘dependable and reliable dividend payers’ could be the antidote to current volatility: expert
• At today’s CBA (ASX:CBA) share price, how big will the FY22 dividend yield be?
• Why did the NAB (ASX:NAB) share price smash 4-year highs 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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The small end of the Australian share market is home to a number of companies with the potential to grow materially in the future.

Three that investors might want to get better acquainted with are listed below. Here’s why they should be on your watchlist:

Bigtincan Holdings Ltd (ASX: BTH)

The first small cap ASX share to look at is this leading provider of enterprise mobility software to businesses globally. Bigtincan’s software allows sales and service representatives to maximise their use of sales collateral to engage with customers and prospects more effectively.

Morgan Stanley is positive on Bigtincan’s future. So much so, it has an overweight rating and $2.10 price target on its shares. The latter is more than double the current Bigtincan share price.

BlueBet Holdings Ltd (ASX: BBT)

Another small cap ASX share to watch is this online sports betting company. Over the last couple of years, BlueBet has been growing its top line very strongly. This has been driven by the increasing popularity of mobile sports betting and its growing, but modest, market share. Management appears confident in can continue to grow its market share in Australia in the coming years and also has its eyes on the enormous US market.

The team at Morgans remains positive on BlueBet. The broker currently has an add rating and $1.60 price target on its shares. This is just less than double the current BlueBet share price of 84 cents.

Whispir Ltd (ASX: WSP)

A final small cap ASX share to watch is Whispir. It is a global scale SaaS company that provides a communications workflow platform that automates interactions between organisations and people. Whispir estimates that it has a total addressable market of US$4.7 billion in just the United States market. So, with management guiding to annual recurring revenue (ARR) of $65 million to $70 million in FY 2022, it clearly has a very long growth runway.

Canaccord Genuity recently reiterated its buy rating and $3.50 price target on the company’s shares. This compares to the latest Whispir share price of $2.06.

The post 3 small cap ASX shares with enormous upside potential 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. owns and has recommended BIGTINCAN FPO and Whispir Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO, BlueBet Holdings Ltd, and Whispir 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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If you don’t have the funds to build a truly diverse portfolio, then exchange traded funds (ETFs) could be a quick fix. This is because ETFs give investors access to a large number of different shares through just a single investment.

With that in mind, listed below are three ETFs that could be worth a closer look. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It tracks the performance of an index comprising the 50 largest technology and online retail stocks in Asia (excluding Japan). These companies are among the fastest growing in the region and are busy revolutionising the lives of billions of people. Among the ETF’s holdings are Alibaba, JD.com, Pinduoduo, Samsung, Taiwan Semiconductor, and Tencent.

BetaShares Crypto Innovators ETF (ASX: CRYP)

Another ETF to look at is the BetaShares Crypto Innovators ETF. It could be a good option for those that are interested in the cryptocurrencies industry rather than directly in coins. The fund manager notes that the ETF is designed to capture the full breadth of the crypto ecosystem, by providing exposure to pure-play crypto companies (including crypto exchanges, mining companies, and mining equipment providers), those whose balance sheets are held at least 75% in crypto-assets, and diversified companies with crypto-focused business lines. Among its holdings you’ll find Coinbase, PayPal, Riot Blockchain, Robinhood, Silvergate, and Square/Block.

BetaShares Global Cybersecurity ETF (ASX: HACK)

A final ETF from BetaShares to look at is the BetaShares Global Cybersecurity ETF. It provides investors with exposure to the leaders in the global cybersecurity sector. The fund manager notes that with cybercrime on the rise, the demand for cybersecurity services is expected to grow strongly for the foreseeable future. This bodes well for the companies included in the ETF such as Accenture, Cisco, and Cloudflare, Crowdstrike, and Okta.

The post 3 ETFs for ASX investors to watch in 2022 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. owns and has recommended BETA CYBER ETF UNITS and Betashares Crypto Innovators ETF. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF. 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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Looking at the Woolworths Group Ltd (ASX: WOW) share price right now, is it a buy or sell?

Woolworths shares have gone down 11.6% since the start of the year. Over the past six months it has fallen 18%. This has reversed the gains made in the second half of 2021.

In the last year, the Woolworths share price is slightly up, with a 1.6% gain.

What’s going on?

There was a steep sell-off of Woolworths shares on 14 December 2021 down to $37.45.

The supermarket business released a trading update about the first half of FY22.

It said that after the easing of lockdowns in New South Wales and Victoria during October, sales in ‘Australian food’ had moderated as customers return to more normal shopping habits. Total sales in the first half to the middle of December were up 3%.

But, it also said direct COVID costs in Australian food are expected to be approximately $150 million. On top of that, there has been indirect disruption to stores and distribution centres from operating in a COVID environment that has led to elevated operating costs of approximately $60 million to $70 million in the half.

Supply chain costs were also impacted by higher volumes, fuel price increases and the impact of balancing supply across distribution centres on the eastern seaboard.

E-commerce sales are still growing strongly. Online sales were up 50% in the half. While the profitability of e-commerce continues to improve, e-commerce sales are lower margin, which together with a decline in-store sales, has impacted overall profitability in the half.

Australian food FY22 first half earnings before interest and tax (EBIT) is expected to be between $1.19 billion to $1.22 billion (down from $1.31 billion last year).

Australian food may have the biggest influence on the Woolworths share price, but there are other divisions to keep track of.

Big W sales in the second quarter were stronger than the first. Second quarter sales were down 3.3% year on year, though first quarter sales were down 17.5%. Big W first half EBIT is expected to be $20 million to $30 million (down from $133 million).

New Zealand food sales growth was “strong” as it benefited from lockdowns and higher inflation.

The Woolworths share price also suffered during the broader share market correction in January 2022.

Is the Woolworths share price a buy or sell?

Opinions are mixed on the business.

Ord Minnett thinks that Woolworths shares are a buy, with a price target of $39.60.

However, Credit Suisse rates the business as a sell, with a price target of just $30.87. The broker thinks the growth outlook is slowing and is not confident that Woolworths’ profit margins won’t be affected by inflation. Inflation could also impact the retailer Big W.

Based on Credit Suisse FY22 estimates, the Woolworths share price is valued at 33x FY22’s estimated earnings with a grossed-up dividend yield of 3.1%.

Using Ord Minnett projections, Woolworths shares are valued at 30x FY22’s estimated earnings with a grossed-up dividend yield of 3.5%.

The post Is the Woolworths (ASX:WOW) share price a buy or sell right now? 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. 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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Respected fund manager Wilson Asset Management (WAM) has recently identified two promising ASX shares that it owns in one of its portfolio.

WAM operates several listed investment companies (LICs). Two of those LICs are WAM Capital Limited (ASX: WAM) and WAM Leaders Ltd (ASX: WLE).

There’s also one called WAM Active Limited (ASX: WAA) which looks at businesses it thinks are the most undervalued.

WAM says WAM Active invests in market mispricing opportunities in the Australian market.

The WAM Active portfolio has delivered gross returns (that’s before fees, expenses and taxes) of 11.2% per annum since inception in January 2008, which is superior to the Bloomberg AusBond Bank Bill Index return per annum of 2.8%.

These are the two ASX shares that WAM outlined in its most recent monthly update:

Champion Iron Ltd (ASX: CIA)

This is a mining business which is headquartered in Canada.

Champion Iron is described as a premium iron ore miner exploring the Bloom Lake and Fire Lake projects in the Canadian province of Quebec.

Last month, Champion Iron announced in its third quarter update that its growth project ‘Phase II’ remains on track for an April completion.

The ASX share has announced its dividend of C$0.10 per share. It also continues to invest for growth as well.

Champion Iron has increased its leverage to higher iron ore prices. It’s progressing growth projects which are expected to double product output this year.

WAM is still bullish on the business and expects “considerable” free cash flow will be generated by the completion of the ‘Phase II’ project.

Life360 Inc (ASX: 360)

The fund manager describes Life360 as a business which provides a family safety platform that allows parents to track the whereabouts of their children. It has over 33 million users globally.

WAM said the initial catalyst for the investment was the appointment of Randi Zuckerberg, the sister of Meta (Facebook) founder, CEO and Chair Mark Zuckerberg.

In January 2022, Life360 provided an update for the quarter for the three months to December 2021. This showed the third consecutive quarter of record subscribers, which led to a 62% increase in revenue growth. It beat previous company guidance.

The fund manager also noted that the ASX share completed the acquisition of Bluetooth tracking device company Tile in January 2022. The holiday period trading was tracking to plan.

This environment of rising bond yields and the rotation out of higher growth shares has impacted some share prices, so WAM has “managed” the position size accordingly.

Life360 and its underlying business model are “strengthening” according to the fund manager, with the acquisition of Tile causing the company to emerge as a global leader in location tracking services. WAM says the outlook remains positive.

The investment team believe that a potential dual-listing in the US remains a key catalyst for the company.

The post 2 promising ASX shares this fund manager likes 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 Life360, Inc. 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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If you’re an income investor in search of dividend shares to buy, then you may want to look at the two options listed below.

Both shares are being recommended as buys by the team at Morgans. Here’s what they are saying about these ASX 200 dividend shares:

South32 Ltd (ASX: S32)

The first ASX 200 dividend share that Morgans thinks is in the buy zone is South32. It likes the mining giant due to its attractive valuation and the robust prices it is enjoying across its basket of metals. Morgans notes that the latter is allowing the miner to increase its dividend, upsize its buyback, and strengthen its balance sheet.

While the broker acknowledges that the South32 share price has risen strongly in recent months, it still expects attractive dividend yields in the near future.

Morgans commented: “But despite the increase this share price rise has only matched S32’s earnings growth. S32 is still trading on just 4x EBITDA and with a FCF yield of 11% (vs iron ore peers above 6x and pure base metal producers +10x EBITDA). While ‘late to the party’, we expect S32’s share price to continue to re-rate as it completes its accretive copper acquisition and continues to enjoy cycle high FCF. We maintain our Add rating with S32 a preferred exposure in the mining sector.”

Its analysts are forecasting fully franked dividends of 20.2 cents in FY 2022 and then 18.8 cents in FY 2023. Based on the current South32 share price of $4.57, this will mean yields of 4.4% and 4.1%, respectively.

Morgans has an add rating and $4.90 price target on its shares.

Westpac Banking Corp (ASX: WBC)

Another ASX 200 dividend share that Morgans likes is Westpac. It believes the banking giant’s shares are cheap at the current level and is expecting them to provide a generous yield for investors.

In respect to its valuation, the broker feels the market is pricing Westpac as though it were a value trap. However, it feels its recent update demonstrates that this simply isn’t the case and has retained its add rating and $29.50 price target.

Morgans said: “We believe the trading update supports the view that the challenges facing WBC are not unsurmountable and that the stock should not be priced like a value trap. We believe the update particularly serves to alleviate investor concerns around the cost outlook.”

As for dividends, the broker is forecasting fully franked dividends per share of $1.19 in FY 2022 and then $1.60 in FY 2023. Based on the current Westpac share price of $23.53, this will mean yields of 5% and 6.8%, respectively.

The post Morgans names 2 ASX 200 dividend shares to buy now appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns Westpac Banking Corporation. 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 Westpac Banking Corporation. 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 Westpac Banking Corp (ASX: WBC) share price could have a lot of upside according to one expert.

Westpac is one of the big four ASX banks. It’s now smaller than both Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB). But Westpac remains a bit bigger than Australia and New Zealand Banking Group Ltd (ASX: ANZ).

It has been a tough ride for long-term Westpac shareholders. Over the past five years, Westpac shares have dropped 31%.

However, interestingly, the Westpac share price has jumped 14% since the release of its FY22 first quarter performance. So let’s take a look at some of the highlights of that. It was this update that the broker Morgans got a good look at Westpac.

FY22 first quarter

In early February, Westpac announced that for the three months to 31 December 2021, it generated $1.82 billion of statutory net profit after tax (NPAT). This was an 80% increase on the quarterly average from the second half of FY21.

The headline cash earnings were also up heavily over the quarter, up 74% to $1.58 billion. However, excluding notable items, cash earnings were only up 1%. Investors often like to look at the profit (and direction of profit) to decide what level to value the Westpac share price.

Westpac’s lending was up $5 billion, or 0.7%, in the first quarter. This was across institutional, mortgages and New Zealand.

The net interest margin (NIM) was 1.91%, down 8 basis points because of competition and higher liquid assets.

Westpac’s expenses came to $2.7 billion, which was down 26%. Excluding ‘notable items’, expenses were down 7%. It has reduced its headcount by more than 1,100. Costs are expected to be lower in FY22 and decline through the year, including from an organisational simplification. It’s committed to an $8 billion cost target by FY24.

The big four ASX bank recognised an impairment charge of $118 million, mostly from reflecting increased provision overlays due to continuing COVID-19 related uncertainty. However, Westpac said that asset quality metrics continue to improve.

Westpac also said that its balance sheet remains strong, with a common equity tier 1 (CET1) capital ratio of 12%, comfortably above APRA’s new benchmark of 10.25% for the major banks.

Westpac share price upside

The big four ASX bank is rated as a buy by the broker Morgans with a price target of $29.50. That’s a potential increase of around 25% over the next year. Morgans thinks Westpac shares shouldn’t be priced as cheaply as it is/was after successfully cutting (some) costs and a better outlook.

Based on the latest Westpac share price, Morgans values the bank at 10x FY23’s estimated earnings with a FY23 projected grossed-up dividend yield of 9.7%.

The post This expert says the Westpac (ASX:WBC) share price has 25% upside 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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 tech sector has fallen out of favour with investors in 2022. This has led to many tech shares falling heavily.

While this is disappointing, it may have created a buying opportunity for investors. For example, the three tech shares listed below have been tipped as buys with major upside potential. Here’s what you need to know about them:

Life360 Inc (ASX: 360)

The first ASX tech share to look at is San Francisco-based app maker Life360. Its eponymous app offers families a wide range of safety solutions for the modern world. This includes real-time location sharing and notifications, driving safety features like Crash Detection and Roadside Assistance, and messaging. At the last count, the company had over 3313 million monthly active users.

Bell Potter is very positive on the company. It currently has a buy rating and $13.51 price target on its shares. This is almost double the current Life360 share price of $7.00.

Nitro Software Ltd (ASX: NTO)

Another ASX tech share to look at is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world. Its key solution is the Nitro Productivity Suite, which provides integrated PDF productivity and electronic signature tools to customers. Demand has been growing strongly in recent years and has continued in FY 2022, underpinning further stellar recurring revenue growth.

Goldman Sachs is very positive on the company and notes that it has a total addressable market (TAM) of US$34 billion. The broker recently initiated coverage on its shares with a buy rating and $2.95 price target. This is 66% higher than the current Nitro share price of $1.78.

PointsBet Holdings Ltd (ASX: PBH)

A final ASX tech share to look at is PointsBet. It is a growing sports wagering operator and iGaming provider. PointsBet offers innovative sports betting products and services to punters in the ANZ and North American markets via its scalable cloud-based platform. Its shares have fallen materially in recent months despite it continuing to grow its revenues at a rapid rate.

Goldman Sachs appears to see this as a buying opportunity. It recently retained its buy rating and $9.97 price target. This is more than double the current PointsBet share price of $4.50.

The post 3 buy-rated ASX tech shares with at least 60% upside potential appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Life360, Inc. and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Nitro Software Limited and 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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I’m a big fan of buy and hold investing and believe it is one of the best ways for investors to grow their wealth.

To demonstrate how successful it can be, I like to pick out a number of popular ASX shares to see how much a single $20,000 investment 10 years ago would be worth today.

This time around I have picked out the two ASX shares that are listed below:

Premier Investments Limited (ASX: PMV)

Premier Investments shares have been a great place to invest your money over the last decade. This is thanks to the strong sales and profit growth that have been underpinned by its high quality portfolio of retail brands and its successful investments in other listed companies such as Breville Group Ltd (ASX: BRG).

The stars of the show have arguably been its Peter Alexander and Smiggle brands, which have grown materially over the last decade. And the good news is that management still sees plenty of growth opportunities ahead for the brands.

Overall, Premier Investments shares have provided investors with an average total return of 21.3% per annum over the last 10 years. This would have turned an investment of $20,000 in the company’s shares into almost $140,000 today.

Pro Medicus Limited (ASX: PME)

Another ASX share that has smashed the market over the last 10 years is Pro Medicus. It is a leading provider of radiology information systems (RIS), Picture Archiving and Communication Systems (PACS), and advanced visualisation solutions across the globe.

Pleasingly, demand for Pro Medicus’ technology continues to increase as healthcare institutions shift away from legacy systems. This has led to many of the largest health institutions in the world signing long-term contracts in recent years. They appear to have been attracted to its best in class system which combine speed, scalability, stability and smarts to help eliminate administrative tasks and workarounds, optimise the efficiency of clinical and administrative staff, and maximise profits.

All in all, the Pro Medicus share price has generated an average annual total return of 68% per annum since this time in 2012. This would have turned a $20,000 investment into a staggering ~$3.6 million.

The post Here’s how rich you’d be if you invested $20k in these shares 10 years ago 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. owns and has recommended Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Premier Investments 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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