Category: Stock Market

The GrainCorp Ltd (ASX: GNC) share price is storming higher following the company’s business update to investors this morning.

At the time of writing, the grain exporter’s shares are up a sizeable 12.76% to $8.13. In comparison, the All Ordinaries (ASX: XAO) is down 0.37% to 7,391.6 points.

What did GrainCorp announce?

Investors are fighting to get a hold of GrainCorp shares after the company provided its FY22 earnings guidance.

According to its release, GrainCorp advised that it expects to report a bumper FY22 result subject to several market variables.

As such, the company is forecasting earnings before interest, tax, depreciation and amortization (EBITDA) in the range of $480 million to $540 million. This reflects a potential increase of up to 63.14% based on FY21’s EBITDA result of $331 million.

In addition, FY22 net profit after tax (NPAT) is estimated to come between $235 million and $280 million. When comparing against FY21’s NPAT of $139 million, this represents a potential gain of up to 101%.

Management noted several factors which have led GrainCorp to achieve a strong outlook for FY22. This includes its supply chain execution, continued delivery of operating initiatives, and high global demand for Australian grain and oilseeds.

The company faced numerous challenges such as flooding and a wet, interrupted harvest, whilst working under COVID-19 restrictions.

While minimal supply chain issues were experienced, over 1.5 million tonnes of additional storage capacity were provided for growers. This resulted in multiple site receival records across the network for the 21/22 harvest.

Combined grain intake across the harvest period has totalled 13.7mmt year-to-date, supplemented with a high opening grain inventory position of 4.3mmt.

GrainCorp expects to see total receivals of 16mmt to 17mmt (FY21: 16.5mmt), and exports of 8.5mmt to 9.5mmt (FY21: 7.9mmt) for FY22.

Management commentary

GrainCorp managing director and CEO Robert Spurway touched on the company’s performance, saying:

GrainCorp delivered an excellent result in FY21, and I am pleased to report that we expect this performance to be further improved in FY22.

In addition to a second consecutive bumper crop and the global demand for Australian grain, our strong start to FY22 demonstrates the efficiency of our supply chain and the resilience of our industry.

…The strong harvest, coupled with supply shortages and adverse weather conditions in the northern hemisphere, is driving excellent global demand for Australian grain and oilseeds and strong supply chain margins for grain exports.

GrainCorp share price summary

Over the past 12 months, the GrainCorp share price has increased 96%. The company’s shares are down 2% year to date but are within reach of their 52-week high of $8.70.

Based on today’s price, GrainCorp presides a market capitalisation of around $1.86 billion, with approximately 228.86 million shares outstanding.

The post ‘Bumper crop’: GrainCorp (ASX:GNC) share price rockets 13% on guidance update appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: ANZ disappoints, Magellan shares crushed
• Why BrainChip, GrainCorp, Redbubble, and Zip shares are dropping 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 ASX is home to what seems like an ever-growing pile of exchange-traded funds (ETFs). From the rise of the humble index fund two decades ago, the ASX ETF sector has blossomed over the past few years. You can now find an ASX ETF that covers just about every sector or theme you can think of. Well, this trend is set to continue with the launch of a new ETF from BetaShares. Today, the ASX welcomes the BetaShares Australian Composite Bond ETF (ASX: OZBD).

This new ETF is hardly the first fund on the ASX that covers fixed-interest investments. It’s not even the first BetaShares fund that does so. But it is BetaShares’ first ETF that tracks both government and corporate bonds, hence the ‘composite’. The provider tells us that OZBD is “designed to be a core portfolio allocation for fixed income”. It will hold both government bonds as well as “high-quality Australian corporate” bonds.

Bonds are also known as ‘fixed-interest investments’ and are a popular alternative to shares. Bonds can provide a steadier stream of income than shares and are often added to an investment portfolio to improve stability and reduce volatility (although that is never guaranteed, of course).

BetaShares launches new bond ETF. What’s the deal?

So what makes the BetaShares Australian Composite Bond ETF different? This ETF reportedly takes a different approach to bond selection. It weighs bonds by using a “risk-adjusted income potential” rather than debt weighting. This, according to the provider, will aim to “provide investors with higher returns than the most commonly used Australian fixed income benchmark, the AusBond Composite Index (AusBond)”.

To kick things off, OZBD has started life with a running yield of 2.78% per annum. Its average bond maturity is 7.52 years and it has an average yield to maturity of 2.46%.

Its largest holdings are sovereign Australian government bonds, followed by corporate bonds of Ausnet Services Ltd (ASX: AST), Inter-American Development Bank, Asian Development Bank, Lloyds Banking Group, and Vodafone.

The index that this fund tracks has returned an average of 3.71% per annum over the past 5 years. It will charge a management fee of 0.19% per annum.

So far this Monday, BetaShares Australian Composite Bond ETF has lost 0.4% in its first morning of trading and is currently being priced at $49.67 per unit.

 

The post BetaShares just launched a new ASX ETF. Here’s what’s under the hood… appeared first on The Motley Fool Australia.

More reading

• ‘Bumper crop’: GrainCorp (ASX:GNC) share price rockets 13% on guidance update
• Why are ASX COVID test shares climbing today?
• ASX 200 (ASX:XJO) midday update: ANZ disappoints, Magellan shares crushed
• 2 ASX 200 shares that could make it rain dividends: experts
• Could IAG (ASX:IAG) shares become suddenly sexy amid rising interest rates?

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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ASX COVID-19 test shares are in the green today amid a federal government announcement. This morning Treasurer Josh Frydenberg outlined the government’s plan to make the tests tax deductible.

ASX-listed companies that manufacture COVID-19 tests include Atomo Diagnostics Ltd (ASX: AT1), Lumos Diagnostics Holdings Ltd (ASX: LDX) and AnteoTech Ltd (ASX: ADO.

Atomo’s share price is currently climbing 1.19% today, while Lumos is in the green 2.49 and Anteotech is jumping 6.98%.

Let’s take a look at the news that could be giving these shares a bump today.

Tax deductible COVID-19 tests

COVID-19 tests for people who need them for work will be tax deductible from this year, the Financial Review reported.

Sonic Healthcare Limited (ASX: SHL) and Healius Ltd (ASX: HLS) process COVID-19 tests in Australia. Sonic has conducted millions of PCR tests, while Healius is processing 40,000 COVID-19 tests every day.

Treasurer Frydenberg will discuss the tax deduction policy in a speech to the Australian Industry Group today. In a copy of the speech, reported by the SBS, he states:

Today, I’m announcing that we will ensure that COVID-19 testing expenses are tax deductible for testing taken to attend a place of work, giving businesses and individuals more clarity and assurance.

We will also ensure that fringe benefits tax will not be incurred by employers where COVID-19 tests are provided to employees for this purpose.

The Lumos share price surged 5% last week on news the Victorian Government intends to support local manufacturing of its RAT tests.

Atomo secured up to 20 million COVID-19 rapid antigen tests for Australia and New Zealand in 2022, my Foolish colleague Aaron reported in January.

Anteotech is still awaiting Therapeutic Goods Administration (TGA) approval for use of its COVID-19 rapid antigen test in Australia.

Ellume is another Australian company working on TGA approval to sell its RATs in Australia. However, it is not listed on the ASX.

Share price recap

Some COVID-19 test shares have benefitted from the pandemic, making major gains in the past 52 weeks.

In the past year, Anteotech has rocketed 27%, while Sonic has surged 9% and Healius has gained 8%.

However, that’s not true across the board. The Atomo share price has slumped 27% while the Lumos share price is down 17%.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has returned more than 3.4% in the past year.

The post Why are ASX COVID test shares climbing today? appeared first on The Motley Fool Australia.

More reading

• 2 ASX shares every dividend investor needs to know about
• The Lumos Diagnostics (ASX:LDX) share price is soaring another 8% today. Here’s why
• Why the Lumos Diagnostics (ASX:LDX) share price is up 15% today
• 2 great value ASX dividend shares that brokers love
• AnteoTech (ASX:AD) share price surges 15% as COVID-19 RAT race continues

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 Sonic Healthcare 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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At lunch on Monday, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decline. The benchmark index is currently down 0.45% to 7,087.4 points.

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

ANZ share price falls on Q1 update

The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has tumbled lower today following the release of its first quarter update. While the bank didn’t provide the market with financials, it did advise that a poor performance for its Markets business in October is expected to impact its first half results. ANZ also revealed that its net interest margin (NIM) fell 8 basis points during the quarter.

Magellan shares sink

The Magellan Financial Group Ltd (ASX: MFG) share price is crashing lower on Monday following the release of another disappointing funds under management update and news that its Chairman and Chief Investment Officer, Hamish Douglass, is taking a leave of absence. This follows “a period of intense pressure and focus on both his professional and personal life.”

James Hardie Q3 update

The James Hardie Industries plc (ASX: JHX) share price is rising today following the release of its third quarter update. The building products company reported a 22% increase in global net sales to US$900 million and a 25% lift in adjusted net income to US$154.1 million. Management advised that this reflects strong price/mix growth in all three regions.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Monday has been the Graincorp Ltd (ASX: GNC) share price with a 13% gain. This morning the grain exporter revealed that it expects FY 2022’s underlying net profit after tax to come in at $235 million to $280 million. This is up from $139 million in FY 2021. The worst performer has been the Magellan share price with an 11% decline following its two aforementioned announcements.

The post ASX 200 (ASX:XJO) midday update: ANZ disappoints, Magellan shares crushed appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 shares that could make it rain dividends: experts
• Could IAG (ASX:IAG) shares become suddenly sexy amid rising interest rates?
• ‘Plenty of bargains’ following ASX tech shares sell-off: expert
• James Hardie (ASX:JHX) share price up as company cements trading gains
• Top broker picks 6 ASX 200 shares with earnings surprise potential

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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There are a handful of S&P/ASX 200 Index (ASX: XJO) shares that are predicted to pay big dividends over the next couple of years.

Not every business that pays a dividend offers a large yield. It’s influenced by a few different factors including the dividend payout ratio and the valuation of a business.

Companies with relatively low price/earnings ratios (p/e ratios) have the potential to pay particularly high dividend yields.

However, an ASX 200 dividend share isn’t necessarily a buy just because of the yield. The investment case also has to make sense. The experts currently like these two businesses which are expected to make it rain dividends in the next few years:

BHP Group Ltd (ASX: BHP)

BHP is one of the largest resource businesses in the world.

It has a diversified portfolio of different commodities. After the planned divestment of its petroleum business to Woodside Petroleum Limited (ASX: WPL), the commodities that BHP will have exposure to will be iron ore, copper, nickel, potash and coal. However, the resources giant has said it’s focused on future-facing commodities, so time will tell what happens with the coal division.

Iron ore is typically the biggest profit generator for the business. The iron ore price went through a large drop near the end of 2021, but it has since come storming back. CommSec pointed out today that the iron ore price rose another 0.4% to US$146.60 per tonne on Friday, due to “shrinking supply from Brazil and hopes for a boost in infrastructure spending in China.”

BHP is currently rated as a buy by the broker Morgans, with a price target of $48.60. The broker reckons that the ASX 200 dividend share is going to pay a grossed-up yield of 10.2% in FY22 and 8% in FY23.

The company continues to work on extending its list of projects. The potash Jansen project in Canada is expected to have a multi-decade lifespan and be able to earn high margins.

Bank of Queensland Limited (ASX: BOQ)

BOQ is one of the largest challengers to the other big four ASX banks of Commonwealth Bank of Australia (ASX: CBA), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC) and Australia and New Zealand Banking Group Ltd (ASX: ANZ).

There are now three main brands within the BOQ business: BOQ, ME Bank and Virgin Money Australia.

It’s currently rated as a buy by the broker Morgan Stanley with a price target of $10. The broker thinks the bank is going pay a grossed-up dividend yield of 8.25% in FY22 and 9% in FY23.

In the first quarter of FY22, the ASX 200 dividend share reported strong application volumes across both the housing and business lending portfolios. Management said that growth was disciplined and high-quality with low levels of lending with a loan-to-value ratio of more than 90%.

BOQ said its net interest margin (NIM) was going to be slightly lower than previously guided because of tougher trading conditions, including yield curve volatility, intense price competition, increased fixed rate lending and higher liquid asset balances.

But, FY22 expenses are expected to be around 1% lower than FY21. The ME Bank integration program is on track, with approximately $23 million of full year synergies delivered in the first quarter of FY22 thanks to things like operating model changes and early supply chain benefits.

The post 2 ASX 200 shares that could make it rain dividends: experts appeared first on The Motley Fool Australia.

More reading

• Could IAG (ASX:IAG) shares become suddenly sexy amid rising interest rates?
• These are the 10 most shorted ASX shares
• ‘Plenty of bargains’ following ASX tech shares sell-off: expert
• The Bank of Queensland (ASX:BOQ) share price has underperformed the ASX 200 by 10% over the last 6 months. Here’s why
• Top broker picks 6 ASX 200 shares with earnings surprise potential

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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Insurance Australia Group Ltd (ASX: IAG) hasn’t exactly shot the lights out over the past 12 months.

IAG shares are down 11% since this time last year. By comparison the S&P/ASX 200 Index (ASX: XJO) is up 2% over the 12 months.

But things could be looking up for the insurance giant.

Why IAG shares are looking compelling

Deputy portfolio manager at Yarra Capital Management Edward Waller admits insurance isn’t perceived as a sexy industry.

Writing in Live Wire, he labels insurance as “complex, technical and mundane”.

That aside, he adds, “For the first time in close to a decade we believe insurance is now compelling.”

What’s changing for the insurance sector?

Rising inflation and the near certainty of rising interest rates ahead could buoy the insurance sector and IAG shares in the year ahead.

According to Waller, “The sector is one amongst a handful that benefits from higher interest rates, with a 1% increase in rates equating to 10-20% earnings upside.”

And insurance companies can match or top any broader increases in prices. Waller points out that home and car insurance premiums are rising by 5% or more per year with commercial insurance up 10% plus per annum.

Then there’s the recent spate of natural hazards that have seen the insurance companies have to shell out big payments.

According to Waller, “After a surge in natural hazards, it ‘probably can’t get much worse’; the July to October 2021 period saw natural hazard costs at 8-times normal levels.”

This, he said, has 2022 financial year earnings estimates for IAG coming in 20­-30% below FY2019 earnings. But, “[u]nlike other sectors,” Waller said, “we expect there will be no post-COVID earnings slump”.

Why else are IAG shares appealing?

Atop currently low expectations and sentiment towards the insurance sector, Waller said the insurance companies’ balance sheets look strong. “The sector raised billions in business interruption reserves, much of which of which we expect is surplus to requirements and will be returned to investors,” he said.

IAG shares are also “attractively valued and trade in line with long run historic multiples”. He said that’s an “exception in the current market where 75% of Industrials are trading above long run average multiples”.

Waller added (as quoted by Live Wire):

IAG, meanwhile, has been de-rated after experiencing 8-times normal losses in the first 4 months of FY22 – which we view as a genuine one off – and its $1.15bn in largely unnecessary business interruption provisions speaks to capital flexibility.

The post Could IAG (ASX:IAG) shares become suddenly sexy amid rising interest rates? appeared first on The Motley Fool Australia.

More reading

• ‘Plenty of bargains’ following ASX tech shares sell-off: expert
• Top broker picks 6 ASX 200 shares with earnings surprise potential
• 2 ASX shares to guide you through a torrid 2022
• This strategy for investing in ASX shares has an 82% success rate
• 5 things to watch on the ASX 200 on Monday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Insurance Australia 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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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• BHP Group Ltd (ASX: BHP) has become the most shorted ASX share after its short interest jumped to 17.1%. However, it is worth noting that there is a 7-day lag with the data. As traders were shorting BHP’s shares in order to profit from the unwinding of its dual listing, this short interest is likely to reduce sharply now the unification is complete.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest ease slightly to 15.1%. Short sellers don’t appear to believe the travel market recovery will be as smooth sailing as the market is pricing in.
• Kogan.com Ltd (ASX: KGN) has seen its short interest remain flat at 11.1%. This ecommerce company’s shares have come under significant pressure due to inventory issues, slowing sales, and higher costs.
• Zip Co Ltd (ASX: Z1P) has seen its short interest fall week on week to 10%. This buy now pay later provider’s shares have fallen heavily over the last 12 months amid increasing competition and costs.
• Mesoblast limited (ASX: MSB) has short interest of 9.6%, which is flat week on week. A series of poor trial results, significant cash burn, and the loss of a major deal with Novartis continue to weigh on sentiment.
• Webjet Limited (ASX: WEB) has short interest of 9.1%, which is down week on week. This online travel agent’s shares are being targeted due to concerns over ongoing COVID disruptions.
• Polynovo Ltd (ASX: PNV) has seen its short interest fall to 8.4%. This medical device company’s inconsistent performance and the high multiples its shares trade on have been attracting short sellers.
• Regis Resources Limited (ASX: RRL) has entered the top ten with short interest of 7.8%. Operational issues at Duketon and delayed progress at McPhillamys have been weighing on sentiment.
• Betmakers Technology Group Ltd (ASX: BET) is back in the top ten with 7.3% of its shares held short. This betting technology company’s shares trade on particularly high multiples at a time when rates are rising, which could explain its elevated short interest.
• Redbubble Ltd (ASX: RBL) has short interest of 7.3%, which is down week on week again. Short sellers may believe this ecommerce company’s shares are close to bottoming after a falling 73% over the last 12 months.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• BNPL ASX shares in for a ‘tough time’: expert
• Some BNPL shares finished a horror week on a high. Why?
• Is now the time to buy shares of ASX 200 iron ore giants? Expert weighs in
• Here’s why the Webjet (ASX:WEB) share price is up 10% in a 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. owns and has recommended Betmakers Technology Group Ltd, Kogan.com ltd, POLYNOVO FPO, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, and Webjet 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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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.

Many people went into 2022 thinking the stock market was headed for a full-fledged crash. And so far, that hasn’t happened.

But it has been a volatile number of weeks for stocks, with the market dipping into correction territory. And at this point, it’s hard to predict when things will settle down.

While some of the recent volatility we’ve seen can be attributed to earnings-related disappointment and unemployment news (in a somewhat surprising turn of events, stocks tumbled in the wake of positive job growth), the reality is that stocks have been due for a correction for quite some time. And also, corrections are actually pretty common, and many seasoned investors know not to get rattled by them.

If you’re a newer investor, though, or a naturally skittish one, then the events of the past few weeks may have you shaken to your core. And you may be worried about future volatility as well. But while it’s difficult to predict when stock values will decline, it’s easy to take one key step to protect yourself in the face of market corrections.

Set yourself up to ride out those waves

The one thing it’s important to tell yourself during a stock market correction is that you won’t lose money unless you actually sell off assets at a price that’s lower than what you paid for them. To, to put it a different way, if you just leave your stocks alone during volatile periods, you may not lose so much as a dime.

But to put yourself in a position where you’re able to that, you’ll need to make sure you have plenty of cash at the ready. That way, if unplanned expenses come your way, or if you lose your job, you won’t have to rush to cash out investments to come up with the money you need.

That’s why, as a general rule, it’s a good idea to sock away three to six months’ worth of bills in a savings account. While you won’t earn interest much on that money (especially not these days), you’ll secure your principal so it’s there when you need it. And while you could technically keep that cash in your brokerage account uninvested, you’re better off stashing it in savings so you’re not tempted to buy stocks with it when market conditions turn favorable.

And to be clear, a stock market correction is actually a great time to add investments to your portfolio — but you shouldn’t use your emergency cash to do so. Rather, you should always maintain that cushion because it can not only help you avoid debt, but also avoid capital losses.

Will stocks settle down soon?

It’s hard to say. We’re still in the midst of a pandemic, and that alone could lead to prolonged volatility. And so the best way to alleviate your personal stress load in the near term is to keep your emergency fund well-stocked. That way, if the market continues to swing wildly, you’ll be able to sleep at night knowing you’re covered and won’t have to tap your portfolio at the worst possible time. 

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

The post The most important thing you need to get through a stock market correction appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• ‘Plenty of bargains’ following ASX tech shares sell-off: expert
• James Hardie (ASX:JHX) share price up as company cements trading gains
• Rocketing returns trump souring outlook: Argo Investments (ASX:ARG) share price lifts on results
• Why Bitcoin, Ethereum, Polkadot, and Solana jumped this weekend

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.

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

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Key points

• The new year has seen a major sell-off for ASX tech shares
• But one expert thinks the ASX has withstood the worst of the sell-off
• She says the tech sector’s struggles might have placed some quality stocks in the bargain bin

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2022 heralded a major sell-off in ASX tech shares with some S&P/ASX 200 Index (ASX: XJO) technology giants seeing more than 30% slashed from their share price in just over a month.

However, some experts are optimistic about the sector, noting its plummet has placed some quality ASX tech shares in the bargain bin.

Let’s take a look at which embattled stocks these industry professionals are most excited about.

Which ASX tech shares have experts feeling optimistic?

The S&P/ASX 200 Info Tech Index (ASX: XIJ) has slumped 21% year to date. Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) has plunged 17%.

The biggest fallers include ASX 200 giant Megaport Ltd (ASX: MP1). Its share price has tumbled 31% since the start of 2022.

The tech sector’s plunge was likely driven by rising inflation and anticipation of interest rate increases. It was also helped along by a similar performance overseas – the tech-heavy Nasdaq Index has slumped 10.9% year to date.

However, the drop has also created “plenty of bargains” among ASX tech shares, according to Tribeca Investment Partners portfolio manager Jun Bei Liu.

She told The Australian that Xero Limited (ASX: XRO) was her pick of the bunch, with its 22% year to date tumble making it a “pretty good buying opportunity”.

Additionally, Liu reportedly said WiseTech Global Ltd (ASX: WTC) is also on her radar after the sell-off.

However, Forager Funds chief investment officer Steve Johnson told the publication he believes WiseTech is still overvalued. Yet, he reportedly agrees with the assessment of Megaport’s stock, despite its notable drop.

In the small-cap space, Johnson is optimistic about Bigtincan Holdings Ltd (ASX: BTH). Shares in the sales enablement platform have slipped 16% so far in 2022.

Whether ASX tech shares will continue to fall is, as always, anyone’s guess.

But Liu reportedly believes the worst is now over.

The post ‘Plenty of bargains’ following ASX tech shares sell-off: expert appeared first on The Motley Fool Australia.

More reading

• Top broker picks 6 ASX 200 shares with earnings surprise potential
• 2 ASX shares to guide you through a torrid 2022
• This strategy for investing in ASX shares has an 82% success rate
• 5 things to watch on the ASX 200 on Monday
• 2 ASX 200 shares that could be top buys for growth

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended BIGTINCAN FPO, MEGAPORT FPO, WiseTech Global, and Xero. The Motley Fool Australia owns and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended BIGTINCAN FPO and MEGAPORT FPO. 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 James Hardie Industries plc (ASX: JHX) share price is in positive territory on Monday morning. This comes after the company released its third-quarter results for FY22 before the market open.

The building products company’s shares were 6.15% higher at $50.57 in early trading but have since retreated to $49.03, up 3% at the time of writing

Let’s take a closer look to see how James Hardie performed for the three months ending 31 December 2021.

Growth across key metrics

The James Hardie share price is moving forward following the company’s robust results for the third quarter. Here are some of the key highlights:

• Global net sales of US$900 million, up 22% on the prior corresponding period (Q3 FY21 US$738.6 million)
• Adjusted earnings before interest and tax (EBIT) of US$204.1 million, up 22% (Q3 FY21 US$167.9 million)
• Adjusted net income of US$154.1 million, up 25% (Q3 FY21 US$123.3 million)

What happened in Q3 FY22 for James Hardie?

Investors are buying up the James Hardie share price as the company announced it continued to “deliver growth above market and strong returns”.

James Hardie achieved double-digit growth across the value product mix in all three regions.

In today’s report, the company advised that its North American Fiber Cement business partnered closely with customers to focus on creating demand by marketing directly to the homeowner. Also, the additional capacity provided by the company’s on-time ramp up of its Prattville facility helped generate success. Net sales surged by 25%.

In the Europe Building Products segment, the team’s execution on high value product mix strategy resulted in a strong price/mix. Although, momentum in margin expansion during the quarter was significantly impacted by hyperinflation on key energy prices. Net sales rose 14% driven by a lift in fibre cement and fibre gypsum net sales of 22% and 13%, respectively.

And lastly, the Asia Pacific Fiber Cement division experienced strong sales numbers through its high-value products strategy, up 20%.

What did management say?

James Hardie interim CEO Harold Wiens welcomed the result, saying:

I am pleased to report the James Hardie team has continued to execute well on our stated global strategy. This is reflected in strong price/mix growth in all three regions, including North America price/mix growth of +12%, Europe price/mix growth of +13% and Asia Pacific price/mix growth of +11%.

The team’s success in delivering high value products, which underpins price/mix, is the result of (1) enabling our customers to make more money by selling more James Hardie products and, (2) marketing directly to the homeowners to create demand of our high value products through our customers.

What’s the outlook for James Hardie for the remainder of FY22?

Looking ahead, James Hardie advised it has upgraded its FY22 guidance based on the robust performance across the regions.

As such, management lifted the FY22 adjusted net income guidance range to US$620 million and US$630 million. The previous guidance range stood from US$605 million and US$625 million.

Furthermore, management also announced a FY23 adjusted net income guidance range of US$740 million and US$820 million. However, this is based on the assumption there are no unforeseen impacts on the business from COVID-19.

James Hardie share price snapshot

The James Hardie share price has gained 28.71% over the past 12 months. However, year to date, the company shares have fallen 8.55%.

Based on today’s price, James Hardie has a market capitalisation of around $21.52 billion.

The post James Hardie (ASX:JHX) share price up as company cements trading gains appeared first on The Motley Fool Australia.

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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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