Category: Stock Market

The TPG Telecom Ltd (ASX: TPG) share price has just been rated as a buy by one of the leading brokers that looks at ASX shares.

Brokers and analysts are always keeping a lookout for investments that could be attractive long-term opportunities.

Since the end of November 2021, the TPG share price has actually fallen by almost 10%.

The drop of the telecommunications business is being seen as an opportunity by some brokers.

A new buy rating on the TPG share price

It’s the broker Ord Minnett that now thinks that TPG is a buy. It is no longer ‘neutral’ on the business.

Remember that TPG is a much larger telco these days after the merger with Vodafone Australia.

Ord Minnett thinks that TPG shares are good value and it will do well as COVID impacts subsides.

There are a couple of different things that the broker noted.

Growth and monetisation

A retail telecommunications business can affect its operating profit in two different ways – the average profit margin generated from customers and how many customers it has.

Returning to mobile subscriber growth continues to be a key focus with new price plans and promotional activity across the company’s three major mobile brands – Vodafone, TPG and iiNet.

The ASX share is confident that its mobile business, which has been impacted by factors including COVID restrictions, will return to growth when Australian borders reopen and its 5G network reaches scale in the major cities.

Postpaid mobile subscriber declines started to flatten in the first half of TPG’s FY21, with the customer base ending the period at 3.19 million, a 1.8% decrease in the half-year.

The prepaid mobile subscriber base ended at 1.91 million, a 3.4% drop in the half-year.

In HY21, the total fixed broadband subscriber base increased to 2.2 million.

TPG is also seeing rapid early growth in its NBN alternatives with its 4G home wireless customer base more than tripling in the first six months of the year, and it’s building on the launch of its 5G home wireless option in June.

In terms of potentially selling assets, which Ord Minnett thinks could be a useful idea, TPG is going through a strategic review of its telecommunications tower assets.

The telecommunications ASX share operates a mobile network of 5,800 rooftops and towers, and owns the passive infrastructure on around 1,200 of those sites. The majority of those 1,200 sites are in metro areas and have a high average tenancy ratio.

TPG notes that demand for telecommunications infrastructure assets is strong, and TPG has commenced this review to obtain a preliminary market assessment.

While the company is continually seeking opportunities to maximise shareholder value, it has not made any commitment about these assets yet.

TPG share price valuation

According to Ord Minnett’s calculations, the TPG share price is valued at 32x FY22’s estimated earnings.

The post This top broker just rated the TPG (ASX:TPG) share price as a buy 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 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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was a positive performer and charged higher. The benchmark index rose 0.65% to 7,438.9 points.

Will the market be able to build on this on Thursday? Here are five things to watch:

ASX 200 expected to edge higher

The Australian share market looks set to edge higher on Thursday. According to the latest SPI futures, the ASX 200 is expected to open the day 5 points or 0.1% higher this morning. This follows a positive night on Wall Street, which in late trade sees the Dow Jones up 0.1%, the S&P 500 up 0.25%, and the Nasdaq up 0.35%.

Oil prices rise

Energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could have a solid day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 2% to US$82.82 a barrel and the Brent crude oil price is up 1.4% to US$84.90 a barrel. Traders bid oil prices to two-month highs after concerns over the Omicron threat eased.

Crown given neutral rating

The Crown Resorts Ltd (ASX: CWN) share price could be fully valued according to analysts at Goldman Sachs. This morning the broker put a neutral rating and $11.03 price target on the casino and resorts operator’s shares. Goldman thinks investors should buy the shares of rival Star Entertainment Group Ltd (ASX: SGR) instead.

Gold price edges higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a good day after the gold price pushed higher. According to CNBC, the spot gold price is up 0.45% to US$1,826.8 an ounce. The gold price rose after the US dollar softened following the release of US inflation data.

Iron ore price rises

It could be a good day for mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) after the iron ore price continued its rise. According to Metal Bulletin, the benchmark iron ore price is up 2.3% to US$131.60 a tonne. On Wall Street, both of their US listed shares are up over 2% in late trade.

The post 5 things to watch on the ASX 200 on Thursday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares this Wednesday
• The best and worst ASX sectors of 2021. Why this year could be different
• Here are the 5 best performing ASX ETFs of 2021
• ASX 200 (ASX:XJO) midday update: Afterpay-Block deal approved, Fortescue downgraded

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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If you’re a fan of small caps, then you’re in luck. Because there are a number of exciting ones on the Australian share market that have been tipped as buys.

Here are two small cap ASX shares that analysts rate highly:

Airtasker Ltd (ASX: ART)

The first small cap ASX share to consider is this growing online marketplace for local services.

Analysts at Morgans are very positive on Airtasker. This is due to their belief that the company has a very attractive business model and a significant market opportunity.

Morgans highlights that the company’s product works for both sides of the marketplace, has attractive unit dynamics with healthy gross and contribution margins, an enormous total addressable market (TAM) in the early stages of ecommerce adoption, and a large international expansion opportunity. The latter provides the company with a long growth runway in the future.

The broker has an add rating and $1.27 price target on the company’s shares.

Nitro Software Ltd (ASX: NTO)

Another small cap that is rated highly is Nitro. It is a fast-growing global document productivity software company aiming to accelerate digital transformation in a world that demands the ability to work from anywhere, anytime, on any device.

It is doing this with its Nitro Productivity Platform, which offers comprehensive business solutions including powerful PDF productivity, eSigning, and industry-leading analytics. At the last count, Nitro had over 2.8 million licensed users and 12,000+ business customers in 155 countries. This includes over 68% of the Fortune 500 and three of the Fortune 10.

This has underpinned strong annualised recurring revenue (ARR) growth in recent years and has continued in FY 2021. For example, during the third quarter, Nitro reported a 50% increase in its ARR. This puts it on course to achieve its ARR guidance of US$39 million to US$42 million in FY 2021. This is still only a fraction of its estimated total addressable market of $28 billion.

Bell Potter is very positive on Nitro. It currently has a buy rating and $4.50 price target on its shares.

The post 2 exciting small cap shares named as buys appeared first on The Motley Fool Australia.

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• 3 exciting small cap ASX shares rated as buys
• 2 compelling ASX shares that could be buys in 2022
• Analysts say these small cap ASX shares could be going places in 2022

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 recommended Airtasker Limited. The Motley Fool Australia has recommended Nitro Software 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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ASX 200 tech shares are in the green today, following in the footsteps of their counterparts in the United States.

The S&P/ASX All Technology Index (ASX: XTX) gained 1.66% today to 2,840.70 points at market close. This was 1% more than the benchmark S&P/ASX 200 Index (ASX: XJO), which jumped 0.66%.

Let’s take a look at why ASX technology shares performed well today.

What is happening to ASX tech shares?

The All Technology Index recovered after a tough start to the year. The index fell 6.39% between market close on 31 December and market close on 11 January before clawing back some of the losses today.

One clue to the trend may be the performance of US markets. The NASDAQ-100 Technology Sector Index (NASDAQ: NDXT) gained 1.73% today to 9,146.78 points.

Apple Inc (NASDAQ: AAPL) gained 1.68%, while Amazon (NASDAQ: AMZN) jumped 2.4%. US tech shares rebounded after a sell-off in the new year due to rising interest rate fears, CNBC reported.

The Australian technology sector often follows the Nasdaq index. Afterpay Ltd (ASX: APT) was one of the top ASX 200 tech shares on Wednesday, gaining 4.75%.

The company’s shares surged after the Bank of Spain approved Block’s takeover of the company.

Other ASX 200 and All Technology Index shares in the green today included Appen Ltd (ASX: APX), up 5.52%, and Megaport (ASX: MP1), which hiked 3.43%.

Altium Limited (ASX:ALU) also climbed 1.69%, Novonix (ASX:NVX) jumped 0.95%, and TechnologyOne (ASX: TNE) gained 1.05%. None of these companies released any news to the market today.

Foolish takeaway

The All Technology Index climbed 3.60% the past year, underperforming the broader ASX 200 index by roughly 8 percentage points.

In the past month, the All Technology index is down 6.45% and 6.78% lower in the last week.

Since market close on 31 December, it has fallen 4.83%.

The post Here’s why ASX 200 tech shares (ASX:XTX) outperformed today appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares this Wednesday
• The best and worst ASX sectors of 2021. Why this year could be different
• Here are the 5 best performing ASX ETFs of 2021
• Why Afterpay, Appen, Liontown, and Nickel Mines shares are surging higher

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited, Altium, and Appen Ltd. The Motley Fool Australia owns and has recommended Afterpay Limited and Appen Ltd. The Motley Fool Australia has recommended Amazon and Apple. 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 growth shares falling out of favour with investors this month, readers may be wondering what options there are out there for value investors.

With that in mind, listed below are two top ASX shares which could be candidates for the value-focused investor. They are as follows:

Adairs Ltd (ASX: ADH)

The first ASX share to look at is this leading homewares and furniture retailer. It has a presence online and offline with its core Adairs brand and its online-only Mocka brand. It has also signed an agreement to acquire Focus on Furniture for $80 million, giving it exposure to the $8.3 billion bulky furniture category.

The team at Morgans is very positive on Adairs and currently has an add rating and $4.80 price target on its shares. Its analysts are forecasting an earnings per share (EPS) compound annual growth rate of 21% between FY 2020 and FY 2024.

Despite this, the Adairs share price is trading at just 10.5x FY 2022 earnings based on Morgans’ forecast of 36 cents EPS. Furthermore, the broker estimates that its shares offer a very generous fully franked 6% dividend yield.

Inghams Group Ltd (ASX: ING)

Another ASX share for value investors to consider is this leading poultry producer. With the Inghams share price down 21% from its 52-week high, the team at Goldman Sachs believe it has created a buying opportunity. This is even after factoring in its disappointing performance in FY 2022 due to COVID headwinds.

This morning the broker retained its buy rating with a trimmed price target of $3.90. Goldman estimates that Ingham’s shares are trading at 13.5x FY 2022 earnings and offering investors a fully franked ~5% yield.

It feels this makes it great value, particularly given its strong balance sheet, relatively defensive revenue stream, and the duoploy industry structure.

The post 2 cheap ASX shares for value investors appeared first on The Motley Fool Australia.

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• Brokers name 2 ASX dividend shares to buy today
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• ASX 200 (ASX:XJO) midday update: PolyNovo rockets, Inghams sinks
• Inghams (ASX:ING) share price sinks as Omicron bites

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 ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS 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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ASX financials are front and centre again this week, as rising yields on US Treasuries and a rotation out of risk assets play havoc on international equity markets.

Investors are flocking to defensive classes – such as financials –  in the wake of shifting interest rates talk emerging from central banks in Australia, the US, and Europe.

For instance, the iShares U.S. Financials ETF (NASDAQ: IYF) saw inflows of $126.3 million in the final week of December. That’s a 5% gain on the same time in 2020.

Meanwhile, the Financial Select Sector SPDR Fund (NYSEARCA: XLF) saw the highest volume of inflows last week, reaching $2.34 billion.

In comparison, the SPDR S&P 500 ETF Trust (ASX: SPY) – which is currently 27% weighted towards the rates sensitive tech sector – saw net outflows of $6,523.72 million in the first week of 2022 alone.

Why then, is the Bank of Queensland Ltd (ASX: BOQ) share price struggling of late? It is currently in a 40% drawdown, meaning that’s how far it’s trading off its previous record high.

Let’s take a look at the situation.

What’s up with the BOQ share price?

Over a much wider time frame, say the last 5 years, the downward pressure on the BOQ share price has been more than evident.

The company’s shares have trended downwards from a high of $12.47 back in 2018 and have shown little sign of recovery since.

The COVID-19 selloff in March 2020 was unkind to BOQ shares. Only in October 2021 did the company return to its pre-pandemic levels.

However, whilst it’s prudent to consider a stock’s history, today’s forward estimates on the BOQ share price are equally as important. As legendary fund manager Peter Lynch correctly states, the market prices shares on a combination of past earnings history and future earnings expectations.

Fast forward to the present and the commentary on BOQ is centred around its ability to absorb sector-wide pressures to net interest margins (NIMs) in FY22.

Goldman Sachs considers BOQ’s deposit book is more rate-sensitive while Jefferies is upbeat on the bank’s cost-budgeting measures targeted for 2022. Both are positive inflection points, according to the brokers.

The bank is set to embark on a number of new year’s resolutions as well, following a flurry of complaints at its AGM last year about the old technology underpinning its operations.

As such, the bank has committed to its new “digital transformation strategy”, launched last year.

So, is it a buy in 2022?

When examining the list of brokers provided by Bloomberg Intelligence, the majority of coverage on BOQ is bullish for the remainder of 2022.

Citing the bank’s net interest margin, Jefferies bakes in a 9 basis point contraction in NIM from the previous year in its forward estimates on BOQ.

It values the bank at a bullish $8.50 per share, alongside the team at Citi who rate it a buy on a $10 per share price target.

Goldman Sachs has BOQ as a buy as does Macquarie, each valuing the company at $9.67 and $10 per share respectively.

Meanwhile, JP Morgan favours BOQ the most out of its ASX financial shares. It values the company at $9.80 a share. It also forecasts cash earnings of $507 million for the bank in FY22.

When comparing the BOQ share price with Commonwealth Bank of Australia Ltd (ASX: CBA), Australia’s largest bank by market cap, most brokers unquestionably prefer BOQ shares right now.

With this in mind, it’s not surprising to see more than 70% of analysts covering BOQ advocate the share as a buy, as opposed to just 1 broker urging clients to sell.

As such, going by these predictions, BOQ could be a buy in 2022. However, with equity markets, and risk assets in general, poised for a year of lumpy performance, only time, market mechanics, company fundamentals, and Captain Hindsight will tell.

The post 40% drawdown: The Bank of Queensland (ASX:BOQ) share price is struggling. Is it a buy? appeared first on The Motley Fool Australia.

More reading

• Is the Bank of Queensland (ASX:BOQ) share price a better buy than CBA? Here’s what top brokers say
• Bank of Queensland (ASX:BOQ) hoses down Humm (ASX:HUM) takeover rumours
• Is it a buy? Top brokers’ opinion on the Bank of Queensland (ASX:BOQ) share price
• Why is December being so kind to Bank of Queensland (ASX:BOQ) shares?
• Own Bank of Queensland (ASX:BOQ) shares? Here are the key dates to watch in 2022

The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’ve marked the turning of the calendar year with a resolution to start investing, congratulations! Investing in ASX shares and the share market is one of the most tried and tested ways of building wealth and income. Investing has helped millions of people around the world get ahead and participate in the wealth-generating effects of the capitalist system. But for many would-be new investors, it can quickly get overwhelming. There’s jargon and financial knowledge to get around, not to mention the timeless question of what to actually put your hard-earned dollars into. That’s why many new investors turn to exchange-traded funds (ETFs).

ETFs are one of the most popular methods of investing in the share market, especially so for new investors. Let’s look at some of the reasons why:

What are the benefits of investing in ETFs?

Simplicity

This one mainly applies to index funds like the Vanguard Australian Shares Index ETF (ASX: VAS). An index ETF is a fund that simply mirrors a popular index. The most prevalent of these on the ASX boards would be the S&P/ASX 200 Index (ASX: XJO). The ASX 200 simply holds the largest 200 shares on the Australian share market, weighted according to market capitalisation (size). An ASX 200 ETF will hold everything from Commonwealth Bank of Australia (ASX CBA) and Coles Group Ltd (ASX: COL) to JB Hi-Fi Limited (ASX: JBH)) and Adairs Ltd (ASX: ADH).

If a company’s success grows over time, so will its presence in the ETF. Conversely, if a company loses its way and shrinks in size, it will lose its place in the ETF. As such, the ETF holder (you) doesn’t need to lift a finger to manage this investment. This is why many beginner investors find ETFs attractive

Cost

Traditionally, paying someone else to manage and invest your money ain’t cheap. Managed funds can charge annual fees as high as 2%, which can markedly drag down your returns over time. But another key advantage an ETF can offer is low fees. For example, the Vanguard ETF listed above only charges an annual fee of 0.1%, or $10 for every $10,000 invested every year. That can make a big difference for an investor paying $200 a year to a managed fund, given how long-term compound interest works.

Diversification

If you’ve only just begun your investing journey, you may have come across this oft-bandied term (if not, you soon will). Diversification, or ‘not putting all your eggs in one basket’, is something most investors (including we Fools) preach. Life is unpredictable and you never know what kinds of unforeseen problems can hit a well-run business. For example, an investor who only held travel-related companies in January 2020 would have discovered the pitfalls of not being diversified a month or two later.

This is another area where an ETF can shine. Remember the ASX 200? An ETF tracking this index has your money spread across 200 different companies, all operating in different ways and across all facets of the economy. You have the banks like CBA, grocers like Coles, travel shares like Qantas Airways Limited (ASX: QAN), retailers like Adairs, internet providers like Telstra Corporation Ltd (ASX: TLS)… you get the idea. An index ETF has diversification built in, adding to the ‘bottom drawer’ appeal that we discussed above.

A final caveat

Of course, no investment in shares is risk-free, and an ETF is no different. Just because an ETF is low-cost and diversified doesn’t mean that it can’t be whacked in a market crash. That’s why you should always have a long-term time horizon with any share market investment.

Also, not all ETFs are equal. These days, you can get an ETF that covers just about anything. Some ETFs solely invest in gold bullion, oil futures or biotech shares. These are not diversified in the same way an index ETF is, and are often more expensive too. So make sure the ETF you pick does what you want it to. Otherwise, you may be in for a rude shock.

Foolish takeaway

ETFs can be a powerful tool in any investors portfolio, as well as a great choice for a beginenr investor. So if you’ve made the admirable New Year’s resolution to begin your investing journey, ASX ETFs can be a great place to start. Due dilligence, a consistent investing strategy (such as dollar cost-averaging), and a steady hand will come in handy, but if you are keen to get a slice of our economies’ prosperity, an ETF can be a fantastic choice.

 

The post Made a New Year’s resolution to start investing? Here are some of the benefits of ASX ETFs appeared first on The Motley Fool Australia.

More reading

• 40% drawdown: The Bank of Queensland (ASX:BOQ) share price is struggling. Is it a buy?
• When did Webjet (ASX:WEB) last pay a dividend and when might the next one be?
• Here are the top 10 ASX shares today
• The Australian Ethical Investment (ASX:AEF) share price has plunged 8% today. What’s happening?
• Why did the Computershare (ASX:CPU) share price set another record high today?

Motley Fool contributor Sebastian Bowen owns ADAIRS FPO and Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO, COLESGROUP DEF SET, and Telstra Corporation 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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One of the most negatively impacted shares on the Australian share market during the pandemic has been Webjet Limited (ASX: WEB).

Prior to the pandemic, the online travel agent was growing at a rapid rate and rewarding its shareholders with seemingly ever-increasing dividend payments.

But all that changed in 2020 when the travel market was turned upside-down by COVID-19.

What’s happened to the Webjet dividend?

After well over a decade of consistently paying dividends, these payments came to an abrupt end during the first half of FY 2020 when the true impacts of the pandemic were felt in the travel sector.

Although Webjet declared a 9 cents per share interim dividend with its half year results, it didn’t actually make the payment as planned. Instead, the Webjet board deferred the payment initially by almost a year until April 2021, then again until July 2022, before eventually deciding to finally pay it last month.

At the time, Webjet’s Chairman, Roger Sharp, explained why the company was deferring its payment.

He said: “At Webjet we believe there will be a significant opportunity when the COVID-19 pandemic subsides […] Never has “cash is king” been a more appropriate epithet for the times we live in. Webjet deliberately recapitalised early to build a war chest so it can operate productively through the downturn. We have deferred payment of the FY20 interim dividend until 16 April 2021 and, given the ongoing market uncertainty, are not declaring a final dividend for FY20.”

When will a dividend be paid again?

Despite Webjet finally paying the long-deferred dividend in December, the market doesn’t appear optimistic that this signals the restart of regular dividend payments just yet.

For example, both Citi and Goldman Sachs are expecting there to be no dividend payments in FY 2022 but have wildly different views thereafter.

Goldman sees scope for a dividend in FY 2023 and has pencilled in a payout of 9 cents per share. Its analysts then expect this to increase to 14 cents per share in FY 2024. Whereas Citi is not forecasting a dividend in FY 2023 but has tipped a modest 3 cents per share dividend in FY 2024.

As for recommendations, Goldman has a buy rating and $6.90 price target and Citi has a high risk neutral rating and $6.46 price target.

The post When did Webjet (ASX:WEB) last pay a dividend and when might the next one be? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Is the Webjet (ASX:WEB) share price an opportunity with a 14% global market share goal?
• Analysts name 2 excellent ASX shares to buy now
• Potential buys: 2 excellent ASX shares
• Why is the Webjet (ASX:WEB) share price underperforming Helloworld in December?

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 recommended 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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Today, the S&P/ASX 200 Index (ASX: XJO) pulled higher in a similar fashion to Wall Street’s showing last night. At the end of the session, the benchmark index finished 0.66% higher at 7,438.9 points.

Pleasingly, most of the sectors across the share market enjoyed a hue of green today. Although, consumer staples and industrials weren’t as lively for investors — each sector losing 0.5% and 0.4% respectively. Meanwhile, the energy and tech sectors glowed brightly today. Market participants were enthusiastic about these segments of the Aussie index after a strong rise in the price of oil overnight and a stronger showing from tech names in the US trading session.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, AVZ Minerals Ltd (ASX: AVZ) was the biggest gainer today. Shares in the minerals exploration company surged 10.80% despite there being no new announcements. Find out more about AVZ Minerals here.

The next biggest gaining ASX share today was Nickel Mines Ltd (ASX: NIC). The nickel producer jumped 6.53% following the price of the electric vehicle battery material rising to a seven-year high overnight. Uncover the latest Nickel Mines details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
AVZ Minerals Ltd (ASX: AVZ)	$0.975	10.80%
Nickel Mines Ltd (ASX: NIC)	$1.55	6.53%
Imugene Ltd (ASX: IMU)	$0.37	5.71%
Beach Energy Ltd (ASX: BPT)	$1.38	5.34%
Liontown Resources Ltd (ASX: LTR)	$1.63	5.16%
TPG Telecom Ltd (ASX: TPG)	$6.14	4.96%
Afterpay Ltd (ASX: APT)	$77.00	4.75%
Allkem Ltd (ASX: AKE)	$11.34	4.23%
Woodside Petroleum Ltd (ASX: WPL)	$24.35	4.10%
Santos Ltd (ASX: STO)	$6.98	3.56%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check-in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most heavily traded ASX 200 shares this Wednesday
• Here’s why the Nickel Mines (ASX:NIC) share price is surging 7% today
• The best and worst ASX sectors of 2021. Why this year could be different
• Here are the 5 best performing ASX ETFs of 2021
• Why Afterpay, Appen, Liontown, and Nickel Mines shares are surging higher

Motley Fool contributor Mitchell Lawler owns Afterpay Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Afterpay Limited. The Motley Fool Australia owns and has recommended Afterpay Limited. 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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Shares in technology and financial services provider Computershare Limited (ASX: CPU) inching higher again today and finished trading less than 1% in the green at $20.72.

This watermark signals another record high for the company, whose share price has started the year with a bang after charging 4% in the green.

Whilst there’s been no price-sensitive info out of the $12.5 billion company by market cap, let’s take a stroll through as to what’s led us to this point today.

Computershare cruises to new record highs

It was a fulfilling year for Computershare investors in 2021. Shares rallied more than 38% across the period after setting a series of higher-highs and higher-lows in that time.

The momentum prompted analysts at Morgan Stanley to update its modelling on the company, subsequently raising its price target by 20% to $21.50.

Morgan Stanley notes that Computershare’s current “management” earnings per share (EPS) guidance calls for a 2% growth period in FY22, however, it feels this figure has the potential to be revised upward.

The broker also bakes in its views on interest rates, treasury yields and cost-budgeting efforts by the company that could materialise in FY22 to support its thesis.

This is relevant to Computershare given its exposure to interest rates at the belly of the interest rate curve, particularly up to 5-years, which are incredibly attractive to Morgan Stanley.

As a result, the broker estimates an EPS growth of 10% in FY22 for the company which it sees carrying through until FY23 and FY24.

Aside from this, ASX tech shares are back in the green today amid a softening reaction to the news that US Fed chair Jerome Powell is considering hiking rates earlier and at a faster pace than previously estimated.

The S&P/ASX All Technology Index (XTX) is also up more than 1% today after a tumultuous finish to 2021, where it has plunged 7% in the last month alone.

However, investors are regaining confidence in the tech sector, particularly as the market and strategists digest news of the intended rate hikes.

Computershare share price snapshot

In the last 12 months, the Computershare share price has gained more than 48% after rallying 5% in the past month.

Shares have started the year well and are up almost 4%, well ahead of the benchmark S&P/ASX 200 Index (ASX: XJO)’s return in that time.

The post Why did the Computershare (ASX:CPU) share price set another record high today? appeared first on The Motley Fool Australia.

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The author has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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