Category: Stock Market

There are some ASX shares that are rated as buys by multiple different brokers.

Share prices are changing all the time, so different companies can become opportunities at different times.

When many analysts think that a business is a buy, it could mean that the company is an opportunity. That’s the case with these two:

Baby Bunting Group Ltd (ASX BBN)

Baby Bunting is the leading retailer of baby and toddler products in Australia. It’s currently rated as a buy by at least five different brokers including Citi.

The broker thinks that sales were going to improve over the rest of the first half of FY22 after a slow start in the first couple of months.

It was the annual general meeting (AGM) that also revealed a couple of other positive trends that Citi liked the look of.

The ASX share revealed that in FY22 to the beginning of October 2021, its gross profit margin had increased by 120 basis points to 38.7%. That company attributed this improvement to private label and exclusive products, product mix and supply chain efficiencies.

Private label and exclusive products in the year to date (at the time) made up 44.3% of sales. It was 38% in the prior corresponding period. Baby Bunting has a long-term goal for private label and exclusive products making up half of sales.

On Citi’s numbers, Baby Bunting is valued at around 20x FY23’s estimated earnings.

Seven West Media Ltd (ASX: SWM)

Seven West is one of the leading media businesses in Australia, with the key channel 7 channels.

It’s currently rated as a buy by four brokers including UBS which has a price target on the business of $0.95. That’s around 50% higher than where it is today.

The broker has already seen a strong start to FY22 from Seven West.

Seven West is looking to grow digital earnings before interest, tax, depreciation and amortisation (EBITDA) by 100% from $60 million to $120 million in FY22.

Management said that the ASX share is well positioned to achieve its targeted share of 40% in the first half of FY22.

The delivery of its recurring savings target of between $15 million to $20 million is progressing to expectations.

Seven West said at its annual general meeting (AGM) that it was expecting to exceed analyst consensus EBITDA of $260 million by between 7% to 10%.

The company is also in the process of buying all the business and related assets of Prime Media Group Limited (ASX: PRT) which management said would significantly add to earnings, both before and after synergies. A key part of the attraction of the deal was that it would unlock the potential of a combined metro and regional audience base across broadcast and digital platforms. The ACCC said it would not oppose this deal.

According to UBS, the Seven West share price is valued at 5x FY23’s estimated earnings.

The post 2 ASX shares rated as strong buys by brokers appeared first on The Motley Fool Australia.

More reading

• Why Alcidion, Magellan, Redbubble, and Seven West shares are dropping
• Seven West Media (ASX:SWM) share price dips despite ACCC green light on Prime Media deal
• 2 buy-rated ASX shares with big growth plans
• Raiz (ASX:RZI) share price climbs 8% as Seven West Media makes strategic investment

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 Baby Bunting. 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 giant QBE Insurance Group Ltd (ASX: QBE) has been disappointing for buy-and-hold investors the past few years.

The share price has lost almost 10% over the last 5 years and more than 67% since its peak 14 years ago, just before the global financial crisis.

However, 2021 proved to be something of a comeback year for QBE shares.

Heading into the last 10 days of the year, the stock is up by around 32%.

So is it one to add to your portfolio for 2022?

‘Pricing tailwinds’ are coming for QBE shares

Morgans investment advisor Jabin Hallihan is one expert who’s bullish on QBE shares.

“Our forecast price target is $13.70 amid a dividend yield of 4.2%,” he told TheBull last week.

“The stock is relatively inexpensive as it was recently trading on a forecast price-earnings multiple of 12.8 times for fiscal year 2022.”

The QBE share price closed Tuesday at $11.29, implying an upside of more than 20% by Morgans’ projections.

Hallihan said “pricing tailwinds are evident”.

“QBE has increased insurance rates over the past year, which is likely to increase margins and underlying profit into 2022.”

QBE is ‘major beneficiary’ of rising interest rates

Another professional who likes QBE shares as we see off 2021 is Fat Prophets chief executive Angus Geddes.

He said that the insurer has made “substantial improvements” to its operations the last few years, and that’s about to bear fruit.

“Narrowing its focus has simplified the business and led to improving underwriting outcomes.”

Geddes agrees with Hallihan that pricing is an ace up QBE’s sleeve in the coming year.

“The insurance pricing market has become more rational, and QBE’s premiums have firmed considerably, which should continue, in our view,” he said.

“The business should be a major beneficiary ahead of a steepening yield curve.”

‘Strong buy’, say 6 of 8 analysts

Hallihan and Geddes are far from alone in their optimism for the QBE share price.

According to CMC Markets, 6 out of 8 analysts are currently rating the stock as a “strong buy”. The 2 dissenters are rating it as a “hold”.

QBE is now helmed by a fresh chief executive, Andrew Horton, who only started in September.

He said last month that his biggest challenge is to reform the culture of the company’s 11,500-strong workforce.

“It sounds very easy, but if it’s not natural to everybody, it’s going to be quite hard,” he told Insurance Business. 

“That’s why I need to start with the executive group, being supportive of each other and thinking towards the enterprise, and then cascade that down to the organisation.”

The post Where are QBE (ASX:QBE) shares headed in 2022? appeared first on The Motley Fool Australia.

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• Own QBE (ASX:QBE) shares? New CEO reveals insurer’s biggest challenges
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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Are you looking for some dividend shares to buy? If you are, then you might want to look at the ones listed below.

Here’s why these ASX dividend shares could be in the buy zone:

Adairs Ltd (ASX: ADH)

The first ASX dividend share to look at is Adairs. It is the leading homewares and furniture retailer behind a number of brands including Adairs, Mocka, and, shortly, Focus on Furniture. The company has just signed an agreement to acquire the latter, boosting its exposure to the $8.3 billion bulky furniture category.

Morgans was pleased with the acquisition. In response, the broker retained its add rating and lifted its price target to $4.80. This compares to favourably to the latest Adairs share price of $3.85.

The broker also expects generous dividends in the near term. It is forecasting fully franked dividends per share of 23 cents in FY 2022 and then 29 cents in FY 2023. This equates to yields of 6% and 7.5%, respectively.

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

Another ASX dividend share that could be a buy is ANZ. It could be a top option for income investors that don’t already have exposure to the banking sector. Particularly given its strong position in business banking, which is experiencing much more favourable trading conditions than retail banking.

It was partly thanks to this side of the business that ANZ recently delivered an impressive full year result. For the 12 months ended 30 September, the bank reported a 72% jump in statutory profit after tax to $6,162 million and a 65% increase in cash earnings from continuing operations to $6,198 million.

The team at Bell Potter is feeling positive about ANZ. Last week it reiterated its buy rating and $30.00 price target.

As for dividends, the broker is expecting fully franked dividends per share of 144 cents in FY 2022 and 151 cents in FY 2023. Based on the current ANZ share price of $27.32, this will mean yields of 5.3% and 5.5%, respectively.

The post Analysts name 2 high yield ASX dividend shares to buy appeared first on The Motley Fool Australia.

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• 2 great ASX dividend shares rated as buys for 2022: experts
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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 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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It’s fair to say there’s been a lot of speculation in share markets since the March 2020 COVID-19 crash.

Of course, the stock market’s spectacular recovery out of that trough has made decent money for many people — including first-time investors. 

But nothing probably represents that speculative fervour better than the enthusiasm for a particular US company.

Saxo Markets this week revealed that the 4th-most traded stock among Australians last month was Rivian Automotive Inc (NASDAQ: RIVN).

The electric truck maker made its debut on the NASDAQ on 12 November, Australian time, and quickly captured the imagination of investors.

The stock was listed at US$78 per share but within a week, it hit a high of US$179.47.

And it seems Australians were definitely part of the craziness.

The trouble is, Rivian has so far only made a handful of cars, mostly driven by employees and a select few outside the business. The company has not recorded any revenue yet.

Even at the current stock price of around US$90, the market capitalisation is US$76 billion. That’s pretty much the same as Ford Motor Company (NYSE: F) and General Motors Company (NYSE: GM), which rake in annual revenues in the hundreds of billions.

What is going on?

Why investors are going mad for Rivian

Australians are going nuts for Rivian because they want to experience the same windfall that Tesla Inc (NASDAQ: TSLA) shareholders have.

Those lucky souls have seen their money multiply 10 times over the past 2 years as the world awoke to the realisation that electric vehicles would eventually dominate.

And who wouldn’t want to emulate that?

“Traders are excited to back the next reportedly big electric vehicles startup, with Rivian Automotive Inc seemingly being that meteor to grab onto,” stated Saxo in its Australia’s 10 Most Popular Stocks in November report.

Rivian supporters point out that e-commerce giant Amazon.com Inc (NASDAQ: AMZN) owns a reported 20% of the business and has an order for 100,000 delivery vans to be fulfilled by 2030.

Why investors should be wary of Rivian

But the trouble is, backing a zero-revenue business — let alone one that’s not making a profit — carries a big risk.

The Saxo report pointed out that even if Rivian reached its estimated revenue of US$9.4 billion, the money left over after expenses would not amount to much.

“Based on Rivian reaching Tesla’s operating margin of 9.6% and a 25% cash tax rate, this would equate to a net operating income of US$677 million after taxes.”

For Saxo Bank head of equity strategy Peter Garnry, the possible financials just do not justify the current valuation.

“Assuming the cost of capital of 10% — primarily equity financed with a high beta and early-start risk premium — and we play with the thought that this revenue/orders were a perpetuity and it could pass on inflation of 3% in the future, then this cash flow is worth [a market cap of] US$10 billion today.”

The Motley Fool US’ Jason Hall, in a video recorded just before Rivian’s listing, could not quite reconcile the numbers either.

“I just can’t wrap my head around buying what’s essentially still a start-up,” he said.

“This is still a start-up, they’re still basically pre-revenue. Start manufacturing 100,000 cars a quarter, and then we can have a conversation about whether I think it’s an investable company.”

The post Why are Aussies going mad for this $0 revenue company? appeared first on The Motley Fool Australia.

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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo owns Amazon. 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 Amazon. 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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Are you interested in adding some ASX tech shares to your portfolio for 2022?

If you are, you may want to look at the ones listed below that have recently been named as buys. Here’s what you need to know about them:

Altium Limited (ASX: ALU)

The first ASX tech share to look at is Altium. It is the printed circuit board (PCB) design software provider behind the popular Altium Designer and cloud-based Altium 365 platforms. The company’s platforms help many of the biggest tech companies in the world, such as BAE Systems and Tesla, to develop and manufacture electronics products faster and more efficiently. And given the explosion of electronic devices globally due to the rapidly growing Internet of Things and artificial intelligence markets, demand is expected to grow strongly over the next decade.

Jefferies is positive on Altium and currently has a buy rating and $48.83 price target on its shares. The broker believes the quality and price of Altium’s platform has positioned it well to win a significant share of the enterprise market.

Hipages Group Holdings Ltd (ASX: HPG)

Another ASX tech share to look at is Hipages. It is a leading Australian-based online platform and software as a service (SaaS) provider connecting consumers with trusted tradies.

Hipages has been growing at a rapid rate in recent years and appears well-placed to continue this trend in the future. Particularly given its strong market position in Australia and the recent agreement to acquire New Zealand-based rival Builderscrack for A$11.8 million. It is a leading online tradie marketplace with 4,000 active tradies and 200,000 registered homeowners across the NZ$26 billion total addressable market.

In response to the news, the team at Goldman Sachs maintained their buy rating and lifted their price target on the company’s shares to $5.15. The broker sees a meaningful growth opportunity from here and is forecasting a 24% revenue CAGR and a 38% EBITDA CAGR from FY 2021 to FY 2024.

The post 2 exciting ASX tech shares to buy 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 Altium and Hipages Group Holdings Ltd. The Motley Fool Australia has recommended Hipages Group 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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Could the share prices of these two ASX shares offer tasty returns, or are these food stocks going to sour further?

COVID-19 has impacted various elements of the food economy for a long time. The share prices of these two businesses have dropped in recent months. This raises the question – are they now looking like opportunities?

Inghams Group Ltd (ASX: ING)

Inghams is one of the largest suppliers of poultry products to Australia.

Since the end of September 2021, the Inghams share price has fallen by around 18%.

Analysts like the ones at Macquarie Group Ltd (ASX: MQG) thinks that COVID impacts will hurt underlying profit in FY22. The broker thinks that Inghams’ profit could decline by mid-single digits in FY22 because of impacts like lockdowns and higher feed costs.

However, there is one broker that is very positive about the ASX share – Citi. It thinks that that the company will be able to pass on higher prices to consumers in the coming months. The broker notes that poultry volumes in Australia saw growth in the three months to September 2021, which seemingly would suggest optimistic things for Inghams.

Based on Citi’s numbers, the Inghams share price is valued at 13x FY22’s estimated earnings. Turning to the potential dividend, the broker has estimated that Inghams could have a grossed-up dividend yield of 6.6%. The price target is $4.55.

Domino’s Pizza Enterprises Ltd. (ASX: DMP)

Domino’s is one of the largest fast food businesses in Australia, as well as several other countries. It’s now in several European countries as well as Japan and Taiwan.

However, the Domino’s share price has dropped 29% since the middle of September 2021.

The broker Morgans has a price target on the fast food business of $135, which suggests a potential increase of the Domino’s share price of around 15% over the next year.

In a trading update released at the annual general meeting (AGM), Domino’s said that in the first 18 weeks of FY22, network sales were up 8%, with same store sales (SSS) rising by 4.3%. Domino’s called this growth strong during difficult and uncertain times.

However, sales growth has been uneven across different regions. Japan was seeing negative sales after lockdowns ended, meaning it may not beat FY21’s Japanese earnings in FY22. However, Japanese store openings remain “very strong”.

The ASX share is planning to add a record number of stores in FY22, by adding the equivalent of more than one store each day.

The company is experiencing inflation in a few of its cost areas including energy and food.

Its three to five year outlook was unchanged, with same store sales growth of 3% to 6%, new store openings of 9% to 12% and net capital expenditure of between $100 million to $150 million.

Looking at broker expectations, the Domino’s share price is valued at 50x FY22’s estimated earnings and 41x FY23’s estimated earnings. The current rating on Domino’s by Morgans is a hold.

The post Do these two unloved ASX shares offer tasty returns? 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 Dominos Pizza Enterprises Limited and Macquarie 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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It has been a difficult year for the A2 Milk Company Ltd (ASX: A2M) share price. Could things turn around in 2022?

In 2021 to date, A2 Milk shares have dropped 53%.

But from here, is the outlook good for the business? Or could things turn even more sour?

Analyst opinions on the A2 Milk share price’s prospects in 2022

Brokers are mixed on the business.

Credit Suisse is neutral on A2 Milk, with a price target of $5.75. That implies a mid-single digit return over the next 12 months with A2 Milk starting to regain some pricing power.

Citi has a buy rating on the business, with a price target of $7.30. UBS is also a buy, with this broker expecting a good recovery in the next few years. UBS is noticing the recovery in the first quarter of infant formula with an English label.

The brokers at Macquarie Group Ltd (ASX: MQG) currently rate the business as a sell/underperform, with a price target of $5.20. That would be a mid-single digit decline over the next 12 months if the broker is right. Macquarie thinks that the profit margins don’t seem as though they will be strong in the next few years.

Recovering demand but lower margins?

In the fourth quarter of FY21, A2 Milk ‘recognised’ stock write-downs and deliberately slowed sales, together with other planned initiatives, to reduce inventory levels and rebalance English label infant formula pricing across channels. It also swapped older distributor inventory with more recent stock to improve on-shelf product freshness.

When A2 Milk gave its latest trading update, it noted that English label infant formula sales in the first quarter of FY22 were down on the first quarter of FY21, but were “significantly up” on the fourth quarter of FY21. That fourth quarter of FY21 was constrained to reduce channel inventory levels.

English label infant formula sales are expected to be down in the first half of FY22 on the prior corresponding period, but ahead of expectations.

Turning to A2 Milk’s earnings before interest, tax, depreciation and amortisation (EBITDA) margin expectations, A2 Milk said that the target margin is probably in the “teens” in the medium-term due to “expected” market conditions, investment and innovation.

Management also said that the target margin was “possibly” in the low-to-mid-20s in the medium-to-long-term subject to a market recovery that was better than expected, English label channel growth and market share gains.

A2 Milk share price valuation

Looking ahead to 2023, the Macquarie analysts think that A2 Milk shares are valued at 30x FY23’s estimated earnings.

On Citi’s numbers, the A2 Milk share price is valued at 27x FY23’s estimated earnings.

The post What’s the outlook for the A2 Milk (ASX:A2M) share price in 2022? 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 A2 Milk and Macquarie 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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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Perennial Value Management portfolio management director Stephen Bruce explains why he currently loves 3 particular ASX shares.

Hottest ASX shares

The Motley Fool: What are the 3 best stock buys right now?

Stephen Bruce: I just touched on iron ore — we think it’ll be potentially a really good trade over the coming 6 months or so. 

Another one would be United Malt Group Ltd (ASX: UMG), the malt company. It’s been a terrible laggard the last year or two. It was spun out of Graincorp Ltd (ASX: GNC) and it was meant to be a defensive business. It would be defensive in an economic downturn, but unfortunately, COVID has caused significant disruptions to its business — pubs being closed has affected the types of beer that get drunk in pubs versus drunk in your living room, et cetera. And some of its supply chain issues have hurt them as well.

But we think as we go into next year, some of that’s going to start to get resolved and the earnings are going to bounce back. But what’s really quite interesting is that the global malting industry is really undergoing a lot of consolidation. And we’ve seen some transactions at prices that would value UMG sort of closer to $6 than the mid-$4s where it’s trading now. 

So that’s one where we think [we] could do really well. Simply from our recovery and reopening, but then with the potential of corporate activity on top of it.

MF: I see United Malt’s price to earnings (P/E) ratio is reasonably high. Are you guys concerned about that at all?

SB: I guess if you look at the P/E ratio just on this year’s earnings, it’s still depressed. But if you look out to say 2023 when earnings start to get more normalised, it’s starting to look more attractive. When you’re thinking about it from a corporate point of view, 12 times EBITDA [earnings before interest, taxes, depreciation, and amortisation] is a level that transactions are being done on and that compares to, I think, UMG’s trading about 8 times.

Virgin Money UK CDI (ASX: VUK) is another unusual stock we like. It’s the biggest challenger bank in the UK, used to be owned by National Australia Bank Ltd (ASX: NAB) till it was spun out a couple of years ago. It’s really well placed to take market share in the UK banking market, we think, and the Virgin brand’s attractive to a younger banking consumer cohort.

And they’ve been investing in a pretty slick IT front-end to make them sort of easier to deal with and more efficient. And the UK banking sector we think overall is poised to do really well because the economy — the most recent headlines have been a bit negative — but by and large that economy has come out of COVID very, very strongly. 

Importantly with inflation, where it is there, it looks like the Bank of England is going to be one of the first to start raising rates and that’s really good for bank profitability.

MF: And your third ASX share pick?

SB: I suppose Independence Group (IGO Ltd) (ASX: IGO) is an interesting one. It’s had a really, really strong run, but if you’re a believer in the electric vehicle thematic, then potentially there’s still a lot of upside there. 

They just announced that they were trying to acquire Western Areas Ltd (ASX: WSA). And when you look at Independence Group, there’s a couple of high-level things [that] make it really attractive. Firstly it’s got basically the whole suite of the metals, being copper, nickel, lithium, and cobalt. So pretty much everything you can put into a battery, they make. 

An increasingly important thing [is] simply being located where they are. In Australia, it’s just an easy geography where you’ve got high levels of good regulation, high ESG standards, low levels of political risk and it’s easy to get things done. Although it’s not the cheapest place to do business, it’s a safe place to do business. I think over time that’ll become increasingly appreciated by investors.

MF: Is it ironic that in this ESG era that many miners are still quite buoyant because you still need those raw materials to create products like batteries?

SB: Absolutely. I think people have to be pragmatic about what is required, like to say mining is bad as a blanket statement is obviously not right and not practical either.

The post Drinking, banking, and EVs: 3 value ASX shares I’d buy right now appeared first on The Motley Fool Australia.

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

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There are some ASX dividend shares that have relatively low valuations, or low price/earnings ratios. This helps them deliver quite high yields for investors.

Some businesses in the retail sector trade at a lower earnings multiple compared to other sectors, so it can be a fertile place to look for income opportunities, such as these:

Nick Scali Limited (ASX: NCK)

Nick Scali is one of the leading furniture companies in Australia. It operates a national network of showrooms. It has also acquired the business Plush-Think Sofas.

The combined business has around 100 showrooms in Australia and New Zealand, with pro forma revenue of $533 million and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) of $153 million in FY21.

Nick Scali likes what it can now offer customers. It has a dual brand strategy targeting a broader customer demographic. Nick Scali believes the enhanced market position provides diversity in its store format, location and geographic exposure.

Management noted that the two brands are highly complementary ‘made to order’ models with similar inventory and working capital profiles. The ASX dividend share says that there are opportunities for further growth, including a new store roll out for both brands in Australia and New Zealand.

The acquisition adds to profit and the company thinks there are material synergies which can be realised after an integration period.

Nick Scali also plans to ramp up the overall online sales, which is expected to help profit over time.

It’s currently rated as a buy by the brokers at Macquarie Group Ltd (ASX: MQG), with a price target of $15.50. On Macquarie’s numbers, Nick Scali is valued at 15x FY23’s estimated earnings with a projected FY23 grossed-up dividend yield of 7.4%.

Accent Group Ltd (ASX: AX1)

Accent is one of Australia’s leading shoe companies, selling through a number of brands (owned and as a distributor) including VANS, Trybe, The Athlete’s Foot, Stylerunner, Skechers, Platypus, Glue, Dr Martens and CAT.

The business is embarking on a large store rollout across various brands. At the end of FY21 it had 638 stores. It’s now expecting to open more than 120 new stores, including new concepts, in FY22. However, it could also close up to 10 stores where sustainable rent cannot be agreed. New stores are reportedly performing strongly.

The business made $25.6 million of sales from vertical and owned brands. It’s targeting at least $70 million of sales in FY22 – since the lockdowns ended its run rate of sales has been around $1.3 million per week.

Digital sales are another part of the equation for Accent. In FY21, digital sales increased by 48.5% and made up 20.9%. These sales come with attractive profit margins. The ASX dividend share is targeting 30% of sales to be digital over time.

It has signed a number of new distributions recently including Herschel, Hoka, Timberland Pro, Autry and Reebok.

Based on estimates on Commsec, the Accent share price is valued at 14x FY23’s estimated earnings. The projected grossed-up dividend yield for FY23 is 8%.

The post 2 cheap ASX dividend shares with big yields 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 Accent Group and Macquarie 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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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and recorded a strong gain. The benchmark index rose 0.85% to 7,355 points.

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

ASX 200 expected to edge higher

The Australian share market looks set to edge higher on Wednesday following a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 9 points or 0.1% higher this morning. In late trade in the United States, the Dow Jones is up 1.45%, the S&P 500 is up 1.55%, and the Nasdaq is trading 2.1% higher.

Chalice demerger

The Chalice Mining Ltd (ASX: CHN) share price is likely to trade notably lower on Wednesday. This morning the company’s gold exploration business Falcon Metals Ltd (ASX: FAL) will begin trading separately on the ASX boards following the completion of its demerger. Eligible Chalice shareholders received 1 Falcon share for approximately every 3.0341 Chalice shares.

Oil prices jump

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a great day after oil prices jumped. According to Bloomberg, the WTI crude oil price is up 3.7% to US$71.17 a barrel and the Brent crude oil price has risen 3.5% to US$74.03 a barrel. Oil prices rebounded after investors’ appetite for risk improved.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could come under pressure today after the gold price dropped. According to CNBC, the spot gold price is down 0.35% to US$1,788.4 an ounce. The gold price fell as investors rotated to risk assets.

Dividends being paid

More dividends are being paid to investors on Wednesday. KFC-focused quick service restaurant operator Collins Foods Ltd (ASX: CKF) and commercial explosives company Orica Ltd (ASX: ORI) are rewarding their shareholders with 12 cents per share and 16.5 cents per share dividends, respectively, later today.

The post 5 things to watch on the ASX 200 on Wednesday 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 Tuesday
• Why is the Woodside (ASX:WPL) share price on the slide this week?
• ASX 200 (ASX:XJO) midday update: Magellan rebounds, Pilbara Minerals sinks
• What are these top brokers betting for Beach Energy (ASX:BPT) shares in 2022?

Motley Fool contributor James Mickleboro owns Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Collins Foods 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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