Category: Stock Market

The S&P/ASX 200 Index (ASX: XJO) didn’t have a great month just gone. Over October, the ASX 200 managed to fall by about 0.1%, continuing the legacy that the tenth calendar month of the year often isn’t a great one for investors.

But some ASX shares fared far better than others. And the ASX retail shares sector was one that had more than a few winners. So, let’s check out the best performing ASX retail shares over October.

The 5 best performing ASX retail shares

Super Retail Group Ltd (ASX: SUL)

Super Retail Group is our first ASX retail share that managed to eke out a relatively successful October. For those of you who aren’t familiar with this company, it’s the name behind popular retail brands like Super Cheap Auto, BCF and Rebel Sport. Super Retail started the month at a share price of $12.21 and finished up at $12.93 a share last Friday. So, it enjoyed gains of 5.9% in October. Not bad, one could say.

Accent Group Ltd (ASX: AX1)

Accent Group is another ASX retail share that pleased investors last month. Accent is the company behind popular footwear stores like Platypus and The Athlete’s Foot. It started the month at $2.24 a share but finished up at $2.48 last Friday. That’s an October gain of 10.7%.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of Australia’s most well-known retail brands and it had an October to match this reputation. JB is now a lot more than just a hi-fi store. It sells everything from vinyl records and TVs to fridges and other household appliances these days. This company started the month at $45.52 a share but finished up last week at $50.49, putting its gains for the month at a healthy 10.92%.

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is our next cab off the rank. This discount jewellery retailer also had a rather successful month just gone. Lovisa shares were trading at a flat $19 at the end of September, but fast forward to last Friday, and it closed at $21.72. That’s a month-on-month gain of 14.3%.

Nick Scali Limited (ASX: NCK)

Our final and best performing ASX retail share for October is none other than furniture purveyor Nick Scali. It began the month at a share price of $11.36 and closed last Friday at $14.47. That’s an awesome gain of 27.4%. Investors can probably thank Nick Scali’s extremely well-received acquisition of Plush Think-Sofas for $103 million. The company announced the acquisition early last month and it appears to have led to a stellar month for the Nick Scali share price.

The post These were the 5 best performing ASX retail shares in October appeared first on The Motley Fool Australia.

More reading

• Why the Amcor (ASX:AMC) share price is outperforming today
• ASX 200 (ASX:XJO) midday update: Zip’s record month, Domino’s crashes
• What’s going on with the Federal Reserve and how might it impact ASX shares?
• 5 things to watch on the ASX 200 on Thursday
• Why did the Orocobre (ASX:ORE) share price leap 6% today?

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. owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia has recommended Accent Group. 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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November 2021 looks like a month that could be a good time to looking for ASX tech share opportunities.

The share market continues to move up and down and this can create opportunities for investors to find growing businesses.

Technology businesses in-particular have the ability to achieve higher margins because of the typically intangible nature of what they do.

These two ASX tech shares might be quality ideas:

Redbubble Ltd (ASX: RBL)

Redbubble says it owns and operates the leading global online marketplaces, Redbubble.com and TeePublic.com, powered by independent artists. The company sells products with “uncommon designs” on products like apparel, stationery, housewares, bags, wall art and so on. Artists get to profit from their designs and the products sold.

After a very strong FY21 (and lots of mask sales), the company is seeing a decline in marketplace revenue, which was down 28% to $106 million in the first quarter of FY22. Excluding masks and on a paid basis, marketplace revenue was down 6%. The month of September only saw a decline of 2%.

It’s expecting FY22 marketplace revenue to be slightly above FY21’s marketplace revenue when excluding mask sales.

In the second half of FY22, the ASX tech share is expecting a steady return to year on year growth rates consistent with meeting its medium-term aspirations.

The business said that it remains confident and excited about the medium to longer-term opportunity to grow strongly its online marketplaces for consumers and extend Redbubble’s global market leadership as the largest platform for independent artists.

The Redbubble share price fell around 10% over the last month. It’s currently rated as a buy by Morgan Stanley with a price target of $6.50.

Betashares Nasdaq 100 ETF (ASX: NDQ)

This ASX tech share is an exchange-traded fund (ETF) that gives investors the ability to indirectly invest in many of the world’s biggest technology businesses.

The ETF has sizeable positions in businesses like Apple, Microsoft, Amazon, Tesla, Nvidia, Alphabet, Facebook/Meta, Adobe and Netflix.

Many of these businesses are world leaders at what they do, or have completely developed their own category. For example, Google is the dominant leader in ‘search’ and online video. Netflix is an extremely powerful force in streaming TV shows and movies. Tesla is a global leader in electric cars and batteries.

Owning this ETF gives investors the ability to benefit from how these tech companies are changing the world and introducing new products or services.

But there are numerous other tech-focused businesses within this portfolio. There are actually 100 positions in total in the portfolio. Other tech-enabled companies include PayPal, Cisco Systems, Broadcom, Intuit, Texas Instruments, Advanced Micro Devices, Honeywell, Qualcomm, Intuitive Surgical, Booking and so on.

As a group of businesses, the ETF’s portfolio has seen net returns of almost 25% per annum over the last three years. Since inception in May 2015, Betashares Nasdaq 100 ETF has produced an average return per annum of 22.4%.

It has an annual management fee cost of 0.48%, which is relatively low compared to what an active internationally-focused fund manager may charge.

The post 2 ASX tech shares that might be buys in November 2021 appeared first on The Motley Fool Australia.

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• 2 ETFs worth considering for a diversified ASX share portfolio today
• 2 top ETFs that might be buys in November 2021
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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. 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 BetMakers Technology Group Ltd (ASX: BET) share price is edging into positive territory on Thursday. This comes after the betting technology company received notice outlining the regulatory framework for fixed-odds betting on horse racing to begin in New Jersey.

At the time of writing, BetMakers shares are fetching $1.20 apiece, up 1.69%.

What did BetMakers announce?

The Betmakers share price is on the rise after the company advised that fixed-odds betting on thoroughbred horse racing in New Jersey will commence shortly.

Details are still sketchy in terms of the start date and the parameters set. However, the company stated it will update investors in the near future.

In August this year, the Governor of New Jersey signed into law a bill authorising fixed-odds wagering on horse races.

The company highlighted its exclusive 10-year agreement with the New Jersey Thoroughbred Horsemen Association and Darby Development LLC. The latter is the operator of Monmouth Park racetrack.

BetMakers expects to start facilitating fixed-odds betting on track at Monmouth Park sometime before the end of this year. The rollout of fixed odds to online wagering service providers will begin and continue throughout 2022.

Commenting on the news possibly driving the BetMakers share price, CEO Todd Buckingham said:

We are extremely pleased to have been notified of the regulatory framework that supports the recently approved legislation for fixed-odds betting on thoroughbred horse racing and we now look forward to working with our partners to deliver and manage fixed-odds betting on thoroughbred racing within this market.

New Jersey will be the first state to approve fixed-odds betting on horse racing and we believe this will create the framework that allows the sport of horse racing to capture a significant portion of the sports betting market that is taking off in the US.

About the BetMakers share price

The BetMakers share price has been in fine form over the past 12 months, accelerating by more than 180%.

Based on today’s price, BetMakers commands a market capitalisation of around $1.2 billion and has around 857.6 million shares outstanding.

The post The BetMakers (ASX:BET) share price is edging higher today. Here’s why appeared first on The Motley Fool Australia.

More reading

• Betmakers (ASX:BET) share price falls despite 437% cash receipts increase
• The BetMakers (ASX:BET) share price has slumped 13% in a month. What’s going on?

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. owns shares of and has recommended Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group 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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The Amcor CDI (ASX: AMC) share price is outpacing the broader market as leading brokers reiterated their buy calls following its results release yesterday.

Shares in the packaging giant jumped 2.3% to $16.50 in morning trade. In contrast, the S&P/ASX 200 Index (Index:^AXJO) gained a modest 0.3% at the time of writing.

The gains by the Amcor share price comes on top of yesterday’s 0.7% advance when management posted a 12% increase in first quarter adjusted earnings per share to US17.7 cents.

Amcor share price gains on market-beating results

The results were ahead of consensus forecast of US17 cents a share, according to Macquarie Group Ltd (ASX: MQG). The broker reiterated its “outperform” recommendation on the Amcor share price.

“Q1 is AMC’s weakest Q on seasonal basis given Northern Hemisphere summer,” said Macquarie.

“Q1 eps was 21.2% and 20.9% of FY eps in Q121 and Q120, respectively. Q122 represents 22.0% of our FY22 eps so running slightly ahead of traditional Q1 %.

“Quarterly dividend was increased to 12.0cps vs 11.75cps in the pcp.”

Macquarie’s 12-month price target on the Amcor share price is $18 a share.

Flexible earnings

Meanwhile, UBS also reiterated its “buy” rating on the shares after Amcor’s EPS came in 3% above its estimates.

“The EPS growth was underpinned by strong cost control/Bemis synergies as well as favourable product mix which more than offset significant raw material availability challenges,” said the broker.

Amcor’s flexible packaging division was the standout with earnings before interest and tax (EBIT) rising 9% in the September quarter to US$339 million compared to the same time last year.

In contrast, its rigid packaging division was weak as EBIT fell 14%. This is due to raw material shortages and supply chain disruptions caused by the COVID-19 pandemic.

Full year guidance gives Amcor share price a boost

Despite the challenges, Amcor reiterated its full year earnings guidance. Management is tipping constant currency EPS growth of between 7% and 11%. Consensus has pencilled in a rise of 8% – the lower end of guidance.

But with the strong first quarter performance, consensus may prove to be too conservative. Earnings upgrades could be in the wings.

“We are attracted to Amcor’s leading position across key global consumer packaging markets,” said UBS.

“The defensive nature of these markets as well as Amcor’s significant scale is clearly supporting earnings growth and cash flows despite significant volatility in raw material supply and pricing.”

M&A opportunities could provide extra tailwind

Further, the broker believes Amcor could have up to $1 billion in balance sheet capacity that could be used for an earnings accretive acquisition.

Good luck in finding a bargain to buy in these markets though. But that challenge doesn’t take anything away from Amcor’s strong results.

UBS’ 12-month price target on the Amcor share price is $18.83.

The post Why the Amcor (ASX:AMC) share price is outperforming today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Zip’s record month, Domino’s crashes
• What’s going on with the Federal Reserve and how might it impact ASX shares?
• 5 things to watch on the ASX 200 on Thursday
• Why did the Orocobre (ASX:ORE) share price leap 6% today?
• Here are the top 10 ASX shares today

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At lunch on Thursday, the S&P/ASX 200 Index (ASX: XJO) is on form again and pushing higher. The benchmark index is currently up 0.3% to 7,415.6 points.

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

Zip trading update

The Zip Co Ltd (ASX: Z1P) share price is trading flat today despite revealing a record performance during October. At its annual general meeting, Zip’s Managing Director and CEO, Larry Diamond, advised that total transaction value (TTV) increased 94% over the prior corresponding period in October to over $770 million. This represents a 24% month on month increase and annualises at over $9 billion.

Square shareholders approve Afterpay takeover

The Afterpay Ltd (ASX: APT) share price is rising today after its takeover by Square took a major step towards completion. This morning the payments company revealed that Square’s shareholders have voted in favour of the deal. Afterpay advised that it expects the transaction to complete within the first quarter of calendar year 2022.

Domino’s shares crash

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price is crashing on Thursday after investors responded negatively to its trading update. That update revealed a severe deterioration in the performance of the Domino’s Japan business once COVID restrictions lifted. As a result, management warned that it can no longer forecast whether FY 2022 Japan sales and earnings would surpass those recorded in FY 2021.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Thursday has been the NIB Holdings Limited (ASX: NHF) share price with a 5% gain. This follows the release of the private health insurer’s annual general meeting update. The worst performer has been the Domino’s share price with a 13% decline following its trading update.

The post ASX 200 (ASX:XJO) midday update: Zip’s record month, Domino’s crashes appeared first on The Motley Fool Australia.

More reading

• Why the Domino’s (ASX:DMP) share price is crashing 19% today
• Zip (ASX:Z1P) share price higher after record performance in October
• What’s going on with the Federal Reserve and how might it impact ASX shares?
• Afterpay (ASX:APT) share price on watch after Square takeover update
• 5 things to watch on the ASX 200 on Thursday

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 shares of and has recommended AFTERPAY T FPO and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO. The Motley Fool Australia has recommended Dominos Pizza Enterprises Limited and NIB Holdings Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Santos Ltd (ASX: STO) share price will likely have a captivated audience on Thursday. Australia’s second-largest independent oil and gas company has drawn some attention after its prominent display at the COP26 climate summit in Glasgow.

The event hosted appearances by several Australian companies seeking to display their climate-targeted efforts. Attendees included Andrew ‘Twiggy’ Forrest’s green-hydrogen protégé Fortescue Future Industries, alongside Sun Cable and Santos.

However, some criticism has been voiced regarding Santos’ prominent featuring at the event. Yet, Santos CEO Kevin Gallagher is adamant the company’s ‘blue’ hydrogen strategy is a winner.

Let’s take a look at what unfolded.

ASX-listed Santos turns up the heat at COP26

Santos has not been secretive about its ambitions to be net zero emissions by 2040. The 67-year-old Australian oil and gas giant believes it can reinvent itself by utilising new technologies. One important tool at its disposal is carbon capture storage. This is an essential ingredient for Santos in its proposed blue hydrogen production.

On Monday, Santos announced it had decided on proceeding with its $220 million Moomba carbon capture and store (CCS) project. The project, which is expected to be completed in 2024, is expected to capture 1.7 million tonnes of carbon dioxide per year. By using CCS, Santos will be able to burn natural gas in a low-emission manner.

Following the announcement, Santos CEO Kevin Gallagher has shared the opinion that fossil fuel companies will need to transition to new energy sources “or die”. In addition, the CEO pointed out that Santos is looking at green hydrogen plants. Although, Gallagher thinks that it won’t be economically viable for a decade.

Despite its endeavours to go net-zero, some participants at the COP26 summit weren’t happy with Santos’ featuring. In fact, former prime minister Malcolm Turnbull went as far as calling ASX-listed Santos’ appearance “a joke”.

Day 2, COP26, where the star attraction of the Australia pavilion was a model of Santos’ Moomba CCS hub project, which was given the green light yesterday, with the help of the Australian taxpayer. pic.twitter.com/RWykkUAk7M

— Anna Freeman (@FreeAnna1) November 2, 2021

https://platform.twitter.com/widgets.js

While the proposed project would enable the capturing of CO2, the company would likely be using this in conjunction with gas extraction. A concept that isn’t quite as green as producing energy directly through renewable sources.

What is blue hydrogen?

While green hydrogen is made by using renewable energy, blue hydrogen takes a different approach. Specifically, natural gas is burnt, with hydrogen being produced from the steam generated. From there, the carbon dioxide emissions are stored underground using carbon capture storage.

Gallagher is sceptical of renewables catering for all of the hydrogen required by 2050. Instead, blue hydrogen could fill this gap, as Gallagher stated, “We believe we can get it (blue hydrogen) to market quicker, and we have an abundance of natural gas in Australia which becomes a competitive advantage.”

Finally, ASX-listed Santos is trading at $6.86, down 2.83% at the time of writing.

The post Move over Twiggy, here’s why Santos’ (ASX:STO) boss is focused on blue hydrogen appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Friday
• Why ASX 200 energy shares are tanking on Thursday
• ASX 200 energy shareholders will welcome this Blackrock forecast
• Could the Santos (ASX:STO) share price hit $10 by the end of 2021?

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

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October was a tough month for some of the biggest shares in the ASX transport sector. Fortunately, that allowed some of the market’s smaller transport companies to shine.

The ASX transport shares that outperformed their peers over the month of October probably aren’t those you’re thinking of.

5 top performing ASX transport shares in October

A quick note before we start; this list only contains shares with market capitalisations of more than $100 million.

Regional Express Holdings Ltd (ASX: REX)

The REX share price outperformed its transport peers during the month of October, potentially on the back of optimism surrounding Australia’s domestic borders.

Over the month just been, the company’s business looked towards a brighter future without lockdowns and travel restrictions.

In fact, on 18 October, REX announced it plans to resume offering domestic flights from the middle of November.

The REX share price gained 5.33% over the course of October, finishing the month trading at $1.58.

Lindsay Australia Limited (ASX: LAU)

October was also a great month for the Lindsay Australia share price.

The integrated transport, logistics, and rural supply company’s stock gained 5.26% over the course of last month. It finished October trading at 39.5 cents.

The only price-sensitive news released by Lindsay last month was its annual investor presentation which, once again, detailed a strong financial year 2021.

K&S Corporation Ltd (ASX: KSC)

Another transportation and logistics company to make this list is K&S Corporation.

The K&S Corporation share price bested many other ASX transport companies in October. It gained 4.12% to end the month at $1.77.

The company’s gains came despite it maintaining its silence throughout the period.

Silk Logistics Holdings Ltd (ASX: SLH)

While October was a struggle for many ASX transport shares, one of the exchange’s new faces managed to end the month in the green.

The Silk Logistics share price gained 2.22% over the course of last month, finishing it at $2.30.

The ‘port-to-door’ technology-focused logistics company debuted on the ASX in July. Under its prospectus, shares in the company were offered at $2 apiece.

That meant investors who got in on the company before its initial public offering (IPO) could boast a 15% gain on their investment at the end of October.

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

Finally, the fifth best performing ASX transport share for the month of October was none other than Dalrymple Bay Infrastructure.

Over the course of last month, the Dalrymple Bay Infrastructure share price gained 1.33% to end the month trading at $2.28

While there was no news from the coal transportation company in October, it did continue its ongoing on-market buy back.

The post Which ASX transport shares were the best performers during October? appeared first on The Motley Fool Australia.

More reading

• Why Bubs, Dalrymple Bay, IAG, and Redbubble shares are dropping
• Regional Express (ASX: REX) share price slumps amid new regional competition
• Why is the Regional Express (ASX:REX) share price sliding 3% today?

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. 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 Appen Ltd (ASX: APX) share price is charging higher again on Thursday.

In late morning trade, the artificial intelligence data services company’s shares are up almost 3% to $11.65.

This means Appen’s shares are now up 30% since this time last month.

Can the Appen share price keep rising?

The good news is that one leading broker believes the Appen share price can keep rising from here. In fact, it has a price target well beyond where the company’s shares are trading today.

According to a note out of Citi from last week, its analysts have a buy rating and $17.10 price target on the company’s shares.

Based on the current Appen share price, this implies potential upside of 47% over the next 12 months. Not bad considering its recent gains!

Why is the broker bullish?

Citi has been bullish on Appen for a while, believing that it is well-placed to benefit from increasing demand for high quality data for artificial intelligence and machine learning models.

These models require huge quantities of high quality data in order to make their models successful. And that data needs to be prepared before being used. So, with a million-strong team of experts across the globe, Appen is able to provide tech giants such as Facebook and Google with the data they require.

Recently, however, COVID-19 led to many tech giants holding back on their artificial intelligence investment. This put a dampener on Appen’s growth and significant pressure on the Appen share price.

But at long last, the tide appears to be turning. Citi’s note highlights that Facebook has recently revealed that it intends to lift its artificial intelligence investment materially in FY 2022. The broker feels this bodes well for Appen and could lead to an increase in demand for its services.

All in all, while the Appen share price has rallied hard in recent weeks, this broker doesn’t appear to believe it is too late to get on board.

The post Is the Appen (ASX:APX) share price a serious bargain? appeared first on The Motley Fool Australia.

More reading

• Move over Appen: A new artificial intelligence stock to list on the ASX
• Analysts name 2 excellent ASX growth shares to buy
• These were the best performing ASX tech shares in October
• The Appen (ASX:APX) share price has jumped 23% in the last month
• 3 fantastic ASX shares that could be buys in November

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 shares of and has recommended Appen Ltd. The Motley Fool Australia owns shares of and has recommended Appen 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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The Envirosuite Ltd (ASX: EVS) share price is climbing during morning trade on Thursday.

The Sydney-based environmental tech company has announced a strategic partnership with Aeroqual, which is a global leader in air quality monitoring technology.

At the time of writing, the Envirosuite share price is up 4.44% to an intraday high of 24 cents.

Envirosuite sets eyes on growth opportunities

In a statement to the ASX, Envirosuite advised it has executed a Memorandum of Understanding (MoU) with Aeroqual.

The strategic partnership will see them pursue and develop joint market opportunities. This involves combining the two environmental technologies from both companies and packaging them together.

Aeroqual offers a global air quality monitoring platform based on smart sensing technology and advanced software algorithms.

Envirosuite’s proprietary software monitors and manages all-weather impacts, which allows customers to optimise their operations. The company hones in on air quality and metrology consultancy using real-time and predictive technologies.

Under the MoU, Envirosuite and Aeroqual will focus on driving revenue and customer traction across a number of industries.

The industries at the top of the list are mining, waste, wastewater, and industrial sectors in North America.

It’s worth noting that Aeroqual already has an established customer base in the United States. Clients include Anglogold Ashanti Ltd (ASX: AGG), the United States Environmental Protection Agency and New York City’s Department of Environmental Protection.

Envirosuite and Aeroqual are already working on other projects together in Spain, Malaysia and the US.

What did management say?

Envirosuite CEO Jason Cooper said:

The Envirosuite team is excited to expand our opportunity potential with Aeroqual, a leader in air quality stations, monitors and technology, to complement our EVS Omnis platform, provide expertise and combined solutions for advanced air quality management and intelligence within our respective high-growth industries.

We believe this partnership has the potential to help industries to transform their environmental management practices and accelerate growth within Mining, Waste, Wastewater and Industrial facilities.

Envirosuite share price snapshot

The Envirosuite share price has risen by more than 20% over the past 12 months.

The company’s shares hit a rough patch during the middle of this year. That changed late last month when the share price accelerated to a 52-week high of 24.5 cents.

Based on today’s Envirosuite share price, the company commands a market capitalisation of $270.01 million. It has approximately 1.2 billion shares outstanding.

The post This deal just caused the Envirosuite (ASX:EVS) share price to pop appeared first on The Motley Fool Australia.

More reading

• Envirosuite (ASX:EVS) share price climbs 9% on NASA contract

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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It has been a very disappointing day for the Domino’s Pizza Enterprises Ltd (ASX: DMP) share price.

In morning trade, the pizza chain operator’s shares are down 19% to $114.80.

Why is the Domino’s share price crashing?

Investors have been selling down the Domino’s share price this morning in response to its annual general meeting update.

That update, which was released yesterday after the market close, revealed a surprisingly weak performance from the company’s Japanese operations.

According to the release, during the first quarter, Domino’s Japan delivered strong growth prior to the government lifting national State of Emergency at the end of September.

Since then, with restaurants, bars, and shopping centres now reopened, network sales in Japan are negative on a one-year basis. Though, the company notes they are positive on a two-year basis.

Given current trading conditions and the material contribution of the Christmas trading period to Domino’s Japan’s full year performance, management warned that it was now unable to forecast whether FY 2022 Japan sales and earnings would surpass those recorded in FY 2021.

What about the rest of the business?

Domino’s revealed that first quarter network sales rose 8% or 4.3% on a same store sales basis over the prior corresponding period.

The company stated: “While this represents an improvement compared to the Full Year trading update, sales growth has been uneven across regions, with operations affected by local conditions including lockdowns and ongoing changes in customer behaviour, making short-term forecasts challenging.”

In addition, the company warned that currency and inflationary headwinds would impact its financial performance.

Nevertheless, the company’s CEO, Don Meij, remains positive on the future. Especially given its bold store rollout plans.

He commented: “While there are short-term challenges ahead of us as we transition to ‘living with COVID-19’, this is not new: our experienced teams have successfully navigated multiple challenges since the start of this pandemic.”

“Our network is already more than 7% larger this Financial Year (and 15% larger than this time last year), through continued organic new store openings and acquisitions, including the opening of 66 new stores and the addition of 156 stores with the acquisition of Taiwan.”

“We have a busy new store pipeline and this year we aim to open a record number of new stores; indeed, we are targeting FY22 to be the largest expansion of our store footprint in our Company’s history. We also remain active in pursuing additional markets.”

“A year ago, we noted: ‘We have the right product, value offering, and team members to confront this challenge’ – and our view remains unchanged,” he concluded.

Broker response

This update didn’t go down amazingly well with brokers, which goes some way to explaining why the Domino’s share price is performing so poorly today.

In response, the team at Credit Suisse retained their underperform rating and cut their price target down to $77.73.

Elsewhere, Goldman Sachs is likely to see the weakness in the Domino’s share price as a buying opportunity. While it was disappointed with its update, it held firm with its buy rating and trimmed its price target to $147.00.

It commented: “Overall, we believe that the longer term growth outlook driven by strong store growth remains unchanged. We make no changes to our store forecasts, but backend weight the rollout in FY22 in line with guidance. Overall, our revised forecasts still imply a 3 year CAGR EBITDA outlook of +14.6% driven by overall strength in Europe (+19.7%) and Japan (+15.3%).”

The post Why the Domino’s (ASX:DMP) share price is crashing 19% today 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. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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