Category: Stock Market

The outlook for the Telstra Corporation Ltd (ASX: TLS) share price is looking brighter and it isn’t only because of the $2.8 billion part-sale of its towers business.

While the transaction certainly caught the imagination of the market and prompted some analysts to upgrade their price target on the Telstra share price, there’s another reason to be bullish on Australia’s largest telco.

Its competitor Vodafone removed all promotional discounts on its SIM-only plans last week, according to Goldman Sachs.

Telstra share price the biggest winner

Shareholders liked the news. The TPG Telecom Ltd (ASX: TPG) share price jumped 1.1% last week to $6.22 (TPG merged with Vodafone).

That’s ahead of the 0.3% gain by the S&P/ASX 200 Index (Index:^AXJO), although the Telstra share price is the big winner with a 5.4% surge.

But as I mentioned, Telstra’s surge was partly driven by its large divestment and promise of a $1 billion plus capital return.

Price rises and expanding margins

The move by Vodafone means an effective price increase for Vodafone customers of between $5 and $15 a month, or 13% to 25%.

“These changes have driven Vodafone (and industry) entry level pricing up to A$40 [a month],” said the broker.

“We are pleased with this development, which continues to support our high conviction on quantum of mobile market repair in Australia.”

Conducive competitive environment

The return of a more rational competitive environment is good news for Telstra’s margins. Vodafone is the last of the big three mobile operators to lift prices after Optus implemented price rises of a similar magnitude in May.

Telstra was the first to move and for a while, it looked like the odd one out. It was a calculated gamble that paid off as it could have lost market share if competitors kept their prices low.

Goldman noted that Telstra’s pricing plans offered at JB Hi-Fi Limited (ASX: JBH) was unchanged. This is good news as the broker believes that this was previously seen as a key inhibitor to Vodafone raising pricing.

Telstra share price could be cum-upgrade again

What it also means is that Telstra sees the earnings benefit of higher average revenue per user (ARPU) outweighed the potential lost subscribers.

“These changes support our view that Telstra is set to grow ARPU meaningfully ahead of consensus expectations across FY21-23E,” said Goldman.

“And [Telstra] will also likely introduce further price rises in FY22E (given its premium is now +20% vs. its +35% 3Y average, despite expanding 5G lead).”

The broker is recommending Telstra as a “buy” with a 12-month price target of $4.20 a share. It rates the TPG share price as “neutral” with a 12-month price target of $5.90 a share.

The post Why the Telstra (ASX:TLS) share price outlook suddenly improved last week appeared first on The Motley Fool Australia.

More reading

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• 5 best ASX energy shares of the 2021 financial year revealed
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• Here are the 5 best ASX telecom shares of the 2021 financial year

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If you’re looking to diversify your portfolio, then you might want to look at adding a little exposure to the resources sector.

But which shares should you consider? Two that could be worth considering are listed below. Here’s why they are highly rated:

Mineral Resources Limited (ASX: MIN)

Mineral Resources is a mining and mining services company with a world class portfolio of operations across lithium and iron ore. These are two of the hottest commodities around at the moment and are experiencing very strong demand from electric vehicle and steel making markets, respectively.

In respect to lithium, Mineral Resources owns the Wodgina operation. It is one of the largest known hard rock lithium deposits in the world with a production life of over 30 years. The company also has the Mt Marion Lithium project in its portfolio. This project is operated by Mineral Resources under a life-of-mine mining services contract and is jointly owned by it and Jiangxi Ganfeng Lithium.

As for iron ore, the company’s portfolio includes the Iron Valley Iron Ore project and the Koolyanobbing Iron Ore project in Western Australia.

Analysts at Macquarie are very positive on the company. So much so, they have an outperform rating and lofty $73.00 price target on its shares. This compares to the latest Mineral Resources share price of $55.54. Macquarie is also forecasting big dividends in the near term and estimates yields greater than 5% over the next two years.

Orocobre Limited (ASX: ORE)

Another mining share to consider is Orocobre. It is a lithium miner with operations in Argentina. This includes the Olaroz Lithium Project in the Jujuy Province of northern Argentina and Borax Argentina in the Salta-Jujuy region.

But perhaps best of all, is that Orocobre is potentially weeks away from merging with Galaxy Resources Limited (ASX: GXY). The latter’s shareholders will be voting on the merger next month.

If everything goes to plan, management believes the combined entity will be a new force in the global lithium sector. It will also be the world’s fifth largest lithium chemicals company with a diversified production base and exciting growth platform. Positively, management sees scope to unlock significant synergies in the future.

One broker that is particularly positive on Orocobre is Citi. It recently put a buy rating and $7.60 price target on the company’s shares.

The post 2 highly rated ASX mining shares that could be buys appeared first on The Motley Fool Australia.

More reading

• 5 best ASX 200 mining and resource shares of financial year 2021
• These were the best performing ASX 200 shares last week
• Galaxy (ASX:GXY) and Orocobre (ASX:ORE) shares rise on merger update
• The Mineral Resources (ASX:MIN) share price rose 16% in June. Here’s why
• Meet the best performing ASX 200 shares of FY21. Are yours on the list?

Motley Fool contributor James Mickleboro owns shares of Galaxy Resources 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 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that caught my eye are summarised below.

Here’s why brokers think investors ought to buy them next week:

Bapcor Ltd (ASX: BAP)

According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on the auto parts retailer’s shares slightly to $9.55. The broker appears to be pleased with Bapcor’s recent strategy update and notes that it has many medium and long term growth opportunities. Particularly given favourable trading conditions and consumer mobility trends. In addition to this, the company’s bold store expansion plans and its growing private label business are expected to be key growth drivers. The Bapcor share price ended the week at $8.35.

Telstra Corporation Ltd (ASX: TLS)

A note out of Credit Suisse reveals that its analysts have retained their outperform rating and lifted their price target on this telco giant’s shares to $4.15. This follows news that the company has agreed to sell 50% of its InfraCo Towers business for $2.8 billion, with ~50% of net proceeds to be returned to shareholders. Credit Suisse notes that the sale price was higher than it expected, which it expects to be accretive to earnings. Outside this, the broker remains positive on Telstra due to its improving outlook and encouraging mobile trends. The Telstra share price was fetching $3.79 at Friday’s close.

Westpac Banking Corp (ASX: WBC)

Analysts at Morgan Stanley have retained their overweight rating and $29.20 price target on this banking giant’s shares. According to the note, the broker believes Westpac can outperform the ASX 200 over the next 12 months. Morgan Stanley expects this to be driven by a continuing earnings upgrade cycle, potential capital management, and its attractive valuation. The Westpac share price was trading at $25.64 on Friday afternoon.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor 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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There are some ASX shares that might make compelling ideas to think about in July 2021.

Some businesses might have the potential to produce growth over the longer-term as the world recovers from, and adapts, to COVID-19.

Here are two ideas that could be considerations:

Lovisa Holdings Ltd (ASX: LOV)

Lovisa is a retailer that aims to bring affordable, on-trend jewellery to its global customer base.

It’s currently rated as a buy by the broker Morgans, which has a price target of $17.95. That suggests a potential upside of more than 10% over the next 12 months.

The broker is attracted to the reopening play for Lovisa, as well as the Beeline acquisition that the company made.

However, the business does still continue to experience disruptions to trading and temporary store closures as a result of COVID-19 restriction measures. Even so, some of its markets are back trading including the UK and France (where there had been lengthy store closure periods). However, some Australian stores have been impacted in recent weeks.

Lovisa is now investing in its digital capabilities as online demand increases. In the first half of FY21, its digital sales increased 335%. The ASX share said that the digital channel remains an important part of its global strategy critical to providing customers with the full range of shopping options that they require. It continues to invest in support structures to drive ongoing growth in this area and remain focused on maintaining the profitability levels of online sales.

Providing commentary after the release of the FY21 half-year result, Lovisa managing director Shane Fallscheer said:

We are pleased with the performance of the business for the half year, in particular with the improving sales performance we saw through Q2 despite the continued global challenges we face with the impact of COVID, and the strength of our balance sheet puts us in a great position to take advantage of future opportunities as they arise.

According to Morgans, the Lovisa share price is valued at 43x FY22’s estimated earnings.

Betashares Asia Technology Tigers ETF (ASX: ASIA)

This ASX share is about giving investors access to investing in Asia’s largest technology businesses outside of Japan.

According to BetaShares, due to its younger, tech-savvy population, Asia is surpassing the West in terms of technological adoption and the sector is anticipated to remain a growth sector.

In terms of the actual holdings, there are a total of 50. But you may have heard of some of the largest 10: Tencent, Taiwan Semiconductor Manufacturing, Alibaba, Samsung, Meituan, Pinduoduo, JD.com, Sea, Infosys and Netease.

Some of the above businesses are leaders in their industry in Asia, just like the FAANG shares might be the leaders in their respective industries in western countries.

All of the businesses in this portfolio are technology based, but they are focused on different areas.

Here are the largest sectors in the portfolio and their weightings: Internet and direct marketing retail (28.2%), semiconductors (19.2%), interactive media and services (19.2%) and technology hardware, storage and peripherals (11.4%).

When it comes to costs, this ETF has annual management costs of 0.67%.

Past performance is no guarantee of future performance. However, since September 2018, it has made annual returns per annum of 27.9%.

The post 2 compelling ASX shares that could be buys in July 2021 appeared first on The Motley Fool Australia.

More reading

• 3 quality ETFs for ASX investors in July
• Lovisa (ASX:LOV) share price gains 7% following co-founder’s Honey sale
• 2 quality ETFs for the new financial year
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• 3 excellent ASX shares for growth investors

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 owns shares of and has recommended BetaShares Asia Technology Tigers ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that caught my eye are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

Afterpay Ltd (ASX: APT)

According to a note out of UBS, its analysts have retained their sell rating but lifted their price target on this payments company’s shares to $42.00. This follows news that Afterpay is offering US consumers a pay anywhere option at some of the country’s largest retailers such as Amazon and Nike. Combined, the 12 retailers account for almost half of all ecommerce volume in the US. UBS sees this as a positive move and has upgraded its sales estimates meaningfully to reflect this. Nevertheless, the broker still believes its shares are severely overvalued at the current level. The Afterpay share price was fetching $118.29 at Friday’s close.

Commonwealth Bank of Australia (ASX: CBA)

A note out of Morgan Stanley reveals that its analysts have retained their underweight rating and $89.50 price target on this banking giant’s shares. According to the note, the broker expects the majority of the banks to outperform the ASX 200 over the next 12 months. This is due to their attractive valuations, positive outlook, and the continuing earnings upgrade cycle. However, this may not be the case for CBA. It feels Australia’s largest bank’s shares are overvalued at present. The Commonwealth Bank share price ended the week at $99.49.

Netwealth Group Ltd (ASX: NWL)

Analysts at Credit Suisse have downgraded this investment platform provider’s shares to an underperform rating but lifted the price target on them to $16.00. According to the note, the broker made the move on valuation grounds following a strong rise over the last few months. Outside this, the broker is a fan of the company and expects it to continue winning market share in the future. The Netwealth share price was fetching $16.25 at the end of the week.

The post Top brokers name 3 ASX shares to sell next week appeared first on The Motley Fool Australia.

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• The Afterpay (ASX:APT) share price is slipping today while the ASX 200 gains
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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 shares of and has recommended AFTERPAY T FPO and Netwealth. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Netwealth. 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 energy shares have been among the index’s stronger performers over the 2021 financial year (FY21). A 12-month period that saw the All Ordinaries Index (ASX: XAO) gain 25%.

With that financial year done and dusted, we take a look at the 5 best energy shares on the All Ords to have held from 1 July 2020 through to 30 June 2021.

Spurred on by higher energy prices, these shares all returned 3 or more times the gains posted by the All Ords.

Paladin Energy Ltd (ASX: PDN)

With an FY21 share price gain of 376%, Paladin Energy is hands down the best performing ASX energy share over this time.

The uranium producer has projects in Australia and Africa. It has, among other factors, benefited from rising uranium prices and speculation of still higher prices to come as the world re-examines nuclear power as a means to cut global carbon emissions.

Paladin closed the financial year trading at 51 cents per share.

With 2.68 billion shares outstanding, Paladin currently has a market cap of $1.34 billion.

Karoon Energy Ltd (ASX: KAR)

The second best performing ASX energy share is Karoon Energy. Karoon shareholders enjoyed a 124% price gain during FY21.

The oil and gas exploration company is engaged in projects in Australia, Brazil, and Peru.

Like other energy companies, Karoon has enjoyed some healthy tailwinds from rising crude oil prices. At the beginning of the 2021 financial year, a barrel of brent crude oil was selling for US$42 (AU$56) per barrel. Today that same barrel is worth US$75, an increase of 79%.

Karoon closed the year at $1.34 per share. With roughly 554 million shares outstanding, Karoon has a market cap of $737 million.

Senex Energy Ltd (ASX: SXY)

Coming in at number 3 is Senex Energy, with a financial year share price gain of 87%.

The oil and gas explorer and producer has projects in South Australia and Queensland. And it, too, will have benefited from rising crude and LNG prices, among other drivers.

Senex closed FY21 at $3.43 per share. With just under 184 million shares outstanding, it has a market cap of $630 million.

Senex also pays a dividend yield of 1.16%, 96% franked.

Helios Energy Ltd (ASX: HE8)

With a share price gain of 77%, Helios is the fourth best performing ASX energy share in FY21.

The oil and gas explorer is focused on its Trinity and Presidio projects in the US state of Texas. Trinity is comprised of 3,128 acres of oil and gas leases.

Helios closed the financial year at 18 cents per share. With some 1.65 billion shares outstanding, the company has a market cap of $289 million.

Energy Resources of Australia Limited (ASX: ERA)

Rounding out our list of top 5 ASX energy shares is Energy Resources Australia. The share price gained 74% in FY21.

The company operates the Ranger Uranium Mine in the Northern Territory, and processes and sells uranium oxide.

Like Paladin, Energy Resources Australia has been a beneficiary of higher uranium prices, as nations around the world (chiefly China) are upping their nuclear power ambitions.

Energy Resources Australia closed the year at 26 cents per share. With approximately 3.7 billion shares outstanding, it has a market cap of $960 million.

The post 5 best ASX energy shares of the 2021 financial year revealed appeared first on The Motley Fool Australia.

More reading

• 5 best ASX 200 mining and resource shares of financial year 2021
• Here are the 5 best ASX telecom shares of the 2021 financial year
• These were the best performing ASX 200 shares last week
• ASX 200 up, Westpac caught in potential fraud, RPMGlobal rises
• Here are the 5 best performing ASX tech shares from FY21

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 interested in boosting your income with dividend shares, then you might want to look at the ones listed below.

Not only are they rated as buys, they are tipped to provide yields of greater than 4%. They are as follows:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The first ASX dividend share to look at is ANZ. Thanks to favourable trading conditions, a booming housing market, cost reductions, and the relaxation of responsible lending rules, ANZ looks well-placed for growth in the coming years.

This certainly has been the case so far in FY 2021. During the first half of FY 2021, the company reported a statutory profit after tax of $2,943 million and cash earnings from continuing operations of $2,990 million. This was up 45% and 28%, respectively, on the second half of FY 2020.

Morgans is a big fan of ANZ. Its analysts currently have an add rating and $34.50 price target on its shares. They appear increasingly confident that ANZ will be able to deliver on its $8 billion cost base target.

The broker is forecasting fully franked dividends of 145 cents per share in FY 2021 and 163 cents per share in FY 2022. Based on the latest ANZ share price of $28.32, this represents yields of 5.1% and 5.7%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share to consider is Telstra. After years upon years of struggles, the tide is changing and growth could be on the horizon. This is thanks to its cost cutting, rational competition, and its leadership position with 5G. The latter is expected to support growth in the key postpaid mobile business.

In addition to this, the company is aiming ti unlock value through its corporate restructure and potential asset monetisation. In fact, Telstra has just announced an agreement to sell 50% of its InfraCo Towers business for $2.8 billion, with ~50% of net proceeds to be returned to shareholders.

Goldman Sachs is a fan of the telco giant and currently has a buy rating and $4.20 price target on its shares.

The broker is also forecasting fully franked annual dividends of 16 cents per share through to FY 2023, before an increase to 18 cents per share in FY 2024. Based on the latest Telstra share price of $3.79, this will mean attractive yields of approximately 4.2% over the coming years.

The post 2 blue chip ASX dividend shares with +4% yields appeared first on The Motley Fool Australia.

More reading

• Here are the 5 best ASX telecom shares of the 2021 financial year
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• ASX blue chips set to unleash buybacks and dividends! But which is better?
• Brokers name 3 ASX shares to buy today
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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 owns shares of and has recommended 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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ASX shares with small market capitalisations can sometimes appear to trade in a world of their own.

It seems there’s always a microcap out there striking gold or developing some tech that helps redefine the way we do business. And often when milestone developments such as these are announced to the market, it can result in the value of a company surging exponentially over a relatively short period of time.

On that note, with FY21 done and dusted, here’s a look at three ASX shares that managed to hit the coveted 10-bagger status over the course of the last 12 months.

These ASX shares went gangbusters last financial year

Podium Minerals Ltd (ASX: POD)

Podium Minerals is focused on developing its Parks Reef project, with plans of becoming Australia’s first Platinum Group Metal (PGM) producer.

PGMs are a family of six chemically similar elements, most valued for their wide range of industrial, medical and electronic applications.

According to the company’s May investor presentation, current inferred mineral resources include 1.39 million ounces of platinum, palladium and gold, as well as 53,900 tonnes of copper all within 100 metres of surface.

Podium Minerals is currently undergoing further drilling to accelerate its resource.

Recent exploration results have continued to show promise, with assay results released on 18 May resulting in a 21% spike in the Podium share price to 67 cents.

The company’s promising large-scale PGM asset, combined with its systematic drilling, saw investors flock to the company’s shares last financial year. The Podium Minerals share price began FY21 trading at a mere 2.3 cents and capped off the year at 51.5 cents for a whopping 2,139% gain over the 12-month period.

Looking ahead, Podium’s investor presentation advised it has commenced mine optimisation studies and preliminary economic analysis to drive its pathway to production.

Vulcan Energy Resources Ltd (ASX: VUL)

During the 2021 financial year, Vulcan Energy began to emerge as a household name in the ASX lithium sector.

The German-based lithium company aims to become the world’s first zero-carbon lithium producer for the electric vehicle industry.

According to Vulcan Energy’s project timeline, the company is targeting the completion of many production pre-requisites by early 2022. These include offtake agreements with European customers, a bankable feasibility study, further exploration and plant piloting.

If all goes to plan, Vulcan believes construction should commence in late 2022 with its first lithium production taking place by mid-2024.

The company’s zero-carbon ambitions, alongside the broader surge in ASX lithium shares, saw the Vulcan share price rally 1,245% from 56.5 cents to $7.70 in FY21.

IOUpay Ltd (ASX: IOU)

The IOUpay share price has been trending lower since February, from record highs of 85 cents to just 23.5 cents by 30 June.

However, shares in the South-East Asia-based buy now, pay later (BNPL) company came from humble beginnings of just 2 cents at the start of last financial year.

By the end of FY21, IOUpay shares had lifted a cool 1,075%.

IOUpay successfully completed a $50 million capital raising back in February 2020, paving the way to accelerate its opportunities in the BNPL sector in South-East Asia.

In February this year, the IOUpay share price staged a significant rally, surging from 17 cents on 5 February to an intraday high of 85 cents on 15 February.

The company’s agreement with EasyStore may have been among the catalysts for its strong showing in February.

While the IOUpay share price might have stalled in recent months, the company has continued to be on the lookout for opportunities to grow its presence in Asia.

More recently, IOUpay signed a Master Merchant Agreement with Razer Merchant Services on 15 June.

The post 3 ASX shares that hit 10-bagger status in financial year 2021 appeared first on The Motley Fool Australia.

More reading

• Here are the top 3 performing ASX BNPL shares of FY21 – and they’re not Afterpay
• These are the 5 best ASX mining and resource shares of FY21
• The Vulcan Energy (ASX:VUL) share price is rising today
• Up 1,169% in 1 year, why the IOUpay (ASX:IOU) share price is higher today
• The IOUpay (ASX:IOU) share price is up 4,000% in the past year

Motley Fool contributor Kerry Sun 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 don’t have sufficient funds to build a diverse portfolio, then exchange traded funds (ETFs) could be a quick way to fix this. This is because ETFs give investors access to a large number of shares through a single investment.

With that in mind, I have picked out three ETFs that trade on the ASX that could be good options. Here’s what you need to know about them:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

If you want to gain exposure to the growing Asian economy, then the BetaShares Asia Technology Tigers ETF could help you achieve it. This ETF gives investors a slice of a number of the most promising tech shares in the Asian market. This means you’ll be owning well-known companies such as ecommerce giant Alibaba, search engine company Baidu, online retail platform Pinduoduo, and WeChat owner Tencent.

The index the fund tracks has generated a return of 24.6% per annum over the last five years.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ASX ETF to look at is the BetaShares Global Cybersecurity ETF. As it names implies, this ETF gives investors exposure to the leading companies in the global cybersecurity sector. This could be a great place to invest, given how demand for cybersecurity services continues to increase due to the growing threat of cyberattacks. Included in the ETF are quality companies such as Accenture, Cisco, Cloudflare, Crowdstrike, Fortinet, Okta, Splunk, and Zscaler.

Over the last five years, the index the BetaShares Global Cybersecurity ETF tracks has delivered a return of 20.1% per annum.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF for ASX investors to look at is the VanEck Vectors Video Gaming and eSports ETF. It gives investors exposure to the largest companies involved in video game development, hardware, and esports. This means you’ll be owning companies such as Activision Blizzard, AMD, Electronic Arts, Nintendo, Nvidia, Roblox, and Take-Two. VanEck notes that these companies are well-placed to benefit from the increasing popularity of video games and eSports.

The index the VanEck Vectors Video Gaming and eSports ETF tracks has generated an average return of 33.6% per annum over the last five years.

The post 3 quality ETFs for ASX investors in July appeared first on The Motley Fool Australia.

More reading

• 2 ASX tech shares that might be buys in July 2021
• 2 quality ETFs for the new financial year
• Why Afterpay (ASX:APT) and this ASX share could be top growth options
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• 2 high quality ETFs for ASX investors

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 BETA CYBER ETF UNITS. The Motley Fool Australia owns shares of and has recommended BETA CYBER ETF UNITS and BetaShares Asia Technology Tigers ETF. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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There are a lot of growth shares out there for investors to choose from. To narrow things down, I have picked out two that analysts love.

Here’s why analysts rate these growth shares highly:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator has been growing at a consistently solid rate for over a decade. This has been driven by the popularity of its offering (who doesn’t like pizza?) and the ongoing expansion of its footprint.

That expansion saw the company’s store network reach 2,800 stores by the end of the first half of FY 2021. Pleasingly, it doesn’t expect to stop there and is aiming to double its presence in existing markets over the next decade.

In addition to this, the company has just announced its entry into Taiwan via the acquisition of Domino’s Taiwan. It sees opportunities to increase its network to 400+ stores in the country in the future.

A recent note reveals that Bell Potter currently has a buy rating and $122.00 price target on the company’s shares. It highlights that Domino’s still has significant capacity to make further acquisitions following the Domino’s Taiwan transaction.

Nitro Software Ltd (ASX: NTO)

Another ASX growth share to look at is Nitro. It is a global document productivity company helping businesses of all sizes eliminate paper, accelerate business processes, and drive digital transformation.

Nitro lets more than 11,000 businesses globally achieve this through its PDF productivity and eSigning solutions. This includes 68% of the Fortune 500 and three of the Fortune 10.

Demand for its offering continues to grow and is driving significant annualised recurring revenue (ARR) growth. For example, in FY 2020, the company reported a 64% increase in ARR to $27.7 million. And more of the same is expected in FY 2021, with management guiding to ARR of $39 million to $42 million. This will mean year on year growth of 41% to 51.6%.

Positively, this is still well short of a PDF document productivity and eSigning total addressable market (TAM) estimated to be worth $28 billion.

Helping it win further market share will be its recent acquisition of PDFpen. This gives Nitro access to the Apple ecosystem, which it previously did not have. And given how enterprise usage of iOS devices is forecast to increase from around 5% to 20% in the future, this bodes well for Nitro’s growth.

Morgan Stanley is positive on the company and last week retained its overweight rating and $3.70 price target on its shares.

The post 2 quality ASX growth shares that could be buys in July 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 and 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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