Category: Stock Market

The Australian share market started the week on an extremely positive note on Monday. This led to a good number of shares charging notably higher.

Some shares climbed more than most and a few even managed to hit 52-week highs or better.

Here’s why these ASX shares are flying high right now:

Afterpay Ltd (ASX: APT)

The Afterpay share price continued its positive run and raced to a record high of $49.00 on Monday. Investors have been fighting to get hold of the payments company’s shares in recent weeks for a number of reasons. These include its very strong performance during the third quarter, WeChat owner Tencent Holdings becoming a substantial holder, explosive active customer growth in the U.S. market, and its upcoming addition to the MSCI Australia index.

Reject Shop Ltd (ASX: TRS)

The Reject Shop share price hit a 52-week high of $4.91 yesterday. The discount retailer’s shares have been strong performers over the last few weeks and are now up over 63% since this time last month. One of the catalysts for this appears to have been a broker note out of Goldman Sachs. At the start of the month the broker upgraded its shares from a sell rating to a buy rating with a $4.75 price target. It spoke positively about its turnaround story with a new executive team, its robust balance sheet, and the potential for material improvements in efficiencies in labour, rent, and stock turn.

Whispir Ltd (ASX: WSP)

The Whispir share price hit a record high of $2.80 on Monday. Investors have been buying the communications workflow platform provider’s shares in recent months due to its strong performance during the pandemic. The work from home initiative has been driving increased demand for its offering, which led to solid Annualised Recurring Revenue (ARR) growth during the third quarter. Whispir posted a 10.4% quarter on quarter jump in its ARR to $40.5 million. This was the result of a record addition of 49 net new customers and increased platform use by existing customers.

More reading

• 5 ASX 200 10-bagger shares of the decade
• ASX 200 jumped higher, rises more than 2%
• Top brokers name the latest ASX 200 stocks to sell today
• These ASX 200 share prices were cut in half. Where are they now?
• The Afterpay share price just hit a new record high: Should you invest?

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 Whispir Ltd. The Motley Fool Australia owns shares of AFTERPAY T FPO. The Motley Fool Australia has recommended Whispir Ltd. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why Afterpay and these ASX shares just zoomed to 52-week highs appeared first on Motley Fool Australia.

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Given the bleak outlook for interest rates in Australia over the next few years, if I had $10,000 sitting in a savings account, I would be looking to put it to work in the share market.

But where should you invest $10,000? Three top ASX shares that I would buy with these funds are listed below. Here’s why I like them:

Freedom Foods Group Ltd (ASX: FNP)

Freedom Foods is a growing food company with a focus on healthy eating. After several years of investing heavily in its business, the company now looks well-positioned for strong growth in the coming years. Especially given the increasing demand it is experiencing in key channels and its exposure to on trend categories such as dairy, nutritionals, and plant beverages. This was evident in the first half of FY 2020 when Freedom Foods delivered a 43.4% increase in sales and a 42.1% lift in operating net profit after tax.

Pushpay Holdings Group Ltd (ASX: PPH)

Another option to consider investing $10,000 into is Pushpay. It provides a donor management platform to the faith, not-for-profit, and education sectors. The company has worked hard over the last few years to carve out a leadership position in the sector and is now reaping the rewards. In FY 2020 the company grew its operating profits at an explosive rate. Pleasingly, thanks to increasing demand, its guidance for FY 2021 implies another doubling of profits. And given how it is still only scratching at the surface of its sizeable market opportunity, I believe there is plenty more to come from Pushpay over the next decade.

SEEK Limited (ASX: SEK)

A final share to consider buying with $10,000 is SEEK. While times are hard because of the pandemic, I think this job listings company would still be a great option due to its positive long term growth outlook. This is due to its international operations and particularly its China business. I believe the latter has the potential to underpin strong earnings growth over the next decade. So, with its shares down 20% from their high, now could be an opportune time to snap them up with a long term view.

More reading

• Got $2,500? I’d buy these 2 ASX shares in a heartbeat
• Which is the best ASX entertainment media share?
• The smartest shares to buy if you have $2,000
• 3 explosive ASX growth shares to buy
• 2 ASX stocks that could replace cash

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended Freedom Foods Group Limited and SEEK Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Where to invest $10,000 into ASX shares immediately appeared first on Motley Fool Australia.

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ASX shares are a great way to great your wealth with a small starting amount. You don’t need to have a huge amount of cash set aside like having a house deposit.

With everything that’s going on with the coronavirus it’s hard to say what the shorter-term outlook is for some ASX shares.

But there are some picks that I’d buy in a heartbeat:

ASX share 1: Pushpay Holdings Ltd (ASX: PPH)

Pushpay is electronic donation business. At the moment its client base is focused on large and medium US churches which are obviously huge sources donations each year. A large amount of those donations were in cash.

But now with the social distancing and restrictions, electronic donations very valuable to churches. Even if total giving reduces, it seems electronic giving will dramatically rise. It also helps that Pushpay offers a livestreaming option.

I think Pushpay is still an underappreciated ASX share by investors. Obviously the Pushpay share price has jumped recently. But I think FY21 alone looks very promising. The earnings before interest, tax, depreciation, amortisation and foreign currency (EBITDAF) is expected to just about double.

Pushpay is still expecting further strong revenue growth with expanding profit margins. It’s still targeting over 50% of the medium and large church segments which is an opportunity representing over US$1 billion in annual revenue. That’s a big, long-term growth runway. 

I’d buy it in a heartbeat because I think the next three to five years could be very promising.

Pick 2: Bubs Australia Ltd (ASX: BUB)

Bubs is another ASX share I’d be very happy to buy today. The growth it has generated over the past three years has been very impressive. I like how it has become a vertically integrated player with its own canning facility.

The infant formula business is consistently expanding its distribution netowrk. Its growth in China is of course a major part of the opportunity. The FY20 third quarter Chinese revenue rocketed 104% compared to the prior corresponding period.

Outside of China and Australia, its ‘other markets’ revenue rose by 20 times in the FY20 third quarter, with significant growth in Vietnam. This represented 12% of total sales. That’s very promising for the ASX share.

I was particularly pleased to see that Bubs generated positive cashflow of $2.3 million in the quarter. I think this is a great milestone. If Bubs remains cashflow positive then it’s a much safer bet.

Foolish takeaway

I think both of these ASX shares have great prospects. They’re one of the few shares to see acceleration of growth during this period, adding onto their already impressive outlooks. Both are seeing rising margins, so it’s hard to pick a favourite. I’d want to buy both!

More reading

• Where to invest $10,000 into ASX shares immediately
• The smartest shares to buy if you have $2,000
• 3 explosive ASX growth shares to buy
• 2 ASX stocks that could replace cash
• Where growth, income, and value investors can invest right now

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 BUBS AUST FPO. The Motley Fool Australia owns shares of and has recommended PUSHPAY FPO NZX. The Motley Fool Australia has recommended BUBS AUST FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Got $2,500? I’d buy these 2 ASX shares in a heartbeat appeared first on Motley Fool Australia.

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Fortunately in this low interest rate environment, there are a lot of dividend shares for investors to choose from on the Australian share market.

Three which I think would be good long term options are listed below. Here’s why I would buy them:

Commonwealth Bank of Australia (ASX: CBA)

The Commonwealth Bank share price has come under a lot of pressure this year due to concerns that it might experience a spike in bad debts from the pandemic. While this is a real possibility, based on how quickly Australia is reopening, I believe the provisions it has taken will be more than enough. In light of this, I am optimistic the worst is behind the bank and now could be a good time to invest. Especially given the generous dividend yield its shares offer. I estimate that it will pay a $3.70 per share dividend in FY 2021. This equates to a forward dividend yield of 6.3%.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

If you’re not in need of income immediately, then it could be worth considering a patient investment in this airport operator’s shares. Times are certainly hard for the airport operator, but it won’t be long until a growing number of travellers are passing through its terminals again. According to a recent note out of Goldman Sachs, it expects Sydney Airport to start recovering from the pandemic in the coming months. It believes this will allow it to pay a 29 cents per share distribution in FY 2021 and then a 37 cents per share distribution in FY 2022. This represents yields of 4.9% and 6.25%, respectively.

Vanguard Australian Shares High Yield ETF (ASX: VHY)

A final option for income investors to consider buying right now is the Vanguard Australian Shares High Yield ETF. I think this exchange traded fund is a quality option for income investors due to the diversity of its holdings. The fund provides investors with exposure to many of the highest yielding shares on the ASX through a single investment. This includes the banks, telcos, and mining giants. At present I estimate that its units offer a forward dividend yield of at least 5%.

More reading

• Fund managers have been buying these ASX shares
• ASX 200 jumped higher, rises more than 2%
• Here’s why these 3 ASX dividend shares are top income choices today
• These ASX 200 share prices were cut in half. Where are they now?
• Leading brokers name 3 ASX 200 shares to buy right now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why I would buy CBA and these ASX dividend shares appeared first on Motley Fool Australia.

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On Monday the S&P/ASX 200 Index (ASX: XJO) started the week in sensational form. The benchmark index jumped 2.15% to 5,615.6 points.

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

ASX 200 expected to push higher again.

It looks set to be another positive day of trade for the ASX 200. According to the latest SPI futures, the index is expected to open the day 47 points or 0.85% higher this morning. This is despite Wall Street and the UK being closed for public holidays. In Europe the DAX was on form and jumped 2.9% higher on reopening optimism.

Oil prices climb higher.

It could be a good day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO). According to Bloomberg, the WTI crude oil price has pushed 1.4% higher to US$33.72 a barrel and the Brent crude oil price is up 1.3% to US$35.58 a barrel. Traders appear optimistic that demand is picking up for oil as economies reopen.

Gold price drops lower.

Gold miners including Newcrest Mining Limited (ASX: NCM) and St Barbara Ltd (ASX: SBM) could come under pressure today after spot gold price dropped lower. According to CNBC, the spot gold price fell 0.5% to US$1,727.40 an ounce. This was driven by stimulus in Japan leading to an increase in risk appetite from investors.

Iron ore price softens.

Fortescue Metals Group Limited (ASX: FMG) and other iron ore producers will be on watch today after Chinese iron ore prices softened overnight. The price of the steel-making ingredient fell 1% in China, possibly due to profit taking after some strong gains in recent weeks. The London Metal Exchange was closed.

Qantas shares on watch.

The Qantas Airways Limited (ASX: QAN) share price will be one to watch today after a number of industry developments. The first is that airline giant Lufthansa has been bailed out by the German government. According to CNBC, the two parties have agreed on a US$9.8 billion rescue package. Elsewhere, Air New Zealand Limited (ASX: AIZ) provided a liquidity update this morning which revealed that it has burned through NZ$260 million of cash during the pandemic.

More reading

• CSL shares have underperformed the ASX 200 over the past month. What’s going on?
• ASX 200 jumped higher, rises more than 2%
• These are the latest ASX shares to be upgraded by brokers to buy
• 3 strong ASX 200 shares to buy for a retirement portfolio
• Top brokers name the latest ASX 200 stocks to sell today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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