Category: Stock Market

I am particularly interested in the ASX healthcare sector due to the growing number of high-quality companies that are now listed, many of which have seen strong share price growth over the past 5 years.

In addition, I believe the demand for healthcare services is only going to grow over the next decade due to an ageing global population and continuing advances in healthcare treatments and technology.

With that in mind, here are 3 of my top picks in the ASX healthcare space right now:

Ramsay Health Care Limited (ASX: RHC)

Over the past decade, global private hospital provider Ramsay has experienced strong revenue growth from its existing facilities, as well as growing through acquisitions and expanding into new markets. It has now achieved considerable size and scale, which therefore spreads its operating costs and provides it with a distinct competitive advantage in negotiations with health insurers.

Ramsay has been impacted by the ban on non-essential surgeries across the countries in which it operates. However, with elective surgeries beginning to recommence in Australia, and with other markets likely to soon follow, it may merge from its troubles faster than anticipated.

As one of the largest hospital providers in the world, with operations across 11 countries, I believe that Ramsay is well-positioned to capitalise on the growing need for healthcare services over the next decade.

Cochlear Limited (ASX: COH)

Cochlear has been significantly impacted by the coronavirus crisis as elective surgeries, such as those for cochlear implants, have been deferred across a number of countries in which it operates. This led to Cochlear raising $880 million from an institutional placement in late March.

However, with the Cochlear share price taking a significant hit over the past few months, and the hope that elective surgeries may soon commence across a number of its markets, I believe now could be a good buying opportunity.

As the proportion of the global population over the age of 65 continues to increase, I think the demand for hearing products and solutions over the next few decades will only rise.

ResMed Inc (ASX: RMD)

ResMed has evolved over the last 30 years to become one of the world’s leading sleep treatment companies. It is now a major US-based global company, employing more than 7,00 people worldwide.

The company’s healthcare devices and cloud-based software solutions target sleep apnea and other respiratory conditions. Its global scale and breadth now provide it with a distinct advantage over its competitors. The company recently recorded an impressive 47% increase in net income during the third quarter of FY 2020.

I believe that the strong demand for ResMed’s products is likely to continue over the next decade, driven by the largely untapped market of sleep apnea sufferers globally.

More reading

• The next ASX sector in a post COVID-19 earnings upgrade cycle
• Got $3,000 to invest? Here are 2 fantastic ASX 200 shares to buy right now
• 2 of the best ASX 200 healthcare shares to buy for the long term
• Leading brokers name 3 ASX shares to sell today
• Why CSR, Kogan, Premier Investments, & ResMed shares are storming higher

Phil Harpur owns shares of Cochlear Ltd. and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd., Ramsay Health Care Limited, and ResMed Inc. 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 3 ASX healthcare shares to buy for strong long-term growth appeared first on Motley Fool Australia.

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Many S&P/ASX 200 Index (ASX: XJO) dividend shares are on sale right now. Investors have been spooked by the recent bear market and the economic outlook remains a little cloudy.

However, that means share prices may be disconnected from the underlying value of many companies. In fact, an article in the Australian Financial Review indicates that retail investors were busy buying and selling in February and March.

Now, smart investors know when to hold and when to fold. A period of unprecedented volatility that smashed shares is not the time to fold.

Having said that, here’s one ASX 200 dividend share that could be in the buy zone today.

One ASX 200 dividend share to buy today

I like the look of BHP Group Ltd (ASX: BHP) right now. I think the Aussie large-cap has a lot going for it and could be in the buy zone.

BHP shares have slumped 19.11% lower so far this year. That’s a pretty big fall for a company of BHP’s size. The Aussie iron ore miner currently boasts a market capitalisation of $148 billion, which means when it moves, the ASX 200 moves.

Apart from the size factor, BHP is a solid ASX 200 dividend share. The mining group’s shares are yielding 6.73% right now, although I wouldn’t count on that being maintained.

The current environment is making companies wary of spending additional cash. While shareholders still want to be paid, maintaining business stability throughout the next 6 to 12 months is critical.

You may be wondering why you’d buy an ASX 200 dividend share that may slash its dividend. I think the key here is to remember that us Fools invest for the long-term.

The BHP share price has been hammered in 2020 but I think the fundamental environment looks OK. China’s economy is picking back up and we could see a boost to Aussie infrastructure to help mitigate the impacts of a likely recession.

That means BHP could be an absolute steal for its current $31.67 per share valuation.

More reading

• What to watch on the ASX 200 next week
• Are rental yields better than dividend yields?
• These were the best performing ASX 200 shares last week
• Buy these ASX 200 shares for your kids today
• Why a buy and hold strategy for ASX shares is best

Motley Fool contributor Ken Hall 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 BHP is an ASX 200 dividend share to buy today appeared first on Motley Fool Australia.

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Last week saw a large 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:

CSL Limited (ASX: CSL)

According to a note out of UBS, its analysts have retained their buy rating and $342.00 price target on this biotherapeutics company’s shares. The broker remains positive on CSL despite reducing its earnings forecasts slightly to account for a decline in plasma collections between April and June because of the pandemic. Outside this, the broker doesn’t expect a meaningful decline in demand for its therapies during the pandemic due their life-saving nature. I agree with UBS and believe it would be a top option for investors.

Sealink Travel Group Ltd (ASX: SLK)

Analysts at Ord Minnett have retained their buy rating and $5.25 price target on this travel company’s shares. According to the note, the broker believes that SeaLink is well positioned to benefit from the recovery in domestic travel. And although it has downgraded its earnings estimates materially for the next couple of years, it believes these could be upgraded in the coming months as Australia opens up again. While I agree with Ord Minnett, I would like to see how the reopening of Australia goes before investing.  

Xero Limited (ASX: XRO)

A note out of Morgan Stanley reveals that its analysts have retained their overweight rating and $80.00 price target on this business and accounting software provider’s shares. It was pleased with Xero’s strong sales and EBITDA growth in FY 2020. And while it acknowledges that subscriber additions could soften during the pandemic, it remains upbeat on the future and believes the recent share price weakness is a buying opportunity for investors. I agree and feel Xero is a great long term investment option.

More reading

• How to earn $50,000 of passive income with ASX shares
• Why a buy and hold strategy for ASX shares is best
• Should you invest in super or your ASX share portfolio?
• ASX 200 finishes up 1.4%, gold miner share prices surge
• Brokers name 3 ASX 200 shares to buy today

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 CSL Ltd. and Xero. 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 Top brokers name 3 ASX shares to buy next week appeared first on Motley Fool Australia.

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If I had $50,000 to invest I’d definitely want to consider investing it. I’d think about putting all of it into exchange-traded funds (ETFs).

ETFs can be great way to invest in a diverse group of shares. Some of the best ones have very low fees. You can’t go wrong with a choice like iShares S&P 500 ETF (ASX: IVV).

But I like the idea of going for slightly different ETFs. I’d want ones that provide something a bit different to the typical American or Australian focused ones.

Here are three ETFs I’d invest $50,000 into:

iShares S&P Global 100 (ASX: IOO) – $25,000 

I think this might be one of the best way to invest in global shares. The US share market has plenty of high quality of businesses, many of the best in the world. But not every great business gets included in those American ETFs.

This offering by Blackrock’s iShares invests in 100 of the largest across the world. Yes, you get exposure to Microsoft, Alphabet, Amazon and so on. But America may not always have the best large caps to own. European shares like Nestle, Novartis, LVMH, Siemens and SAP could be worth holding. Asian shares like Samsung, Toyota and Sony could also be worth holding.

Power often gets consolidated at the top, this investment will mean you’re always invested in those giants from across the world, not just from one region.

Betashares FTSE 100 ETF (ASX: F100) – $15,000 

If you go for this ETF you’ll be investing in plenty of global businesses that just happen to be listed on the London Stock Exchange. I think the largest shares are pretty defensive against the coronavirus impacts.

There are pharmaceuticals (Astrazeneca and GlaxoSmithKline), alcohol (Diageo) and consumer products (Unilever and Reckitt Benckiser), there are also shares from industries like mining (Rio Tinto and BHP), electricity distribution (National Grid), a telco (Vodafone) and a supermarket (Tesco).

One of the main reasons I’m attracted to this ETF is because you get exposure to a share market that is somewhat similar to Australia’s and very different in other ways. At the end of April 200 this BetaShares offering had a trailing dividend yield of almost 6%, though this will probably reduce if there are more dividend cuts.

Vanguard FTSE Asia ex Japan Shares Index ETF (ASX: VAE) – $10,000 

Asia is home to a number of very promising businesses that are hard to get exposure to through most other types of investments. This ETF is a good way to get all that exposure through a single investment. I’m talking about shares like Alibaba, Tencent, Samsung, Ping An Insurance and Taiwan Semiconductor Manufacturing.

It’s good to be invested in the Asian region. Particularly places like China, Hong Kong, Taiwan and South Korea. Those countries were seeing good middle class wealth growth at a nice pace before the coronavirus came along.

On the numbers side of things, it’s attractive for several different reasons. It has over 1,200 holdings, a dividend yield of 3%, a p/e ratio of 12.3x and a return on equity (ROE) of 14.75%. 

Foolish takeaway

I’d love to invest in each of these ETFs right now, particularly due to the lower share prices in the current environment. Investing this way takes much less effort than going for individual shares. 

More reading

• ASX shares can help millennials retire before their parents
• Got $5,000 to spend? Here are 5 ASX shares you can buy today
• 2 ETFs for easy investing and good returns
• How to build good wealth with small investments
• How to make a $1 million share portfolio by investing $1,000 a month

Motley Fool contributor Tristan Harrison 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.

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Last week the S&P/ASX 200 Index (ASX: XJO) overcame some tough days to finish the week in the black. The benchmark index recorded a 0.25% weekly gain to end the period at 5404.8 points.

Next week looks likely to be another eventful one for Australian investors. Here are a few things to watch:

Wall Street ends the week positively.

The Australian share market looks likely to start the week on a positive note after U.S. markets pushed higher on Friday night. The Dow Jones rose 0.25%, the S%P 500 climbed 0.4%, and the Nasdaq index jumped 0.8% higher. The latest SPI futures contracts are pointing to the ASX 200 index rising 32 points at the open on Monday.

TechnologyOne half year results.

The TechnologyOne Ltd (ASX: TNE) share price will be the focus of investor attention when it releases its half year results on Tuesday. Expectations certainly are high for the growing enterprise software company. Last week TechnologyOne’s shares hit a record high of $10.26 in anticipation of strong profit growth. Its guidance for the full year will be equally important given the premium of 50x estimated forward earnings that its shares are trading at.

Aristocrat Leisure half year update.

On Thursday the Aristocrat Leisure Limited (ASX: ALL) share price will be one to watch when it reports its half year results. The gaming technology company is likely to reveal the extent of the impact that the pandemic has had on its operations. I’ll be interested to see how its growing Digital operations are performing given lockdowns and casino closures. The company has already advised that no interim dividend will be paid.  

Sydney Airport (virtual) AGM.

On Friday Sydney Airport Holdings Pty Ltd (ASX: SYD) will be holding its virtual annual general meeting. The airport operator is likely to give an update on current trading conditions and its expectations for the coming months as lockdowns and travel restrictions ease.

Returns as of 7/4/2020

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.

More reading

• Are rental yields better than dividend yields?
• These were the best performing ASX 200 shares last week
• Buy these ASX 200 shares for your kids today
• 2 ASX shares for a first-time investor
• ASX 200 finishes up 1.4%, gold miner share prices surge

The post What to watch on the ASX 200 next week appeared first on Motley Fool Australia.

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