Category: Stock Market

It was a mixed year for ASX Real Estate Investment Trusts (REITs) in FY24, with some names missing the board, but others like Goodman Group (ASX: GMG) and Scentre Group (ASX: SCG) showing considerable strength.

According to my colleague Mitch, the outlook for ASX REITs is backed by a strong residential property market. And according to Macquarie, the picture could be even brighter than we think.

Analysts at the investment bank issued a recommendation for investors to consider overweight positions in ASX REITs this week.

This comes as part of a strategic shift in response to anticipated changes in the economic cycle and potential interest rate cuts. Let’s take a look at what this means.

Macquarie bullish on ASX REITs

Macquarie says ASX REITs could be at a crucial inflection point in the market cycle, noting that global asset managers are also bullish on the sector.

“This is a key inflection point in the market cycle”, the broker said, according to The Australian Financial Review.

In the past when sentiment was already very bullish, forward returns were weak and led by defensives. When the cycle shifts to a slowdown, the odds of defensives outperforming likewise start to rise.

According to Macquarie, this phase typically yields positive but lower returns for stocks. This could warrant a move towards more defensive investments like healthcare and real estate.

Despite concerns over potential rate hikes from the Reserve Bank of Australia (RBA), global trends suggest that major central banks – including the US Federal Reserve – might soon cut rates.

This outlook supports a particularly favourable environment for ASX REITs, the broker says. Due to their attractive yields, these assets tend to perform well when interest rates decline.

Overweight recommendation on ASX REITs

In light of these insights, Macquarie has upgraded its position on the ASX real estate sector. It recommends investors to be ‘overweight’ with exposure to the domain.

The recommendation is based on the RBA’s potential moves. But, it says the potential for a stronger Australian dollar could also mitigate the need for additional rate hikes by the RBA.

We expected a hawkish shift from the RBA, and it has happened. With the shift to slowdown and global banks easing, there is reason to think the RBA will hold so as not to risk pushing the [AUD] up too far.

Macquarie’s shift towards REITs is part of a broader strategic adjustment. The bank is reducing exposure to sectors more vulnerable to economic downturns, such as banking and mining.

It has increased its exposure to defensive healthcare stocks like ResMed Ltd (ASX: RMD) and CSL Ltd (ASX: CSL) instead.

Foolish takeaway

Macquarie’s recommendation to overweight ASX REITs is driven by its insights into the shifting economic cycle and potential interest rate cuts.

The performance of REITs like Goodman Group and Scentre Group set the bedrock for FY25. As always, it’s imperative to conduct your own due diligence.

The post Why Macquarie says go overweight on ASX REITs now! appeared first on The Motley Fool Australia.

More reading

• Shares vs. property: Which stocks and suburbs delivered the best growth in FY24?
• The best ASX 200 share of each market sector in FY24
• Here are the best ASX REITS of FY24 (a $66 billion company grew the most)
• Shares vs. property: Which delivered the best growth in FY24?
• 4 excellent ASX 200 blue chip shares to supercharge your investment portfolio

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goodman Group, Macquarie Group, and ResMed. The Motley Fool Australia has positions in and has recommended Macquarie Group and ResMed. The Motley Fool Australia has recommended CSL and Goodman Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Telstra Group Ltd (ASX: TLS) stock is regularly viewed as an appealing ASX dividend share to own. This could be a compelling time to consider the company for its passive income and dividend potential.

Businesses that are able to deliver growing earnings can achieve both a rising share price and afford growing dividend payments.

The latest news from Telstra is exciting for shareholders because of what it could mean for revenue, net profit after tax (NPAT) and the potential payouts.

The company announced it would increase the prices for most pre-paid and postpaid mobile plans by between $2 and $4 per month. Telstra justified this decision by saying it needs to continue to “invest to manage the technology evolution and continued strong customer demand on its mobile network.”

The telco noted traffic on Telstra’s mobile network is growing by approximately 20% per annum.

Why this makes Telstra stock appealing

The Australian reported that Goldman Sachs analyst Kane Hannan reiterated his buy rating on Telstra stock after seeing the price increase news. The analyst said this, combined with the recent Optus price increase, suggests that the telco market remains “rational”.

Goldman Sachs reportedly said the Telstra mobile earnings growth “remains strong”, thanks to subscriber and average revenue per user (ARPU) growth.

Hannan said there are flexibility benefits to the plans no longer being linked to CPI inflation because the core plan prices could experience price rises faster than CPI, while the price-sensitive starter plans can avoid price increases if Telstra decides to do so.

Goldman Sachs now thinks Telstra will increase its profit guidance range from $8.5 billion to $8.7 billion, up from between $8.4 billion to $8.7 billion.

Meanwhile, Macquarie decided to increase its dividend forecast for Telstra stock to 9.5 cents for the first half of FY25 thanks to the better-than-expected mobile price rise.

How big is the dividend yield?

If Telstra were to pay 9.5 cents per share for the interim and final dividends in FY25, this would translate into an annualised payout of 19 cents per share.

At the current Telstra stock price, this would translate into a fully franked dividend yield of around 5% and a grossed-up dividend yield of approximately 7%.

As a starting yield, I think that’s a very good level of income, and there’s potential for ongoing dividend growth if Telstra’s mobile subscriber numbers keep rising. I believe the telco can deliver pleasing shareholder returns in the medium term.

The post Telstra stock pays a massive 7% dividend, and now could be a great time to buy appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Catalyst Metals, Imugene, Red 5, and Telstra shares are pushing higher today
• Top brokers name 3 ASX shares to buy today
• Is the Telstra share price good value in July?
• 5 things to watch on the ASX 200 on Wednesday

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 positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Here at the Motley Fool, we normally cover the movements and trends of the Australian share market and those of ASX shares. But in today’s modern world, ASX investors are increasingly looking beyond our shores in the search for the best investments available. And most of the world’s best investments that aren’t ASX shares are arguably found on the US markets.

The US markets are home to what are indisputably the best companies in the world. Coca-Cola, American Express, Berkshire Hathaway, Netflix, Mastercard, Apple, NVIDIA, Amazon… these world-dominating companies are all US shares, and call the American markets home.

So it makes sense that ASX investors might want a slice of come of these businesses. After all, while ASX investors are justifiably fond of the likes of Westpac Banking Corp (ASX: WBC), Telstra Group Ltd (ASX: TLS) and Coles Group Ltd (ASX: COL), these ASX shares can’t hold a candle to the names above when it comes to global dominance in their fields.

But many Australian investors might want to know which US shares are being bought by Australian investors in particular. Luckily, financial services and brokerage company eToro has provided some data on this subject.

The ten most popular US shares for ASX investors

Here are the ten most widely-held US shares on eToro’s platform over the quarter ended 30 June 2024:

1. Tesla Inc (NASDAQ: TSLA)
2. NVIDIA Corporation (NASDAQ: NVDA)
3. Apple Inc (NASDAQ: AAPL)
4. Amazon.com Inc (NASDAQ: AMZN)
5. Microsoft Corporation (NASDAQ: MSFT)
6. Meta Platforms Inc (NASDAQ: META)
7. Nio Inc (NYSE: NIO)
8. Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL)
9. GameStop Corp (NYSE: GME)
10. Alibaba Group Holding (NYSE: BABA)

These ten US shares are unchanged from the previous quarter’s figures. However, their positions in this top ten list have changed. Nvidia replaced Apple in the number two spot, while Nio was usurped by Meta in number six. Gamestop also bumped off Alibaba for the ninth position.

Meme stocks and tech giants

So it’s not too surprising to see these companies take out the top US share positions for ASX investors. Tesla, Nvidia, Apple, Amazon, Microsoft, Meta and Alphabet (Google and YouTube owner) are all household names with products most of us probably use every day.

These US shares are well-known for having delivered massive windfalls to their investors in the past, which many ASX investors probably (and reasonably) assume will continue into the future, given their ongoing dominance.

Gamestop, Nio and Alibaba are more interesting though.

Both Gamestop and Nio have made names for themselves as ‘meme stocks’. These shares are subject to huge swings in volatility on a regular basis, and have become popular ‘swing trades’.

Chinese e-commerce giant Alibaba is one of the largest companies in China, but it has lost more than 75% of its value over the past four years or so. Consequently, some ASX investors may be betting on a big recovery.

But those are the US shares ASX investors have been buying over the past three months. Let’s see if it’s the same names that pop up next quarter.

The post Which US shares are ASX investors buying in 2024? appeared first on The Motley Fool Australia.

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Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. American Express is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in Alphabet, Amazon, American Express, Apple, Berkshire Hathaway, Coca-Cola, Mastercard, Meta Platforms, Microsoft, Telstra Group, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Mastercard, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group and has recommended the following options: long January 2025 $370 calls on Mastercard, long January 2026 $395 calls on Microsoft, short January 2025 $380 calls on Mastercard, and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended Coles Group and Telstra Group. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Mastercard, Meta Platforms, Microsoft, Netflix, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• 2 ASX All Ords shares (and one ETF) smashing new highs while the market sinks
• Why Catalyst Metals, Imugene, Red 5, and Telstra shares are pushing higher today
• Can ASX 200 investors expect a Fed interest rate cut in September?
• Top brokers name 3 ASX shares to buy today
• Guess which ASX uranium stock is rocketing 80% on ‘world class grades’

Motley Fool contributor Sebastian Bowen has positions in Telstra Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Megaport and Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management Group, Steadfast Group, and Telstra Group. The Motley Fool Australia has recommended Jb Hi-Fi and Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you want some income options outside the status quo of Commonwealth Bank of Australia (ASX: CBA) or Westpac Banking Corp (ASX: WBC), then it could be worth looking at the two ASX dividend stocks listed below.

Here’s why brokers think they could be in the buy zone today:

South32 Ltd (ASX: S32)

If you don’t mind investing in the mining sector, then South32 could be an ASX dividend stock to buy right now.

That’s the view of analysts at Goldman Sachs, which believe that the diversified miner is undervalued. This is due largely to the favourable outlook for copper, aluminium, zinc, and met coal prices. It explains:

GS are bullish copper, aluminium, zinc and met coal (~65% of S32 NTM EBITDA) in CY24. Together with lower capex, working cap unwind and higher production, we forecast ~US$550mn of FCF in the June H. On our forecasts, S32 is trading on a FCF yield of 9% in FY25 (10% at spot). […] Attractive valuation: although trading at ~1xNAV (A$3.77/sh), on near term multiples S32 is trading on an attractive NTM EV/EBITDA multiple of ~4.5x vs. the global sector average of 5.7x.

Goldman also believes that the South32 dividend is about to jump. It is forecasting fully franked dividends per share of 4 US cents in FY 2024, then 12 US cents in FY 2025 and 18 US cents in FY 2026. Based on its latest share price of $3.64 and current exchange rates, this will mean dividend yields of 1.7%, 4.9%, and 7.3%, respectively.

Goldman has a buy rating and $4.30 price target on South32’s shares.

SRG Global Ltd (ASX: SRG)

Bell Potter thinks that SRG Global could be a top ASX dividend stock to buy this month. It has a buy rating and $1.30 price target on its shares.

SRG Global is a diversified industrial services group that provides multidisciplinary construction, maintenance, production drilling and geotechnical services.

Bell Potter is positive on the company due to its belief that SRG Global will be a big winner from construction activity and accelerating growth in iron ore and gold production volumes. It explains:

SRG’s short-to-medium term outlook is reinforced by Government-stimulated construction activity in the Infrastructure and Non-Residential sectors and increased development and sustaining capital expenditures in the Resources industry. The resulting expansion in infrastructure bases across these sectors will likely support increased demand for asset care and maintenance in the medium to long-term. We anticipate Mining Services will be a beneficiary of accelerating growth in iron ore and gold production volumes over the next five years.

In respect to income, Bell Potter is forecasting fully franked dividends of 4.7 cents in FY 2024 and then 6.7 cents in FY 2025. Based on its current share price of 89 cents, this will mean dividend yields of 5.3% and 7.5%, respectively.

The post Forget Westpac and buy these ASX dividend stocks appeared first on The Motley Fool Australia.

More reading

• South32 shares whipsawed in FY24. Here’s the FY25 outlook
• 3 strong ASX dividend stocks for income investors to buy
• 3 ASX income shares to buy this month
• Top brokers name 3 ASX shares to buy next week
• 2 ASX penny stocks that pay dividends

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Yancoal Australia Ltd (ASX: YAL) share price just closed out a smashing 2024 financial year.

Shares in the All Ordinaries Index (ASX: XAO) coal stock finished off FY 2023 trading at $4.58. Shares closed on 28 June, the last trading day of FY 2024, changing hands for $6.62 apiece.

That saw the Yancoal share price up a whopping 44.5% over the 12 months.

For some context, the All Ords gained 8.3% over this same time.

And this stellar performance doesn’t even include the outsized dividends the coal miner paid out. In FY 2024 eligible investors will have received a total of 69.5 cents a share in fully franked dividends.

If we add those back in, the accumulated value of the Yancoal share price leapt 59.7% over the financial year just past.

Why did the ASX coal stock have such a strong year?

Yancoal has done a good job keeping a lid on costs while increasing production, even as it focused on its mine recovery plans.

In fact, Q2 FY 2024 saw the miner achieve its highest rate of quarterly production in three years, offering another boost to the Yancoal share price.

Over the full calendar year of 2023 (which includes H1 FY 2024), Yancoal reported $7.8 billion in revenue. Operating earnings before interest, taxes, depreciation and amortisation (EBITDA) came in at $3.5 billion. This drove an eye-catching $1.8 billion in after-tax profit.

As for Q3 FY 2024, the miner continued to generate strong cash flows. Yancoal held $1.66 billion in cash at the end of March. That was before paying out $429 million for the final dividend on 30 April.

With that picture in mind, what can investors expect from the Yancoal share price in FY 2025?

What’s ahead for the Yancoal share price in FY 2025?

Much of the performance of the Yancoal share price will be determined by the price the miner receives for its thermal and coking coal.

In 2023, the company’s realised price came out to AU$180 per tonne.

That’s roughly double the cash operating costs of $80 to $97 per tonne that Yancoal is targeting in H1 FY 2025. Cash operating costs were AU$96 per tonne in calendar year 2023.

Looking to the year ahead, back in April, CEO David Moult said:

We see Yancoal’s large-scale, low-cost coal production profile as well suited to the current coal market conditions. Having no interest-bearing loans, a large net cash position and robust operating margins provides us with the capacity to act should suitable growth opportunities arise.

The miner’s 2024 calendar year guidance is for 35 million to 39 million tonnes of attributable saleable production.

On 30 May, at the annual general meeting, the miner reported:

Output will vary quarter-to-quarter due to mine plan sequences, longwall moves and planned maintenance, and there will be a second half weighting to the production profile.

We aim to bring the cash operating costs per tonne down from the full-year 2023 level and are focused on output given the direct relationship between the volumes we produce and the per tonne cash operating costs we report.

Halfway through week two of FY 2025, the Yancoal share price stands at $7.27. That’s up 9.8% so far in the new financial year.

The post Up 45% in FY 2024, can the Yancoal share price keep burning bright in FY 2025? appeared first on The Motley Fool Australia.

More reading

• These 5 ASX dividend shares had the highest yields in FY24
• ASX 200 coal stocks in focus as wind power fades to a breeze
• Here’s how the ASX 200 market sectors stacked up last week
• Broker sees Whitehaven shares and one other coal stock as top buys
• A 10% dividend yield! Is this ASX All Ords stock a brilliant bargain?

Motley Fool contributor Bernd Struben 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 Scott Phillips.

The S&P 500 Index (SP: .INX) and Nasdaq Composite Index (NASDAQ: .IXIC) reached new all-time highs on Wall Street last night. It should be a cause for celebration. If only the record weren’t accompanied by a more sinister number cracking into uncharted territory, too.

Warren Buffett and I both know investing is for the long term, and history has shown that more record highs follow record highs (eventually). And yet, the greatest of all time (GOAT) investor still takes heed of a market consumed by greed.

As it turns out, Warren’s own indicator of an overvalued market also reached an all-time high overnight.

Warren Buffett’s valuation ratio

Roughly 23 years ago, Warren Buffett explained what he considered to be “the best single measure” of valuations, whether overvalued or undervalued. While the world’s tenth richest person has since walked back the importance of the measure, it remains a popular tool among investors.

The metric, aptly known as the ‘Buffett Indicator’, measures the total market capitalisation of US stocks divided by the country’s gross domestic product (GDP). Essentially, it’s a ratio of the valuation investors are willing to ascribe to public companies versus the actual size of the country’s economy.

As shown in the chart above, the Warren Buffett Indicator is at a historical high of 195%. Before this rally, the previous high was 194.8%, set in November 2021. The S&P 500 began falling a month later, resulting in a 25% crash over the following nine months.

Why is it at the highest point in its history?

There is a dichotomy between the economy and the stock market, especially in the United States.

On the one hand, the United States economy is softening as interest rates eat into spending. At the same time, there’s a seemingly insatiable demand for all things artificial intelligence (AI).

As a result, stock market indices are being pushed higher by a small handful of beneficiaries of the AI appetite — Nvidia Corp (NASDAQ: NVDA), Microsoft Corp (NASDAQ: MSFT), etc. These same companies constitute a large portion of the entire US stock market, as shown above.

The narrow concentration of growth could explain the record disconnect between the overall stock market and the United States economy.

What does it mean for investors?

As a strong critic of ‘timing the market,’ Warren Buffett doesn’t dump his portfolio when the overall market looks frothy. Rather, he usually moves incoming cash from his investments in Berkshire Hathaway Inc. (NYSE: BRK) into U.S. Treasury Bills until he discovers an opportunity.

An ‘overvalued’ market hasn’t stopped the Oracle from Omaha from finding stocks to buy. Filings show Buffett bought more shares in oil and gas giant Occidental Petroleum Corp (NYSE: OXY) last month. A company whose shares are only up 1.6% year-to-date.

It shows that the ‘market’ can be ‘expensive’, but a good investor can keep hunting. Instead of falling victim to FOMO (fear of missing out), Warren Buffett is zigging when others are zagging.

The post This Warren Buffett metric is at a never-before-seen high! What does it mean? appeared first on The Motley Fool Australia.

More reading

• Up 45% in FY 2024, can the Yancoal share price keep burning bright in FY 2025?
• Have you heard of this ASX robotics stock? It’s up 75% in 3 days!
• 2 ASX All Ords shares (and one ETF) smashing new highs while the market sinks
• The AML3D share price has crashed 26% this week. Time to pounce on the ASX defence stock?
• Why Catalyst Metals, Imugene, Red 5, and Telstra shares are pushing higher today

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 positions in and has recommended Microsoft and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Occidental Petroleum and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Microsoft and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The market is having a bit of a subdued session on Wednesday, but that isn’t stopping one ASX robotics stock from storming higher again.

At the time of writing, the FBR Ltd (ASX: FBR) share price is up 19% to 5.6 cents.

This means that its shares are now up 75% since the end of last week.

What is this ASX robotics stock?

FBR, which was previously known as Fastbrick Robotics, designs, develops, and builds dynamically stabilised robots to address global needs in a safer, more efficient and more sustainable way.

It notes that these robots are designed to work outdoors using the company’s core Dynamic Stabilisation Technology (DST).

The first application of DST for FBR is the Hadrian X robot. It is a bricklaying robot that “builds structural walls faster, safer, more accurately and with less wastage than traditional manual methods.”

The company is now attempting to follow in Chris Hemsworth’s steps by cracking America.

In May, FBR revealed that a Hadrian X robot had departed the port of Fremantle, Western Australia, on a ship bound for Florida. This is to conduct FBR’s first international demonstration program

What’s the latest?

On Monday, the ASX robotics stock revealed that its Hadrian X robot has now arrived on American shores.

Once unloaded from the ship and cleared of customs, the robot will be transported to a facility in Fort Myers, Florida.

After which, it will undertake Site Acceptance Testing at the facility. This consists of a test build outdoors with the same requirements as its previously completed Factory Acceptance Testing, plus the inclusion of some bond beam blocks and an inspection from an independent structural engineer to confirm that the constructed walls of the test build are consistent with the design and meet applicable building standards.

Completion of the Site Acceptance Testing will trigger a US$600,000 payment by CRH Ventures to FBR. It will also trigger the commencement of the Demonstration Program.

Demonstration Program

This Demonstration Program requires FBR to construct the external walls of between five and ten single-storey houses utilising Hadrian X.

If that is successful, it could be good news for the ASX robotics stock. The company has an agreement in place with CRH Ventures

It has granted CRH Ventures an exclusive option to trigger the commencement of a joint venture for the supply of Wall as a Service using Hadrian X construction robots in the United States. After which, the joint venture will issue a binding but conditional purchase order for 20 Hadrian X units at US$2 million each plus applicable sales tax. It then has a pathway in place to take the total to 300 units eventually.

But there’s a lot of work to be done until that happens. So, investors may want to be patient and wait for further news before considering an investment in this speculative stock.

The post Have you heard of this ASX robotics stock? It’s up 75% in 3 days! appeared first on The Motley Fool Australia.

More reading

• 2 ASX All Ords shares (and one ETF) smashing new highs while the market sinks
• The AML3D share price has crashed 26% this week. Time to pounce on the ASX defence stock?
• Why Catalyst Metals, Imugene, Red 5, and Telstra shares are pushing higher today
• Prediction: 2 US stocks that will be worth more than Nvidia 5 years from now
• Is it too late to buy Zip shares at their 2-year highs?

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 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 Scott Phillips.

It’s been a fairly horrible day for the All Ordinaries Index (ASX: XAO) and most ASX All Ords shares so far this Wednesday. At the time of writing, the All Ordinaries has lost a hefty 0.34% of its value, and is back down to around 8,050 points.

However, despite the broader market’s bad mood today, a few ASX All Ords shares are still breaking away to record gains.

In fact, three have just smashed new 52-week highs. Well, two All Ords shares and one exchange-traded fund (ETF). Let’s check them out.

2 ASX All Ords shares (and one ETF) clocking new highs this Wednesday

Steadfast Group Ltd (ASX: SDF)

First up, we have insurance stock Steadfast. Steadfast shares have gained a healthy 1.91% so far today and are up to $6.41 a share at the time of writing. Not only is that a new 52-week high for this insurance stock, but a new all-time record high. And there’s still plenty of time left today for the price to go even higher.

This push is just the latest uptick for Steadfast, which has been on a tear for a few weeks now. Back on 21 June, the company gave investors an update regarding its expectations for the 2024 financial year. Steadfast upgraded its guidance for the 23 months ended 30 June 2024.

It previously told ASX All Ords investors to expect an underlying net profit after tax of between $290 million and $300 million. But last month, it increased this expected range to between $298 million and $303 million.

Investors have been flocking to Steadfast shares ever since, with the company now up a healthy 16.7% over the past month.

Emeco Holdings Ltd (ASX: EHL)

Next up, we have mining equipment company Emeco. Emeco shares are currently flat at 79 cents apiece. However, earlier today, they rose to 80 cents, a new 52-week high for this ASX All Ords stock.

Again, there hasn’t been any fresh news out of Emeco this Wednesday. In fact, we haven’t heard from this company with any price-sensitive news for a while now. But Emeco has been rising steadily ever since its last earnings report back in February.

Back then, this ASX All Ords stock reported a 21% rise in operating earnings before interest, tax, depreciation and amortisation (EBITDA) for the six months to 31 December to $137 million. Operating net profits after tax also rose by 69% over the prior corresponding period to $51 million.

Emeco shares have risen 19.7% over the past six months, so today’s new 52-week high may be a byproduct of this increased optimism.

iShares Asia 50 ETF (ASX: IAA)

Finally, let’s talk about the Shares Asia 50 ETF. IAA units are currently enjoying a 0.23% lift to $103.82 each. That comes after this ASX All Ords ETF clocked a new 52-week high of $105 soon after the market opened this morning.

This ASX ETF holds a portfolio of underlying shares representing 50 of the largest companies listed on Asian markets, including China, Taiwan, South Korea, and Singapore. Its holdings include Taiwan Semiconductor Manufacturing Company, Samsung, and Tencent.

When an ETF rises in value, it’s normally due to the share prices of its underlying holdings appreciating. Indeed, we see that many of its top holdings have had a stellar month. Taiwan Semiconductor shares alone have gained more than 17% over the past month. Samsung has also done well, up 15.5% since this time last month.

So, it’s no surprise that this ASX All Ords ETF is also succeeding.

The post 2 ASX All Ords shares (and one ETF) smashing new highs while the market sinks appeared first on The Motley Fool Australia.

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• Guess which 2 ASX All Ordinaries shares were the best and worst performers of FY24?
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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. has positions in and has recommended Taiwan Semiconductor Manufacturing and Tencent. The Motley Fool Australia has positions in and has recommended Steadfast Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The AML3D Ltd (ASX: AL3) share price has been on quite a rollercoaster over the past six trading days.

And that’s no hyperbole.

Here’s how the AML3D share price has moved as of last Wednesday:

• On 3 July shares closed up 37.8%
• On 4 July shares closed up 25.9%
• On 5 July shares closed up 26.5%
• On 8 July shares closed down 14.0%
• On 9 July shares closed down 21.6%

As for today, shares in the ASX defence stock are once more tearing higher, up 17.2% at 17 cents apiece.

Now that sees the stock up 234% over 12 months.

But it still leaves the AML3D share price down 26.1% since Monday’s open.

Time to pounce?

What’s been lifting the AML3D share price?

If you’re not familiar with the company, the ASX microcap stock is engaged in the design and construction of 3D parts using metal additive manufacturing technology, with a focus on the defence industry.

And the AML3D share price has been enjoying a strong run following a series of new contracts.

Back on 16 August, the company signed a contract valued at more than $2 million with BlueForge Alliance to develop and metal 3D print a replacement component used in United States Navy submarines.

And the new contract announcements have continued apace.

On 1 May, the company reported inking a $350,000 deal with the Australian government for a six-part nozzle assembly in an aerospace defence project.

On 20 May, AML3D announced another deal linked to the US Navy involving the lease of two more of its ARCEMY metal 3D printing systems with option to purchase. That deal has an initial value of $700,000. The AML3D share price closed up 17.9% on the day of the announcement.

Commenting on that deal at the time, AML3D CEO Sean Ebert said it “illustrates how important our advanced manufacturing technology is to the US Defence sector”.

He added:

AML3D ARCEMY systems can produce higher quality components, faster and with less waste than traditional manufacturing which is driving demand from the US Navy and the wider US Navy submarine industrial base supply chain.

Price query

Today the company responded to a 5 July price query from the ASX regarding the soaring AML3D share price and surge in trading volume last week.

The ASX had questions about AML3D’s announcement on 2 July when the company reported on a new $1.1 million sale of its ARCEMY system to US Navy supplies Laser Welding Solutions.

AML3D replied to the ASX query about the announcement, stating:

Not only was the ARCEMY System sale a material sale for the company, but the election to purchase the previously leased system was directly related to previous announcements on 20 September 2023 and 20 May 2024.

Is the AML3D share price good value now?

The past few days of selling were likely driven by some healthy profit-taking after the huge run higher in the AML3D share price.

Today, it appears that speculative bargain hunters are back in the game, driving shares higher once more.

With the share price still down 26% since Monday’s open, it’s quite possible investor enthusiasm could send it back to Monday’s levels, or higher, in the days ahead. Though that’s far from guaranteed.

Longer term, the global defence sector is expected to continue growing strongly amid ongoing and rising tensions around the world.

If AML3D can continue to secure a foothold in that multi-billion-dollar industry with additional and continuing defence contracts, I expect shareholders to be amply rewarded.

The post The AML3D share price has crashed 26% this week. Time to pounce on the ASX defence stock? appeared first on The Motley Fool Australia.

More reading

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• AML3D share price surges another 38% today! What’s going on?
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Motley Fool contributor Bernd Struben 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 Scott Phillips.