Category: Stock Market

Pilbara Minerals Ltd (ASX: PLS) shares have been sold off over the last 12 months.

During this time, the lithium miner’s shares have crashed 42% and now trade at $3.00.

Are Pilbara Minerals shares in the buy zone?

While it could be tempting to jump in and snap up the company’s shares after such a sizeable decline, one leading broker thinks investors should hold fire for the time being.

According to a note out of Bell Potter, its analysts have reaffirmed their hold rating and trimmed their price target to $3.40 (from $3.60).

While this implies potential upside of 13% for investors from current levels, the broker doesn’t appear to believe this offers a good enough return to warrant a buy rating. Particularly given “weak near-term lithium market sentiment.”

What is the broker saying?

Bell Potter has been busy updating its lithium price forecasts to reflect weaker than expected demand. This has resulted in the broker cutting its earnings estimates for Pilbara Minerals. However, it remains positive on the long term. It said:

We have updated our lithium price outlook on a slower than anticipated price recovery due to short-term demand weakness and supply dynamics. We maintain a strong EV-led long term market outlook, with prices supported by delayed investment in new sources of lithium supply. For FY25, we estimate SC6% prices to average US$1,200/t (previously US$1,400/t) and lithium carbonate of US$16,500/t (previously US$20,000/t). Concurrently, we have marked-to-market our June 2024 quarter SC6% price (US$1,170/t, 17% higher than expected) and A$/US$ FX rate (US$0.66/A$, 1% higher than expected). EPS changes in this report are: FY24 unchanged; FY25 -19%; and FY26 -2%.

In light of the above, while the broker is a big fan of the company, it isn’t enough to justify a buy rating. It summarises:

PLS is a large, liquid and clean exposure to global lithium fundamentals and sentiment. PLS is a low-cost producer, it operates in a tier one jurisdiction in Western Australia, and has a strong balance sheet ($1.8b net cash at 31 March 2024) which can withstand weaker lithium prices and support expansion programs. We are confident that EV-led demand will see strong long-term lithium market fundamentals. However, weak near-term lithium market sentiment results in us retaining our Hold recommendation.

Overall, it could be worth keeping Pilbara Minerals shares on your watchlist and waiting for a better entry price or for sentiment and demand to shift in the industry.

The post Down 42%: Are Pilbara Minerals shares good value now? appeared first on The Motley Fool Australia.

More reading

• Which ASX lithium shares are financially primed to survive this rut?
• Top broker says Pilbara Minerals shares are ‘a super buy at these levels’
• Is it time to buy FY24’s worst-performing ASX shares?
• Why Lovisa, Mayne Pharma, Pilbara Minerals, and RPMGlobal shares are falling today
• Pilbara Minerals shares hit 22-month low. Are short-sellers holding tight?

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.

One of the sharpest changes in our financial landscape, and for anyone investing in ASX shares, has been the change in interest rates over the past two years or so.

This will come as no surprise for anyone carrying the burdens of a mortgage, of course.

But one of the upsides of the Reserve Bank of Australia (RBA) raising the cash rate from 0.1% in April 2022 to today’s 4.35% has been the steep rise in returns one can get from simply holding cash in the bank.

Prior to 2022, most Australians would have become used to getting a pittance from keeping their hard-earned dollars in a savings account or term deposit.

After all, the last time the cash rate was above 4.3% was late 2011. And that didn’t even last that long. Australians spent almost all of the 2010s with an interest rate below 3%. Between 2016 and 2022, it was under 2%.

But today, with the cash rate at 4.35%, Australians can expect to receive an interest rate of 5% or even higher if they put their money in a competitive savings account or term deposit.

A safe 5% return on your cash is nothing to turn one’s nose up against. After all, bank accounts with up to $250,000 are essentially risk-free, thanks to the Federal Government’s ‘Financial Claims Scheme’ banking guarantee.

But with the returns from cash investments at this historical high, are ASX shares still a better investment? That’s what we’ll be analysing today. And given we’ve recently bid an old financial year farewell and welcomed in a new one, it’s a great time to do just that.

How did cash compare to investing in shares in FY24?

Luckily, a recent edition of AMP chief economist Shane Oliver’s ‘Oliver’s Insights‘ reveals the answer.

According to the newsletter, Oliver estimated that “two years of rate hikes” resulted in cash investments returning an average of 4.4% over the 2024 financial year.

However, Oliver also estimated that the returns from the Australian share market came in at 12% for FY24. Oliver stated that ASX shares benefitted from “the positive global lead but were relative underperformers again on the back of China worries, the RBA lagging in moving to cut rates and the greater sensitivity of Australian households to higher rates”.

That “positive global lead” refers to the performance of international shares. Oliver noted, “Global shares returned 21% in local currency terms over 2023-24, with a slight rise in the $A cutting this to a still strong 20% in $A terms”.

So an unequivically spectacular year for Australian stock market investors. Someone with $100,000 in ASX shares would be richer to the tune of $7,600 than if they kept that $100,000 in cash investments over FY24. And that’s without taking into account the benefits of franking credits from ASX shares, either.

Still, it’s not all good news from Oliver. To conclude with, he noted that “The risks regarding equity markets are higher than a year ago”. That’s thanks to geopolitical risks, and dangers that the current high interest rate environment could trigger a recession.

Let’s hope FY2025 proves as lucrative for Australian investors as FY24 did.

The post Here’s how much cash returned in FY24 compared with investing in shares appeared first on The Motley Fool Australia.

More reading

• Down 42%: Are Pilbara Minerals shares good value now?
• Buy this undervalued ASX 200 stock ahead of its demerger
• 3 strong ASX dividend stocks for income investors to buy
• Why the Liontown share price could jump 25%+
• Australian dividend machines: 3 ASX shares that generate reliable passive income

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 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.

Buying ASX 200 stocks when they are undervalued is a great way to generate big returns.

However, knowing whether something is cheap or simply a value trap can be difficult.

The good news is that analysts at Bell Potter have been doing the hard work for you and believe that big returns could be on the cards for buyers of undervalued Premier Investments Limited (ASX: PMV) shares.

What is the broker saying about this ASX 200 stock?

Bell Potter is feeling very positive about the retail giant’s proposed demerger of its Peter Alexander and Smiggle brands and its potential merger with Myer Holdings Ltd (ASX: MYR). In respect to the latter, it commented:

Premier Investments (PMV) recently announced the proposal received from Myer Holdings (MYR) to divest PMV’s non-core Apparel Brands (AB) to MYR via an all-script sale. We consider few scenarios on how the move could provide revenue/margin/cost savings outcomes for the combined group if the potential merger between Myer and AB succeeds. We see various opportunities for revenue/earnings incrementality up to $3/share within our current PMV valuation.

While MYR shareholders could benefit from an EPS accretion, we see upside to PMV shareholders given the ~64% post-merger ownership in MYR’s upsized earnings base from a previous 31%. While the higher earnings base yielding higher operating margins (BPe ~9% vs MYR’s current 6%) warrants a re-rate, this could see unlocking of significant value in post-merger MYR shares that PMV shareholders will own via the distribution of shares from PMV.

The broker has also spoken positively about the ASX 200 stock’s proposed demerger of the Peter Alexander and Smiggle brands and feels it makes its shares undervalued on current multiples. It adds:

We view PMV’s P/E multiple of ~15x (FY25e, BPe) as attractive, considering the value that we see emerging from the potential demerger of PMV’s two key brands, Smiggle and Peter Alexander which are global roll-out worthy somewhat similar to some of the dominant players such as LOV and LULU, highly profitable in comparison to the peer group (EBIT margins wise). With the Smiggle spin-off due in Jan-25, we await updates on the leadership transition. PMV remains a key preference for us within the Consumer Discretionary sector.

Big returns

Bell Potter has a buy rating and $35.00 price target on the ASX 200 stock. Based on its current share price of $29.83, this implies potential upside of 17% for investors over the next 12 months.

In addition, the broker is forecasting 4%+ dividend yields each year through to at least FY 2026. This boosts the total potential return to approximately 21%.

The post Buy this undervalued ASX 200 stock ahead of its demerger appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Bell Potter names the best ASX retail stocks to buy in FY25
• These ASX shares could rise 15% to 35%
• Why Calix, Collins Foods, Myer, and Patriot Battery Metals shares are charging higher
• Here are the top 10 ASX 200 shares today

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 Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Do you have space for some more ASX dividend stocks in your income portfolio?  If you do, then it could be worth looking at the three names in this article.

That’s because analysts think they are in the buy zone and could provide investors with attractive dividend yields.  Here’s what they are forecasting from them:

IPH Ltd (ASX: IPH)

IPH could be a great ASX dividend stock to buy this month. It is an intellectual property solutions company with operations across the world.

Goldman Sachs is a fan of the company. This is partly due to its belief that IPH is “well-placed to deliver consistent and defensive earnings with modest overall organic growth.” This is exactly what you want from a dividend stock.

Goldman is forecasting fully franked dividends per share of 34 cents in FY 2024 and then 37 cents in FY 2025. Based on the current IPH share price of $6.25, this represents yields of 5.4% and 5.9%, respectively.

Goldman has a buy rating and $8.70 price target on IPH’s shares.

QBE Insurance Group Ltd (ASX: QBE)

Analysts at Goldman Sachs are also feeling positive about this insurance giant and think it could be an ASX dividend stock for income investors to buy.

It likes the company because it “has the strongest exposure to the commercial rate cycle” and that its “North America [business is] on a pathway to improved profitability.”

Goldman expects this to underpin dividends per share of 60 US cents (89.5 Australian cents) in FY 2024 and 63 US cents (93.9 Australian cents) in FY 2025. Based on the current QBE share price of $16.82, this equates to dividend yields of 5.3% and 5.6%, respectively.

Goldman has a buy rating and $20.60 price target on its shares.

SRG Global Ltd (ASX: SRG)

Finally, analysts at Bell Potter rate SRG Global as an ASX dividend stock to buy right now. It is a diversified industrial services group that provides multidisciplinary construction, maintenance, production drilling and geotechnical services.

It highlights that the company’s “short-to-medium term outlook is reinforced by Government-stimulated construction activity.”

Bell Potter is forecasting SRG Global to pay shareholders 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 87 cents, this will mean dividend yields of 5.4% and 7.7%, respectively.

The broker has a buy rating and $1.30 price target on its shares.

The post 3 strong ASX dividend stocks for income investors to buy appeared first on The Motley Fool Australia.

More reading

• 3 ASX dividend shares to buy with 5%+ yields
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• 2 ASX penny stocks that pay dividends
• Analysts name 3 ASX income stocks to buy now
• Bell Potter says these ASX dividend shares are top buys this month

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

The Liontown Resources Ltd (ASX: LTR) share price has been having a tough time over the last 12 months.

So much so, the lithium developer’s shares were the worst performers on the ASX 200 index.

During the period, the company’s shares lost a whopping 68% of their value. This means that if you had invested $10,000 into Liontown at the start of the financial year, you would have ended up with just $3,200.

Has this created a buying opportunity for investors? Let’s take a look at what analysts at Goldman Sachs are saying about the company.

Liontown share price could jump 25%+

Analysts at Goldman Sachs have been looking at the company following its recent funding update.

And while the broker is not willing to put a buy rating on its shares right now, it does see a lot of value in the Liontown share price at current levels.

The note reveals that Goldman has reaffirmed its neutral rating with a trimmed price target of $1.15 (from $1.35). Based on its current share price of 91 cents, this implies potential upside of 26% over the next 12 months.

Goldman believes funding risks are now out of the way and cost and ramp up risks are priced in. It said:

Though perceived funding risks are largely alleviated, and cost/ramp up risks appear increasingly priced in, we rate LTR a Neutral on valuation, where LTR is trading at a discount to our revised NAV at ~0.85x, and an implied LT spodumene price of ~US$1,070/t (in line with peers at ~0.85x & ~US$1,080/t), though with significant potential valuation uplift from de-risking/valuation roll-forward.

Speaking of costs, the broker went into further detail about its operating costs, which are expected to be updated in the near future. It adds:

While the ramp up of the underground (UG) mine (first ore late CY24) and associated costs remain a key perceived risk for the stock (from our investor discussions), we see this risk as more modest and increasingly priced in on the current mine development/extraction plan. While LTR has not given updated cost estimates (noting processing is set to start in July and optimisation studies are ongoing; last update Oct-23), we update our estimate of underground mining/unit costs based on our bottom-up quarterly analysis of listed Australian gold assets, where we find escalation of underground mining costs has begun to ease, on average, with underground unit costs showing signs of broadly flat to only modest increases since LTR’s last cost update.

All in all, things could be looking up for Liontown and its share price. Though, investors may want to keep their powder dry until the company updates its costs and ramps up production successfully.

The post Why the Liontown share price could jump 25%+ appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Which ASX lithium shares are financially primed to survive this rut?
• Top brokers name 3 ASX shares to buy today
• Should you buy Liontown shares after its update?
• Is it time to buy FY24’s worst-performing ASX shares?

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 positions in and has recommended Goldman Sachs Group. 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 Australian share market is a great place to generate passive income.

However, if you want a reliable source of income, you will need to choose your ASX shares carefully.

After all, failure to do so could mean you end up with far less income one year than you were relying on.

With that in mind, let’s take a look at three ASX shares that could be worth considering as part of a balanced income portfolio. They are as follows:

APA Group (ASX: APA)

The first ASX share to look at for passive income is APA Group. It is an energy infrastructure business that owns, manages, and operates a diverse portfolio of gas, electricity, solar and wind assets.

These assets generate a reliable and growing source of income for the company each year. So much so, it is on course to increase its dividend for 20 years in a row.

Analysts at Macquarie believe the company will achieve this. The broker is forecasting APA Group to increase its dividend to 56 cents per share in FY 2024 and then 57.5 cents per share in FY 2025. Based on the current APA Group share price of $7.90, this equates to 7.1% and 7.3% dividend yields, respectively.

Macquarie has an outperform rating and $9.40 price target on the company’s shares.

Coles Group Ltd (ASX: COL)

Another ASX share that could offer a reliable source of passive income is supermarket giant Coles.

Given the company’s strong pricing power, defensive earnings, market leadership position, and favourable dividend policy, it appears well-positioned to continue paying attractive dividends long into the future.

Morgans thinks this will be the case. Its analysts are forecasting Coles to pay fully franked dividends of 66 cents per share in FY 2024 and 69 cents per share in FY 2025. Based on the current Coles share price of $17.03, this implies yields of approximately 3.9% and 4.1%, respectively.

Morgans has an add rating and $18.95 price target on its shares.

Suncorp Group Ltd (ASX: SUN)

Finally, Suncorp could be another good option for passive income. It is the insurance company behind brands including AAMI, Apia, Bingle, GIO, Shannons, and Vero, as well as the eponymous Suncorp brand.

Goldman Sachs is positive on the company. It believes some attractive dividend yields are coming for buyers at current levels.

The broker is forecasting fully franked dividends per share of 78 cents in FY 2024 and then 83 cents in FY 2025. Based on the current Suncorp share price of $16.68, this will mean dividend yields of 4.7% and 5%, respectively.

Goldman Sachs has a buy rating and $17.54 price target on its shares.

The post Australian dividend machines: 3 ASX shares that generate reliable passive income appeared first on The Motley Fool Australia.

More reading

• ASX 200 stock slips on $145 million impairment
• Why APA Group, Chalice Mining, Guzman Y Gomez, and Monadelphous shares are falling
• 9 ASX All Ords shares lifted to ‘strong buy’ consensus ratings in June
• Why these losing ASX stocks could be a better buy than AI right now
• These were the five best ASX bank shares to own in FY24

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

You won’t find many All Ordinaries Index (ASX: XAO) companies with a 10% dividend yield and a fast-rising share price, which is why I think this ASX All Ords stock is a brilliant bargain.

The company in question is ASX coal stock Yancoal Australia Ltd (ASX: YAL).

And for passive income investors who don’t object to funding Aussie coal miners, this is one to run your slide rules over.

A juicy dividend yield AND tremendous share price growth

When you’re on the hunt for passive income stocks with an exceptionally high dividend yield, you’ll often run into stocks that have seen their share prices collapse in recent months. That will drive up the trailing yield, but it can also indicate that future dividends are set to take a dive as well.

Occasionally, you’ll also uncover stocks that have been on a tear and still offer a market-beating dividend yield.

As for Yancoal, the ASX All Ords coal stock has rocketed 52% over the past 12 months. In fact, yesterday, shares closed at a new all-time high of $7.17.

And as for that dividend yield, Yancoal paid a fully franked interim dividend of 37 cents a share on 20 September. Passive income investors will have received the final dividend of 32.5 cents a share on 30 April.

That equates to a full-year payout of 69.5 cents a share.

At yesterday’s closing price, this sees Yancoal shares trading on a fully franked trailing dividend yield of 9.69%.

What’s been going right for Yancoal shares?

The Yancoal share price and dividend yield have remained resilient despite coal prices tumbling from their record highs in 2022. However, the thermal coal price has found support over the past 12 months, broadly trading in the mid-US$130 (AU$195) a tonne range.

At its March quarter report, Yancoal reported receiving an average realised price of AU$180 a tonne. That’s almost double the $89 to $97 a tonne in cash operating cost the miner is targeting in 2024.

On the production side, the ASX All Ords coal stock is forecasting full-year production in the range of 35 million to 39 million tonnes.

After paying shareholders the $429 million in final dividends, Yancoal still held a very impressive $1.2 billion in cash.

I believe these strong metrics, along with strong ongoing global coal demand, should see this passive income star continue to offer a market-beating dividend yield in the year ahead.

The post A 10% dividend yield! Is this ASX All Ords stock a brilliant bargain? appeared first on The Motley Fool Australia.

More reading

• 2 ASX coal shares smashing new 52-week highs on Wednesday
• The Yancoal share price just rocketed to new 52-week highs. Here’s why
• Beat the ASX with these cash-gushing dividend stocks
• Is the 11% dividend yield from Yancoal shares too good to be true?
• How to earn $1,900 in passive income with just $10,000 in savings

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.

Many investors have steered clear of discretionary retail shares this year, sending the Super Retail Group Ltd (ASX: SUL) share price down 14% since January. In contrast, the S&P/ASX 200 Index (ASX: XJO) has lifted 1.5% year-to-date.

After the recent decline in its share price, S&P Capital IQ currently values Super Retail Group shares at 13x FY25 earnings estimates.

Historically, Super Retail Group shares have traded at both single-digit and higher multiples, including during the COVID-19 crisis. The current price-to-earnings (P/E) ratio is around the mid-point of its trading range of 8x to 18x.

At the current share price, Super Retail offers a fully-franked dividend yield of 5.6%. While this yield may not be the highest on the ASX, investors should consider the company’s earnings resilience and dividend outlook.

Given these factors, is Super Retail Group the optimal ASX dividend share to consider for investment today?

Resilient earnings

Super Retail Group operates a diverse portfolio of retail brands — including Supercheap Auto, Rebel, BCF, and Macpac — across Australia and New Zealand.

Despite challenges in the retail sector, Super Retail Group has demonstrated robust earnings resilience.

The company reported mixed sales growth in its second-half trading update, with Supercheap Auto sales increasing 1% and BCF sales falling 5%.

In the longer term, its earnings per share (EPS) have increased from 41 cents in FY15 to $1.15 in the last 12 months to December 2023.

While its earnings inevitably swing through ups and downs of economic cycles, the company shows a relatively stable trend compared to other ASX consumer discretionary shares. For example, its EPS fell from 70 cents in FY19 to 55 cents in FY20 during the COVID-19 crisis before recovering to 1.32 in FY21.

The company’s ability to maintain stable earnings amidst fluctuating consumer sentiment and economic conditions highlights its effective management of costs and strategic positioning in essential retail segments.

This resilience underscores Super Retail Group’s capability to navigate market uncertainties and sustain shareholder value over the long term.

What about Super Retail’s dividend history?

Super Retail Group’s commitment to paying consistent and fully-franked dividends, even in tough economic conditions, demonstrates its dedication to shareholder value.

The company has a strong track record of consistently paying dividends to its shareholders. Over the years, its dividend per share (DPS) has increased from 40 cents in FY15 to 76 cents in the last 12 months ending December 2023.

The company maintains generous dividend payout ratios of between 50% to 90%. Even during challenging times, such as the COVID-19 pandemic in FY21, Super Retail Group paid out 51% of its earnings as dividends.

Additionally, the company has always provided 100% franking credits on its dividend payments, enhancing the returns for its shareholders.

Foolish takeaway

Despite some concerns over economic uncertainty and consumer spending, I believe Super Retail Group remains one of the top choices among ASX dividend shares today.

The post Is this the best dividend share in the ASX 200? appeared first on The Motley Fool Australia.

More reading

• 3 cheap ASX passive income shares I’d buy to target $1,000 a month
• 3 ASX income shares to buy this month
• Here are the top 10 ASX 200 shares today
• Buy Coles and these ASX 200 dividend stocks
• Top ASX passive income shares to buy before June 30

Motley Fool contributor Kate Lee 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 Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and pushed higher. The benchmark index rose 0.3% to 7,739.9 points.

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

ASX 200 expected to jump

The Australian share market looks set to jump on Thursday following a decent night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 74 points or 0.95% higher this morning. In the United States, the Dow Jones was down 0.05%, but the S&P 500 rose 0.5% and the Nasdaq pushed 0.9% higher.

Oil prices storm higher

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a great session after oil prices stormed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.1% to US$83.71 a barrel and the Brent crude oil price is up 1.1% to US$87.16 a barrel. A large drop in US crude and gasoline inventories boosted oil prices.

Buy Premier Investments shares

Premier Investments Limited (ASX: PMV) shares are good value according to analysts at Bell Potter. This morning, the broker has retained its buy rating and $35.00 price target on the retail giant’s shares. It said: “We view PMV’s P/E multiple of ~15x (FY25e, BPe) as attractive, considering the value that we see emerging from the potential demerger of PMV’s two key brands, Smiggle and Peter Alexander which are global roll-out worthy somewhat similar to some of the dominant players such as LOV and LULU, highly profitable in comparison to the peer group (EBIT margins wise).”

Gold price jumps

It could be a great session for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price raced higher overnight. According to CNBC, the spot gold price is up 1.3% to US$2,364.2 an ounce. Soft economic data out of the US boosted hopes of interest rate cuts.

Liontown rated neutral

Liontown Resources Ltd (ASX: LTR) shares have been given a neutral rating by analysts at Goldman Sachs this morning. In response to the lithium developer’s funding update, the broker has reiterated its neutral rating and cut its price target to $1.15 (from $1.35). Goldman is feeling cautiously upbeat about Liontown. It highlights there is “significant potential valuation uplift from de-risking/valuation roll-forward.”

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

More reading

• Are Woodside shares a better buy than rival Santos?
• Here are the top 10 ASX 200 shares today
• Which ASX lithium shares are financially primed to survive this rut?
• Top brokers name 3 ASX shares to buy today
• ASX 200 stock slips on $145 million impairment

Motley Fool contributor James Mickleboro has positions in Lovisa and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Lovisa, and Lululemon Athletica. The Motley Fool Australia has recommended Lovisa and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The All Ordinaries Index (ASX: XAO) gained a healthy 8.3% in FY 2024, but these top performing ASX All Ords shares left those gains in the dust.

Here’s how they managed to rocket in the financial year just past.

Three top gaining ASX All Ords shares in FY 2024

The third-best performing ASX All Ords share in FY 2024 is Superloop Ltd (ASX: SLC).

Shares in the telecommunications infrastructure company closed out FY 2023 trading for 58 cents apiece. 12 months later, on 28 June, those same shares were worth $1.61, up 178%.

The stock was in a solid uptrend for most of the financial year. But the Superloop share price really began to take off on 22 February following the release of the company’s results for the half year ended 31 December.

Highlights included revenue of $198 million, up 32.7% year on year, while underlying earnings before interest, taxes, depreciation and amortisation (EBITDA) leapt 83.3% to $23 million.

And after posting a loss of $8.3 million in H1 FY 2023, H1 FY 2024 saw Superloop report profit after tax (before amortisation) of $1.2 million.

Moving on to the second-best performing ASX All Ords share, we have Zip Co Ltd (ASX: ZIP).

Shares in the buy now, pay later (BNPL) company closed FY 2023 trading at 41 cents. Shares closed last Friday, the final trading day of the financial year, swapping hands for $1.46. That put the Zip share price up a very impressive 256%.

Zip shares were in a downtrend for the early months of FY 2023 before taking a sharp turn upwards in late October.

That was spurred by the company’s strong first-quarter results.

Investors sent the ASX All Ords share soaring after Zip reported a 15% year-on-year increase in transaction volume to $2.2 billion, with active customers up by 17% to 7.4 million. This helped drive a 19% increase in revenue to $163 million.

But the good times didn’t stop there.

The Zip share price got another major boost following its half-year update on 22 January.

Commenting on those results at the time, Zip CEO Cynthia Scott said:

Zip delivered an outstanding Group cash EBTDA result for the second quarter, underpinned by a particularly strong seasonal performance in US TTV, the resilience of the ANZ business, improved margins and continued cost discipline.

Group cash EBTDA for 1H24 is expected to be between $29.0m and $33.0m, compared to ($33.2m) in 1H23.

This brings us to the top-performing ASX All Ords share in FY 2024 — drum roll, please: Nuix Ltd (ASX: NXL).

Shares in the investigative analytics and intelligence software provider closed out FY 2023 at 85 cents apiece and finished FY 2024 trading hands for $3.08. That saw the Nuix share price edge out Zip with a whopping 12-month gain of 262%.

Nuix shares trended higher through most of the year, with the stock gaining another big boost in late May after releasing a bullish earnings update.

The ASX All Ords share forecast FY 2024 statutory EBITDA will increase by more than 35% from the prior year in the range of $47 million to $52 million. Management also anticipates topping the company’s 10% full-year revenue growth target.

The post The three best ASX All Ords shares to buy and hold in FY 2024 unveiled appeared first on The Motley Fool Australia.

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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 positions in and has recommended Zip Co. 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.