Category: Stock Market

Telstra Group Ltd (ASX: TLS) shares have been a fairly disappointing investment for ASX investors in recent months. This ASX 200 telco was flying high only in July last year, reaching new multi-year highs of $4.36 a share.

Alas, today, those highs seem like a distant memory. Telstra shares are currently trading for $3.62. At this pricing, the telco remains a chunky 17% or so off its highs from last July.

Year to date in 2024, Telstra stock is down 8.82%. That stretches to a loss of 16.01% over the past 12 months.

Check that all out for yourself below:

There is one silver lining to this cloud though. Telstra’s share price falls over the past 12 months or so have had the effect of lifting the company’s storied dividend yield up to an impressive 4.83%. That comes with full franking credits too.

Even so, Telstra shareholders probably aren’t a happy bunch right now. But they soon might be if one ASX expert is to be believed.

ASX broker calls 21% upside for Telstra shares

ASX broker UBS sees significant value at the current Telstra share price. According to reporting in The Australian this week, the broker has reiterated a ‘buy’ rating on the ASX 200 telco, along with a 12-month share price target of $4.40.  

If realised, this would see Telstra shares gain more than 21.5% from their current levels.

This optimism hailed in part from a survey of Telstra customers that UBS conducted. This survey found that “40 [per cent] of respondents were unlikely to make changes to their plans, and only 10 per cent were likely to leave to different networks if prices rise by $5”.

That comes from a continuing customer perception of Telstra having the best “network quality” on the market. Telstra also reportedly made improvements when it came to “value for money”.

This led UBS to conclude that Telstra’s mobile pricing power is “likely intact” and that the company is “still well placed to raise prices”.

So good news for Telstra investors. But let’s see if UBS is on the money here, or whether Telstra shareholders will have to wait a little longer to see their shares rebound in value.

At the current Telstra share price, this ASX 200 telco has a market capitalisation of $41.83 billion, with a price-to-earnings (P/E) ratio of 20.70.

The post ASX expert: Time to buy Telstra shares appeared first on The Motley Fool Australia.

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

I think it is fair to say that most ASX penny stocks are speculative in nature and do not generate profits.

But that doesn’t mean there aren’t any out there that aren’t profitable.

In fact, some are even profitable enough to reward their shareholders with dividends.

For example, two ASX penny stocks that analysts have named as buys and are tipping to offer attractive dividend yields are listed below.

Here’s what you need to know about these shares that you can buy for less than a dollar:

GDI Property Group Ltd (ASX: GDI)

Bell Potter thinks that GDI Property could be an ASX penny stock to buy right now. It is a property owner and fund manager that is currently managing property investments in Greater Sydney, Brisbane, Perth, South East Queensland, and North Queensland.

Its shares are changing hands for 59 cents. This could be cheap according to the broker, which has a buy rating and 75 cents price target on them.

The broker’s analysts highlight that “GDI offers a +10% 3yr EPS CAGR which is amongst the highest amongst our coverage while many other passive REITs are still facing CoD headwinds and declining earnings growth.”

In respect to income, the broker is forecasting dividends per share of 5 cents across FY 2024, FY 2025, and FY 2026. Based on the current GDI Property share price of 58 cents, this implies dividend yields of 8.6% for the next three years.

SRG Global Ltd (ASX: SRG)

Another ASX penny stock that pays dividends is SRG Global. It is a diversified industrial services group that offers multidisciplinary construction, maintenance, production drilling and geotechnical services.

The company’s shares are currently trading at 83 cents. Bell Potter thinks this makes SRG Global undervalued at current levels. In fact, it believes its penny stock status should come to an end in the near future. The broker currently has a buy rating and $1.30 price target on its shares.

It believes that “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.”

As for dividends, 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, this will mean dividend yields of 5.65% and 8.1%, respectively.

The post 2 ASX penny stocks that pay dividends appeared first on The Motley Fool Australia.

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• 4 ASX income stocks for Aussie investors to buy now
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Srg Global. 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.

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

There are plenty of ASX income stocks out there for investors to choose from, but which ones could be in the buy zone right now?

Three that analysts have recently named as buys are listed below. Here’s what they are saying about them:

Cedar Woods Properties Limited (ASX: CWP)

Morgans is a fan of this property company and thinks it could be an ASX income stock to buy now.

Its analysts believe the company’s shares are undervalued and deserve to trade on higher multiples. Particularly given “CWP’s exposure to lower priced stock in higher growth markets sees further potential to drive earnings.”

Morgans expects this to underpin dividends per share of 18 cents in FY 2024 and then 20 cents in FY 2025. Based on the current Cedar Woods Properties share price of $4.60, this will mean dividend yields of 3.9% and 4.35%, respectively.

The broker has an add rating and $5.60 price target on its shares.

Dexus Convenience Retail REIT (ASX: DXC)

Another ASX income stock that Morgans is positive on is the Dexus Convenience Retail REIT. It owns a portfolio of service stations and convenience retail assets across Australia. This portfolio has a long lease expiry profile and contracted annual rent increases, which management expects to deliver a sustainable and strong level of income security.

Speaking of which, Morgans is forecasting the Dexus Convenience Retail REIT to pay dividends per share of 21 cents in both FY 2024 and FY 2025. Based on its current share price of $2.79, this implies yields of 7.5%.

Morgans has an add rating and $3.23 price target on its shares.

IPH Ltd (ASX: IPH)

A final ASX income stock that has been given the thumbs up by analysts is IPH.

It is an international intellectual property (IP) services company with a network of member firms working throughout 10 IP jurisdictions and with clients in more than 25 countries. Among its customer base are Fortune Global 500 companies and other multinationals.

Goldman Sachs is a fan of the company and sees it as a great option for investors right now. It is forecasting fully franked dividends of 34 cents per share in FY 2024 and 37 cents per share in FY 2025. Based on the current IPH share price of $6.30, this represents yields of 5.4% and 5.9%, respectively.

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

The post Analysts name 3 ASX income stocks to buy now appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended IPH. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With a new month on the horizon, now could be a good time to look at any additions you could make to your portfolio.

And if you’re a fan of growth shares, then it could be worth checking out the two ASX shares listed below that have been named as buys.

Here’s what you need to know about them:

Life360 Inc (ASX: 360)

Analysts at Bell Potter think that this location technology company’s shares could still be great value despite rocketing this year. The broker currently has a buy rating and $17.75 price target on its shares.

It has been impressed with Life360’s quicker than expected growth and believes this bodes well ahead of the seasonally strong third quarter of the year. The broker said:

Life360 put out a media release saying it has just reached 2m global paying circles. This was notably ahead of our forecast which was 1.98m at 30 June 2024 and an increase of 86k in 2Q2024. The figure at 31 March 2024 was 1.90m so this indicates the company has already added c.100k this quarter and will exceed the 96k added in 1Q2024. This far exceeds the growth of 73k in 1Q2023 and 62k in 2Q2023 which was admittedly after the material price rises which were put through for iOS users in the US in 4Q2022. We also note that Q1 and Q2 are traditionally not the strongest quarters for paying circle growth and this rather is in Q3 with back-to-school in the US so the current momentum suggests another quarter of around 100k or more in 3Q2024.

Light & Wonder Inc. (ASX: LNW)

Over at Morgans, its analysts are feeling bullish about Light & Wonder and see it as an ASX growth share to buy.

Light & Wonder, which was formerly known as Scientific Games, is an American cross-platform global games company that provides gambling products and services. Morgans currently has an add rating and $172.00 price target on its shares.

After winning market share in Australia, the broker believes the company is well-positioned to repeat this in the United States. It said:

We initiate coverage of Light & Wonder (LNW) with an ADD rating and a 12-month target price of A$172. LNW develops gaming content, hardware and technology solutions for traditional land-based, as well as digital customers and players. LNW is dual-listed on the Nasdaq (primary listing) and ASX. Since restructuring and rebranding from Scientific Games a few years ago, its experienced team has captured significant land-based share in Australia. We believe LNW can replicate this in the US. Additionally, its digital segments are also performing well with its social casino division, SciPlay, significantly outpacing the rest of the market. On our estimates, LNW is on an attractive FY25F PER (based on EPSA) of 14x, with an EV/EBITDA of 9x and a free cashflow (FCF) yield of 6%.

The post 2 exciting ASX growth shares to buy in July appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Light & Wonder. The Motley Fool Australia has recommended Light & Wonder. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Now could be the time to buy Paladin Energy Ltd (ASX: PDN) shares.

That’s the view of analysts at Bell Potter, which have just upgraded the ASX uranium stock.

What is the broker saying about this ASX uranium stock?

Bell Potter notes that Paladin Energy has announced an all-scrip deal to acquire Fission Uranium (TSX: FCU).

While this will mean ~30% dilution for shareholders, Bell Potter points out that they will gain exposure to one of the pre-eminent uranium assets in the Athabasca Basin for an attractive price.

And although the broker acknowledges that the acquisition won’t add any new production in the immediate term, it won’t be too far into the future until it does. In the meantime, its Langer Heinrich Mine will be able to fund developments. It said:

Our largest drawback to PDN prior to the announcement was the lack of viable near term growth options in the portfolio. This drawback is effectively removed with the inclusion of FCU’s Paterson Lakes (PLS) project, a high-grade unconformity uranium project in Saskatchewan Canada. PLS aims to commence production in FY29, averaging ~9Mlbspa over 10 years.

We believe this profile fits neatly with production from PDN’s Langer Heinrich Mine (LHM), which will be in its 5th/6th year of operations and producing ~US$200-$220m in free-cash-flow providing potential funding options for PLS.

In light of this, the broker sees scope for the ASX uranium stock to be producing 15Mlbs annually by the end of the decade. It adds:

By the turn of the decade, PDN could be producing ~15Mlbs U3O8 annually (13.5Mlbs attributable) across two sites. The question is what is the new business worth? On a EV/ lb of production value, we would argue it’s significantly more than the current implied combined market capitalization. On a DCF basis, it sits somewhere in between. Either way, we argue the new PDN is bigger and better.

Buy the dip

Bell Potter notes that Paladin Energy’s shares have sold off since last month, which it feels has created a buying opportunity.

As a result, it has upgraded the ASX uranium stock to a buy rating with a $16.10 price target. This implies potential upside of approximately 30% for investors over the next 12 months. The broker concludes:

PDN has sold off since we moved to a Hold in May-24. We see this as a potential buying opportunity Irrespective of the transaction. We ascribe some additional value for the FCU transaction in this note and assume the deal goes through. Our recommendation moves to Buy, TP $16.10 (previously $15.70).

The post Guess which ASX uranium stock was just upgraded to a buy rating appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 of Australia’s top brokers have been busy adjusting their financial models and recommendations again. This has led to the release of a number of broker notes this week.

Three ASX shares that brokers have named as buys this week are listed below. Here’s why their analysts are feeling bullish on them right now:

Bellevue Gold Ltd (ASX: BGL)

According to a note out of Goldman Sachs, its analysts have initiated coverage on this gold miner’s shares with a buy rating and $2.20 price target. Goldman highlights that Bellevue Gold is now largely through its initial ramp up. As a result, it sees the business as well positioned and attractively priced compared to mid-cap peers. Especially given its higher average grades, stronger margin generation, and near-term free cash flow yields of ~10%. Goldman also sees low-cost mill expansion and underground optionality potentially supporting further upside for the company in the medium term. The Bellevue Gold share price is trading at $1.71 on Wednesday.

Collins Foods Ltd (ASX: CKF)

A note out of UBS reveals that its analysts have upgraded this quick service restaurant operator’s shares to a buy rating with an improved price target of $11.50. This follows the release of its FY 2024 results on Tuesday that were comfortably ahead of expectations. In addition, while some investors may be concerned with its soft start to FY 2025, with sales down 0.8% on a like for like basis, UBS isn’t fazed by this. In fact, it feels it is a strong showing given the tough comparables its KFC Australia business is facing. UBS also suggests that as its comparables ease in the second half, it could return to growth on a like for like basis. The Collins Foods share price is fetching $9.22 this afternoon.

Perpetual Ltd (ASX: PPT)

Analysts at Bell Potter have retained their buy rating and $27.60 price target on this fund manager’s shares. According to the note, the broker believes the market is undervaluing Perpetual’s business after announcing the sale of its Corporate Trust (CT) and Wealth management (WM) businesses to KKR for $2.175 billion. It thinks the company should be value at 6.3x FY 2025 EBITDA, which is in line with global peers. This values the company at $18.17 per share and then the remaining value comes from its estimated cash distribution following the sale of the CT and WM businesses. Bell Potter sees scope for a distribution of up to $9.55 per share. The Perpetual share price is trading at $21.07 at the time of writing.

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

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Motley Fool contributor James Mickleboro has positions in Collins Foods. 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 Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX All Ordinaries Index (ASX: XAO) stock GQG Partners Inc (ASX: GQG) has been an exceptional performer in recent times. It’s up around 60% this year and has nearly doubled over the past year, as shown on the chart below. And one fund manager is still very positive about the company.

GQG is a large fund manager based in the US but listed on the ASX. It has four main investment strategies: US shares, international shares, global shares and emerging markets.

GQG has managed to deliver long-term outperformance with each of its strategies compared to their respective benchmarks, which is helping to attract and grow funds under management (FUM). This is one of the things that the fund manager Blackwattle is attracted to about the company.

Ongoing growth

Blackwattle noted in its May 2024 fund commentary that GQG continued its strong inflows momentum with $1.7 billion of net inflows in April.

The fund manager said the leading indicators for inflows are “excellent”, noting the strong investment returns and the re-opening of GQG’s emerging markets fund.

Blackwattle said GQG is trading on a price/earnings (P/E) ratio of 12, and it’s paying a dividend yield of over 7%.

The investment team at Blackwattle believes that the ASX All Ords stock “still screens cheaply” compared to the market and other funds management peers. Blackwattle pointed out that the 10-year average P/E multiple of comparable listed asset managers is 16x.

Recent update

The most recent FUM update from GQG was its monthly FUM to 31 May 2024.

This showed that GQG experienced net inflows of US$2.8 billion during the month of May, with a total FUM increase of around US$8 billion over the month thanks to the investment performance of the ASX All Ords stock’s funds.

GQG finished May 2024 with US$150.1 billion of FUM.

Outlook for markets

Within its fund commentary update, Blackwattle provided some commentary on its outlook for the market. The fund manager said:

As investors digest the likelihood of fewer (if any) rate cuts in 2024, we expect equity markets to remain choppy. Many cyclical sectors have already seen meaningful corrections from the very elevated valuations at the end of February.

We are now seeing opportunities to selectively increase exposure to good quality industrial businesses that are performing well. The portfolio maintains an overweight in Resources, however following a strong share price performance from sectors such and gold and copper we have taken the opportunity to bank some profits. As such, we would expect the portfolio settings to move towards a more balanced position.

The post Up 57% in 2024, this ASX All Ords stock ‘still screens cheaply vs the market’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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 pretty horrible day for most ASX 300 shares so far this Wednesday. At the time of writing, the S&P/ASX 300 Index (ASX: XKO) has plunged by a depressing 0.82%, leaving the index at just over 7,710 points.

But even though most ASX 300 shares have followed the index and are having a day to forget, most is not all. In fact, there are no fewer than five ASX 300 shares that have just smashed new 52-week highs this Wednesday. Let’s check them out.

5 ASX 300 shares smashing new 52-week highs today

First up, we have tech stock Altium Ltd (ASX: ALU). Altium shares closed at $67.88 each yesterday afternoon. But this morning, those same shares opened at $67.90 before climbing up to $68.03 just after market open. That’s not just a new 52-week high for Altium, but a new record high. At the time of writing, this ASX 300 share has cooled off a little, but is still going for $67.95 a share, up 0.1% for the day thus far.

This rise today comes after Altium released an update regarding its potential takeover by Renesas Electronics. This confirmed that most regulatory approvals for the takeover have now got the green light.

Next up, we have mining equipment manufacturer Codan Ltd (ASX: CDA). Codan shares closed at $11.66 each yesterday but opened at $11.72 this morning before rising to $11.80 just after midday. That’s this ASX 300 share’s new 52-week high.

At present, Codan stock is trading at its $11.80 peak, up 1.2% for the day thus far. This rise (and new high) comes despite no fresh news or announcements out of the company today.

ASX 300 bank share Bendigo and Adelaide Bank Ltd (ASX: BEN) is our next high flyer. Bendigo shares closed at $11.55 each yesterday evening and opened at $11.57 today before rising up to a new 52-week high of $11.63 mid-morning. Right now, those shares are trading at $11.61 each, up 0.48% for the day.

Again, this comes despite no fresh news or developments out of this bank. Perhaps investors are being spurred on by Commonwealth Bank of Australia (ASX: CBA)’s recent all-time highs here.

New highs for HUB24 and News Corp

ASX 300 tech share HUB24 Ltd (ASX: HUB) has also had a day to remember. HUB24 shares closed at $46.21 each yesterday before opening at $46.34 this morning. Subsequently, this stock rose as high as $46.63 a share, which is a new 52-week — and all-time record — high. At the time of writing, HUB24 has risen 0.26% for the day at $46.33 a share.

There has been no news from HUB24 today, but this company has been up almost 80% over the past 12 months.

Our final ASX 300 share worth checking out this Wednesday is News Corporation (ASX: NWS). News Corp shares finished up at $42.60 each yesterday, but opened at $43.07 this morning before rising as high as $43.37. That’s a new all-time record.

Right now, those shares are trading at $43.14 each, up a hefty 1.26%. Again, there has been no new ASX news from News Corp today. Saying that, this company’s US stock also rose by 1.31% overnight, so it’s not too surprising to see its ASX-listed stock follow suit today.

The post 5 ASX 300 shares smashing new highs while the market sinks appeared first on The Motley Fool Australia.

More reading

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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 Altium and Hub24. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Everything there is to know about Guzman Y Gomez Ltd (ASX: GYG) is out of the bag following its ASX debut. Having leapt from its initial public offering (IPO) price of $22 to $29.29, are Guzman Y Gomez shares a worthy addition to the portfolio or a skippable meal?

The Mexican-inspired fast-food company unquestionably made a splash in the Australian share market last week. A strong appetite among investors for GYG shares has pinned a $2.9 billion market capitalisation to the newcomer. Is all the excitement backed up by the numbers?

Let’s unwrap this burrito.

Bull case for Guzman Y Gomez shares

The argument for investing in GYG is dominated by the company’s growth story.

It is indisputable that the quick-service restaurant (QSR) brand has exploded in popularity since opening its first store in 2006. Today, GYG has 210 stores across Australia, the United States, Singapore, and Japan, with the majority located down under.

At a price-to-earnings (P/E) ratio of approximately 744 times 12-month trailing earnings, GYG is hardly cheap by this measure. However, an earnings multiple is usually unhelpful in valuing high-growth businesses — and if you believe the GYG story, high growth is what we have on the table.

As outlined in the prospectus for the Guzman Y Gomez shares, the company plans to execute a significant expansion, reaching 1,000 GYG stores. This would roughly equate to a fivefold increase in its store network.

Another big factor in the bullish camp for GYG is its royalty potential. As the company’s franchised stores increase, GYG’s margins could improve dramatically.

Franchise fees, which are royalties derived from monetising the brand, are highly profitable.

Hard to stomach valuation

The investment case for Guzman Y Gomez shares is not all sunshine and churros. Indeed, the elephant in the room is the company’s high valuation.

As shown below, GYG already has a market capitalisation of more than twice that of KFC operator Collins Foods Ltd (ASX: CKF) and about 85% of Domino’s Pizza Enterprises Ltd (ASX: DMP). Notably, GYG operates about half as many stores as Collins Foods and approximately 5% of Domino’s footprint.

Parameter	Guzman Y Gomez	Domino’s Pizza	Collins Foods
Store count	210	3,837	381
Sales (million)	$869.5	$4,179.1	$1,500.0
Sales growth (YoY)	50.8%*	-0.2%*	10.4%
NPAT (million)	$3.9	$113.3	$76.7
Market cap (billion)	$2.90	$3.42	$1.13

To be fair, Guzman Y Gomez is growing much faster than its peers. However, as Ben Williamson of InvestorHub notes, the next chapter of growth is somewhat uncertain. He said:

GYG’s high valuation, coupled with significant challenges in international markets, such as competition from the likes of Chipotle in the US and reliance on rapid expansion for growth, poses risks.

The share price could remain stable if the company meets its aggressive growth targets and successfully navigates competitive pressures, yet if these targets are not met or if international operations continue to struggle, the share price may face downward pressure.

Likewise, IG market analyst Hebe Chen highlights an absence of proven economies of scale from the company’s recent growth:

It’s notable that [Guzman Y Gomez’s] recent growth hasn’t yielded much in terms of economies of scale; operating profit remains low, even in the industry’s standard, as expenses rise in line with income.

Taking a bite?

GYG wields a strong brand in Australia, painstakingly constructed over the past 18 years. In my view, leveraging this asset through growth in franchised stores is necessary for Guzman Y Gomez shares to grow into their current valuation.

Still, a lot must go right for the company to achieve its ambitions. Moreover, if growth in the US plays a major role in its expansion, then there’s the consideration of a formidable competitor in Chipotle Mexican Grill Inc (NYSE: CMG).

Ultimately, this newly listed ASX share is a little too spicy for my current taste.

The post Should I buy Guzman Y Gomez shares on the ASX? appeared first on The Motley Fool Australia.

More reading

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• How rich are the Guzman Y Gomez founders following the company’s IPO?
• How does the Guzman Y Gomez ASX valuation compare to Domino’s?
• Why Guzman y Gomez, KMD, Mineral Resources, and Pilbara Minerals shares are sinking
• Nuclear power, debt and burritos

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 Chipotle Mexican Grill and Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Chipotle Mexican Grill, Collins Foods, and Domino’s Pizza Enterprises. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.