Category: Stock Market

If you’re looking to diversify your investment portfolio with some mining sector exposure, then it could be worth considering the two ASX 200 mining stocks named below.

That’s because they have not only been rated as top buys, but they also have been tipped to rise strongly from current levels. This could potential mean market-beating returns for investors buying them today.

Here’s what you need to know about these mining stocks:

Regis Resources Ltd (ASX: RRL)

Analysts at Bell Potter think this ASX 200 gold mining stock could be severely undervalued by the market right now.

It feels that investors are not taking into account its high-quality all-Australian portfolio and the attractiveness of these assets to a bigger player. In addition, the broker highlights that the Duketon Gold Project owner has a very positive production growth outlook. It said:

As one of the largest ASX listed gold producers, we are attracted to its all-Australian asset portfolio and organic growth options which are unique at this scale. Furthermore, we see key opportunities in the fundamental, medium-term outlook and, in our view, these may also make RRL an appealing corporate target in the current conducive M&A environment.

Bell Potter has a buy rating and $2.80 price target on its shares. This implies potential upside of 61% for investors over the next 12 months.

Woodside Energy Group Ltd (ASX: WDS)

Another ASX 200 mining stock that gets the thumbs up by analysts is Woodside. It is one of the world’s largest energy producers with operations across the globe.

Morgans thinks that its shares are undervalued after recent weakness. In light of this, it sees now as a great opportunity for investors to snap them up. It said:

WDS’s share price has been under pressure in recent months from a combination of oil price volatility and approval issues at Scarborough, its key offshore growth project. With both of those factors now having moderated, with the pullback in oil prices moderating and work at Scarborough back underway, we see now as a good time to add to positions. Increasing our conviction in our call is the progress WDS is making through the current capex phase, while maintaining a healthy balance sheet and healthy dividend profile.

The broker has an add rating and $36.00 price target on Woodside’s shares. Based on its current share price of $27.26, this suggests that a return of 32% is on the cards for investors before dividends. This increases to approximately 36% including them.

The post These ASX 200 mining stocks could rise 30% to 60% appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Tax-busters: 5 fully-franked ASX dividend shares I’d buy for FY25
• Woodside shares hit a multi-year low this week, should you buy?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor James Mickleboro has positions in Woodside Energy 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 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 benchmark ASX 200 index is home to 200 of the largest listed companies on the Australian share market.

Among these companies are some true blue chip stars that could form the foundations for a winning portfolio.

But which ASX 200 shares could be top buys for investors today today? Let’s now take a look at three blue chip options for investors to consider buying:

Coles Group Ltd (ASX: COL)

The team at Bell Potter thinks that Coles could be an ASX 200 share to buy.

It is of course one of Australia’s largest supermarket operators. In addition, the company has a large liquor store network and joint ownership of the Flybuys loyalty program.

The broker likes the company due partly to its recent investment in automation and its online business. It believes that this “should help Coles maintain its market position.”

Bell Potter currently has a buy rating and $19.00 price target on the company’s shares.

CSL Limited (ASX: CSL)

Another ASX 200 share that analysts rate as a buy is CSL.

It is one of the world’s leading biotherapeutics companies with a collection of industry-leading therapies. This includes therapies such as Privigen, Hizentra, Idelvion, and Afstyla.

But CSL is never one to settle. Each year it reinvests in the region of 12% of its sales back into research and development (R&D) activities. Combined with its existing products and the rollout of its new plasma collection technology, the future looks bright for this ASX 200 blue chip star.

In light of this, it may not come as no surprise to learn that a large number of brokers are recommending CSL shares as a buy. One of those is Macquarie, which has an overweight rating and $330.00 price target on them.

ResMed Inc. (ASX: RMD)

A third ASX 200 share that could be a great addition to a portfolio is ResMed.

It is a medical device company with a focus on the sleep disorder market. This is a huge market, with an estimated one in five people suffering from a sleep disorder globally.

However, the majority of these people are not aware of their conditions. But with the awareness of sleep disorders and the health risks they pose increasing each year, ResMed looks well-placed to continue its solid growth long into the future.

Citi is bullish on ResMed and has a buy rating and $36.00 price target on its shares.

The post 3 of the best ASX 200 blue chip shares to buy now appeared first on The Motley Fool Australia.

More reading

• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)
• Where Aussies are spending their money, and the ASX shares that could benefit
• 3 steps to take for a rich retirement with ASX shares
• Why Telstra and these excellent ASX dividend stocks could be buys
• Buying Coles shares? Here are key metrics you’ll want to know

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in CSL and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Macquarie Group, and ResMed. The Motley Fool Australia has positions in and has recommended Coles Group, Macquarie Group, and ResMed. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Pilbara Minerals Ltd (ASX: PLS) is far and away the most shorted share on the Australian share market with short interest of 21.6%. This is up slightly week on week. Short sellers appear to be betting on lithium prices staying lower for longer and crunching the company’s profits.
• IDP Education Ltd (ASX: IEL) has 13.1% of its shares held short, which is up slightly since last week. This language testing and student placement company recently revealed that it is being negatively impacted by student visa changes in a number of key markets. As a result, flat earnings and expected by analysts this year and an earnings decline is forecast the year after.
• Liontown Resources Ltd (ASX: LTR) has 10.4% of its share held short, which is up slightly week on week once again. The company will shortly commence lithium production at the Kathleen Valley Project. This isn’t perhaps the best time to be adding to lithium supply.
• Syrah Resources Ltd (ASX: SYR) has short interest of 10.2%, which is down week on week again. This graphite miner’s shares have fallen heavily over the last 12 months due to weak battery materials prices, production suspensions, and its ongoing cash burn.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rebound to 10%. Short sellers appear to believe that the travel agent will fall short of the market’s revenue margin expectations.
• Westgold Resources Ltd (ASX: WGX) has short interest of 10%, which is now up for a sixth week in a row. Doubts over the gold miner’s proposed merger with Canada-based Karoa Resources appear to be behind this.
• Sayona Mining Ltd (ASX: SYA) has short interest of 9.7%, which is up since last week. This lithium miner is currently paying more to pull lithium out of the ground than it receives from buyers. Not a great business model.
• Chalice Mining Ltd (ASX: CHN) has short interest of 9.6%, which is up week on week again. While this mineral exploration company’s Gonneville Project is a globally significant critical minerals project, it is still years away from commencing production or even a final investment decision. Some investors also believe the assumptions used its project studies are a touch ambitious.
• Australian Clinical Labs Ltd (ASX: ACL) has short interest of 8.4%, which is down slightly since last week. This struggling health imaging company is guiding to yet another sharp decline in its earnings in FY 2024.
• Weebit Nano Ltd (ASX: WBT) returns to the top ten with 8.3% of its shares held short. This semiconductor company’s shares have crashed 70% over the last 12 months. Short sellers don’t appear to believe the declines are over given its lofty valuation and pitiful revenue generation.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

More reading

• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)
• With nothing in my savings account, I’d use Warren Buffett’s golden rule to build wealth
• Brokers name 3 ASX dividend shares to buy
• Here are the top 10 ASX 200 shares today
• Where could the Pilbara Minerals share price be in 12 months?

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 Idp Education. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Australian tech sector is home to a number of ASX shares that have significant growth potential.

This could make them great options for investors that are willing to make patient buy and hold investments.

For example, three ASX tech stocks that brokers think have very bright futures and could be in the buy zone now are listed below.

Here’s what you need to know about them:

Life360 Inc (ASX: 360)

Life360 could be a fantastic ASX tech stock to buy.

It is the location technology company behind the eponymous Life360 app. This app is used by millions of families worldwide. A recent update revealed that its global monthly active users (MAU) increased by 4.9 million during the first quarter to 66.4 million.

This is underpinning significant revenue and earnings growth. And with management focusing on increasing both its average revenue per user metric and paid subscribers, as well as venturing into advertising, Life360’s growth outlook appears very positive.

Morgan Stanley is confident on its outlook and recently put an overweight rating and $17.50 price target on its shares.

Megaport Ltd (ASX: MP1)

The second ASX tech stock that could be a buy is Megaport.

It is the leading global provider of elastic interconnection services. Megaport’s software layer provides users with an easy way to create and manage network connections. Through its network, businesses can deploy private point-to-point connectivity between any of the locations on Megaport’s global network infrastructure.

Due to the structural shift to the cloud and higher spending on enterprise networking, the company has been growing at a rapid rate and appears well-placed to continue doing so in the coming years.

Citi is a big fan of the company and believes there will be a multi-year spend on cloud infrastructure coming and this will support structural growth for Megaport.

The broker put a buy rating and $16.05 price target on its shares last week.

Xero Ltd (ASX: XRO)

A third ASX tech stock that analysts rate as a buy is Xero.

It is a global small business platform with a total of 4.2 million subscribers. The company notes that its smart tools help small businesses and their advisors to manage core accounting functions like tax and bank reconciliation. In addition, they can complete other important small business tasks like payroll and payments.

Goldman Sachs is very bullish about the company due largely to its quality and significant growth opportunity.

Its analysts highlight that Xero is “very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM.”

Goldman currently has a buy rating and $164.00 price target on its shares.

The post 3 explosive ASX tech stocks to buy and hold forever appeared first on The Motley Fool Australia.

More reading

• Why Xero could be one the best shares to buy in the Asia-Pacific
• Top ASX AI stocks to buy in June 2024
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy now
• Why Boss Energy, Judo Capital, Life360, and Paladin Energy shares are pushing higher

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Life360 and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Life360, Megaport, and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Although the Australian share market is trading within sight of its record high, that doesn’t mean there aren’t any bargain buys out there.

For example, the ASX 200 stock in this article has been labelled as undervalued and tipped to deliver big returns for investors over the next 12 months.

Which ASX 200 stock is cheap?

The stock in question is steel products manufacturer BlueScope Steel Limited (ASX: BSL).

According to a note out of Goldman Sachs, its analysts have reiterated their buy rating on the company’s shares with an improved price target of $30.10.

Based on the current BlueScope share price of $20.54, this implies potential upside of approximately 47% for investors over the next 12 months.

In addition, the broker is expecting the ASX 200 stock to provide dividend yields of 2.9% in FY 2024 and 3.4% in FY 2025. This boosts the total potential return to approximately 50%.

Why is the broker bullish?

The main reason that Goldman Sachs is bullish on BlueScope is its US painted steel business. It explains:

BSL began its push into the high growth US painted steel market in 2022 with the acquisition of Coil Coatings making BSL the third-largest painted steel producer in the US. Our analysis of the US painted steel market and BSL’s strategy indicates the US painted steel growth opportunity could deliver ~A$400mn (~20%) EBITDA upside.

The broker also highlights that this ASX 200 stock is trading at a significant discount to peers. It adds:

Comp analysis implies BSL undervalued: Despite ~50% of EBITDA being higher margin painted steel by FY28E, BSL trades at ~4x EBITDA vs. US steel peers at ~7-8x, with painted steel company AZZ on ~9x. […] Compelling valuation and FCF: trading at ~0.65x NAV (A$31.7/sh), ~4x NTM EBITDA (vs. 10-yr average of 4-7x), and on a FCF yield of ~6% in FY24E.

Goldman then concludes:

We reiterate our Buy rating on BSL. Our NAV increases by 5% (~A$700mn) to A$31.7/sh after incorporating US painted growth into our base case, and our 12m PT rises by 8% to A$30.1/sh, on the higher NAV and putting the US coated and painted business on 8x (unchanged for Aus, new for US). Although the US growth strategy could take around five years to deliver, BSL already looks undervalued vs. US steel peers, and we believe very little of the potential upside from the US growth strategy is being priced into the stock.

The post This ASX 200 stock’s ‘compelling valuation’ makes it a strong buy appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• 2 ASX 200 shares this fund manager rates as really cheap buys

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.

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a small decline. The benchmark index fell 0.3% to 7,724.3 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to edge lower

The Australian share market looks set to edge lower on Monday following a mixed finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 17 points or 0.25% lower. In the United States, the Dow Jones was down 0.15%, the S&P 500 edged slightly lower, and the Nasdaq rose by 0.1%.

Oil prices soften

ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued start to the week after oil prices softened on Friday. According to Bloomberg, the WTI crude oil price was down 0.2% to US$78.45 a barrel and the Brent crude oil price was down 0.15% to US$82.62 a barrel. This couldn’t stop oil from snapping its three-week losing streak amid optimism over a tighter market.

Buy BlueScope shares

The BlueScope Steel Limited (ASX: BSL) share price could be undervalued according to analysts at Goldman Sachs. This morning, the broker has reiterated its buy rating with an improved price target of $30.10. This implies potential upside of approximately 47% for investors over the next 12 months. Goldman said: “Although the US growth strategy could take around five years to deliver, BSL already looks undervalued vs. US steel peers, and we believe very little of the potential upside from the US growth strategy is being priced into the stock.”

Gold price storms higher

It could be a good start to the week for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price stormed higher on Friday. According to CNBC, the spot gold price was up 1.3% to US$2,348.4 an ounce. This meant that the precious metal recorded its first weekly gain in four thanks to interest rate cut hopes.

Capricorn Metals named as a buy

Bell Potter thinks investors should be buying Capricorn Metals Ltd (ASX: CMM) shares. This morning, the broker has reaffirmed its buy rating on the gold miner’s shares and lifted its price target slightly to $6.53. This suggests that its shares could rise 46% from current levels. The broker said: “CMM is a sector leading gold producer with a strong balance sheet, a management team with an excellent track record of delivery and clear organic growth options to lift group production to 270kozpa. We retain our Buy recommendation.”

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

More reading

• Top brokers name 3 ASX shares to buy next week
• Here’s how the ASX 200 market sectors stacked up last week
• This fund returned 30% per annum for 3 years. Here are the ASX shares it’s buying now.
• Tax-busters: 5 fully-franked ASX dividend shares I’d buy for FY25
• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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.

If you want to make some long term investments with your hard earned money but aren’t a fan of stock-picking, don’t worry. That’s because there is a solution.

The solution is exchange-traded funds (ETFs).

These funds allow investors to buy a large number of companies in one fell swoop. This can be an entire index, a whole country, a specific sector, or a group of shares with certain qualities or characteristics.

But which ASX ETFs could be great long term picks for investors today? Let’s take a look at three candidates:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

If we’re talking long term, then you want to invest in the best. And the BetaShares NASDAQ 100 ETF is home to 100 of the best companies that the world has to offer.

These are the 100 largest non-financial shares on the famous NASDAQ index. The ETF is heavily focused on technology, with many of the best-known tech giants held by the fund. This includes those that provide the search engines, streaming services, mobile phones, spreadsheets, electric vehicles, and online shopping platforms we use daily.

Among its largest holdings are Apple (NASDAQ: AAPL) and Nvidia (NASDAQ: NVDA).

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another cracking long term option for investors could be the VanEck Vectors Morningstar Wide Moat ETF.

That’s because it has been designed to invest in the type of companies that legendary investor Warren Buffett would buy. And given how he built his wealth through buy and hold investing, this bodes well for investors buying this ASX ETF.

The VanEck Vectors Morningstar Wide Moat ETF focuses on investing in high quality companies with sustainable competitive advantages (wide moats) and fair valuations. The ETF has beaten the market over the last decade, so the strategy clearly has a lot of merit.

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

A third ASX ETF to look at is the Betashares Global Cash Flow Kings ETF.

It provides investors with access to global companies with strong free cash flow. Betashares notes that the fund can serve as a core exposure to global equities or alongside existing low-cost passive global ETFs to enhance a portfolio’s emphasis on cash-generating companies.

The fund manager recently named it as one to consider buying when interest rates start to fall.

Among its holdings at present are Google parent Alphabet (NASDAQ: GOOG), payments giant Visa (NYSE: V), and cyber security leader Accenture (NYSE: ACN).

The post Why these strong ASX ETFs could be top long term picks appeared first on The Motley Fool Australia.

More reading

• Top ASX AI stocks to buy in June 2024
• Records tumble! Hot ASX ETFs smash all-time highs again on Friday
• 16% per annum: What is the VanEck Wide Moat ETF’s secret sauce?
• Looking for ASX growth shares? I rate these 2 as buys
• 3 popular ASX ETFs smashing record highs today

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Accenture Plc, Alphabet, Apple, BetaShares Nasdaq 100 ETF, Nvidia, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $290 calls on Accenture Plc and short January 2025 $310 calls on Accenture Plc. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Apple, Nvidia, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you were to gauge the outlook of ASX uranium stocks by the past month’s performance, you might be tempted to throw in the towel.

After enjoying some of the strongest share price gains among any group of companies, Australia’s top uranium shares have all lost ground over the last four trading weeks.

The selling pressure has come amid a roughly 8% decline in uranium prices over the last month.

Four weeks ago, uranium was trading for US$93 a pound. Currently, the radioactive metal is fetching US$86 per pound, well down from the 16-year highs of US$106 per pound reached in early February this year.

Still, bear in mind that in 2023 uranium prices averaged just US$67 per pound in 2023. And back in 2021 the spot price for yellow cake averaged around only US$30 per pound.

Still, with the past month’s retrace, investors have been quick to hit the sell button.

Here’s how these five top ASX uranium stocks have performed since this time last month:

• Paladin Energy Ltd (ASX: PDN) shares are down 13.56%
• Bannerman Energy Ltd (ASX: BMN) shares are down 8.22%
• Deep Yellow Limited (ASX: DYL) shares are down 10.19%
• Boss Energy Ltd (ASX: BOE) shares are down 26.86%
• Alligator Energy Ltd (ASX: AGE) shares are down 8.33%

For some context, the All Ordinaries Index (ASX: XAO) is down 0.2% over this same period.

Despite that retrace, longer-term shareholders will still be sitting on some outsized gains.

Here’s how these ASX uranium stocks have performed over the past 12 months, a period that’s seen the All Ords return 8.5%.

• Paladin shares are up 99.30%
• Bannerman shares are up 142.17%
• Deep Yellow shares are up 86.54%
• Boss Energy shares are up 33.12%
• Alligator Energy shares are up 37.50%

That’s more like it!

Now here’s why I think these companies could continue to outperform.

Why ASX uranium stocks could outshine

The first reason I remain bullish on ASX uranium stocks is the rapidly changing global public opinion surrounding nuclear power.

Nuclear energy was all but off the table following the 2011 Fukushima disaster in Japan.

But with climate change at the top of many nations’ agendas, we’ve seen a big turnaround in sentiment for the reliable, carbon-free baseload power offered by both the newer design modular and traditional large scale nuclear reactors. Though disposing of the radioactive waste remains an ongoing concern.

The second reason ASX uranium shares could charge higher once more is the massive forecast demand growth that’s come along with this shift in public sentiment.

Currently, more than 60 nuclear power plants are under construction worldwide. Another 90 are in the planning stages, with hundreds more being considered.

China and India lead the charge in building new nuclear plants, but other nations are also doing so, including Japan, South Korea, Russia, and Brazil.

Indeed, it was only back in December that 22 nations at the COP28 climate conference – including Japan, the United States and France – pledged to triple their nuclear power capacity by 2050.

And the third reason ASX uranium stocks could continue to reward investors into 2025 and beyond is that there is very limited supply growth to meet that booming demand growth.

According to the World Nuclear Association, global demand is likely to outpace global supply through to 2040.

And over the medium term, a number of nations are turning their backs on Russia’s uranium exports amid its ongoing invasion of Ukraine.

The US has gone so far as to ban Russian uranium imports, a ban that drew the attention of Boss Energy managing director Duncan Craib this week.

Craib said, “US President Joe Biden’s recent signing of legislation to ban the importation of uranium products from Russia … was a game-changing event for the uranium market and in particular for uranium projects in North America and Australia.”

And with Australia sitting on the world’s largest proven uranium reserves, I reckon ASX uranium stocks are well-placed to capitalise on the ongoing supply and demand imbalances.

The post 3 reasons ASX uranium stocks can keep charging higher into 2025 appeared first on The Motley Fool Australia.

More reading

• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)
• Here are the top 10 ASX 200 shares today
• Why Boss Energy, Judo Capital, Life360, and Paladin Energy shares are pushing higher
• Why is ASX 200 uranium stock Boss Energy flying higher on Friday?
• 3 ASX All Ords shares raised to ‘strong buy’ status in May

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.

It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

BHP Group Ltd (ASX: BHP)

According to a note out of Citi, its analysts have retained their buy rating and $48.50 price target on this mining giant’s shares. The broker points out that its global commodities team has become more bullish on copper and lifted its forecast by 20% to US$12,000 per pound. This is to reflect increased demand due to the decarbonisation megatrend. In light of this, Citi has lifted its earnings estimates for the coming years. Another positive is that the broker is now forecasting an attractive ~6% dividend yield from the Big Australian’s shares in FY 2025. This gives the total potential 12-month return a nice boost. The BHP share price ended the week at $43.09.

Capricorn Metals Ltd (ASX: CMM)

A note out of Bell Potter reveals that its analysts have retained their buy rating on this gold miner’s shares with an improved price target of $6.53. The broker believes that recent share price weakness has created a very attractive opportunity for investors to buy Capricorn Metals’ shares on the cheap. Especially given the recent announcement of a 26% increase in ore reserves at the 100%-owned Mt Gibson Gold Project in Western Australia. Bell Potter also highlights that the company has sector leading cash generation and strong production record, which it believes means that it deserves to trade at a premium to sector average valuation metrics. The Capricorn Metals share price was fetching $4.46 at the end of the week.

QBE Insurance Group Ltd (ASX: QBE)

Analysts at Goldman Sachs have retained their buy rating and $20.90 price target on this insurance giant’s shares. The broker points out that QBE has recently held a number of investor meetings. Goldman highlights that management conveyed greater confidence on the delivery of its 95% combined operating ratio (COR) in North America by 2025. This is a big positive as the lower the COR, the more profitable QBE’s operations are. As a result, Goldman believes that there is now upside risk to the FY 2025 consensus group COR of 92.8%. In fact, it sees under 92.5% as possible, reflecting the improvement in North America, a North America non-core run off, and organic trends. The QBE share price ended Friday’s session at $18.31.

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

More reading

• This fund returned 30% per annum for 3 years. Here are the ASX shares it’s buying now.
• Tax-busters: 5 fully-franked ASX dividend shares I’d buy for FY25
• These ASX shares could rise 25% to ~50%
• 2 outstanding ASX 200 shares to buy and hold for a decade
• Brokers name 3 ASX shares to buy now

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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.

ASX consumer discretionary shares led the ASX 200 market sectors last week with a minor 0.36% gain over the five trading days.

Meantime, the S&P/ASX 200 Index (ASX: XJO) lost 1.48% to finish the week at 7,724.3 points.

Only two of the 11 market sectors finished the week in the green.

Let’s recap.

Consumer discretionary shares led the ASX 200 sectors last week

ASX 200 consumer discretionary shares are arguably the most susceptible to weakness in today’s inflationary economy, amid high interest rates and the weakest economic growth since COVID.

As we learned earlier this month, gross domestic product (GDP) rose 0.1% in the March quarter and just 1.1% over 12 months.

Such economic conditions generally encourage people to restrict their discretionary spending, as evidenced by household spending data released by the Australian Bureau of Statistics last week.

The data showed Australians are having to allocate more of their money to essential items and cut back on discretionary items.

Robert Ewing, ABS head of business statistics, said:

We saw a 5.8 per cent rise in spending on non-discretionary goods and services, with households also spending more on fuel and food. In contrast, discretionary spending rose 0.6 per cent over the year as households continue to limit their spending on non-essentials.

One factor supporting discretionary spending is low unemployment. Data released by the ABS last week revealed the jobless rate fell by 0.1% in seasonally adjusted terms in May to 4%.

What else happened last week?

United States inflation data released last week suggested global inflation was resuming a downward path.

The US core consumer price index (CPI), which excludes volatile items like food, increased by 0.2% in May. That put the CPI at 3.4% year over year, the lowest inflation rate in three years.

If inflation falls, so will interest rates, and anything indicating this gets the markets excited these days.

The S&P 500 Index reset its all-time again, and ASX 200 shares lurched forward on Thursday on the news, which prompted speculation the same trend would eventuate here.

After its last board meeting in May, the Reserve Bank said it “remains vigilant to the risk of continued high inflation and is not ruling anything in or out” in relation to rate cuts or even a further hike in 2024.

There has been concern that inflation may prove stickier than expected during what economists refer to as the ‘last mile’ of reducing it from 3.6% now to the RBA’s target band of 2% to 3%.

Is there any chance of an interest rate cut in Australia when the Reserve Bank board meets on Tuesday? Find out here.

Which discretionary retail stocks outperformed last week?

Among the best performers last week was Tabcorp Holdings Ltd (ASX: TAH), up 7.91% over the five trading days to close at 66 cents on Friday. This was despite no news from the company.

JB Hi-Fi Ltd (ASX: JBH) shares also did well, rising 5.71% to finish at $63.28 on Friday.

The biggest of the ASX 200 consumer discretionary stocks, Wesfarmers Ltd (ASX: WES), lifted 1.23% to close at $67.90 on Friday.

The Super Retail Group Ltd (ASX: SUL share price rose by 1.06% over the week to finish at $13.38.

Harvey Norman Holdings Limited (ASX: HVN) shares gained 0.78% to close at $4.50 on Friday. 

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five trading days:

S&P/ASX 200 market sector	Change last week
Consumer Discretionary (ASX: XDJ)	0.36%
Information Technology (ASX: XIJ)	0.14%
Healthcare (ASX: XHJ)	(0.17%)
Consumer Staples (ASX: XSJ)	(0.46%)
Financials (ASX: XFJ)	(1.12%)
Energy (ASX: XEJ)	(1.47%)
Communication (ASX: XTJ)	(1.52%)
A-REIT (ASX: XPJ)	(1.56%)
Industrials (ASX: XNJ)	(2.44%)
Utilities (ASX: XUJ)	(2.64%)
Materials (ASX: XMJ)	(4.28%)

The post Here’s how the ASX 200 market sectors stacked up last week appeared first on The Motley Fool Australia.

More reading

• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)
• Where Aussies are spending their money, and the ASX shares that could benefit
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares going gangbusters in June
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Bronwyn Allen has positions in Harvey Norman. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Harvey Norman and Wesfarmers. The Motley Fool Australia has recommended Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.