Category: Stock Market

Investors with a high tolerance for risk might want to take a look at the ASX All Ords stock in this article.

That’s because one leading broker is tipping it to deliver mouth-watering returns over the next 12 months.

Which ASX All Ords stock?

The share in question is Electro Optic Systems Holdings Ltd (ASX: EOS).

Electro Optic Systems, or EOS, operates two business divisions: Defence Systems and Space Systems.

The Defence Systems business specialises in technology for weapon systems optimisation and integration, as well as ISR (intelligence, surveillance and reconnaissance) and C4 systems for land warfare.

Whereas the Space Systems business operates under two entities: Space Technologies and EM Solutions. Space Technologies specialises in applying EOS-developed optical sensors and effectors to detect, track and characterise objects in space. EM Solutions delivers world-leading RF and optical space communications technology.

What is the broker saying?

According to a note out of Bell Potter, its analysts believe that the ASX All Ords stock is being undervalued by the market. It said:

In an effort to highlight the disconnect between EOS’s intrinsic valuation and the current market valuation, we have undertaken a simple valuation of EM Solutions separate from the core operations of the EOS business. We estimate EMS will generate $70.3m in revenue for CY24 (+22% YoY) and assuming an EBITDA margin of ~29%, this implies an underlying EBITDA of $20.4m. Our valuation assumptions are intentionally conservative, utilising a 13.0x EV/EBITDA multiple and applying 100% of the company’s CY24e net debt, our relative valuation generates an implied equity value of $292.0m or $1.70 per share. Based on the current EOS share price, if we ascribe zero value to the Defence Systems and Space Systems (exc. EMS) divisions, the market is currently valuing EMS at approximately 9.3x CY24e EBITDA.

Bell Potter thinks this is wrong and that the Defence Systems business has a lot of value given its leadership position and favourable operating conditions. It said:

The lack of value attributed to EOS Defence Systems is in direct contradiction to its market position and current operating conditions. EOS is a market leader in the RWS market with a growing product portfolio and current beneficiary of significant industry tailwinds. The company recently completed a $35m placement to invest in long lead time RWS cannons based on strong visibility over market demand. This division is at an inflection point, with a relatively fixed operating base (BPe ~$62m) and 40% gross margins, the $155m of revenue in CY23 was the EBITDA breakeven point and thus our forecast revenue growth in future periods will drive substantial increases in bottom-line earnings.

Big return potential

The note reveals that Bell Potter has a buy rating and $2.10 price target on the ASX All Ords share.

Based on its current share price of $1.27, this implies 65% upside for investors over the next 12 months. It concludes:

In our view, the current market valuation of EOS undervalues the EM Solutions business and essentially provides a free call option on the Defence and Space (exc. EMS) divisions, which we believe are well positioned to produce substantial earnings growth in future periods.

The post Guess which undervalued ASX All Ords stock could rocket 65% appeared first on The Motley Fool Australia.

More reading

• As ASX gold stocks cool off, here are 2 to buy when the price is right
• Buy Rio Tinto and these 4 ASX mining stocks in June
• Why analysts love Woodside and these ASX blue chip shares
• Why are Sayona Mining shares down 80% in a year?
• Has the Zip share price ‘risen too rapidly’?

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 Electro Optic Systems. 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 gold stocks are cooling off after a phenomenal three-month run during which time the commodity price soared from US$2,034 per ounce on 28 February to an all-time high of US$2,449.89 on 21 May.

Since that peak, the gold price has slipped to US$2,302 per ounce at the time of writing. ASX gold stocks have also weakened, with the S&P/ASX All Ordinaries Gold Index (ASX: XGD) falling 7% since 21 May.

Among the biggest ASX gold stocks, Northern Star Resources Ltd (ASX: NST) shares are now 7.4% lower since the gold price peaked and Newmont Corporation CDI (ASX: NEM) shares are 6.5% lower.

Shaw and Partners portfolio manager James Gerrish says a fair bit of profit-taking, along with the falling gold price, has dragged ASX gold stocks lower over the past few weeks.

However, Gerrish and his Market Matters funds management team are still bullish on gold over the long term and decided to hold their overweight position amid the sell-off.

They’re now looking for opportunities to buy the dip “as the sector’s pullback gathers momentum”.

In a recent Market Matters newsletter, Gerrish said:

As medium–term bulls, we are looking at levels to potentially start increasing our exposure to the sector.

Remember, this is a sector that’s likely to witness plenty of M&A activity over the coming year.

For example, [in late May], Ramelius Resources Ltd (ASX: RMS) made a play for Westgold Resources Ltd (ASX: WGX).

Gerrish and his Market Matters team say their “ideal roadmap for gold” is the commodity price finding support beneath the US$2,300 per ounce mark.

Here are two gold stocks that Gerrish and his team say are buys when their share prices fall to the right levels.

Bellevue Gold Ltd (ASX: BGL)

This ASX gold stock closed on Tuesday at $1.88, down 5.53% for the day.

The team has a favourable view of Bellevue Gold at about the $1.70 mark, as Gerrish explains:

BGL has advanced over 15% so far in 2024, although recent bond jitters have dampened the performance of the $2.2bn WA-based gold miner.

On [3 June], a 4.8mn block of BGL exchanged hands at $1.93, arguably a good sign that the market still has the appetite for the miner around $2, assuming we don’t hear that directors were the sellers, investors wouldn’t want another Boss Energy Ltd (ASX: BOE)!

We like the risk/reward towards BGL around $1.70 …

Perseus Mining Ltd (ASX: PRU)

This ASX gold stock closed on Tuesday at $2.33, down 6.05% for the day.

The Market Matters analysts see value in Perseus shares at about $2.15 per share.

Gerrish says:

PRU has really outperformed in 2024, surging almost 30% since January 1st.

This $3.1bn stock looks set to break its $2.50 resistance area once the fear of rising interest rates subsides. It even pays a dividend of around 2%, but investors should be aware that its main revenue stream comes from Africa, which can, at times, increase a stock’s volatility.

We like the risk/reward towards PRU around $2.15 …

The post As ASX gold stocks cool off, here are 2 to buy when the price is right appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why are ASX gold shares being trashed on Tuesday?
• Why Chalice Mining, Northern Star, Peninsula Energy, and Service Stream shares are sinking
• Here are the top 10 ASX 200 shares today
• Why this jumbo ASX gold stock is targeting a copper pipeline

Motley Fool contributor Bronwyn Allen 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.

If you don’t have exposure to the mining sector or want to increase your exposure to this side of the market, then read on.

That is because listed below are five top ASX mining stocks that brokers have given the thumbs up to this month.

In addition, making things even sweeter for investors, all five shares have been tipped to rise more than 10% from current levels over the next 12 months.

Let’s now see what these brokers are expecting from the five miners:

BHP Group Ltd (ASX: BHP)

The team at Goldman Sachs thinks that Australia’s largest miner could be a top option for investors this month. The broker recently reinstated coverage on the Big Australian’s shares with a buy rating and $49.00 price target. Based on its current share price of $43.74, this implies potential upside of 12% for investors over the next 12 months.

Lynas Rare Earths Ltd (ASX: LYC)

Goldman also thinks that this ASX mining stock could be a buy right now. In fact, it believes that the market is undervaluing this rare earths miner’s shares. So much so, it currently has Lynas’ shares on its coveted conviction list with a buy rating and $7.40 price target. This represents potential upside of 13% from where they currently trade.

Mineral Resources Ltd (ASX: MIN)

Over at Bell Potter, its analysts think that this mining and mining services company’s shares would be a great pick for investors this month. The broker currently has a buy rating and $84.00 price target on its shares. Based on its latest share price, this implies significant potential upside of 23% over the next 12 months.

Rio Tinto Group Ltd (ASX: RIO)

Goldman Sachs also thinks that Rio Tinto could be an ASX mining stock to buy this month. The broker currently has a buy rating and $138.90 price target on the iron ore and copper giant’s shares. This suggests that its shares could rise by 13% from current levels.

South32 Ltd (ASX: S32)

Finally, analysts at Macquarie think that diversified miner South32 could be a top ASX mining stock for investors to snap up this month. Due largely to its exposure to copper, late last month the broker reaffirmed its outperform rating on its shares with an improved price target of $4.25. Based on its current share price, this implies potential upside of almost 16% for investors over the next 12 months.

The post Buy Rio Tinto and these 4 ASX mining stocks in June appeared first on The Motley Fool Australia.

More reading

• 4 top ASX 200 stocks to buy now for the AI revolution
• Here’s the iron ore price forecast through to 2027
• Don’t listen to the bears! Buy this ASX mining stock
• Guess which popular ASX 200 mining stock could crash over 30%
• Is it time to cash in these 2 ASX large-cap stocks?

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

Having some ASX blue chip shares in your portfolio is always a good idea.

That’s because blue chips tend to have strong business models and talented and experienced management teams. This can make them lower risk options.

Overall, this can make them a great option if you want a firm foundation to build out your portfolio from.

But which ASX blue chips could be buys? Let’s take a look at three that analysts are tipping as buys:

Coles Group Ltd (ASX: COL)

Analysts at Bell Potter think that supermarket giant Coles could be a top option for investors right now. This is due partly to the hard work it is doing on the modernisation of its supply chain. It said:

In the medium term, 1) higher immigration should support grocery spending, and 2) Coles is entering a period of elevated capex intensity as it reinvests to modernise its supply chain and to catch up to competitors on online and digital offerings, which should help Coles maintain its market position.

Bell Potter has a buy rating and $19.00 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Over at Goldman Sachs, its analysts think Telstra could be an ASX blue chip share to buy right now. It is of course Australia’s leading telecom operator.

The broker likes the company due to its low risk earnings growth and opportunities to unlock value through the monetisation of assets. It explains:

We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive. We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn. Although there is some debate around the strategic benefits, we see a strong rationale for monetizing the recurring NBN payment stream, given its inflation-linked, long duration cash flows could be worth $14.5bn to $17.9bn, with no loss of strategic benefit.

Goldman has a buy rating and $4.25 price target on Telstra’s shares.

Woodside Energy Group Ltd (ASX: WDS)

Finally, Morgans thinks that Woodside could be an ASX blue chip share to buy this month. It believes that recent weakness has created an opportunity for investors to buy the energy giant. 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.

Morgans has an add rating and $36.00 price target on its shares.

The post Why analysts love Woodside and these ASX blue chip shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 3 overlooked numbers key to the Telstra share price
• 4 top ASX 200 stocks to buy now for the AI revolution
• Why is the Woodside share price racing ahead of the benchmark today?
• Telstra and these ASX 200 income stocks could be top buys this month

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

Sayona Mining Ltd (ASX: SYA) shares were out of form again on Tuesday.

The lithium miner’s shares started the shortened week with a decline of 5% to 3.7 cents.

This latest decline means that its shares are now down a whopping 80% since this time last year.

To put this into context, if you had invested $10,000 into Sayona Mining’s shares in June 2023, you would now have approximately $2,000 left. That’s $8,000 in paper losses that shareholders are nursing.

But why has this happened? Let’s dig a little deeper and find out.

Why are Sayona Mining shares down 80% in a year?

Firstly, it is important to note that Sayona Mining isn’t an isolated case. A good number of ASX lithium stocks have been sold off over the same period.

For example, Core Lithium Ltd (ASX: CXO) shares are down 90% and Liontown Resources Ltd (ASX: LTR) shares are down over 60%.

The catalyst for this has been a collapse in lithium prices due to a surplus of the white metal.

And with many analysts believing that supply will outstrip demand for the foreseeable future, prices could remain at these levels for some time to come. You only need to look at Goldman Sachs’ forecasts for the lithium price to see this.

This could be particularly bad news for Sayona Mining and its shares. That’s because unlike Core Lithium, which has suspended its mining activities, it is continuing to mine lithium despite these low prices.

So much so, the company is actually spending more to pull lithium out of the ground than it receives from buyers. That’s a terrible business model and is burning through its cash reserves at a rapid rate.

Burning cash like kindling

According to its most recent quarterly update, Sayona Mining’s production increased 18% quarter on quarter to 40,439 dry metric tonnes (dmt).

This was achieved with a unit operating cost of A$1,536 of dmt, which was up 10% quarter on quarter. And while its sales volumes more than doubled to 58,055 dmt, it reported an average realised selling price of A$999 per dmt.

This means that it was losing over A$500 for every tonne of lithium it was sending to customers.

As a result, Sayona Mining’s cash balance dropped from A$158 million at the end of December to A$99 million at the end of March.

Clearly something has to change. But judging by the performance of Sayona Mining shares, investors aren’t overly confident that things will improve any time soon.

The post Why are Sayona Mining shares down 80% in a year? appeared first on The Motley Fool Australia.

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• Why are Sayona Mining shares up 43% in a month?
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• Here is the latest lithium price forecast through to 2027

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.

If you haven’t taken a look at the Zip Co Ltd (ASX: ZIP) share price recently, you might be in for a bit of a shock. Zip, the ASX buy now, pay later (BNPL) stock that took the ASX by storm a few years ago, had an exceptionally rough few years following its stunning 2020.

Since peaking at over $12 a share back in early 2021, investors have endured a precipitous collapse of capital. By mid-2022, the BNPL stock was under 50 cents a share, which was succeeded by a new 52-week low of just 26 cents a share in October 2023.

But ever since then, the Zip share price has staged a stunning recovery. At market close on Tuesday, Zip finished trading at $1.29 a share, up 7.53%. That came after the company hit $1.60 a share back in March.

As it stands today, Zip shareholders have enjoyed a 107.26% return year to date, as well as a gain of 157% over the past 12 months.

Check all of that out for yourself below:

This recovery for the Zip share price can be put down to a number of positive updates from the company.

Most recently, investors appear to have been buoyed by Zip’s April quarterly update, which revealed a 14.6% rise in transaction volumes, as well as a 26.6% rise in quarterly revenues to $219.2 million.

So there would be more than a few Zip shareholders that would have welcomed these gains with gusto. However, one ASX expert is urging caution on the Zip share price moving forward.

ASX expert gives Zip share price a sell rating

As reported by The Bull, John Athanasiou of Red Leaf Securities has just issued the Zip share price with a ‘sell’ rating. Athanasiou doesn’t like the look of what he sees in the BNPL stock right now. He cited valuation concerns and inflationary pressures in Zip’s key markets for his negative view. Here’s what Athanasiou had to say in full:

Revenue of $219.2 million in the third quarter of fiscal year 2024 was up 26.6 per cent on the prior corresponding period. The revenue margin improved to 9.1 per cent. The shares have risen from 59 cents on January 3 to trade at $1.185 on June 6.

We believe the share price has risen too rapidly and is trading at a premium. We’re also concerned about inflationary pressures in the US impacting consumer spending. Investors may want to consider taking a profit at these levels.

That strikes a starkly different tone from the positive broker opinion we covered back in April. At the time, we went through the bullish views of ASX broker UBS. UBS maintained a buy rating on the Zip share price following its April quarterly results. That was alongside a 12-month share price target of $1.55.

Only time will tell which of these two ASX experts is on the money regarding this BNPL stock. They can’t both be right.

The post Has the Zip share price ‘risen too rapidly’? appeared first on The Motley Fool Australia.

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• Why these 3 top ASX 300 stocks dragged the benchmark lower this week

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 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.

Qantas Airways Limited (ASX: QAN) shares could be a great option for investors that are looking for outsized returns.

That’s the view of analysts at Goldman Sachs, which feel that the airline operator’s shares are being severely undervalued by the market.

In light of this, the broker feels that anyone buying today could enjoy a big return on their investment over the next 12 months.

What is the broker saying about Qantas shares?

According to a recent note, the broker has put a buy rating and $8.05 price target on its shares.

Based on the current Qantas share price of $6.16, this implies potential upside of just over 30% for investors between now and this time next year.

To put that into context, a $20,000 investment would become $26,000 if Goldman Sachs is on the money with its recommendation.

Three big reasons to buy

There are three big reasons why Goldman thinks Qantas shares are in the buy zone right now. The first is that its improved earnings capacity is not being reflected in its valuation. It said:

We expect QAN’s earnings capacity to sustainably improve relative to pre-COVID, which is not reflected in Qantas’ current valuation.

In addition, the broker feels that this unwarranted discount will disappear in time once the company demonstrates that its earnings are sustainable at these levels. It adds:

As noted previously, our FY24/25 PBT remains 51%/61% ahead of pre-COVID level despite relatively conservative/cautious RASK forecast settings. We forecast QAN’s FY24e/25e EPS to be at 49%/68% ahead of FY19. Despite this, QAN’s market cap is 4% below and EV is 7% below pre-covid levels. We believe that QAN’s continued demonstration of earnings sustainability will be the key driver of earnings revision hence share price going forward.

Another reason to buy Qantas shares is their valuation in comparison to peers. It highlights that the Flying Kangaroo trades at almost double the discount that they have traded at in recent times. It feels this discount is excessive. The broker adds:

QAN is trading at PE discount of 29% vs US+regional peers vs historical 5Y average discount of 14%. Given QAN’s more conservative revenue profile, recent operational performance improvements, which implies that further investment in customer service would not be required, we believe that the discount is excessive.

All in all, Goldman appears to believe that this makes Qantas a great option for investors that are looking for some new additions to their portfolios right now.

The post 3 big reasons to buy Qantas shares now appeared first on The Motley Fool Australia.

More reading

• 2 ASX large-cap stocks that look cheap right now
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• Here’s where I see the Qantas share price ending in FY 2025
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• Why Qantas could be one the best shares to buy in the Asia-Pacific

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.

There are a lot of options for income investors on the Australian share market. So many it can be hard to decide which ASX dividend shares to buy.

To narrow things down, let’s take a look at a few that Goldman Sachs is tipping as buys this month. They are as follows:

Challenger Ltd (ASX: CGF)

The broker thinks that this annuities company could be an ASX dividend share to buy right now.

It likes Challenger due to its exposure to the superannuation market and the favourable sales environment for annuities. It explains:

CGF is Australia’s largest retail and institutional annuity provider across Term and Lifetime annuities with a funds management business. We are Buy rated on the stock. We like CGF because: 1) it has exposure to the growing superannuation market across Life and Funds Management; 2) higher yields should drive a favorable sales environment for retail annuities as well as an improvement in margins; 3) its annuity book growth looks well supported through a diversified distribution strategy.

In respect to dividends, the broker is forecasting fully franked dividends of 26 cents per share in FY 2024 and then 27 cents per share in FY 2025. Based on the current Challenger share price of $6.68, this will mean dividend yields of 3.9% and 4%, respectively.

The broker currently has a buy rating and $7.50 price target on its shares.

QBE Insurance Group Ltd (ASX: QBE)

Goldman Sachs also thinks that this insurance giant could be a top ASX dividend share for income investors to buy.

It likes the company due to its exposure to commercial rates. It explains:

We are Buy-rated on QBE because 1) QBE has the strongest exposure to the commercial rate cycle. 2) QBE’s achieved rate increases continue to be strong & ahead of loss cost inflation. 3) North America on a pathway to improved profitability. 4) Valuation not demanding. 5) Strong ROE.

The broker is forecasting dividends per share of 62 US cents (94 Australian cents) in FY 2024 and 63 US cents (95.5 Australian cents) in FY 2025. Based on the current QBE share price of $18.36, this equates to dividend yields of 5.1% and 5.2%, respectively.

Goldman has a buy rating and $20.90 price target on its shares.

Super Retail Group Ltd (ASX: SUL)

A third ASX dividend share that Goldman Sachs is bullish on right now is Super Retail. It is the owner of popular store brands BCF, Supercheap Auto, Macpac, and Rebel.

The broker believes the company is well-positioned to navigate the tough operating environment thanks to its vast loyalty program. It said:

We believe SUL will display resilience in a softer economic environment that is built upon its competitive advantage of high loyalty (~11.0m active members accounting for >75% of sales) and this will be further bolstered as the company launches the Rebel loyalty program and continues to build personalisation capabilities. Hence, we are Buy-rated on SUL.

Goldman expects Super Retail to pay fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on its current share price of $13.21, this will mean yields of 5.1% and 5.5%, respectively.

The broker has a buy rating and a $17.80 price target on its shares.

The post Goldman Sachs says these 3 ASX dividend shares are buys 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 positions in and has recommended Goldman Sachs Group and Super Retail Group. The Motley Fool Australia has positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Challenger. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) share prices are always changing, which can open up compelling buying opportunities with the right businesses at the right price.

In this article, I’m going to examine where one leading fund manager is seeing value amid recent volatility and shifting valuations.  

Audinate Group Ltd (ASX: AD8)

This is the company behind Dante, a media networking solution that’s used in the professional audio-visual industry. It is used for numerous purposes including universities, conferences, recording studios, amusement parks, zoos, houses of worship, arenas and stadiums, theatres and so on.

Fund manager Philippe Bui from Medallion Financial Group wrote on The Bull that Audinate is a buy because this ASX tech share “still appears to be in the early stages of a long-term growth trajectory.”

Bui points out the ASX 200 share is “growing quickly” in the video segment of the market, yet the Audinate share price has fallen close to 30% since March 2024. He thinks it’s at an “attractive entry point” after the decline and the “strong” report it revealed in February.

In that FY24 half-year result, revenue rose by 47.7% to US$30.4 million, while net profit after tax (NPAT) grew from A$5.1 million to A$4.7 million.

The fund manager revealed that Audinate is the top holding in its ASX shares growth fund.

Challenger Ltd (ASX: CGF)

Challenger is an ASX 200 financial share which is the largest provider of annuities in Australia.

After a difficult period when interest rates were close to 0%, Challenger is recovering. It’s now able to offer annuities with more appealing yields to older Australians who want an income stream with interest rates now being much higher. Challenger says 2.5 million Australians are set to retire over the next 10 years, which could drive demand for annuities.

The fund manager said Challenger shares were trading on an “undemanding” price/earnings (P/E) ratio multiple, and it has a fully franked dividend yield of around 4%. According to the forecast on Commsec, the Challenger share price is valued at under 13x FY24’s estimated earnings.

Bui noted that Challenger recently reaffirmed that it expects its FY24 annual result to be at the top end of its normalised net profit before tax guidance range of between $555 million and $605 million.

The post ‘Attractive entry point’: Fundie says buy these ASX 200 shares now appeared first on The Motley Fool Australia.

More reading

• Goldman Sachs says these 3 ASX dividend shares are buys
• Here are the top 10 ASX 200 shares today
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• 4 top ASX dividend shares to buy next week
• 3 ASX growth stocks I’d buy with $5,000

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

On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a very disappointing session and dropped deep into the red. The benchmark index fell 1.3% to 7,755.4 points.

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

ASX 200 expected to fall again

It looks set to be another red day for the Australian share market on Wednesday despite a reasonably positive session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 43 points or 0.55% lower. On Wall Street, the Dow Jones fell 0.3%, but the S&P 500 rose 0.3% and the Nasdaq stormed 0.9% higher. Both the S&P 500 and Nasdaq closed at record highs. This was thanks largely to Apple shares, which rose 7% due to its AI news.

Oil prices rise

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after oil prices edged higher overnight. According to Bloomberg, the WTI crude oil price is up 0.2% to US$77.87 a barrel and the Brent crude oil price is up 0.3% to US$81.85 a barrel. Optimism over summer fuel demand has boosted oil prices this week.

Collins Foods CEO resigns

The Collins Foods Ltd (ASX: CKF) share price will be on watch today after the KFC restaurant operator announced the exit of its CEO. According to the release, the Drew O’Malley has informed the board of his intention to step down effective 1 July. Kevin Perkins will remain in the role of interim managing director and CEO as the board undertakes a local and international CEO search. Perkins has been in charge on an interim basis while Mr O’Malley was on an extended leave of absence.

Gold price rises

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a better day after the gold price rose overnight. According to CNBC, the spot gold price is up 0.2% to US$2,331.3 an ounce. Traders were bidding the precious metal higher ahead of the release of US inflation data and the US Federal Reserve meeting.

Judo Capital joins the ASX 200

The ASX 200 index has a new member. After the market close on Tuesday, S&P Dow Jones Indices announced that building materials company CSR Ltd (ASX: CSR) will be removed from the ASX 200 index next week. This is subject to shareholder and final court approval of the scheme of arrangement which will see the company acquired by Compagnie de Saint-Gobain. Replacing CSR in the illustrious index will be business lender Judo Capital Holdings Ltd (ASX: JDO).

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

More reading

• Here are the top 10 ASX 200 shares today
• Why are ASX gold shares being trashed on Tuesday?
• Why Chalice Mining, Northern Star, Peninsula Energy, and Service Stream shares are sinking
• ASX 200 shares vs. property: AMP reveals predictions for 2024 growth
• Why is the Woodside share price racing ahead of the benchmark today?

Motley Fool contributor James Mickleboro has positions in Collins Foods and Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple. The Motley Fool Australia has recommended Apple and Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.