Category: Stock Market

The ASX dividend share Metcash Ltd (ASX: MTS) may provide a high level of passive income to investors in the coming years for two key reasons.

Now, Metcash may not be a household name, but the company supports many well-known food and drink retailers in Australia.

The ASX dividend share supplies IGA supermarkets around Australia and also supplies numerous Independent Brands Australia (IBA) liquor businesses including Cellarbrations, The Bottle-O, IGA Liquor and Porters Liquor. The IBA retail network has more than 1,800 ‘tier one’ bannered stores across Australia and New Zealand.

Metcash also owns several hardware brands, including Mitre 10, Home Timber & Hardware, and Total Tools. It supports independent operators under the small-format convenience banners Thrifty-Link Hardware and True Value Hardware and a number of unbannered independent operators.

Due to its exposure to these industries, I think the ASX dividend share can generate fairly resilient profits. In addition, the company’s dividend yield is expected to be high in the next few financial years. Let’s investigate.

1. High dividend payout ratio

Every profitable company needs to decide its dividend policy. It can choose to pay a larger or smaller dividend than the previous year, simply pay out a particular percentage of its net profit after tax (NPAT) each year, or not pay a dividend at all.

Metcash’s board of directors has decided on a healthy dividend payout ratio of 70% of underlying NPAT. I think that’s high enough to deliver a pleasing dividend yield while still keeping some profit within the business to reinvest for more growth.

According to CMC Markets, Metcash is projected to pay a dividend per share of 21.9 cents in FY26. This translates into an expected grossed-up dividend yield of around 8.25%.

2. Low earnings multiple

A higher price/earnings (P/E) ratio can push down the yield, while a lower P/E ratio can lead to a higher dividend yield from an ASX dividend share.

Metcash usually trades on a relatively low P/E ratio compared to some of its peers.

The estimates on CMC Markets suggest the ASX dividend share could generate earnings per share (EPS) of 28.1 cents in FY24 and 30.4 cents in FY26. Those numbers would put the current Metcash share price at 13x FY24’s estimated earnings and 12x FY26’s estimated earnings.

These figures mean Metcash shares are much cheaper than some ASX blue chip stocks. For example, the Wesfarmers Ltd (ASX: WES) share price is valued at 30x FY24’s estimated earnings and the Woolworths Group Ltd (ASX: WOW) share price is valued at 24x FY24’s estimated earnings.

If Metcash can keep growing earnings over the longer term, then the valuation and dividend may appeal to investors.

The post This ASX dividend share could pay an 8% yield in 2026! appeared first on The Motley Fool Australia.

More reading

• 2 ASX dividend shares offering over 5% yield
• Where Aussies are spending their money, and the ASX shares that could benefit
• 3 lower-risk ASX dividend shares for retirees
• Here’s how I’d target a $2,000 second income by investing $35 a week
• ASX investors may choose supermarkets over Wesfarmers shares after ACCC inquiry: broker

Motley Fool contributor Tristan Harrison has positions in Metcash. 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 Wesfarmers. The Motley Fool Australia has recommended Metcash. 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 300 Index (ASX: XKO) stock G8 Education Ltd (ASX: GEM) may be a contender to deliver good returns, according to a lead portfolio manager from Wilson Asset Management.

G8 Education describes itself as one of Australia’s largest providers of quality early childhood education and care. It has more than 400 early learning centres across 21 brands.

As Oscar Oberg recently discussed in the Australian Financial Review, the childcare centre operator is an ASX 300 share that WAM is most bullish about.

Reasons to like the ASX 300 stock

WAM’s Oberg thinks G8 Education shares are the most undervalued by the market.

He acknowledged the company’s “struggle” with negative earnings per share (EPS) revisions and debt issues over the last decade. The company had even conducted a capital raising during COVID-19 in 2020.

WAM’s interest in G8 Education was piqued after the company appointed its new CEO, former BIG W managing director Pejman Okhovat.

According to the fund manager, Okhovat’s strategy for G8 Education was “relatively straightforward.” The company would aim to boost occupancy, stabilise costs, and divest underperforming childcare centres.

Oberg noted that G8 Education had a “very strong balance sheet” and could buy back between 5% to 10% of the shares on issue.

WAM’s research suggests this strategy can lead to the ASX 300 stock delivering organic EPS growth of between 10% to 15% each year over the next five years.

G8 Education share price valuation and upside

On WAM’s numbers, the G8 Education share price is valued on a forward price/earnings (P/E) ratio of 12 times, which Oberg described as “cheap”.

The fund manager believes the strong level of organic growth can deliver a re-rating to the G8 Education shares and raise the P/E ratio. It anticipates the G8 Education share price will have a “50% upside” in the next 12 to 24 months.

WAM’s positivity on the ASX 300 stock gives it a “large weighting” in the portfolio.

Commentary on the economic conditions

Oberg also had this to say about current economic conditions (courtesy of AFR):            

Conditions are quite patchy, especially for small-cap companies. This financial year represents the third year in a row that small caps will underperform the Australian market.

We do think that the tide will turn as soon as we see interest rates decline, and we saw an example of this from December 2023 to March 2024 where small caps had a great period.

The post Prediction: The ASX 300 stock with 50% upside! appeared first on The Motley Fool Australia.

More reading

• This ASX dividend share could pay an 8% yield in 2026!
• Buy these ASX 200 shares that could rise 30%+ before it’s too late
• Buy Coles and these ASX 200 dividend stocks
• 5 things to watch on the ASX 200 on Monday
• Income booster: Here’s an ASX dividend stock that yields 6% and provides quarterly cash payments

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.

Investors that are on the lookout for big returns for their investment portfolios might want to check out the two shares named below.

Here’s what sort of returns brokers are tipping from them over the next 12 months:

Qantas Airways Limited (ASX: QAN)

Analysts at Goldman Sachs believe that this airline operator could provide investors with huge returns between now and this time next year.

The broker currently has a conviction buy rating and $8.05 price target on its shares. Based on its current share price of $6.09, this implies potential upside of 32% for investors. In addition, it is worth highlighting that Goldman believes that Qantas will bring back its dividend at long last in FY 2025. It is forecasting a 4.9% dividend yield for the financial year.

Goldman highlights that the Flying Kangaroo’s valuation is still lower than pre-COVID times despite having structurally and sustainably stronger earnings. In addition, it notes that its shares are trading at a sizeable discount to what investors are paying to own US airlines on Wall Street. It explains:

QAN is trading 4% below pre-COVID market capitalization with the enterprise value still 7% lower despite a structurally improved earnings capacity. Relative to regional/ US peers (median PE of 9.1x), QAN is trading on a 29% discount at 6.4x FY25 PE. This is more than 2x below the historical 5Y average discount of 14%. We expect this gap to narrow as QAN delivers earnings that are sustainably above pre-COVID levels and demonstrates ability/ willingness to distribute capital to shareholders while renewing the fleet.

Regis Resources Ltd (ASX: RRL)

If you are looking for exposure to the gold sector then it could be well worth checking out Regis Resources. It is one of Australia’s largest gold miners with a number of operating mines in Western Australia.

Bell Potter believes that the company is significantly undervalued at current levels and big returns could be on the cards for investors buying at today’s price. It has a buy rating and $2.80 price target on its shares, which implies potential upside of 54% over the next 12 months. 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.

The post Buy these ASX 200 shares that could rise 30%+ before it’s too late appeared first on The Motley Fool Australia.

More reading

• What’s ahead for ASX 200 travel shares in FY 2025?
• Here are the top 10 ASX 200 shares today
• How AI can help Qantas shares fly higher
• Could Qantas shares be poised to catch some Chinese tailwinds?
• 5 things to watch on the ASX 200 on Tuesday

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’re an income investor on the lookout for new portfolio additions, then read on.

That’s because listed below are three ASX 200 dividend stocks that analysts believe could be quality options for investors right now.

Here’s what they are forecasting from them in the near term:

Coles Group Ltd (ASX: COL)

Analysts at Morgans think that Coles could be an ASX 200 dividend stock to buy. It is of course one of the big two supermarket operators with over 800 stores across the country. Coles also has a large liquor network comprising almost 1,000 stores across brands such as First Choice and Liquorland.

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

As for dividends, its analysts are forecasting Coles to pay fully franked dividends of 66 cents per share in FY 2024 and 69 cents per share in FY 2025. Based on the current Coles share price of $17.11, this will mean dividend yields of 3.85% and 4%, respectively.

Super Retail Group Ltd (ASX: SUL)

Goldman Sachs thinks that Super Retail could be an ASX 200 dividend stock to buy right now. It is the retail group behind popular store brands BCF, Macpac, Rebel, and Super Cheap Auto.

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

Goldman is expecting the retailer to offer good dividend yields in the near term. It is forecasting fully franked dividends per share of 67 cents in FY 2024 and then 73 cents in FY 2025. Based on the latest Super Retail share price of $13.89, this will mean good yields of 4.8% and 5.25%, respectively.

Woodside Energy Group Ltd (ASX: WDS)

Over at Morgans, its analysts are also positive on Woodside Energy and see it as an ASX 200 dividend stock to buy this week. It is one of the world’s largest energy producers with high-quality operations across the globe.

Morgans’ analysts recently stated that they see “now as a good time to add to positions” following the recent underperformance of its shares. The broker has an add rating and $36.00 price target on them.

In respect to income, its analysts are forecasting Woodside to pay fully franked dividends of $1.25 per share in FY 2024 and then $1.57 per share in FY 2025. Based on its current share price of $27.52, this represents attractive dividend yields of 4.5% and 5.7%, respectively.

The post Buy Coles and these ASX 200 dividend stocks appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Top ASX passive income shares to buy before June 30
• Top 10 most traded ASX shares and US stocks in May
• ASX 200 energy shares smashing the benchmark amid national gas crisis
• Mining, supermarkets, and property: 3 ASX 200 dividend stocks to buy

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

On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week on a positive note. The benchmark index rose 0.35% to 7,796 points.

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

ASX 200 expected to fall

The Australian share market looks set to fall 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 16 points or 0.2% lower this morning. In the United States, the Dow Jones was up 0.05%, the S&P 500 edged 0.15% lower, and the Nasdaq dropped 0.2%.

Oil prices soften

ASX 200 energy shares 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 0.7% to US$80.73 a barrel and the Brent crude oil price was down 0.55% to US$85.24 a barrel. This couldn’t stop oil from recording its second weekly gain amid optimism gasoline demand.

Sell Pilbara Minerals shares

The Pilbara Minerals Ltd (ASX: PLS) share price remains overvalued according to analysts at Goldman Sachs. In response to news of its P2000 lithium expansion, the broker has reaffirmed its sell rating and $2.80 price target. This implies potential downside of 10% for investors from current levels. The broker commented: “We see the study result for the next leg of expansion as underwhelming vs. market expectations on a combination of capex, size, and timing.”

Gold price tumbles

It could be a tough start to the week for ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price tumbled on Friday. According to CNBC, the spot gold price was down 1.6% to US$2,331.2 an ounce. This was driven by a stronger US dollar and higher treasury yields.

Paladin Energy could be takeover target

ASX 200 uranium producer Paladin Energy Ltd (ASX: PDN) will be one to watch on Monday. That’s because the miner could potentially be a takeover target for a large industry player according to reports in the AFR. The media outlet has suggested that Canada’s Fission Uranium Corp (TSX: FCU) could have its eyes on the company. Paladin Energy has projects in Africa, Australia, and Canada.

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

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• These ASX shares could rise 20% and ~40%
• Top ASX passive income shares to buy before June 30
• Why Guzman y Gomez, KMD, Mineral Resources, and Pilbara Minerals shares are sinking
• Top 10 most traded ASX shares and US stocks in May

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.

Investors seeking stable income in a volatile market often turn to dividend stocks. One such compelling option on the ASX is Rural Funds Group (ASX: RFF), a real estate investment trust (REIT) specialising in agricultural assets.

With an attractive distribution yield of approximately 6% and the benefit of quarterly cash payments, Rural Funds offers a unique opportunity for income-focused investors.

Even better, Rural Funds is set to pay its quarterly dividends next week. Is now the perfect time to buy Rural Funds shares ahead of its ex-dividend date on 27 June?

Understanding Rural Funds Group

Rural Funds Group is Australia’s only diversified agricultural REIT. It owns a portfolio of high-quality agricultural assets, including almond orchards, vineyards, cattle and cotton properties, macadamia orchards, and water entitlements.

These assets are leased to experienced operators under long-term agreements, providing a stable income stream and potential for capital growth.

Farmland has been a valuable asset for centuries, and it is likely it will remain so for the foreseeable future. The long-term stability appeals to many investors, as my colleague Tristan highlighted. Additionally, the ongoing growth of both Australian and global populations is a significant tailwind for the business.

Why Rural Funds stands out for dividend investors

The Rural Funds unit price has dropped 35% from its all-time high of $3.18 in January 2022 and has hovered around the $2 mark over the past year.

At the current price, Rural Funds offers a distribution yield of 5.67%, higher than many other dividend-paying stocks on the ASX.

Unlike many ASX dividend shares that pay dividends semi-annually, Rural Funds provides quarterly distributions. This regular income can be especially beneficial for retirees who rely on passive income for their living expenses.

Rural Funds’ diversified portfolio across different agricultural sectors reduces the risk associated with any single commodity or market. The REIT’s properties are leased to reputable operators under long-term agreements, often with built-in rental escalations.

Trading below its book value

After the recent weakness in its unit price, Rural Funds is trading below its book value. Rural Funds is trading at a price-to-book (P/B) ratio of 0.73x based on its reported number. However, this includes its water entitlements at their book values. Adjusting for this, reflecting the estimated market value of these assets, the company estimates its net asset value (NAV) at $3.07 per unit as of 31 December 2023. This makes its adjusted P/B ratio even lower, at 0.67x.

Such attractive valuations caught eyes of some analysts. Bell Potter highlighted its attractive valuation and high distribution yield as the reasons to like Rural Funds, as my colleague James said.

The Rural Funds Group share price finished Friday’s trading up 0.98% at $2.07.

The post Income booster: Here’s an ASX dividend stock that yields 6% and provides quarterly cash payments appeared first on The Motley Fool Australia.

More reading

• 9 popular ASX REITs with ex-dividend dates next week
• Buy Telstra and these ASX dividend stocks now
• Analysts name 3 high yield ASX dividend stocks to buy
• 4 ASX income stocks with big dividend yields to buy now
• 3 ASX shares trading below their book values

Motley Fool contributor Kate Lee has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Rural Funds Group. 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:

Life360 Inc (ASX: 360)

According to a note out of Bell Potter, its analysts have retained their buy rating on this location technology company’s shares with an improved price target of $17.75. Bell Potter notes that Life360 has announced that its Life360 app has now surpassed 2 million paying circles. This was notably ahead of the broker’s expectations. In fact, Bell Potter was only expecting 1.98 million paying circles at the end of the first half. It feels this bodes well for the company going into the seasonally strong third quarter of the year. As a result, its analysts appear confident that the company is destined to deliver another strong result this year. The Life360 share price ended the week at $15.66.

Light & Wonder Inc (ASX: LNW)

A note out of Morgans reveals that its analysts have initiated coverage on this gambling products and services provider’s shares with an add rating and $172.00 price target. According to the note, the broker has been impressed with Light & Wonder’s restructuring and rebranding. It notes that this has resulted in the significant capture of land-based market share in Australia. While that is positive, the real reason Morgans is bullish is that it believes Light & Wonder can replicate this in the massive United States market. In addition, its analysts highlight that its digital segments are performing well, with its social casino division, SciPlay, significantly outpacing the rest of the market. The Light & Wonder share price was fetching $152.18 at Friday’s close.

Woolworths Group Ltd (ASX: WOW)

Analysts at Morgan Stanley have upgraded this supermarket giant’s shares to an overweight rating with an improved price target of $37.00. According to the note, the broker made the move in response to the release of the results of a major household survey. These results have made the broker more positive on the supermarket industry. This is because it feels that the survey points to consumer trends that will lead to better than expected same store sales in FY 2025. In addition, Morgan Stanley believes the survey point to Woolworths being the biggest winner from these trends. As a result, it has promoted the company to be its top industry pick. The Woolworths share price ended the week at $33.63.

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

More reading

• The Woolworths share price is down 16%: Time to buy the stock?
• Brokers name 3 ASX shares to buy now
• These 3 top ASX 200 shares just earned substantial broker upgrades. Here’s why
• Here are the top 10 ASX 200 shares today
• Could Woolworths shares beat the market in FY25?

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.

Having passive income would certainly be very helpful in the current environment.

Unfortunately, unless you’re lucky enough to already have a bank account filled to the brim with cash, it’s going to be too late to generate a sizeable income from the share market immediately to combat the cost of living crisis.

However, don’t let that stop you from making it a long term goal, so that you are ready to tackle any cost of living shocks that could happen in the future.

Generating $1,000 of monthly passive income from the ASX

If you wish to pull in $1,000 of monthly passive income from the ASX, you’re going to need to generate $12,000 of dividends each year.

The good news is that there are a fair number of ASX shares on the local bourse that analysts are forecasting to provide 6%+ yields. This includes the likes of APA Group (ASX: APA), Stockland Corporation Ltd (ASX: SGP), and Accent Group Ltd (ASX: AX1).

If you are able to build a diversified portfolio of ASX shares that provides you with an overall yield of 6%, you would need a portfolio valued at $200,000 to generate total dividends of $12,000 a year.

Investors that already have this amount of cash to invest can now do this and relax and watch the passive income come in. But if you’re starting from zero, you will need a plan.

How to get started

The first step for passive income investors to take is to make consistent investments in the share market.

For example, if you can invest $5,000 into the share market each year, your portfolio would grow to be worth $200,000 in 16 years if you achieved an average total return of 10% per annum. This is broadly in line with historical averages, so not guaranteed but certainly possible.

After which, investors will need to find a high quality group of ASX shares to invest these funds into.

Investors may wish to build a diverse portfolio by splitting their $5,000 investment across a number of ASX shares. This could also include ETFs, which allow investors to buy large groups of shares in one go.

Next, let compounding work its magic. This is what happens when you earn returns on top of returns. It essentially supercharges your wealth, particularly the longer you leave it.

For example, 10 years of investing $5,000 and earning a 10% per annum return would turn into $88,000. But if you keep going just six more years, you will have grown your portfolio by a further $112,000 to the target amount of $200,000.

At that point, you now have enough to start generating material passive income from the ASX.

Overall, by following these steps, you could turn the ASX into your own personal ATM.

The post ASX passive income: Earn $1000/month appeared first on The Motley Fool Australia.

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• 3 ASX 300 real estate shares with attractive dividend yields
• Passive income powerhouses! 3 ASX shares I’d consider buying for rising dividends
• Buy these excellent ASX 200 dividend shares for very juicy yields
• 10 ASX shares that have raised dividends for a decade

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

If you’re a fan of ASX growth shares, then you will be pleased to know that analysts are predicting great returns from the seven listed below.

Here’s what you need to know about these top shares:

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share that could be a buy is Aristocrat Leisure. It is one of the world’s leading gaming technology companies with a portfolio of pokie machines, digital games, and a fledgling real money gaming business.

Analysts at Citi are very positive on the company and have a buy rating and $53.00 price target on its shares.

Lovisa Holdings Ltd (ASX: LOV)

Another ASX growth share to look at is Lovisa, which is a rapidly growing fashion jewellery retailer.

Bell Potter is very positive on the company due to its global expansion. In fact, it believes Lovisa can grow its network by 10% per annum between FY 2023 and FY 2034. This is expected to support strong earnings growth over the next decade.

The broker currently has a buy rating and $36.00 price target on Lovisa’s shares.

NextDC Ltd (ASX: NXT)

Another ASX growth share that is rated as a buy is NextDC. It is one of Asia’s most innovative data centre-as-a-service providers.

Morgan Stanley is very positive on the company’s outlook. This is thanks to its belief that the data centre market will grow materially over the remainder of the decade.

The broker currently has an overweight rating and $20.00 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share to look at is Temple & Webster. It is Australia’s leading online furniture and homewares retailer.

Temple & Webster has been growing strongly in recent years thanks to the structural shift online. But the good news is that this shift is still in its early stages in this category compared to other Western markets.

As a result, the team at Morgan Stanley believes there’s still plenty more growth to come. It has put an overweight rating and $12.25 price target on its shares.

Webjet Limited (ASX: WEB)

A fifth ASX growth share that could be a buy is online travel booking company Webjet.

Morgans is bullish on the company due partly to its key WebBeds B2B business. It notes that there is still “significant market share still up for grabs,” which leaves Webjet well-positioned for the future.

Morgans has an add rating and price target of $11.20 on Webjet’s shares.

WiseTech Global Ltd (ASX: WTC)

Another ASX growth share that has been tipped as a buy is WiseTech Global.

It is the logistics solutions company behind the CargoWise One logistics management platform. This platform is integral to the global logistics industry, allowing users to execute complex logistics transactions and manage freight operations from a single, easy-to-use platform.

Demand continues to grow for CargoWise One, which is supporting very strong recurring revenue growth. It is partly for this reason that UBS currently has a buy rating and $112.00 price target on its shares.

Xero Ltd (ASX: XRO)

A final ASX growth share that could be a buy is Xero. It is a cloud accounting platform provider with an estimated global market opportunity of 100 million small to medium sized businesses. This compares to its current subscriber base of approximately 4.2 million.

Goldman Sachs believes this gives the company a multi-decade growth runway. Its analysts have a buy rating and $164.00 price target on its shares.

The post 7 excellent ASX growth shares to buy next week appeared first on The Motley Fool Australia.

More reading

• What’s ahead for ASX 200 travel shares in FY 2025?
• 1 ASX dividend stock to buy for growth and stay for a 5% yield
• These 3 top ASX 200 shares just earned substantial broker upgrades. Here’s why
• Up 78% in a year, is it too late to buy Lovisa shares?
• Here are the top 10 ASX 200 shares today

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

ASX 200 utilities shares led the market sectors last week, with an impressive 4.21% lift over the five trading days.

The S&P/ASX 200 Index (ASX: XJO) gained 1.02% over the week to finish at 7,796 points on Friday.

Eight of the 11 market sectors finished the week in the green.

Let’s review.

Utilities shares led the ASX sectors last week

Among the largest of the 22 ASX 200 utilities companies, the outperformer for price growth this week was Origin Energy Ltd (ASX: ORG).

Origin shares rose by 5.85% to finish at $10.76 on Friday. There was no price-sensitive news from Origin this week.

The AGL Energy Limited (ASX: AGL) share price lifted 3.03% to $10.55 this week, also on no price-sensitive news.

APA Group (ASX: APA) shares rose 0.12% over the five trading days to finish at $8.40.

On Friday, the energy infrastructure business announced an estimated final distribution of 29.5 cents per share. The record date is 28 June and the payment date is 18 September.

Utilities small-caps Frontier Energy Ltd (ASX: FHE) and Duxton Water Ltd (ASX: D2O) had a great week.

Frontier Energy shares gained 7.95% to finish at 48 cents on Friday.

Last week the company announced it had signed contracts with Western Power to begin detailed design and procurement work for stage one of its Waroona Renewable Energy Project.

Duxton Water shares lifted 6.55% to close at $1.47 on Friday. The company did not release any news last week.

The second strongest sector last week was financials, up 2.08%.

The ASX 200 bank stocks continued to test multi-year high prices last week.

On Friday, Commonwealth Bank of Australia (ASX: CBA) shares reset their record high yet again. The biggest ASX 200 bank stock peaked at $128.25 per share on Friday but closed the week at $127.68.

Also last week, National Australia Bank Ltd (ASX: NAB) shares reached a nine-year high of $36.42.

Also, Bendigo and Adelaide Bank Ltd (ASX: BEN) hit its highest price in almost five years at $11.42.

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
Utilities (ASX: XUJ)	4.21%
Financials (ASX: XFJ)	2.08%
Healthcare (ASX: XHJ)	1.92%
Communication (ASX: XTJ)	1.86%
Consumer Staples (ASX: XSJ)	1.71%
Consumer Discretionary (ASX: XDJ)	1.03%
A-REIT (ASX: XPJ)	0.76%
Energy (ASX: XEJ)	0.75%
Industrials (ASX: XNJ)	(0.24%)
Information Technology (ASX: XIJ)	(0.62%)
Materials (ASX: XMJ)	(1.08%)

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

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Motley Fool contributor Bronwyn Allen has positions in Commonwealth Bank Of Australia. 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 Apa Group and Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.