Category: Stock Market

Are you hunting for ASX dividend stocks to buy? If you are, it could be worth looking at the ones in this article.

That’s because they have all recently been named as buys and tipped to offer attractive dividend yields. Here’s what you need to know about them:

Centuria Industrial REIT (ASX: CIP)

The first ASX 200 dividend stock that could be a buy according to analysts is Centuria Industrial.

It is Australia’s largest domestic pure play industrial property investment vehicle. Centuria Industrial owns a portfolio of 88 high-quality, fit-for-purpose industrial assets worth a collective $3.8 billion. Management notes that these assets are situated in key in-fill locations and close to key infrastructure.

UBS is positive on the company and currently has a buy rating and $3.71 price target on its shares.

As for dividends, the broker is expecting Centuria Industrial to pay dividends per share of 16 cents in both FY 2024 and FY 2025. Based on the current Centuria Industrial share price of $3.10, this will mean dividend yields of 5.15% for income investors across both years.

Coles Group Ltd (ASX: COL)

Another ASX 200 dividend stock that could be a great option for income investors is supermarket giant Coles.

That’s the view of analysts at Morgans, which believe that company is well-placed to reward shareholders with attractive dividend yields in the coming years.

It is 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 $17.17, this implies yields of approximately 3.85% and 4%, respectively.

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

South32 Ltd (ASX: S32)

A third ASX 200 dividend stock that could be a buy for patient income investors is mining giant South32.

Although the miner may not be in a position to pay a big dividend this year, things could soon change.

That’s because the team at Goldman Sachs believes that its dividend could increase significantly. This is thanks to the favourable outlook for copper, aluminium, zinc, and met coal prices.

Goldman is forecasting fully franked dividends per share of 4 US cents in FY 2024, 10 US cents in FY 2025, and then 16 US cents in FY 2026. Based on its latest share price of $3.70 and current exchange rates, this will mean yields of 1.6%, 4%, and 6.5%, respectively.

The broker currently has a buy rating and $4.00 price target on South32’s shares.

The post Mining, supermarkets, and property: 3 ASX 200 dividend stocks to buy appeared first on The Motley Fool Australia.

More reading

• 9 popular ASX REITs with ex-dividend dates next week
• Coles shares flat as Choice report says competitor Aldi cheapest
• Are ASX REITs a good investment right now?
• 3 of the best ASX 200 blue chip shares to buy now
• 3 reasons to be positive on ASX 200 shares in FY25 (and 3 to be wary)

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

The Guzman y Gomez Ltd (ASX: GYG) share price soared more than 30% on its first day on the ASX, trading at around $30. Investors that bought shares at $22 are already sitting on big gains.

Interested prospective investors now face a difficult question: Is the Mexican food business a good investment or too expensive?

I wrote several days ago that I planned to buy GYG shares. After seeing such a strong rise on the opening day, I decided not to buy at $30 on the first day amid the strong buying interest.

Why did the GYG share price pop?

Put simply, a large number of investors wanted to buy while not many shares were for sale. The management and large institutional investors seemed to want to keep their shares, so buyers had to pay what sellers were asking for if they wanted shares on the first day.

According to reporting by the Australian Financial Review, Cyan Investment Management’s Dean Fergie believes it was fear of missing out (FOMO) that led to the huge increase in the Guzman y Gomez share price. Fergie said:

I feel the whole price is a bit engineered, there’s not a lot of free float, so you’re not getting new buyers in there. And the people that are in there have an incentive to keep the share price high in the short term.

If you’re a big fund with a pile of money, you’re probably going to be buying a few shares to keep the price nice and high … so my cynical view is that until all the escrows are out and there’s a bunch of free float for the stock, I don’t know how relevant the actual price is for the long-term valuation.

I feel the bottom-line earnings numbers, even taking into account potential growth going forward, just don’t stack up from a valuation perspective – I’m a fundamental bottom-line investor rather than a hype and excitement kind of guy.

There’s two sides of the coin, you’ve got people who are invested and they’re either believers or want to ride the hype and they’re pumping it up, and then there are others like me that aren’t involved and saying this just doesn’t make any financial sense.

Is the Guzman y Gomez share price good value?

It must be noted that the IPO price was $22 (and franchisees were able to buy shares through the IPO offer at $18). Shares issued through the IPO will be allotted on 24 June 2024 and can be traded on 25 June 2024.

Once some new shareholders see they can sell their shares at a good, quick profit, I wouldn’t be surprised to see the GYG share price move back at least a little towards the listing price of $22.

If investors believe GYG can become a much bigger business in five years, then today could represent a good price for the long term, but I expect it to see a lot of volatility.

The business now has a market capitalisation of $3 billion, and it’s expected to generate underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $43 million in FY24. That puts it at around 70x FY24’s underlying EBITDA, which looks high to me, at least for the short term.

The post Would I be crazy to buy Guzman y Gomez (GYG) shares at $30? appeared first on The Motley Fool Australia.

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• Why Bigtincan, DroneShield, Guzman Y Gomez, and Helia shares are racing higher
• Who owns Guzman y Gomez shares?
• Guzman y Gomez shares rocket 36% on IPO day
• It’s only a day until ASX investors can buy Guzman y Gomez shares
• Why I’m planning to buy Guzman y Gomez shares and own for the long-term

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.

If you are looking for a combination of market-beating gains and an attractive dividend yield, then it could be worth considering the ASX 200 stock in this article.

That’s because analysts at Bell Potter believe this stock is undervalued at current levels and could deliver strong returns for investors over the next 12 months.

Which ASX 200 stock?

The stock in question is agribusiness company Elders Ltd (ASX: ELD).

Bell Potter notes that its shares have underperformed recently due to doubts over its ability to hit its guidance. The broker appears to believe this is unwarranted and that Elders can deliver on expectations. It said:

The ELD share price has stagnated following the release of the 1H24 results where FY24e EBIT guidance of $120-140m was reiterated, implying 2H24e EBIT of $82- 102m (vs. $88.0m in 2H23 and $38.5m 1H24). In aggregate we would see the combination of acquisitions, business investment and stronger YOY trends in livestock as generally supportive of our FY24e forecasts and the FY24e EBIT guidance range.

In light of this, its analysts have reaffirmed their buy rating and $9.30 price target on the ASX 200 stock this morning.

Based on the latest Elders share price of $8.36, this implies potential upside of 11.2% for investors between now and this time next year.

In addition, the broker is forecasting partially franked dividends of 36 cents per share in FY 2024 and then 41 cents per share in FY 2025. This equates to dividend yields of 4.3% and 4.9%, respectively, for investors.

So, if we imagine this means a 4.6% dividend yield over the next 12 months (the FY 2024 final dividend and FY 2025 interim dividend), the total potential return increases to 15.8% for investors.

If this proves accurate, a $10,000 investment into this ASX 200 stock today could turn into $11,580.

What else did the broker say?

Bell Potter highlights that Elders’ shares are trading at an attractive discount to historical average multiples at a time when its earnings growth profile is starting to recover. It concludes:

Our Buy rating is unchanged. At a high level we see ELD trading at 7.7-7.9x ThroughThe-Cycle (TTC) EBITDA, which we estimate at $270-280m reflecting YTD business investment ($68m in 1H24 + $51m on Knight Frank TAS), a discount to its historical average of 8.5x. Improving livestock turnover, the benefits of recent business investment and a stabilisation in agricultural input prices in our view support a recovering earnings growth profile in 2H24e-1H25e.

The post Buy this ASX 200 stock for an 11% gain and 4%+ dividend yield appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Why Boss Energy, Elders, Peter Warren, and Serko shares are sinking today
• 5 things to watch on the ASX 200 on Tuesday
• 2 ASX 200 shares trading ex-dividend next week

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

Dividend payment dates, as well as the ex-dividend dates that preceded them, ebb and flow on the ASX just like the tides. There are some weeks, usually just after earnings season when it seems that every company under the Australian sun is paying out a dividend. In other weeks, it’s a veritable income desert on the Australian share market.

Luckily, next week is an example of the former.

Whenever an ASX share announces a dividend payment, it must also nominate an ex-dividend date for that payment. This ‘ex-div’ date is when a line is drawn in the sand between those shareholders who are eligible to receive the payment, and those who will miss out.

Put simply, if you wish to receive a company’s latest dividend, you need to own the shares at least one day before the ex-dividend date. If you buy those shares on or after that date, you will miss out on the payment, with the seller retaining the rights to the cash.

As we noted above, there are quite a few ASX shares set to trade ex-dividend on the stock market next week. But today, let’s go through no fewer than nine popular real estate investment trusts (REITs) that are in line to fork out their latest dividends (dividend distributions, to be precise).

Before we get right into it, it’s worth remembering that dividend distributions from REITs rarely come with any franking credits attached. That’s due to their unique composition, which prevents them from paying corporate taxes (from which franking credits are generated) like companies do.

With that out of the way, here are the nine popular ASX REITs with ex-dividend dates set for next week:

Nine ASX income stocks set to trade ex-dividend next week

 *Dividend yield as of Thursday’s close

Foolish takeaway

Those are the nine popular REITs scheduled to trade ex-dividend next week.

All of these REITs currently have relatively large trailing dividend distribution yields. As such, we might see some fairly large share price drops when each of them goes ‘ex-div’. That will reflect the hefty loss of value for new investors when this eligibility window closes.

So if you see any of these ASX REITs drop like a rock next week, you’ll probably know why.

The post 9 popular ASX REITs with ex-dividend dates next week appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• These four ASX All Ords shares just earned hefty broker upgrades. Here’s why
• 2 ASX dividend shares offering over 5% yield
• Buy Telstra and these ASX dividend stocks now
• Are ASX REITs a good investment right now?

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended HomeCo Daily Needs REIT. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Creating a lasting passive income with the right S&P/ASX 200 Index (ASX: XJO) stocks could make all the difference between a comfortable retirement and a luxurious one.

If you’re after a more luxurious retirement, the sooner you start building a portfolio of quality dividend stocks, the larger that extra income stream is likely to be.

Below, we look at three top ASX 200 stocks that could create lasting passive income.

Just keep in mind that a proper income portfolio should contain more like 10 (or so) dividend stocks, ideally operating in different market sectors and across different geographic locations. That kind of diversity will help to lower the overall risk to your investment portfolio.

Also, remember that the yields you generally see quoted are trailing yields. Future yields may be higher or lower depending on a range of company-specific and macroeconomic factors.

While the dividends paid out by the three ASX 200 companies we examine below will almost certainly vary from year to year, I believe all three will continue to reward passive income investors over the long term handsomely.

With that said…

Tapping ASX 200 stocks for lasting passive income

The first company I’d buy to create lasting passive income is ASX 200 bank stock Commonwealth Bank of Australia (ASX: CBA).

CBA has a long track record of paying two fully franked dividends per year. Australia’s biggest bank even came through with two dividends in the pandemic addled year of 2020.

As for the past 12 months, CBA paid a final dividend of $2.40 a share on 28 September. The interim dividend of $2.15 a share landed in eligible shareholders bank accounts on 28 March.

That equates to a full-year passive income payout of $4.55 a share, fully franked.

Following a 26% share price surge over the past year, CBA’s dividend yield has come down. At yesterday’s closing price, CBA shares trade on a fully franked trailing yield of 3.56%. But I still think this is a key stock for delivering ongoing income into retirement.

The second ASX 200 stock I’d buy for enduring passive income is Woodside Energy Group Ltd (ASX: WDS). Unlike CBA, the Woodside share price has fallen 24% over the last year.

But from a yield perspective, now could be an ideal time to buy the stock. Despite the world’s decarbonisation push, global demand for oil and gas is greater than ever and expected to grow into next year.

On the passive income front, Woodside paid an interim dividend of $1.243 a share on 28 September and a final dividend of 91.7 cents a share on 4 March. That works out to a full-year payout of $2.16 a share.

At yesterday’s closing price, Woodside shares trade on a fully franked trailing yield of 7.93%.

Rounding out the list of ASX 200 stocks to create lasting passive income is mining giant BHP Group Ltd (ASX: BHP), the biggest company on the ASX.

BHP shares have also slipped 8% over the past 12 months. And the company’s dividends will fluctuate in rough line with its top-earning commodities over time. Importantly, though, all of these commodities should remain in strong demand for many years to come. And despite already being the largest stock on the ASX, BHP continues to pursue growth strategies.

As for that passive income, BHP paid a final dividend of $1.251 a share on 28 September. The miner paid an interim dividend of $1.096 a share on 28 March for a full-year, fully franked payout of $2.347 a share.

At yesterday’s closing price, that sees BHP shares trading on a fully franked trailing yield of 5.49%.

The post 3 top ASX 200 stocks that could create lasting passive income into retirement appeared first on The Motley Fool Australia.

More reading

• Buy these top ASX 300 dividend stocks today for an income boost
• 2 ASX 200 bank shares smashing new multi-year highs today
• Beaten-up ASX 200 stock rebounds 15%. Macquarie says more to come
• What’s the outlook for ASX 200 mining shares in FY25?
• Own Woodside shares? Here’s how much your company paid in Aussie taxes in 2023

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.

Income investors have a lot of options on the Australian share market. So much so, it can be hard to decide which ASX dividend shares to buy above others.

But don’t worry because listed below are three options with generous dividend yields that are rated highly by analysts. Here’s what they are saying about these dividend shares:

IPH Ltd (ASX: IPH)

Analysts at Goldman Sachs think that IPH could be an ASX dividend share to buy. It is an intellectual property solutions company with operations across the world.

The broker is feeling positive about the company due to its belief that IPH is “well-placed to deliver consistent and defensive earnings with modest overall organic growth.”

It is expecting this to support the payment of fully franked dividends per share of 34 cents in FY 2024 and then 37 cents in FY 2025. Based on the current IPH share price of $6.16, this represents dividend yields of 5.5% and 6%, respectively.

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

Rio Tinto Ltd (ASX: RIO)

Goldman Sachs is also feeling bullish about Rio Tinto. It is of course one of the world’s largest miners with operations across several commodities such as copper, iron ore, and lithium.

The broker likes the company due to its “compelling relative valuation” and its expectation of “strong production growth in 2024 & 2025.”

Goldman expects this to underpin fully franked dividends per share of US$4.29 (A$6.44) in FY 2024 and then US$4.55 (A$6.84) in FY 2025. Based on the latest Rio Tinto share price of $119.67, this will mean yields of approximately 5.4% and 5.7%, respectively.

The broker currently has a buy rating and $138.90 price target on the miner’s shares.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend shares that could be a buy for income investors is youth fashion retailer Universal Store.

Morgans is positive on the company and believes it is well-placed for growth. It notes that its “growth opportunities are in place” and that “customers continue to respond well to the Universal Store banner.”

As for income, the broker is forecasting fully franked dividends per share of 26 cents in FY 2024 and then 29 cents in FY 2025. Based on its current share price of $5.20, this will mean yields of 5% and 5.6%, respectively.

Morgans has an add rating and $6.50 price target on its shares.

The post Buy these ASX dividend shares for 5% to 6% yields appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• What’s the outlook for ASX 200 mining shares in FY25?
• 5 things to watch on the ASX 200 on Thursday
• Invest $10,000 in this ASX dividend stock for $550 per year in passive income
• What’s happening with the big 3 ASX 200 iron ore stocks today?

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

Betashares senior investment strategist Cameron Gleeson says increasingly frequent cyber attacks help make a compelling investment case for the Betashares Global Cybersecurity ETF (ASX: HACK).

In a recent blog, Gleeson described cybersecurity as a “unique, defensive play” in the technology arena.

The investment strategist said cybersecurity had become a critical need in today’s society as governments, companies and individuals increasingly relied on technology and data.

Globally, there has been increasing frequency and sophistication of cyber attacks in recent years with governments and corporates spending large amounts on cybersecurity solutions to prevent sensitive data breaches from occurring.

With the rise of artificial intelligence and its associated demand for large amounts of training data, the need for robust cybersecurity solutions has never been more important.

This presents a compelling investment case that Australian investors can access through the Betashares HACK Global Cybersecurity ETF.

The cybersecurity threat (and opportunity for investors)

Cybersecurity has become a hot-button issue in Australia following data breaches at large organisations, including Optus, Ticketmaster, and Medibank Private Ltd (ASX: MPL).

There are more opportunities for cyber attacks as the world becomes more connected via networked devices, the move to cloud computing, and a huge new remote workforce operating from home.

Governments and companies around the world are scrambling to update their cybersecurity to deal with the threat.

This means increased demand for cybersecurity services from a range of companies around the world.

A research report by Sanjana Prabhakar from Nasdaq Index Research & Development revealed the total addressable market (TAM) for cybersecurity was worth $1.5 trillion to $2 trillion globally, based on McKinsey data.

At best, only 10% of that TAM has been penetrated today “with a very long runway for growth”.

Prabhakar said:

As per Statista, during the period 2024-2028, cybersecurity revenue is expected to grow at an annual rate of 10.6%, resulting in a total market size of $273.6 billion by 2028.

Australians limiting online activity due to cybersecurity risks

A new study on the digital lives of Australians published by auDA found that 64% of consumers and 55% of small businesses avoid online activity due to concerns about data security.

More than 40% of consumers and small businesses would like to strengthen their online security but don’t know how.

Only 13% of consumers and 24% of small businesses are confident in their knowledge and skills relating to cybersecurity.

Australians have high expectations of companies that hold personal information about them, too. About 83% of consumers and 79% of small businesses believe companies should do more to protect their data.

auDA CEO Rosemary Sinclair AM said:

auDA’s research continues to identify there is a clear need for trustworthy, accessible cyber security training and resources to help Australians feel confident online.

Much like nation-wide road safety campaigns have helped save lives, now is the time for a coordinated, long-term, nation-wide effort to communicate cyber security basics to bolster the security knowledge and practices of all Australians and small businesses. 

Concerns about data safety can also affect businesses in many ways, including their marketing power.

A Power Retail survey found nearly 60% of Australians were unwilling to sign up for loyalty programs because they did not trust in companies’ handling of their personal information.

Let’s learn about the ASX ETF HACK

The HACK ASX ETF seeks to track the performance of the Nasdaq CTA Cybersecurity Index (before fees and expenses).

The ETF has net assets worth $921 million. More than 70% of its holdings are United States companies.

Its biggest stock holdings are Broadcom Inc (8.7%), Crowdstrike Holdings Inc (7.5%), Palo Alto Networks Inc (6.4%), and Cisco Systems Inc (5.9%).

The HACK ETF is trading flat on the ASX today at $11.33 per unit.

Over the past five years, the ASX ETF has returned an average 16.09% per annum, assuming the reinvestment of distributions. The ETF’s unit price is up 47.53% over the past five years.

Betashares charges a management fee of 0.67% for this ASX ETF.

The post ‘Unique and defensive’: Why this ASX tech ETF is a buy appeared first on The Motley Fool Australia.

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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 positions in and has recommended BetaShares Global Cybersecurity ETF, Cisco Systems, CrowdStrike, and Palo Alto Networks. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended CrowdStrike. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Haste makes waste. This old saying perfectly captures the pitfalls of trying to get rich quick.

Many people are tempted by schemes that promise instant wealth, but these often lead to disappointment and financial loss. They can also be incredibly stressful, prompting impulsive decisions.

Instead, why not follow the investment strategies of Warren Buffett, one of the world’s most successful investors? Buffett’s strategy is built on a foundation of understanding and steady progress. It is all about patience, discipline, and long-term growth, offering a more reliable path to financial success.

Back to the basics

Buffett’s investment philosophy starts with a simple rule: invest in what you understand. He believes that knowing the business and industry inside out helps investors make informed decisions and reduce risks.

Long-term investing is another cornerstone of Buffett’s strategy. Unlike those looking for quick gains, Buffett focuses on the long-term potential of his investments. He often highlights the importance of patience and the power of compound growth over time.

Buffett is also a strong advocate for avoiding debt. He warns against using borrowed money to invest, as it can amplify losses and create financial instability.

Discipline is crucial in Buffett’s approach. He sticks to his principles and avoids making impulsive decisions based on market trends or emotions. Consider his famous quote:

The stock market is designed to transfer money from the active to the patient.

ETF investing

These pieces of advice from Warren Buffett are all great, but do you find the sheer number of stocks on the ASX market too many to consider? Buffett’s best advice for ordinary investors like us is this:

Consistently buy an S&P 500 low-cost index fund. Keep buying it through thick and thin and especially through thin.

Exchange-traded funds (ETFs) comprise a collection of stocks or bonds that offer diversification and lower risk. They are ideal for long-term investors who want to follow Buffett’s approach without having to research and select individual stocks.

With that in mind, let’s consider these two ASX ETFs.

iShares S&P 500 ETF (ASX: IVV) tracks the S&P 500 index, offering exposure to 500 of the largest US companies, exactly as Buffett has advised us to do. The ETF has a low management fee of 0.04%.

It boasts a total annual return of 16.32% over the past decade and offers a small distribution yield of 1.2% at its current unit price.

For Australia-focused investors, the Vanguard Australian Shares Index ETF (ASX: VAS) might be a good choice. This ETF follows the S&P/ASX 300 Index (ASX: XKO).

The management fee is 0.07% — somewhat higher than IVV ETF — but below many other ETFs traded on the ASX.

The fund’s total return over the last 10 years was 7.72% per year. The VAS ETF pays quarterly distributions and yields 3.9% at the current unit price of $96.59.

The post Looking to ‘get rich quick’? Use the Warren Buffett approach instead appeared first on The Motley Fool Australia.

More reading

• Can the iShares S&P 500 ETF (IVV) continue its strong run in FY25?
• 2 ASX ETFs I would happily buy today for my retirement
• 3 winning tips both Warren Buffett and Peter Lynch recommend
• Records tumble! Hot ASX ETFs smash all-time highs again on Friday
• 4 excellent ASX ETFs to buy this month

Motley Fool contributor Kate Lee has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended iShares S&P 500 ETF. The Motley Fool Australia has recommended iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Thursday, the S&P/ASX 200 Index (ASX: XJO) had an underwhelming session and slipped into the red. The benchmark index finished a fraction lower at 7,769.4 points.

Will the market be able to bounce back from this on Friday and end the week on a high? Here are five things to watch:

ASX 200 futures pointing higher

The Australian share market looks set to end the week on a positive note despite a relatively poor session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 8 points or 0.1% higher this morning. On Wall Street, the Dow Jones was up 0.8%, but the S&P 500 fell 0.25%, and the NASDAQ was 0.8% lower.

Oil prices climb

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a good finish to the week after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.95% to US$82.34 a barrel and the Brent crude oil price is up 0.9% to US$85.81 a barrel. Optimism over summer fuel demand continues to boost oil prices.

Buy Elders shares

The Elders Ltd (ASX: ELD) share price could be good value according to analysts at Bell Potter. This morning, its analysts have reaffirmed their buy rating and $9.30 price target on the agribusiness company’s shares. It said: “Improving livestock turnover, the benefits of recent business investment and a stabilisation in agricultural input prices in our view support a recovering earnings growth profile in 2H24e-1H25e.”

Gold price rises

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a good finish to the week after the gold price stormed higher overnight. According to CNBC, the spot gold price is up 1.1% to US$2,372.4 an ounce. Rate cut optimism lifted demand for the precious metal.

Treasury Wine named as a buy

Treasury Wine Estates Ltd (ASX: TWE) shares are in the buy zone. That’s the view of analysts at Goldman Sachs, which have reiterated their buy rating with an improved price target of $15.20. In response to its Penfolds update, the broker said: “Whilst stock reaction was muted given FY25 Penfolds EBITS guide ~3.5% below Visible Alpha consensus, we believe that the ~15% CAGR in FY26/27 EBITS excluding any price increase is strong and demonstrates management confidence in execution despite the highly volatile consumer environment. Additionally, we believe that the building blocks of the EBITS growth to FY27 is balanced and of high quality.”

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

More reading

• Here are the top 10 ASX 200 shares today
• What’s the outlook for ASX 200 mining shares in FY25?
• Treasury Wine share price tumbles on Penfolds China update
• 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 Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Elders and Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The Lovisa Holdings Ltd (ASX: LOV) share price has skyrocketed, rising 77.63% over the past year and 194.95% over the last 5 years. That’s an impressive return to its shareholders, dwarfing the S&P/ASX 200 Index (ASX: XJO) which has risen 5.4% and 16.7% during those time periods.

The affordable jewellery retailer has been restlessly rolling out its stores globally, expanding its presence to 860 stores across more than 40 countries.

Can it continue this impressive growth in its business for its shareholders? Let’s see what experts are saying.

Strong 1H FY24 results

In February, the company announced its 1H FY24 financials, showcasing strong growth despite challenges in the broader retail market.

While its comparable store sales were down 4.4%, the rapid store expansion was more than enough to offset the impact, leading to an 18.2% growth in its revenue to $373 million.

Operating income grew 16.3% to $81.6 million, while its net profit after tax (NPAT) was up 12% to $53.5 million.

At the heart of its growth strategy are its rapid store roll-outs. During the 12 months to December 2023, the company added 74 new stores and entered into three new markets, including China and Vietnam.

Lovisa CEO Victor Herero commented:

The company has continued to deliver solid sales and profit growth and invested in the structures to support our steady global expansion. This positions us strongly to move forward with growth in both existing and new markets.

What experts say about Lovisa

Many sing praises of Lovisa’s expansion strategy. Tribeca fund manager Jun Bei Liu snatched some Lovisa shares using a brief drop in the share price in early June, citing its strong management team as my colleague Bernd highlighted.

Since then, the company announced the planned departure of its CEO, Victor Herero. Despite this, Bell Potter remained positive on Lovisa shares as it sees the incoming CEO John Cheston, who is the current CEO of Smiggle, as equally impressive.

Morgans is another positive broker on Lovisa. Analysts at Morgans believe the company is well-positioned for long-term growth in light of the retailer’s expansion into mainland China in FY24.

How cheap are Lovisa shares?

Looking ahead to the next three years, Lovisa shares are trading at a price-to-earnings ratio of 42x for FY24, 32x for FY25, and 26x for FY26, using earnings estimates by S&P Capital IQ.

These earnings estimates imply the market is expecting the company will grow its earnings-per-share by 33% in FY25 and another 21% in FY26.

The Lovisa share price closed trade on Thursday up 1.8% at $32.73. At this price, the company offers a dividend yield of 2.5%.

The post Up 78% in a year, is it too late to buy Lovisa shares? appeared first on The Motley Fool Australia.

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