Category: Stock Market

ASX penny stocks come with the potential for explosive share price growth, along with considerable added risks.

Those risks include a bigger chance the company could run into financial stress that could pressure its share price. And small-cap stocks tend to have higher volatility, meaning investors should be prepared for some sizable share price moves in both directions.

With that in mind, one ASX penny stock I believe is poised for a strong run in April and through 2024 is Aeris Resources Ltd (ASX: AIS).

The ASX copper miner closed yesterday trading for 21 cents per share, giving it a market cap of $197 million.

Here’s why I think it could charge higher from here.

Why this ASX penny stock could surge

Aeris Resources looks to be in a strong turnaround stage.

As you can see in the chart above, the Aeris Resources share price plunged a gut-wrenching 85% from this time last year through to 22 February, when it closed at just 9 cents a share.

Then the ASX penny stock went ballistic, with shares rocketing more than 135% since then.

The most recent uplift came this Tuesday when the ASX miner reported on the potential to significantly expand its copper resource growth at its Canbelego copper project, located in New South Wales.

Canbelego is a joint venture project between Aeris Resources and Helix Resources Ltd (ASX: HLX).

Commenting on the potential copper resource growth, Helix executive technical director Kylie Prendergast said:

The new geophysical survey results show there are significant new copper targets in close proximity to known, high-grade copper mineralisation at the Canbelego deposit.

This is generating a lot of excitement in the Helix team on our ability to expand our Canbelego Copper Mineral Resources with drilling scheduled to start in May.

The Aeris Resources share price closed up 14.3% on the news, trading for 20 cents apiece.

And with drilling kicking off in May, this ASX penny stock could surge on any strong results.

Why now could be a great time to buy Aeris Resources

Sure, it would be nice to jump back to 22 February and load up on Aeris Resources when shares were trading for just 9 cents apiece.

But with copper prices leaping 10% year to date, with many analysts forecasting further gains in 2024, this ASX penny stock could continue to handsomely reward investors.

‘Dr Copper’, as the metal is called for its correlation to global economic performance, is noncorrosive and highly conductive. This sees it used in pipes and wiring, with demand growth outpacing supply as the world moves towards decarbonisation.

The rapid growth of AI, and the requisite copper-hungry data centres to support the technology, are also forecast to see a sustained uptick in demand for the red metal.

And this ASX penny stock looks well-placed to make the most of it.

The post 1 ASX penny stock I’d buy in April while it is still only 21 cents appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 ASX copper stocks to buy now for this ‘explosive price upside’
• 2 ASX mining stocks smashing the market on Tuesday
• Why this ASX small cap stock could rocket 60%

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.

from The Motley Fool Australia https://ift.tt/D62qjcY

It goes without saying that almost all of us would relish the opportunity of establishing a stream of passive income (or two) that could help supplement our day jobs, and, when the time comes, fund our retirement.

But doing so is definitely easier said than done. Many sources of passive income can be risky, or require an inordinate amount of upfront effort.

So unless you’re about to finish the next one-hit wonder, here are some streams of passive income that anyone can set up for a comfortable retirement today.

Some top ideas for a passive income stream

Find a high-interest savings account

This one might seem simple, but you’d be surprised how many Australians don’t have their savings sitting in an account or term deposit paying a competitive interest rate. This is one of the easiest fixes anyone can do in order to set up a stream of passive income.

Right now, interest rates are at a decade-high. Whilst this might be painful for mortgage holders, it’s a blessing for those with a pile of cash at the bank. It’s not uncommon today to see savings accounts and term deposits offering interest rates of 5% or even higher.

That means that you can bank as much as $1,000 per annum in work-free income for every $20,000 you have invested in a high-interest savings account or term deposit.

This requires almost no work on your part, just 10 minutes of research and paperwork. If you have a significant amount of cash in the bank sitting in a chequing or ‘everyday’ account paying little or no interest, it’s easy money you’re just throwing away.

Make your hobby profitable

Most of us have hobbies – activities that we enjoy outside of work for our own leisure. Most of us are happy to pursue these hobbies as passion projects. But today’s modern world also gives us a chance to turn these hobbies into a profitable side hustle.

Like playing video games? Perhaps you should consider streaming your playthroughs. Enjoy bushwalks, sewing, cooking, fishing, camping, metal work or carpentry? You can set up a blog or vlog and document your latest finds, travels or projects.

The internet is awash with these sorts of endeavours. But with a little dedication, you might find yourself at the helm of a new source of passive income. Who wouldn’t like to spend their retirement doing what they love, and getting paid for it?

ASX dividend shares for passive income

But of course, we have to talk about ASX dividend shares. After all, they are quite possibly the best source of passive income for all Australians.

Dividend shares can give us everything we need in a source of passive income: No active labour required, inflation-resistance, and income that should rise over time. Like any ASX share investment, one needs to be judicious in selecting which ASX dividend shares will make the cut for a passive income portfolio.

But I think taking the easy way and choosing an exchange-traded fund (ETF) like the Vanguard Australian Shares High Yield ETF (ASX: VHY) is a great option for most Australians. Dividend payments normally get doled out every six months on the ASX, and often come with franking credits attached too. These can help us boost our passive income even further.

Investing in ASX divided shares for passive income is something we can all do today. The only downside with this stream is that it does require a substantial investment of cash to get the ball rolling.

The post The best passive income streams to help fund your retirement appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buy this ‘sector leading’ ASX 200 gold stock for big returns
• Here are the iron ore and lithium price forecasts through to 2027
• 3 ASX dividend shares everyone should own for the long haul
• 2 ASX growth shares that could turn $1,000 into $10,000 by 2034
• Buy Rio Tinto and these ASX dividend stocks

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 recommended Vanguard Australian Shares High Yield ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/NdFbKMU

With the gold price hitting record highs this week, investors may be looking for ways to gain exposure to the precious metal.

One way could be through ASX 200 gold stock Capricorn Metals Ltd (ASX: CMM).

That’s the view of analysts at Bell Potter, which believe investors should be snapping up its shares at current levels.

Why is it an ASX 200 gold stock to buy?

Bell Potter notes that Capricorn Metals recently released an update for the 100% owned Karlawinda Gold Project (KGP).

Unfortunately, the project was impacted by a major rainfall event late in the third quarter, which means that gold production fell a touch short of expectations.

In addition, as open-pit mining material movements are still recovering from the rainfall, gold production for the current quarter will now be softer than expected. This inevitably means that production for FY 2024 will be short of its guidance.

Bell Potter thinks management will be very disappointed with this news given its impressive track record of delivering on promises for the last three years. It said:

This will be disappointing for CMM, which has built a metronomic track record of guidance delivery since commencing production at the KGP in June 2021. March quarter 2024 gold production of 26.0koz is the lowest since the ramp-up quarter of September 2021 and comes at a time when CMM will have been aiming to maximise unhedged gold sales before hedge book deliveries re-commence in September 2024.

But the broker thinks investors should look beyond this rainfall event. It adds:

However, the quality of the KGP and its operational management are evidenced by the strong quarterly cash addition to the balance sheet of A$680/oz. Low costs, a strong balance sheet and free cash flow mitigates CMM’s single mine risk and explains in part why it carries a premium rating when compared with peers.

Buy this sector leading gold miner

Overall, the broker believes that this ASX 200 gold stock is a great option for investors. It said:

Our NPVbased valuation is up 3% to $6.15/sh as we roll forward past the March 2024 quarter, update for CMM’s increased cash position and pick up FY25 earnings upgrades. CMM is a sector leading gold producer with a strong balance sheet, clear organic growth options and a management team with an excellent track record of delivery.

As it says above, Bell Potter has reiterated its buy rating this morning with an improved price target of $6.15. Based on where the ASX 200 gold stock currently trades, this implies potential upside of 15% for investors over the next 12 months.

The post Buy this ‘sector leading’ ASX 200 gold stock for big returns appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Thursday
• Why Arcadium Lithium, Block, Capricorn, and Kogan shares are dropping today
• Why is this ASX 200 mining share sinking 7% today?
• Here are the top 10 ASX 200 shares today
• If you’d put $20,000 in this ASX 200 mining stock 5 years ago, you’d have $278,000 now

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

from The Motley Fool Australia https://ift.tt/zIOHfV4

There are two commodities that get a lot of attention from Australian investors – iron ore and lithium.

Hundreds of billions of dollars are invested in companies with exposure to these metals. As a result, their prices can have a big impact on the wealth of the nation.

But where are iron ore and lithium prices heading from here? Let’s take a look and see what analysts at Goldman Sachs are forecasting for the coming years.

Iron ore price forecast

If you own BHP Group Ltd (ASX: BHP), Fortescue Ltd (ASX: FMG), or Rio Tinto Ltd (ASX: RIO) shares, you will no doubt be interested in knowing what analysts are predicting for the iron ore price.

Firstly, according to CommSec, iron ore futures fell by 31 US cents or 0.3% overnight to US$104.02 a tonne amid investor caution over the scale of China’s demand recovery.

Looking ahead, Goldman Sachs believes the benchmark iron ore price will average US$111 a tonne in 2024.

After which, the broker is forecasting weaker prices the following year. It expects an average benchmark iron ore price of US$95 a tonne in 2025.

This trend is expected to continue in 2026, with Goldman pencilling in an average benchmark iron ore price of US$93 a tonne for the year.

Finally, in 2027, the broker believes the steel-making ingredient will soften slightly again. It is forecasting an average benchmark iron ore price of US$92 a tonne for the year.

In summary, Goldman expects the following for iron ore:

• 2024: US$111 a tonne
• 2025: US$95 a tonne
• 2026: US$93 a tonne
• 2027: US$92 a tonne

Lithium price forecast

It certainly has been a tough 12 months for owners of lithium stocks such as Core Lithium Ltd (ASX: CXO), Liontown Resources Ltd (ASX: LTR), and Pilbara Minerals Ltd (ASX: PLS). They have underperformed due to significant weakness in the lithium price.

But will this weakness soon ease or are things going to stay the same way? Let’s now take a look at what Goldman Sachs expects.

As a reminder, the current spot price of lithium carbonate in China is US$13,547 a tonne. This is down from the 2022 average of US$63,232 and 2023 average of US$32,694 a tonne.

Goldman expects the following for lithium carbonate:

• 2024: US$11,106 a tonne
• 2025: US$11,000 a tonne
• 2026: US$13,323 a tonne
• 2027: US$15,646 a tonne

There are of course multiple types of lithium, so now let’s take a look at the price of spodumene.

The current spot price of lithium spodumene is US$1,210 a tonne. This is down from the 2022 average of US$4,368 and 2023 average of US$3,712 a tonne.

Goldman expects the following for lithium spodumene:

• 2024: US$928 a tonne
• 2025: US$800 a tonne
• 2026: US$978 a tonne
• 2027: US$1,155 a tonne

As you can see above, it seems that Australian lithium miners are going to have to get used to lithium prices trading around current levels for the foreseeable future.

The post Here are the iron ore and lithium price forecasts through to 2027 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buy Rio Tinto and these ASX dividend stocks
• Own Pilbara Minerals shares? Here’s your third-quarter update preview
• Here are the top 10 ASX 200 shares today
• How has the Liontown share price rocketed 15% in a week?
• How BHP stock could unseat the world’s top copper producer

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.

from The Motley Fool Australia https://ift.tt/laPLkyU

Buy and hold investing with ASX dividend shares is one of the best ways to grow your wealth.

This is because it allows you to benefit from the power of compounding, which is what happens when you generate returns on top of returns.

In addition, as a company’s dividend grows, so too does your source of income.

For example, imagine if you had invested $10,000 into Accent Group Ltd (ASX: AX1) shares 10 years ago. You would have been able to pick up its shares for 59 cents each, which means you would own 16,949 units today.

Bell Potter is forecasting a fully franked dividend of 13 cents per share in FY 2024. This means those 16,949 units would generate $2,203.37 of dividend income.

But it gets better. With Accent shares currently changing hands for close to $2.00, your holding would have a market value of almost $34,000. That’s significantly more than your original $10,000 investment.

But which ASX dividend shares could be good options for investors making long-term investments today? Let’s take a look at three shares that analysts rate as buys.

3 ASX dividend shares to buy and hold

The first one is the subject of our example above, footwear retailer Accent Group. It appears well-positioned to continue its long-term growth thanks to its market leadership and growing store footprint.

It is partly for these reasons that Bell Potter has a buy rating and $2.50 price target on its shares. It also expects dividend yields of approximately 6.6%, 7.5%, and 8.4% over the next three years.

Another ASX dividend share to consider buying for the long term is Coles Group Ltd (ASX: COL).

Morgans is a fan of the supermarket giant and has an add rating and $18.70 price target on its shares. As for dividends, it is forecasting fully franked yields of 4.1% in FY 2024 and 4.3% in FY 2025.

A final ASX dividend share for investors to look at is Webjet Ltd (ASX: WEB). It is a leading online travel booker with operations across the world.

Thanks largely to its B2B WebBeds business, analysts at Goldman Sachs believe it could be destined for very strong long-term growth.

And while the broker isn’t expecting a dividend this year, it believes they will resume in FY 2025. Goldman Sachs is forecasting dividends per share of 17 cents that year and then 20 cents in FY 2026. This will mean yields of 2% and 2.3%, respectively.

Goldman has a buy rating and $9.20 price target on Webjet’s shares.

The post 3 ASX dividend shares everyone should own for the long haul appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Buy this ASX 300 stock for a 28% gain and 7% dividend yield
• Buy Coles and these ASX dividend stocks now
• 3 things smart investors know about Coles stock
• Forget gold! I’d buy these top ASX shares to beat inflation
• Have Woolworths and Coles shares been spared a break-up?

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 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.

from The Motley Fool Australia https://ift.tt/2cxbLYw

Imagine if every $1,000 you invested in ASX shares became $10,000 over the next 10 years. It’s an entirely possible return, even if you have to find the highest-performing ASX growth shares on the stock market.

A 10x return over 10 years requires a compounded annual growth rate (CAGR) in a company’s share price (assuming no dividend returns) of 25.9%. No easy feat.

But I think there are a couple of ASX growth shares that at least have a shot at hitting this lofty benchmark.

2 ASX growth shares that might turn $1,000 into $10,000 by 2034

Xero Ltd (ASX: XRO)

Xero has been a prominent ASX growth stock for many years now. Yet I’ve continuously been impressed with this company’s performance.

Back in November, Xero revealed its latest numbers, which did nothing to dent my confidence. Over the six months to 30 September 2023, the cloud-based accounting software provider reported $799.5 million in revenues. That was up 21% over the same period in 2022.

Earnings came in at $206.1 million, up substantially over the $108.6 million reported last year. That helped Xero’s free cash flow almost 10x, rising from $15.6 million in 2022 to $106.7 million in 2023.

If this ASX growth stock can keep banging out anything close to these kinds of numbers over the coming decade, I can easily see Xero shares turning a $1,000 investment total into $10,000 by 2034.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Next up we have an exchange-traded fund (ETF) to look at. The BetaSahes Global Cybersecurity ETF pretty much does what it says on the tin. It gives investors exposure to a portfolio of international companies involved in cybersecurity.

Given its exponentially growing importance in the modern world, cybersecurity is one of the most lucrative fields for growth stocks, in my view.

Individuals, governments and businesses are almost certainly going to have to keep increasing investment in cybersecurity over the coming decades. That’s given how more and more interactions and transactions are moving online.

According to Statista, global cybersecurity spending is expected to grow at a CAGR of 10.56% until the year 2028.

This HACK ETF is a great way of harnessing this growth.

It gives investors exposure to some of the best and most trusted cybersecurity companies (and growth stocks) in the world. These include CrowdStrike, Palo Alto, Cisco, Broadcom, Cloudflare, Okta and Trend Micro.

This ETF already has some impressive runs on the board, having returned an average of 18.02% per annum since its inception in 2016 (as of 28 March). However, I think this can accelerate even further over the next decade, given the organic growth of the cybersecurity industry.

The post 2 ASX growth shares that could turn $1,000 into $10,000 by 2034 appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 4 ASX 200 blue chip shares to buy now
• 4 ASX ETFs to supercharge your returns in 2024 and beyond
• 5 ASX 200 shares for trying to build wealth after 50
• 3 ASX 200 tech shares to buy now with less than $2,000
• Why are ASX tech shares rebounding strongly on Thursday?

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

from The Motley Fool Australia https://ift.tt/lL4pEoN

The good news for income investors is that there are plenty of quality ASX dividend stocks trading on the Australian share market. But which ones could be in the buy zone?

Three that analysts are tipping as buys this month are listed below. Here’s what you need to know about them:

APA Group (ASX: APA)

APA Group could be an ASX dividend stock to buy right now. It is an energy infrastructure business that owns, manages, and operates a diverse portfolio of gas, electricity, solar and wind assets.

It has a long track record of dividend increases. In fact, earlier this year the company lifted its interim dividend, marking 19 years of distribution growth.

The team at Macquarie believe this trend will continue and is forecasting further dividend increases. The broker is expecting dividends per share of 56 cents in FY 2024 and 57.5 cents in FY 2025. Based on the current APA Group share price of $8.54, this equates to 6.55% and 6.7% dividend yields, respectively.

Macquarie has an outperform rating and $9.40 price target on the company’s shares.

Rio Tinto Ltd (ASX: RIO)

If you’re not against investing in the mining sector, then Rio Tinto could be a top ASX dividend stock to buy. It is a leading global mining group that focuses on finding, mining, and processing the Earth’s mineral resources. This includes aluminium, copper, iron ore, lithium.

Goldman Sachs thinks investors should be buying the mining giant’s shares due to its positive production outlook. It highlights that “Rio is a FCF and production growth story […] with forecast Cu Eq production growth of ~5-6% in 2024 & 2025.”

The broker expects this to underpin fully franked dividends per share of US$4.38 (A$6.72) in FY 2024 and then US$4.63 (A$7.10) in FY 2025. Based on the latest Rio Tinto share price of $127.75, this will mean yields of 5.25% and 5.6%, respectively.

Goldman currently has a buy rating and $140.20 price target on its shares.

Super Retail Group Ltd (ASX: SUL)

Another ASX dividend stock that has been named as a buy for income investors is Super Retail. It is the retail conglomerate behind popular store brands BCF, Macpac, Rebel, and Supercheap Auto.

Goldman Sachs is also feeling very positive about the retailer. Its analysts recently noted that “the 1H24 result was high quality and the strategic growth plan is intact.”

Goldman expects this to support 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 $15.77, this will mean yields of 4.25% and 4.6%, respectively.

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

The post Buy Rio Tinto and these ASX dividend stocks appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• If I had to buy only one top 20 stock for dividends, this is it!
• Here’s the profit forecast to 2028 for Core Lithium shares
• Here are the top 10 ASX 200 shares today
• Why Ansell, Elders, Predictive Discovery, and Rio Tinto shares are storming higher
• Why top brokers say Rio Tinto stock is a better buy than BHP

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 Apa Group, Macquarie 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.

from The Motley Fool Australia https://ift.tt/IX9AyTa

The ASX gold train has been running full steam ahead for more than a month now.

Investors have been sending ASX gold stocks soaring amid a fast-rising gold price.

It was only back on 3 October that the yellow metal was trading for US$1,823 per ounce.

By 28 February, that same ounce was worth US$2,030.

And over the past five weeks, gold has continued to charge higher, hitting new record highs of more than US$2,355 per ounce earlier today.

As for the performance of the Aussie gold miners?

Since 28 February the S&P/ASX All Ordinaries Gold Index (ASX: XGD) has soared an eye-popping 26%. For some context, that compares to a 3% gain posted by the ASX 200 over this same time.

The Northern Star Resources Ltd (ASX: NST) share price has underperformed the gold index, though it’s still up a very healthy 19% since 28 February.

The Newmont Corp (ASX: NEM) share price, on the other hand, has outperformed, up 33% over this time. Evolution Mining Ltd (ASX: EVN) shares have also outpaced the gold benchmark, gaining 36% since 28 February.

With these fat gains already in the bag, is the ASX gold train ready to run out of puff?

Or can it keep charging ahead?

What now for the speeding ASX gold train?

While the future is inherently uncertain, I believe that the gold price and most ASX gold stocks could still offer some sizeable gains in 2024.

That’s because the demand outlook for gold continues to look very strong.

The yellow metal, which pays no yield itself, tends to perform better in low or falling interest rate environments. While we’re not sure when the US Federal Reserve, the RBA and other central banks will begin cutting rates, some easing certainly looks to be on the cards for 2024.

Gold also has been benefiting from its safe-haven status, both in terms of an uncertain global economic outlook and amid rising geopolitical tensions from the Middle East to Eastern Europe.

The gold price should also find support with both consumer demand (particularly in China) and central bank demand at near-record levels and forecast to remain strong.

So, I think the gold train certainly has some steam left in it.

Investors looking to get exposure to further potential rises in the gold price without buying and storing physical bullion themselves could consider buying an exchange-traded fund (ETF) like Perth Mint Gold (ASX: PMGOLD) or Betashares Gold Bullion ETF (ASX: QAU).

Or, for potentially leveraged returns, investors can consider buying shares in the big ASX gold producers like Newmont, Northern Star and Evolution Mining. These stocks will often rise (or fall) significantly more than any underlying moves in the gold price.

If you’re not sure how or where to invest your hard-earned money, please reach out for some expert advice.

The post Is it too late to get on board the ASX gold train? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Wednesday
• Buying ASX 200 gold stocks? Here’s why the record gold price could keep charging higher
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX 200 shares today

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.

from The Motley Fool Australia https://ift.tt/9RpEJk0

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index rose 0.3% to 7,848.5 points.

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

ASX 200 expected to tumble

The Australian share market looks set for a disappointing session on Thursday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 64 points or 0.8% lower this morning. In the United States, the Dow Jones was down 1.1%, the S&P 500 fell 0.95%, and the Nasdaq tumbled 0.85%. Hotter than expected US inflation weighed on the market.

Oil prices rebound

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a good session after oil prices rebounded overnight. According to Bloomberg, the WTI crude oil price is up 1.25% to US$86.29 a barrel and the Brent crude oil price is up 1.25% to US$90.53 a barrel. Concerns over rising tensions in the Middle East drove prices higher.

Dividend payday

Today is yet another big day for Aussie investors with a number of ASX 200 shares distributing their latest payouts to their shareholders. Among the companies that are paying dividends today are logistic solutions companies Brambles Ltd (ASX: BXB) and Qube Holdings Ltd (ASX: QUB), insurance giant Suncorp Group Ltd (ASX: SUN), and retail giant Woolworths Group Ltd (ASX: WOW). The latter is paying out a fully franked 47 cents per share dividend.

Gold price falls

It looks set to be a tough session for ASX 200 gold shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) after the gold price slumped overnight. According to CNBC, the spot gold price is down 0.5% to US$2,351.7 an ounce. The precious metal fell from its record high following the release of US inflation data.

Buy Capricorn shares

The Capricorn Metals Ltd (ASX: CMM) share price is good value according to analysts at Bell Potter. This morning, the broker has responded to the gold miner’s latest update by retaining its buy rating and lifting its price target to $6.15. This implies potential upside of 15% from current levels. It commented: “CMM is a sector leading gold producer with a strong balance sheet, clear organic growth options and a management team with an excellent track record of delivery.”

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why I’d drip-feed $500 a month into ASX 200 shares, starting now
• Here are the top 10 ASX 200 shares today
• 4 ASX 200 blue chip shares to buy now
• 3 ASX 200 dividend shares to buy according to brokers
• 5 things to watch on the ASX 200 on Wednesday

from The Motley Fool Australia https://ift.tt/jpbN3BA

The BetaShares S&P/ASX Australian Technology ETF (ASX: ATEC) has performed strongly, rising by around 30% since the end of October 2023, as we can see in the chart below. So, is the ASX tech exchange-traded fund (ETF) still an investment opportunity after its rally?

Let’s take a look.

The ATEC ETF gives investors exposure to a range of technology-oriented market segments such as IT, consumer electronics, online retail and medical technology.

The portfolio currently has 37 holdings. To give you a flavour of the types of companies in the portfolio, these are the biggest 10 positions by weighting:

• Computershare Ltd (ASX: CPU) – 10.4%
• WiseTech Global Ltd (ASX: WTC) – 10%
• CAR Group Limited (ASX: CAR) – 9.9%
• Xero Ltd (ASX: XRO) – 9.4%
• REA Group Ltd (ASX: REA) – 7.9
• NextDC Ltd (ASX: NXT) – 7.4%
• Seek Ltd (ASX: SEK) – 7.3%
• Altium Ltd (ASX: ALU) – 6.9%
• Pro Medicus Ltd (ASX: PME) – 4.7%
• TechnologyOne Ltd (ASX: TNE) – 4.2%

It’s more expensive now

When a share price has surged so much in a relatively short amount of time, it leads to a higher price/earnings (P/E) ratio, which undoubtedly makes the ATEC ETF more expensive.

Share prices can’t sustainably rise without good justification. Each business has its own earnings profile, but they all face the same higher interest rate environment, which is meant to push down valuations.

It still could be a long time before interest rates start coming down, with inflation remaining stubbornly higher than central bankers would like. The great investor Warren Buffett once described why interest rates are so important for valuations:

The value of every business, the value of a farm, the value of an apartment house, the value of any economic asset, is 100% sensitive to interest rates because all you are doing in investing is transferring some money to somebody now in exchange for what you expect the stream of money to be, to come in over a period of time, and the higher interest rates are the less that present value is going to be.

So every business by its nature… its intrinsic valuation is 100% sensitive to interest rates.

But there’s plenty of growth

Collectively, many of the ATEC ETF’s holdings are delivering good growth.

For example, in its recent FY24 half-year result, WiseTech reported free cash flow growth of 13% and statutory net profit after tax (NPAT) growth of 8%. Meanwhile, CAR Group grew adjusted NPAT by 34% to $163 million. Computershare is benefiting from the sustained high interest rates thanks to the large cash balance of clients it makes interest income on.

Ultimately, businesses can justify a high price if the financial and operational performance keeps going well.

Many of the ASX tech shares in this portfolio are among the best stocks in the country.

The ATEC ETF might fall in value in the shorter term (and it would be a better buy), but because of its underlying quality and continuing performance, I think we could see good performance over three or five years.

The post The pros and cons of buying this ASX tech ETF after its 30% rally appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How much passive income would $10,000 in Wesfarmers shares generate?
• Why I’d drip-feed $500 a month into ASX 200 shares, starting now
• Is it time to put Zip shares back on the table in 2024?
• Buy these ASX ETFs for a big income boost
• Own Pilbara Minerals shares? Here’s your third-quarter update preview

Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Pro Medicus, REA Group, Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool Australia has recommended Car Group, Pro Medicus, REA Group, Seek, and Technology One. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/Z9x7FAB