Category: Stock Market

I’m a big fan of the Vanguard US Total Market Shares Index ETF (ASX: VTS) as a solid investment for building towards retirement — and for retirees too.

The VTS ETF is one of the largest exchange-traded funds (ETFs) on the ASX and provides investors with exposure to most of the US share market.

Pleasingly, its most significant portfolio holdings are among the world’s biggest and strongest companies, including Microsoft, Apple, Nvidia, Alphabet, Amazon, Meta Platforms and Berkshire Hathaway.

Another attractive feature of this ETF is that its management fee is just 0.03% per annum. This leaves almost all returns generated in the hands of investors, making it one of the cheapest annual fees in Australia.

Here are some more reasons why I think it’s such an effective investment for people in both the accumulation and retirement phases.

Excellent wealth-growing pick

The VTS ETF owns a high-quality group of US tech businesses with globally leading service or product offerings. For example, companies like Microsoft, Nvidia, and Alphabet are leading the charge for the development of artificial intelligence (AI). These US giants have incredible balance sheets, impressive operating profit margins, and long growth runways.

Due to sizeable allocations to those high-performing stocks, the Vanguard US Total Market Shares Index ETF has delivered a hefty average annual return of 14.2% in the five years to April 2024.

Now, we can’t fully rely upon this rate of return in the future, but even if it remains reasonably stable in the years ahead, investors can grow wealth at an impressive rate.

For example, if someone invested $1,000 a month for 20 years and the fund grew at 14.2% per annum, it would be worth $1.1 million after two decades.

This fund has more to it than the top holdings — it actually has 3,719 holdings. That’s an enormous amount of diversification in a single investment.

I also like the sector allocation. Technology makes up around a third of the weighting, which is the industry where many compelling businesses are located. Other sectors in the ASX ETF with double-digit weightings include consumer discretionary (14.1%), industrials (13%), healthcare (11.8%), and financials (10.9%).

Can unlock cash flow for retirees

Investors in retirement are likely seeking income to fund their cash flow requirements.

The VTS ETF isn’t known for dividends – it currently has a dividend yield of around 1.4% because of the generally low dividend yield of the underlying holdings.

However, the ETF can still be a great source of income by crystallising some capital gains. I’ll show you how it can work.

Imagine owning $100,000 of the VTS ETF, and over 12 months, it rises 10% to become worth $110,000. If you sell $5,000, that’s a 5% dividend yield on the original $100,000, and the net value after the sale would be $105,000.

Of course, the stock market can be volatile and shares in the VTS ETF might be lower in some years, so I wouldn’t choose to sell all my gains every year. It’s good to keep some in reserve in case you need an emergency fund. A 4% or 5% yield would be the right balance, in my opinion.

If the VTS ETF keeps delivering good returns, it could provide cash flow for retirees and capital growth.

The post Why Vanguard US Total Market Shares Index ETF (VTS) is a top buy for retirement appeared first on The Motley Fool Australia.

More reading

• Own the ASX’s Vanguard US Total Markets ETF (VTS)? Here’s what you’re invested in
• Here’s what makes the Vanguard US Total Market ETF (VTS) stand out from other index funds
• How much money should I put in one ASX ETF?
• 5 ASX ETFs to invest $10,000 into next week

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

ANZ Group Holdings Ltd (ASX: ANZ) shares stand among some of the largest companies within the S&P/ASX 200 Index (ASX: XJO). But simply being a big business isn’t enough to appeal to me.

While ANZ shares hold a sizeable weighting in exchange-traded funds (ETFs) such as the Vanguard Australian Shares Index ETF (ASX: VAS) and other popular investment funds, I’m not attracted to the ASX 200 bank share for a few crucial reasons. Let’s take a look.

Strong competition

Ideally, I want to invest in businesses with strong competitive advantages or economic moats.

Competition is stiff in the banking sector, with numerous lenders operating in Australia. On the ASX alone, we have the big players like ANZ, Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Bank of Queensland Ltd (ASX: BOQ) and Macquarie Group Ltd (ASX: MQG).

Not to mention a host of smaller lenders, including Bendigo and Adelaide Bank Ltd (ASX: BEN), Pepper Money Ltd (ASX: PPM), AMP Ltd (ASX: AMP) and MyState Ltd (ASX: MYS).

Thanks to the rise of digital banking, lenders don’t need a national network to be competitive anymore. Macquarie and ING have become sizeable players without branch networks.

Loans appear to have become commoditised, so lenders have seen their margins decline. That trend doesn’t seem to be reversing. Plus, mortgage brokers are now influential players in the market. In my mind, these are long-term headwinds.

In the FY24 first-half result, ANZ revealed that its net interest margin (NIM) had declined. The NIM tells us how much profit a bank makes on its lending (including the cost of funding, such as term deposits).

The ANZ NIM has declined every quarter since the start of FY23, from 2.47% in the first quarter of FY23 to as low as 2.32% in the second quarter of FY24.

High dividend yields aren’t ideal for me

ANZ pays a high dividend yield, which may be ideal for some owners of ANZ shares.

However, as a full-time worker, I’m in the ATO tax bracket, where essentially a third of my additional income is lost to tax. Considering ANZ pays big dividends every year, I’d lose a fair amount of my return.

If my shares generate capital growth, they aren’t taxed until the asset is sold, so that is much more appealing to me. Another benefit of capital growth returns rather than dividend returns is getting a capital gains discount if I hold for more than 12 months.

Weak earnings growth expected

I don’t mind the idea of a high dividend yield if the ASX 200 share’s earnings are expected to rise significantly in the next few years.

However, due to the competitive landscape and low demand for credit amid the high cost of living, I don’t believe ANZ’s earnings will grow much in the next few years.

The broker UBS expects the bank’s FY24 and FY25 net profit after tax (NPAT) of $7 billion and $7.2 billion, respectively, to be lower than FY23’s net profit ($7.4 billion) amid the challenging conditions. It might take until FY26 for ANZ’s net profit to surpass FY23.

If profit isn’t growing, then I don’t think the ANZ share price can sustainably rise much in the next 12 months, which is one of the main reasons why I’m steering clear of buying ANZ shares.

The post 1 popular ASX 200 share I wouldn’t touch with 2 bargepoles! appeared first on The Motley Fool Australia.

More reading

• ASX 200 bank shares: How dividends offset poor capital growth over 10 years
• Is now a good time to buy this high-yield ASX dividend stock?
• Here is the earnings forecast through to 2026 for ANZ shares
• Here’s what Wilsons is saying about ANZ, CBA, NAB, and Westpac shares
• How ASX growth shares can become top dividend stocks

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

Do you have room in your portfolio for some new ASX shares? If you do, then it could be worth checking out the three listed below.

They have all been named as buys and tipped to generate strong returns over the next 12 months. Here’s what you need to know:

Lovisa Holdings Limited (ASX: LOV)

The first ASX share that could be a buy is fashion jewellery retailer Lovisa.

Morgans is feeling very positive about the company’s outlook and sees it as a great long-term pick due to its global expansion plans.

In fact, the broker has previously suggested that “LOV may just prove to be one of the biggest success stories in Australian retail. LOV is showing every sign of becoming a global brand.”

Morgans has an add rating and $35.00 price target on its shares. This implies potential upside of 9% for investors from current levels. It also expects a ~2.6% dividend yield to sweeten the deal further.

NextDC Ltd (ASX: NXT)

Another ASX share that could deliver big returns for investors is NextDC. It provides colocation services to local and international organisations from its growing collection of world-class Tier III and Tier IV data centre facilities across Australia and the Asia-Pacific.

It has been growing at a rapid rate for many years thanks to the insatiable demand for data centre capacity due to the shift to the cloud. The good news is that the artificial intelligence boom is expected drive a third wave of demand. This bodes well for NextDC’s growth over the next decade.

Morgan Stanley is a big fan of the company. It believes the data centre market will more than double in size by the end of the decade.

As a result, earlier this month it put an overweight rating and $20.00 price target on its shares. This suggests potential upside of almost 14% for investors.

WiseTech Global Ltd (ASX: WTC)

Finally, the team at UBS believes that WiseTech Global could be an ASX share to buy.

It is the logistics solutions company behind the CargoWise One platform. This platform is integral to the global logistics industry and used by all the big players.

In fact, strong demand for the platform from industry giants means WiseTech has been growing at a very strong rate in recent years. The good news is that UBS believes this strong form can continue.

Earlier this month, the broker put a buy rating and $112.00 price target on WiseTech Global’s shares. This implies potential upside of 14% for investors over the next 12 months.

The post 3 high-quality ASX shares tipped to generate strong returns appeared first on The Motley Fool Australia.

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• Forget Nvidia: This ASX growth stock is poised for its own bull run
• These 2 ASX shares could win big time in the long term
• These are the 2 ‘best’ ASX 200 stocks to buy now for the AI megatrend: expert
• 2 highly rated ASX growth shares to buy before it’s too late

Motley Fool contributor James Mickleboro has positions in Lovisa and Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. 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.

If you are on the lookout for the dream combination of huge gains and a juicy dividend yield, then it could be worth taking a closer look at the ASX All Ords stock in this article.

That’s because the team at Bell Potter believes that this stock could rise more than 30% over the next 12 months.

In addition, the broker is forecasting very attractive 6%+ dividend yields through to 2026.

Which ASX All Ords stock?

The ASX All Ords stock in question is Regal Partners Ltd (ASX: RPL).

It is a specialist alternative investment manager with approximately $12.1 billion in funds under management.

Regal Partners was formed in 2022 following the merger of Regal Funds Management and VGI Partners. It manages a broad range of investment strategies covering long/short equities, private markets, real and natural assets, and credit and royalties on behalf of institutions, family offices, charitable groups, and private investors.

According to the note, Bell Potter has been pleased with the company’s recent performance and feels it could be outperforming expectations in respect to performance fees. It said:

The first four months have shown strong returns for the majority of the funds in the Regal stable. We consider which funds may be generating a performance fee, both by performance and size. A recent presentation from Regal (23 May) notes that 72% of FUM is at, or within 5% of HWM, compared to 54% at December. The implication is that H1 will show strong performance fees.

We consider six of Regal’s funds and show year to date performance, fund or strategy size and attempt to estimate the size of performance fee that RPL could be generating. We estimate that from these six funds alone RPL could generate performance fees of around $55m (compared to our forecasts of $38m) with particularly strong contributions coming from the PM Capital Global companies, the Regal Australian Small Companies, Regal Tactical Opportunities and RF1 (- which including reinvestment of income is now back above its HWM). Across the entire stable of funds, we could expect the figure to be higher.

Big returns

The note reveals that Bell Potter has reaffirmed its buy rating on the ASX All Ords stock with an improved price target of $4.02.

Based on its current share price of $3.07, this implies potential upside of 31% for investors over the next 12 months.

In addition, the broker is forecasting fully franked dividends per share of 19.7 cents in FY 2024, 18.9 cents in FY 2025, and 21.7 cents in FY 2026. This equates to above-average dividend yields of 6.4%, 6.15%, and 7.1%, respectively.

Overall, the broker feels the market is undervaluing this ASX All Ords stock. It concludes:

As a result of these updates, our NPAT and adjusted EPS forecasts increase by 21.9% for FY24, 3.2% for FY25 and 2.5% for FY26. We adjust our price target to $4.02 (from $3.86 previously). We continue to favour RPL, given its strong organic & inorganic growth potential, and entrepreneurial culture. Following the acquisition of PM Capital and Taurus (50%) last year, the firm has shown an acceleration of inflows, strong investment performance and success in marketing new funds. We feel this strong performance is not reflected in the share price and see considerable upside.

The post Buy this ASX All Ords stock for a 30% gain and 6% dividend yield appeared first on The Motley Fool Australia.

More reading

• 1 popular ASX 200 share I wouldn’t touch with 2 bargepoles!
• 3 high-quality ASX shares tipped to generate strong returns
• Should you buy, hold, or sell this ASX 200 bank stock?
• 2 ASX dividend stocks to buy in June
• Here is the latest lithium price forecast through to 2027

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

Bendigo and Adelaide Bank Ltd (ASX: BEN) shares have been on form in 2024.

Since the start of the year, the ASX 200 bank stock has risen almost 13%.

To put this into context, a $10,000 investment at the end of last year would now be worth approximately $11,300.

As a comparison, the benchmark ASX 200 index has climbed 1.8% over the same period.

But can this strong run continue or have its shares peaked? Let’s see if Bendigo and Adelaide Bank’s shares are now a buy, hold, or sell.

Where next for this ASX 200 bank stock?

According to a note out of Goldman Sachs this morning, its analysts are calling time on this bank stock’s rise.

The note reveals that the broker has reiterated its neutral rating and $10.51 price target on its shares.

Based on the current Bendigo and Adelaide Bank share price of $10.89, this implies potential downside of 3.5% over the next 12 months.

What did the broker say?

Goldman notes that the ASX 200 bank stock recently held its investor day event.

At the event, the bank reiterated its target of improving its return on equity (ROE) to above its cost of capital. The broker said:

While quantitative detail was lacking in relation to how BEN would seek to improve its ROE to being above its cost of capital, management believes i) improvements would be driven both by higher revenues and lower expenses, and ii) operating expenses will be managed at or below inflation levels.

Our Macro team currently forecasts average annual inflation of 2.8% over the four years to Jun-27. Assuming cost growth in line with inflation, FY27E GS revenues would need to be 13% higher than current GSe to reach a 50% CTI, and would translate to a 31% rise in PPOP. For Visible Alpha (VAe) consensus, FY27E revenues would need to be 17% higher, and would translate to a 41% rise in PPOP.

Neutral rating

Overall, the broker hasn’t seen anything in the investor day update to justify a more positive recommendation on the ASX 200 bank stock. It summarises:

Until we see more evidence that the company can deliver a sustained improvement in its ROE, we are reticent to capitalise the material upside to PPOP that a 50% CTI would deliver to shareholders. Therefore, with the stock implying -3% downside to our A$10.51 target price, in the middle of our A&NZ coverage, we reiterate our Neutral recommendation.

The post Should you buy, hold, or sell this ASX 200 bank stock? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Hoping to retire? I’d buy these ASX 200 dividend shares for passive income
• ASX 200 bank shares: How dividends offset poor capital growth over 10 years
• Guess which ASX 200 mining giant could crash 30%
• 5 things to watch on the ASX 200 on Thursday

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 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.

With a new month on the horizon, what better time to consider making some new additions to your income portfolio.

But which ASX dividend stocks could be buys in June? Let’s take a look at two that analysts are bullish on right now. Here’s what they are saying about these income options:

Cedar Woods Properties Limited (ASX: CWP)

The team at Morgans thinks income investors should be buying this ASX dividend stock in June. It currently has the property company on its best ideas list with an add rating and $5.60 price target on its shares.

In respect to dividends, the broker has pencilled in dividends per share of 18 cents in FY 2024 and then 20 cents in FY 2025. Based on the current Cedar Woods Properties share price of $4.46, this will mean dividend yields of 4% and 4.5%, respectively.

Morgans thinks that the company’s shares are cheap and deserve to trade on higher multiples. Particularly given its improving outlook. It said:

CWP is a volume business and the demand for lots looks to be improving, with margins to invariably follow. CWP’s exposure to lower priced stock in higher growth markets sees further potential to drive earnings. On this basis, we see every reason for CWP to trade at NTA and potentially at a premium, were the housing cycle to gain steam through FY25/26.

Challenger Ltd (ASX: CGF)

Over at Goldman Sachs, its analysts think that this annuities company could be an ASX dividend stock to buy. The broker currently has a buy rating and $7.50 price target on its shares.

As for income, the broker is forecasting fully franked dividends of 26 cents per share in FY 2024, 27 cents per share in FY 2025, and then 28 cents per share in FY 2026. Based on the current Challenger share price of $6.62, this will mean dividend yields of 3.9%, 4.1%, and 4.2%, respectively.

Commenting on its bullish view, the broker said:

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

The post 2 ASX dividend stocks to buy in June appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Morgans says these ASX stocks can rise 20% (and pay big dividends!)
• Looking for ASX All Ords shares to buy? Top broker reveals 4 best ideas this month

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

It certainly has been a tough 12 months for ASX lithium stocks.

During this time, the likes of Arcadium Lithium (ASX: LTM), Core Lithium Ltd (ASX: CXO), IGO Ltd (ASX: IGO), Liontown Resources Ltd (ASX: LTR), and Pilbara Minerals Ltd (ASX: PLS), Sayona Mining Ltd (ASX: SYA) have all recorded sizeable declines while the market as a whole has charged higher.

For example, Core Lithium and Sayona Mining shares are both down around 80% since this time last year, whereas IGO and Liontown shares have lost approximately half of their value over the same period.

Investors have been hitting the sell button in response to falling lithium prices. This has been driven by increasing supply of the white metal, particularly in the China market.

But where next for lithium prices? Will they recover to previous levels in the near future? Let’s take a look and see what analysts at Goldman Sachs are forecasting for three widely used lithium types – lithium carbonate, lithium spodumene, and lithium hydroxide.

Lithium prices

Firstly, let’s have a little reminder of what lithium prices were commanding on average in 2023.

• Lithium carbonate – China: US$32,694 per tonne
• Lithium hydroxide – China: US$32,452 per tonne
• Spodumene 6%: US$3,712 per tonne

Now we will take a quick look at the current spot prices of these metals compared to what they were commanding back in January. The current prices are as follows:

• Lithium carbonate – China: US$13,012 per tonne (January: US$11,867)
• Lithium hydroxide – China: US$9,591 per tonne (January: US$9,899)
• Spodumene 6%: US$1,210 per tonne (January: US$1,000)

Forecasts through to 2027

Unfortunately for investors of ASX lithium stocks, Goldman Sachs is not expecting a big improvement in lithium prices in the coming years.

Lithium carbonate – China:

For lithium carbonate, the broker is forecasting the following through to 2027:

• 2024: US$11.106 per tonne
• 2025: US$11,000 per tonne
• 2026: US$13,323 per tonne
• 2027: US$15,646 per tonne
• Long-term: US$15,500 per tonne

Lithium hydroxide – China:

It will be a similar story for lithium hydroxide according to the broker. It is forecasting the following:

• 2024: US$9,849 per tonne
• 2025: US$12,500 per tonne
• 2026: US$14,323 per tonne
• 2027: US$16,146 per tonne
• Long-term: US$15,500 per tonne

Spodumene 6%:

Finally, the broker is expecting spodumene prices to remain in and around current levels for the foreseeable future. It has pencilled in the following for the coming years:

• 2024: US$928 per tonne
• 2025: US$800 per tonne
• 2026: US$978 per tonne
• 2027: US$1,155 per tonne
• Long-term: US$1,150 per tonne

The post Here is the latest lithium price forecast through to 2027 appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Guess how much a $3,000 investment in Liontown shares ballooned to in just one month
• ASX 200 shares vs. property: Which has performed better since the COVID crash?
• Why did the Sayona Mining share price just leap 5%?
• This top broker says the Pilbara Minerals share price is going to crash 35%

Motley Fool contributor James Mickleboro own Arcadium Lithium shares. 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.

The share market has historically generated an average total return of 10% per annum.

While this is a great return, if you look hard enough you might find some ASX growth shares with the potential to outperform materially.

Let’s take a look at a couple of shares that have been tipped to smash the market:

Life360 Inc (ASX: 360)

This location technology company’s shares have been on fire this year. So much so, the ASX growth share has doubled in value year to date.

Despite this, a number of analysts believe that Life360’s shares still have the potential to deliver market-beating returns over the next 12 months, even if buying at current levels.

One of those brokers is Bell Potter, which currently has a buy rating and $17.75 price target on its shares. This implies potential upside of 18% for investors between now and this time next year.

Bell Potter believes the ASX growth share has the potential to rerate to higher multiples thanks to its strong growth and the valuations of peers. It said:

We have increased the multiple we apply in the EV/Revenue valuation from 5.5x to 6.5x given the proposed US listing and potential re-rating of the stock given the higher multiples of comps like Reddit (NYSE: RDDT). There is, however, no change in the 9.3% WACC we apply in the DCF. The net result is a 9% increase in our PT to $17.75 which is >15% premium to the share price so we maintain our BUY recommendation. Key potential catalysts for the stock include another strong quarter of paying circle growth in Q2 (April was another good month), a potential upgrade to the 2024 guidance sometime in H2 and a US listing at some stage in the next 12 months.

Tyro Payments Ltd (ASX: TYR)

Another ASX growth share that could deliver market-beating returns according to analysts is Tyro Payments.

It is a growing payments provider with around 70,000 merchants on its network. This makes it Australia’s fifth largest merchant acquiring bank by number of terminals in the market, behind only the big four banks.

Morgans is a fan of the company and has an add rating and $1.47 price target on its shares. This suggests potential upside of 69% for investors over the next 12 months. The broker commented:

TYR sold off heavily in 2023 affected by the broad pull back in technology stocks and overall concerns regarding its earnings trajectory. However, we believe FY24 will show significantly improved business momentum, importantly driven by a much greater focus on lifting overall profitability. TYR still trades at a significant discount to valuation.

The post 2 ASX growth shares with legit potential to outperform the market appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy next week
• Brokers name 2 rapidly growing ASX 200 tech stocks to buy
• Leading brokers name 3 ASX shares to buy today
• Why Bellevue Gold, IPH, Life360, and Ramelius Resources shares are racing higher

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 Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. 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) ended the week deep in the red. The benchmark index sank 1.1% to 7,727.6 points.

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

ASX 200 expected to rebound

The Australian share market looks set to rebound on Monday following a strong finish on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 47 points or 0.6% higher. On Friday in the United States, the Dow Jones was up slightly, the S&P 500 rose 0.7%, and the Nasdaq jumped 1.1%.

Oil prices rise

ASX 200 energy shares such as Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a good start to the week after oil prices climbed on Friday. According to Bloomberg, the WTI crude oil price was up 1.1% to US$77.72 a barrel and the Brent crude oil price was up 0.9% to US$82.12 a barrel. This was driven by optimism over rising demand as the summer driving season gets underway in the Northern Hemisphere.

Lendlease asset sale rumours

The Lendlease Group (ASX: LLC) share price will be on watch today amid rumours the global property company is about to make a big announcement. According to the AFR, Lendlease intends to end all international property development and sell its overseas construction divisions. The latter will see the company reportedly offload over $4 billion worth of assets, mostly in the United States and United Kingdom.

Gold price softens

ASX 200 gold mining shares including Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a soft start to the week after the gold price edged lower on Friday. According to CNBC, the spot gold price was down 0.1% to US$2,356.9 an ounce. Rate cut doubts weighed on the precious metal.

Bendigo and Adelaide Bank rated neutral

The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price is fully valued according to analysts at Goldman Sachs. This morning, the broker has retained its neutral rating with a $10.51 price target. This is a touch lower than where the regional bank’s shares currently trade. It said: “Until we see more evidence that the company can deliver a sustained improvement in its ROE, we are reticent to capitalise the material upside to PPOP that a 50% CTI would deliver to shareholders. Therefore, with the stock implying -3% downside to our A$10.51 target price, in the middle of our A&NZ coverage, we reiterate our Neutral recommendation.”

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
• Hoping to retire? I’d buy these ASX 200 dividend shares for passive income
• Here are the top 10 ASX 200 shares today
• Why ASX 200 investors shouldn’t expect interest rate cuts until 2025
• Global companies just paid a record $512 billion in Q1 dividends. Here’s how ASX 200 shares stacked up

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended 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.

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

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

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

• Pilbara Minerals Ltd (ASX: PLS) continues its long run as the most shorted ASX share with short interest of 21.2%. This is down slightly week on week. It appears that short sellers are not expecting lithium prices to recover any time soon.
• IDP Education Ltd (ASX: IEL) has 16.7% of its shares held short, which is up week on week. Short sellers have been targeting this language testing and student placement company due to student visa changes in a number of key markets. They may believe that this will lead to IDP falling short of expectations.
• Syrah Resources Ltd (ASX: SYR) has short interest of 13%, which is down slightly week on week. This graphite miner has been battling weak battery materials prices and burning through its cash reserves.
• Flight Centre Travel Group Ltd (ASX: FLT) has seen its short interest rebound week on week to 11.6%. Short sellers are not being put off by Flight Centre recently revealing that it expects record sales in FY 2024.
• Liontown Resources Ltd (ASX: LTR) has 9.9% of its share held short, which is down week on week again. Short sellers have been closing positions this month after Liontown made good progress with its Kathleen Valley Lithium Project.
• Australian Clinical Labs Ltd (ASX: ACL) has returned to the top ten with short interest of 9.3%. This pathology services company is guiding to another sharp decline in earnings in FY 2024.
• Sayona Mining Ltd (ASX: SYA) has short interest of 9.1%, which is up sharply week on week. This lithium miner is burning through cash at present by spending more to produce its lithium than it receives for it.
• Westgold Resources Ltd (ASX: WGX) has short interest of 8.8%, which is up for a third week in a row. Short sellers appear unsure about the gold miner’s plan to merge with Canada-based Karoa Resources.
• Chalice Mining Ltd (ASX: CHN) has short interest of 8.3%, which is up week on week. Short sellers continue to target the mineral exploration company despite the favourable Federal Budget.
• Core Lithium Ltd (ASX: CXO) has short interest of 7.8%, which is flat week on week. Core Lithium has been forced to suspended mining activities to conserve cash due to weak prices.

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

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• This top broker says the Pilbara Minerals share price is going to crash 35%

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