Category: Stock Market

With the ASX 200 index hitting a record high this month, value investors may be concerned that there are no suitable options for them right now.

However, they may be wrong to assume that. In fact, analysts believe that big returns could be on offer from the ASX value stocks listed below.

Here’s why they could be top buy and hold options for a $5,000 investment:

Accent Group Ltd (ASX: AX1)

The first ASX value stock to look at is Accent Group. Bell Potter has a buy rating on the footwear retailer’s shares with a price target of $2.50. This implies potential upside of over 20% for investors from current levels.

Its analysts are forecasting earnings per share of 13.2 cents in FY 2024 and then 15.5 cents in FY 2025. This means its shares are changing hands for approximately 15.6x FY 2024 earnings and 13.3x FY 2025 earnings.

Telstra Group Ltd (ASX: TLS)

Another ASX value stock to look at is telco giant Telstra. It has been named as a buy by analysts at Goldman Sachs. They have a buy rating and $4.55 price target on its shares. This suggests potential upside of almost 20% over the next 12 months.

In respect to its valuation, the broker highlights that Telstra’s shares are a lot better value than they may look at first glance. It said:

Although at a headline level, Telstra valuation appears relatively full (vs. peers and vs. 10Y yield), we note: (1) Adjusting out NBN recurring payments (a unique asset), Telstra trades at a much more compelling multiple; (2) Although its yield spread is compressed vs. history, when factoring dividend growth this is more attractive. Hence in an uncertain 2024 we rate Telstra Buy.

The post Got $5,000? Buy and hold these ASX value stocks for years appeared first on The Motley Fool Australia.

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More reading

• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• Buy these ASX dividend stocks for big 5%+ yields
• Buy Telstra and these ASX dividend shares next week
• 5 ASX 200 shares that boosted their dividends this earnings season
• Analysts name 2 high-yield ASX dividend shares to buy

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 Telstra 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.

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Experts have noticed a couple of S&P/ASX 200 Index (ASX: XJO) shares that, after a period of underperformance, are now just starting to capture the attention of the market.

They are both quality businesses in the finance/insurance field, so are rated as a buy right now:

‘Rebounded strongly’ despite weaker profit

For eight months between March and November last year, the usually reliable Macquarie Group Ltd (ASX: MQG) shares plunged more than 18%.

But funnily enough, the stock has soared in recent weeks despite some concerns raised during the recent reporting season.

“The share price of this diversified financial services company rebounded strongly despite an update in February revealing a weaker net profit after tax to date for fiscal 2024 when compared to the prior period,” Fairmont Equities managing director Michael Gable told The Bull. 

“This is a bullish sign as it showed the share price was factoring in a lower result.”

Macquarie shares have returned more than 50% over the past five years, all while giving out healthy dividends, which currently stands at a 3.6% yield.

The stock is now trading almost 22% higher than it was on 13 November.

“The stock has managed to remain in an uptrend. We expect Macquarie and the broader market to do well in calendar year 2024.”

13 of 14 analysts love this ASX 200 stock

Insurers are a unique group that does well out of interest rate rises.

With that tailwind, QBE Insurance Group Ltd (ASX: QBE) reported excellent numbers last month.

“The insurance giant posted a significant increase in statutory net profit after tax to US$1.355 billion in fiscal year 2023 compared to US$587 million in the previous year,” said Marcus Today equities analyst Matthew Lattin.

Lattin, who rates QBE as a buy, noted how the business was growing at a great clip.

“QBE’s gross written premiums grew by 10%, supported by renewal rate increases and targeted new business growth, underscoring QBE’s resilience and competitiveness.

“Despite a slight increase in expenses, effective cost-management strategies have kept the expense ratio at a relatively low 11.8%.”

Similar to Macquarie, QBE also pays out a handy 3.6% dividend yield.

Lattin is far from the only professional bullish on the insurance provider.

A whopping 13 out of 14 analysts, as surveyed on CMC Markets, recommend the stock as a buy at the moment.

The post It’s not too late to buy these 2 rocketing ASX 200 stocks appeared first on The Motley Fool Australia.

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More reading

• Guess which are the 2 newest members of the ASX 100 index
• Passive income watch: The ASX stocks dishing out the biggest dividend boosts this earnings season
• Which ASX shares delivered the biggest profit jumps of the earnings season?
• 34 ASX 200 shares with ex-dividend dates next week
• Buy these ASX 200 dividend shares for a big income boost

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

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The trouble with ASX income stocks with high dividend yields is that there could be a catch.

It could be that the business prospects are in decline, and either the share price or the dividend itself could be headed southwards.

But occasionally you come across a gem.

The ASX income stock with 11.9% yield after cutting dividend

Yancoal Australia Ltd (ASX: YAL) has coal mining assets in NSW, Queensland, and Western Australia.

Over the last couple of years, it has become famous as one of the most generous dividend payers on the ASX.

As Russia invaded Ukraine in 2022, energy prices soared around the world. However, 2023 wasn’t quite as lucrative as the market settled back to normality.

So the news out of reporting season was that Yancoal would cut its latest distribution by more than a half compared to a year ago.

Incredibly though, the dividend yield still remains at a more-than-respectable 11.9%, fully franked.

Production and macroeconomics looking good

“But what about the outlook though?” the savvy investors would ask.

The company reported that last year it achieved its goal of rebuilding mining inventory, having increased production in each and every quarter.

And chief executive David Moult expects the business to continue this “operational momentum” into the coming year.

“The group is in a robust financial position, with no external loans, $1.8 billion of franking credits available, and a net cash balance that we expect will increase each month.”

According to TradingEconomics, China’s coal imports last month were 34% higher than a year prior, while Japan and South Korea are both experiencing “strong demand” for thermal coal.

This is why, despite the phenomenal dividend yield, I reckon Yancoal is a buy at the moment.

The experts agree, with all four analysts covering the stock classifying it as a buy, as surveyed on CMC Invest.

The post 12% dividend yield! 1 ASX income stock I’d buy today appeared first on The Motley Fool Australia.

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More reading

• $2k buys me 627 shares in 2 ASX passive income shares yielding 11% combined
• I’d target a $1,000 passive income from $10k with this ASX high yielder

Motley Fool contributor Tony Yoo 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.

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Some investors think buying ASX shares that have risen is crazy talk because the “gains have already been made”.

But that’s spurious logic, for at least two reasons.

First is that stocks have no memory. They don’t care whether they have risen or fallen. Only the future prospects matter.

Second is that if a stock already has upward momentum it means many others think the business is heading in the right direction. The whole point of investing is to own shares that other people want.

So now that we’ve set that record straight, let’s take a look at two ASX shares creeping up at the moment that experts are naming as buys:

Starting ‘a new uptrend’

Sandfire Resources Ltd (ASX: SFR) shares have soared 33% since late October.

And Fairmont Equities boss Michael Gable reckons there’s more where that came from.

“Sandfire Resources is the largest pure-play copper producer on the ASX,” Gable told The Bull.

“We remain positive about the prospects for copper as we expect lower supplies and sustained global demand to result in higher prices during the next few years.”

Many of his peers agree. According to broking platform CMC Invest, 10 out of 18 analysts are rating Sandfire as a buy right now.

“The stock is now starting to break above a three-year resistance level on the chart, so we believe it’s likely to start a new uptrend.”

The ASX shares up 30% in 4 months

Similar to Sandfire, Hub24 Ltd (ASX: HUB) shares have rocketed 30% since the start of November.

The investment platform provider is still a buy for Marcus Today equity analyst Matthew Lattin.

“Hub24’s first half results in fiscal year 2024 saw notable increases in key metrics,” he said.

“Group underlying EBITDA of $55 million was up 10% on the prior corresponding period and statutory net profit after tax of $21.5 million was up 39%.”

The best metric though, is that investors are pouring money into the platform.

“Record half year net inflows of $7.2 billion – an increase of 26% – demonstrates strong demand for its platform services. 

“Moreover, Hub24’s strong pipeline of existing and potentially new advisers suggests promising growth prospects.”

The post 2 ASX shares with ‘promising growth prospects’ just starting to creep up now appeared first on The Motley Fool Australia.

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More reading

• One ASX mining sector at risk of more pain, and one ready to soar!
• Why Accent, Austal, Newmont, and Sandfire shares are plunging today
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Why ARB, Bravura, Hub24, and Suncorp shares are storming higher

Motley Fool contributor Tony Yoo 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 Hub24. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• ASX 200 gold shares are booming on Monday. Here’s why they could keep shining bright
• Leading brokers name 3 ASX shares to buy today
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• Is it too late to buy Westpac shares at a fresh 52-week high?
• Why Life360 shares can keep rocketing

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 Life360. 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.

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The team at Goldman Sachs has just updated its highly coveted conviction list for the Asia-Pacific (APAC) region.

These are the companies that the broker is most bullish on and expects to outperform.

There have been four new additions to the APAC list this month, with two making exits.

While the majority of its conviction list picks come from elsewhere in the region, one of the new additions is an ASX 200 tech stock.

That tech stock is cloud accounting platform provider Xero Ltd (ASX: XRO).

What is the broker saying about this ASX 200 tech stock?

Goldman has added Xero to its conviction list with a buy rating and $152.00 price target. This implies approximately 12% upside for investors from current levels.

It explains its bullish view on Xero as follows:

Xero is a Global Cloud Accounting SaaS player, with a particular focus on its core 3X3 markets – accounting, payroll and payments in Australia, the US & UK. Kane believes Xero, with its refreshed management team, is very well-placed to take advantage of the digitisation of SMBs globally, driven by compelling efficiency benefits and regulatory tailwinds, with >100mn SMBs worldwide representing a >NZ$100bn TAM. Following the company’s pivot to profitable growth and corresponding earnings ramp, he sees an attractive entry point into a global growth story, with Xero his preferred large-cap technology name in ANZ.

Other ASX 200 stocks that are on the APAC conviction list are rare earths producer Lynas Rare Earths Ltd (ASX: LYC) and supermarket giant Woolworths Group Ltd (ASX: WOW).

For Lynas, the broker has a buy rating and $7.40 price target, which offers potential upside of 19%.

As for Woolworths, it has a buy rating and $40.40 price target on its shares. This suggests potential upside of approximately 23% for investors.

The post Goldman Sachs has added this ASX 200 tech stock to its APAC conviction list appeared first on The Motley Fool Australia.

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• Top brokers name 3 ASX shares to buy next week
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Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Let’s be frank, most 30-year-olds probably don’t make a habit of regularly checking up on their superannuation accounts. Let alone honing them for the best possible returns. In fact, there are probably far too many 30-year-olds who don’t even know how much they have in super.

If you’re 30 and this description doesn’t fit your circumstances, congratulations. Here at the Motley Fool, we think everyone should be fully invested (pardon the pun) in managing their super. No matter their age. After all, super is our money. And it remains our best ticket to a comfortable retirement here in Australia.

Last month, we discussed how the average and median superannuation balances for someone aged between 30 and 34 were $51,400 and $38,681 respectively.

But if you’re gunning for a comfortable retirement, how much exactly should you have in your super fund? That’s what we’ll be digging into today.

How much should a 30-year-old have in superannuation?

The latest data from the Association of Superannuation Funds of Australia (ASFA) tells us that it is estimated that in order to achieve a ‘comfortable’ retirement, a single retiree would need an annual income of $50,981 in today’s dollars. That assumes the retiree owns their own home.

For couples, a combined income of $71,724 was estimated to be the minimum for a comfortable retirement.

According to superguru.com.au, this means that a 30-year-old should have a superannuation balance of $66,500 today if they wish to achieve that ‘comfortable retirement’ status. In today’s dollars, this will enable our 30-year-old to hit the $595,000 in retirement savings that a single person will need if they wish to enjoy a comfortable retirement.

It’s assumed that the final super balance will also allow our single retiree to enjoy at least a part Age Pension. It also assumes that they will be drawing down their super fund’s capital during retirement.

Given that this ideal figure of $66,500 is nowhere near the average super balance, let alone the median, for someone aged 30-34 today, it seems our retirement system has a lot of work to do.

The post How much superannuation should I have by age 30? appeared first on The Motley Fool Australia.

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More reading

• Should you buy this ASX 200 stock for its 5%+ dividend yield?
• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• ASX 200 gold shares are booming on Monday. Here’s why they could keep shining bright
• Leading brokers name 3 ASX shares to buy today
• CBA shares rally to new record high. Is $196 billion too much for this banking giant?

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 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.

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Metcash Ltd (ASX: MTS) shares have been out of form over the last 12 months.

During this time, the ASX stock has lost approximately 8% of its value.

As a comparison, the ASX 200 index has charged 5.5% higher over the same period.

While this is disappointing for shareholders, it could be a buying opportunity for investors looking for a source of income.

That’s because the decline in the Metcash share price means that its forecast dividend yield is now comfortably higher than the market average.

What are analysts forecasting for this ASX stock?

According to a note out of UBS last month, its analysts have responded to the company’s plan to acquire Superior Foods by retaining its buy rating with a $4.00 price target.

Based on the current Metcash share price of $3.70, this implies potential upside of 8.1% for investors over the next 12 months.

But it gets better. The broker is forecasting fully franked dividends per share of 20 cents in both FY 2024 and FY 2025. This equates to generous dividend yields of 5.4% for both years and stretches the total potential 12-month return to approximately 13.5%.

Is anyone else bullish?

UBS isn’t alone with its positive stance on this ASX stock.

The team at Ord Minnett has an accumulate rating and $4.00 price target on Metcash’s shares as well.

And with the broker also expecting a 20 cents per share fully franked dividend this year, it is predicting a 13.5% total return for investors.

All in all, these brokers appears to believe that Metcash could be an ASX 200 stock to consider buying if you’re on the lookout for a nice combination of capital gains and income.

The post Should you buy this ASX 200 stock for its 5%+ dividend yield? appeared first on The Motley Fool Australia.

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• Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead
• The ASX shares I’m buying for a stress-free retirement
• Guess which ASX 200 stock is predicted to pay an 8% dividend yield in 2025
• A once-in-a-decade chance to get rich from ASX 200 shares?
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Metcash. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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A number of ASX bank shares are hitting 52-week highs, but I’m not calling them buys at this price. There are other ASX dividend shares I’d look to for income.

ANZ Group Holdings Ltd (ASX: ANZ) shares, National Australia Bank Ltd (ASX: NAB) shares and Westpac Banking Group (ASX: WBC) shares all hit 52-week highs today.

Buying ASX bank shares at such high levels doesn’t strike me as good value. Not only are they trading at a high price/earnings (P/E) ratio, but it also means the dividend yields have been pushed lower.

Instead, there are other two main groups of shares I’d look at for opportunities.

High dividend yield

With the banks’ yields now smaller than before, I think there are plenty of other companies capable of producing better dividend yields, and those stocks may be able to grow the dividends in the coming years.

I think some companies that could pay big yields in the coming years include GQG Partners Inc (ASX: GQG), Medibank Private Ltd (ASX: MPL), Telstra Group Ltd (ASX: TLS), Universal Store Holdings Ltd (ASX: UNI), Accent Group Ltd (ASX: AX1), Duxton Water Ltd (ASX: D2O) and Metcash Ltd (ASX: MTS).

I believe all of these ASX dividend shares can pay more substantial dividends over time than the big banks.

It could also be worth looking at real estate investment trusts (REITs) because they offer stable rental income and good yields, while the prospect of falling interest rates could boost valuations. Four of my favourites include Rural Funds Group (ASX: RFF), Centuria Industrial REIT (ASX: CIP), Charter Hall Long WALE REIT (ASX: CLW) and Healthco Healthcare and Wellness REIT (ASX: HCW).

Dividend growers

I like businesses that are capable of growing profit over time because that can drive both the underlying value of the business as well as the dividend.

However, these sorts of businesses normally have a lower dividend yield because the market is pricing in longer-term growth expectations. Plus, those businesses are typically retaining more profit to invest for growth.

I think there’s a good chance that dividend growers can deliver better total returns than ASX bank shares over the next three or five years.

Some of my favourites include Washington H. Soul Pattinson and Co. Ltd (ASX: SOL), Brickworks Limited (ASX: BKW), Duxton Water, Sonic Healthcare Ltd (ASX: SHL), Wesfarmers Ltd (ASX: WES), Pinnacle Investment Management Group Ltd (ASX: PNI) and Johns Lyng Group Ltd (ASX: JLG).

The post Seeking retirement income from ASX bank shares at 52-week highs? What I’d buy instead appeared first on The Motley Fool Australia.

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More reading

• 2 cheap ASX dividend shares I’d snap up in a heartbeat!
• If I were 60 I’d buy these ASX shares for dividends
• Is it time for me to change my tune about ANZ shares?
• Buy these ASX dividend stocks for big 5%+ yields
• Better buy in March 2024: Wesfarmers stock vs JB Hi-Fi stock

Motley Fool contributor Tristan Harrison has positions in Accent Group, Brickworks, Duxton Water, Johns Lyng Group, Metcash, Pinnacle Investment Management Group, Rural Funds Group, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Johns Lyng Group, Pinnacle Investment Management Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Brickworks, Pinnacle Investment Management Group, Rural Funds Group, Telstra Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has recommended Accent Group, Johns Lyng Group, Metcash, and Sonic Healthcare. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) gold shares are rocketing higher today.

In afternoon trade on Monday, the S&P/ASX All Ordinaries Gold Index (ASX: XGD) – which also contains some smaller gold stocks outside of the ASX 200 – is up 4.5%.

Here’s how these leading ASX 200 gold shares are tracking today:

• Northern Star Resources Ltd (ASX: NST) shares are up 5.8%
• Newmont Corp (ASX: NEM) shares are up 1.2%
• De Grey Mining Ltd (ASX: DEG) shares are up 6.4%
• Ramelius Resources Ltd (ASX: RMS) shares are up 5.5%
• Gold Road Resources Ltd (ASX: GOR) shares are up 7.7%
• Evolution Mining Ltd (ASX: EVN) shares are up 6.1%%
• Bellevue Gold Ltd (ASX: BGL) shares are up 3.6%

For some context, the ASX 200 has given back its earlier intraday gains (which saw the benchmark index hit new record territory) to be trading just about flat at this same time.

Why are gold miners smashing the benchmark on Monday?

ASX 200 gold shares are enjoying a stellar run today, with bullion hitting US$2,086 per ounce (AU$3,192/oz).

That’s up from US$2,044 per ounce on 29 February. And it sees the gold price up almost 15% from the recent lows of US$1,820 per ounce on 5 October.

A range of factors have conspired to help boost the gold price.

Those include near-record levels of central bank buying, bullion’s safe haven status in times of uncertainty, and the outlook for lower global interest rates as inflation across most of the developed world continues to come off the boil.

And with these factors expected to continue, the outlook for ASX 200 gold shares in 2024 is looking bright.

Can ASX 200 gold shares outshine the market in 2024?

While the performance of individual miners is impacted by numerous factors like mining costs, production levels and hedging commitments, the gold price has a decisive impact on the profitability of ASX 200 gold shares.

On that front, TD Securities forecasts that the yellow metal could gain another 10% from current levels to reach US$2,300 per ounce.

According to the investment bank (quoted by The Australian Financial Review):

It is hoped that the combination of lower [US Treasury] yields, which are likely to attract discretionary investors into futures and ETFs, along with strong physical markets in China and robust central bank buying, will move gold to new highs.

Indeed, we believe that the yellow metal is set to move into $US2300+ territory, once there is more certainty surrounding the timing and magnitude of the pending Fed pivot.

TD Securities’ analysts cautioned that its price target of US$2,300 per ounce may take some time to play out yet.

Citing February’s 2.6% contraction in the US Institute for Supply Management manufacturing index, the analysts said, “There will still need to be more evidence that the economy is slowing sufficiently to facilitate a steady drop in inflation before this rally becomes sustainable and moves to our target.”

Looking ahead to the pending release this week of February’s US ISM services, payrolls, wages and unemployment data, TD Securities said:

We suspect that data will be weaker, but not so poor as to drive yields much lower. As such, the market will have to wait for our $US2300+ trading target to manifest a while longer.

If bullion does rally to new record highs of US$2,300 per ounce on the back of falling yields, ASX 200 gold shares could deliver more strong outperformance ahead.

The post ASX 200 gold shares are booming on Monday. Here’s why they could keep shining bright appeared first on The Motley Fool Australia.

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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.

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