The S&P/ASX 200 Index (ASX: XJO) closed up 0.5% in May, but it certainly wasn’t helped by these three ASX 200 shares.

Below we look at the three companies on the benchmark index receiving the ignominious prize as the worst performers over the month just past.

Three ASX 200 shares down 16% to 19% in May

Starting with the best of the worst three performers, in terms of share price, we have Tabcorp Holdings Ltd (ASX: TAH).

The Tabcorp share price ended April trading for 74 cents. When the closing bell rang on 31 May, shares were swapping hands for 62 cents, putting the ASX 200 share down 16.2% over the month.

There was no fresh price sensitive news from the wagering and gaming products and services company in May. There were a few media reports on potentially inappropriate workplace language taking place at the company, as well as a minor being allowed to gamble at one of its venues.

But Tabcorp’s big May fall largely looks to be in line with the selling trend that commenced in September 2023. Despite a slight uptick today, the Tabcorp share price is now down 46.8% over 12 months.

Moving on to the second-worst performing ASX 200 share in May, we have Fletcher Building Ltd (ASX: FBU).

The Fletcher Buildings share price closed out April trading for $3.47 and ended May at $2.84 a share, down 18.2%.

Most of the pain for the building and materials company came on 13 May following an uninspiring market update.

Shares closed the day down 10.9% after the New Zealand-focused company reported on “weakened” market conditions in its materials and distribution divisions.

This led to a significant reduction in the company’s FY 2024 earnings before interest and taxes (EBIT) guidance. Management’s revised guidance of EBIT before significant items of $500 million and $530 million came in well below the prior guidance of $540 million to $640 million.

Up 3.0% today, the Fletcher Buildings share price is down 36.6% over 12 months.

Which brings us to the worst-performing ASX 200 share in May, Eagers Automotive Ltd (ASX: APE).

The Eagers Automotive share price ended April at $12.64 and closed out May at $10.12, down a painful 19.9%.

Most of those losses came on 22 May, when shares in the auto retailer closed down 15.0%.

That dramatic fall came on the heels of a trading update, which highlighted expected ongoing headwinds from inflation, interest rates and competition.

Eagers Automotive CEO Keith Thornton noted that given the difficult market conditions, “We expect to achieve an underlying trading performance for the first half of 2024 that is approximately 85% of the underlying profit before tax for the first half of 2023.”

Edging higher today, the ASX 200 share is now down 20.1% over 12 months.

The post The worst three performing ASX 200 shares in May unmasked appeared first on The Motley Fool Australia.

More reading

• Why APM, Fletcher Building, Navigator Global, and Strike Energy shares are storming higher
• These ASX shares can rise 25% to 100%+
• Guess which ASX 200 billionaire is buying up big again
• 4 ASX 200 shares receiving broker upgrades
• 4 excellent ASX dividend stocks to buy in June

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

The APM Human Services International Ltd (ASX: APM) share price has jumped 10.4% to $1.38 today after the All Ordinaries (ASX: XAO) stock accepted a $1.3 billion takeover bid.

Today’s acquisition news and subsequent share price boost follow a challenging period for the employment and human services business as low unemployment rates chipped into client flows.

Let’s take a look at the news.

Takeover bid accepted

In today’s announcement, APM advised it has entered into a scheme implementation deed with Ancora BidCo Pty Ltd, an entity controlled by US-based private equity outfit Madison Dearborn Partners (MDP).

The accepted agreement means MDP will buy all remaining APM shares it doesn’t already own for $1.45 cash per share, valuing APM at $1.3 billion.

While a previous bid from CVC Asia Pacific in February of $1.60 per share was higher than today’s accepted offer, APM rejected it for being too low at the time, and CVC walked away.

In the latest deal, eligible APM shareholders will have the option to receive either 90% or 100% of their takeover consideration in unlisted shares in the acquisition entity.

If the scheme is implemented, executive chair Megan Wynne and APM CEO Michael Anghie intend to receive 100% unlisted shares in the acquisition entity for their APM shares.

Why is APM accepting this offer?

The APM independent board committee (IBC) unanimously recommends that shareholders vote in favour of the takeover in the absence of a superior proposal. This recommendation is subject to an independent expert concluding and continuing to conclude that the scheme is in the best interests of APM shareholders.

The IBC is positive on the offer, saying it provided a “significant premium” to the undisturbed APM share price and delivered certainty of value. It noted the APM share price may trade at a significantly lower price in the absence of the takeover offer, and there were no alternative viable proposals.

The IBC cited the “uncertainty of the near-term outlook” as a key reason to accept the offer. It added that the ASX All Ords stock “continues to operate in an environment of extended low levels of unemployment and client flows, with increased support provided to achieve sustainable employment.”

While APM thinks these factors will “normalise over time” and that its other businesses can continue to grow, it is uncertain when this will occur.

The IBC also noted this offer allowed for shareholders to remain invested in APM, if they chose to do so.

Trading update

Also in a short trading update today, APM revealed it had experienced low client flows in Australia and the United Kingdom during April and May this year.

The company expects its FY24 profit to be “around the bottom” of its profit guidance range. FY24 underlying net profit after tax (NPATA) had been guided at between $95 million and $105 million, and underlying earnings before interest, tax, depreciation and amortisation (EBITDA) was previously guided to between $280 million and $290 million.

Additionally, APM expects the activity levels in the second half of FY24 to be “likely to continue into FY25.” It also noted that the completion of the refinancing of certain existing bank facilities was expected to result in a higher interest expense in FY25 compared to FY24.

What next?

APM will send shareholders a scheme booklet in July 2024, which will include information about the offer, the reasons for the IBC recommendation, an independent expert’s report, and details of the scheme meeting.

A meeting will likely be held in September 2024 for shareholders to vote on the proposal. If accepted, implementation is expected to occur in October 2024.

APM share price snapshot

The APM share price has lifted more than 9% since the start of 2024, but it’s been a bumpy ride for shareholders this year, as we can see in the graph below.

The post Guess which ASX All Ords stock is leaping 10% on a $1.3 billion bid appeared first on The Motley Fool Australia.

More reading

• Why APM, Fletcher Building, Navigator Global, and Strike Energy shares are storming higher
• APM share price grinds to a halt as investors await update on takeover offer

Motley Fool contributor Tristan Harrison has positions in APM Human Services International. 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 APM Human Services International. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

One of the great things about investing in shares is that you don’t have to do anything with them, while you hold them. There’s no rent to collect, no bills to pay, and no agents to deal with.

The companies just… do their thing.

It was that thought which prompted this tweet, on Saturday afternoon:

So, the ASX was closed today, because it’s a Saturday.

Yet, listed companies went about their business: mining,  selling groceries, processing transactions, collecting rents, providing insurance, generating electricity, and more.

The market is a sideshow.

I followed it up with:

When you own shares, you own small pieces of real businesses. If you only see them as things to buy, swap and sell, you’re missing the point, and being distracted from the real value creation.

Focus on the company, not the stock.

And then this:

Honestly, I’d be happy if the market opened for an hour, once a week.

Or a month, for that matter.

The minute-by-minute volatility is noise and action… but not much more.

Like my woodwork teacher’s sign:

“Don’t be like a rocking horse: plenty of movement, but no progress”

I figured it was a pretty stock-standard few tweets, and I didn’t expect much engagement.

But I was wrong.

More than a few people told me that Bitcoin was better, because it could be traded 24/7.

Uh-huh.

A couple of others told me they wanted the market open longer because it’d mean they could trade on the back of US news, or to avoid big share price movements at the beginning and end of the trading day.

In response?

I told them I couldn’t care less.

Truly, who needs to trade shares at 2.47am?

Or on a Saturday?

Sure, you can buy and sell Bitcoin 24/7 but… so what? 

Because let me remind you that there is no correlation between activity and success in the stock market.

Those who trade more don’t do better. In fact the research suggests exactly the opposite.

I can’t emphasise this enough, either: if you think you need the market open longer, or that you want to be able to trade more often, I think you’re missing the point.

(Too harsh? Sorry, but it’s true.)

The money in investing isn’t made in the trading. It’s made in the waiting.

Waiting while Woolworths Group Ltd (ASX: WOW) goes from $4.72 in 1999 to $31 today.

Waiting while BHP Group Ltd (ASX: BHP) goes from $4.91 to $45 over the same timeframe.

Waiting while REA Group Ltd (ASX: REA) goes from $1.09 to $184.

Do all companies do that? Nope. 

But let me remind you that according to fund manager Vanguard, an investment in the ASX over 30 years to June 30 last year turned a hypothetical $10,000 into over $130,000 in three decades – that’s with both the winners and the losers included.

The market didn’t have to be open 24/7 over that 30 year period.

In fact, if it was, it would have just tempted more people to trade more often… rather than just biding their time.

Yes, the ASX will probably eventually go 24/7. But it won’t be to help investors. It’ll be to help the exchange, and stock brokers, make more money from more activity.

Note: not more ‘wealth creation’, but ‘more activity’. You didn’t think most brokers were on your side, did you? (There are some noble exceptions… but not many.)

In the meantime? My investment strategy – and investment actions – wouldn’t change one iota if the stock market was only open for an hour, once a month. 

Why would they?

I buy quality companies when they’re available for good prices, then hold them for as long as it makes sense to do so… hopefully for years and decades to come.

That’s investing.

Everything else is noise.

(Oh, and speaking of noise, there are some fake social media ads going around, using a video of me and dubbing some dodgy offers over the top. And others using fake accounts in my name. Please be careful if you see them – always check the source!) 

Fool on!

The post Why I don’t want to trade 24/7 appeared first on The Motley Fool Australia.

More reading

• The worst three performing ASX 200 shares in May unmasked
• Guess which ASX All Ords stock is leaping 10% on a $1.3 billion bid
• How the CBA share price defied the bears to surge in May
• Leading brokers name 3 ASX shares to buy today
• What a pay rise for 2.6 million Aussies could mean for ASX shares

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

The Commonwealth Bank of Australia (ASX: CBA) share price shook off bearish overvaluation concerns to charge higher again in May.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed out April trading for $114.54 apiece. When the closing bell rang on 31 May, those same shares were swapping hands for $119.54, up 4.4%.

That saw the CBA share price race ahead of the ASX 200, with the benchmark index gaining a more modest 0.5% in May.

Here’s what happened in the month just past.

CBA share price hits new record highs

ASX 200 investors who paid heed to bearish analysts cautioning that Australia’s biggest bank is trading at an unjustifiably high premium to its peers and sold their holding will have missed out on the record high share price.

On 16 May, the CBA share price gained 1.9% to close at $122.26, marking a new all-time closing high.

The big four bank looks to have caught some tailwinds from the federal budget. With a number of cost-of-living relief measures packed in, the budget could ease the outlook for non-performing loans over the year ahead.

Investors’ primary focus this month was CBA’s quarterly update for the three months ending 31 March.

Although the CBA share price closed down 2.2% on the day, the ASX 200 bank stock made up for those losses, and a good bit more, over the following five trading days.

Investors initially favoured their sell buttons after CommBank reported a 1% decline in operating income and a 2% increase in operating expenses.

This, in turn, saw a 5% fall in the bank’s unaudited statutory net profit after tax (NPAT), which came in at $2.4 billion for the quarter. Although NPAT still came in slightly ahead of consensus expectations.

And investors will have noted CBA’s very solid Common Equity Tier 1 (CET1) ratio of 11.9%, which is safely above the minimal 10.25% ratio stipulated by the Australian Prudential Regulation Authority (APRA).

Also likely helping buoy the CBA share price over the following days was the relative resilience of the bank’s net interest margins (NIMs), which should help support profits.

And longer term, the bank remains a favourite with passive income investors for its reliable fully franked dividends. While the rising share price has seen CBA’s dividend yield dip to 3.8%, CommSec forecasts the dividend payouts will continue to tick higher over the next two years.

CBA is also engaged in a billion-dollar share buyback, which has been helping support the share price.

The post How the CBA share price defied the bears to surge in May appeared first on The Motley Fool Australia.

More reading

• Here’s the average wealth of Aussies who manage their own superannuation
• Buying ASX 200 bank stocks? Here’s why they could keep outperforming
• Why the CBA share price is predicted to ‘fall substantially’: broker
• Do Macquarie shares pay a decent ASX dividend?
• One ASX stock to buy and one to sell

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.

With so many shares to choose from on the Australian share market, it can be difficult to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Brickworks Limited (ASX: BKW)

According to a note out of Bell Potter, its analysts have upgraded this building products company’s shares to a buy rating with an improved price target of $29.50. The broker made the move on the belief that there is an attractive look-through opportunity with Brickworks relating to its investment in Washington H Soul Pattinson & Company Ltd (ASX: SOL). It notes that its mark to market valuation of Soul Patts is indicating that the stock is currently trading at a 3.6% discount to pre-tax NTA. In addition, with the broker positive on Brickworks’ rental growth outlook, it feels now is the time to buy and has upgraded its shares. The Brickworks share price is trading at $26.28 on Monday.

Champion Iron Ltd (ASX: CIA)

A note out of Goldman Sachs reveals that its analysts have retained their buy rating and $9.30 price target on this iron ore miner’s shares. This follows the release of the Canada-based miner’s FY 2024 results last week. Goldman highlights that Champion Iron reported record EBITDA of C$553 million, which was up 11% year on year and comfortably ahead of the market’s expectations. The good news is that more records are expected to be broken next year. Goldman notes that with Bloom Lake operating above nameplate and management ramping up Phase II, its analysts are expecting this to support 50%+ EBITDA growth in FY 2025. The Champion Iron share price is fetching $7.14 this afternoon.

Xero Ltd (ASX: XRO)

Analysts at Macquarie have retained their outperform rating and $180.70 price target on this cloud accounting platform provider’s shares. This follows news that Xero is lifting prices and updating plans in the United Kingdom in September. Macquarie was pleased with the changes, which mirror those undertaken in the Australia market recently. It believes the new plans will support a higher average revenue per user metric in the UK market through the simplification of its offering and increased bundling. The Xero share price is trading at $134.24 at the time of writing.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

More reading

• Why this broker just upgraded Brickworks shares to a buy rating
• Forget Fortescue and buy this ASX mining stock now
• 5 things to watch on the ASX 200 on Monday
• These ASX shares can rise 25% to 100%+
• Brokers name 3 ASX shares to buy now

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 Brickworks, Goldman Sachs Group, Macquarie Group, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool Australia has positions in and has recommended Brickworks, Macquarie Group, Washington H. Soul Pattinson and Company Limited, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Many Australians woke up to some happy news today – they would be getting a pay rise, and a hefty one at that. This news could have some significant impacts on ASX shares.

Yes, this morning, the Fair Work Commission announced that both award wages and the minimum wage would increase by 3.75% from 1 July this year.

This decision will affect up to 2.6 million Australians, or 20.7% of the country’s entire workforce, who are employed on award wages.

This decision will be welcomed by these workers, as it delivers a rise in wages that comes in just above the rate of inflation over the year. Inflation came in at 3.6% over the 12 months to 30 April 2024. So if price rises keep to this rate or fall even further, workers are in line for a real rise in living standards.

Here’s some of what the Fair Work Commission said on its decision:

Modern award minimum wages remain, in real terms, lower than they were five years ago, notwithstanding last year’s increase of 5.75 per cent, and employee households reliant on award wages are undergoing financial stress as a result.

This has militated against this Review resulting in any further reduction in real award wage rates. At the same time, we consider that it is not appropriate at this time to increase award wages by any amount significantly above the inflation rate, principally because labour productivity is no higher than it was four years ago and productivity growth has only recently returned to positive territory.

So good news for any Australian worker on an award wage today.

But how will this decision impact ASX shares and the Australian share market?

How does a minimum wage hike impact ASX shares?

Well, on one level, it will be a definite positive. More money in workers’ pockets means more money is available to spend in the economy. The fact that the rise comes in just above the rate of inflation means that this decision should have a stimulatory effect on consumer spending.

That should bode well for almost all sectors of the share market. But especially so for companies that sell goods and services that consumers tend to buy more of as their disposable income rises. That would include most ASX shares in the consumer discretionary sector, but perhaps also those in the consumer staples, healthcare, communications, industrial, financial, tech, utility and real estate sectors.

However, another factor we must consider is the impact that any broad rise in wages might have on inflation and, thus, on interest rates. As any attuned investor would know, the markets are particularly sensitive to interest rates right now. April’s inflation numbers ended up coming in higher than most commentators expected, dashing hopes of an imminent cut in interest rates.

In fact, some experts stated that these inflation numbers increased the likelihood that the Reserve Bank of Australia’s next move will be a rate hike.

From this lens, an above-inflation wage hike might not be the best news, as it arguably has the potential to add fuel to the inflation fire by increasing consumer spending at the wrong time.

Fortunately, one ASX expert doesn’t think this is a realistic scenario.

ASX expert: Inflation will keep falling

As reported in The Australian today, JPMorgan economist Tom Kennedy reckons that today’s decision won’t “move the needle on the Bank’s inflation/wage forecast or change its thinking on current monetary policy settings”.

Kennedy is predicting that the hike to award wages “will be neutral for aggregate wage growth, with a contribution very close to zero”. As such, JPMorgan is still pencilling in at least one RBA interest rate cut from early 2025.

No doubt this rosy outlook will come as music to ASX investors’ ears. Perhaps investors have already taken it to heart, judging by today’s healthy 0.76% rise for the S&P/ASX 200 Index (ASX: XJO) at present. But we’ll have to wait and see what happens.

The post What a pay rise for 2.6 million Aussies could mean for ASX shares appeared first on The Motley Fool Australia.

More reading

• Should you buy this defensive ASX 200 stock on a pullback?
• 5 things to watch on the ASX 200 on Monday
• Here’s how the ASX 200 market sectors stacked up last week
• These were the best performing ASX 200 shares in May 2024
• If you were born in the 1970s or later, your superannuation is delivering the best returns

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 JPMorgan Chase. 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.

Some might argue the frenzy on ASX artificial intelligence (AI) stocks has well and truly begun.

Since NVIDIA Corporation’s (NASDAQ: NVDA) epic financial results last month and similar impressive returns for other companies in the AI space, experts are constructive on the outlook for ASX AI stocks.

But it’s always wise to tread with caution. More thought is needed than to simply ‘ride the AI wave’.

If you’re hunting for an ASX AI stock with significant growth potential, I think Life360 Inc (ASX: 360) is one to consider closely.

Life360 shares have surged 105% this year to date and climbed from a 52-week low of $6.71 per share in December last year to today’s price of $15.34 at the time of writing.

Here’s why I think it is well-positioned for future growth.

Why Life360 is a top ASX AI stock

Life360’s core product is a smartphone app for location sharing. This app has become a reliable way for families to track children, frail individuals, and those with special medical needs.

The ASX AI stock’s recent financial performance has been sound, in my view. For instance, company revenues were up 15% year over year and increased to US$78.2 million in Q1 CY2024. Life360 also grew operating cash flow to US$10.7 million, an improvement of nearly $20 million from last year.

Broker Morgan Stanley has expressed its bullish sentiments on Life360. It cited the company’s extensive data collection as a potential AI advantage in a recent note.

Through its “huge volumes of user data,” Life360 has unique insights into what customers do with their time and money. Because of this, it sees “significant potential” for the company in the AI scene.

Solaris Investment Management also likes the growth outlook for the ASX AI stock. Talking to The Australian Financial Review, chief investment officer Michael Bell said the company had been a “very, very strong performer”, and that “importantly, [its] revenue has been growing”.

“Life360 [has] 66 million subscribers, and [it has] been growing aggressively over the last eight years”, he added, echoing Morgan Stanley’s statements.

Bright future prospects

Life360 also has the ability to enter new markets, a point highlighted by Bell Potter in a recent note. The company’s launch of ‘Driver Protect’, a subscription-based roadside assistance service, is a prime example of this, the broker says.

This new product is just one example of how the company has the “potential to leverage its large and growing user base to enter new markets and disrupt the legacy incumbents.”

Bell Potter labels potential future markets for the ASX AI stock as insurance, home security, and identity theft protection, to name a few. If they prove correct, I believe these opportunities could significantly boost the company’s growth trajectory.

The firm has a buy rating and a price target of $ 17.75 for Life360. This represents a potential upside of nearly 15% from the time of publication.

ASX AI stock Foolish takeaway

In my opinion, Life360 stands out as a top ASX AI stock well positioned to capitalise on Al-related tailwinds. It is looking to expand into new markets and boasts a substantial user base. This data can be used in specialty ways going forward.

While analysts are also constructive on the stock, it’s essential to remember the risks involved with investing and that past performance is no guarantee of future results.

The post I think this is the best ASX artificial intelligence (AI) stock to buy right now appeared first on The Motley Fool Australia.

More reading

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• Brokers name 5 fantastic ASX growth shares to buy in June
• Check out this soaring ASX stock, up 300% in 2 years, with more gains likely to come
• ‘Significant potential’: One unexpected ASX 200 AI share to buy now

Motley Fool contributor Zach Bristow 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.

The S&P/ASX 200 Index (ASX: XJO) is having a strong start to the week. In afternoon trade, the benchmark index is up 0.8% to 7,761.1 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are storming higher:

APM Human Services International Ltd (ASX: APM)

The APM Human Services International share price is up 10% to $1.37. Investors have been buying the human services company’s shares after it accepted a takeover offer. According to the release, APM has entered into a scheme implementation deed with Madison Dearborn Partners. Under the scheme, APM shareholders will receive $1.45 cash per share. The APM Independent Board Committee unanimously recommends that shareholders vote in favour of the scheme. This is in the absence of a superior proposal and subject to the independent expert’s report.

Fletcher Building Ltd (ASX: FBU)

The Fletcher Building share price is up almost 4% to $2.95. This morning, this building materials company announced amendments to its banking agreements which will extend the tenor of its debt facilities. In addition, the amendments will allow Fletcher Building to rely on more favourable terms for covenant testing through to the end of calendar 2025 if required. The company’s acting CEO, Nick Traber, said: “Given the current market environment and outlook, we have taken pre-emptive steps to reinforce the Company’s resilience for the medium term to position ourselves to navigate the tougher trading conditions.”

Navigator Global Investments Ltd (ASX: NGI)

The Navigator Global Investments share price is up 13% to $2.09. Investors have been buying this investment company’s shares after it upgraded its earnings guidance for FY 2024. Full year adjusted EBITDA is now expected to be between US$85 million to US$89 million, representing an increase of between 76% and 84% on FY 2023’s adjusted EBITDA. Management advised that strong profit distributions from its partner firms is driving a significant second half earnings uplift. The company’s CEO, Stephen Darke, believes “this underscores both the resilience and earnings potential of NGI’s diversified portfolio of global alternative investment managers.”

Strike Energy Ltd (ASX: STX)

The Strike Energy share price is up 6% to 21.2 cents. The catalyst for this has been an update on the Walyering-7 (W7) well within the Perth Basin. According to the release, W7 has intersected a high-quality conventional gas accumulation to the north-east of the currently producing Walyering gas field. A total of 23m of net gas pay with an average porosity of 16% has been measured.

The post Why APM, Fletcher Building, Navigator Global, and Strike Energy shares are storming higher appeared first on The Motley Fool Australia.

More reading

• APM share price grinds to a halt as investors await update on takeover offer
• Here are the top 10 ASX 200 shares today
• ASX 200 energy stock rockets 8% on ‘significant’ milestone
• Why Playside Studios, Pro Medicus, Strike Energy, and Winsome shares are charging higher
• Why AIC Mines, Fletcher Building, Nufarm, and Wesfarmers shares are dropping

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

Three S&P/ASX 200 Index (ASX: XJO) stocks did more than their fair share of the heavy lifting in May.

The month just past saw the ASX 200 close up 0.5% at 7,701.7 points.

But these three companies left those gains far behind.

Which companies am I talking about?

Read on.

Three ASX 200 stocks ripping higher in May

The third best performer on the Aussie benchmark index in May was Alumina Ltd (ASX: AWC), a holding company focused on alumina and bauxite production.

Shares in the ASX 200 stock closed out April trading for $1.63 and finished May at $1.91 apiece, up 16.6%.

The Alumina share price has been surging in 2024 amid fast-rising aluminium prices. Up 14% in 2024, the aluminium price gained more than 6% in May to close the month at US$2,703 per tonne.

Of course, the big news in May was the market update on the proposed takeover of Alumina Alcoa Corp (NYSE: AA), announced on 21 May.

The United States-based mining giant is looking to acquire Alumina, offering 0.02854 Alcoa shares for each Alumina share. With the Alcoa share price up 26% in May, investors were taking advantage by piling into Alumina shares.

Moving on to the second ASX 200 stock racing higher in May, which was PEXA Group Ltd (ASX: PXA).

Shares in the digital property exchange and data insights business closed April at $12.26 and finished May trading for $14.63 apiece, up 19.3%.

Much of that came on 2 May, when the ASX 200 stock closed up 11.0% after reporting it was progressing a strategic partnership with United Kingdom based lender, NatWest. Under the deal, NatWest will employ PEXA’s digital property exchange technology to deliver 48-hour remortgage transactions to its customers. The platform will also enable NatWest to speed up the handling of sale and purchase transactions.

Commenting on the deal, Joe Pepper, UK CEO of PEXA said, “As one of the UK’s major lenders, NatWest shares a common goal of driving digital innovation and transforming the customer experience to address the chronically long time it takes to transact property in the UK market.”

Investors also responded positively to PEXA’s third-quarter update on 7 May, with shares closing up 1.2% on the day.

Which brings us to the top performing ASX 200 stock in May, Telix Pharmaceuticals Ltd (ASX: TLX).

The Telix Pharmaceuticals share price ended April at $15.05 and closed out May at $18.15, up an impressive 20.6%.

There was a lot going on with the biopharmaceutical company over the month, starting on 3 May. That’s when the company announced it had completed the acquisition of QSAM Biosciences, a US-based company developing therapeutic radiopharmaceuticals for primary and metastatic bone cancer.

Shares dropped 4.2% when the company reported its first-quarter results on 17 May.

But investors were quick to pile back into the ASX 200 stock the following trading day when the company reported filing for an initial public offering (IPO) on the Nasdaq.

And Telix shares finished the month with a bang, closing up 15.3% on 31 May after management announced positive results from the company’s ProstACT SELECT clinical cancer trial.

Telix’s TLX591 drug is being developed to treat adult patients with PSMA-positive metastatic castrate-resistant prostate cancer.

The post Sell in May and go away? Not for these top 3 ASX 200 stocks! appeared first on The Motley Fool Australia.

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• Why AVITA Medical, Catapult, Meridian Energy, and Telix shares are storming higher today
• Why is the Telix Pharmaceuticals share price soaring 11% 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 positions in and has recommended PEXA Group and Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.