Stock Pick

  • ASX 200 shares are still cheap! Here’s one to consider buying now

    A woman on holiday stands with her arms outstretched joyously in an aeroplane cabin.

    Despite the S&P/ASX 200 index (ASX: XJO) rising 7.5% in the last 12 months, many shares with strong fundamentals are still trading at attractive valuations.

    Among these, Qantas Airways Ltd (ASX: QAN) stands out as an excellent choice, according to one top broker.

    As my Foolish colleague James covered this week, analysts at Goldman Sachs believe Qantas shares remain undervalued. In a recent note, they set a price target of $8.05 apiece, with an upside potential of 33% over the next 12 months.

    Why this ASX 200 share is a bargain

    Goldman Sachs analysts reckon that the market is underestimating Qantas’ stronger earnings potential.

    The broker cites Qantas’ $1 billion cost reduction program and improved operational performance as key drivers of future growth.

    In particular, it projects “earnings capacity to structurally improve… with FY 2024 estimated [profit before tax] 51% ahead of pre-COVID levels”.

    The current undervaluation is a prime buying opportunity, Goldman says, noting “[t]he discounted valuation versus peers and its own history implies that the market is pricing in a trade-off between investment (fleet and customer) and capital returns (dividends & buybacks)”.

    Qantas’ loyalty division is another key growth driver. In the first half of FY 2024, the division contributed $270 million in underlying earnings before interest and tax (EBIT), up 23% year-on-year.

    The airline aims to boost this segment’s EBIT to $800 million to $1 billion by FY 2030, enhancing overall profitability.

    Add dividends to your Qantas shares

    Moreover, Goldman Sachs anticipates the return of this ASX 200 shares’ dividend soon, adding to the bullish potential for Qantas shares.

    Moving forward, Goldman Sachs expects Qantas to maintain a strong balance sheet, allowing for capital returns alongside fleet renewal. This, it says, should support healthy dividends and share repurchases.

    The company has already announced an increase in its on-market share buyback by up to $400 million in its H1 FY 2024 results.

    Analysts at Goldman now forecast a total of $1.6 billion in buybacks and dividends over FY 2025-2027. This includes $1.2 billion in dividends (73.6 cents a share).

    If this were to materialise, it would translate to a forward dividend yield of 12.4% at Qantas’ current market capitalisation of $9.6 billion at the time of publication.

    Goldman isn’t the only broker bullish on Qantas. The total 17 brokers covering the stock listed on Bloomberg are either neutral or bullish on the company – but none bearish – according to The Australian Financial Review.

    How attractive is the valuation vs. ASX 200 shares?

    Currently, Qantas trades at a price-earnings ratio (P/E) of 6.6 times — significantly below the current ratio of 18 times for the exchange-traded fund (ETF) that tracks the benchmark index, iShares Core S&P/ASX 200 ETF (ASX: IOZ).

    This represents value, as investors are paying $6.60 for every $1 in Qantas’ earnings versus $18 per dollar of earnings for the ETF.

    In return, you are potentially buying shares in a company that recently produced $1.25 billion in underlying profit before tax. Qantas is also in “new identity” mode after recent scandals tarnished the brand. And, it is projected to return $1.6 billion of capital to shareholders in the next three years.

    Foolish takeaway

    Qantas could be an interesting investment opportunity due to potential valuation mismatches if analysts are right. Strong earnings potential and the imminent return of dividends are two factors that could make Qantas a top pick for savvy ASX investors looking for growth and income.

    Qantas shares are trading 13% higher this year to date but are down 9% on this time 12 months ago.

    The post ASX 200 shares are still cheap! Here’s one to consider buying now appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Qantas Airways Limited right now?

    Before you buy Qantas Airways Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Qantas Airways Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    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 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.

  • Veteran investor Paul Graham breaks down why Sam Altman left Y Combinator

    Paul Graham Y Combinator
    Paul Graham said he and his wife gave Altman a choice between OpenAI and Y Combinator.

    Y Combinator

    • OpenAI CEO Sam Altman has faced a lot of negative press recently, impacting his once-clean image.
    • Not least among the controversies was the collapse of OpenAI's safety team.
    • Tech investor Paul Graham has come to Altman's defense, putting to rest an old rumor.

    OpenAI CEO Sam Altman has been hit with a bout of bad press in the past few weeks, which has cast a shadow over his once-squeaky-clean image. 

    There was the fumble with OpenAI's new AI assistant, whose voice resembled Scarlett Johanssen in the movie "Her." There was also the abrupt breakdown of OpenAI's safety team, which raised doubts about the company's commitment to responsible AI development.

    Amid these swirling dramas, legendary tech investor Paul Graham defended Altman by putting an old rumor to rest. 

    Altman wasn't fired from his post as president of the famed startup accelerator, Y Combinator, Graham wrote in a post on X on Thursday. Graham cofounded the accelerator in 2005, and Altman served as its president from 2014 to 2019. 

    https://platform.twitter.com/widgets.js

    According to Graham, Altman was simultaneously running OpenAI and Y Combinator until OpenAI announced the creation of a new for-profit entity in 2019 and selected Altman as president. Graham said he and his wife, Y Combinator's cofounder Jessica Livingston, told Atlman that if he wanted to work at OpenAI, they'd find another person to run Y Combinator.

    "If he'd said that he was going to find someone else to be CEO of OpenAI so that he could focus 100% on YC, we'd have been fine with that too," Graham wrote. "We didn't want him to leave, just to choose one or the other.

    Read the original article on Business Insider

  • A top US admiral got a $500,000 job for steering a firm a sole-source contract, prosecutors allege

    Adm. Robert P. Burke, commander, U.S. Naval Forces Europe and Africa, gives remarks during the opening ceremony for Exercise Obangame Express, March 19, 2021.
    Robert P. Burke, the former commander of U.S. Naval Forces Europe and Africa, was charged by federal prosecutions in a bribery case.

    MC1 (SW/AW) Fred Gray IV

    • A former top Navy admiral was arrested Friday on charges related to a bribery scheme.
    • The Justice Department alleges Burke accepted bribes to steer work towards a company.
    • Burke is a retired four-star and the former vice chief of naval operations.

    A retired top US Navy admiral who briefly served as the second highest-ranking Navy officer was arrested Friday on federal charges related to a bribery scheme.

    The US Department of Justice alleged that from 2020 to 2022, then-Adm. Robert Burke accepted bribes to help a training firm win certain contracts while he was commanding US Naval Forces Europe and Africa in exchange for a high-paying job as soon as he retired.

    The indictment said that Burke, a former four-star, used "his official position to influence other Navy officers to award another contract to Company A to train a large portion of the Navy with a value [the contractors] allegedly estimated to be 'triple digit millions.'"

    The company had previously had a contract with the Navy to provide a workforce training pilot program from August 2018 to July 2019 before it was then terminated in late 2019.

    While the company remains unnamed in the DOJ release, Yongchul "Charlie" Kim and Meghan Messenger are named as the two other co-defendants in the case and identified as co-CEOs of the company. Kim and Messenger are listed as co-CEOs on the site of company called NextJump.

    Burke, the indictment said, is alleged to have ordered his staff to award a contract to the company to train personnel directly under his command in Italy and Spain in December 2021. The contract's cost was $355,000.

    After Burke retired from the Navy in October 2022, he began working at the company with a yearly starting salary of $500,000, the indictment added.

    DOJ also noted that Burke purportedly lied to the Navy about this employment and his relationship with the company, writing: "To conceal the scheme, Burke allegedly made several false and misleading statements to the Navy, including by creating the false appearance that Burke played no role in issuing the contract and falsely implying that Company A's employment discussions with Burke only began months after the contract was awarded."

    Burke, Kim and Messenger did not immediately reply to a message from BI seeking comment Friday.

    Burke was the Navy's highest ranking officer in Europe from July 2020 to 2022. Prior to that, he was the Vice Chief of Naval Operations for one year. A career submariner, his operational assignments include both attack and ballistic submarines.

    Read the original article on Business Insider

  • Growth spurt: 2 ASX growth shares set to skyrocket

    A young boy sits on his father's shoulders as they flex their muscles at sunrise on a beach

    Looking for promising ASX growth shares to add to your portfolio? The Australian share market is a great place to begin. As a reminder, a growth stock is a company that is expected to grow revenues and profits faster than the overall market.

    Investors often pay high prices for these companies, but all that glitters is not always gold. While the allure of “growth at all costs” is appealing, one has to look for high-quality businesses in the space.

    Here are two top ASX growth contenders that I think could offer significant upside potential.

    Flight Centre Travel Group Ltd (ASX: FLT)

    The first ASX growth share on the radar today is the Australian-based travel group Flight Centre. Trading at $18.85 per share at the market close on Friday, the stock is down more than 11% this month.

    Flight Centre, one of the largest travel groups globally, has a footprint in leisure and corporate travel across the Asia-Pacific region, the Americas, Europe, the Middle East, and Africa. This huge wingspan (pardon the pun), in my opinion, places the company well amid the travel sector’s ongoing recovery after COVID-19 smashed the sector in 2020 and 2021.

    The team at Morgans gave Flight Centre a buy rating in a recent note. The broker said the company had the “greatest risk-reward profile” of travel stocks it covered, adding that it was particularly attractive because the business targeted a 2% net profit margin in FY 2025.

    Morgans also noted that Flight Centre’s risk lay in executing its changing business model. But, the company was “well placed over coming years” to capitalise on trends in travel recovery.

    The broker rated the ASX growth share as an add with a $27.27 price target. This represents a 44% upside potential.

    NextDC Ltd (ASX: NXT)

    NextDC has been a stellar performer in the ASX growth space, with its shares rising from $8.15 in October 2022 to $17.79 at Friday’s close.

    It provides colocation services through its Tier III and Tier IV data centres. These are located in Australia and the APAC region.

    The company looks to benefit significantly from the surge in demand for cloud computing and artificial intelligence (AI). As noted recently, AI global revenues are expected to grow at a compound annual growth rate (CAGR) of 72%, according to UBS.

    Morgan Stanley rates NextDC a buy with a $20 valuation, whereas fellow broker Morgans values it at $19 per share. This implies a potential gain of 13.5% at the time of publication.

    Should you consider these ASX growth shares?

    Although past performance is never a guarantee of future results, I think Flight Centre and NextDC represent two interesting opportunities in the ASX growth space.

    Both names have strong analyst backing. Flight Centre’s strategic transformation and recovery in travel demand, combined with NextDC’s leadership in data centre services, could be underlying themes that rally both shares.

    The post Growth spurt: 2 ASX growth shares set to skyrocket appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Flight Centre Travel Group Limited right now?

    Before you buy Flight Centre Travel Group Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Flight Centre Travel Group Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • I’ve worked at Costco for 18 years. These 8 Kirkland Signature items feel high-end.

    White boxes of hard seltzer with images of white cans with images of fruit on them. The flavors include mango, grapefruit, black cherry, and lime.
    Costco carries plenty of high-quality items.

    Veronica Thatcher

    • I've worked at Costco for 18 years, so I have a few favorite high-quality items I like to get there.
    • In my opinion, the Kirkland Signature eyeglasses are comparable to those of designer brands.
    • The Kirkland Signature hard seltzers are tasty and perfect to bring to parties or tailgates.

    I've worked at Costco for 18 years and love picking up high-quality products for my family. Oftentimes, I buy items from Costco's house brand, Kirkland Signature, which makes over 350 products, from food items to home essentials.

    I find that buying products from the Kirkland Signature brand, which made up about a quarter of Costco's revenue in 2021, saves my family money.

    Here are eight high-quality Kirkland Signature items I grab for my family of four at Costco.

    Prices may vary by location.

    The Kirkland Signature cage-free liquid egg whites help me reach my protein goals.
    Blue box of cage-free egg whites in a shopping cart with a picture of an egg-white omelet on it
    I use the Kirkland Signature cage-free liquid egg whites in my meals every week.

    Veronica Thatcher

    My family and I try to maintain a protein-rich lifestyle with the help of items like the Kirkland Signature cage-free egg whites.

    I eat these egg whites five times a week to reach my protein goals and feel full. If you enjoy egg whites and want a great deal, I recommend getting them at Costco.

    Each box contains six cartons for $11.40.

    I get the Kirkland Signature salmon-and-sweet-potato dog food for my pet.
    Blue and white bags of salmon-and-sweet-potato dog food with a picture of a husky on the bag
    The Kirkland Signature Nature's Domain salmon-and-sweet-potato dog food contains lots of great ingredients for my pet.

    Veronica Thatcher

    I always want to buy high-quality food for my pet, so I choose Nature's Domain Kirkland Signature salmon-and-sweet-potato dog food. I love that it's grain-free and contains vitamin E, prebiotic fiber, and omega fatty acids.

    A 35-pound bag of the salmon-and-sweet-potato dog food is $53 at my location.

    The Kirkland Signature bath tissue is one of my essentials. 
    Large package of Kirkland Signature bath tissue with a blue design in a Costco cart in parking lot
    The Kirkland Signature bath tissue is better than many other brands I've tried.

    Veronica Thatcher

    The Kirkland Signature bath tissue is the only brand of toilet paper I buy. This soft tissue is much better than most brands I've purchased and is pretty affordable at Costco.

    I like how the package comes with individually wrapped sets of six rolls, so I can easily store some bundles in the closet and place others in the bathroom. A pack of Kirkland Signature bath tissue with 30 rolls is $23.50 at my Costco.

    We pretty much only use the brand's alkaline AA batteries.
    Several packs of Kirkland Signature AA batteries in red boxes with Kirkland Signature label on them at Costco
    The Kirkland Signature alkaline AA batteries are our go-to for games, remotes, and more.

    Veronica Thatcher

    The Kirkland Signature alkaline batteries are my go-to. We need batteries for many things nowadays, and having these on deck for toys, games, and remote controls is essential.

    The Kirkland Signature batteries have a 12-year shelf life, which is comparable to other leading brands. At my store, each package of 48 batteries costs $16.

    I've never regretted buying my 12-piece nonstick cookware set.
    A box of cookware with an image of several black pots and pans in a gray kitchen on the front of the packaging
    I've used the Kirkland Signature 12-piece nonstick cookware set to make many meals.

    Veronica Thatcher

    I cook every day, and finding nonstick pots and pans that I liked took me a while. Less than a year ago, I tried the Kirkland Signature nonstick hard-anodized cookware set and haven't been disappointed.

    This cookware set contains 12 pieces, including saucepans, skillets, and lids. It's handwashable and oven-safe up to 400 degrees Fahrenheit.

    I bought this cookware set for $130.

    The Kirkland Signature hard-seltzer variety pack is great to bring to parties.
    White boxes of hard seltzer with images of white cans with images of fruit on them. The flavors include mango, grapefruit, black cherry, and lime.
    The Kirkland Signature hard-seltzer variety pack contains four flavors, so there's something for everybody.

    Veronica Thatcher

    Kirkland Signature hard seltzers are perfect for parties and tailgates. The 12-ounce cans contain 5% alcohol and come in mango, grapefruit, black-cherry, and lime flavors.

    The 24-packs of Kirkland Signature hard seltzers are $19 at my store.

    I never have to worry about ripping the brand's Flex-Tech 13-gallon kitchen trash bags.
    Purple boxes with images of garbage bags with an orange drawstring and a garbage can in the background on them
    The Kirkland Signature Flex-Tech 13-gallon kitchen trash bags seem super strong.

    Veronica Thatcher

    I promised myself I would never buy trash bags from anywhere else but Costco. Compared to the offerings at other stores, the Kirkland Signature Flex-Tech kitchen bags are the best price I've seen — I can get a year's supply for about $20.

    These trash bags fit perfectly in my 13-gallon trash can. They have great stretch and drawstrings, so they can easily be pulled out of a trash can. Every box contains 200 bags, which means each bag is $0.10.

    I think the Kirkland Signature glasses are comparable to designer ones.
    Several eyeglasses on wooden shelf display on red table at Costco. Three pairs of glasses on the top shelves are also sunglasses
    We buy a pair of Kirkland Signature eyeglasses each year.

    Veronica Thatcher

    Every year, my family and I have our eyes examined and pick out glasses at Costco's optical center. Costco carries designer brands, but I think the high-quality Kirkland Signature lenses are right up there with them.

    These lenses are stylish, relatively affordable, and covered by Costco's 100% satisfaction guarantee policy. Glasses and sunglasses at my Costco start at $30.

    Click to keep reading Costco diaries like this one.

    Read the original article on Business Insider

  • Walmart store manager says he ‘almost fainted’ when he found he could make up to $530K under a new pay plan

    A Walmart cart in a parking lot
    A Walmart cart in a parking lot

    FREDERIC J. BROWN / Getty Images

    • Earlier this year, Walmart announced a new store manager pay plan that tops out at $530,000.
    • Store manager Greg Harden told Bloomberg he "almost fainted" when he learned of it.
    • Walmart says better pay and benefits, plus better tech, have lowered turnover among store leadership.

    Walmart made waves earlier this year when it announced it was upping pay for store managers, with some potentially able to earn up to $530,000.

    "I almost fainted when I found out," said Greg Harden, a Supercenter manager in Texas told Bloomberg.

    Harden currently manages over 400 workers and more than $100 million in sales at his store in Grand Prairie, Texas, one of the largest in the Dallas area, according to the report.

    Under the new plan, Walmart says the average base salary for US store managers is now $128,000, up from $117,000, while the top-paid Supercenter managers will see a base salary of $170,000.

    Add to that a 200% performance bonus and stock grants worth between $10,000 and $20,000 — depending on store size — and the package starts to look quite lucrative for a job that notably does not require a four-year college degree.

    Still, it's a lot of work to run a Walmart, and Harden told Bloomberg he has put in lots of six-day weeks with 10-hour shifts that start at 5 a.m. each morning.

    Other managers told the publication it's a bit like being in charge of a small town — to the point where they could consider a job like being mayor.

    Walmart's executive vice president of store operations Cedric Clark told Bloomberg the pay increase, along with recent improvements in benefits and a slate of new tech tools, have helped to improve morale and reduce turnover among store leadership.

    You can read the outlet's full interview with store manager Greg Harden here.

    If you are a Walmart store manager who would like to share your perspective, please contact Dominick via email or text/call/Signal at 646.768.4750. Responses will be kept confidential, and Business Insider strongly recommends using a personal email and a non-work device when reaching out.

    Read the original article on Business Insider

  • Russia’s creeping advance is costing it 1,200 soldiers a day: Western intel

    A Ukrainian military tank fires during military training as the war between Russia and Ukraine continues in Donetsk Oblast, Ukraine on May 28, 2024.
    A Ukrainian military tank fires during military training as the war between Russia and Ukraine continues in Donetsk Oblast, Ukraine on May 28, 2024.

    Diego Herrera Carcedo/Anadolu via Getty Images

    • Russia's casualties reached an average of 1,200 per day this month, according to UK intelligence.
    • It's the highest since the start of the war, likely due to costly offensives across the front lines.
    • Russia is currently prioritizing attacks in and around Kharkiv in Ukraine's northeast. 

    Russia's intense attacks across the front line have been costly, with the number of casualties per day reaching a new peak this month, according to new intelligence.

    The assessment attributes the elevated casualty rate to Russia's brutal ongoing offensive, noting that Russia's ability to replenish its units is stretched thin due to its consistent losses.

    According to Friday's intel from the UK Ministry of Defense, the average number of Russian personnel casualties was over 1,200 a day in May, the highest number reported since the war began. The ministry also said the total number of killed or wounded Russian soldiers since the February 2022 invasion is likely at 500,000.

    May's elevated casualty rate is likely due to a variety of factors, most notably Russia's ongoing offensive to try to capture more ground before Ukraine's frontline is rearmed by more ammunition sent by the US. It's likely also the result of Russia rushing relatively inexperienced and untrained soldiers into battle, often in bloody head-on assaults.

    Per the ministry, "It is highly likely that most Russian forces receive only limited training, and they are unable to carry out complex offensive operations. As a result, Russia employs small-scale but costly wave attacks in an effort to weaken Ukrainian defenses."

    Ukrainian gunners firing at Russian positions in the Kharkiv region.
    Ukrainian gunners firing at Russian positions in the Kharkiv region.

    Anatolii Stepanov/AFP via Getty Images

    Such attacks are seen in areas around Kharkiv, Ukraine's second largest city. Just Thursday, the Institute for the Study of War, a Washington DC-based think tank, wrote that Russian forces look to be transferring forces to areas north of Kharkiv, citing senior Ukrainian military officials.

    While the transfer "indicates that the Russian military likely continues to prioritize efforts to draw and fix Ukrainian forces from critical sectors of the frontline in eastern Ukraine," ISW wrote, as well as suggests Russia's plan is to launch the second phase of their offensive in northern Kharkiv, Ukrainian Commander-in-Chief Colonel General Oleksandr Syrskyi said that the Russian military doesn't have enough manpower in the area to launch a full-scale offensive that breaks Ukraine's defenses.

    Russia's high losses have become one of the most striking narratives of the war, an attritional warfare strategy that depends on massive firepower and human wave attacks by inexperienced, ill-equipped troops with little care for casualties or morale.

    Prior to UK intel on casualties in May, previous assessments from the ministry reported spikes in Russia's daily average loss rate, tracking from 400 in 2022, to 693 in 2023, and 913 in the first quarter of 2024.

    For Russia, part of the appeal of these massive human wave attacks may be their ability to keep a consistent pressure on Ukrainian defenses, forcing Ukraine to deplete ammunition to prevent being overwhelmed. This brute force strategy plays to Russia's strengths: a much larger population and defense industry.

    But Russia's high casualties also prevents it from training more capable units and keeping a majority of its troops in battle long enough to gain experience. Per the UK ministry's update on Friday, "the need to continuously replenish front line personnel will almost certainly continue to limit Russia's ability to generate higher capability units."

    Read the original article on Business Insider

  • A Sequoia partner announced he’s backing Donald Trump following his felony conviction, highlighting a political shift in Silicon Valley

    Donald Trump
    Donald Trump, pictured at Trump Tower following his guilty verdict, has increasingly found support in Silicon Valley.

    David Dee Delgado/Getty Images

    Shaun Maguire, a partner at the prominent venture capital firm Sequoia, announced he'll be cutting a $300,000 check to Donald Trump — just minutes after the former president was found guilty of 34 felony counts. The timing, Maguire said, was not a coincidence.

    In a lengthy screed on X, Maguire, who said he voted for Hilary Clinton in 2016 and did not vote in 2020, outlined his reasoning — including a take about the "double standards and lawfare against Trump."

    He also acknowledged that it may not be the most shrewd move for business.

    "I know that I'll lose friends for this. Some will refuse to do business with me," he wrote. "The media will probably demonize me, as they have so many others before me. But despite this, I still believe it's the right thing to do."

    Maguire, who did not respond to a request to comment from Business Insider, may be less alone than he thinks.

    Following his conviction, Trump's campaign reported raising a record $34.8 billion. And while that amount was mostly from small donors, per the Trump team, some big-money donors and Silicon Valley titans have signaled their support for the former president — and the guilty verdict doesn't seem to have stopped them.

    Billionaire venture capitalist David Sacks, who is co-hosting a fundraiser for Trump next week, called the trial a "sham." Elon Musk replied in agreement with Maguire. Investor Keith Rabois reposted various takes that criticized the verdict.

    While Silicon Valley has long been a liberal hub, Trump has been courting the big-pocketed tech executives and venture capitalists there.

    Chamath Palihapitiya, another venture capital billionaire and Sacks' podcast partner, will also cohost next week's Trump fundraiser at Sacks' home, despite donating six figures to Biden in 2020. Musk has reportedly been in talks with Trump regarding an advisory role, should he win.

    Others, like venture capitalist Marc Andreeson and Rabois, have not announced their support for Trump but have criticized Biden.

    The current administration's stance on regulation — particularly the FTC's approach to Big Tech companies — and calls for increased taxes on the wealthy has turned some former Democrats against the party.

    The members of the monied West Coast class throwing their support behind Trump are mirroring some Wall Street counterparts. Last week, Blackstone CEO Steve Schwarzman announced he'd be backing the former president. Hedge fund giant Bill Ackman is reportedly leaning toward endorsing him, too.

    Of course, the growing number of influential Silicon Valley voices supporting Trump — Sacks and Palihapitiya have their popular podcast, Musk has his an entire social media platform — are not representative of many of the area's wealthy inhabitants.

    For example, earlier this month, former Yahoo CEO Marissa Mayer and venture capitalist Vinod Khosla hosted fundraising events for Biden.

    Read the original article on Business Insider

  • 3 Australian shares to help secure your future

    Three people in a corporate office pour over a tablet, ready to invest.

    Australian shares have proven to be helpful wealth-builders over the long term. The ASX share market has returned an average return per annum of approximately 10% over the ultra-long term. That level of return can help secure anyone’s future – it doubles someone’s money in around eight years.

    I believe there are certain ASX stocks that can deliver returns even stronger than 10% per year following recent sell-offs.

    Owning businesses with both capital growth and dividend potential is compelling. The passive income rewards shareholders for holding shares during their ownership. Hence, I think the current valuations make the below Australian shares very appealing.

    Accent Group Ltd (ASX: AX1)

    Accent is an ASX retail share that distributes several global shoe brands in Australia, including Hoka, Kappa, Vans, Skechers, Henleys, Merrell, Dr Martens, and Ugg. The company also has its own brands, including The Athlete’s Foot, Stylerunner, Platypus, Nude Lucy, and Glue Store.

    The chart below shows that the Accent share price has dropped around 30% from April 2023.

    I think this is the right time to buy while investors are worried about factors like inflation, interest rates and retail spending. I view retail as a cyclical sector, so it’s good to pounce when conditions appear weak in the short term.

    Accent continues to expand its store network, which I believe will enable its earnings to bounce higher in a couple of years once households are able and willing to spend more on retail. A recovery could take two years (or more) because interest rates may take a while to be cut. Having a larger store network could mean more sales and greater scale benefits.

    According to the 2026 financial year forecast on Commsec, the Accent share price is valued at just 11x FY26’s estimated earnings with a possible grossed-up dividend yield of almost 11%.

    Universal Store Holdings Ltd (ASX: UNI)

    This Australian share owns a number of premium youth fashion brands including Universal Store, THRILLS, Worship and Perfect Stranger.

    It’s another ASX retail share where the valuation has declined. The Universal Store share price is more than 40% lower than it was in November 2021, as we can see on the chart below.

    There are three reasons why I think it’s a buy.

    First, its store count continues to grow, giving the company additional scale. In the first half of FY24, it added another six stores to its network, bringing the total network to 100 in Australia.

    Second, it is rolling out Perfect Stranger as a standalone retail format. This brand is growing quickly, and HY24 Perfect Stranger sales increased by 59.7% to $6.6 million.

    Third, the dividend is appealing. It has grown its dividend each year since 2021 and is projected to pay a grossed-up dividend yield of just under 10% in FY26, according to Commsec. It’s valued at around 10x FY26’s estimated earnings.

    Johns Lyng Group Ltd (ASX: JLG)

    This Australian share specialises in repairing and restoring buildings and contents after damage from events like storms, flooding, fire and so on. The company has a segment that provides catastrophe response services.

    This is another stock where the valuation looks much more appealing after a decline. Since February 2024, the Johns Lyng share price has fallen more than 20%, as shown on the chart below.

    The company’s core division continues to grow steadily in Australia and the US. In the HY24 result, the company reported its insurance building and restoration services (IB & RS) revenue increased 13.7% to $426.1 million, and the IB & RS ‘business as usual’ (BaU) earnings before interest, tax, depreciation and amortisation (EBITDA) increased 28.1% to $55 million. I like seeing profit rise faster than revenue.

    Compounding earnings at a double-digit pace could see Johns Lyng make significantly more profit in three to five years.

    I’m also bullish about the business because it’s growing into adjacent areas that offer defensive earnings. For example, it’s acquiring strata management businesses, which could also unlock synergies with the core business.

    According to Commsec, the Johns Lyng share price is valued at around 22x FY26’s estimated earnings.

    The post 3 Australian shares to help secure your future appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Accent Group Limited right now?

    Before you buy Accent Group Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Accent Group Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    Motley Fool contributor Tristan Harrison has positions in Accent Group and Johns Lyng Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group. The Motley Fool Australia has recommended Accent Group and Johns Lyng Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

  • Top ASX shares to buy in June 2024

    A happy looking woman holding a colourful umbrella against a grey cloudy sky.

    The month of June can be a great time to cast a critical eye over your ASX share portfolio and give it a bit of a shakeup if needed. The end of the financial year is almost upon us, which means the tax implications of shares bought and sold throughout the year will soon be realised.

    For those wishing to offset any capital gains made during FY24 by selling off some stock losers, now would be the time to start making these decisions.

    Furthermore, with the new financial year not far off, right now can be the perfect opportunity to revisit your investment goals, and sanity-check whether your ASX shares are measuring up.

    If you’re looking to bring in some new heavy hitters to your portfolio before FY24 draws to a close, you’ve come to the right place. Because we asked our Foolish writers which ASX shares they think look the most opportune in June!

    Here is what they told us:

    5 best ASX shares for June 2024 (smallest to largest)

    • Objective Corporation Ltd (ASX: OCL), $1.18 billion
    • Corporate Travel Management Ltd (ASX: CTD), $1.95 billion
    • Webjet Ltd (ASX: WEB), $3.43 billion
    • Qantas Airways Limited (ASX: QAN), $10.02 billion
    • Vanguard Australian Shares Index ETF (ASX: VAS), $14.81 billion

    (Market capitalisations as of market close 31 May 2024).

    Why our Foolish writers love these ASX stocks

    Objective Corporation Ltd

    What it does: If you work in the public sector, there’s a good chance your computer cursor has clicked through one of Objective’s software solutions before. Led by founder and CEO Tony Walls, the company offers software spanning content solutions, planning and building, and regulatory solutions.

    By Mitchell Lawler: I’ve been keeping tabs on Objective Corp for a while now. The long-serving software provider made it into my top 10 ASX shares to buy last year. However, I was a little apprehensive about its $14 price tag back then. 

    Since then, shares in Objective Corp have slipped 6.6% while net profit after tax (NPAT) has increased 23.8%. As a result, the company’s earnings multiple has compressed from 58 times to 44 – almost a 25% discount. 

    Even though a 44.77 times price-to-earnings (P/E) ratio may not seem cheap, I believe it’s enticing enough to take an initial position in what could be a longstanding compounder. 

    Walls appears firmly committed, holding roughly 66% of the company’s shares and not having sold a single one in more than 20 years. 

    Motley Fool contributor Mitchell Lawler does not own shares of Objective Corporation Ltd.

    Corporate Travel Management Ltd

    What it does: Corporate Travel Management provides travel services to business clients, helping them manage expenses and optimise staff travel. It has a presence in Australia, New Zealand, North America, Asia, and Europe.

    By Tristan Harrison: I recently invested in this S&P/ASX 200 Index (ASX: XJO) stock, and it’s my pick this month due to its planned growth over the next five years.

    Corporate Travel is a global leader in the travel industry and expects to continue growing market share over the coming years. In its FY24 half-year result, the company said it aimed to win new clients and bring in an additional $1 billion of new total transaction value (TTV) each year. Its target by FY29 is to attract $1.6 billion of new client work per year.

    The ASX 200 stock aims to grow revenue by at least 10% per annum over the next five years, largely thanks to the new client wins. On the expense side, “key projects” are expected to deliver cost savings, so it’s targeting cost growth of just 5% per annum.

    With revenue expected to increase faster than costs, the company is predicting earnings before interest, tax, depreciation and amortisation (EBITDA) to climb at a compound annual growth rate (CAGR) of 15% over the next five years. This, in my opinion, indicates exciting potential.

    Corporate Travel is also actively pursuing acquisitions, recently noting that some of its competitors are “highly leveraged with debt” hungover from battling to survive the Covid years. Any deals should “add further growth, shareholder value and economies of scale” and will be in addition to the existing five-year growth plan.

    Motley Fool contributor Tristan Harrison owns shares of Corporate Travel Management Ltd.

    Webjet Ltd

    What it does: Webjet’s business-to-consumer (B2C) business provides travel bookings to locations across the world via its online travel agent, OTA. The company’s business-to-business (B2B) operation, WebBeds, acts as an intermediary between hotels and retail travel service providers.

    By Bernd Struben: The Webjet share price has surged 34.40% over the past six months. Yet shares are still trading 18% below the pre-Covid levels of January 2020.

    Judging by the company’s full-year results for the 12 months to 31 March this year, I believe those pre-pandemic prices could be matched, or even exceeded, in the months ahead. And that could also usher in the return of the Webjet dividend, which has been suspended since early 2020.

    Highlights of Webjet’s latest results included a 29% year-on-year increase in revenue to $472 million. And underlying net profit after tax (NPAT) surged 83% to $128 million.

    The company is also considering a demerger and separately listing its two travel divisions, WebBeds and Webjet B2C. The board noted the potential of “significant value enhancement” through a separation of its two leading business brands.

    As for the balance sheet, Webjet had $630 million in cash as at 31 March.

    Motley Fool contributor Bernd Struben does not own shares of Webjet Ltd.

    Qantas Airways Limited

    What it does: Qantas is Australia’s flag carrier airline and the company behind two complementary airline brands — Qantas and Jetstar. It also operates the Qantas Freight business and the lucrative Qantas Frequent Flyer program.

    By James Mickleboro: I think Qantas shares could be a great option for investors in June. This is because I believe the airline operator’s shares are still severely undervalued at current levels despite a recent rebound. The Qantas share price was trading at $6.15 at the close on Friday.

    For example, Qantas’ current market capitalisation is still slightly below pre-COVID levels. Yet the company is forecast to deliver earnings that are 50% higher than what it achieved prior to the pandemic. And this isn’t expected to be a one-off. Goldman Sachs believes Qantas’ earnings are structurally stronger now, thanks to its cost reduction program.

    But the good news doesn’t stop there. The broker believes the Qantas dividend will return at long last in FY 2025. Goldman is forecasting a 30 cents per share dividend, which equates to a 5% yield.

    The broker currently has a buy rating and $8.05 price target on Qantas shares.

    Motley Fool contributor James Mickleboro does not own shares of Qantas Airways Limited.

    Vanguard Australian Shares Index ETF

    What it does: The Vanguard Australian Shares ETF is an exchange-traded fund (ETF) that has the distinction of also being the most popular index fund on the ASX. It offers exposure to the largest 300 ASX shares on our stock market, weighted by market capitalisation. 

    By Sebastian Bowen: May saw the ASX plagued by volatility and uncertainty, resulting in a bumpy ride for investors. With geopolitical concerns, economic turmoil in the form of higher inflation, and the possibility of more interest rate hikes set to continue in June, I think this index fund is a sensible choice right now.

    VAS is the kind of investment that I like to opt for when it’s difficult to find an ASX share at the right price. It has always historically offered a modest but consistent return, as well as decent dividend income (and franking credit) potential. While we should never bank on past returns, I have great confidence that an investment in this ETF today won’t be regretted down the road.

    Considering the diversification built into VAS units as well (thanks to its 300 underlying holdings), this is the investment I’m most likely to top up on this month.

    Motley Fool contributor Sebastian Bowen owns units of the Vanguard Australian Shares Index ETF.

    The post Top ASX shares to buy in June 2024 appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Corporate Travel Management Limited right now?

    Before you buy Corporate Travel Management Limited shares, consider this:

    Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Corporate Travel Management Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    And right now, Scott thinks there are 5 stocks that may be better buys…

    See The 5 Stocks
    *Returns as of 5 May 2024

    More reading

    The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Corporate Travel Management, Goldman Sachs Group, and Objective. The Motley Fool Australia has positions in and has recommended Corporate Travel Management. The Motley Fool Australia has recommended Objective. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.