Earnings season is traditionally in February and August. However, not all ASX 200 stocks operate with the standard financial calendar.

As a result, this month there have been a number of result releases from popular companies.

The team at Wilsons has been running the rule over these updates and has given its verdict on them and their shares. Let’s see what the broker is saying about three stocks:

Aristocrat Leisure Limited (ASX: ALL)

Wilsons was impressed with this gaming technology company’s performance during the first half of FY 2024. It said:

Aristocrat’s (ALL) 1H24 result was an impressive, double-digit beat to consensus earnings expectations, which demonstrated the quality of the business underpinned by its ability to consistently gain market share.

And with management speaking positively about the ASX 200 stock’s outlook, Wilsons thinks that its shares could still be cheap. It adds:

ALL is still ‘cheap’ despite its recent rally with the company trading on a forward PE of ~18x. This multiple is attractive given ALL’s competitive strengths and the long runway for double-digit EPS growth, underpinned by continued share gains in land-based gaming and the accelerating performance of Aristocrat Interactive within the fast-growing real money gaming industry.

Webjet Ltd (ASX: WEB)

Another ASX 200 stock that impressed the broker this month was online travel agent Webjet.

While it was pleased with its performance in FY 2024, the thing that really caught its eye was its plan to demerge the WebBeds business. It said:

WEB reported FY24 full year EBITDA growth of +40% to $188m, which was towards the top-end of the company’s $180-190m guidance range and broadly in line with expectations. The major news however was WEB’s plans to demerge its B2B (WebBeds) and B2C segments (principally Webjet.com.au) into two separately ASX-listed companies in FY25.

Wilsons believes that the market is undervaluing the WebBeds business and appears to believe that the demerger will unlock this value. It explains:

To estimate the current ‘implied’ market valuation of WebBeds, we have conducted a sum-of-the-parts analysis of the combined WEB group. Our analysis assumes that Webjet OTA will trade on an FY25e EV/EBITDA multiple of ~8.6x – directly in line with the global peer average. Presuming this is accurate, WEB’s headline market multiple of ~13x implies WebBeds is valued at an implied FY25 EV/EBITDA multiple of ~15x – well below the average comp multiple of ~26x. This suggests that WebBeds is undervalued by the market in the current group structure. As such, we are confident that the proposed demerger, if successful, is likely to drive a re-rate of WebBeds valuation multiple (and thus WEB’s sum-of-the parts multiple), unlocking ‘hidden value’ for WEB shareholders.

Xero Ltd (ASX: XRO)

Finally, this cloud accounting platform provider is another ASX 200 stock that impressed this month with its results. It commented:

Xero’s (XRO) FY24 result was an impressive beat to consensus expectations, which has strengthened our conviction in our investment thesis. In the result, XRO showcased its ability to balance top line growth with profitability following recent cost outs. Notably, the company achieved its ‘rule of 40’ target several years earlier than expected by the street, with revenue growth of +22% and a free cash flow margin of 20%.

Based on this performance and its positive long term growth outlook, the broker feels that Xero’s shares are attractively priced. Particularly given its potential to outperform consensus estimates. It adds:

In summary, we expect continued double-digit subscriber growth, combined with price increases and a leaner cost base, to underpin significant long-term earnings growth that is not fully appreciated by the market in our view. Therefore, despite XRO’s high forward PE multiple of ~78x, the company still offers attractive value at current levels considering consensus EPS growth of ~34% p.a. (CAGR) to FY30 with potential for upgrades on top of this.

The post Wilsons gives its verdict on Webjet and these popular ASX 200 stocks appeared first on The Motley Fool Australia.

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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 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.

You don’t just have to buy houses to invest in real estate.

You can also do it by buying ASX real estate shares or real estate investment trusts (REITs).

The good news is that the Australian share market is home to a number of quality options that give investors access to all corners of the property market.

But which ASX real estate shares could be top options? Listed below are two that analysts rate among their best ideas. They are as follows:

Cedar Woods Properties Limited (ASX: CWP)

Morgans currently has Cedar Woods Properties on its best ideas list. It is a leading, national developer of residential communities and commercial developments.

The broker believes the ASX real estate share is well-positioned in the current environment due to its lower priced stock. It explains:

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

Morgans currently has an add rating and $5.60 price target on its shares. Based on its current share price of $4.36, this implies potential upside of 28% for investors from current levels.

Another positive is that the broker expects Cedar Woods Properties to provide investors with attractive dividend yields in the near term. It is forecasting dividends per share of 18 cents in FY 2024 and 20 cents in FY 2025. This equates to yields of 4.1% and 4.6%, respectively.

Healthco Healthcare and Wellness REIT (ASX: HCW)

Another ASX real estate share that could be a top option for investors is the Healthco Healthcare and Wellness REIT.

It is Australia’s largest diversified healthcare REIT with a portfolio including investments in hospitals, aged care, childcare, government, life sciences, and primary care and wellness property assets.

Bell Potter is very positive on the company’s long term outlook and feels its shares are too cheap at present. It said:

HCW has underperformed the REIT sector last 3 months following bond yield reversion and is attractively priced at 20% discount to NTA (but only REIT to record flat to positive valuation movement at 1H24) with double digit 3 year EPS CAGR given high relative sector debt hedging and ability to grow its $1bn development pipeline via attractive YoC spread to marginal cost of debt. Longer term, HCW has significant scope for growth with an estimated $218 billion addressable market where an ageing and growing population should underpin long-term sector demand.

Bell Potter has a buy rating and $1.50 price target on its shares. Based on its current share price of $1.14, this implies potential upside of 31% for investors. In addition, it is forecasting dividend yields of 7% in FY 2024 and 7.3% in FY 2025.

The post Best ASX real estate shares to buy right now appeared first on The Motley Fool Australia.

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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 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.

Nothing reassures an investor quite as much as an insider buying amid a sell-off, especially when the ASX 200 stock plunges 30% in less than six months. If they can see a reason to buy, maybe there’s still a point in sticking with it.

Shares in Eagers Automotive Ltd (ASX: APE) have hit a couple of speed bumps this year. At the end of Thursday’s trading, the automotive retailer traded at $10.13 per share — within sneezing distance of its recently set 52-week low of $9.87.

However, shareholders may find solace in a rich lister’s seemingly insatiable appetite for Eagers.

Billionaire not stopping ’til he gets enough

While others might be losing hope, Nick Politis — Eagers’ non-executive director and Sydney Roosters chair — is reaching deep into his pockets.

According to today’s ASX notice, Politis feathered his nest by buying another 100,000 shares in the ASX 200 company. The buy was filled through an on-market trade on Tuesday, giving the wealthy businessman a grand sum of 72,819,048 pieces of the Eagers Automotive pie.

However, this is not Politis’ first time pulling out the chequebook in May. As my colleague Sebastian Bowen noted last week, the board member made two earlier purchases this month. The first purchase occurred on 9 May, nabbing 50,000 shares. The second investment captured 200,000 shares on 22 May.

The non-executive director’s stake is now worth $734.74 million.

Politis is visibly undeterred by the disclosure of profit-squeezing factors in Eagers’ recent trading update.

Perhaps the rich-lister sees it as a symptom of the economy and not a problem with the company itself. After all, fellow ASX-listed Peter Warren Automotive Holdings Ltd (ASX: PWR) described similarly difficult conditions in a release six days later.

Is this ASX 200 stock a misplaced buy?

Politis, and no doubt other buyers of Eagers, are likely banking on better times beyond the short term. If they’re right, the current share price could look like a decent deal.

However, Eagers Automotive still trades at a forward premium to some of its peers. For example, Peter Warren Automotive, Autosports Group Ltd (ASX: ASG), and MotoCycle Holdings (ASX: MTO) all trade at a 20% to 38% forward discount relative to Eagers.

Maybe being the biggest demands a premium over its competitors.

Nevertheless, Politis appears to be in it for the long haul, holding a 27% stake.

The post Guess which ASX 200 billionaire is buying up big again appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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.

Investors with a high risk tolerance might want to consider adding the two ASX penny stocks in this article to a balanced portfolio.

That’s because although they are high risk investments, they have the potential to offer high rewards.

Let’s take a closer look at them and see why analysts are tipping them as buys right now:

Pointsbet Holdings Ltd (ASX: PBH)

This sports betting company has been given the thumbs up by analysts at Bell Potter.

It thinks Pointsbet could be an ASX penny stock to buy based on its current valuation. The broker feels that the market is undervaluing its operations and sees it as a potential takeover target for a bigger player. It explains:

We determine our price target for PointsBet through a sum-of-the-parts (SOTP) and there is no change in the $0.63 valuation. The components of this valuation are $150m for the Australian business ($0.46/share), $25m for the Canadian business ($0.08/share) and $30m in corporate cash ($0.09/share). We note we ascribe no value for the Banach technology which PointsBet can continue to use for in-play betting in Canada and, to a lesser extent, Australia. We also believe PointsBet is a potential takeover target given its market position (fifth largest in Australia), simplified structure (Australia and Canada), proprietary technology and good Balance Sheet.

Bell Potter has a buy rating and 63 cents price target on its shares. Based on its current share price of 50.5 cents, this implies potential upside of 25% for investors over the next 12 months.

PYC Therapeutics Ltd (ASX: PYC)

Another ASX penny stock to look at according to Bell Potter is PYC Therapeutics. It is clinical-stage biotechnology company developing multiple drug candidates for rare inherited diseases.

The broker highlights that PYC recently reported highly encouraging first clinical data for its lead drug candidate, VP-001, in patients with a rare form of blinding eye disease. It feels that the positive readout provides significant validation for the individual asset and broader PYC platform. It also feels that successful readouts in other phase 1/2 trials would provide considerable de-risking.

In light of this, this month Bell Potter initiated coverage on the ASX penny stock with a speculative buy rating and 17 cents price target. This implies potential upside of 70% for investors from current levels. The broker commented:

We initiate coverage of PYC with a speculative BUY recommendation and $0.17 valuation. Pro-forma cash balance was ~$84m as at 31 March 2024, providing runway into 2H CY25 to achieve the above-mentioned Phase 1/2 clinical trial readouts. PYC have multiple shots on goal with three highly promising drug candidates for rare diseases. We also see value in the company’s internal platform and potential to continually generate differentiated RNA therapeutics for inherited diseases.

The post 2 ASX penny stocks to consider buying while their prices are this cheap appeared first on The Motley Fool Australia.

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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 positions in and has recommended PointsBet. 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.