The S&P/ASX 200 Index (ASX: XJO) is having a very tough session on Wednesday. In response to the release of a hotter than expected inflation reading, the benchmark index is down 1.35% to 7,661.5 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Cettire Ltd (ASX: CTT)

The Cettire share price is down 5% to $2.31. Short sellers have been targeting this online luxury products retailer amid concerns over the authenticity of products on its website. However, Cettire has refuted these allegations and stated: “Since commercial launch in 2017, Cettire has handled more than 2 million individual orders. There is not a single confirmed case of a non-genuine item being sold on Cettire’s platform.”

Neuren Pharmaceuticals Ltd (ASX: NEU)

The Neuren Pharmaceuticals share price is down 10% to $20.73. This may have been driven by profit taking from some investors after a very strong gain. For example, prior to today’s decline, the pharmaceutical company’s shares were up 20% since the start of the month. Investors have been buying Neuren’s shares following the release of top-line results from its phase 2 clinical trial of NNZ-2591 in children with Pitt Hopkins syndrome (PTHS). That study delivered a “statistically significant improvement” across all four efficacy measures.

Peter Warren Automotive Holdings Ltd (ASX: PWR)

The Peter Warren Automotive Holdings share price is down a further 3.5% to $1.80. Investors have been selling the automotive retailer’s shares this week after it released disappointing earnings guidance. Peter Warren advised that while revenue has continued to grow, it now expects its underlying profit before tax for FY 2024 to be in the range of $52 million to $57 million. Management notes that this is lower than market expectations and has been driven by a significant increase in vehicle supply, which has led to greater competition between dealerships and lower gross profit margins on new vehicles. In response, Citi downgraded its shares to a sell rating with a reduced price target of $1.70.

Qantas Airways Limited (ASX: QAN)

The Qantas share price is down 3% to $5.88. This may have been driven by concerns that higher than expected inflation will either lead to further rate increases or interest rates staying higher for longer. Both could have meaningful implications for consumer spending on travel. According to the Australian Bureau of Statistics, the headline CPI indicator rose 3.6% in the 12 months to April. This was notably higher than the market was expecting.

The post Why Cettire, Neuren, Peter Warren, and Qantas shares are falling today appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Cettire. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Cleo Diagnostics Ltd (ASX: COV) shares are catching the eye of investors on Wednesday.

The Australian share market may be a sea of red following a hotter than expected inflation reading, but that has not stopped this ASX micro-cap stock from rocketing.

At the time of writing, the ovarian cancer diagnostics company’s shares are up an impressive 50% to 25.5 cents.

Why is this ASX micro-cap stock rocketing?

Investors have been fighting to get hold of Cleo Diagnostics’ shares today after it announced the publication of a milestone article on its blood test for the accurate and early detection of ovarian cancer.

According to the release, the article was published in peer reviewed medical journal, Cancers.

The benchmarking study compared the ASX micro-cap stock’s ovarian cancer blood test against the current standard clinical workflows that use CA125 and ultrasound to predict malignancy.

The great news for the company was that outcomes of the study clearly demonstrate that its ovarian cancer blood test is far superior to all routine clinical tools used by doctors to predict the diagnosis of an adnexal mass prior to surgery.

Importantly, Cleo Diagnostics’ test correctly detected 90% of early-stage cancers compared to only 50% using current standard of care workflows of CA125 and ultrasound.

Management believes that this clinical evidence supports its commercial pathway. It notes that it is now focusing on a number of initiatives in parallel that will deliver appropriate routes to adoption of its tests following regulatory approval and market launch.

If everything goes to plan, this ovarian cancer blood test could be a real cash cow for the ASX micro-cap stock. It highlights that despite its poor performance, CA125 is exclusively recommended in medical guidelines, and represents a $1 billion+ market with an estimated compound annual growth rate of ~4%.

Commenting on the study, Cleo Diagnostics Chief Executive, Richard Allman, said:

Our peer-reviewed publication strategy is delivering gold-standard clinical evidence which is vitally important as we begin to engage with potential early adopters of our technology. Having demonstrated now that the CLEO ovarian cancer blood test is far superior to CA125 and ultrasound in our initial pre-surgical triage market, we open up new dialogue with physicians to consider the potential material benefits that CLEO brings for their patients. More broadly, these encouraging results on early-stage cancer detection provide impetus for us to progress the development of CLEO’s screening test for ovarian cancer.

The post ASX micro-cap stock rockets 50% on ovarian cancer blood test news appeared first on The Motley Fool Australia.

More reading

• Why Cettire, Neuren, Peter Warren, and Qantas shares are falling today
• Up 20% in 2024, why this ASX 200 healthcare stock just hit a new 52-week high
• Record highs! Is it too late to buy the Nasdaq 100 (NDQ) ETF on the ASX?
• Why did the ASX 200 just plunge on the latest Aussie inflation print?
• Why the CBA share price is predicted to ‘fall substantially’: broker

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.

It’s been a horrid day for the S&P/ASX 200 Index (ASX: XJO) and most ASX shares so far this Wednesday. At the time of writing, the ASX 200 has shed a hefty 1.25%, pulling it back under 7,700 points. But let’s talk about one ASX 200 healthcare stock that is defying the markets today to decisively push higher.

That ASX 200 healthcare stock is none other than Fisher & Paykel Healthcare Corporation Ltd (ASX: FPH). Fisher & Paykel shares closed at $25.45 each yesterday evening. But this morning, those same shares opened at $26.55 and are currently sitting at $26.58, up a rosy 4.44% for the day thus far.

It was even better for Fisher & Paykel earlier this morning too. Just before midday, this ASX 200 healthcare stock hit a new 52-week high of $27.50 a share.

Today’s gains (and new 52-week high) are just the latest push higher from Fisher & Paykel though. At current pricing, this healthcare stock is now up a happy 20.5% over 2024 to date, as well as up 16.7% over the past 12 months.

So what on earth is behind this run, and new 52-week high, for Fisher & Paykel Healthcare today?

Why has this ASX 200 healthcare stock just hit a new 52-week high?

Well, the latter first. Today’s fresh 52-week high appears to be a direct result of the earnings report that Fisher & Paykel posted this morning before market open.

This report revealed that Fisher & Paykel enjoyed revenues of NZ$1.74 billion over the full year ending 31 March 2024, a 10% rise over the previous financial year.

That helped the ASX 200 healthcare stock deliver an underlying net profit after tax (NPAT) of NZ$264.4 million, up 6% over last year. This rise was assisted by a boost in Fisher & Paykel’s gross margins, which rose 2.16% up to 61.1%.

These results allowed Fisher & Paykel to reveal a 10 July dividend worth 23.5 cents per share. This brings the ASX 200 healthcare stock’s full-year dividend to 41.5 cents per share, a 2% rise over FY2023.

Here’s some of what Fisher & Paykel CEO Lewis Gradon had to say about these results:

After several years of changing demand patterns, we are pleased to have returned to a trajectory of growth. All the right foundations are in place for future success – we have an impressive portfolio of products, strong relationships with our customers and the right infrastructure to meet our future needs…

With a fifty-year track record, we are building on strong foundations. Looking ahead, we are
determined to keep bringing to market new solutions that deliver better outcomes for patients and
sustainable, profitable growth for our shareholders.

Fisher & Paykel also discussed the company’s guidance for the 2025 financial year. The healthcare company expects to bring in between NZ$1.9 billion and NZ$2 billion in revenues, with a net profit after tax in the range of NZ$310 million and NZ$360 million.

So Fisher & Paykel’s strong 2024 runup is continuing today in light of these results. But investors have been bidding up this ASX 200 healthcare stock for a while now. The company took off after a guidance update for today’s results back in March.

As we covered at the time, this guidance told investors to expect revenues for the 12 months to 31 March of approximately NZ$1.7 billion, and a net profit after tax of between NZ$250 million and NZ$260 million. So Fisher & Paykel has obviously delivered on this guidance today.

It’s clear investors are appreciating these numbers, judging from the reaction of the Fisher & Paykel stock price. Let’s see if today’s new 52-week high is the last one for this ASX 200 healthcare stock in 2024.

The post Up 20% in 2024, why this ASX 200 healthcare stock just hit a new 52-week high appeared first on The Motley Fool Australia.

More reading

• Why Cettire, Neuren, Peter Warren, and Qantas shares are falling today
• ASX micro-cap stock rockets 50% on ovarian cancer blood test news
• Record highs! Is it too late to buy the Nasdaq 100 (NDQ) ETF on the ASX?
• Why did the ASX 200 just plunge on the latest Aussie inflation print?
• Why the CBA share price is predicted to ‘fall substantially’: broker

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

While we were asleep last night, a momentous milestone occurred at the other end of the planet.

Wall Street’s tech cathedral, the Nasdaq Composite Index (NASDAQ: .IXIC), firmly planted its flag beyond the 17,000-point barrier. The record is nudging locally traded Betashares Nasdaq 100 ETF (ASX: NDQ) higher today.

Following the overnight rally, the Nasdaq is up 15.3% year-to-date in a year dominated by artificial intelligence (AI). The rapid return from the more tech-focused corner of the stock market is a world away from the measly 1.1% increase cobbled together by the S&P/ASX 200 Index (ASX: XJO).

Still, no one wants to succumb to FOMO (fear of missing out). So, does it make sense to buy the NDQ exchange-traded fund on the ASX when the Nasdaq is at its highest point in history?

Record-breaking heights on the Nasdaq

Firstly, it’s important to understand what is fuelling the historic high.

The Nasdaq Composite is a market capitalisation-weighted index. The bigger the company, the more influential it is on the entire index. Roughly half of the Nasdaq is weighted towards the 10 largest companies in its arsenal.

As the table below shows, these 10 technology heavyweights — bar Apple and Tesla — have had a tremendous run this year.

Company	Year-to-date return
Microsoft Corp (NASDAQ: MSFT)	16.0%
Apple Inc (NASDAQ: AAPL)	2.3%
Nvidia Corp (NASDAQ: NVDA)	136.8%
Amazon.com Inc (ASX: AMZN)	21.5%
Broadcom Inc (NASDAQ: AVGO)	30.1%
Meta Platforms Inc (NASDAQ: META)	38.6%
Alphabet Inc (NASDAQ: GOOG)	27.6%
Costco Wholesale Corporation (NASDAQ: COST)	25.0%
Tesla Inc (NASDAQ: TSLA)	-28.9%
Netflix Inc (NASDAQ: NFLX)	38.5%

However, it would be a glaring omission to not acknowledge the extent of Nvidia’s hand in the Nasdaq record-breaking. No other company in the top 10 has slam-dunked as hard as this computer chip in the past month.

Shares in Nvidia are up 30% in the last 30 days alone. Last night, the AI-powering powerhouse ratcheted its share price up 7.1% to a record US$1,140.59 at the close — playing a pivotal role in the Nasdaq achieving its own record.

Too late to buy NDQ on the ASX?

The Nasdaq 100 ETF on the ASX provides a simple option for local investors to tap into the tech titans abroad.

At midday, the ETF trades at $42.93 per unit, less than 1% from its all-time high.

Let’s get the obvious out of the way. The ‘record high’ shouldn’t be too important in deciding whether to invest in a company, index, or ETF. A company isn’t conscious of its price. What is much more vital is the future earnings potential.

No one can predict the future. We can merely make informed best guesses at what’s to come. Then, it becomes a question of… do you think the companies inside the ASX-listed NDQ ETF will continue to deliver market-beating earnings growth over the years ahead?

If yes — then it’s not too late, despite the Nasdaq’s record high.

The post Record highs! Is it too late to buy the Nasdaq 100 (NDQ) ETF on the ASX? appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler has positions in Apple, Meta Platforms, and Tesla and has the following options: long June 2025 $510 calls on Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Apple, BetaShares Nasdaq 100 ETF, Costco Wholesale, Meta Platforms, Microsoft, Netflix, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Alphabet, Apple, Meta Platforms, Microsoft, Netflix, and Nvidia. 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) was already struggling today before the latest Australian inflation data hit the wires.

At 11.30am AEST, the benchmark index was down just over 0.6%.

Then the Australian Bureau of Statistics (ABS) released the April consumer price index (CPI) data.

And the ASX 200 promptly dropped another 0.3% to be 0.94% lower at the time of writing.

Here’s why investors are favouring their sell buttons on the heels of the latest Australian inflation figures.

ASX 200 investors eyeing higher interest rates for longer

Most analysts, including the economics team at National Australia Bank Ltd (ASX: NAB), had forecast that April’s monthly CPI indicator would decline to 3.4% year on year from the 3.5% annual figure reported last month.

This would have indicated that the Reserve Bank of Australia’s series of interest rate hikes commenced in May 2022 was continuing to cool down fast-rising prices.

And it would have signalled that ASX 200 investors might yet expect several interest rate cuts from the RBA this year. The current cash rate stands at 4.35%. That’s the highest level since December 2011, and it’s up from the historic low of 0.10% in early May 2022.

But in its latest CPI report, which should have been titled ‘Don’t shoot the messenger’, the ABS threw cold water on hopes for multiple RBA interest rate cuts in 2024.

That’s because the headline CPI indicator rose 3.6% in the 12 months to April 2024, well above consensus estimates.

Commenting on the uptick that’s pressuring the ASX 200 today, Michelle Marquardt, ABS head of prices statistics, said:

Annual inflation increased to 3.6% this month, up from 3.5% in March. Inflation has been relatively stable over the past five months, although this is the second month in a row where annual inflation has had a small increase.

The biggest contributors to price increases in April were housing (up 4.9%), food and non-alcoholic beverages (up 3.8%), alcohol and tobacco (up 6.5%), and transport (up 4.2%).

Electricity prices would have topped this list if not for the introduction of the Energy Bill Relief Fund rebates in July 2023, which could artificially dampen the real level of inflation.

Electricity prices rose 4.2% in the 12 months to April. “Excluding the rebates, electricity prices would have risen 13.9% in the 12 months to April 2024,” Marquardt said.

Underlying inflation, which takes out volatile items like fuel, holiday travel, and fruit and veggies, remained steady on an annual basis.

“When excluding these volatile items from the monthly CPI indicator, the annual rise to April was steady at 4.1%,” Marquardt said.

She added that “Annual inflation excluding volatile items remains higher than for the monthly CPI indicator.”

At 4.1%, that’s more than twice the lower level of the RBA’s 2% to 3% inflation target range.

With inflation again proving sticky, it’s looking more likely that ASX 200 investors will have to wait until 2025 to see the first interest rate relief.

The post Why did the ASX 200 just plunge on the latest Aussie inflation print? appeared first on The Motley Fool Australia.

More reading

• Record highs! Is it too late to buy the Nasdaq 100 (NDQ) ETF on the ASX?
• Why the CBA share price is predicted to ‘fall substantially’: broker
• Buy ‘one of the highest quality’ growth shares on the ASX 200
• 1 ASX growth stock that turned $10,000 into $21,000 in less than 2 years
• Should you buy BHP shares now before tonight’s Anglo American takeover reveal?

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.

After two consecutive days of gains, the Commonwealth Bank of Australia (ASX: CBA) share price is falling today.

Shares in the S&P/ASX 200 Index (ASX: XJO) bank stock closed up 0.2% yesterday trading for $120.31. In late morning trade on Wednesday, shares are changing hands for $118.80 apiece, down 1.3%.

For some context the ASX 200 is down 0.9% at this same time.

Still, as you can see on the chart above, the CBA share price has been a very strong performer over the past 12 months, hitting a new all-time closing high of $122.26 earlier this month, on 16 May.

Despite slipping from that high, the ASX 200 bank stock remains up 19.3% since this time last year, far outpacing the 6.6% gains posted by the benchmark index over this same period.

And that doesn’t include the two fully franked dividends CBA delivered over the year, totalling $4.55 a share. If we add those back in, then the accumulated value of CommBank shares is up 23.9% in 12 months, with potential tax benefits from those franking credits.

But with Australia’s biggest bank now trading at a price-to-earnings (P/E) ratio of 20.9 times, well ahead of its peers, a growing number of analysts are saying the CBA share price may have flown too close to the sun.

And a substantial correction could be looming.

Is the CBA share price primed for a fall?

Novus Capital’s John Edwards predicts that after the big run higher for the CBA share price, ASX 200 investors would do well to consider taking some profits.

According to Edwards (courtesy of The Bull):

Operating income fell 1% in the third quarter of fiscal year 2024. Net interest income was 1% lower and net interest margins slightly fell. We expect margin pressure on earnings to impact the full year results. CBA shares have risen from $111.86 on April 19 to trade at $120.815 on May 23.

We expect the share price to fall substantially following full year results expected in August. In the meantime, investors may want to cash in some gains.

The CBA share price closed down 2.2% on 9 May, the day the bank released its third-quarter results.

But don’t rush to sell your CommBank stock just yet.

Despite the big run higher for the CBA share price, Tony Paterno, senior investment adviser at Ord Minnett, has a different prediction and ‘hold’ rating on the stock.

“The bank reported an unaudited 2024 third quarter cash net profit after tax of $2.4 billion, down 3% on the quarterly average in the first half. The decline is tracking marginally better than we expected,” Paterno said (courtesy of The Bull).

Paterno added:

Operating expenses were well contained, up by 2%. In the next five years, we assume pricing on loans and customer deposits will enable a modest margin improvement and a return to loan growth in line with the market.

Long-term investors, take note.

The post Why the CBA share price is predicted to ‘fall substantially’: broker appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The S&P/ASX 200 Index (ASX: XJO) growth share Aristocrat Leisure Limited (ASX: ALL) has achieved enormous success in the past decade. One expert believes the company can continue its winning streak.

This business is best known for designing, manufacturing, and selling poker machines used in casinos, pubs, and other venues in Australia, the US, and various other countries. Aristocrat Leisure also has a growing digital gaming presence.

Past performance is not a reliable indicator of future performance, but over the last 10 years, the Aristocrat Leisure share price has risen around 750%, as shown in the chart below.

Christopher Watt from Bell Potter Securities thinks the ASX 200 growth share is still a buy.

Market-beating performance

Writing on The Bull, Watt noted the company’s recent FY24 first-half result delivered “strong earnings that exceeded consensus estimates”.

That result showed revenue rose by 6.1% to $3.27 billion and reported net profit after tax (NPAT) grew by 8.9% to $711.3 million.

Normalised earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 17.6% to $1.2 billion, and normalised earnings per share (EPS) increased by 19.5% to $1.12. The profit growth enabled the board of directors to increase the interim dividend per share by 20% to 36 cents.

The ASX 200 growth share explained revenue increased due to strong performance in its North American gaming operations, reflecting the expansion of its installed base and “leading game portfolio performance”. Aristocrat Leisure also attributed the revenue growth to “strong” sales in most of its ‘rest of the world’ markets and encouraging growth for its digital operations.

Bell Potter’s Watt attributed the strong profit performance to corporate costs being lower than expected.

Watt called Aristocrat Leisure a buy. He said:

The stock remains one of the highest quality growth names on the ASX.

Outlook for the ASX 200 growth share

The poker machine business expects to deliver underlying net profit (NPATA) growth in the full-year result. Three factors contribute to that expectation.

First, it’s expecting to achieve “continued strong market share, revenue and profit growth” from its electronic gaming machines division.

Second, it’s working with “disciplined execution” within the Pixel United segment “with a focus on market share and investment efficiency to maintain momentum”.

Finally, it’s working on accelerating the performance of the Aristocrat Interactive division, with “further scaling of content to support broader market access in North America and Europe.”

Aristocrat Leisure share price snapshot

Since the start of 2024, it has risen around 8%, compared to less than 1% for the ASX 200.

The post Buy ‘one of the highest quality’ growth shares on the ASX 200 appeared first on The Motley Fool Australia.

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

If you are looking for market-beating growth stocks, the ASX is a great starting point. Here, investors can buy small pieces in some of Australia’s most promising, innovative, and generally cool businesses.

NextDC Ltd (ASX: NXT) fits the bill nicely, in my opinion. Shares in the technology player have skyrocketed from $8.15 at the close on 31 October 2022 to $17.63 before market open today. That means a $10,000 investment in this ASX growth stock over this time would now be worth approximately $21,600.

Let’s explore what’s driving this remarkable performance.

What’s driving NextDC’s impressive growth?

NextDC offers colocation services through its top-tier data centres in Australia and the Asia-Pacific region. These are known as “Tier III and Tier IV” centres.

The surge in demand for cloud computing and artificial intelligence (AI) has boosted the need for data centre capacity, propelling NextDC’s growth.

According to a January report from investment bank UBS, its analysts expect AI revenues to grow “15 times, from USD$28 billion in 2022 to USD$420 billion in 2027”.

This was a 72% compounding annual growth rate (CAGR), “making AI one of the fastest-growing and largest segments within global tech”, UBS said.

The recent results of tech firm NVIDIA Corporation (NASDAQ: NVDA) are a testament to this.

Why is NextDC a top ASX growth stock?

The AI boom is expected to drive even more demand for data centres, positioning NextDC for future growth. And I have two more reasons why this demand makes NextDC a standout ASX growth stock.

One, the big end of town, is getting involved. Private equity giants Blackstone Inc, KKR & Co, and Brookfield Infrastructure Partners are betting large on the AI trend, according to a report in The Australian Financial Review.

Blackstone recently completed a US$10 billion acquisition in the industry. The other two firms conducted deals in US data centres worth $US43 billion between 2021 and 2023, more than five times the prior three years, according to the AFR.

Secondly, brokers are bullish. Morgan Stanley recently rated the stock as overweight with a $20.00 price target, suggesting 11.5% upside potential as I write.

Fellow broker Morgans also has a $19.00 share valuation on the company. It notes that “structural demand for cloud and colocation remains incredibly strong”, and expects “significant new customer wins over the next six-to-twelve months”.

Should you invest in this ASX growth stock?

NextDC runs data centres, which are in huge demand, and is well-positioned to meet this rising demand.

The company’s expansion efforts could also make it a compelling ASX growth stock. In the 12 months to December 2023, the company produced $209.1 million in revenue, up 31% year-on-year. It also grew net tangible assets per share from $3.60/share to $4.25/share.

NextDC has delivered outstanding returns, turning a $10,000 investment into $21,000 in less than two years.

The company’s strong market position and rising demand for data centres highlight its potential for continued growth. But remember — past performance is no guarantee of future results.

The post 1 ASX growth stock that turned $10,000 into $21,000 in less than 2 years appeared first on The Motley Fool Australia.

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• Nvidia shares are now worth more than 17 times the market cap of BHP. What’s next?
• 3 high-quality ASX shares tipped to generate strong returns
• Here’s how the ASX 200 market sectors stacked up last week

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.

BHP Group Ltd (ASX: BHP) shares are back in the green after opening lower this morning.

Shares in the S&P/ASX 200 Index (ASX: XJO) mining giant closed flat yesterday trading for $45.08. In morning trade on Wednesday, shares are swapping hands for $45.13 apiece, up 0.1%.

For some context, the ASX 200 is down 0.8% at this same time.

BHP shares will be catching some headwinds from the 1.2% decline in iron ore prices overnight. The steel making metal dipped to US$117.90 per tonne amid resurgent concerns over Chinese demand.

But foremost on investors’ minds today is tonight’s deadline for the ASX 200 miner’s $74 billion takeover proposal of Anglo American (LSE: AAL).

Following a one-week extension on the heels of the miner’s third offer, BHP now has until 5pm London time today (overnight Aussie time) to commit to a deal or potentially request another extension.

Here’s what’s happening with BHP shares.

Will the third bid be a winner?

Investor focus homed in on BHP shares on 26 April when the miner made its first takeover bid for Anglo American.

BHP is primarily interested in Anglo’s high-quality copper assets and, likely, its Queensland-based coal mines as well.

Copper prices hit record highs last week, having surged 29% over the past 12 months. The red metal is currently trading for US$10,502 per tonne, up from US$8,123 a year ago.

BHP is less interested in Anglo American’s diamond businesses. And the ASX 200 miner has also flagged its intentions to divest Anglo’s South African iron ore and platinum businesses.

Those divestments are complicating matters for Anglo’s board. Anglo’s management says the risk for its own shareholders is too high under the existing structure. Anglo’s investors will be left holding shares in the divested companies, which are forecast to struggle if left to their own devices.

Although, Anglo American has also indicated its own significant restructuring plans. Those include multiple divestments, its Australian coal mines among them.

The Anglo American board also said BHP’s initial offer undervalued the company’s long-term potential, particularly with the strong demand growth forecast for copper.

This saw Anglo’s board also reject BHP’s second offer, made on 14 May and valued at some $64 billion.

The third, and likely final, bid came on 23 May. This current bid values Anglo American at a whopping $74 plus billion. BHP shares closed down 2.9% on the day the bid was revealed.

However, the third bid did earn BHP a one-week extension to engage in discussions with Anglo American, and BHP CEO Mike Henry has flown to London for face-to-face meetings.

Should I buy BHP shares now?

Most likely, we’ll know at market open whether or not the $74 billion BHP deal has gone through or been permanently tabled. And BHP shares could make some big moves based on the outcome.

Unless, of course, the negotiations are extended.

That would require the green light from Anglo American. But according to anonymous sources cited by Bloomberg, any extension on negotiations is far from certain unless the two sides are already nearing a deal.

So, should I buy BHP shares now before the acquisition outcome is announced?

Well, Novus Capital’s John Edwards has the ASX 200 miner as a ‘hold’ for now (courtesy of The Bull).

“The market is concerned BHP may be offering too much for Anglo American,” Edwards said. “On the positive side, Anglo American has some of the best copper mines in the world.”

Indeed, those are the two big concerns.

A successful $74 billion deal could see the ASX 200 miner come under short-term pressure.

However, with the global charge towards electrification showing no signs of slowing down, copper demand growth is widely forecast to see the red metal continue to trade at new all-time highs over the months and potentially years ahead. (Though there will certainly be some pullbacks along the way.)

So I think investors with a long-term horizon would do well to buy BHP shares ahead of the announcement, which could see BHP become the largest copper producer on Earth.

The post Should you buy BHP shares now before tonight’s Anglo American takeover reveal? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.