If you are on the lookout for the dream combination of growth and attractive dividend yields, then you may want to check out the two ASX All Ords shares listed below.

These shares have been tipped to grow their earnings and dividends strongly in the coming years. And the even better news is that they could be cheap according to analysts. Let’s see what they are saying about them:

Treasury Wine Estates Ltd (ASX: TWE)

Morgans thinks that this wine giant’s shares could be undervalued at present. The broker has an add rating and $14.03 price target on the ASX All Ords share. This implies potential upside of almost 22% for investors over the next 12 months.

It is feeling very positive about its acquisition in the United States. It said:

It may take some time for the market to digest TWE’s acquisition of Paso Robles luxury wine business, DAOU Vineyards (DAOU) for US$900m (A$1.4bn) given it required a large capital raising. The acquisition is in line with TWE’s premiumisation and growth strategy and will strengthen a key gap in Treasury Americas (TA) portfolio. Importantly, DAOU has generated solid earnings growth and is a high margin business. It consequently allowed TWE to upgrade its margins targets. While not without risk given the size of this transaction, if TWE delivers on its investment case, there is material upside to our valuation.

As for dividends, the broker expects fully franked dividends of 36.4 cents in FY 2024 and then 44.8 cents in FY 2025. This will mean dividend yields of 3.15% and 3.9%, respectively.

Woolworths Group Ltd (ASX: WOW)

Goldman Sachs thinks that this ASX All Ords share could be cheap at current levels.

The broker has a buy rating and $39.40 price target on the supermarket giant’s shares. This suggests that they could rise 24% from current levels.

Goldman highlights that Woolworths’ shares are trading on lower than normal multiples despite having a positive outlook. It said:

WOW is the largest supermarket chain in Australia with an additional presence in NZ, as well as selling general merchandise retail via Big W. We are Buy rated on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers, and hence has strong ability to drive market share gains via its omni-channel advantage, as well as its ability to pass through any cost inflation to protect its margins, beyond market expectations. The stock is trading below its historical average (since 2018), and we see this as a value entry level for a high-quality and defensive stock.

In respect to dividends, the broker has pencilled in fully franked dividends of $1.08 per share in FY 2024 and then $1.14 per share in FY 2025. This represents yields of 3.4% and 3.6%, respectively.

The post 2 cheap ASX All Ords shares to buy for growth and dividends appeared first on The Motley Fool Australia.

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• Why this could be the best ASX 200 consumer staples stock to buy in May
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• 4 founder-led ASX 300 shares that have helped this fund outperform

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The ASX iron ore share sector may be facing a difficult FY25 with the latest prediction from leading broker Citi.

As price-takers, the commodity businesses of Fortescue Ltd (ASX: FMG), Rio Tinto Ltd (ASX: RIO) and BHP Group Ltd (ASX: BHP) are highly dependent on the iron ore price for the level of profitability they achieve.

Mining costs don’t typically change much month to month, so a higher commodity price means that extra revenue for its production largely translates into additional net profit as well. But, the opposite can be the case when the commodity price goes down.

So, where is the iron ore price headed? Let’s look at what Citi thinks.

Negative view on the iron ore price

According to the reporting by the Australian Financial Review, Citi’s analysts have reduced their three-month price target for the iron ore price from US$120 per tonne to US$105 per tonne because of the weakening credit market in China (which is a key buyer of Australian iron ore).

Trading Economics reports that the iron ore price is US$116 per tonne at the moment.

Citi said:

We see the weaker credit demand combined with protracted property sector weakness to remain a major overhang on Chinese steel and iron ore consumption.

Weak consumer confidence and profound structural changes in the property sector has led to insufficient credit demand.

We see downside risks for iron ore heading into summer and recommend investors to fade the iron ore rally.

Silver lining

However, not everyone is so pessimistic about the iron ore price, which could be helpful for the ASX iron ore share. Morgan Stanley thinks iron could reach US$125 per tonne by the end of 2024. The broker’s Amy Gower thinks investors should keep in mind that Chinese steel is being utilised in a number of emerging markets, not just in China. Gower said:

Chinese steel production has been trending sideways for much of the last three years, yet iron ore has continued to trade around $US120 per tonne – well above where consensus estimated it would be.

We see things differently…China’s falling consumption of iron ore for its own steel use since 2022 is being offset by growing demand in India, other [parts of] Asia, and the Middle East.

India, South-East Asia, Africa and the Middle East, are all expanding. Even if China’s exports did fall, steel production elsewhere would have to fill the gap, which diverts iron ore supply away from China.

Those three regions have reportedly increased their steel imports by up to 25% since last year.

Coincidentally, Trading Economics said recent data showed that Chinese steel export volumes surged by nearly 30% for the second straight month in April, underpinning demand for iron ore input.

It will be fascinating to see what happens for ASX iron ore shares.

The post What’s the outlook for ASX iron ore shares after the federal budget? appeared first on The Motley Fool Australia.

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• How Fortescue shares could gain from the Federal budget
• How much passive income would I make from 300 BHP shares?
• Which ASX shares could be set to benefit from the federal budget?
• Why BHP, Boss Energy, Domino’s, and Renascor shares are racing higher
• What the federal budget means for interest rates and ASX shares

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has positions in Fortescue. 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.

Coles Group Ltd (ASX: COL) shares are having a good session on Thursday.

In afternoon trade, the supermarket giant’s shares are up almost 2% to $16.48.

Why are Coles shares rising today?

Today’s gain appears to have been driven partly by the release of an upbeat broker note out of Goldman Sachs.

Although the broker is not recommending the company as a buy, it has taken its sell rating off its shares.

According to the note, the broker has upgraded Coles shares to a neutral rating with an improved price target of $16.30 (from $15.40).

What did the broker say?

Goldman first explained why it previously had a sell rating on the supermarket operator’s shares. It said:

We downgraded COL in Sep 2022 on the thesis that Cole’s e-Comm (Ocado) strategy, with its next day and structurally more expensive model, would lead to market share losses and its entrance into a high investment cycle for digital and supply chain would pressure margins over FY23-25. Since we downgraded on 13 Sep2022, COL has fallen 6% vs the ASX 200 of +11%. Since then COL has: 1. Delayed the Ocado facilities multiple times, increasing capex to ~A$400m as well as factoring in higher than expected implementation costs. 2. Reported unexpectedly high stock-losses due to store/digital under-investment; which continues to hit margins.

However, the broker is now feeling a lot more positive on Coles and its shares following the release of its half year results and third quarter sales update. It explains:

Following the 1H24/3Q24 results and recent channel checks we have become more positive on COL on the basis: 1. New CEO has actively addressed margin/loss issues with now 346 stores with skip scans and 286 with smart gates; 2. Demonstrated strong retail execution including the effective communication of value to consumers via various price programs, collectibles and protein availability in 3Q24 resulting in ~360 bps of sales growth difference vs WOW and further cost-out of A$1B Simplify and Save across 4 years; 3. Faster scaling of Retail Media, which is significantly accretive to the Food segment margin, together with its digital and loyalty program, re-activating Flybuys active members to 9.4mn.

Should you invest?

While Goldman only has a neutral rating on Coles shares, there are brokers out there that are feeling a lot more bullish.

One of those is Morgans, which recently put an add rating and $18.95 price target on its shares. This implies potential upside of approximately 15% for investors over the next 12 months.

The post Why Goldman Sachs just upgraded Coles shares appeared first on The Motley Fool Australia.

More reading

• Brokers name 4 ASX 200 dividend shares to buy
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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 Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record a very strong gain. At the time of writing, the benchmark index is up 1.5% to 7,872.1 points.

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

Aristocrat Leisure Limited (ASX: ALL)

The Aristocrat Leisure share price is up almost 12% to $45.50. Investors have been buying this gaming technology company’s shares following the release of its half year results. Aristocrat reported a 6.1% increase in revenue to $3,269.6 million and a 16.8% jump in net profit after tax to $723.3 million. This was significantly better than the market was expecting, which explains why its shares are rallying so strongly today. Another positive was that the company boosted its dividend and announced an additional $350 million share buyback.

Graincorp Ltd (ASX: GNC)

The Graincorp share price is up 2% to $8.25. This follows the release of the grain exporter’s half year results. Although the company posted a 57% decline in underlying EBITDA to $164 million for the half, this was a little ahead of expectations. The market also appears pleased that management has reaffirmed its full year underlying EBITDA guidance of $250 million to $280 million.

Incitec Pivot Ltd (ASX: IPL)

The Incitec Pivot share price is up 3% to $2.91. This has been driven by the release of the fertiliser and commercial explosives company’s half year results. Incitec Pivot delivered underlying EBIT growth of 18% compared to the prior corresponding period after adjusting for re-basing items, which relate primarily to the closure of manufacturing at Gibson Island and the sale of Waggaman. Management advised that this reflects growth in all customer-facing businesses, including record first half EBIT for the Dyno Nobel Asia Pacific business and the Fertilisers Distribution business.

Patriot Battery Metals Inc. (ASX: PMT)

The Patriot Battery Metals share price is up 9% to 87.2 cents. Investors have been buying the lithium developer’s shares following the release of a new batch of core assay results for drill holes completed this year at the CV5 spodumene pegmatite at its Corvette Lithium Project in Canada. Patriot Battery Metals’ vice president of exploration, Darren L. Smith, commented: “Another round of CV5 core assays from our infill program and it continues to deliver to expectations. Coupled with the new high grade discovery at CV13, the 2024 winter program’s results continue to demonstrate the quality and scale on show at Corvette.”

The post Why Aristocrat Leisure, Graincorp, Incitec Pivot, and Patriot Battery Metals are rising today 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.

An under-the-radar ASX healthcare stock is rocketing today.

To be sure, Thursday is proving to be a good day for most ASX shares.

The All Ordinaries Index (ASX: XAO) is up 1.5% at the time of writing as easing inflation in the United States and rising unemployment in Australia increase the odds of central bank interest rate cuts (details here).

But this ASX healthcare stock is leaving those gains in the dust.

Shares in the company, which specialises in medical devices, closed up 3.9% yesterday at 2.7 cents. In earlier trade today, shares were swapping hands for 4.4 cents apiece, up an eye-watering 63.0%.

After some likely profit-taking, shares are currently trading for 3.2 cents apiece, up 18.5%.

Any guesses?

If you said Atomo Diagnostics Ltd (ASX: AT1), go to the head of the virtual class.

Here’s why the Atomo Diagnostics share price is rocketing today.

ASX healthcare stock lifts off on Federal budget news

The Atomo Diagnostics share price is soaring after the company lauded the new Federal budget’s commitment to fund the expansion of HIV self-testing.

That’s important for shareholders, as the ASX health care stock supplies the only HIV self-test that’s included on the Australian Register of Therapeutic Goods (ARTG).

Management noted the key role the company has played in implementing the pilot programs, which will now be scaled up nationally with government funding support.

Atomo shares are surging, and the company says it anticipates that “a significant portion of the funding committed to these expanded HIV self-test programs” will be used to buy its HIV tests.

The ASX healthcare stock highlighted that under the new Federal budget:

• People with or at risk of HIV will receive unprecedented support ($43.9 million) through better prevention, testing, workforce training and information, with the government committed to eliminating HIV transmission by 2030.
• More people in at-risk groups will get free HIV self-test kits through the expanded national HIV self-test mail-out program.
• And people around Australia will get wider access to HIV testing by extending the South Australia-based HIV testing vending machine pilot to every state and territory.

What did management say?

Commenting on the new funding that’s sending the ASX healthcare stock soaring today, Atomo CEO John Kelly said:

We are delighted to see the government recognise the critical need to ensure HIV self-test availability across the community and fund the rapid expansion of the national HIV self-test mail-out program and the HIV self-test vending machine pilots.

Both have proven extremely successful in increasing testing rates among groups not currently testing via healthcare facility-based services.

With today’s intraday moves factored in, the ASX healthcare stock is up 60% year to date.

The post Guess which ASX healthcare stock just exploded 63% on Federal budget funding news! appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for ASX iron ore shares after the federal budget?
• Why Goldman Sachs just upgraded Coles shares
• Why Aristocrat Leisure, Graincorp, Incitec Pivot, and Patriot Battery Metals are rising today
• What this top broker is saying about IAG shares
• Why IDP Education, JB Hi-Fi, PYC, and Renascor shares are falling today

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

Insurance Australia Group Ltd (ASX: IAG) shares are up 2.77% to $6.50 apiece on Thursday.

The ASX insurance stock is trading just a few cents off its four-year high of $6.54 set on 10 April.

There is no official news from Australia’s biggest general insurer today.

IAG shares are likely riding higher because the whole market is up. In earlier trading, the S&P/ASX 200 Index (ASX: XJO) leapt to an intraday high of 7,891.5 points, up 1.78%.

The ASX 200 is rising following a strong night on Wall Street with the S&P 500 hitting a new closing high.

This was on the back of encouraging new US inflation data which has renewed hopes of an earlier interest rate cut from the US Federal Reserve.

IAG shares better than Suncorp

As reported in The Australian today, Citi analyst Nigel Pittaway prefers IAG shares to fellow insurance stock Suncorp Group Ltd (ASX: SUN), but only just.

In a note to investors, Pittaway said:

The winner in our head-to-head analysis is IAG, although the winning margin is slight.

The broker explained that both ASX insurance stocks had positive short-term prospects, including strong top-line growth and the likelihood of expanding margins.

He said:

In our view, both have strong earnings momentum and we expect the market to continue to buy this for now, even as valuation concerns become more paramount.

Pittaway noted that Suncorp had the best premium growth in Australia, the best capital return, and likely the better dividend potential of the two.

He commented that IAG had an opportunity to cut costs, and currently offered relatively better market value than Suncorp shares.

Citi has a 12-month share price target of $6.75 on IAG, implying a potential 3.7% upside.

The consensus among 14 analysts on CommSec is that IAG shares are a moderate buy. Four say the stock is a strong buy, nine say it’s a hold, and one says IAG shares are a moderate sell at today’s share price.

Goldman Sachs has a neutral rating on IAG with a 12-month share price target of $6.30. This implies a potential 3.2% downside on the ASX insurance stock.

What’s next for IAG?

My colleague Tristan recently discussed the earnings outlook for IAG through to 2026 based on a new note out of broker UBS.

As for dividends, the consensus forecast on CommSec is for IAG to pay 26 cents per share in 2024, 30 cents in 2025, and 32 cents in 2026.

That means dividend yields of 3.99%, 4.6% and 5.7%, respectively, plus some franking.

In 2023, the annual dividend had 30% franking, and this year’s interim dividend had 40% franking.

The post What this top broker is saying about IAG shares appeared first on The Motley Fool Australia.

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The S&P/ASX 200 Index (ASX: XJO) is having a day to remember on Thursday. In afternoon trade, the benchmark index is up a sizeable 1.55% to 7,873.9 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are falling:

IDP Education Ltd (ASX: IEL)

The IDP Education share price is down 2% to $16.66. This appears to have been driven by a broker note out of Morgans this morning. According to the note, the broker has retained its hold rating on the language testing and student placement company’s shares with a reduced price target of $20.00. Morgans is concerned about how restrictive policies could impact the company’s key markets and lead to lower than expected demand for its services.

JB Hi-Fi Ltd (ASX: JBH)

The JB Hi-Fi share price is down over 1% to $57.38. This morning, analysts at Goldman Sachs downgraded the retail giant’s shares to a sell rating with a new $50.00 price target (from $56.50). This implies potential downside of approximately 13% from where its shares trade today. Goldman notes that the company is facing “stronger competition on JBH AU from several fronts including expanding range at Amazon, recovery of execution from HVN, and intensifying competition from Officeworks.”

PYC Therapeutics Ltd (ASX: PYC)

The PYC Therapeutics share price is down almost 5% to 10 cents. This follows the release of a trial update from the clinical-stage biotechnology company. PYC is developing a pipeline of first-in-class precision medicines for patients who have genetic diseases and have no treatment options available. Today’s update revealed that the company has completed dosing in patient cohort 4 of the ongoing Single Ascending Dose (SAD) study. This is for its trial of patients with a blinding eye disease called Retinitis Pigmentosa type 11 (RP11). Judging by the share price reaction, investors appear to have seen something in the update that didn’t meet their expectations.

Renascor Resources Ltd (ASX: RNU)

The Renascor Resources share price is down 11.5% to 11.5 cents. This may have been driven by profit taking from some investors after the battery materials company’s shares surged on Wednesday. Investors were buying the company’s shares in response to the Federal Budget. They appear to believe that the company’s proposed vertically integrated Battery Anode Material Manufacturing Project in South Australia could benefit from the Budget. The Government is investing $8.8 billion over the decade to strengthen critical minerals supply chains. This Budget establishes a production tax incentive for processing and refining critical minerals at an estimated cost of $7 billion over the decade.

The post Why IDP Education, JB Hi-Fi, PYC, and Renascor shares are falling today appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Which ASX shares could be set to benefit from the federal budget?
• 3 ASX All Ords shares going gangbusters on Wednesday
• Why BHP, Boss Energy, Domino’s, and Renascor shares are racing higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Idp Education. The Motley Fool Australia has recommended Idp Education and Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.