From time to time, Aussie companies will decide to try their luck at opening their doors in new markets. Analysts at Sydney-based Wilsons Advisory think an ASX All Ords stock could be eyeing the United Kingdom for expansion.

Hot on the heels of a successful local acquisition, Australia’s prominent furniture retailer Nick Scali Limited (ASX: NCK) may soon look further afield for its next bolt-on business, according to Wilsons’ equity research analyst Tom Camilleri.

Nick Scali shares have rallied 62% in the last year, but could a new growth avenue pave the way to greater heights?

A bigger market beckons

Done well, acquisitions can help a company grow beyond what is possible organically. That might mean breaking into a country like the UK, which touts a population of 67 million compared to Australia’s 26 million — two and a half times the size.

Speaking with The Australian, Camilleri described the UK sofa market with three key points:

• Fragmented market with similar consumer tastes
• 19.1% less sofa spend than Australian consumers per capita; and
• Greater online penetration of 20.5% versus 13.7% in Australia

Adding further clarity, Camilleri elaborated on the benefit of branching into the UK, stating:

We believe these market nuances do not act as a barrier for Nick Scali, and can present opportunities to bring strategies back to Australia and New Zealand (with digital platforms being an example).

Wilsons’ research into the UK sofa/furniture market postulates that a weakened economy could also paint a near-term risk of insolvencies. This might create an opportunity for this ASX All Ords stock to scoop up a UK furniture business at a discount.

This brings us to the next question… what can Nick Scali afford to acquire? As of 31 December 2023, the company carried $68.3 million in cash and $71.7 million in debt.

The company’s debt-to-equity ratio reached 72% in 2021. All else being equal, Nick Scali could tap another $74.6 million worth of debt, assuming lenders are comfortable with a similarly leveraged balance sheet today.

The risk for this ASX All Ords stock

Australian corporations and international expansions have a checkered past. Who can forget Wesfarmers Ltd‘s (ASX: WES) push to take Bunnings to the UK? A move that ended in retreat and a pricey $1 billion write-down.

Acquisitions can also be fraught with danger. Overpaying for the acquired assets, hidden legal problems, poorly executed strategies, cultural differences — the list goes on. Yet, the team at global consultancy McKinsey challenges this default belief.

As shown above, McKinsey research indicates ASX 100 companies that experienced the largest increases in international revenue also provided the greatest shareholder returns. However, according to McKinsey, this is predicated on having the right business model.

Looking at DFS Furniture (a listed UK furniture retailer), some differences appear. Most notably, DFS generated A$2.03 billion in revenue for the 12 months ended December 2023 with only 174 stores. Meanwhile, Nick Scali operates through 108 stores and raked in $450 million, equating to:

• $11.67 million per store for DFS
• $4.17 million per store for Nick Scali

I am concerned this suggests Nick Scali is behind the ball in online sales compared to UK competitors. For this reason, I’d hold off on buying this ASX All Ords stock if it were to make a sudden UK push.

The post Would I buy this ASX All Ords stock if it flies the nest for the UK? appeared first on The Motley Fool Australia.

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More reading

• 7 ASX small-cap shares that are cheaper than the ASX 200 in March 2024
• 3 great ASX shares I want to buy in the next bear market
• Fund manager rates these 2 undervalued ASX All Ords shares as buys
• I think they can! 3 ASX shares that can keep chugging higher
• 2 ASX companies with the firepower to raise their dividends

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 positions in and has recommended Wesfarmers. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool Australia has recommended Nick Scali. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Betashares Global Uranium ETF (ASX: URNM) has been a great place to invest over the last 12 months.

Thanks to supply concerns and growing demand, the price of the chemical element has been surging. This has put a rocket under uranium stocks across the globe.

This includes companies held by the URNM ETF such as Boss Energy Ltd (ASX: BOE), Cameco Corp (NYSE: CCJ), NexGen Energy Ltd (NYSE: NXE), and Paladin Energy Ltd (ASX: PDN).

Supply concerns as demand grows

Last year, traders were bidding uranium prices higher and higher after the world’s largest uranium miner, Kazatomprom, warned that it would fall short of its production targets.

This was being driven by shortages of sulphuric acid, which is a key ingredient in the production process for some uranium mills.

This couldn’t have come at a worse time, with demand for uranium growing rapidly due to global governments seeing nuclear energy as a way to achieve key decarbonisation goals.

But it gets even better for the companies included in the Betashares Global Uranium ETF. In light of the above, SP Angel mining analyst John Meyer, believes that uranium prices could be on a very long upwards trajectory. According to Reuters, he said:

The market has been slowly building higher prices as mining costs rise and nuclear generators look to build stocks to guard against increasingly risky supply-side issues. We see prices rising year-on-year for next 10-20 years or till the world finds another source for large scale un-interruptible base load power with a low carbon footprint.

The World Nuclear Association was forecasting demand from nuclear reactors to be 65,650 tonnes of elemental uranium (tU) in 2023 and then almost double to 130,000 tU by 2040.

Investing $10,000 in the Betashares Global Uranium ETF URNM

If I had invested in the Betashares Global Uranium ETF a year ago, I would be smiling widely today.

During this time, the fund has absolutely smashed the market with a return many times the average for the period.

For example, if I had invested $10,000 into the URNM ETF in April 2023, I could have picked it up for $5.63 per unit. This means I could have snapped up 1,777 units for a total investment of $10,004.51.

Today, the Betashares Global Uranium ETF is fetching $9.81. This is 74.2% higher than the price I would have paid a year ago.

So, my 1,777 units would now have a market value of $17,432.37. That’s a sizeable $7,427.86 more than my original investment in the URNM ETF after just 12 months. Impressive!

The post How much would I have now if I’d invested $10,000 in Betashares Global Uranium ETF (URNM) a year ago? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Here are the top 10 ASX 200 shares today
• Why Austal, Mesoblast, Novonix, and Paladin Energy shares are racing higher
• Paladin Energy share price storms higher on big uranium production news
• Uranium is set to boom, and this is the ‘premium’ ASX stock to buy

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 recommended Cameco. The Motley Fool Australia has recommended Betashares Global Uranium Etf. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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S&P/ASX 200 Index (ASX: XJO) energy shares could be set to regain some sizzle in 2024.

Having seen their share prices and dividend payouts surge in 2022 and into 2023 on the back of oil prices north of US$140 per barrel, the big energy stocks came under increasing pressure as oil tumbled below US$75 per barrel by June 2023.

2024 has been a decidedly different story, with the oil price trending steadily higher.

On 2 January, international benchmark Brent crude oil was trading for US$76 per barrel.

At market close yesterday, that same barrel was worth US$87.84.

That’s up 15.6% year to date, and the highest level in five months.

Interestingly, only one of the big three ASX 200 energy shares focused on oil and gas has enjoyed a big share price lift so far from the oil price rebound.

Namely Beach Energy Ltd (ASX: BPT), whose shares are up by around 14% so far in 2024. Beach also trades on a fully franked dividend yield of 2.1%.

Santos Ltd (ASX: STO) shares have gained a much more modest 2% year to date. Santos shares trade on a fully franked dividend yield of 3.6%.

And Woodside Energy Group Ltd (ASX: WDS) shares have lost ground in 2024, down 3% despite the big lift in oil prices. Woodside shares trade on a fully franked dividend yield of 7.1%.

For some context, the ASX 200 is up a bit more than 3% this year.

Now, here’s why I think the rest of 2024 could see these ASX 200 energy shares playing some catchup.

Why now could be an opportune time to buy ASX 200 energy shares

While ASX 200 energy shares should enjoy higher revenues and higher profits amid higher oil and gas prices, energy markets are notoriously fickle.

And I believe many investors have been hesitant to pull the trigger and get back into the sector after the big retrace in 2023.

However, I think the rally we’re seeing in global oil prices this year has some legs. Meaning I expect Brent crude won’t dip too far below current levels and could well march above US$90 per barrel.

On the demand side, global oil demand is forecast to grow modestly this calendar year. While that may not be great news for the world’s carbon reduction aims, it should help support the oil price and ASX 200 energy shares.

On the supply side, the Organization of the Petroleum Exporting Countries and its allies (OPEC+) announced in early March that it would extend its production cuts, at least through to the end of June. And those cuts are more than offsetting near-record production in the United States and several other non-OPEC nations.

OPEC+ will make its next production announcement overnight tonight, with most analysts expecting the cartel to stick to its current reduced levels.

According to Bloomberg, that move will lead to an oil deficit through the end of 2024.

Commenting on the outlook, Warren Patterson, head of commodities strategy for ING Groep said (quoted by Bloomberg):

An escalation in tension in the Middle East has coincided with firmer oil fundamentals. The market is tightening thanks to OPEC+ supply cuts, which is evident with the strength we have seen in timespreads.

Patterson mentions another potentially strong tailwind for ASX 200 energy shares. Though not one we hope to see come to fruition.

Should the ongoing conflicts in the oil-rich Middle East erupt into a broader war, Brent crude could easily sail past US$100 per barrel amid global supply disruptions.

The post Is now the time to invest in these ASX 200 energy shares? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX dividend stocks with good yields to buy now
• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• 5 top ASX dividend shares to buy right now
• Why is the Beach Energy share price racing higher on Thursday?

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.

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Woolworths Group Ltd (ASX: WOW) stock has fallen significantly over the past year, as we can see on the chart below. Between 21 June 2023 and 1 April 2024, the Woolworths share price has dropped over 17%.

Woolworths is best known for its supermarkets in Australia and New Zealand (called Countdown). I’m sure most readers already knew it was a supermarket business, so I’m going to talk about three elements of the ASX share that investors should know.

Growing profit margins

When it comes to profit margins, ideally we’ll see a quality growing business deliver increasing economies of scale benefits over time.

The supermarket business’ Australian food division has indeed been achieving stronger profit margins. In the FY24 first-half result, Australian food sales increased 5.4% to $25.9 billion, earnings before interest, tax, depreciation and amortisation (EBITDA) rose by 9.2% to $2.5 billion and earnings before interest and tax (EBIT) grew by 9.9% to $1.57 billion.

However, Woolworths’ profit margins have come under scrutiny in recent months, so its margins may not remain this strong if the ASX share decides to help customers.  

Online growth and Everyday Rewards

WooliesX represents the online operations of Woolworths. In the HY24 result, WooliesX total sales increased by 27.5% as it provided more convenient options with ‘direct to boot’ and ‘same day’ propositions.

Improvement in fulfilment capabilities led to business to consumer same day fulfilment mix reaching 43% in the second quarter of FY24, with 85% of orders fulfilled within 24 hours of order placement.

Over time, I think more Aussies are going to do more of their food shopping (and other retail shopping) online. E-commerce sales represented 12.2% of total sales in HY24, compared to 10.8% in HY23. Online sales could have a growing impact on Woolworths stock as time goes on.

Its food and everyday digital platforms saw average weekly traffic of 19.5 million in the second quarter of FY24, 17.5 million in the FY24 first quarter, 16.3 million in the FY23 fourth quarter and 15.7 million in the FY23 third quarter.

One of the most important initiatives for retail businesses these days seems to be the loyalty program. Woolworths’ loyalty program is called Everyday Rewards, which can be useful for building customer loyalty and providing benefits.

At the end of Woolworths’ HY24, it had 9.4 million members, which was a rise of 4.4% over the six month period.

The tag rate of sales attributed to Everyday Rewards continues to grow – it was 71.3% in the FY24 second quarter, 70% in the FY24 first quarter, 69.2% in the FY23 fourth quarter and 68.8% in the FY23 third quarter.

Diversified earnings

The business makes a large majority of its sales from supermarkets in Australia, but it has a number of other segments that are providing contributions.

Obviously, there’s the New Zealand supermarkets, but it also has a business-to-business food distribution segment, the large retailer BIG W and various retail platforms.

The ASX share also recently announced it was acquiring a majority stake in the business that owns PETstock.

Foolish takeaway

According to the estimates on Commsec, the Woolworths stock price is valued at 23x FY24’s estimated earnings.

The post 3 things about Woolworths stock every smart investor knows appeared first on The Motley Fool Australia.

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More reading

• Are Woolworths shares a buy or a sell at under $33?
• Buy these fantastic blue chip ASX 200 shares in April
• Where to invest $8,000 in April 2024
• Top brokers name 3 ASX shares to buy next week
• Top ASX shares to buy instead of a term deposit in March 2024

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.

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If you want to grow your wealth, then buy and hold investing with ASX shares could be the way to do it.

That’s because the longer you hold onto ASX shares, the more you benefit from the power of compounding.

For example, if you were to invest $5,000 per year into ASX shares and generated a 10% per annum return, your portfolio would grow to be worth over $900,000 in 30 years.

But which ASX shares could be great options for that first $5,000 investment? Let’s take a look at five ASX shares that could generate lasting wealth.

5 ASX shares to buy for lasting wealth

Firstly, when picking ASX shares to buy and hold for the long term, you’ll want to focus on quality and the sustainability of competitive advantages.

Companies like CSL Ltd (ASX: CSL) and ResMed Inc. (ASX: RMD) in the healthcare sector immediately spring to mind. Both companies are leaders in their field and have very bright long term growth outlooks.

The team at Morgans is very positive on both companies. It has an add rating and $315.40 price target on CSL’s shares and an add rating and $32.82 price target on ResMed’s shares.

A couple more ASX shares that could be destined to generate lasting wealth for their shareholders are in the tech sector. They are rapidly growing location technology company Life360 Inc (ASX: 360) and cloud accounting platform provider Xero Ltd (ASX: XRO).

Goldman Sachs is a big fan of both companies and has a buy rating and $14.20 price target on Life360 shares and a buy rating and $152.00 price target on Xero’s shares.

A fifth and final ASX share for investors to consider as a buy and hold investment is Lovisa Holdings Ltd (ASX: LOV). It is a fashion jewellery retailer with a fast-growing global store network.

Morgans has been very impressed with the company’s growth in recent years and believes this positive form can continue. In fact, last year, the broker spoke very positively about its long-term growth outlook. It said:

“LOV continues to impress us with the rate at which it opens new stores and expands into new markets. As we have said before, LOV may just prove to be one of the biggest success stories in Australian retail. LOV is showing every sign of becoming a global brand.”

In light of the above, the broker recently put an add rating and $35.00 price target on the ASX share.

The post Got $5,000? 5 ASX shares to buy for lasting wealth appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why Cettire, Harvey Norman, Orora, and ResMed shares are sinking today
• How ASX shares vs. property performed in March
• CSL share price lower despite US FDA boost
• Top ASX shares to buy in April 2024

Motley Fool contributor James Mickleboro has positions in CSL, Life360, Lovisa, ResMed, and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goldman Sachs Group, Life360, Lovisa, ResMed, and Xero. The Motley Fool Australia has positions in and has recommended ResMed and Xero. The Motley Fool Australia has recommended CSL and Lovisa. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) had a subdued session and edged lower. The benchmark index dropped 0.1% to 7,887.9 points.

Will the market be able to bounce back from this on Wednesday? Here are five things to watch:

ASX 200 expected to sink

It looks set to be a difficult session for the Australian share market on Wednesday following a poor night in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 42 points or 0.5% lower. In late trade on Wall Street, the Dow Jones is down 0.9%, the S&P 500 has fallen 0.75%, and the Nasdaq is 1% lower. Interest rate cut doubts are behind these declines.

Oil prices surge

ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a great session after oil prices surged overnight. According to Bloomberg, the WTI crude oil price is up 1.8% to US$85.19 a barrel and the Brent crude oil price is up 1.8% to US$88.98 a barrel. Increasing geopolitical tensions sent oil prices to their highest levels since October.

Gold price breaks record

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a great session on Wednesday after the gold price stormed higher overnight. According to CNBC, the spot gold price is up 1.7% to US$2,295.6 an ounce. Concerns over rising tensions in the Middle East helped drive the precious metal to a new record high.

Paladin Energy rated as a buy

The Paladin Energy Ltd (ASX: PDN) share price is good value according to analysts at Bell Potter. This morning, the broker retained its buy rating on the uranium miner’s shares with an improved price target of $1.65. It said: “Our target price for PDN lifts slightly to $1.65/sh (previously $1.60/sh) on the restart of production. With a line-of sight to first revenue and cashflow we have removed the speculative rating and maintain our Buy recommendation.”

Dividend payday

A number of ASX 200 shares will be rewarding their shareholders with dividend payments on Wednesday. Among the companies paying dividends are biotechnology giant CSL Ltd (ASX: CSL), financial services company Insignia Financial Ltd (ASX: IFL), job listings giant Seek Ltd (ASX: SEK), wine company Treasury Wine Estates Ltd (ASX: TWE), and engineering company Worley Ltd (ASX: WOR).

The post 5 things to watch on the ASX 200 on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Happy Easter: ASX 200 hits another new record high
• ASX 200 gold shares surging as gold price hits new records. Now what?
• Leading brokers name 3 ASX shares to buy today
• What the latest US inflation data means for ASX 200 investors and interest rates

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

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Are Insurance Australia Group Ltd (ASX: IAG) shares worth buying right now? Good question.

Looking at the IAG share price over the past 12 months, you might be forgiven for instantly dismissing this proposition. After all, IAG has gained a whopping 35% over the past year, and 13% since the beginning of 2024 alone. That’s probably enough to give anyone who has heard the term ‘buy low, sell high’ some pause.

Yesterday this ASX 200 financial stock even hit a new 52-week high. Yep, IAG shares clocked a new high watermark of $6.48 in afternoon trading on Tuesday, nicely matching the S&P/ASX 200 Index (ASX: XJO)’s new record high.

The company then cooled off a little, finishing trade yesterday up 0.16% at $6.41.

We did get some news out of IAG shares on Tuesday morning, which may have contributed to investor optimism yesterday. The company told investors that Robert Cutler has been appointed as IAG’s new Group General Counsel (a top legal role), effective 4 April.

Cutler will replace Peter Horton in this role. Horton left IAG in December last year, after which the role went to Karen Ingram in an interim capacity.

IAG CEO Nick Hawkins told investors that Cutler has “extensive governance experience as a member of various boards, and has advised on regulatory and risk management matters for private and public organisations”.

So this might be what was boosting investor sentiment yesterday. Either way, no doubt investors will be cheering IAG’s new 52-week high with gusto.

Are IAG shares a buy at new 52-week highs though?

But that gets us back to the question of whether IAG shares are still a buy after their impressive runup over the past 12 months.

Well, ASX broker Goldman Sachs seems to think the company is in a good spot right now. As reported by The Australian, Goldman analysts Julian Braganza and Brian Kim reckon IAG, as well as its rival insurer Suncorp Group Ltd (ASX: SUN), will “benefit from a positive reinsurance market at their upcoming mid-year renewals”.

Reinsurance is an important component of IAG’s business model, and these Goldman analysts point out that “mid year renewal discussions were taking place earlier and reinsurers were ‘willing to secure capacity’”.

Even so, last month, my Fool colleague covered Goldman retaining a neutral rating on IAG shares, with a 12-month share price of $6.

However, other ASX brokers in Macquarie and Citi were more bullish. Macquarie gave the company a ‘buy’ rating and a share price target of $6.40, while Citi expects IAG shares to climb to $6.75 over the next 12 months.

The post Are IAG shares worth buying right now? appeared first on The Motley Fool Australia.

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More reading

• $19 billion in ASX dividends is being paid out this week. Are you getting your share?
• Here’s the IAG dividend forecast through to 2026

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Turning $100,000 into a million bucks might sound like magic.

But no one needs supernatural powers if they use ASX shares and compounding to their advantage.

Allow me to introduce you to three stocks that I reckon could do the trick:

Temporary glitch, with long-term tailwinds still there

Johns Lyng Group Ltd (ASX: JLG) is an insurance claims repairer that has been a favourite of professional investors for years now.

And why not? The stock price has gained an astounding 366% over the past five years for an incredible compound annual growth rate (CAGR) of 36%.

With the world unfortunately seeing more extreme weather events due to global warming, building repair demand from insurers is on an upward trend.

The great news for those who haven’t bought Johns Lyng yet is that the stock is in a bit of a dip right now.

The company put out a half-year result in February that didn’t quite meet expectations, so the stock tumbled more than 13% in a single day.

Earnings before interest, taxes, depreciation, and amortisation (EBITDA)  were up, but sales revenue and net profit after tax (NPAT) both dipped.

Professional investors aren’t panicking, though. They have their eyes on the prize in the long run.

Nine out of 11 analysts currently surveyed on the broking platform CMC Invest still reckon Johns Lyng is a buy. Eight of those recommend it as a strong add.

Look past the fear for these ASX shares

Similar to Johns Lyng, healthcare stock Neuren Pharmaceuticals Ltd (ASX: NEU) is also in a funk of late.

After snatching the crown as the S&P/ASX 200 Index (ASX: XJO)’s best performer in 2023, the stock has dived more than 16% to start 2024.

Much of that market fear has been driven by a short seller report that criticised the effectiveness of its Daybue drug.

But again, similar to Johns Lyng, the professional community is ignoring the noise. In fact, many analysts say the claims in the short report are just plain incorrect.

For example, the team at Blackwattle told its clients that the fear-mongering was “at odds with trial data and the real-life experience of medical specialists, patients, and their carers”.

The analysts at Elvest Fund have also told its clients that their “thesis for Neuren Pharmaceuticals is unchanged”.

“New CY24 Daybue sales guidance of US$370 to US$420 million (+120%) underpins another solid year of royalty and milestone revenue for Neuren.”

Neuren shares are roughly an 18-bagger over the past half-decade, equating to a crazy CAGR of 78%.

The ASX shares riding high on AI

The investment case for data centre operator Nextdc Ltd (ASX: NXT) is straightforward.

Artificial intelligence (AI) is in hot demand. AI requires huge computing power. Those computers need to be housed somewhere.

This tailwind has already been recognised, with NextDC shares rocketing 75% over the past 12 months.

But many experts believe the world is at the start of its AI journey.

Fifteen analysts out of 18 currently surveyed on CMC Invest recommend buying NextDC shares.

Over the past five years, the stock has realised a 23% CAGR.

Of course, not all shares you buy will do as well as the above trio. 

But with proper diversification, it’s not out of the question that your portfolio could achieve an average of 15% CAGR with the help of such massive winners.

So if you start with a $100,000 portfolio and then keep adding $1,000 to it each month, after 13 years, the nest egg will have expanded to $1,027,501.

And there it is, a million to your name.

Best wishes for your investments.

The post 3 ASX shares to help turn $100,000 into $1 million appeared first on The Motley Fool Australia.

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• Experts name 4 top ASX artificial intelligence shares
• 2 ASX shares I have been buying in 2024!
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Motley Fool contributor Tony Yoo has positions in 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 Johns Lyng Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s been a hellacious past year for Core Lithium Ltd (ASX: CXO) shares. Despite reaching production in early 2023, the lithium miner’s share price has fallen 82% over the past 12-month period.

The performance is incredibly disappointing when given context. Over this time, the S&P/ASX 200 Index (ASX: XJO) has gone from strength to strength, rising 9.2% to set fresh all-time highs, as depicted in the comparison below.

Now at 15.5 cents a pop, could Core Lithium shares be a glaring opportunity? After all, lithium prices have been holding above recent lows for around a month.

Mo lithium mo problems

Few considerations are more important to a mining company’s viability than the supply and demand dynamics for its mined material.

Some argue lithium’s fall from grace stemmed from an oversupply, others point the finger at inadequate demand. Either way, the last year was marred by more lithium than needed — sending the battery commodity into freefall.

The important question for investors is: has the situation changed for Core Lithium shares?

Interest rates are still elevated, dissuading new electric vehicle purchases. Some miners have dialled down production, yet other lithium majors are determined to ramp up capacity.

According to Bloomberg, Tianqi Lithium and Ganfeng Lithium Group have both indicated they will look to acquire additional reserves and grow lithium production capacity. This could spell trouble for lithium companies that cannot achieve similarly low production costs.

To buy, or not to buy Core Lithium shares

Last month provided a glimpse into how Core Lithium is faring lately. The company disclosed revenue of $134.8 million and a loss after tax of $167.6 million in its half-year results on 12 March.

It can be said rather objectively that those are some ugly numbers. Put another way, the Finniss Lithium Project operator lost $1.24 for every $1 product sold. Such figures are simply not sustainable in the long run.

I believe something must change for Core Lithium shares to be investable. Either lithium prices find equilibrium at a higher price, or the company begins monetising its other projects in gold, uranium, and base metals.

It would appear short sellers think the same. As shared yesterday, short interest in Core Lithium shares is around 8.3%, ranking in the top 10 most shorted companies on the ASX this week.

The post Down 80%, are Core Lithium shares finally worth buying in April? appeared first on The Motley Fool Australia.

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• Why has the lithium price quietly risen 20% in 2024?
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• ASX mining in April 2024: The best stock to buy right now
• The Core Lithium share is down 27% in March: What’s next?
• Why Telstra and these ASX 300 stocks just hit 52-week lows

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 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.

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If you always buy the same ASX growth stocks as everyone else, your portfolio will never do better than the market.

Yet some people wait to see others piling onto a stock before buying it themselves.

If you want to branch out a bit, I have one buy suggestion that has struggled in recent times, but could be in for a bull run in the years to come:

Why this ETF is an ASX growth stock

Global X Battery Tech & Lithium ETF (ASX: ACDC) may be an exchange-traded fund (ETF), but it displays growth stock characteristics.

Firstly, its investment theme is very much a forward-looking one. 

Electric cars, renewable energy and mobile devices all require high-powered batteries to store power. The demand for such hardware will be enormous in the coming years as the globe battles to reduce carbon emissions.

Secondly, while the fund includes some miners, which can be notoriously cyclical, many of its holdings are growth companies further down the supply chain.

For example, at the time of writing the Global X Battery Tech’s largest investments were:

• HD Hyundai Electric Co Ltd (KRX: 267260)
• Sumitomo Electric Industries Ltd (TYO: 5802)
• Renault SA (EPA: RNO)
• ABB Ltd (SWX: ABBN)

And thirdly, the fund has shown itself to be less volatile than the commodity market. 

For example, the lithium carbonate price tumbled from almost 600,000 CNY per tonne in November 2022 to now just over 100,000 CNY. In the same period, the ETF has only fallen 0.78%.

Buy it then lock it away

This is why I feel ACDC is an under-the-radar stock to buy right now.

Growth investors aren’t necessarily looking at it because of the depressed lithium market, and is trading at around a 10% discount from June last year.

But long-term visionaries could pounce on this with a goal to hold it for five to ten years. The economic cycle will have played itself out by then and the world will be scrambling even more for sorely needed batteries.

Moreover, you are not having to pick the winners of the battery revolution. The automatic diversification of an ETF renders that dilemma irrelevant.

Despite the 18-month lithium market malaise, the ACDC share price has doubled over the last half-decade.

This ETF has much going for it.

The post 1 under-the-radar ASX growth stock to consider buying now appeared first on The Motley Fool Australia.

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More reading

• 5 ASX ETFs to buy and hold for 10 years
• 3 reliable ASX shares you can buy at a discount

Motley Fool contributor Tony Yoo 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 Global X Battery Tech & Lithium ETF. The Motley Fool Australia has recommended Global X Battery Tech & Lithium ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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