• 3 Australian shares to buy and hold forever in your ASX portfolio

    A businessman hugs his computer and smiles.

    A businessman hugs his computer and smiles.

    Recommending Australian shares that an ASX investor can buy and reasonably expect to hold forever is no easy task. After all, forever is an awfully long time. Predicting what might happen on the markets tomorrow is difficult enough, let alone what a company might be trading for in five, ten or 20 years.

    However, that won’t stop us today. As the legendary Warren Buffett once said, “I never attempt to make money on the stock market. I buy on the assumption that they could close the market the next day and not reopen it for five years”.

    So with that in mind, let’s talk about three Australian shares that I think are worth buying and holding today for a lifelong investment.

    3 Australian shares to buy and hold forever

    Woolworths Group Ltd (ASX: WOW)

    First up is a company we’d all know well, I’d wager. Woolworths is one of the most prominent businesses in Australia. It boasts the largest network of supermarkets and grocers in the country and also owns the Big W department store chain.

    My investing thesis for Woolworths is simple. More Australians choose Woolworths to shop for life’s essentials than any other consumer staples company. I don’t see our need to continually eat, drink and stock our households going away any time soon.

    As such, I think this high-quality business is an Australian share you can comfortably hold forever. A recent share price dip doesn’t hurt either.

    JB Hi-Fi Ltd (ASX: JBH)

    Next up we have another popular shopping destination in JB Hi-Fi. This ASX 200 retail stock has proven to be something of a weathervane in recent decades. If you visited a JB store 30 years ago, you’d probably find it stocked with the latest hi-fi equipment.

    But JB has proven it is highly adept at moving with the times. Today, it stocks far more consumer electronics, phones, computers and home appliances than hi-fi equipment (although the vinyl records aisle is still popular in most JB stores).

    This Australian share has proven that it has what it takes to survive and thrive in today’s modern economy. I fully expect shoppers to flock to JB for decades to come.

    iShares S&P 500 ETF (ASX: IVV)

    Finally, we have an exchange-traded fund (ETF). The S&P 500 Index is the most widely-tracked index in the world It consists of the largest 500 shares listed on the US market. That’s everything from Apple, Netflix and Amazon to Adobe, Ford and PepsiCo.

    Although the iShares S&P 500 ETF is an index fund with no exposure to Australian shares, I still think it’s a great investment for any ASX investor. The S&P 500 simply holds most of the best companies in the world. It has delivered meaningful returns over many decades. Even Warren Buffett has recommended it as an investment suitable for almost anyone.

    Buffett has advised all investors to ‘never bet against America’, and so this all-American ETF is the final investment I envisage will prove to be a lucrative share to buy and hold forever.

    The post 3 Australian shares to buy and hold forever in your ASX portfolio appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

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    *Returns as of 1 February 2024

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    John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Adobe, Amazon, Apple, Berkshire Hathaway, and PepsiCo. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adobe, Amazon, Apple, Berkshire Hathaway, Netflix, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Adobe, Amazon, Apple, Berkshire Hathaway, Jb Hi-Fi, Netflix, and iShares S&P 500 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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  • 3 ASX dividend shares to buy for a passive income boost

    Man looking amazed holding $50 Australian notes, representing ASX dividends.

    Man looking amazed holding $50 Australian notes, representing ASX dividends.

    Thankfully for income investors, there are plenty of ASX dividend shares to choose from on the Australian share market.

    But which ones could be buys this week?

    Well, listed below there are three that analysts have rated as buys. Here’s what sort of yields could be on offer with these shares:

    Endeavour Group Ltd (ASX: EDV)

    The first ASX dividend share for income investors to look at this week is Endeavour. It is the drinks giant behind the leading BWS and Dan Murphy’s brands, as well as a large network of hotels.

    It is the company’s “clear market leading position” and attractive valuation that Goldman Sachs likes. It currently has a buy rating and $6.20 price target on the company’s shares.

    As for dividends, the broker is forecasting fully franked dividends of approximately 22 cents per share in FY 2024 and FY 2025. Based on the current Endeavour share price of $5.31, this will mean dividend yields of 4.1% for both years.

    Stockland Corporation Ltd (ASX: SGP)

    Another ASX dividend share that could be a buy is Stockland. It is known as Australia’s largest community creator, delivering a range of masterplanned communities and medium density housing in growth areas across the country.

    Citi likes the company and believes it is well-placed to pay big dividends. It has a buy rating and $5.00 price target on its shares.

    In respect to income, Citi is expecting dividends per share of 26.2 cents in FY 2024 and 26.6 cents in FY 2025. Based on the current Stockland share price of $4.80, this will mean yields of 5.45% and 5.5% yields, respectively.

    Universal Store Holdings Ltd (ASX: UNI)

    A final ASX dividend share that could be a buy this week is Universal Store. It is the youth fashion retailer behind the eponymous Universal Store brands, as well as the Perfect Stranger and Thrills brands.

    The team at Bell Potter is very positive on the company. So much so, it recently put a buy rating and $5.65 price target on its shares.

    The broker believes the company is well-placed to pay fully franked dividends per share of 24 cents in FY 2024 and then 31 cents in FY 2025. Based on the current Universal Store share price of $5.05, this will mean attractive yields of 4.75% and 6.1%, respectively.

    The post 3 ASX dividend shares to buy for a passive income boost appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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    Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Endeavour Group and Universal Store. 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 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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  • 5 things to watch on the ASX 200 on Tuesday

    Smiling man with phone in wheelchair watching stocks and trends on computer

    Smiling man with phone in wheelchair watching stocks and trends on computer

    On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with the smallest of gains. The benchmark index rose slightly to 7,675.8 points.

    Will the market be able to build on this on Tuesday? Here are five things to watch:

    ASX 200 expected to edge higher

    The Australian share market is expected to edge higher on Tuesday following a positive start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 2 points higher. In late trade in the United States, the Dow Jones is up 0.35%, the S&P 500 is up 0.8%, and the NASDAQ is 1% higher.

    RBA meeting

    The Reserve Bank of Australia will be meeting today to decide on interest rates. Unfortunately for homeowners and borrowers, the central bank is largely expected to keep rates on hold at this meeting and through to at least September. The ASX 30 Day Interbank Cash Rate Futures March 2024 contract is currently trading at 95.685, which is indicating only a 5% expectation of an interest rate decrease to 4.10% at today’s meeting.

    Oil prices surge

    ASX 200 energy shares Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) could have a strong session after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 2.45% to US$83.03 a barrel and the Brent crude oil price is up 2.1% to US$87.13 a barrel. Oil prices stormed higher on news of lower Iraq and Saudi exports.

    New Hope results

    The New Hope Corporation Ltd (ASX: NHC) share price will be on watch today when the coal miner releases its half-year results. The coal miner has already advised that it expects to report EBITDA of $425 million for the half. All eyes will be on its interim dividend, which is likely to be down approximately 50% on the prior corresponding period. This is due largely to weaker coal prices.

    Gold price rises

    ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent session after the gold price edged higher on Monday. According to CNBC, the spot gold price is up 0.15% to US$2,164.4 an ounce. Traders were buying gold ahead of a number of central bank meetings.

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

    Wondering where you should invest $1,000 right now?

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    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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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.

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  • The best ASX shares to invest $500 in right now

    A person sitting at a desk smiling and looking at a computer.A person sitting at a desk smiling and looking at a computer.

    Many Australians have the impression that investing in stocks is only for rich people. 

    But that cannot be further from the truth.

    If you have just $500 you could make a pretty useful start to a portfolio.

    I have taken the liberty of picking out the best ASX shares that could be ideal purchases for a few hundred dollars.

    And for diversification, they’re all a bit different to each other.

    One is a reliable growth exchange-traded fund (ETF), another is an explosive pharmaceutical stock that’s in a dip currently, and the third is a cloud computing and artificial intelligence (AI) play that’s already soared in recent times.

    The best ASX shares for diversification

    Regardless of how much you have to spend, I am a big fan of Vaneck Morningstar Wide Moat Etf (ASX: MOAT) as an excellent starter stock for a new portfolio.

    This ETF tracks the constituents of the Morningstar Wide Moat Focus NR AUD Index, which are companies that are judged to have the biggest competitive advantages over their rivals and potential rivals.

    Morningstar and many other investors call this concept an “economic moat“.

    Looking at the current constituent list, there are some familiar brands such as Walt Disney Co (NYSE: DIS), Alphabet Inc (NASDAQ: GOOGL) and Nike Inc (NYSE: NKE).

    Another benefit of the Wide Moat ETF is that the US stocks provide diversification from your other ASX holdings.

    Chuck $500 on this one.

    The ASX stock with explosive potential

    Neuren Pharmaceuticals Ltd (ASX: NEU) was the best performer in the S&P/ASX 200 Index (ASX: XJO) last year with a spectacular 214% climb.

    This year hasn’t been as kind though, with the healthcare company taking a 22.4% dive so far in 2024.

    “A short report targeting Neuren’s US partner, Acadia Pharmaceuticals Inc (NASDAQ: ACAD), combined with unexpected holiday-period seasonality in sales for its flagship drug, Daybue, shook investor confidence,” Elvest analysts said in a memo to clients.

    They are still confident in the Melbourne outfit’s long-term outlook.

    “Our 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.”

    All six analysts currently surveyed on CMC Invest reckon Neuren is a buy.

    The best ASX shares to invest in artificial intelligence

    While the ASX is short on companies that directly produce generative artificial intelligence, Nextdc Ltd (ASX: NXT) is going gangbusters.

    As a provider of data centres, the company is enjoying high demand from the intensive resources required for AI and cloud computing generally.

    To celebrate February 29, Moomoo market strategist Jessica Amir declared NextDC as one of the stocks she would buy and hold until the next leap year.

    The business is at a “tipping point”, she said.

    “Positioned to capture [and] generate AI opportunities… Market is telling you that it’s exciting about its future and that it’s essential in AI.

    “Half of its revenue is from NSW and ACT — huge potential to expanding capacity and geographically — and it’s doing that.”

    The post The best ASX shares to invest $500 in right now appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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    Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tony Yoo has positions in VanEck Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Nike, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $47.50 calls on Nike. The Motley Fool Australia has recommended Alphabet, Nike, VanEck Morningstar Wide Moat ETF, and Walt Disney. 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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  • This new catalyst could make A2 Milk shares a buy

    A happy baby drinking milk from a bottleA happy baby drinking milk from a bottle

    A2 Milk Company Ltd (ASX: A2M) shares have been on a volatile journey over the last year. The share price is up 36% in 2024, but down 10% over the past 12 months.

    A fund manager has picked out the dairy stock as an opportunity because of a potential catalyst that could send A2 Milk shares higher.

    No one can say for sure when a share price is going to go up, but certain events can excite investors. Let’s look at why we should pay attention to this business that sells milk products that only contain the A2 protein type.

    Exciting catalyst for A2 Milk shares

    The investment team from Wilson Asset Management (WAM) have picked A2 Milk for the WAM Active Limited (ASX: WAA) portfolio.

    Here’s one of the main reasons why they like the stock:

    We believe that the launch of its new products in the second half of FY24, which include a2 Gentle Gold, two new English label infant formula products, and fortified milk powder products, positions the company to continue to deliver revenue growth.

    WAM pointed out that A2 Milk recently reported an FY24 half-year result which beat market expectations.

    The A2 Milk HY24 earnings before interest, tax, depreciation and amortisation (EBITDA) grew by 5%, with an increased market share in the Chinese infant milk formula market.

    A2 Milk managed to achieve that despite a double-digit decline in the Chinese birth rate.

    The WAM investment team said they were pleased to see A2 Milk decided to increase its FY24 revenue growth guidance from low to low-to-mid single-digit percent compared to the prior year.

    Single-digit revenue growth may not sound exciting, but a share price usually includes a number of underlying assumptions. If the revenue achieved is better than expected, then it can be a catalyst to send the A2 Milk share price higher.

    Valuation

    Based on the current A2 Milk share price and using profit projections on Commsec, it’s valued at 26 times FY24 estimated earnings and 19 times FY26’s estimated earnings.

    Time will tell if WAM is right to be excited about the dairy company, or whether things are going to go sour and other ASX shares would be better picks.

    The post This new catalyst could make A2 Milk shares a buy appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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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 recommended A2 Milk. 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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  • Why these ASX 200 growth shares could be top buys now

    Smiling young parents with their daughter dream of success.

    Smiling young parents with their daughter dream of success.

    If you’re a growth investor and looking for new portfolio additions this week, then it could be worth checking out the three shares named below.

    That’s because they have recently been tipped as buys by analysts.

    Here’s why they are feeling bullish about these ASX 200 growth shares:

    Life360 Inc (ASX: 360)

    Goldman Sachs is a fan of this location technology company and sees it as a top option for investors even after rising strongly this year. It said:

    360’s re-rate is only beginning, in our view, as it delivers solid subscription and EBITDA growth from the core business while opening up significant upside optionality via advertising monetisation.

    FY24E EBITDA guidance appears conservative relative to the operating leverage demonstrated in FY23A and provides visibility to >50% growth in both FY24/25E.

    Goldman currently has a buy rating and $14.20 price target on the ASX 200 growth share.

    Lovisa Holdings Ltd (ASX: LOV)

    Another ASX 200 growth share that analysts are positive on is fast fashion jewellery retailer Lovisa.

    Morgans was very pleased with the company’s performance during the first half, noting that its result came in ahead of expectations. The good news is that it believes there’s more to come thanks to its global expansion. It said:

    The 1H24 result surpassed expectations, mainly due to strong gross margins, which were supported by favourable changes to the price architecture. We have increased our EBIT estimate for the current year by 4%, but, for us, it’s not about the near-term. The investor should focus on what this business could develop into in the years ahead. We reiterate our Add rating and increase our target price.

    Morgans has an add rating and $35.00 price target on its shares.

    TechnologyOne Ltd (ASX: TNE)

    Finally, this enterprise software provider could also be a top ASX 200 growth share to buy according to Goldman Sachs.

    The broker is expecting TechnologyOne to achieve its annual recurring revenue (ARR) target and deliver mid to high teen earnings per share growth through to at least FY 2026. It explains:

    In our view, the company is well placed to meet its A$500mn FY26 ARR target through a combination of SaaS flip uplift, net expansion and new customer growth. We see margin expansion resuming from FY24E onwards, which in combination with robust revenue growth should drive a mid-high teens EPS CAGR to FY26E, providing strong earnings visibility. TNE’s share price has historically been driven by its strong rate of compound earnings growth underpinned by its leading market position, high R&D investment and defensive public sector end markets.

    Goldman has a buy rating and $18.05 price target on its shares.

    The post Why these ASX 200 growth shares could be top buys now appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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    Motley Fool contributor James Mickleboro has positions in Life360 and Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Life360, Lovisa, and Technology One. The Motley Fool Australia has recommended Lovisa and Technology One. 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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  • Why is the Zip share price the best-performing ASX 300 stock so far this year?

    A woman sits on a chair smiling as she shops online.

    A woman sits on a chair smiling as she shops online.

    The best-performing stock on the S&P/ASX 300 Index (ASX: XKO) over 2024 to date might surprise you. By the headline, you probably already know the answer, but just for the record, it is none other than buy now, pay later (BNPL) share Zip Co Ltd (ASX: ZIP).

    This might come as a surprise to some investors because it wasn’t too long ago that Zip shares were something of a pariah on the ASX. Remember, this is a company that fell from over $14.50 a share in early 2021 to just 26 cents a share by October last year. That’s a wealth-destroying drop of 98.2%.

    Yet investors who have bravely held on during this rollercoaster ride (or been better, bought in October) have enjoyed something of a reprieve in recent months.

    Between 6 October and 31 December, Zip shares hopped on a rocket ship, gaining a whopping 146%. Since the beginning of 2024, we’ve seen another 120.97% added to the Zip share price.

    That stonking gain is enough to crown Zip the best-performing ASX 300 share of the year so far.

    What’s gone so right for Zip shares in 2024?

    Well, Zip’s most recent success seems to be a result of two events in particular.

    Firstly, Zip delivered a fairly impressive quarterly update back in January. The BNPL stock told investors that its transaction volumes rose 8.5% over the second quarter of FY2024. Revenues also rose by an even more luminous 26.1% to $225.6 million for the quarter.

    Zip backed this up with its half-year earnings results in February too. The company reported a 28.9% rise in revenues for the six months to 31 December, as well as a cash gross profit of $176.2 million, which was up 45.9%.

    Secondly, Zip’s January quarterly update prompted some rumours over February that Zip might be becoming an appealing target for a takeover. As we covered at the time, “‘multiple sources’ have suggested at least one possible suitor is eyeing up Zip, and it is ‘gaining interest’”.

    We haven’t heard any more developments on that front, but this did give Zip shares a meaningful boost, and we are still seeing the momentum from this in the company’s stock price today.

    So a wonderful start to 2024 for Zip shares. Let’s see what this BNPL share does over the rest of 2024.

    The post Why is the Zip share price the best-performing ASX 300 stock so far this year? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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    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 Zip Co. 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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  • 2 ‘materially undervalued’ ASX 200 shares to buy while they’re at ‘attractive value’

    Smiling couple looking at a phone at a bargain opportunity.Smiling couple looking at a phone at a bargain opportunity.

    There is no sweeter action in stock investing than picking up S&P/ASX 200 Index (ASX: XJO) stocks for cheap then watching it grow while everyone else catches up.

    So in that spirit, there are two shares that Baker Young analyst Toby Grimm reckons are ripe to buy at a discount right now:

    Take a long-term view of this ASX 200 beauty

    The AGL Energy Limited (ASX: AGL) share price has tumbled more than 29% since last August’s reporting season.

    The company has had many governance issues and boardroom fights over the past couple of years, but those problems seem to have largely settled down now.

    The latest numbers were pretty good, Grimm told The Bull.

    “The energy giant’s share price has continued to languish despite releasing better-than-expected first half earnings in fiscal year 2024 amid upgrading full year guidance.”

    The trouble is that, after years of elevated prices, investors have been pricing in a weaker wholesale electricity market in 2025.

    “Taking a longer term view, we believe the stock is materially undervalued,” said Grimm.

    “Stronger earnings provide a solid foundation to fund renewable energy investments.”

    AGL currently enjoys decent support from the professional community.

    Broking platform CMC Invest shows eight out of 11 analysts recommending the stock as a buy.

    Dividend producer that could rocket later this year

    Packaging giant Amcor CDI (ASX: AMC) has struggled to launch upward momentum in its shares for a while now.

    The stock is down more than 21% since December 2022.

    Amcor has, however, handed out consistent dividends at a 5.3% yield, soothing the experience for its shareholders.

    Grimm admitted last month’s reporting season did not flatter the global business headquartered in Zurich.

    “The global packaging giant reported a soft set of results for the six months ending December 31, 2023, as customers in key markets delayed inventory restocking amid tougher retail conditions.”

    There is a light at the end of the tunnel though.

    “We see potential for a recovery later this year, as the company cuts costs and customer re-stocking improves,” said Grimm.

    “We view the stock as attractive value at current levels.”

    The post 2 ‘materially undervalued’ ASX 200 shares to buy while they’re at ‘attractive value’ appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

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    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
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    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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Amcor Plc. 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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  • 1 ASX stock to consider buying that could be the next ResMed

    Shot of a young scientist using a digital tablet while working in a lab.Shot of a young scientist using a digital tablet while working in a lab.

    Resmed CDI (ASX: RMD) has been a staple in many ASX stock portfolios for decades now.

    And it has rewarded the faith handsomely, becoming a 6-bagger over the past ten years. 

    It’s a stunning 19-bagger if you go back 20 years.

    Of course, the catch is that those investors who bought in March 2004 or 2014 would not have known with 100% certainty that their investment would become so successful.

    That’s the nature of investing in shares. You buy them when they’re cheaper to take on the risk that the story could turn sour — or become a wild triumph.

    There is one ASX stock at the moment that I think has the potential to become the next ResMed.

    While I can’t tell you whether it will have become a 6-bagger in 2034, it currently has a fighting chance to be much higher compared to now.

    This ASX stock has tripled in a year

    Like ResMed, Clarity Pharmaceuticals Ltd (ASX: CU6) also plays in the healthcare field but is involved in developing products for prostate cancer.

    Already this year the stock price has rocketed just shy of 30%. The shares have more than tripled in the past year.

    That’s all due to favourable results coming from testing of its copper therapies on prostate cancer patients.

    Back in January, Frazis Capital portfolio manager Michael Frazis was full of praise for the Sydney biotech.

    “This is the most exciting company I’ve come across in Australia lately.”

    Providing hope for a bleak situation

    Even though prostate cancer is common, the fact remains treatments can be soul-destroying for patients.

    “Treatment involves radical prostatectomy to remove ‘the true heart of the male’, hormone therapy, and traditional radiotherapy and chemotherapy,” said Frazis in a memo to clients.

    “These come with a bleak list of side effects: incontinence, impotence, loss of interest in sex, and depression.”

    Clarity is one of a bunch of companies seeking to improve this situation.

    “The hope is that the next generation of radiopharmaceuticals will be able to differentiate between harmless and metastatic disease, limit unnecessary treatments, catch any recurrence, and ultimately cure prostate cancer without such bleak side effects.”

    Admittedly the $717 million company is sparsely covered by professional investors at the moment.

    But broking platform CMC Invest shows at least Jefferies and Wilsons rating Clarity Pharmaceuticals as a buy currently.

    The post 1 ASX stock to consider buying that could be the next ResMed appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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    Motley Fool contributor Tony Yoo has positions in ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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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  • Here are the top 10 ASX 200 shares today

    A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her

    A woman sits in a cafe wearing a polka dotted shirt and holding a latte in one hand while reading something on a laptop that is sitting on the table in front of her

    The S&P/ASX 200 Index (ASX: XJO) had a wild start to this week’s trading but overcame plenty of pessimism throughout the trading day to finish up in the green, even if ever so slightly.

    After last Friday’s shocker, the ASX 200 spent much of the day in red territory, but pulled out a breakout just before the closing bell, finishing up 0.072% at 7,675.8 points.

    This shaky session comes after a rough end to the American trading week last Friday night (our time).

    The Dow Jones Industrial Average Index (DJX: .DJI) finished up its week on a negative note, recording a lump of 0.49%.

    It was even worse for the Nasdaq Composite Index (NASDAQ: .IXIC), which bombed 0.96%.

    But let’s get back to Australian shares with a look at what the different ASX sectors were up to this Monday.

    Winners and losers

    Starting off with the losers, the worst sector on the markets today was the real estate investment trust (REIT) space. The S&P/ASX 200 A-REIT Index (ASX: XPJ) put on a horror show today, cratering by a nasty 1.98%.

    Energy shares were the next-worst sector to be in. The S&P/ASX 200 Energy Index (ASX: XEJ) retreated by 0.34% by the close of trading.

    Gold stocks were another sore point, as you can see from the All Ordinaries Gold Index (ASX: XGD)’s loss of 0.33%.

    Healthcare shares were on the nose as well, with the S&P/ASX 200 Healthcare Index (ASX: XHJ) down 0.16%.

    Communication stocks fared just as poorly, with the S&P/ASX 200 Communication Services Index (ASX: XTJ) recording a 0.15% downward move.

    Or final losers were consumer discretionary shares. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) slid 0.09% this Monday.

    Turning now to the happier sectors, these were led by financial stocks. The S&P/ASX 200 Financials Index (ASX: XFJ) had a leasing run today, vaulting up 0.56%.

    Mining shares had a decent showing too, evidenced by the S&P/ASX 200 Materials Index (ASX: XMJ)’s 0.25% bump.

    Industrial stocks followed fairly close behind that, with the S&P/ASX 200 Industrials Index (ASX: XNJ) rising 0.22%.

    Utilities stocks also had a pleasant day, as you can see from the S&P/ASX 200 Utilities Index (ASX: XUJ)’s 0.15% gain.

    Tech shares were another winner from today’s trading. The S&P/ASX 200 Information Technology Index (ASX: XIJ) inched 0.08% higher by the end of the day.

    Finally, we had consumer staples stocks. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) barely budged, crawling 0.04% higher.

    Top 10 ASX 200 shares countdown

    The best stock in the index to have owned this Monday was gaming company Tabcorp Holdings Ltd (ASX: TAH). Tabcorp shares banked a solid 4.83% gain up to 76 cents a share.

    There was no fresh news out of the company, but perhaps this rise was a rebound from the shellacking the company copped last week.  

    ASX-listed company Share price Price change
    Tabcorp Holdings Ltd (ASX: TAH) $0.76 4.83%
    South32 Ltd (ASX: S32) $3.14 4.67%
    Iluka Resources Ltd (ASX: ILU) $7.12 3.79%
    Telix Pharmaceuticals Ltd (ASX: TLX) $12.50 3.48%
    Life360 Inc (ASX: 360) $12.58 3.45%
    IGO Ltd (ASX: IGO) $7.64 3.38%
    Paladin Energy Ltd (ASX: PDN) $1.245 3.32%
    A2 Milk Company Ltd (ASX: A2M) $5.96 3.29%
    Liontown Resources Ltd (ASX: LTR) $1.29 3.20%
    Insignia Financial Ltd (ASX: IFL) $2.40 3.00%

    Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

    The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. We believe these stocks are trading at attractive prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 1 February 2024

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    Motley Fool contributor Sebastian Bowen has positions in A2 Milk. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360 and Telix Pharmaceuticals. The Motley Fool Australia has recommended A2 Milk and Telix Pharmaceuticals. 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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