Now could be the time to pounce on TechnologyOne Ltd (ASX: TNE) shares.

That’s the view of analysts at Bell Potter, which have just upgraded the ASX 200 tech stock.

What did the broker say about this ASX 200 tech stock?

Bell Potter has been looking ahead to the release of the company’s half-year results in May. The good news is that the broker is expecting a strong result from the enterprise software provider.

It highlights that the net revenue retention (NRR) metric will be a major focus for the market with these results. That’s because this will be the first result that its NRR metric hasn’t been boosted from its customer base transitioning to subscription plans. Bell Potter commented:

The NRR in each of the last two years has been >115% which is strong and above the industry average but a reasonable portion of the average additional revenue per customer has been generated through SaaS flips (where customers pay around twice what they were paying before).

SaaS flips were largely completed, however, by the end of FY23 so will provide little boost to NRR in FY24 and the $64m question is whether Technology One can maintain an NRR of around 115% or more without these flips.

Bell Potter believes the ASX 200 tech stock can continue this trend in FY 2024 and beyond, which it expects to go down well with the market. It said:

Our view is it can through a combination of other drivers […] and such an outcome in 1HFY24 (and beyond) would be well received by the market in our view given it implies or suggests the outlook remains positive and the company can double revenue every five years or so via organic growth alone.

These drivers are expected to include inflation, more products and modules, its SaaS+ offering, the upgrade to CiA fourth generation software, and the recent launch of DXP LG.

Upgraded to a buy rating

According to the note, the broker has upgraded the ASX 200 tech stock to a buy rating with an improved price target of $18.50.

Based on its current share price of $16.50, this implies potential upside of approximately 12.1% for investors over the next 12 months.

Bell Potter also expects a modest 1.3% dividend yield to boost the total potential return to almost 13.5%.

The post Guess which ASX 200 tech stock has just been upgraded appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Are you investing or gambling?
• These ASX 200 growth shares could be strong buys in March

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 Technology One. The Motley Fool Australia has recommended 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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The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price performance has been very disappointing. Since mid-January, it’s down by 26% and has sunk more than 70% from 10 September 2021. It has been one of the worst-performing S&P/ASX 200 Index (ASX: XJO) shares in the last two and a half years. Can it regain those former lofty heights?

It won’t be an easy journey if it is to achieve that previous level. The $161 peak was achieved when interest rates were almost 0% and during the COVID period, when there was very strong demand for delivered food.

Since then, it has decided to exit the Danish market, and overall demand in areas of its markets is not as strong as it was.

Early signs of recovery

To excite investors, the company needs to start reporting growth again.

A company’s management will always look on the positive side of things, but I think the outlook commentary in the FY24 first-half result was positive.

In the first seven weeks of the second half of FY24, total network sales were up 3.7% with same-store sales growth (SSS) of 3%, with ANZ seeing same-store sales growth of 8.4%.

If the company can deliver an overall compound annual growth rate (CAGR) of SSS of at least 3% over the long term, I think its organic growth will be solid and help propel the business higher.

Domino’s said its new organisational structure is delivering increased efficiencies and savings for the network.

The company’s established markets “continue to identify new approaches to add incremental customers, and are continually working to add new occasions and growing existing day parts.”

Large long-term goals

The business has confirmed its long-term network store goals, which could be invaluable for boosting the Domino’s share price in the future.

It wants to reach 3,000 Asian stores by 2033, which would be roughly doubling the store count from here.

Domino’s has a goal of 1,200 stores by 2028, which would be 1.3 times its current size.

For the European market, Domino’s wants to get to 2,900 stores by 2033, which would be a doubling of the size of the current network.

Overall, the company is aiming for 7,100 stores by 2033, which would be 1.9 times its current size.

Domino’s said store expansion is important to the growth of franchise partners and to the ASX share, but relies on improved unit economics.

It would be quite logical for a doubling of the network size to at least double the Domino’s share price. Operational leverage can lead to profit rising faster than revenue and network growth.

Profit projection

The broker UBS thinks Domino’s can roughly double its earnings per share (EPS) between now and FY28. Forecasts that far away shouldn’t be relied on closely, but they give a general idea of the direction profit could go.

If Domino’s can achieve the forecast FY28 profit, the Domino’s share price is valued at 16 times FY28’s estimated earnings.

It could take longer than FY28 for the business to get back to $160, but it doesn’t need to get back to that level to do well. A doubling of the share price in five years would be a very commendable return. At this lower valuation, after the declines, I think it could be a longer-term turnaround opportunity.

The post Can the Domino’s share price ever get back to $161? appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
• Here’s how the ASX 200 market sectors stacked up last week
• Here are the top 10 ASX 200 shares today
• 6 ASX 200 shares with ex-dividend dates next week
• What’s going so wrong for ASX 200 shares on Friday?

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 positions in and has recommended Domino’s Pizza Enterprises. The Motley Fool Australia has recommended Domino’s Pizza Enterprises. 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 you looking for some new additions to your income portfolio? If you are, then keep reading.

That’s because listed below are three ASX 200 dividend giants that brokers have recently named as buys and tipped to offer generous dividend yields.

Here’s what you need to know:

BHP Group Ltd (ASX: BHP)

This mining behemoth could be in the buy zone according to analysts at Goldman Sachs.

In response to its half-year results last month, the broker retained its buy rating with a $49.40 price target. This suggests material upside for investors thanks to a recent pullback in its share price.

In respect to dividends, the broker is now forecasting fully franked dividends of approximately US$1.45 per share (A$2.21 per share) in FY 2024 and then US$1.28 per share (A$1.95 per share) in FY 2025. Based on the current BHP share price of $42.41, this equates to yields of 5.2% and 4.6%, respectively.

Telstra Group Ltd (ASX: TLS)

Another ASX 200 dividend giant that could be a buy is telco Telstra.

Goldman Sachs is also a fan of the company and has a buy and $4.55 price target on its shares. Much like BHP shares, this implies material upside for investors because of recent weakness in its share price.

And also like BHP, the broker is expecting attractive yields from its shares. It is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.83, this equates to fully franked yields of 4.7% and 5%, respectively.

Woodside Energy Group Ltd (ASX: WDS)

A final ASX 200 dividend share that analysts think could be in the buy zone right now is Woodside Energy.

Morgans is positive on the company and recently put an add rating and $34.20 price target on its shares.

Its analysts are also expecting some decent dividend yields from Woodside’s shares in the near term. Morgans is forecasting the energy giant to pay a fully franked dividend of $1.36 per share in FY 2024 and then $1.12 per share in FY 2025. Based on the current Woodside share price of $29.86, this equates to 4.5% and 3.75% dividend yields, respectively, for investors.

The post Buy Woodside shares and these ASX 200 dividend giants now appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
• Buying 350 Woodside shares in an empty investment portfolio would give me a $760 income in year one
• Top brokers name 3 ASX shares to buy next week
• 5 oversold ASX shares to buy in March 2024
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Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. 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 Telstra 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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The Origin Energy Ltd (ASX: ORG) stock price has climbed 14% in three months. That compares to a 3.3% rise for the S&P/ASX 200 Index (ASX: XJO).

Despite the company’s rise, some people believe the ASX energy share can keep climbing.

The Origin Energy stock price has suffered in the last three months of 2023 after the takeover attempt by Brookfield was denied by shareholders, including AustralianSuper.

More gains to come?

AustralianSuper built a large stake in the business and was influential in blocking the takeover going ahead.

Some investors were focused on the issue of the environment – would the planet be better off if Origin was under the control of Brookfield or remained a listed business? AustralianSuper’s CEO Paul Schroder was quoted by The Australian saying the following:

We had some really good engagement with (Origin). But I do want to call out some behaviour which was despicable.

For people to say that funds who have one view or another were either ‘wreckers’
of the environment or not, or some other spurious kinds of things that were talked
about.

We’re investors, we think it’s a great company with great assets and good management. We think it’s worth more. That’s it.

AustralianSuper is convinced that Origin will play a “significant role” in the energy transition.

It may cost many billions to get Australia to net zero over the decades, but Origin could be one of the key contributors.

Schroder then said:

I think we (AustralianSuper) and Brookfield think exactly the same about how
much it’s worth, and they just had a view about how much they could get it for,
basically.

We have a very strong conviction about the future of that company.

How valuable is Origin Energy stock?

Ultimately, it’s up to each investor to decide what the ASX energy share is worth.

Brookfield was trying to buy Origin for $9.39 per share. That’s currently 3% higher than where it is right now, which isn’t much of a possible rise, though AustralianSuper thinks it’s worth more.

According to the estimates on Commsec, the Origin Energy stock price could be valued at just 11 times FY25’s estimated earnings.

The business will need to balance profitability with investing in renewable energy. There’s a large opportunity for big players, but I think there are a number of other ASX shares that aren’t as capital-intensive and more attractive.

The post Is Origin Energy stock ‘worth more’? appeared first on The Motley Fool Australia.

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• Here’s how the ASX 200 market sectors stacked up last week
• Why Appen, Aussie Broadband, Core Lithium, and Westpac shares are dropping today
• Why Arafura, Bubs, Clinuvel, and Superloop shares are racing higher today
• Why are Superloop shares jumping 34% and Aussie Broadband shares sinking 25%?
• Key takeouts for ASX shares this earnings season: CBA analysis

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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Commonwealth Bank of Australia (ASX: CBA) shares are a popular option for investors, with the banking giant featuring in millions of portfolios across the country.

In fact, almost half of Australia owns CBA shares either directly or indirectly. When commenting on its dividend last month, the bank said:

We have increased our dividend payout ratio, improving shareholder returns and benefitting more than 12 million Australians who own CBA shares either directly or through their superannuation holdings.

So, it’s fair to say that the performance of the bank’s shares has a major impact on the wealth of the nation.

But has that impact been good or bad since the start of the year? Let’s take a look at what a $5,000 investment at the end of 2023 would have turned into today.

$5,000 invested in CBA shares

Firstly, this big four bank’s shares ended last year trading at $111.80.

This means that for an investment of $5,031, I could have picked up 45 shares in the bank.

Unfortunately, the banking sector came under pressure last week, which has dragged CBA and the rest of the big four down from 52-week highs or better.

For example, the CBA share price hit a record high of $121.55 on 8 March. At that point, my 45 shares would have been worth $5,469.75. That an impressive return of 8.7% or approximately $440 in the space of two and a bit months.

But following the pullback, the bank’s shares are now fetching $115.54. This gives my holding a market value of $5,199.30, which restricts the return to 3.3% or approximately $170.

Don’t forget the dividends

But wait, there’s more on the way. While I can’t say what the CBA share price will do in the next couple of weeks, I can predict with certainty an impending pay check.

When the bank released its results last month, it declared a fully franked interim dividend of $2.15 per share. That is due to be paid to eligible shareholders at the end of the month on 28 March.

My 45 CBA shares will provide me with an income boost of $96.75 in dividends on pay day.

Overall, not a bad little earner for investors in 2024. Here’s hoping the remainder of 2024 will be just as fruitful for its 12 million shareholders.

The post If I’d put $5,000 in CBA shares at the start of 2024, here’s what I’d have now appeared first on The Motley Fool Australia.

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• Why are ASX investors so obsessed with dividends?
• What’s going so wrong for ASX 200 shares on Friday?
• If you’d put $1m into shares vs property at the start of COVID, how much would you have now?
• Buyer beware! Why Macquarie just downgraded the big four ASX 200 banks
• How much could a $300,000 ASX share portfolio pay in dividends?

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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Gold Road Resources Ltd (ASX: GOR) shares could offer major upside potential from current levels.

That’s the view of analysts at Goldman Sachs, which believe the ASX 200 gold stock is undervalued at current levels.

What is Goldman saying about this ASX 200 gold stock?

Goldman highlights that the company’s operations have been hit by inclement weather.

And while this is likely to mean production that is below the market’s expectations, it will still be in line with the broker’s estimates. It explains:

GOR have announced that substantial rainfall has resulted in the closure of roads that provide access to Gruyere and the suspension of mining operations over a portion of this period, with the likely resumption of open pit access expected next week. March quarterly gold production is anticipated to be in the range of 68-73koz (100% basis), broadly in line with GSe (~73koz) but below Visible Alpha Consensus (~81koz).

In addition, Goldman feels that the ASX 200 gold miner’s full year production guidance is conservative. It adds:

CY24 production guidance is unchanged at 300-330koz (GSe 325koz, VA Consensus ~319-343koz) which we continue to see as conservative on the timing of ramping up the third pebble crusher and improvement in mining labour conditions, where GOR have also noted mining contractor MACA has been successful in the recruitment of labour to support the ongoing expansion of mining rates with the workforce now at desired levels (and total material movement rates ramped up to targeted annualised daily rates prior to the significant rain event).

Major upside potential

Goldman currently has a buy rating and $1.95 price target on the ASX 200 gold stock.

Based on its current share price, this implies potential upside of 27% for investors over the next 12 months.

The broker highlights that Gold Road doesn’t have any major growth spending and has a strong free cash flow. Despite this, it trades at a deep discount to peers. It concludes:

Our 12m PT is A$1.95/sh, and we retain our Buy rating with GOR the only gold stock in our coverage without major growth spend, supporting cash generation (near-term FCF yields of c. 5-10% in CY24-27E remain attractive vs. peers and support upside to the outlook for capital returns), while trading at a significant discount to peers at ~0.9x NAV / ~4x NTM EV/EBITDA / pricing a LT gold price of US$1,575/oz (peer average ~1.1x NAV / 5-6x EV/EBITDA / ~US$1,930/oz LT gold).

The post This ASX 200 gold stock could rise 25%+ appeared first on The Motley Fool Australia.

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• These ASX 200 mining stocks can deliver 20%+ returns

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 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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There are plenty of ASX 300 dividend shares trading on the local share market. But which ones could offer a winning combination of big returns and generous dividend yields?

Three that have been tipped to do just that by analysts are listed below. Here’s what sort of dividend yields you can expect from them:

Orora Ltd (ASX: ORA)

The team at Goldman Sachs thinks that this packaging company could be an ASX 300 dividend share to buy. The broker currently has a buy rating and $3.40 price target on its shares. This implies potential upside of 32% for investors from current levels.

As for income, the broker expects dividends per share of 13 cents in FY 2024 and 14 cents in FY 2025. Based on the current Orora share price of $2.57, this will mean yields of 5% and 5.45%, respectively.

Rural Funds Group (ASX: RFF)

Another ASX 300 dividend share that has been named as a buy is Rural Funds. It is an agricultural property company that leases almond orchards, macadamia orchards, poultry property and infrastructure, vineyards, cattle properties, cropping properties, cattle and water rights.

Bell Potter currently has a buy rating and $2.40 price target on its shares. This suggests upside of 13% for investors.

In respect to dividends, the broker is forecasting dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.12, this will mean yields of 5.5% in both years for investors.

Transurban Group (ASX: TCL)

Finally, analysts at Citi believe that Transurban could be an ASX 300 dividend share to buy. It is a leading toll road developer and operator. Citi has a buy rating and $15.60 price target on its shares, which implies potential upside of 20% for investors.

The broker has pencilled in dividends per share of 63 cents in FY 2024 and 65 cents in FY 2025. Based on the current Transurban share price of $12.97, this will mean yields of approximately 5% in both years.

The post Buy these ASX 300 dividend shares for 10% gains and 5% yields appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Transurban Group. The Motley Fool Australia has positions in and has recommended Rural Funds Group. The Motley Fool Australia has recommended Orora. 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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Small-cap shares suffered greatly during the period of 13 interest rate rises over 2022 and 2023.

But with inflation cooling and the prospect of rate cuts coming, the little guys are starting to play catch up to the medium and large caps.

Here are three ASX “penny stocks” that I think could break out above the 80 cent barrier in the future:

‘More cleanup to be done in Australia’ than anyone can handle

The first two stocks are both related to improving the environment, which is why I think they have a bright future.

Certainly in recent years nations around the world have become more conscious of damage to the planet, and both these companies provide solutions.

Environmental Group Ltd (ASX: EGL) is best described as an engineering firm that provides technologies to combat air pollution, water pollution, and produce energy from biowaste.

A couple of years back, Marcus Today founder Marcus Padley attested that landing work would be no trouble for Environmental Group.

“There is more cleanup to be done in Australia that EGL could possibly handle,” he said.

“This is just a question of getting around the technology. It’s not a question of finding things to do.”

Both Bell Potter and Taylor Collison rate EGL shares as a strong buy currently, according to CMC Invest.

The analysts love these ASX penny stocks

Close The Loop Ltd (ASX: CLG) provides take-back and recycling solutions that enable a circular economy.

Ink and toner cartridges are a major program, with batteries, cosmetics and soft plastics in its remit.

CMC Invest shows both Shaw & Partners and Unified Capital Partners rating the stock as a strong buy.

The Motley Fool’s Tristan Harrison named it as one of the small caps he is intrigued by, as it is “growing revenue, improving margins and [has] appealing growth potential”.

“I think quality smaller companies are capable of outperforming bigger businesses over the long term because their growth runways are longer.”

Meanwhile, Mach7 Technologies Ltd (ASX: M7T) creates management systems for medical images in hospitals.

All five analysts surveyed on CMC Invest are rating the healthtech stock as a buy, so it must be heading in the right direction.

Contract wins from big hospitals will be the catalyst for Mach7 shares to break through the 80 cent mark in the future.

The post 3 ASX penny stocks I don’t think will be below 80 cents much longer appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has positions in Environmental Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Close The Loop and Mach7 Technologies. The Motley Fool Australia has recommended Close The Loop, Environmental Group, and Mach7 Technologies. 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 Friday, the S&P/ASX 200 Index (ASX: XJO) ended the week in a disappointing fashion. The benchmark index fell 0.55% to 7,670.3 points.

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

ASX 200 expected to fall again

The Australian share market looks set to fall again on Monday following a poor finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points lower. On Friday on Wall Street, the Dow Jones was down 0.5%, the S&P 500 fell 0.65%, and the Nasdaq dropped 0.95%.

Oil prices soften

ASX 200 energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued start to the week after oil prices softened on Friday night. According to Bloomberg, the WTI crude oil price was down 0.3% to US$81.04 a barrel and the Brent crude oil price was down 0.1% to US$85.34 a barrel. This couldn’t stop oil prices from recording a decent weekly gain thanks to tightening supplies.

TechnologyOne shares named as a buy

The TechnologyOne Ltd (ASX: TNE) share price could be good value according to analysts at Bell Potter. This morning, the broker has upgraded the enterprise software provider’s shares to a buy rating with an improved price target of $18.50. Bell Potter is expecting a strong result from the company in May. It said: “We see the 1HFY24 result as a potential catalyst with an expected strong result and an NRR [net revenue retention] around 115%.”

Gold price eases again

ASX 200 gold shares Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a soft start to the week after the gold price dropped again on Friday. According to CNBC, the spot gold price was down 0.4% to US$2,159.4 an ounce. This meant the precious metal recorded its first weekly decline in a month after rate cut bets started to dwindle following a hotter than expected inflation reading.

Shares going ex-dividend

A couple of ASX 200 shares are going ex-dividend this morning and could trade lower. This includes New Zealand telco Chorus Ltd (ASX: CNU) and investment platform provider Hub24 Ltd (ASX: HUB). They will be paying their eligible shareholders dividends of 15.2 cents per share and 18.5 cents per share, respectively, next month. Both have advised of payment dates of 16 April.

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

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More reading

• Buying 350 Woodside shares in an empty investment portfolio would give me a $760 income in year one
• Here’s how the ASX 200 market sectors stacked up last week
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• Here are the top 10 ASX 200 shares today
• 6 ASX 200 shares with ex-dividend dates next week

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Hub24 and Technology One. The Motley Fool Australia has recommended Hub24 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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It’s another busy week ahead for ASX shares.

Here is eToro market analyst Josh Gilbert’s take on the three biggest developments that investors should be looking out for:

1. RBA interest rate decision

Here we go again. 

Mortgage holders, businesses and investors alike will all be on high alert 2:30pm Tuesday to see what the Reserve Bank of Australia will do with interest rates.

Gilbert’s thinking another hold is likely.

“The data that the RBA has received this year, especially inflation data at the end of February, has reinforced that the board is done hiking. 

“However, there may not be enough evidence just yet for Michele Bullock to pivot to an easing bias.”

There’s no doubt consumers are struggling from the cost of living, but the RBA’s priority is to tame inflation, as that will cause longer term damage.

“Markets still see June as the first meeting when the RBA is likely to cut interest rates for the first time in 2024,” said Gilbert.

“This meeting will be the last meeting until May, and before then, the RBA will receive a wealth of data, including February and March monthly inflation indicators, as well as the all-important Q1 figure.”

2. US interest rate decision

The RBA’s American counterpart, the US Federal Reserve, will also make a call on their rates this week.

Inflation is proving stubborn across the Pacific too, but Gilbert said financial markets are still pricing in a rate cut in June.

“That’s because the [latest] reading showed good news on services inflation — an area of inflation Jerome Powell has fretted over in recent times.”

The big worry for stock investors is that the Fed will adopt a “higher for longer” stance.

“Given that rates are highly likely to stay on hold next week, the focus shifts to Jerome Powell’s comments, and I wouldn’t be surprised to see some pushback, which could put the US stock rally on ice.”

Gilbert added that the central bank would also update its growth projections this week, which includes metrics like “gross domestic product growth, unemployment, interest rates and inflation”.

3. Australia unemployment

The latest jobless numbers are due out on Thursday, which follows a two-year high of 4.1% last month.

“Demand for workers is falling, with Australia’s ANZ-Indeed job advertisements report showing ads were down 12.4% year-over-year in February and down 2.8% from January 2024.”

Gilbert reckons the unemployment rate will stay the same this time, but could grow to 4.3% by the last quarter of this year.

It’s all a delicate balancing act for the Reserve Bank.

“The growing unemployment rate remains one of the key drivers for the RBA to cut rates in the middle of the year. 

“However, a jump in employment outside of the RBA’s projection of 4.3% may be a slight worry for the RBA and would be a huge dent in consumer confidence if it continues to move at the same speed.”

The post 3 things ASX investors should watch this week appeared first on The Motley Fool Australia.

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More reading

• 2 ASX ETFs that have made investors rich
• Buying 350 Woodside shares in an empty investment portfolio would give me a $760 income in year one
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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 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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