Exchange traded funds (ETFs) aren’t just good for diversifying a portfolio, they can deliver incredible market-beating returns for investors.

For example, the two ASX ETFs listed below have made its investors rich over the last five years.

Let’s see what a $50,000 investment in these ASX ETFs could have turned into:

Betashares Global Quality Leaders ETF (ASX: QLTY)

The Betashares Global Quality Leaders ETF. has been a very strong performer over the last five years.

This appears to have been driven by its focus on investing in the world’s highest quality companies (never a bad idea!).

The Betashares Global Quality Leaders ETF gives investors access to a portfolio of approximately 150 global companies (outside Australia) that rank highly on four key metrics. These metrics are return on equity, debt-to-capital, cash flow generation, and earnings stability.

At present, the fund includes global giants such as ASML, L’Oreal, Microsoft, Novo Nordisk, Nvidia, and Visa.

Over the last five years, this ASX ETF has delivered an average return of 15.9% per annum. This would have turned a $50,000 investment into approximately $104,000.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ASX ETF that has delivered very strong returns to unitholders is the VanEck Vectors Morningstar Wide Moat ETF.

This popular fund invests in a group of companies that have wide moats (sustainable competitive advantages) and fair valuations. These are qualities that legendary investor Warren Buffett searches for when he makes his investments for Berkshire Hathaway (NYSE: BRK.B).

And with Berkshire Hathaway smashing the market since 1965, it could pay to follow Buffett’s lead.

At present, its holdings include Wells Fargo, Walt Disney, Estee Lauder, Campbell Soup, Nike, and Etsy.

Over the last five years, this ASX ETF has generated an average annual return of 16.4%. This would have turned a $50,000 investment into approximately $107,000.

The post 2 ASX ETFs that have made investors rich appeared first on The Motley Fool Australia.

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More reading

• 5 ASX ETFs to buy and hold for 10 years
• 2 excellent ASX ETFs I’d buy right now
• 2 excellent ASX ETFs to buy and hold for a decade
• 5 ASX shares to buy for an effortless path to financial freedom
• 2 ASX ETFs for beginner investors to buy in March

Wells Fargo 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 ASML, Berkshire Hathaway, Etsy, Microsoft, Nike, Nvidia, Visa, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Novo Nordisk and has recommended the following options: long January 2025 $47.50 calls on Nike, long January 2026 $395 calls on Microsoft, and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended ASML, Berkshire Hathaway, Nike, Nvidia, 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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Many Australians believe passive income is a privilege that only wealthy people have access to.

But in reality it’s not.

Buying just a handful of ASX shares could start your own experience of receiving money in return for no work.

Check out this hypothetical:

Here’s what Woodside shares could provide you

Woodside Energy Group Ltd (ASX: WDS) is an Australian oil and gas producer.

Yes, the world is quite rightly trying to move away from fossil fuels. But the infrastructure necessary to generate enough power from renewable energy sources to completely take over is many years, or even decades, away.

In the meantime, a fast-growing middle class population in countries like India, China and Brazil are demanding living standards that those of us fortunate enough to be in the West have enjoyed for decades.

All this requires energy.

Up until a few months ago, the Woodside dividend yield was incredibly up in double digits. The coming April dividend has brought it down to a more sane 7.5%.

So if you have an empty portfolio and as the first move you buy 350 Woodside shares, you will have spent just a touch over $10,000.

If the company can maintain the current yield, by the end of the first year you will have pocketed about $760.

That’s your first passive income!

Patience = even larger passive income

What if you want a bigger flow of income?

Then, keep reinvesting those dividends, continue saving, and let the portfolio grow for a few years.

After 10 years of adding $200 monthly and compounding at 7.5% each year, your Woodside shares could be worth a tidy $54,769.

That means that from the 11th year, you could cash in an average of more than $4,100 of annual passive income.

That could buy you a nice holiday for your family each year that is effectively free.

The post Buying 350 Woodside shares in an empty investment portfolio would give me a $760 income in year one appeared first on The Motley Fool Australia.

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More reading

• 5 oversold ASX shares to buy in March 2024
• Here are the top 10 ASX 200 shares today
• Woodside share price slips despite oil hitting 2024 highs
• 5 things to watch on the ASX 200 on Thursday
• At $29, I think the Woodside share price could be 20% undervalued!

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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Fortescue Metals Group Ltd (ASX: FMG) shares have done very well for shareholders in recent years.

Thanks to the huge dividends, the ASX iron ore share has delivered an average return per annum of around 21% over the last three years.

There are two main areas that will impact the company’s outlook.

Iron ore

The company is one of the largest iron ore miners in the world, so changes in the iron ore price can significantly impact its profit.

The iron ore price has dropped heavily, to under US$110, after being above US$140 per tonne in January 2024. This is the lowest it has been in seven months, according to Trading Economics. That would explain the recent fall of the Fortescue share price.

Trading Economics said the fall of the iron ore price was because of subdued demand in China, due to seemingly cautious steelmakers. Trading Economics suggested the steelmakers are “hesitant to restock due to sluggish production resumption”. Steel inventory is reportedly higher than a year ago, reflecting weaker demand by users of steel.

The fall is because of subdued demand in China, as steelmakers look to be cautious and are “hesitant to restock due to sluggish production resumption”, with steel inventory higher than a year ago, reflecting “weak downstream demand”.

On top of that, the recent “National People’s Congress in China failed to provide any significant support for the property market, and a slow start to the construction season is further dampening steel demand”, according to Trading Economics.

It’s very difficult to predict what’s going to happen with the iron ore price – the last four years have shown how volatile things can be.

Commonwealth Bank of Australia (ASX: CBA) analysis suggests the iron ore price could fall below US$100 per tonne in the short term, according to reporting by the Australian Financial Review.

However, CBA also thinks the iron ore price could rebound as a result of higher infrastructure-related demand and offset the weaker property-related demand in China.

CBA is expecting the iron ore price to be between US$100 per tonne to US$110 per tonne during 2024.

However, the further into the future we go, the harder it is to predict.

The iron ore price makes a big difference to Fortescue’s profitability.

UBS suggests that Fortescue could make net profit after tax (NPAT) of US$4.9 billion in FY24, US$6.06 billion in FY25, US$4.6 billion in FY26 and US$3.8 billion in FY27.

In other words, UBS is predicting lower profit in future years amid an expected growing amount of production from Africa, which could impact the iron ore price.

Green energy

The business is working hard to create a global portfolio of energy projects that produce green hydrogen. As time goes on, this segment could have a greater impact on the Fortescue share price.

It has achieved a final investment decision on the Phoenix Hydrogen Hub in the USA, and the Gladstone PEM50 project in Queensland, Australia.

The Phoenix hydrogen hub is expected to start commercial operation in mid-2026, so within three years, the company expects to be producing green hydrogen.

The Holmaneset project is on a good course following a €204 million grant from the European Union.

Fortescue has a goal to produce 15 million tonnes of green hydrogen per annum by 2030. So, three years from now will represent roughly halfway.

The company also aims to decarbonise its mining operations by 2030, so in three years, it will need to have made roughly 50% progress towards this goal.

Valuation

Based on the UBS estimates, the Fortescue share price is valued at 7 times FY24’s estimated earnings and under 13 times FY27’s estimated earnings.

In FY24, it could pay a grossed-up dividend yield of 11.3% and 5.1% in FY27.

The post Where will Fortescue shares be in 3 years? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares at risk from the slowdown in China
• If you’d put $1m into shares vs property at the start of COVID, how much would you have now?
• How much could a $300,000 ASX share portfolio pay in dividends?
• Here’s the iron ore price forecast through to 2027
• After a rough start to 2024 these 3 ASX 200 mining stocks are looking cheap to me

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

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It has been another busy week for Australia’s top brokers. This has led to the release of a number of broker notes.

Three broker buy ratings that you might want to know more about are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Goodman Group (ASX: GMG)

According to a note out of Macquarie, its analysts have retained their outperform rating on this industrial property company’s shares with an improved price target of $34.89. The broker has been looking at the listed property sector following earnings. It was so pleased with Goodman’s performance that it has highlighted the company as a top pick in the sector. Pleasingly, it believes the company’s strong form can continues and is forecasting deliver double-digit earnings growth over the coming years. The Goodman share price ended the week at $30.86.

Liontown Resources Ltd (ASX: LTR)

A note out of Bell Potter reveals that its analysts have retained their speculative buy rating on this lithium developer’s shares with an improved price target of $1.90. This follows the announcement of a $550 million senior secured syndicated debt facility. The broker notes that this has reduced its near-term funding overhang and will see the company through to its first production and the ramp-up to 3mtpa. The Liontown share price was fetching $1.25 on Friday.

Telstra Group Ltd (ASX: TLS)

Another note out of Bell Potter reveals that its analysts have upgraded this telco giant’s shares to a buy rating with a $4.25 price target. Bell Potter made the move on valuation grounds following a period of underperformance from Telstra’s shares. It highlights that this has left them looking reasonable value trading on an FY 2025 price to earnings (PE) ratio of under 20x. Bell Potter notes that this is lower than the average multiples of other comparable companies. The Telstra share price ended the week at $3.83.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• 5 oversold ASX shares to buy in March 2024
• These ASX shares could rise 20% to 50%
• $20,000 invested in these ASX 200 shares 10 years ago is worth how much?
• Liontown share price tumbles 7% on half-year results
• Why are ASX lithium shares being annihilated on Friday?

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 Goodman Group and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group and Telstra Group. The Motley Fool Australia has recommended Goodman 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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National Australia Bank Ltd (ASX: NAB) shares have been on a tear over the past year.

That’s despite the S&P/ASX 200 Index (ASX: XJO) bank stock coming under some pressure this week following a rating downgrade for all the big four Aussie banks from Macquarie.

NAB shares notched a more than five-year closing high last Friday, 8 March, ending the day trading for $35.11 apiece.

Even after the past week’s retrace to $33.53 a share at market close this Friday, the big bank’s stock is up an impressive 21% in a year.

That handily outpaces the 10% gains posted by the ASX 200 over this same time.

And it doesn’t include the two fully franked dividends NAB delivered over the year.

Management pleased passive income investors by upping the full-year payout by more than 10% from the prior year to $1.67 a share.

That sees NAB shares trading at a fully franked trailing yield of 5.0%.

So, how are these passive income investors earning more than twice as much?

How are these passive income investors earning more from NAB shares?

Investors who swallowed their fears in the wake of the early 2020 Covid-fuelled market meltdown and bought ASX dividend shares near the lows tend to have done very well.

It’s not always easy following British banker Baron Rothschild’s famous advice to buy stocks at a bargain “when there is blood in the streets”.

And, to be sure, getting the timing right is no easy trick.

Investors who get it wrong could be buying into a stock that’s poised for further steep losses. Or they may wait too long for what they believe is the market bottom, only to find their favourite ASX 200 dividend shares charging higher before they’ve hit the buy button.

But investors who bought NAB shares on 27 March 2020, when the bank stock closed the day trading for $15.12 a share, certainly have some bragging rights.

Indeed, passive income investors who bought NAB stock on that day will be earning a fully franked yield of 11.1% from those shares.

They’ll also have enjoyed a 122% share price increase over that time!

As always, whether you’re targeting NAB shares or other leading ASX dividend stocks for passive income, be sure to do your research first.

If you’re uncomfortable with that, or simply don’t have the time, reach out for some expert advice.

The post An 11% dividend yield from NAB shares? Here’s how these brave income investors achieved it! appeared first on The Motley Fool Australia.

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More reading

• Why I might be selling my NAB stock in March
• Why are ASX investors so obsessed with dividends?
• 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 passive income will I get from shares vs. property?

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 positions in and has recommended 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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If you want to strengthen your income portfolio this month with some new additions, then it could be worth looking at the ASX dividend shares named below.

Here’s what brokers are forecasting from them:

Charter Hall Retail REIT (ASX: CQR)

The team at Citi think that Charter Hall Retail REIT could be a good option for income investors. It is a supermarket anchored neighbourhood and sub-regional shopping centre markets-focused property company.

Citi currently has a buy rating and $4.00 price target on its shares.

As for income, the broker is forecasting dividends of 28 cents per share in both FY 2024 and FY 2025. Based on the current Charter Hall Retail REIT share price of $3.58, this will mean huge yields of 7.8%.

Dexus Industria REIT (ASX: DXI)

Over at Morgans, its analysts think that Dexus Industria could be an ASX dividend share to buy.

It is a real estate investment trust that primarily invests in high quality industrial warehouses located across Sydney, Melbourne, Brisbane, Perth and Adelaide.

Morgans currently has an add rating and $3.18 price target on its shares.

In respect to dividends, the broker expects dividends per share of 16.4 cents in FY 2024 and 16.6 cents in FY 2025. Based on the current Dexus Industria share price of $3.07, this will mean dividend yields of 5.3% and 5.4%, respectively.

Endeavour Group Ltd (ASX: EDV)

Finally, Goldman Sachs thinks this drinks giant could be another ASX dividend share to buy next week.

Its analysts have a buy rating and $6.20 price target on the BWS and Dan Murphy’s owner’s shares.

As for dividends, the broker is forecasting fully franked dividends per share of 22 cents in both FY 2024 and FY 2025. Based on the current Endeavour share price of $5.24, this represents attractive dividend yields of 4.2% for investors.

The post 3 highly-rated ASX dividend shares for income investors to buy next week appeared first on The Motley Fool Australia.

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More reading

• How are ASX REITs smashing 52-week highs despite today’s market meltdown?
• Buy Woolworths and these ASX dividend shares
• Buy these ASX dividend stocks for big 5%+ yields
• 34 ASX 200 shares with ex-dividend dates next week
• 3 ASX dividend shares to buy for a passive income boost

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Endeavour 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 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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I didn’t buy Zip Co Ltd (ASX: ZIP) shares on 9 October.

But I sure wish I had.

Shares in the All Ordinaries Index (ASX: XAO) buy now, pay later (BNPL) stock have taken off over the past six months.

Here’s what’s been boosting ASX investor sentiment.

Zip shares have been rocketing

Although Zip shares remain well down from their February 2021 highs, the stock has enjoyed a remarkable rebound over the past six months.

Stock markets are often said to be forward-looking.

And while the market doesn’t always get it right, in the case of Zip shares, the steady march higher that began in October looks prescient.

Zip’s half-year results for the six months to 31 December showed increased customer engagement and boosted revenues.

Total transaction volume (TTV) for the half-year increased by 9.6% from the prior corresponding half-year to $5 billion, with TTV in Zip Americas notching a record half-year after growing by 33.3%.

Cash profits were up 45.9% year on year to $176 million. And the company’s revenue margin of 8.5% was up 1.30% year on year.

Zip CEO Cynthia Scott also painted an optimistic picture for Zip shares for the year ahead.

“We remain firmly focused on our three strategic pillars for FY24 – driving sustainable, profitable growth, product innovation and operational excellence,” she said.

Scott added, “Zip is very well-positioned to capitalise on the near and medium-term opportunities in our core markets of ANZ and the Americas and deliver greater value for our customers and merchants.”

And boom!

Now, the day before those half-year results were released on 27 February, Zip shares were already trading for 94 cents apiece.

But if I’d bought shares on 9 October, less than six months ago, I could have picked them up for 25.5 cents apiece.

Meaning my $5,000 would have netted me 19,607 Zip shares and some pocket change.

At market close on Friday, the ASX 200 BNPL stock was trading for $1.25 a share.

So, my $5,000 investment would be worth an enviable $24,508.75 today!

The post If I’d put $5,000 into Zip shares on 9 October, here’s what I’d have now! appeared first on The Motley Fool Australia.

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More reading

• Up 288% in 6 months, Zip share price tipped for more outsized gains
• Why Accent, Liontown, PSC Insurance, and Zip shares are charging higher today
• 4 ASX All Ords shares going gangbusters on Tuesday
• Guess which 3 ASX All Ords shares are up 60%+ in 2024
• 3 ASX All Ords shares rocketing over 10% today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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ASX utilities shares led the ASX 200 market sectors last week, with a 1.21% gain over the five trading days.

The S&P/ASX 200 Index (ASX: XJO) fell 0.96% over the week to finish at 7,670.3 points on Friday.

The bulk of this fall occurred on Friday with the ASX 200 sliding 0.56% due to surprising US inflation news.

The index hit an intraday low of 7,591.4 points — its lowest level in a month — before recovering in the afternoon.

Just two of the 11 market sectors finished the week in the green — ASX utilities shares and ASX REITs.

Let’s review what happened.

Utilities shares led the ASX sectors last week

There are only 22 ASX shares within the utilities sector, so it’s a pretty small piece of the ASX 200 pie.

Among the biggest utilities stocks by market capitalisation, only two stood out for gains last week.

The Origin Energy Ltd (ASX: ORG) share price lifted 2.31% to $9.07 over the five trading days.

APA Group (ASX: APA) shares rose 2.73% over the week to finish at $8.27 per share on Friday.

Neither company had any official news to offer the market this week.

The ASX real estate investment trust (REIT) sector was the only other market segment to finish in the green last week.

On Friday, a bunch of ASX REITS hit new 52-week highs, including Scentre Group (ASX: SCG) shares at $3.34 and Stockland Corporation Ltd (ASX: SGP) shares at $4.85.

Centuria Industrial REIT (ASX: CIP) shares also rose to a new annual peak of $3.59 per share.

ASX 200 market sector snapshot

Here’s how the 11 market sectors stacked up last week, according to CommSec data.

Over the five days:

S&P/ASX 200 market sector	Change last week
Utilities (ASX: XUJ)	1.21%
A-REIT (ASX: XPJ)	0.81%
Information Technology (ASX: XIJ)	(0.31%)
Consumer Staples (ASX: XSJ)	(0.6%)
Energy (ASX: XEJ)	(1.07%)
Consumer Discretionary (ASX: XDJ)	(1.07%)
Healthcare (ASX: XHJ)	(1.8%)
Communication (ASX: XTJ)	(2.12%)
Industrials (ASX: XNJ)	(2.69%)
Financials (ASX: XFJ)	(3.17%)
Materials (ASX: XMJ)	(3.36%)

The post Here’s how the ASX 200 market sectors stacked up last week appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• How are ASX REITs smashing 52-week highs despite today’s market meltdown?
• 6 ASX 200 shares with ex-dividend dates next week
• What’s going so wrong for ASX 200 shares on Friday?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Bronwyn Allen 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 Apa 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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Notwithstanding Friday’s nasty dip of 0.56%, the S&P/ASX 200 Index (ASX: XJO) is sitting just 182.8 points shy of its all-time high right now. Therefore, finding cheap ASX shares to snap up can be a tough ask!

But our Foolish writers, who live and breathe the Aussie share market, are always up for a stock-picking challenge.

So, we asked them to pop their bargain-hunting hats on and let us know which ASX shares they reckon have been unfairly sold off and now represent top buying for investors in March.

Here is what they told us:

5 cheap ASX shares for March 2024 (smallest to largest)

• Adairs Ltd (ASX: ADH), $420.51 million
• Johns Lyng Group Ltd (ASX: JLG), $1.73 billion
• IDP Education Ltd (ASX: IEL), $5.38 billion
• Telstra Group Ltd (ASX: TLS), $43.79 billion
• Woodside Energy Group Ltd (ASX: WDS) $55.33 billion

(Market capitalisations as of market close 15 March 2024).

Why our Foolish writers think these ASX stocks are bargain buys

Adairs Ltd

What it does: Adairs is an ASX 200 retail share and a brand you’ve probably seen in your local shopping centre. It sells linens, bedding, towels, furniture, and other homewares.

By Sebastian Bowen: Adairs is a company I’ve been tracking for the past few months with delight. Fresh off the lows we saw last year, investors have enjoyed some pleasing gains since November. However, the retailer is still well off its all-time highs of almost $5 a share we saw in 2021. 

I think Adairs has what it takes to get back to its former glory. The company’s finances are steadying, and dividends have resumed. I’m also encouraged by the recent management shakeup.

I wouldn’t be surprised to see the Adairs share price with a ‘$3’ at the front by the end of 2024.

Motley Fool contributor Sebastian Bowen owns shares of Adairs Ltd.

Johns Lyng Group Ltd

What it does: Johns Lyng provides construction and repair services, with work coming from insurance claims a major part of its business.

By Tony Yoo: The Johns Lyng share price has dipped around 13% since 26 February, and 32% if you go back to April 2022.

This might present an excellent buying window for a quality company that’s demonstrated an ability to grow and execute. Moreover, the nature of the business means it receives more work as extreme weather events become more frequent due to climate change.

The market was disappointed with the company’s earnings and profit coming out of reporting season. But they were not, in my opinion, signalling any chronic decline.

The company’s future outlook has major backing from the professional community, with nine out of 11 analysts currently surveyed on CMC Invest rating Johns Lyng as a buy.

Motley Fool contributor Tony Yoo owns shares of Johns Lyng Group Ltd.

IDP Education Ltd

What it does: IDP Education is a leading provider of international student placement services and high-stakes English language testing services.

By James Mickleboro: Due to concerns over student visa changes in a number of markets and the loss of its language testing monopoly in Canada, investors have been scrambling to the exits over the last 12 months. This has led to the IDP Education share price shedding around 30% of its value during this time.

I believe this presents a buying opportunity for investors, particularly given I’m confident the company will continue its strong growth in the coming years despite these challenges.

Goldman Sachs also believes this will be the case. For example, it is forecasting earnings before interest, taxes, depreciation, and amortisation (EBITDA) of $322 million in FY 2024, $352 million in FY 2025, and $404 million in FY 2026. Goldman has a buy rating and a $26.60 price target on IDP Education shares.

Motley Fool contributor James Mickleboro does not own shares of IDP Education Ltd.

Telstra Group Ltd

What it does: Telstra is the largest telecommunications business in Australia, with a leading market share in the mobile space of the market. 

By Tristan Harrison: The Telstra share price has gone backwards in recent months, but the company’s profit has been increasing. This means the price/earnings (p/e) ratio is now lower and more appealing.

I think any business that is sustainably growing its profit could present an interesting investment opportunity. Telstra is benefitting from more subscribers and a higher average revenue per user (ARPU) because of price hikes. Furthermore, the company is keeping underlying cost growth to a minimum, despite the headwinds of inflation. That combination is helping profit growth.

In FY25, Telstra is predicted (according to Commsec) to pay an annual dividend of 19 cents per share, which represents a grossed-up dividend yield of 7.1% on current pricing.

I think profit can keep rising with more subscribers, diversifying earnings (eg. Digicel Pacific, digital health and cybersecurity), and a growing number of households using 5G-powered home internet (rather than the NBN).

Motley Fool contributor Tristan Harrison does not own shares of Telstra Group Ltd.

Woodside Energy Group Ltd

What it does: Woodside is Australia’s largest independent dedicated oil and gas producer. The company has a portfolio of high-quality energy assets in Australia, the Gulf of Mexico, the Caribbean, Senegal, and Timor-Leste. Woodside continues to actively explore for new oil and gas deposits.

By Bernd Struben: The Woodside share price is down by around 22% in the last six months. Much of that selling pressure came amid a retrace in global oil and gas prices, with Brent crude now trading for US$82 per barrel.

But with global demand forecast for modest growth and OPEC+ sticking with production cuts, the US Energy Information Administration forecasts oil will top US$88 per barrel this quarter and average US$87 over 2024. The EIA also expects LNG prices to be higher than in 2023.

And with Woodside’s offshore Scarborough LNG project on track for first production in 2026, the longer-term outlook also looks solid.

Atop potential share price gains, Woodside shares trade on a fully-franked dividend yield of 7.3%.

Motley Fool contributor Bernd Struben does not own shares of Woodside Energy Group Ltd.

The post 5 oversold ASX shares to buy in March 2024 appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Woodside share price slips despite oil hitting 2024 highs
• Here’s the Telstra dividend forecast through to 2026
• What might an Optus sale mean for Telstra shares?
• 5 things to watch on the ASX 200 on Thursday

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Adairs, Goldman Sachs Group, Idp Education, and Johns Lyng Group. The Motley Fool Australia has positions in and has recommended Adairs and Telstra Group. The Motley Fool Australia has recommended Idp Education and 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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If you want to take your portfolio to the next level with some big gains, then it could be worth getting better acquainted with the ASX shares listed below.

That’s because they have been named as buys and tipped to rise 20% to 50% from current levels. Here’s what you need to know:

Bega Cheese Ltd (ASX: BGA)

This diversified food company’s shares could be undervalued according to analysts at Bell Potter.

The broker believes that the market is not appreciating the impact that forecast farmgate prices could have on its costs. Its analysts feel it could be “a game changer” and reduce Bega Cheese’s milk costs by $55 million to $60 million.

Bell Potter currently has a buy rating and $5.00 price target on its shares. This implies potential upside of 23% for investors over the next 12 months.

Corporate Travel Management Ltd (ASX: CTD)

Another ASX share that could offer big returns for investors is Corporate Travel Management. It is a corporate travel management and technology company with a global footprint.

The team at UBS believes that a recent selloff has created a buying opportunity for investors. Particularly given its belief that the company can grow at a strong rate over the coming years despite its shaky performance during the first half.

UBS has a buy rating and $21.80 price target on its shares. Based on the current share price of $17.00, this implies a potential upside of almost 30%.

Liontown Resources Ltd (ASX: LTR)

Finally, the team at Bell Potter also sees huge returns on offer with this ASX lithium share.

The broker believes that the Kathleen Valley Lithium Project is highly strategic in terms of its stage of development, long mine life, and location. As a result, it was pleased to see the near-term funding overhang reduced last week with the announcement of a $550 million senior secured syndicated debt facility.

In response, the broker has reaffirmed its speculative buy rating and lifted its price target to $1.90. Based on the current Liontown share price of $1.25, this implies potential upside of 52% for investors between now and this time next year.

The post These ASX shares could rise 20% to 50% appeared first on The Motley Fool Australia.

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More reading

• Liontown share price tumbles 7% on half-year results
• Why are ASX lithium shares being annihilated on Friday?
• Brokers name 3 ASX shares to buy now
• 5 things to watch on the ASX 200 on Friday
• Could Liontown shares really rally another 32%?

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 Corporate Travel Management. The Motley Fool Australia has recommended Corporate Travel Management. 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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