It was an exceptional day for the Block Inc (ASX: SQ2) stock price on Tuesday. The S&P/ASX 200 Index (ASX: XJO) did record a mild gain of 0.11%. But Block shares surged by an impressive 3.33%.

The US-based tech company even closed at a new 52-week high of $124.88 a share.

Block’s gains over recent months have been nothing short of extraordinary. It was only in October last year that the company formerly known as Square hit a new 52-week (and ASX record) low of $60.56. That means ASX investors have now enjoyed a whopping gain of over 105% in just a few months.

So for the investors who are looking on with envy, could Block stock still be worth a buy at this new 52-week high?

Block is an interesting case in my view. I agree with my Fool colleague Tony that although investors have enjoyed some massive gains in recent months, the shares still look cheap compared to where they have traded in the past.

Despite the triple-digit gain since late October, the company is still down by more than 27% since its ASX debut back in early 2022, when it replaced the old Afterpay (which is now part of Block).

The Block share price also only has a (still decent) 15% or so gain to boast of over the past 12 months.

But does it remain at good value today?

Is the Block share price one of the best ASX stocks to buy now?

Well, I think there are signs that it is. I’ve been impressed with the company’s recent cost-cutting drive. As well as the continuing growth of its flagship Cash App in the United States and internationally.

However, some other branches of Block’s business model give me pause. Block CEO Jack Dorsey is a well-known advocate of increased cryptocurrency use. Under his watch, the company has made several large bets on a bright future for cryptocurrencies like Bitcoin (CRYPTO: BTC). Bitcoin may be enjoying some time in the sun right now, but long-term observers would note that interest in this arena has been highly volatile in the past.

I’m also still not convinced of the long-term profitability of buy now, pay later (BNPL) services like Afterpay. I think Block grossly overpaid for Afterpay when it bought the company in 2022 for US$29 billion.

It would have probably saved a good chunk of that buying price if it waited another few months. Afterpay may still be growing in use. But in my view, we’re a long way off the BNPL service becoming a cash cow for Block.

So I think the Block share price could be a buy today for anyone who understands this business well, and has a bullish view of both BNPL and cryptocurrencies. It certainly has a lot of things going for it. But it remains an investment that I’m not tempted by right now.

The post Block share price hits new 52-week high. So, is SQ2 a best stock to buy now? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why 4DMedical, Block, Judo, and Mesoblast shares are pushing higher today
• Up 93% since October, why are Block shares marching ahead again on Friday?
• 6 ASX shares to buy and hold until the next leap year
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Sebastian Bowen has positions in Bitcoin. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin and Block. The Motley Fool Australia has positions in and has recommended Bitcoin and Block. 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 ASX dividend stocks to buy?

If you are, then it could be worth looking at the two listed below that are leaders in their fields and have recently been named as buys.

Here’s what you need to know about them:

Aurizon Holdings Ltd (ASX: AZJ)

The first ASX dividend stock that could be a buy is Aurizon. It is Australia’s largest rail freight operator, moving coal, iron ore, agricultural freight, and more across the country.

Ord Minnett is feeling very positive about the company. In response to its half-year results, the broker has put an accumulate rating and $4.70 price target on its shares.

As for dividends, the broker is forecasting partially franked dividends of 17.8 cents per share in FY 2024 and then 24.3 cents per share in FY 2025.

Based on the latest Aurizon share price of $3.95, this will mean yields of 4.5% and 6.15%, respectively.

Baby Bunting Group Ltd (ASX: BBN)

Another ASX dividend stock that could be a buy is Baby Bunting. It is Australia’s largest specialty maternity and baby goods retailer.

Its performance has been a touch underwhelming in recent times but the team at Morgans think it is worth sticking with the company. This is because its analysts “continue to believe BBN will grow earnings in FY25 as its simpler price architecture and greater focus on value start to drive the top line.”

Morgans has an add rating and $2.00 price target on its shares.

As for income, the broker is forecasting fully franked dividends per share of 6 cents in FY 2024 and then 9.8 cents in FY 2025. Based on the current Baby Bunting share price of $1.73, this will mean dividend yields of 3.5% and 5.7%, respectively.

The post 2 ASX dividend stocks that are market leaders to buy now appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 dividend shares that analysts love
• 25 ASX 200 shares with ex-dividend dates next week
• Want big income? Buy these high-yield ASX dividend shares
• Analysts have put buy ratings on these ASX dividend stocks
• Why Baby Bunting, Humm, Liontown, and Star shares are sinking today

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 recommended Aurizon. 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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Telstra Group Ltd (ASX: TLS) shares have been out of form this year.

So much so, they are trading within a whisker of their 52-week low of $3.75.

One leading broker that believes investors should be taking advantage of this weakness is Bell Potter.

What did the broker say about Telstra shares?

In response to recent declines, the broker believes that the company’s shares are “starting to look reasonable value.”

As a result, it has upgraded them from a hold rating to a buy rating with a $4.25 price target.

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

In addition to this upside, the broker is forecasting a growing stream of dividends from the telco giant’s shares.

It has pencilled in fully franked dividends per share of 18 cents in FY 2024, 19 cents in FY 2025, and 20 cents in FY 2026. If this proves accurate, it will mean dividend yields of 4.75%, 5%, and 5.3%, respectively.

This means a potential 12-month total return of approximately 17% for any investors buying its shares at current levels.

Lack of catalysts but low risk

Bell Potter acknowledges that there are few potential catalysts to support a re-rating for Telstra shares in the near term. However, it feels Telstra makes up for this with its low risk growth. It explains:

In our view Telstra is starting to look reasonable value trading on an FY25 PE ratio of <20x while the average of other reasonable comps in the S&P/ASX 20 is now c.23x. Admittedly the growth outlook for Telstra is not as good as for some of the comps (e.g. Aristocrat, CSL and Goodman Group all have forecast double digit EPS growth in FY25) but Telstra still has reasonable growth (mid to high single digit forecast EPS growth in FY25) plus a good dividend yield (forecast 5.0% fully franked in FY25) and the option of selling part or all of its Infrastructure business (which in our view would unlock value and drive more of a sum-of-the-parts valuation).

There is perhaps a lack of catalysts to drive a re-rate of the multiple up towards the average of the peers but on the flip side there is little risk in our view of the company not achieving its FY24 guidance which implies or suggests a better H2 result relative to H1.

The post Here’s why this broker just upgraded Telstra shares appeared first on The Motley Fool Australia.

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More reading

• Is Telstra stock a buy right now?
• 3 ASX dividend shares to buy with ~5% yields for an income boost
• Long-term investing: 3 top ASX stocks you can buy for under $20 a share
• Top ASX passive income shares to buy in March 2024
• 3 key numbers for the Telstra share price that I think are being overlooked

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Goodman Group. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended CSL and 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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The Appen Ltd (ASX: APX) share price will be one to watch very closely on Wednesday.

The artificial intelligence data services provider’s shares rocketed 30% higher to $1.08 on Tuesday before being thrown into a trading halt.

Appen’s shares are now expected to return to trade this morning after the company responded to a price query from the Australian stock exchange.

What’s going on with the Appen share price?

Investors were scrambling to buy the beaten down tech stock yesterday amid speculation that it could be a takeover target.

Appen responded to the speculation after the market close and revealed that it has indeed received a takeover proposal.

However, any investors buying shares yesterday might be disappointed to learn that the price that has been offered is notably lower than the current Appen share price.

According to the release, Appen has received a highly conditional, confidential, non-binding, indicative proposal from Innodata Inc (NASDAQ: INOD) that contemplates offer consideration of A$0.70 worth of Innodata shares per Appen share.

While this was a 100% premium to the Appen share price at the time, it is now a 35% discount to where it trades today.

What’s next?

The company revealed that its board is currently seeking to understand the potential value to Appen shareholders from the proposed combination. It has agreed to a limited exchange of non-public information on both businesses to occur on a non-exclusive basis.

As things stand, it has made no determination as to whether the indicative consideration proposed by Innodata would be acceptable. It has also warned that there is no certainty that the indicative proposal will result in a binding proposal for Appen.

The Appen share price remains down 55% over the last 12 months despite yesterday’s jump.

The post Appen share price on watch following takeover offer appeared first on The Motley Fool Australia.

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More reading

• Big news about to drop: Appen share price put on ice following 41% surge
• Appen share price tumbles amid ongoing losses for the ASX AI stock
• Guess which beaten-up ASX 300 tech stock is rocketing 15% today

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 Appen. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re on the lookout for a combination of strong gains and a big dividend yield, then Super Retail Group Ltd (ASX: SUL) shares could be the answer.

That’s the view of analysts at Morgans, which are feeling very positive about the ASX 200 retail stock.

Why is Super Retail an ASX 200 retail stock to buy?

According to a note from last month, the broker was pleased with the company’s performance during the first half of FY 2024. It said:

The strength of Super Retail Group’s (SUL) portfolio was apparent in a strong 1H24 result in which sales increased 3% despite cycling strong comps.

The broker also highlights that the company is outperforming the competition, such as fellow ASX 200 retail stock JB Hi-Fi Ltd (ASX: JBH). It adds:

In our opinion, the business is outperforming the competition across most of its retail operations as it leverages its brand equity, strong omnichannel credentials, well subscribed loyalty programmes and extensive network of stores.

The good news for income investors is that Morgans believes this outperformance will put Super Retail in a position to declare a special dividend in FY 2024. The broker explains:

PBT was down only (5)% compared, for example, with JB Hi-Fi’s (20)% decline. Although there is some work to do at rebel, in particular, we believe SUL will continue to deliver strong returns and remains likely to declare a special dividend in August.

Morgans has pencilled in fully franked dividends per share of 96 cents in FY 2024. Based on the current Super Retail share price of $14.75, this equates to a 6.5% dividend yield.

Big gains ahead

As I mentioned above, the broker is also tipping big returns from the ASX 200 retail stock.

It currently has an add rating and $17.50 price target on its shares, which implies potential upside of approximately 19% for investors.

Throw in the potential dividends and you would have a total return of over 25% if Morgans is on the money with its recommendation.

The post Guess which ASX 200 retail stock is tipped to deliver 19% upside and a 6.5% yield in 2024 appeared first on The Motley Fool Australia.

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More reading

• Why does Morgans rate these ASX dividend stocks as buys?
• Buy Coles and these ASX dividend shares next week
• Brokers name 2 ASX 200 dividend shares to buy
• Why did Super Retail shares drop after going ex-dividend?
• 5 things to watch on the ASX 200 on Wednesday

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 positions in and has recommended Super Retail Group. The Motley Fool Australia has recommended Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Tuesday, the S&P/ASX 200 Index (ASX: XJO) managed to record a small gain. The benchmark index rose 0.1% to 7,712.5 points.

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

ASX 200 expected to edge higher

The Australian share market looks set to rise again on Wednesday following a very positive session in the United States. According to the latest SPI futures, the ASX 200 is expected to open the day 13 points or 0.2% higher. In late trade on Wall Street, the Dow Jones is up 0.7%, the S&P 500 has risen 1.2%, and the Nasdaq is 1.5% higher.

Oil prices soften

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a subdued session after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.15% to US$77.81 a barrel and the Brent crude oil price is down 0.1% to US$82.12 a barrel. This appears to have been driven by rate cut doubts following the release of inflation data.

Core Lithium results

The Core Lithium Ltd (ASX: CXO) share price will be on watch today after the lithium miner released its half-year results and reported a huge loss. Core Lithium revealed revenue of $134.8 million and a loss after tax of $167.6 million. The company also announced that its CEO, Gareth Manderson, is stepping down.

Gold price tumbles

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a tough session on Wednesday after the gold price tumbled overnight. According to CNBC, the spot gold price is down 1.3% to US$2,160.4 an ounce. A hot U.S. inflation report reduced the prospects of the Federal Reserve cutting interest rates soon.

Treasury Wine gets China boost

All eyes will be on the Treasury Wine Estates Ltd (ASX: TWE) share price on Wednesday after the Chinese government revealed plans to remove its tariffs from Australian wine. Though, it has warned that the interim draft determination is not a final determination and is subject to change by MOFCOM. Treasury Wine expects a final determination in the coming weeks.

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

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More reading

• Core Lithium share price on watch amid $167m half-year loss and CEO exit
• Here are the top 10 ASX 200 shares today
• How much passive income will I get from shares vs. property?
• How Woodside shares can ‘thrive through the energy transition’
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor James Mickleboro has positions in Treasury Wine Estates and Woodside Energy Group. 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 Treasury Wine Estates. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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With the ASX 200 index recently reaching a record high, investors may not see today as being the most opportune time to make investments in ASX growth stocks.

However, that isn’t necessarily the case.

That’s because a number of high-quality companies have failed to join the ASX 200 index in its recent rally and remain down meaningfully from their highs.

But as we know, the cream always rises to the top. So, while these ASX growth stocks are out of favour at the moment, that is unlikely to be the case over the next decade.

And if history repeats itself, some very strong gains could be generated from their shares in the future.

But which high-quality shares? Three to look at are listed below:

CSL Ltd (ASX: CSL)

The first ASX growth stock to look at is biotechnology giant CSL. Over the last decade, its shares have delivered an average return of 15.5% per annum. However, due to some temporary headwinds and a disappointing clinical trial result, its shares are broadly flat since last year.

Analysts at UBS see this as a buying opportunity. Last month the broker put a buy rating and $330 price target on its shares. This implies potential upside of approximately 17%.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

This pizza chain operator has been struggling with operational mishaps and inflationary pressures recently. And while this is disappointing, these problems are only likely to be temporary and have already shown signs of easing.

It is for this reason that Morgan Stanley put an overweight rating and $68.00 price target on this ASX growth stock last month. If this price target proves accurate, it will mean a return of greater than 55% for investors.

ResMed Inc. (ASX: RMD)

A final ASX growth stock that could be a top long-term option is sleep treatment company ResMed. Its shares have rebounded strongly recently but remain down more than 20% from their 52-week high. This has been driven by concerns that weight loss wonder drugs will reduce its market opportunity.

However, Morgans doesn’t believe these drugs will have an impact on the company’s growth. As a result, it put an add rating and $32.82 price target on its shares last month. This suggests potential upside of 15%.

The post A once-in-a-decade chance to get rich buying ASX growth stocks? appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 shares to buy in the most ‘interesting’ sector right now
• How much passive income will I get from shares vs. property?
• Bell Potter names the best ASX shares to buy in March
• Why are CSL shares falling today?
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has positions in CSL, Domino’s Pizza Enterprises, and ResMed. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Domino’s Pizza Enterprises, and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended CSL and 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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With the S&P/ASX 200 Index (ASX: XJO) rocketing 13.7% since the start of November, investors need to be careful they don’t buy stocks that are overvalued.

In fact, some experts reckon there are whole sectors right now that have been pumped up way too much.

Selective picking has become paramount for stock buyers now more than ever.

SG Hiscock & Company head of equities Hamish Tadgell recently mentioned a sector that his team is looking at that’s gone unloved for years.

“Healthcare looks interesting to us,” he said Tuesday at a media briefing in Sydney.

“That [sector]’s idiosyncratic and it’s around stock stories.”

Still 16% discount to last year

Tadgell mentioned how Resmed CDI (ASX: RMD) had a tough time of it last year.

The stock for the sleep apnoea device maker fell off a cliff during the August reporting season from fears that new GLP-1 weight loss drugs could eliminate obesity around the world.

Experts, both financial and medical, said at the time those concerns were unfounded.

Although it has slowly recovered some of those losses, the ResMed share price still remains 16% below its early August peak.

That’s perhaps why Tadgell and other professionals are bullish on the healthcare stock.

Broking platform CMC Invest suggests a whopping 19 out of 26 analysts rate ResMed shares as a buy at the moment.

The ASX 200 stock that plunged despite ‘very strong result’

Pro Medicus Limited (ASX: PME) is another standout for Tadgell.

Shares for the medical imaging technology provider have been outstanding in recent times, rising more than 70% over 2023.

But the stock had a little hiccup during last month’s reporting season, dropping 13% on the day of its results.

It was all a little bit odd, considering The Motley Fool’s James Mickleboro called the numbers “a very strong result from the high-flying company”.

Revenue was up 30%, net profit was 33% higher, and it even paid out a small dividend.

This pullback could be a time to get in on a hot stock.

“The good news is that this strong growth looks set to continue,” said Mickleboro.

“Pro Medicus won four key contracts during the six months. These have a total contract value of $200 million at committed minimum exam volumes and contract terms ranging from 7 to 10 years.”

The post 2 ASX 200 shares to buy in the most ‘interesting’ sector right now appeared first on The Motley Fool Australia.

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More reading

• Bell Potter names the best ASX shares to buy in March
• Here are the top 10 ASX 200 shares today
• Up 37% from their low: Can ResMed shares keep rising?
• 3 reliable ASX shares you can buy at a discount
• Here are the top 10 ASX 200 shares today

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 Pro Medicus and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Pro Medicus. 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 growth shares that are soaring rapidly are obviously exciting and rewarding to own.

But, of course, one must always remember with reward comes risk. Not every hyper-growth stock you buy will end up a 10-bagger. Probably not even the majority of them.

If it were easy, then everyone would be doing it, and we’d all be billionaires.

But if you keep the risks in mind and do careful research then you can make some educated guesses as to which stocks will end up much higher in a few years.

Then you diversify by buying a few of these and see which ones work out.

Here are three high-growth ASX shares that I like at the moment:

A fast recovery from tough times

Megaport Ltd (ASX: MP1) is one that I sold off last August. I am embarrassed to say it’s gone from strength to strength since.

In fact, the share price has rocketed 42% since I offloaded it seven months ago.

If you go back to April last year, though, Megaport has returned a stunning 268% for its investors.

The performance is amazing, considering it was only this time last year when the chief executive resigned suddenly, and the market punished the stock.

With a new boss at the helm, the virtual networking provider has convinced investors that it’s successfully cutting costs, increasing profits and expanding its customer base.

A massive 10 out of 15 analysts covering Megaport currently rate it as a strong buy, according to broking app CMC Invest.

All up, Megaport shares are 257% higher now than they were five years ago.

ASX growth shares with all the right signals

One I’ve pleasingly held onto is Telix Pharmaceuticals Ltd (ASX: TLX).

The cancer drug company has consistently kicked goals over the last five years, showing in its share price returning an incredible 1,578% over that time.

Despite its meteoric rise, the professionals are banking on even more to come.

The analysts at Bell Potter love the Melbourne company’s recently revealed acquisition of Canadian outfit ARTMS Inc.

“The acquisition is crucial for the supply of 89Z and the pending rollout of Zircaix for renal cancer imaging,” the team said in a memo.

“Telix is validating multiple production locations for 89Zr in the US using the ARTMS core technology. The company also owns significant quantities of ultra-pure 89Y, being the raw material for production of 89Zr.”

Tellingly, all eight analysts surveyed on CMC Invest insist Telix is a buy.

Hit the jackpot 

A growth stock that’s caught my attention recently is Light & Wonder Inc CDI (ASX: LNW), which is dual-listed here and on the Nasdaq.

As a poker machine maker, the Las Vegas company is a competitor to Australia’s own Aristocrat Leisure Limited (ASX: ALL).

Light & Wonder was only listed on the ASX last May, but shares have soared 68% from its first-day price.

With a December year-end, the company revealed its 2023 results during reporting season, and its metrics were bullish:

• Revenue up 16% to $2.9 billion
• Net income turned around from a $176 million loss to $180 million gain
• Net cash from operating activities turned around from a $381 million loss to $590 million gain

All eight analysts currently surveyed on CMC Invest rate the stock as a buy.

The post 3 hypergrowth ASX shares to buy in 2024 and beyond appeared first on The Motley Fool Australia.

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More reading

• Guess which 3 ASX All Ords shares are up 60%+ in 2024
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Motley Fool contributor Tony Yoo has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Light & Wonder, Megaport, and Telix Pharmaceuticals. The Motley Fool Australia has recommended Light & Wonder, Megaport, 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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It’s a big call to say any ASX stock is a “must own”, but certainly there are some compelling shares out there worth consideration right now.

One that I think is a great candidate at the moment is US software maker Life360 Inc (ASX: 360).

The stock is on an absolute tear right now, rising a jaw-dropping 64% this year.

So what’s doing here?

Responding to market concerns

A couple of years ago, when technology and ASX growth shares were plunging from inflation fears, the management at Life360 decided to change the way it operated.

The team responded to market concerns and decided to burn less cash and focus on profitability.

The turnaround was appreciated by investors, with the latest yearly result released this month proving the climax so far.

“The highlight of the result was arguably Life360’s adjusted EBITDA. It was US$20.6 million for the year, which was comfortably ahead of its guidance range of US$12 million to US$16 million,” reported The Motley Fool’s James Mickleboro.

“While the company recorded a net loss of US$28.2 million, this was a massive US$63.5 million improvement from FY 2022.”

From its trough in June 2022, the Life360 share price has multiplied almost five times.

Amazing.

I’m not alone in my bullishness for Life360 stock

But of course, there is no point in buying these shares now if they’ve already had their run.

The great news for punters is that it may not be too late to grab a piece of Life360.

Seven out of eight analysts currently surveyed on CMC Invest are maintaining a strong buy rating for the tech stock.

The team at Goldman Sachs Group Inc (NYSE: GS) recently upgraded its share price target for Life360.

“The company is now scaling margins and earnings rapidly off a low base, with attractive unit economics and potential structural profitability tailwinds on the horizon from a reduction in effective app store fees.”

Life360 has flagged the possibility of introducing advertising into its popular smartphone app, which the Goldman Sachs analysts thought was an excellent idea. 

“Given our long-held view that Life360’s subscription business remains undervalued, we view the potential advertising upside as effectively a ‘free’ option.”

The app is now ranked 30th in the iPhone app store, and 5th in the social networking category.

“Life360’s subscription business currently trades at a discount to global subscription app peers when adjusting for its superior growth outlook.”

The post Buy alert: 4 reasons I think Life360 stock is a must-own now appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Guess which 3 ASX All Ords shares are up 60%+ in 2024
• Goldman Sachs says these ASX tech stocks are top buys
• Long-term investing: 3 top ASX stocks you can buy for under $20 a share

Motley Fool contributor Tony Yoo has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Life360. 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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