• These super-strong ASX 200 blue chip shares that could deliver 20% returns

    Having a few ASX 200 blue chip shares in your portfolio is often a very good idea.

    That’s because blue chips are usually established companies with strong business models and positive long-term outlooks. This can make them a great foundation to build out a portfolio from.

    But which ones offer strong returns for investors over the next 12 months?

    Two that brokers are tipping to rise meaningfully from current levels are listed below. Here’s what they are saying about these strong shares:

    ResMed Inc (ASX: RMD)

    Over at Morgans, its analysts believe that the ResMed could be an ASX 200 blue chip share to buy.

    The broker currently has an add rating and $32.82 price target on its shares. This suggests potential upside of almost 20%. Its analysts commented:

    While weight loss drugs have grabbed headlines and investor attention, we see these products having little impact on the large, underserved sleep disorder breathing market, and do not view them as category killers. Although quarters are likely to remain volatile, nothing changes our view that the company remains well placed and uniquely positioned as it builds a patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

    Transurban Group (ASX: TCL)

    The team at Bell Potter thinks that this toll road operator could be a top option for investors.

    It has a buy rating and $15.90 price target on the ASX 200 blue chip share. This implies potential upside of almost 20% for investors over the next 12 month. It also expects dividend yields in the region of 5% in the coming years.

    The broker recently commented:

    We believe the current inflationary environment is favourable for Transurban given its inflation-linked revenue stream with annual escalators. Moreover, TCL provides low risk cash flows over the long term, with long concession duration (30+ years), and relative traffic/income resilience. The group’s current pipeline of growth projects is $3.3 billion (TCL’s share of total project cost) and further huge development opportunities are expected over the next few decades, supported by population and economic growth.

    The post These super-strong ASX 200 blue chip shares that could deliver 20% returns appeared first on The Motley Fool Australia.

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

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

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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

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  • Analysts have put buy ratings on these ASX dividend stocks

    Middle age caucasian man smiling confident drinking coffee at home.

    Middle age caucasian man smiling confident drinking coffee at home.

    Analysts have been busy adjusting their financial models and recommendations during earnings season this month.

    Two ASX dividend stocks that analysts remain positive on post-results releases are listed below. Here’s what they are saying about them:

    Baby Bunting Group Ltd (ASX: BBN)

    Morgans thinks investors should be sticking with this baby products retailer despite its underwhelming performance during the first half. It has retained its add rating and $2.00 price target. The broker said:

    It was a tough half for BBN, with the consumer under pressure and price competition intense. […] We’ve made no major changes to our estimates with our FY24 NPAT forecast coming down 2%. We 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. We retain an Add rating.

    Morgans expects dividends per share of 6 cents in FY 2024 and 9.8 cents in FY 2025. Based on the current Baby Bunting share price, this equates to fully franked yields of 3.7% and 6%, respectively.

    Woolworths Group Ltd (ASX: WOW)

    Analysts at Goldman Sachs think that this supermarket giant could be an ASX dividend stock to buy right now. The broker has responded to its results release by retaining its buy rating with a $40.40 price target.

    Goldman remains positive despite the negative news flow which has been weighing on its shares. It said:

    WOW reported 1H24 with +10% EBIT in AU Foods YoY the key bright spot, though this was dragged by weaker-than-expected H2 first 7 weeks AU Foods sales growth of +1.5% and further guidance of a slower EBIT growth in 2H. Additionally, the ongoing ACCC pricing inquiry and earlier-than-expected announcement of CEO Brad Banducci’s retirement weighed on the share price. Against this, we retain our positive view on WOW. […] We are Buy rated on the stock as we believe the business has among the highest consumer stickiness and loyalty among peers.

    As for income, the broker is forecasting dividends per share of $1.09 in FY 2024 and $1.17 in FY 2025. Based on its current share price, this will mean fully franked yields of 3.3% and 3.6%, respectively.

    The post Analysts have put buy ratings on these ASX dividend stocks appeared first on The Motley Fool Australia.

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

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    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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  • 1 ASX 200 dividend stock I’m buying for superior passive income in 2024

    An older couple driving in a convertible on a freeway.

    An older couple driving in a convertible on a freeway.

    Forgive me if it sounds a bit geeky, but I really enjoy researching S&P/ASX 200 Index (ASX: XJO) dividend stocks, looking for that next passive income jewel to add to my portfolio.

    While my hunt isn’t strictly limited to the ASX 200, I have found that the bigger companies tend to be less volatile. They also tend to be more reliable with their dividend payouts over time. And I prefer not to see my passive income stream take an unexpected hit.

    As I’ve mentioned before, I also lean towards stocks paying fully franked dividends. That way, I can hold onto more of those dividend payments when the ATO comes around for its pound of flesh.

    With that said, the dividend share I’ve got my eye on for passive income in 2024 is ASX 200 petroleum refiner and fuel distributor Ampol Ltd (ASX: ALD).

    Tapping Ampol for superior passive income

    Ampol reported its full 2023 calendar year results on 19 February. The Ampol share price closed up 0.8% on the day.

    Among the highlights, the ASX 200 dividend stock achieved a 2% increase in earnings before interest and tax (EBIT) from 2022 – excluding significant items – to $1.30 billion.

    Ampol also reported an all-time high total sales volume for 2023 of 28.4 billion litres, up 17% from the prior year. And while net profit after tax (NPAT) was down 25% year on year to $549 million, net borrowings also fell by more than $200 million to $2.2 billion.

    As for that passive income I’m after, Ampol declared a record final fully franked dividend of $1.80 a share, up 16% from the 2022 final dividend. Which is a trend I like to see.

    That brings the full-year dividend payout to $2.75 per share. At the recent price of $37.55 a share, that sees this ASX 200 dividend stock trading at a fully franked yield of 7.3%.

    If I’m holding shares at market close on 29 February, I’ll receive that $1.80 per share in dividends on 27 March. (Ampol trades ex-dividend on 1 March.)

    Atop this welcome passive income, the Ampol share price also appears well-placed for more gains over the coming year. (Shares are up 18% over the past 12 months.)

    Following on Ampol’s 2023 results, Macquarie raised its target price for Ampol stock by 11% to $42.50 a share. That’s more than 13% above current levels.

    The post 1 ASX 200 dividend stock I’m buying for superior passive income in 2024 appeared first on The Motley Fool Australia.

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

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

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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

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  • 5 things to watch on the ASX 200 on Friday

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

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

    On Thursday, the S&P/ASX 200 Index (ASX: XJO) carved out the smallest of gains. The benchmark index rose slightly to 7,611.2 points.

    Will the market be able to build on this on Friday and end the week on a high note? Here are five things to watch:

    ASX 200 expected to rise again

    The Australian share market looks set to end the week in a positive fashion following a stunning night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 30 points or 0.4% higher this morning. In late trade on Wall Street, the Dow Jones is up 1.4%, the S&P 500 is up 2.2%, and the NASDAQ is up 3.1%.

    Oil prices push higher

    ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a good finish to the week after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1% to US$78.65 a barrel and the Brent crude oil price is up 0.8% to US$83.73 a barrel. Signs of a tightening global crude market boosted prices.

    Bapcor results

    The Bapcor Ltd (ASX: BAP) share price will be on watch on Friday when the autoparts retailer releases its half-year results. Morgans said: “Market expecting a relatively weak result. Consensus expectations were set lower post BAP’s 1Q24 downgrade and the recent CFO departure points to ‘BTB’ targets being at risk. Despite the market already expecting a relatively weak result, we think the core business outlook remains subdued and we would prefer to see the result to ‘de-risk’ any entry into the stock.”

    Gold price edges lower

    ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a subdued session after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.1% to US$2,032.5 an ounce. Strong US economic data put pressure on the precious metal.

    Qantas remains a buy

    Qantas Airways Limited (ASX: QAN) shares are still a buy according to analysts at Goldman Sachs. In response to the release of the airline operator’s half year results, the broker has retained its buy rating with an $8.05 price target. This implies over 50% upside from current levels. It said: “Earnings cuts, but another proof point on reset earnings capacity.”

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

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

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

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. The Motley Fool Australia has recommended Bapcor. 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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  • Should you combine your superannuation with your partner?

    Elderly couple look sideways at each other in mild disagreement

    Elderly couple look sideways at each other in mild disagreement

    It’s a tricky question that couples might find themselves asking each other after years of living together and working alongside one another: should we combine our superannuation accounts?

    By law, almost everyone who holds a job in Australia – certainly almost every Australian citizen – is required to receive superannuation. And if they are to do so, they’ll need a superannuation account.

    So when we shack up with our life partners, chances are that both parties will already have a super fund each.

    Combining super funds may seem like a logical step for any couple approaching retirement age. But today, let’s discuss some pros and cons of joining super forces.

    Should you combine your superannuation fund with your partner?

    Well, the single largest pro of combining your superannuation with your partner would be the reduction in fees and costs one of you will pay. Instead of two sets of fees and costs coming out of your super fund every year, you’ll only have to pay one set.

    Some components of the fees you’ll pay for super are proportional (that is, you’ll pay a percentage of whatever funds you have invested). But others are fixed fees. So in most cases, combining super will reduce the overall costs both partners will pay.

    This is obviously an advantage, particularly if you are combining into a single self-managed super fund (SMSF).

    Speaking of SMSFs, pooling your funds together in a self-managed fund could open up the potential to invest in assets that neither partner could afford on their own. This could be investment properties or other large investments.

    Another benefit might come from unifying your investment strategy. If one partner has their super invested in a growth option, but the other instead has opted for a conservative approach, this could lead to divergent financial outcomes.

    Having both partners’ funds invested in the same products could well lead to a better outcome for all.

    What about the drawbacks?

    But of course, combining super funds might not be the best idea for all couples. There are a few reasons why.

    Firstly, combining super is probably going to work better if both partners are of a similar age. but if there is a large disparity between the two parties, it could lead to some complications.

    Let’s say a couple has 12 years between them. If one was approaching the age of 65 and wished to move into more conservative assets, it might cripple the investment potential of the other partner, who still might be more than a decade away from retirement.

    Spending the last ten years of your career investing your super into ultra-conservative assets could have a big impact on the quality of life you’ll enjoy when you’re both finally ready to hang up the work boots.

    Then there’s the uncomfortable topic of separation or divorce.

    Hopefully, both parties that decide to combine their super funds have committed to a life together.  But if things go pear-shaped (which is always a possibility), then unwinding a merged super fun that you have with your partner could be a nightmare.

    It could even result in court dates and lots of legal fees if things get really nasty. So anyone considering this path would do well to keep in mind the devilish hassle of unscrambling your nest eggs if things between you and your partner go south.

    Foolish takeaway

    Like many things in investing — and, indeed, life — merging your super funds with that of your partner has both upsides and potential downsides. At the end of the day, the right choice will depend on your own personal circumstances, as well as the advice of your tax professional or financial adviser.

    The post Should you combine your superannuation with your partner? appeared first on The Motley Fool Australia.

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

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

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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  • 2 cheap ASX stocks that offer more than 8% dividend yields

    An oil refinery worker stands in front of an oil rig with his arms crossed and a smile on his face as the Woodside share price climbs todayAn oil refinery worker stands in front of an oil rig with his arms crossed and a smile on his face as the Woodside share price climbs today

    The ASX is fortunate enough to host many quality stocks that offer high dividend yields by international standards.

    That’s no accident. 

    Australia’s rules that allow investors to reduce their income tax liability if the company has already paid corporate tax on dividends encourages this situation.

    So which are some of the bargains offering more than 8% yield at the moment?

    Here are two that have caught my eye:

    40% discount to what the assets are worth

    Growthpoint Properties Australia Ltd (ASX: GOZ), which is a real estate investment trust (REIT) that owns industrial and office properties, reported its latest results on Thursday.

    High interest rates and the uncertainty in workers returning to the office are admittedly keeping the stock down, having lost 28.4% over the past year.

    But that gives it plenty of cyclical upside. The stock is now trading at an almost 40% discount to its net tangible assets.

    So buying Growthpoint shares now means you’re effectively becoming a landlord for far cheaper than if you bought those properties directly.

    The depressed valuation also provides those willing to dive in now with a sensational dividend yield.

    After Thursday’s announcement of a 9.65 cent distribution per share, the total payout for the last 12 months becomes 20.35 cents.

    That equates to a yield of 8.85%.

    A cheap stock paying 11% yield

    A riskier proposition, but potentially more rewarding, is Woodside Energy Group Ltd (ASX: WDS).

    After a 12.2% drop in the share price over the past year, Woodside’s dividend yield now stands at a monstrous 11.1%.

    Of course, the caveat here is that the fortunes for an ASX energy stock like Woodside is highly dependent on global oil prices.

    If that plunges over the next year then the company may reduce the dividend.

    Conversely, if the global crude prices rise then both the Woodside stock price and distribution payments could rocket.

    A survey of professional investors on CMC Invest suggests many are comfortable with buying Woodside shares right now.

    Eight out of 15 analysts rate the energy stock as a buy, while only three recommend selling.

    The post 2 cheap ASX stocks that offer more than 8% dividend yields appeared first on The Motley Fool Australia.

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

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

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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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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  • Here are the top 10 ASX 200 shares today

    A young man in a city street with a hopeful look on his face.

    A young man in a city street with a hopeful look on his face.

    The S&P/ASX 200 Index (ASX: XJO) turned a corner this Thursday and recorded its first day of gains, if only just, since Monday’s session.

    By the time trading wrapped up today, the ASX 200 had risen by 0.037% up to 7,611.2 points, despite spending time in both positive and negative territory during intra-day trading.

    This mild performance for ASX shares this Thursday follows a similar night of trading over on the US markets.

    The Dow Jones Industrial Average Index (DJX: .DJI) also spent time in both camps but ended up falling over the line and rising 0.13%.

    The Nasdaq Composite Index (NASDAQ: .IXIC) went the other way though, dropping by 0.32%.

    But back to the ASX now, so let’s check out how the various ASX sectors handled today’s trading.

    Winners and losers

    We had a bit of a mixed bag amongst the different ASX sectors this Thursday.

    Leading the losers was the consumer discretionary sector. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) had a pretty nasty day, tanking by 0.66%.

    Also on the nose were communications stocks. The S&P/ASX 200 Communication Services Index (ASX: XTJ) closed 0.57% lower today.

    Financial shares weren’t in a good mood either, as you can see from the S&P/ASX 200 Financials Index (ASX: XFJ)’s retreat of 0.22%.

    Real estate investment trusts (REITs) again round out the losers list. The S&P/ASX 200 A-REIT Index (ASX: XPJ) had a fairly average day, slipping by 0.08%.

    Turning now to the winning sectors, these were led by utilities shares. The S&P/ASX 200 Utilities Index (ASX: XUJ) had a wonderful day, putting on a solid 2.01%.

    Energy stocks were also on fire, evidenced by the S&P/ASX 200 Energy Index (ASX: XEJ)’s rise of 0.52%.

    ASX tech shares were close behind, with the S&P/ASX 200 Information Technology Index (ASX: XIJ) shooting up by 0.44%.

    Then we had industrials stocks. The S&P/ASX 200 Industrials Index (ASX: XNJ) was another bright spot, lifting by 0.39%.

    Healthcare shares had a top day as well, illustrated by the S&P/ASX 200 Healthcare Index (ASX: XHJ)’s increase of 0.27%.

    Mining stocks followed healthcare, with the S&P/ASX 200 Materials Index (ASX: XMJ) rising by 0.23%.

    Consumer staples shares recovered slightly from yesterday’s cratering. The S&P/ASX 200 Consumer Staples Index (ASX: XSJ) vaulted 0.14% higher by the closing bell.

    Finally, gold stocks had a mildly confident day. The All Ordinaries Gold Index (ASX: XGD) ended up inching 0.08% upward.

    Top 10 ASX 200 shares countdown

    Today’s top stock turned out to be fund manager Insignia Financial Ltd (ASX: IFL).

    Insignia shares had a rollicking day, surging 13.72% up to $2.57 a share. This move follows the release of what was obviously a very pleasing set of earnings results this morning.

    Here’s how the rest of today’s winners turned out:

    ASX-listed company Share price Price change
    Insignia Financial Ltd (ASX: IFL) $2.57 13.72%
    Bega Cheese Ltd (ASX: BGA) $4.01 12.96%
    Lovisa Holdings Ltd (ASX: LOV) $27.30 10.39%
    Fletcher Building Ltd (ASX: FBU) $3.61 8.41%
    Domino’s Pizza Enterprises Ltd (ASX: DMP) $43.62 7.70%
    Ventia Services Group Ltd (ASX: VNT) $3.70 5.41%
    Weebit Nano Ltd (ASX: WBT) $4.15 5.33%
    CSR Ltd (ASX: CSR) $8.36 5.16%
    Megaport Ltd (ASX: MP1) $13.76 4.01%
    Sandfire Resources Ltd (ASX: SFR) $7.62 3.81%

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

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

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

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

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of 10 November 2023

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    Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises, Lovisa, and Megaport. The Motley Fool Australia has recommended Domino’s Pizza Enterprises, Lovisa, and Megaport. 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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  • Goldman Sachs says these ASX growth shares are destined for big things

    A woman holds a tape measure against a wall painted with the word BIG, indicating a surge in gowth shares

    A woman holds a tape measure against a wall painted with the word BIG, indicating a surge in gowth shares

    If you want some ASX growth shares to supercharge your portfolio, then it could be worth checking out the two named below.

    Here’s why analysts at Goldman Sachs are tipping them as buys this month:

    IDP Education Ltd (ASX: IEL)

    This language testing and student placement company’s shares could be in the buy zone according to analysts at Goldman Sachs. The broker responded to its half-year results by retaining its buy rating with a $26.60 price target.

    It believes the company is well-positioned for long-term growth thanks to structural tailwinds and its dominant market position. It said:

    We believe IEL’s premium valuation is justified given the medium-term earnings potential driven by: (1) Structural growth in multi-destination placements, supplemented by an ongoing Australian recovery; (2) Ability to grow market share in the highly fragmented Canadian and UK SP markets; (3) Reinvestment in digital capabilities to increase competitive moat and generate new earnings streams.

    NextDC Ltd (ASX: NXT)

    Another ASX growth share that Goldman Sachs is feeling positive on is data centre operator NextDC. It currently has buy rating and $16.60 price target on its shares.

    The broker believes NextDC is positioned to deliver rapid growth in the coming years thanks to cloud adoption. And with its shares trading at a discount to peers, Goldman believes now is a great time to pounce on them. It said:

    We are particularly positive on NXT and are Buy rated given the rapid growth in cloud adoption, which has been supported by the continued evolution of the enterprise telecommunications market, and the significant demand by both public and private investors for digital infrastructure assets. We believe the company has a compelling growth profile and a proven and profitable business model, noting it trades on a growth-adjusted discount vs. peers, which we view as unjustified.

    The post Goldman Sachs says these ASX growth shares are destined for big things appeared first on The Motley Fool Australia.

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    *Returns as of 10 November 2023

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    Motley Fool contributor James Mickleboro has positions in Nextdc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Idp Education. The Motley Fool Australia has recommended Idp Education. 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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  • Northern Star share price dulls despite record $702 million cash earnings

    A young woman holds onto her crown as another moves to take it, indicating rival ASX sharesA young woman holds onto her crown as another moves to take it, indicating rival ASX shares

    The Northern Star Resources Ltd (ASX: NST) share price is ending the day slightly lower after polishing up its latest half-year result.

    Shares in the gold miner finished Thursday 0.8% lower at $13.06. Still, it could have been worse, given the share price reached a 3.6% intraday low of $12.70 before retracing.

    Golden result fails to excite the Northern Star share price

    • Revenue up 15% to A$2,248 million
    • Gold sales relatively flat at 780,785 ounces versus 773,243 in the prior first half
    • Underlying EBITDA up 41% to A$889 million
    • Cash earnings up 50% to a record A$702 million
    • Record interim unfranked dividend of 15 cents per share, up 36%

    What happened in the first half?

    Australia’s biggest gold miner by market capitalisation generated a 50% increase in cash earnings in the half year ended 31 December 2023. The sizeable strengthening of profits is attributable to a 14% jump in the average realised gold price between reporting periods — rising from $2,513 per ounce to $2,873 per ounce.

    The price of gold has held steady around record levels for months now. Currently hovering around A$3,100 an ounce, people are still flocking to the precious metal amid uncertain monetary policy and geopolitical tensions.

    On 21 November last year, Northern Star provided an exploration update. As per the update, drilling more than 130,000 metres yielded discoveries across the company’s various projects, extending “organic growth optionality across all three production centres”.

    The Northern Star share price has trended higher since this update, lifting 9%, as shown below.

    What did management say?

    Commenting on the result, Northern Star managing director Stuart Tonkin said:

    This interim result is a glimpse of the cash-generating potential that our business is positioned for on a sustainable basis as we reach the halfway mark of our low-risk, five-year profitable growth strategy.

    The highlight of our strong half was the performance of the Kalgoorlie Production Centre, which contributed more than half of the Group’s EBITDA and record EBITDA margins of 44% as our largest asset – KCGM – began a new era of mining high-grade Golden Pike North material.

    What about FY24 guidance?

    The company reiterated its previously set guidance for FY2024. Notably, this includes an expected skew towards the second half being stronger. Gold sales are slated to total somewhere between 1.6 million to 1.7 million ounces.

    Elsewhere, Northern Star pencilled its expectations on the cost and investments side for FY24 — a ‘key focus’ for the company as cost pressures persist. The following guidance was given:

    • All-in sustaining costs between $1,730 to $1,790 per ounce
    • Growth capital expenditure between $1.15 billion to $1.25 billion
    • Exploration expenses of $150 million

    Northern Star share price snapshot

    The glimmer of gold has helped the Northern Star share price outperform the S&P/ASX 200 Index (ASX: XJO) by 18% over the last year.

    While the capital growth beats the benchmark, how does it stack up on an income basis? Considering today’s declared dividend, Northern Star offers a yield of 2.3% compared to the top 200’s 3.8% passive flow.

    The post Northern Star share price dulls despite record $702 million cash earnings appeared first on The Motley Fool Australia.

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    *Returns as of 10 November 2023

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

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  • Morgans names 3 ASX stocks to buy following results

    Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices

    Two male ASX 200 analysts stand in an office looking at various computer screens showing share prices

    Analysts have been working overtime this month, adjusting their financial models and recommendations to reflect the release of results.

    Three ASX stocks that have fared well with analysts at Morgans are listed below. Here’s what the broker is saying about them:

    Camplify Holdings Ltd (ASX: CHL)

    This recreational vehicles digital marketplace platform provider could be an ASX stock to buy according to Morgans. It has responded to its half-year results by retaining its add rating and $2.85 price target.

    Although the market didn’t like the result, the broker remains positive. It said:

    The stock closed down ~17% on result day, which we largely attribute to some seasonality in CHL’s key headline metrics (future bookings, gross margins, etc). We make several cost and margin assumption changes over the forecast period (details below). Our price target remains unchanged and we maintain an Add recommendation on the stock.

    Corporate Travel Management Ltd (ASX: CTD)

    Another ASX stock that was sold off following its results release is this corporate travel specialist. Morgans has responded by holding firm with its add rating but trimming its price target to $20.65.

    While disappointed with its guidance downgrade, it believes it is worth sticking with the company. The broker said:

    The quantum of the earnings downgrade is clearly disappointing. Given the aggressive pivot in earnings guidance from the AGM last year, the market may take time to rebuild its confidence in the outlook. However, if CTD delivers even close to its five-year strategy, the share price will be materially higher in time. We maintain an Add rating with a new price target.

    Sonic Healthcare Ltd (ASX: SHL)

    Finally, Morgans is a fan of this ASX healthcare stock and has retained its add rating with a $34.05 price target.

    Although Sonic’s result was “mixed”, Morgans believes its turnaround targets are achievable. It said:

    Uniquely, right-sizing for rapidly declining Covid-19 testing revenues (-90%) has combined with recent acquisition costs, pressuring margins and profitability. However, management remains confident in a turnaround, outlining numerous near/medium term drivers supporting underlying profitability and reflected in guidance, which we view as achievable.

    The post Morgans names 3 ASX stocks to buy following results appeared first on The Motley Fool Australia.

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

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    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Corporate Travel Management. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Camplify. The Motley Fool Australia has recommended Camplify, Corporate Travel Management, and Sonic Healthcare. 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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