The stock market this week is waiting eagerly for Australia’s latest inflation figures.

If it comes down more than what the Reserve Bank last forecast, then consumers, businesses and investors alike will breathe a sigh of relief.

That’s because the chances of an interest rate pause next week will firm considerably.

However, there are just some ASX shares that are well set for future gains regardless of what economic manoeuvring happens over the next few days.

They have their own thing going on.

Here are three such examples that experts are recommending to buy right now:

Overnight fame after 112 years of anonymity

Pharmaceutical wholesaler Sigma Healthcare Ltd (ASX: SIG) was hardly a household name for ordinary investors for much of its 112-year-old existence.

That all changed last month when it announced it would merge with ubiquitous retail chain Chemist Warehouse.

In just a fortnight, the Sigma share price jumped more than 50%.

Morgans investment advisor Jabin Hallihan reckons it’s not too late to get a piece of this action.

“A merge will create a healthcare wholesaler, distributor and retail pharmacy franchisor,” Hallihan told The Bull.

“The proposed merger may unlock significant efficiencies and generate cost synergies.”

Remembering that the reverse listing is pending regulatory approval, Hallihan is calling Sigma a buy.

“We suggest it may be a good time for investors to start building a position in Sigma Healthcare. The merger prospects support our recommendation.”

93% drop? No worries at all

In contrast, the Firefly Metals Ltd (ASX: FFM) share price has remained flat since completing its corporate deal in December.

Argonaut dealer Harrison Massey apparently isn’t too worried.

“FireFly, formerly known as AuTECO Minerals, completed the acquisition of the Green Bay Copper-Gold project in Newfoundland, Canada, in October 2023. 

“The asset includes a significant ready-to-go underground copper deposit, which, in our view, offers considerable upscale potential amid a history of high-grade copper production.”

The deal also included existing infrastructure.

“The recent resource is 39.2 million tonnes at 1.83% copper and 0.5 grams a tonne of gold.”

It seems he’s not the only one bullish on Firefly.

According to CMC Invest, three other trading houses also rate the stock as a strong buy.

The ASX shares going at ‘a significant discount”

Fellow miner South32 Ltd (ASX: S32) has also had its issues with its valuation.

The stock has lost 28.8% over the last 12 months, and recorded a 6.6% drop over the past fortnight.

Hallihan attributed this to “a soft operational result in the 2023 December quarter”, but is still bullish on the multinational resources company over the longer run.

“We believe the share price was recently trading at a significant discount to its valuation,” he said.

“We expect a stronger performance to follow an anticipated recovery in Chinese and global growth and metal prices.”

He has plenty of peers that agree, with 10 out of 15 analysts currently recommending South32 as a buy, as surveyed on CMC Invest.

The post ‘Start building a position’: 3 ASX shares to pounce on right now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Goldman Sachs says these ASX 200 mining shares can rise 20%+
• South32 share price falls after disappointing December update
• 2 ASX healthcare shares with ‘significant growth opportunities’
• The 8 ASX mining stocks Goldman Sachs says are buys in 2024

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.

from The Motley Fool Australia https://ift.tt/EB3Nep5

On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decent gain. The benchmark index rose 0.3% to 7,578.4 points.

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

ASX 200 expected to rise

The Australian share market is expected to rise on Tuesday following a good start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 9 points or 0.1% higher. In late trade in the United States, the Dow Jones is up 0.1%, the S&P 500 is up 0.25%, and the NASDAQ is 0.55% higher.

Megaport update

The Megaport Ltd (ASX: MP1) share price will be on watch today when the elasticity connectivity and network services interconnection provider releases its quarterly update. During the first quarter, Megaport reported 36% growth in its annual recurring revenue. The market may be expecting more strong growth today. In addition, all eyes will be on its guidance for FY 2024. It is guiding to revenue of $190 million to $195 million and EBITDA of $51 million to $57 million.

Oil prices tumble

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a tough session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.8% to US$76.62 a barrel and the Brent crude oil price is down 1.6% to US$83.22 a barrel. This has been driven by concerns over the Chinese economy following the liquidation of China Evergrande.

Woolworths remains a buy

Goldman Sachs believes that investors should be snapping up Woolworths Group Ltd (ASX: WOW) shares. In response to its trading update, the broker has retained its conviction buy rating with a new $42.30 price target. Its analysts believe management’s guidance means “a strong result especially given moderating inflation and increasing competition.”

Gold price rises

ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) look set to have a good session after the gold price rose overnight. According to CNBC, the spot gold price is up 0.4% to US$2,025.6 an ounce. Rising tensions in the Middle East boosted the safe haven asset.

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• Could this be jump-starting ASX energy shares today?
• Leading brokers name 3 ASX shares to buy today
• Woolworths share price falls on $1.5b impairment news
• This ASX 300 stock is my favourite way to invest in Australian farmland

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Megaport. The Motley Fool Australia has recommended Megaport. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/ELftyb3

Vanguard Australian Shares Index ETF (ASX: VAS) is the biggest ASX-listed exchange-traded fund (ETF), but is it the cheapest?

Vanguard is one of the world’s largest asset managers. It’s not trying to make big profits, the owners of the business are the investors themselves. It passes the ‘profits’ onto investors by lowering the investment costs as low as it can.

The VAS ETF has an incredibly low annual management fee of just 0.07%. This was reduced from 0.10% on 3 July 2023, so VAS ETF investors are getting an even better deal.

Vanguard Australian Shares Index ETF gives investors exposure to the S&P/ASX 300 Index (ASX: XKO), which is an index of 300 of the biggest businesses including BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA) and CSL Ltd (ASX: CSL).

Other very cheap ASX-focused ETFs

Different diversified ASX ETFs have a different number of holdings, with some holding 200 businesses and some owning 300.

The BetaShares Australia 200 ETF (ASX: A200) is invested in 200 ASX shares and it has an annual management fee of 0.04%, which was cut from 0.07% on 22 February 2023. That’s even cheaper than the VAS ETF.

SPDR S&P/ASX 200 (ASX: STW) is invested in 200 ASX shares and it has an annual management fee of 0.05%, which was reduced from 0.13% per annum on 1 November 2023. This one is also cheaper than VAS ETF.

iShares Core S&P/ASX 200 ETF (ASX: IOZ) is invested in 200 ASX shares and it has an annual management fee of 0.05%. This ETF is cheaper than Vanguard’s offering as well.

It seems all of these actually have cheaper annual management fees than Vanguard.

Not even the cheapest Vanguard offering

Vanguard has many different investment funds for investors to choose from.

If investors are looking for the cheapest management fees, then Vanguard US Total Market Shares Index ETF (ASX: VTS) has an incredibly low fee of just 0.03% per annum.

The strength of US businesses and global earnings would make me want to invest in the VTS ETF over the VAS ETF for the long term.

The post How do the Vanguard Australian Shares Index ETF (VAS) fees compare to other ASX ETFs? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• In a record year for ETFs growth, this ASX crypto fund returned 215%
• How much does Vanguard Australian Shares Index ETF (VAS) pay in dividends?
• 3 no-brainer ASX 300 shares I’d buy right now without hesitation
• How I’d build a backup superannuation fund with $10,000 and 5 ASX shares
• I’m buying cheap ASX shares to build my wealth in 2024 and beyond

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

from The Motley Fool Australia https://ift.tt/WtCFHL5

Warren Buffett is one of the world’s greatest investors, and he has created enormous wealth for himself and numerous others thanks to his company, Berkshire Hathaway.

But he’s not recommending that investors buy Berkshire Hathaway shares. Instead, he suggests people (including his wife) should invest in a particular fund.

Buffett thinks that a low-cost S&P 500 Index (SP: .INX) exchange-traded fund (ETF) is the way to go for lots of investors. On the ASX, investors can choose the iShares S&P 500 ETF (ASX: IVV) to get exposure.

What’s attractive about the investment?

Warren Buffett reportedly once said:

Consistently buy an S&P 500 low-cost index fund. I think it’s the thing that makes the most sense practically all of the time. Keep buying it through thick and thin, and especially through thin.

The temptation when you see bad headlines in newspapers is to say, well, maybe I should skip a year or something. Just keep buying.

American business is going to do fine over time, so you know the investment universe is going to do very well.

For Buffett, low cost is a key advantage of these sorts of ETFs:

Costs really matter in investments. If returns are going to be seven or eight percent and you’re paying one percent for fees, that makes an enormous difference in how much money you’re going to have in retirement.

The iShares S&P 500 ETF has an annual management fee of 0.04%, which is one of the cheapest ETFs on the ASX. A fee of just 0.04% is almost nothing, leaving nearly all of the investment returns in the hands of the investor. There aren’t any performance fees either.

I’ll also point out that this investment gives investors strong diversification. It owns holdings in 500 companies, which is a very good number. These 500 aren’t just random businesses. They are 500 of the biggest and most profitable companies in the world, many of which have a global earnings base.

The biggest positions in the S&P 500 include names like Microsoft, Apple, Nvidia, Amazon.com, Alphabet, Meta Platforms and Warren Buffett’s Berkshire Hathaway itself.

Past performance is not a guarantee of future performance

The names in the portfolio sometimes change, but the long-term performance has been very good, thanks to the strength of the S&P 500.

Over the past decade, the IVV ETF has returned an average of 14.9%, though there’s no guarantee the next few years will be as good as that, though central banks lowering interest rates may help. I can see why Warren Buffett likes it so much.

The post Why Warren Buffett thinks most people should invest in ETFs like this one appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 of the best ASX ETFs to buy now

Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Nvidia, and iShares S&P 500 ETF. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Berkshire Hathaway, Meta Platforms, Nvidia, and iShares S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/2UAE1KS

When many Australians read of passive income, they picture a wealthy celebrity lying on a banana lounge drinking cocktails while royalty cheques fly into their account.

But the fact is that earning money for nothing is well within the reach of ordinary Aussies.

It just requires careful research, ASX dividend shares, compounding, and patience.

It doesn’t require any special talent that is uniquely possessed by the chosen few.

Let’s explore some hypotheticals:

Aim for 10% each year

ASX investors are fortunate enough to have franking rules that incentivise capital returns via fat dividends, because not every developed country has such a mechanism.

This means that there are quality stocks available that provide very comfortable dividend yields to fast-track you to passive income.

Take Woodside Energy Group Ltd (ASX: WDS), Growthpoint Properties Australia Ltd (ASX: GOZ), and Accent Group Ltd (ASX: AX1) for example.

Playing in the energy, real estate, and retail sectors, they are a well diversified bunch who pay out excellent yields — respectively 10.9% fully franked, 8.9% unfranked, and 8.25% fully franked.

All three are well managed businesses in their fields who command the respect of many professional investors.

CMC Invest shows that 7 out of 12, three of five, and five of 11 analysts rate Woodside, Growthpoint and Accent shares as buys right now.

Combined with franking credits and capital growth, it is not out of the question for a portfolio of such dividend stocks to be collecting 10% compound annual growth rate (CAGR) in the long run.

Reinvest early for rewards later

For argument’s sake, let’s say you can start with a portfolio worth $40,000, which comparison site Finder found last year is the average savings level for Australians.

Then you add $100 each week — or, rounded down, $400 each month.

Initially, every time dividends are paid out, reinvest it straight back into the portfolio. If some of the stocks have dividend reinvestment plans (DRPs), then even better.

If this nest egg can keep up 10% CAGR for 10 years, you’ll end up with $180,249 of dividend stocks.

From then on, stop reinvesting the dividends.

Instead, put it in your pocket as your new source of passive income.

That’s $18,000 landing in your account each year, or $1,500 monthly.

You can then lie on a banana lounge drinking cocktails.

The post How investing $100 per week can create $1,500 in annual ASX dividend income appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Could this be jump-starting ASX energy shares today?
• Why Bapcor, Domino’s, Santana Minerals, and Woodside shares are charging higher
• 5 things to watch on the ASX 200 on Monday
• Santos share price rises on $2.3 billion revenue from ‘challenging year’
• Here’s why I invested in Accent shares for dividend income

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 recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/es28Fcm

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Could this be jump-starting ASX energy shares today?
• Here’s why the Bapcor share price is popping 6% today
• Why Bapcor, Domino’s, Santana Minerals, and Woodside shares are charging higher
• This ASX 300 stock is my favourite way to invest in Australian farmland
• Are ASX growth shares back? How these fundies delivered over 20% upside in 2023

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 Life360 and Megaport. The Motley Fool Australia has positions in and has recommended Smartgroup. The Motley Fool Australia has recommended Bapcor, Megaport, and Orora. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/AWFPUkZ

If you own shares in Pilbara Minerals Ltd (ASX: PLS), chances are you’re feeling a little despondent right now.

This leading ASX 200 lithium stock has had a rough few months, to put it politely. At $3.63 a share today (at the time of writing), the company is down 27.4% from the $5 a share levels we were seeing this time last year. Pilbara has also lost more than 30% since August. And that’s despite the 11% share price rebound we’ve seen over the past week or so.

But of course, Pilbara shareholders would be used to some healthy volatility by now. After all, this is a company that has bounced between $3.20 a share and $5.43 in just the past 12 months.

The company’s recent woes can probably mostly be attributed to the recent slump in lithium prices that have sapped ASX investors’ confidence in most lithium shares. As we covered just last week, Pilbara’s most recent quarterly update revealed that the company has had to endure a 50% decline in the prices it has been able to realise for its lithium products.

This has also led to speculation that Pilbara will have to cut its freshly-instated dividend. Last year, investors were delighted with Pilbara’s maiden interim and final dividends, which added up to a 2023 total of 25 cents per share. However, fears that this might turn out to be a flash in the pan have probably dented investor confidence as well.

So with all of that in mind, it’s not much of a surprise to see Pilbara’s shares cropping up on the list of the ASX’s most short-sold stocks in recent weeks (including this week).

Have we found a bottom for Pilbara Minerals shares?

However, not everyone is bearish on Pilbara Minerals shares as we get going with 2024. In fact, one fund manager still names Pilbara as one of its major holdings.

As reported in the Australian Financial Review (AFR) this week, Tim Carleton and Will Mumford of Auscap’s Long Short Australian Equities Fund remain exceptionally bullish on Pilbara Minerals shares.

A quick check of the fund’s January newsletter tells us that Pilbara remains comfortably within the fund’s current (as of 31 December) top 20 stock picks.

Carleton told the AFR that it was “the fund’s strict focus on quality operations that has the portfolio managers unperturbed by the short interest [in Pilbara stock]. Here are some more of his remarks:

We’ve been very pleased with them – just look how disciplined they look. They’ve been keeping all that cash on the balance sheet, recognising the cycle was going to be volatile… They’re in a remarkable position … and there’s a pretty strong chance that their Pilgangoora operation [in Western Australia] becomes the lowest-cost lithium mine in the world.

No doubt Pilbara investors will be delighted with that assessment. But, as always, only time will tell if Carleton is on the money with Pilbara.

The post ‘Remarkable position’: Why Pilbara Minerals shares are still a top pick appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• These are the 10 most shorted ASX shares
• If I invested $10,000 into Pilbara Minerals shares 10 years ago, I would have…
• Here’s what Bell Potter is saying about the Pilbara Minerals share price
• Here are the top 10 ASX 200 shares today
• Is the Pilbara Minerals’ interim dividend at risk of being axed?

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.

from The Motley Fool Australia https://ift.tt/zwXqDx3

It’s been a decent few months for the CSL Ltd (ASX: CSL) share price on the ASX. Back in October 2023, CSL shares hit a new 52-week (and four-year) low of $228.65. 

But today, those same shares are going for $293.42 at the time of writing. That’s up 0.15% for the day thus far, and up almost 30% from that October low.

Even so, CSL’s medium-term share price performance is probably leaving investors wanting a little more.

As we discussed the week before last, CSL shares have been stuck in a rut for a while now. The ASX 200 healthcare stock last hit an all-time high (around $340 a share) back in early 2020.

But in the now four years since that time, CSL hasn’t even gotten close to that high watermark. Indeed, as of today’s pricing, CSL shares remain down by almost 13% from that early 2020 high. See all of that for yourself below:

However, perhaps 2024 will finally be the year that the CSL share price gets back to its old groove. Hopeful investors have 13 February next month circled on their calendars. Not just because it’s pre-Valentine’s Day, but because that’s when CSL reveals its next earnings report.

Yep, CSL is scheduled to deliver its half-year results for the six months to 31 December 2023 on 13 February. And investors are no doubt hoping they get an early visit from Cupid’s arrow.

Of course, we can’t know what CSL will pull out of its hat next month until we hear from the company itself.

ASX brokers rate CSL shares as a buy

Saying that though, there are a few ASX brokers who reckon CSL and its share price are primed for a good year this year.

Earlier this month, we covered the views of ASX broker Morgan Stanley. Morgan Stanley is expecting big things from CSL this year. It currently has an overweight rating on the company, along with a 12-month share price target of $334. Not quite at CSL’s all-time high, but probably close enough for comfort.

The broker also highlighted its positive outlook on CSL’s plasma collection market. If Morgan Stanley is on the money here, we could well see this quantified in CSL’s earnings next month.

But it’s not just Morgan Stanley. We’ve also recently gone over fellow broker Morgans’ views on the healthcare giant. Morgans also has an add rating on the CSL share price right now. This broker’s 12-month share price target currently sits at $328.20.

As such, while we won’t fully know if CSL’s upcoming earnings will give investors enough confidence to send its shares back to $300 and beyond, these ASX brokers certainly seem to be expecting some big things.

The post Are CSL shares set for an earnings boost? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Are ASX blue-chip shares actually safe investments?
• Top brokers name 3 ASX shares to buy next week
• 3 no-brainer ASX stocks I’d buy before a bull run
• Top brokers name 3 ASX shares to buy today
• Is now the right time to buy CSL shares? Here’s my take

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

from The Motley Fool Australia https://ift.tt/mDJBlSn

I believe investing in ASX stocks is one of the best things we can do for our finances over the long term. But, just like buying anything, we need to pay a price for the assets we buy.

Many questions arise when considering the price to buy a stock at. Is today’s price a good one? Does it even matter? Thus, let’s discuss whether it matters what value we buy ASX stocks at.

The purchase price is a key part of returns

Making a positive return is the most important thing with investing, otherwise we may as well just have kept the money in a bank account. Of course, we can’t know which investments are going to do well, and volatility is likely to appear every so often.

If we bought an ASX stock a year ago at a share price of $10 and it’s now $11, that’s a return of 10%. But if we bought at $12 and it was now $11, that’d be a decline of close to 8%. It’s the same ending price but produces quite different returns.

The returns can seem even more dramatic if we buy at times when the share market plunges. Imagine we’d invested in that business if it had sunk to $6 (perhaps in 2022) – getting back to $11 would translate into a return of 83%.

That’s also why investors need to be careful about paying extremely high prices for a business because it reduces the likelihood of making a good return.

So, in terms of ASX stock returns, the price does matter.

This reminds me of a particular saying – price is what you pay, value is what you get.

Don’t try to time the market?

There are plenty of good reasons why investors don’t need to try to pick the best price. For starters, we don’t know what prices are going to do. If we knew what prices were going to do, investing would be so easy! There’s no need to stress too much about it.

Plus, even if prices do go lower, we don’t know if that’s the bottom or not. I’d rather make sure I invest at a good price than try to wait for an even better price. I’d rather not miss out on a bargain!

With diversified investments like an exchange-traded fund (ETF), I think we can be less price-specific because there are so many underlying businesses with different valuations. For example, I’d happily invest in the Vanguard MSCI Index International Shares ETF (ASX: VGS) on a monthly basis, without trying to pick and choose which days to buy. As new winners emerge, they can help push up the unit price of an ETF.

Over the long-term, if we invest in the right ASX stocks (at a reasonable price), it shouldn’t matter too much if we buy at last month’s price or next month’s price – over the years, they should be able to deliver good performance. But, it’s impossible to know what’s going to happen without a crystal ball.

The post Does it matter what price I buy ASX stocks at? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Are CSL shares set for an earnings boost?
• Is the Domino’s share price a buy after its plunge?
• After soaring 15% in 2023, what’s ahead for the gold price in 2024?
• Could this be jump-starting ASX energy shares today?
• Why Boss Energy, Calix, Frontier Digital, and Gold Road shares are falling today

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

from The Motley Fool Australia https://ift.tt/Hd9hGLb

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price has plunged 30% compared to a year ago. Is this a great opportunity to invest in the stock, or is there worse to come?

It’s impossible to say what’s going to happen next without my crystal ball, which isn’t working at the moment. The Domino’s share price could fall further and/or the upcoming results could show a deterioration of profitability. But, things could also get better.

The recent business update triggered the Domino’s share price decline. Domino’s reported an 11% rise in ANZ network sales in the FY24 first half compared to the FY23 second half, while Asian network sales fell 1%.

Domino’s blamed Japanese network sales going backwards as a key negative factor, referring to the number of corporate stores in that market. Net profit before tax is expected to be between $87 million to $90 million, which is below HY23, but above the FY23 second half.  

It said while franchisee partners in ANZ and Europe are improving average unit economics, there is more work to do. Improvements are required in the FY24 second half to grow order volumes. Domino’s advised any previous guidance for its FY24 performance is “no longer in effect”.

Is the Domino’s share price an opportunity?

The broker UBS Is pessimistic about the situation and has a sell rating on the business because of a few reasons.

First, it’s another announcement that was below expectations, which isn’t a good sign.

Second, there are concerns that ANZ’s improvement is “less able” to be translated into other high store growth markets, particularly Asia and France, though Germany’s performance is “pleasing”.

The third reason is that franchisee profitability is improving but not as quickly as expected, “which places risk on the rate of store growth (or the long-term Domino’s EBIT margins)”.

Finally, UBS also referred to “elevated valuation multiples”.

Based on Domino’s share price, UBS thinks the company is valued at 28 times FY24’s estimated earnings.

But, it does have a price target of $42, implying a possible small rise over the next 12 months.

Any positives?

UBS isn’t loving the short-term outlook for the company, but it is still expecting the business to stage a profit recovery in the long term.

The broker is expecting Domino’s to report an FY24 EBIT margin of 9%. But, this could rise to 10.7% in FY25, 12.2% in FY26, 13.2% in FY27 and 13.8% in FY28.

Domino’s is also expected by UBS to see growing revenue in each of these financial years. Earnings per share (EPS) could be $1.43 in FY24, $1.75 in FY25 and $2.10 in FY26.

This would put the Domino’s share price at 19 times FY26’s estimated earnings. Of course, these numbers are just forecasts. Forecasts can be wrong – the profit could be worse (or better) than expected.

Store numbers may not grow as quickly as investors (or the company) were previously thinking, but the company still has compelling intentions. The strength in the German market is exciting because of what a large market that is.

With the Domino’s share price now much lower, I think it’s at a much more appealing price which could enable it to deliver outperformance from here. While it’s unlikely to be an uneventful journey from here, I think Domino’s shares could deliver outperformance in the next three to five years, particularly if the business can improve profit margins.

The post Is the Domino’s share price a buy after its plunge? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why Bapcor, Domino’s, Santana Minerals, and Woodside shares are charging higher
• Why Block, Domino’s, IDP Education, and Sayona Mining shares are sinking like stones today
• Why are Domino’s shares sinking 22% today?
• 5 things to watch on the ASX 200 on Thursday
• Domino’s stock: buy, sell or hold?

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

from The Motley Fool Australia https://ift.tt/Q3U1VnW