We’d all like to use ASX shares to turn $10,000 into $1 million. But most of us would struggle to pull off a gain of that magnitude. At least in any reasonable sort of time frame. So who better to turn to in this endeavour than the legendary Warren Buffett?

Hailed as one of, if not the, greatest investors of all time, Warren Buffett knows a thing or two about building wealth. After all, this is a man who is today worth more than US$100 billion.

He pulled this extraordinary feat off by harnessing the power of compound interest over decades of investing in top stocks through his company Berkshire Hathaway. Some estimates put Buffett’s overall return on investment at over 20% per annum.

While that kind of return is sadly out of the reach of most of us, especially over multiple decades, there is a way you can potentially invest in some Buffett-like stocks and bag some attractive rates of return.

It’s by using the VanEck Morningstar Wide Moat ETF (ASX: MOAT).

Last week, we discussed Warren Buffett’s investing style and how it helps him find companies that can deliver top returns. One of the central tenets of this style is finding businesses that display what’s known as an economic moat.

This moat is an invaluable asset a company can possess which helps protect its profits from competitors. This could be a strong and trusted brand, a low-cost advantage, or offering a product or service that customers have no choice but to pay for.

Looking for Buffett stocks on the ASX

Looking at Buffett’s stock picks within Berkshire Hathaway’s investment portfolio, it becomes obvious that most of his top holdings have some kind of powerful moat. Coca-Cola, American Express, Kraft Heinz and Apple own some of the best brands in the world.

Amazon is one of the cheapest places to shop in America (and increasingly in Australia). And it’s pretty hard to find a debit card that isn’t operated by Mastercard or Visa these days.

The VanEck Wide Moat exchange-traded fund (ETF) specialises in only investing in companies that indicate the presence of one or more of these moats. That’s why you’ll find names like Disney, Kellanova (Kellogg’s), Microsoft, Nike, Pfizer and Campbell Soup in its current portfolio. Not to mention Buffett’s holdings like Bank of America, Amazon and Berkshire Hathaway itself.

Now investing in this ETF doesn’t guarantee a Buffett-like return (or any return for that matter). However, this ETF has managed to return an average of 15.52% per annum since its ASX inception in 2015.

If we assume this stellar rate of return can continue indefinitely (which we shouldn’t), it would take around 30 years to turn a $10,000 investment into $1 million. That may not be enough to get rich overnight, but it’s certainly enough to fund an early retirement. Especially if you can invest a little extra along the way.

Remember, it’s taken Buffett more than 90 years to get where he is today.

The post Could I turn $10,000 into $1 million by investing in ASX shares similar to Warren Buffett’s favourite stocks? appeared first on The Motley Fool Australia.

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• Building a rock-solid base for my stock portfolio with these 3 ASX ETFs
• Which global ASX ETFs were the top performers for Aussie investors in 2023?
• 2 no-brainer ASX ETFs for investors to buy and hold
• Top ASX shares for beginner investors to buy in 2024
• 3 ASX ETFs to buy in 2024 and hold forever

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Bank of America is an advertising partner of The Ascent, a Motley Fool company. American Express is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Sebastian Bowen has positions in Amazon, American Express, Apple, Berkshire Hathaway, Coca-Cola, Kraft Heinz, Mastercard, Microsoft, Nike, VanEck Morningstar Wide Moat ETF, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Bank of America, Berkshire Hathaway, Mastercard, Microsoft, Nike, Pfizer, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Kraft Heinz and has recommended the following options: long January 2024 $47.50 calls on Coca-Cola, long January 2025 $370 calls on Mastercard, long January 2025 $47.50 calls on Nike, and short January 2025 $380 calls on Mastercard. The Motley Fool Australia has recommended Amazon, Apple, Berkshire Hathaway, Mastercard, Nike, and VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There are plenty of ASX dividend shares to choose from on the Australian share market.

Two that have been named as buys and tipped to pay above-average dividend yields are listed below.

Here’s why brokers are feeling bullish on them:

GDI Property Group Ltd (ASX: GDI)

The team at Bell Potter sees a lot of value in this property company’s shares. They currently have a buy rating and 75 cents price target on its shares.

The broker believes its shares are good value based on its double-digit, three-year earnings per share growth outlook. It said:

Despite its sector low valuation metrics, GDI offers a +10% 3yr EPS CAGR which is amongst the highest amongst our coverage while many other passive REITs are still facing CoD headwinds and declining earnings growth. With 17.5% portfolio vacancy the P&L rental risk is already on foot with limited near-term expiries which suggests en masse that there could be more earnings upside than downside risk.

As for dividends, Bell Potter is expecting the company to be in a position to pay dividends per share of 5 cents in FY 2024 and FY 2025. Based on the current GDI Property share price of 65 cents, this implies yields of 7.7% in both years.

Suncorp Group Ltd (ASX: SUN)

Over at Goldman Sachs, its analysts believe that insurance and banking giant Suncorp could be an ASX dividend share to buy. The broker has a buy rating and $15.25 price target on its shares.

It likes the company due to the tailwinds that are being experienced in the general insurance market. It explains:

We are favourably disposed to Suncorp, noting in large part the tailwinds that exist in the general insurance market – i.e., very strong renewal premium rate increases and the benefit of higher investment yields. We think the strong rate momentum that SUN is getting should likely offset volume pressures as they optimise their risk exposures in certain portfolios such as home but also likely policy lapses / buy downs.

In respect to income, the broker is forecasting fully franked dividends per share of 75 cents in FY 2024 and 80 cents in FY 2025. Based on the current Suncorp share price of $13.76, this will mean yields of 5.5% and 5.8%, respectively.

The post Brokers say these high-yield ASX dividend shares are buys appeared first on The Motley Fool Australia.

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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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On Tuesday the S&P/ASX 200 Index (ASX: XJO) had a day to forget. The benchmark index sank 1.1% to 7,414.8 points.

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

ASX 200 expected to fall again

The Australian share market looks set for another difficult session on Wednesday following a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 8 points or 0.1% lower. In late trade on Wall Street, the Dow Jones is down 0.95%, the S&P 500 has fallen 0.65%, and the Nasdaq is 0.55% lower.

Oil prices drop

It could be a subdued session for ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 0.75% to US$72.16 a barrel and the Brent crude oil price is down 0.1% to US$78.05 a barrel. A stronger US dollar offset Middle East tensions.

IDP Education shares named as a buy

Goldman Sachs thinks investors should be snapping up IDP Education Ltd (ASX: IEL) shares while they are down. According to the note, the broker has reiterated its buy rating on the language testing and student placement company’s shares with a trimmed price target of $27.60. It said: “News flow may continue to be choppy, however IEL’s fundamental quality and structural growth drivers remain intact while the company possesses levers to continue to grow earnings.”

Gold price falls

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a poor session on Wednesday after the gold price fell overnight. According to CNBC, the spot gold price is down 1% to US$2,031.3 an ounce. A stronger US dollar and hawkish US Fed comments put pressure on the gold price.

Buy Rio Tinto shares

Mining giant Rio Tinto Ltd (ASX: RIO) could be in the buy zone according to Goldman Sachs. In response to its quarterly update, the broker has retained its buy rating with a slightly trimmed price target of $140.50. It said: “RIO reported a broadly in-line 4Q23 result with iron ore shipments of 86.3Mt, +3% QoQ (vs. GSe 86.9Mt), taking full year Pilbara shipments to 332Mt vs guidance toward the top end of the 320-335Mt range.”

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

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• Why Core Lithium, Hub24, Lovisa, and Rio Tinto shares are dropping today

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group 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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Trying to work out what any share might be worth in five years’ time is a near-impossible task. And that’s no less so with ASX 200 bank stocks.

To illustrate, who would have thought back in early 2019 that Commonwealth Bank of Australia (ASX: CBA) and National Australia Bank Ltd (ASX: NAB) shares would be up 54.31% and 23.46% respectively by early 2024?

Probably the same number of people who thought Westpac Banking Corp (ASX: WBC) and ANZ Group Holdings Ltd (ASX: ANZ) shares were destined to lose 11.78% and 0.46% respectively. That is to say, hardly anyone.

So it’s an equally hard task to determine what these same big four banks might be worth in early 2029. I for one am not putting money on anything (although I do have money in one ASX 200 bank stock).

However, that doesn’t mean we can’t look at what some ASX experts are predicting will happen to the big four banks over the coming years.

ASX expert rates bank shares

One analyst who is bullish is Morgan Stanley analyst Richard Wiles. Speaking to The Australian, Wiles has recently come out and argued that forecasts of future interest rate cuts have given the banks’ stock prices a collective boost, which could last for years:

Since the start of the latest RBA tightening cycle, the average major bank P/E multiple de-rated by an average of about 3.5 PE points – from about 15.7x in April 2022 to about 12.2 times in March 2023.

But the average multiple has subsequently rebounded by more than 3 times and the banks now trade at about 15.3 times, which is above both the pre-COVID 10-yr average of about 12.2 times and post-COVID three-year average of about 14.4 times.

Wiles concluded by making this prediction:

We think the recent re-rating largely reflects the prospect of multiple rate cuts in 2024 and a more optimistic outlook for the Australian economy and banks’ earnings over the next two years.

But Wiles isn’t the only expert who sees a prosperous future for ASX bank stocks.

According to a recent article from Reuters, a report from the Boston Consulting Group has found that global bank stocks “could boost their valuations by a combined $7 trillion in the next five years”.

However, this is conditional on banks taking collective action to “pursue growth and improved price-to-book ratios despite obstacles”.

Those obstacles, the report found, revolve around banks’ profitability levels. The report concluded that “The largest driver of pessimism about the banking sector has been the significant drop in profitability”.

Even so, it’s still a positive development for bank stocks, including our own ASX big four.

It’s devilishly difficult to even ballpark where our ASX bank stocks will be by 2029. But these experts seem to think that things are looking up.

The post What will my ASX 200 bank stocks be worth in 5 years? appeared first on The Motley Fool Australia.

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• Forget savings accounts and buy these ASX dividend shares

Motley Fool contributor Sebastian Bowen has positions in National Australia Bank. 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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Would you like to generate some investment income this year?

ASX dividend shares are the obvious place to go but, as tempting as they are, investors need to be wary of high dividend yields.

Stocks that pay out 12%, 15% and 20% yields could well be in that position because its share price has fallen off a cliff.

The other worry is that such a high payout is a one-off and is not sustainable beyond a year or two.

Fortunately, the experts at the IML Equity Income Fund revealed a couple of income gems that they possess that are looking ripe for a great 2024.

They both hover around the 7% mark for yield, which is certainly respectable, but importantly the businesses have excellent prospects.

So if you have $20,000 to invest, you could consider going halves in each of these:

A foot in each revival 

With interest rates pretty close to the peak and maybe even heading this year, both real estate and retail could soon hit the boom part of its cycle.

As such, last month investors flocked to convenience retail real estate investment trust (REIT) Charter Hall Retail REIT (ASX: CQR).

“Charter Hall Retail REIT was up 18.9% on the back of lower bond yields and reconfirmation of its earnings and distribution guidance,” an IML memo to clients read.

“Also, $225 million of asset sales at book value reduced its gearing and highlighted the continued solid demand for high-quality, well located neighbourhood shopping assets.”

Charter Hall Retail is paying an unfranked 7% dividend yield.

The IML team is continuing to back the REIT for a big 2024. 

“We continue to like CQR given its large trading discount to net tangible assets, majority CPI-linked rents and attractive dividend yield.”

The ASX dividend shares that could be past the worst

The Australian casino industry has been under fire the past couple of years, and New Zealand company Skycity Entertainment Group Ltd (ASX: SKC) is no exception.

The shares dived 5.6% last month, which the IML team put down to an announcement of “modestly lower” 2024 earnings guidance and the departure of its chief executive.

“It also agreed to settle its Auckland carpark dispute on terms we believe are incrementally favourable.”

In Australia, the business is facing regulatory scrutiny.

“The Austrac settlement and Adelaide casino review remains the major overhang.”

Despite all these headwinds, the IML analysts reckon a 22.2% drop in share price since the start of September adequately reflects future adversity.

“We expect [the Adelaide review] to be completed within six months and any penalty to be more than accounted for in the share price.”

As a foreign company, the dividends from Skycity are also unfranked, but the yield does amount to a handsome 6.65% currently.

The post Here’s how I’d invest $20k in ASX shares to target a 7% dividend yield in 2024 appeared first on The Motley Fool Australia.

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• Buy these ASX 200 dividend shares with big yields
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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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While regular readers all know that diversification is the key to successful investing, it’s still fun to see those stocks that rocket rapidly and imagine what could have been.

There is a practical purpose to looking at such examples too, other than allowing us to fantasise.

Such cases show us that not every stock we pick for our portfolio has to be a winner.

In fact, that sort of expectation is unrealistic and downright dangerous. 

In most portfolios a handful of winners will do the heavy lifting to cancel out the losses and boost the overall returns.

Let’s check out one mining stock that’s gone gangbusters in the past year to demonstrate this power:

Overnight sensation

Back on 7 December 2022, Meteoric Resources NL (ASX: MEI) was a junior explorer that was literally a penny stock with its share price languishing at 1.6 cents.

But then it went into a trading halt for 11 days and all hell broke loose.

On 16 December 2022, it emerged with news that it had acquired a site in Brazil with potential to be a rare earths producer. By the end of the day Meteoric shares had almost doubled to 3.1 cents.

The project, named Caldeira, then kept putting out positive drilling results through the next 12 months.

And every tidbit has aroused the market’s interest in the now-$460 million company.

On Tuesday, Meteoric shares were trading for 24 cents.

That means that the shares have multiplied 15 times in just 13 months.

If you had invested $20,000 back in December 2022, that would now be worth an amazing $300,000.

If you take on the risk, you deserve the reward

Aside from the obvious thrill, a great benefit of repairing such a windfall is that it can make up for all the losses from your dud stock picks.

That is, if you had invested $20,000 each into 10 shares including Meteoric, the other nine could be worth $0 now and your portfolio would still be up 50%.

How crazy is that!

Of course, not everyone will be able to pick such a spectacular winner. 

But the point here is that even if 4 out of your 10 picks are in the green, they have infinite potential whereas the most you can lose from your dogs is 100%.

Also, those fortunate enough to have held Meteoric shares the last 13 months deserve the wealth they created because they took on a significant risk premium.

As each positive test results came out, the less risky the business became.

This ASX mining stock is still a buy after all that

For the record, many experts still think Meteoric Resources shares are a buy.

CMC Invest currently shows all six analysts that cover it still recommend adding it to portfolios.

Novus Capital stock broker John Edwards, who personally owns the stock, said last month that its “tenements are among the biggest and richest in the world”.

“Speculation exists that this rare earths junior is a potential takeover target,” he told The Bull.

“I have a 12-month price target of up to 50 cents a share.”

The post If you’d put $20,000 in this ASX mining stock 13 months ago, you’d have $300,000 now appeared first on The Motley Fool Australia.

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• 3 ASX mining shares hitting 52-week highs today
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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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There is no shame in acknowledging that stock-picking can feel daunting. Especially when you’re first cutting your teeth in the land of stock market lingo, much of this anxiety is linked to diversification, or lack thereof, when first getting started — a problem that can be alleviated through ASX exchange-traded funds (ETFs).

Beginners might be surprised to learn that even experienced investors often utilise ETFs in their portfolios. The convenience of adding a collection of companies through a single investment is a beautiful invention of the financial industry — enabling portfolio diversity from day one.

Known as the core-satellite investing approach, investors can reduce their overall volatility while giving themselves the chance for additional upside. The ‘core’ is formed by a majority investment in an ETF (or multiple), leaving the remaining portion of funds for actively trying to outperform the market.

Which ASX ETFs I’d buy for a robust core

Squashing home bias in one fell swoop

A common pitfall among investors is home bias — a natural tendency to allocate most of their money to companies listed in their homeland. Approximately 98% of the global share market resides outside of Australia, meaning a lot of missed opportunities if we only fish locally.

To negate this psychological one-sidedness, I’d invest in the Vanguard MSCI Index International Shares ETF (ASX: VGS). A reasonably low-cost ETF at a 0.18% management fee, Vanguard’s International Shares fund invests in around 1,500 companies from roughly 23 countries while excluding Australia.

What I appreciate about this ASX ETF is its breadth. Due to its global mandate, this ETF includes possibly some of the highest-quality companies in the world. For instance, businesses I hold in regard, including Apple Inc (NASDAQ: AAPL), Eli Lilly and Co (NYSE: LLY), ASML Holding NV (AMS: ASML), and LVMH Moet Hennessy Louis Vuitton SE (EPA: MC).

An ASX ETF packed with innovators

I’m a big fan of innovative companies, those that are on the cutting edge of technology. Often, such businesses are highly profitable, vastly scalable, and are led by visionary leaders.

The way I see it, innovation is the only way forward for society, so I want to position my portfolio to benefit from the value these transformative operators create over time. I believe the US tech sector will continue to be the epicentre of this, making Betashares Nasdaq 100 ETF (ASX: NDQ) my preferred pick.

However, it should be noted that there is an overlap between the VGS ETF and the Nasdaq 100 ETF, resulting in an elevated weighting toward the likes of Apple, Microsoft Corp (NASDAQ: MSFT), Amazon.com Inc (NASDAQ: AMZN), Nvidia Corp (NASDAQ: NVDA), etc.

Buffett’s secret sauce

The final investment I’d add to my portfolio to form a rock-solid core is Vaneck Morningstar Wide Moat ETF (ASX: MOAT). As alluded to in the name, this is an ETF invested in US companies that Morningstar’s analysts believe have a sustainable competitive advantage.

Moats can come from many places, including network effects, brands, patents, scale, and product stickiness. In the words of Warren Buffett, the legendary leader of Berkshire Hathaway, “A good business is like a strong castle with a deep moat around it. I want sharks in the moat. I want it untouchable.”

This ETF gives the investor a slice of heavyweights such as Salesforce Inc (NYSE: CRM), Wells Fargo & Co (NYSE: WFC), and Nike Inc (NYSE: NKE).

The post Building a rock-solid base for my stock portfolio with these 3 ASX ETFs appeared first on The Motley Fool Australia.

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Wells Fargo is an advertising partner of The Ascent, a Motley Fool company. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Mitchell Lawler has positions in Apple. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, BetaShares Nasdaq 100 ETF, Microsoft, Nike, Nvidia, and Salesforce. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long January 2025 $47.50 calls on Nike. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended Amazon, Apple, Nike, Nvidia, Salesforce, VanEck Morningstar Wide Moat ETF, and 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.

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

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• 5 things to watch on the ASX 200 on Tuesday
• ‘Oversold’: 2 beaten-up ASX 200 shares ready to be given a fair go

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 Telix Pharmaceuticals. The Motley Fool Australia has recommended IPH, Orora, 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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The All Ordinaries Index (ASX: XAO) is down 1.1% today, but that’s not holding back this rocketing ASX uranium stock.

The ASX uranium share closed yesterday trading for 55 cents. In earlier trade today, shares were swapping hands for 65 cents apiece, up 18.2%.

After some likely profit-taking, shares are currently trading for 63.5 cents, leaving this ASX uranium stock up 15.5% in intraday trade.

Any guesses?

If you said Toro Energy Ltd (ASX: TOE) give yourself a virtual gold star.

Here’s what’s happening.

Broader tailwinds for ASX uranium stocks

Toro Energy looks to be getting a big lift on two fronts.

First, the uranium price hit 16-year highs yesterday, with yellowcake trading above US$100 per pound.

The uranium price has been marching steadily higher over the past six months amid renewed global ambitions for nuclear energy.

The outlook for the uranium price, and ASX uranium stocks like Toro Energy, got another boost over the weekend when National Atomic Company Kazatomprom Joint Stock Company (FRA: 0ZQ) announced a significant reduction to its 2024 production guidance.

Kazatomprom, the world’s largest uranium producer, cited a shortage of sulphuric acid for the downgraded forecast.

The Toro Energy share price closed up 4.8% following that news yesterday.

As for some of the biggest ASX uranium stocks, Paladin Energy Ltd (ASX: PDN) shares gained 7.5% on Monday while Bannerman Energy Ltd (ASX: BMN) shares closed the day up 6.2%.

However, both Paladin and Bannerman shares are in the red today, while Toro Energy is surging.

Toro Energy share price boosted on project update

The Toro Energy share price is leaping higher again today after the ASX uranium stock announced it has made significant advancements in its Lake Maitland extension study.

Toro Energy’s Lake Maitland uranium-vanadium project is located in Western Australia.

The extensions study is evaluating incorporating material from Toro Energy’s Lake Way and Centipede-Millipede uranium deposits into a proposed processing operation at Lake Maitland.

According to the release, “Strong potential exists to increase production at Lake Maitland with additional uranium resources from Lake Way and Centipede-Millipede.”

The company noted the potential to extend processing of its high-grade uranium resource “well beyond” the seven years it expects from a standalone Lake Maitland operation.

Commenting on the progress sending the ASX uranium stock soaring today, executive chairman Richard Homsany said, “We are pleased that strengthening uranium market conditions continue as we develop and seek to maximise the value of the Wiluna Uranium Project, especially our evaluation of extending our Lake Maitland uranium vanadium processing operation.”

Homsany added:

The uranium resources at Lake Way and Centipede-Millipede are strategically located and considerable and need to be thoroughly evaluated for viability. The inclusion of additional material into the Lake Maitland uranium vanadium processing operation has the strong potential to add significant value to the Wiluna Uranium Project.

As for the Toro Energy share price, this small-cap ASX uranium stock has already gained a whopping 35% in 2024.

The post Guess which ASX uranium stock just leapt 18% on ‘significant’ project upside potential appeared first on The Motley Fool Australia.

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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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S&P/ASX 200 Index (ASX: XJO) energy shares are deep in the red on Tuesday.

Here’s how these top three ASX 200 energy stocks are performing at the time of writing in early afternoon trade:

• Woodside Energy Group Ltd (ASX: WDS) shares are down 1.4%
• Santos Ltd (ASX: STO) shares are down 2.0%
• Beach Energy Ltd (ASX: BPT) shares are down 3.0%

For some context, the ASX 200 is down 1% at this same time.

So, why are these ASX 200 energy shares underperforming the benchmark?

ASX 200 energy shares under selling pressure

Beach Energy, Santos and Woodside shares are, as you’d expect, highly influenced by the price of oil and gas.

Atop the current oil price, forward-looking investors in ASX 200 energy shares will also attempt to gauge the future price outlook.

As for today’s performance, despite the ongoing conflict in Gaza. and renewed attacks by Houthi forces against ships in the crucial Red Sea shipping corridor, the oil price slipped again overnight.

Brent crude oil is currently trading for US$78.01 per barrel, down 0.2%. That sees the oil price down 3.6% since 26 December. And Brent crude has plunged some 20% since trading for US$97 per barrel as recently as 27 September.

The market remains jittery about the potential for the conflict to spread across the oil-rich region. But the oil price and ASX 200 energy shares have slipped amid record output from the United States, the world’s top oil producer, alongside increased supply from other nations outside of OPEC+.

That supply boost comes at a time when the forecast for demand growth in 2024 remains subdued.

Commenting on the oil price outlook amid the latest tensions in the Red Sea, Citigroup Inc analyst Francesco Martoccia said (quoted by Bloomberg), “It is not our base case that US/UK strikes on Houthi targets in Yemen and issues in the Red Sea will lead to a substantive upside in oil prices over the coming weeks.”

However, Martoccia cautioned:

A possible escalation in tensions between Israel and Hezbollah and/or Iran, which the market believes may result in supply disruption, or actually results in supply disruption, is a larger concern in the near-term, though also not within our base case.

While a higher oil price would offer some welcome tailwinds for ASX 200 energy shares, let’s hope this isn’t driven by any further escalation in the Middle East tensions.

The post Why are ASX 200 energy shares being hit so hard on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Santos shares storm higher on $5.7 billion approval
• Here are the top 10 ASX 200 shares today
• Is now the right time to invest in Woodside shares amid a volatile oil price?
• 5 things to watch on the ASX 200 on Monday

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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