When it comes to investing, you don’t have to start with big lump sums to build your wealth.

Particularly now there are investment platforms out there that allow you to invest small amounts or even your spare change into the share market.

In fact, if you were to give up a coffee a day and put $5 into ASX shares, you could generate big returns and even a second income over the long term.

$5 a day into ASX shares

Over the long term, the Australian share market has generated an average return of approximately 10% per annum.

It has been possible to beat this return by investing in ASX shares with strong business models, positive long-term growth outlooks, and competitive advantages. Just look at Warren Buffett’s track record at Berkshire Hathaway (NYSE: BRK.B) to see this.

But for the purpose of this article, we’re going to assume that you match the market return rather than beat it.

With that in mind, let’s see what you happen if you were to invest $5 a day into ASX shares.

Firstly, $5 a day equates to an investment of approximately $152 per month on average throughout the year.

If you put this amount into ASX shares for 10 years and earned an average 10% per annum return, you would have grown your portfolio to just over $30,000.

And thanks to compounding, if you were to keep going, you would grow your investment portfolio to $110,000 after a total of 20 years and over $315,000 at the 30-year mark.

Making a second income

Once you’ve built up your investment portfolio, you can start thinking about a second income.

For example, if you were able to average a 6% dividend yield across your portfolio, your annual income would be as follows based on the above amounts:

• $30,000 – $1,800 of income
• $110,000 – $6,600 of income
• $315,000 – $18,900 of income

All in all, I believe this demonstrates that by coming up with a long-term investment plan, even with small contributions, it can lead to significant wealth in the future.

The post My $5 a day ASX second income plan for 2024 appeared first on The Motley Fool Australia.

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More reading

• How to apply a Warren Buffett investing style in 2024
• With no savings at 50, I’d follow Warren Buffett’s approach to build wealth
• How I’d aim to turn $10k into $1 million with ASX shares

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

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ASX dividend stocks can be a great way to generate an income.

But which ones could be buys?

Three dividend stocks that analysts are tipping as buys this month are listed below. Here’s what you need to know about them:

Baby Bunting Group Ltd (ASX: BBN)

The first ASX dividend stock that analysts think could be a buy is baby products retailer Baby Bunting.

Morgans is feeling upbeat about the company’s outlook following a tough period. This led to the broker recently increasing its “NPAT estimates by 17% in FY24 and 7% in FY25 as a result of cost-out initiatives and higher sales assumptions.”

Its analysts are also predicting some generous dividend yields in the near term. They are forecasting fully franked dividends per share of 9.9 cents in FY 2024 and then 12.9 cents in FY 2024. Based on the current Baby Bunting share price of $1.89, this will mean yields of 5.2% and 6.8%, respectively.

Morgans has an add rating and $2.50 price target on its shares.

Coles Group Ltd (ASX: COL)

Another ASX dividend stock that analysts have tipped as a buy is supermarket giant Coles.

Citi is feeling positive about the company partly due to anti-theft measures. As a result of these actions, its analysts “expect the drag from theft on gross margin will begin to materially reverse in 2H24.”

The broker expects this to underpin fully franked dividends of 64 cents per share in FY 2024 and 70 cents per share in FY 2025. Based on the current Coles share price of $15.79, this will mean yields of 4% and 4.4%, respectively.

Citi has a buy rating and $17.50 price target on its shares.

Rural Funds Group (ASX: RFF)

Finally, over at Bell Potter, its analysts continue to believe that agricultural property company Rural Funds could be an ASX dividend stock to buy.

Its analysts highlight that the company’s share price was recently “trading at its largest discount to market NAV since listing.”

In addition, the broker is forecasting some big yields from its shares in the coming years. It is expecting dividends per share of 11.7 cents in FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.08, this will mean yields of 5.6% for investors.

The broker has a buy rating and $2.25 price target on its shares.

The post Buy Coles and these ASX dividend stocks appeared first on The Motley Fool Australia.

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More reading

• Will a competition review hurt Woolworths and Coles shares?
• I’m buying these 2 ASX dividend shares for 2024 and beyond!
• Why income investors should buy these ASX 200 dividend shares in 2024
• The Coles share price rises above $16! Is this my time to buy?
• Buy Telstra and these ASX dividend shares now

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Coles Group and Rural Funds Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ASX tech share space has been a wonderful place to find high-performing businesses. There are some great companies on the ASX, and owning enough of them could make them look like a Nasdaq-style portfolio.

The Nasdaq is a US stock exchange that has a relatively high number of US tech and tech-related businesses involved.

The ASX isn’t known for having large tech businesses like Microsoft, Apple, Alphabet and Amazon.com in the US.

But, after years of strong growth, there are some sizeable ASX shares that I’d pick for a Nasdaq index-style portfolio.  

How I’d narrow down the picks

Investments that track indices don’t necessarily try to make a judgment call. When investors buy the Betashares Nasdaq 100 ETF (ASX: NDQ), they aren’t necessarily making a valuation call on any individual business. Instead, it’s a call on whether the whole group of companies can collectively keep doing well.

Most ASX tech shares certainly aren’t trading on a cheap valuation, in terms of not having a low price/earnings (P/E) ratio.

Plenty of tech-based businesses can achieve a higher-than-average gross profit margin (because of the intangible nature of software), which means revenue growth can lead to a lot more profit growth than an industrial business could achieve.

There are a number of things I’d look for with these ASX tech shares. First, I’d want to see those businesses have good profit margins.

I would want those ASX tech shares to have international growth revenue potential because that opens up a lot more growth beyond Australia’s shores.

Ideally, those companies are growing revenue at a solid pace, or have the potential to grow revenue at a strong speed in the future.

Plus, I’d hope to see those businesses have good balance sheets with manageable (or no) debt.

My preferred ASX tech shares

Four of the best ones that spring to mind are electronic PCB design software company Altium Limited (ASX: ALU), medical imagining software company Pro Medicus Ltd (ASX: PME), real estate portfolio business REA Group Limited (ASX: REA) and logistics software company WiseTech Global Ltd (ASX: WTC). I think all of these ASX tech shares would be at home in the Nasdaq Index.

I think the above four are among the highest-quality companies on the ASX.

If I were to expand the list to a few more names, I’d include TechnologyOne Ltd (ASX: TNE), Xero Limited (ASX: XRO), Webjet Limited (ASX: WEB), Siteminder Ltd (ASX: SDR) and Audinate Group Ltd (ASX: AD8).

Many of these stocks have performed strongly over the last six to 12 months. I’m not expecting the next 12 months to be as strong, but the underlying business results could be compelling, particularly if they can keep growing strongly overseas.

The post True blue tech: The ASX shares I’d buy to build a Nasdaq index-inspired portfolio appeared first on The Motley Fool Australia.

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More reading

• Sliding Doors: Brainchip vs Xero shares
• How I’d aim to turn $10,000 into $50,000 using ASX growth shares
• Here’s how the ASX 200 market sectors stacked up this week
• Why these ASX 200 growth shares could be strong buys
• ASX blue-chip stocks: My best of the best for January 2024

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 positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet, Altium, Amazon, Apple, Audinate Group, BetaShares Nasdaq 100 ETF, Microsoft, Pro Medicus, REA Group, SiteMinder, Technology One, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Audinate Group, BetaShares Nasdaq 100 ETF, SiteMinder, WiseTech Global, and Xero. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Pro Medicus, REA Group, and Technology One. 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 Domino’s Pizza Enterprises Ltd (ASX: DMP) stock price has suffered significantly over the past two years. Hence is this the right time to sell or buy the ASX stock? While it’s down over 60% from 2021, it has gone up more than 17% in the last six months.

Domino’s has a presence and has the exclusive master franchise rights in countries including Australia, New Zealand, Belgium, France, The Netherlands, Japan, Germany, Luxembourg, Taiwan, Malaysia, Singapore and Cambodia.

Keep in mind that the Domino’s brand is owned by Domino’s Pizza Inc, a listed US company.

What’s the latest?

The latest trading update came at the annual general meeting (AGM) which revealed network sales growth of 12.7% and same-store sales (SSS) growth of 2.7% in the financial year to date at the time of November 2023. This may have helped the recent Domino’s stock price recovery.

Same-store sales were positive in the financial year to date in 10 of the company’s 12 months, with Japan and Taiwan being the markets that were suffering.

Its troubles have partly come from the fact that it lost some value-focused delivery customers in the past financial year after pricing changes (to try to offset inflation) did not resonate with customers.

However, the removal of a delivery service fee, the launch of new products and a global partnership with Uber has meant Domino’s is serving more customers.

Domino’s suggests consumers are “choosing high-quality pizzas as they seek an affordable treat in the face of cost of living pressures” which Domino’s is calling “treatflation”.

The business said it’s on track to deliver against “a range of strategic initiatives to restructure the business, reduce costs and reinvest in rebuilding franchisee partner profitability.” This is encouraging them to look at opening more stores.

Domino’s is expecting earnings in the first half of FY24 to be “materially higher” than the FY24 second half. It’s also expecting to report growth in the second half of FY24 compared to the first half of FY24.

Over the long term, it’s aiming for 7,100 stores by 2033. This increased scale could add a lot to revenue, while an enlarged business could mean stronger profit margins too. Expansion into new, sizeable markets could accelerate it towards its targets.

Domino’s stock price valuation

According to Commsec, the business is trading at 29 times FY25’s estimated earnings. That is a fairly high valuation, but it’s much cheaper than a couple of years ago.

I think it could be a decent time to buy Dominio’s stock because of the heavy fall, the resurgent trading activity, the reduced rate of inflation and the growing scale advantages it’s creating.

The post Domino’s stock: buy, sell or hold? appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• Leading brokers name 3 ASX shares to buy 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 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.

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If you’re on the lookout for some big yields, then it could be worth checking out the ASX dividend shares listed below.

Here’s what analysts are saying about these buy-rated shares:

Dexus Convenience Retail REIT (ASX: DXC)

Bell Potter thinks that this convenience focused property company could be an ASX dividend share to buy right now.

This is due to its attractive valuation and generous forecast dividend yields. It explains:

DXC offers one of the most attractive risk-adjusted propositions in the sector trading at an all time low c.37% discount to NTA, a FY24e DPS yield of 8.7% [now 8.1%] based on the mid-point guidance range despite lower sub-sector volatility where assets continue to transact providing price discovery and balance sheet comfort. Only office-centric REITs trade on wider metrics.

Bell Potter is forecasting dividends per share of 20.9 cents in FY 2024 and 20.5 cents in FY 2025. Based on its current share price of $2.59, this equates to yields of 8.1% and 7.9%, respectively.

The broker has a buy rating and $2.85 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Over at Morgans, its analysts believe that youth fashion retailer Universal Store could be a buy. It thinks the company’s shares are good value given its positive growth outlook. It said:

UNI’s attractive array of medium-term growth prospects is undervalued at a single digit FY25 P/E. We reiterate our ADD rating and increase our target price.

In addition, Morgans is forecasting fully franked dividends per share of 26 cents in FY 2024 and 29 cents in FY 2025. Based on the current Universal Store, this will mean yields of 5.9% and 6.6%, respectively.

Its analysts have an add rating and $4.55 price target on its shares.

The post 2 ASX dividend shares with juicy yields to buy right now appeared first on The Motley Fool Australia.

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More reading

• Leading brokers name 3 ASX shares to buy today
• 2 ASX dividend stocks expected to pay huge yields in 2025
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• Buy Telstra and these ASX dividend shares now
• Brokers say these 3 ASX dividend stocks are buys

Motley Fool contributor James Mickleboro has positions in Universal Store. 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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In the film 1998 Sliding Doors, the viewer follows around Gwyneth Paltrow across two different storylines. In one storyline we see how her life unfolds if she catches her train, in the other we see what happens when she misses it.

Investing can be a lot like Sliding Doors. When investors make an investment, they are choosing one ASX share over another. Each investment has its own potential storyline and each can shape your life and, more specifically, your wealth.

So, let’s go back a year and see what would have happened if you had invested $10,000 into either Brainchip Holdings Ltd (ASX: BRN) and Xero Limited (ASX: XRO).

Investing $10,000 in Brainchip shares

I have been very vocal over the last couple of years, warning investors off Brainchip shares. So, hopefully I have prevented at least a handful of readers from losing significant wealth to this struggling semiconductor company.

For example, over the last 12 months, Brainchip shares have lost 76% of their value. This means that a $10,000 investment would now be worth just $2,400.

This has been driven by the company’s abject performance (less revenue than a thrift store) and an extremely challenging outlook due to its competition with absolute tech behemoths.

In addition, the fact that none of its rivals, which spend billions on R&D each quarter, have lobbed a takeover offer its way or made a strategic investment, appears to indicate that they don’t believe its technology is a threat.

What about Xero?

If instead of buying Brainchip shares, you had put $10,000 into Xero shares, you would be celebrating today.

Over the same period, thanks to its strong performance in FY 2023 and so far in FY 2024, the cloud accounting platform provider’s shares have risen 47%.

This would have turned your investment into $14,700, which means you’re now $12,300 better off than if you had taken the other option.

It also means that Brainchip shares would have to rise over 500% to just catch up. And with the company still looking severely overvalued with a $400 million market capitalisation, that looks like nothing short of wishful thinking.

The post Sliding Doors: Brainchip vs Xero shares appeared first on The Motley Fool Australia.

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More reading

• Here’s how the ASX 200 market sectors stacked up this week
• ASX blue-chip stocks: My best of the best for January 2024
• The No. 1 ASX 200 shares of each market sector in 2023
• These were the best-performing ASX 200 tech shares of 2023
• Why Core Lithium, Sayona Mining, WA1, and Xero shares are dropping today

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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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Just because you see some ASX shares rise spectacularly doesn’t mean that they become bad buys.

That’s because past performance literally has nothing to do with where a stock is heading in the future.

Shares have no memory, so they don’t care what their history is.

The only thing that matters is whether investors continue to want a piece of the action.

So with this firmly in mind, here are three soaring ASX shares that experts this week are rating as buys:

This mob loves it when it rains

The year is barely a half-month old, but the Johns Lyng Group Ltd (ASX: JLG) share price has already rocketed more than 10.7%.

The company provides reconstruction services for the insurance industry, and the recent extreme weather on the east coast may well have spurred on the market.

“We expect an already strong pipeline of work to be bolstered from recent storm damage in Queensland and Victoria,” Medallion Financial Group portfolio manager Stuart Bromley told The Bull.

The business has been a darling with investors for a while now, with the stock price surging 524% higher over the past five years.

Bromley reckons the recent rocket for Johns Lyng shares could be the start of another bull run.

“Management has a history of exceeding expectations, with fiscal year 2023 net profit after tax (NPAT) of $62.8 million above consensus forecasts of $50 million.

“The shares are enjoying favourable momentum in 2024.”

‘Deserves a higher multiple’

Ord Minnett senior investment advisor Tony Paterno’s pick is telco and infrastructure network services provider Service Stream Ltd (ASX: SSM).

The stock has impressed in recent times, rising more than 47.5% since the start of June.

According to Paterno, an analyst day presentation showed just how diversified its work is, the niche knowledge required to solve the problems, and the long contract durations involved.

The company also boasted how its risk profile is improving as it “cycles away from fixed price, lump sum work”.

“Service Stream carries $5 billion of work in hand, excluding contract extensions, underpinned by unprecedented levels of investment from government and private asset owners.”

Paterno said his team preferred businesses with “nearer-term earnings visibility and positive earnings momentum”.

“We believe Service Stream’s free cash flow generation deserves a higher multiple.”

‘Standout’ ASX shares in a tough industry

Investment manager GQG Partners Inc (ASX: GQG) is not often mentioned among the hot stocks, but its valuation has soared almost 36% since early November.

According to Bromley, it’s a reliable performer in an industry that doesn’t have the best image among stock investors.

“The company has delivered consistent growth in funds under management,” he said.

“GQG is our standout alternative in the funds management space that has been under pressure.”

Bromley predicts that the momentum is set to continue.

“The company was recently managing more than $100 billion, and we believe continuing fund inflows paired with fund outperformance should deliver share price upside.”

Indeed all five analysts that cover GQG are rating the ASX shares as a buy, including Paterno’s Ord Minnett team.

The post ‘Exceeding expectations’: 3 rocketing ASX shares you better buy before they rise even more appeared first on The Motley Fool Australia.

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More reading

• 2 Warren Buffett tips I’ll be following when buying ASX shares in 2024
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Here’s how I plan to build a second income in 2024
• Why Boss Energy, GQG, Kali Metals, and Red 5 shares are racing higher today

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

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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with the smallest of declines. The benchmark index fell 2 points to 7,496.3 points.

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

ASX 200 expected to fall

The Australian share market is expected to fall on Tuesday following a mixed start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 21 points or 0.3% lower. In late trade in the United States, the Dow Jones is down 0.3%, the S&P 500 is up 0.1%, and the NASDAQ is slightly higher.

Rio Tinto quarterly update

The Rio Tinto Ltd (ASX: RIO) share price will be on watch on Tuesday when the mining giant releases its quarterly update. The market is expecting the miner to report Pilbara iron ore shipments of 86.8Mt, which represents a 4% quarter on quarter increase. This is expected to be achieved with an average realised price of US$107 per tonne.

Oil prices soften

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a subdued session after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.3% to US$72.48 a barrel and the Brent crude oil price is down 0.2% to US$78.16 a barrel. This may have been driven by concerns over Chinese economic growth.

Pilbara Minerals remains a sell

Goldman Sachs continues to believe that Pilbara Minerals Ltd (ASX: PLS) shares are a sell despite its new offtake agreement with Ganfeng Lithium reducing unallocated volumes over FY24 to FY27 from ~45% to ~25%. Despite this, it notes that “PLS continues to trade at a premium to peers.” Goldman has a sell rating and $3.20 price target on its shares.

Gold price falls

ASX 200 gold shares including Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a good session after the gold price rose overnight. According to CNBC, the spot gold price is up 0.4% to US$2,059.2 an ounce. The gold price rose on Fed rate cut optimism.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Why Chalice Mining, Nuix, Pilbara Minerals, and Sayona Mining shares are falling
• The pros and cons of buying Wesfarmers shares right now
• Pilbara Minerals share price tumbles despite Ganfeng Lithium deal
• Bullish about data centre growth? I’d try these 3 ASX 200 shares

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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A million bucks might now be 30% below the median house price in Sydney, but it’s still a lot of money.

If anything, that shows how crazy real estate is in Australia’s largest metropolis, and says nothing about how valuable a million bucks is.

Seven figures can provide financial freedom, so potentially you never have to work again.

One of the best ways of reaching the magic mill is to invest in ASX shares.

Of course, there are no guarantees in life. But you’re never going to have a chance if you don’t at least try.

Let me show a couple of shares that experts are loving at the moment to demonstrate how you could reach the promised land:

Uranium is so hot right now

Deep Yellow Limited (ASX: DYL) is a uranium producer operating projects in Western Australia and Namibia.

The global uranium spot price has doubled in the past year as nations start to look to nuclear power to meet their energy needs in a market that’s now missing a major supplier in Russia.

Nuclear power is also in favour for many jurisdictions as a method of producing huge amounts of power in return for little carbon emissions.

The Deep Yellow share price has climbed a stunning 97% over the past 12 months. But experts in the know believe there is more where that came from.

Last weekend’s shock announcement from the world’s largest uranium producer, National Atomic Company Kazatomprom Joint Stock Company (FRA: 0ZQ), that its production forecasts have been downgraded caused a frenzy in financial markets.

Uranium and uranium stocks rocketed out of fears that tight global supply would force many customers to turn to the spot market and pay market — rather than fixed — prices.

The situation showed just how sensitive the nuclear fuel market is at the moment.

All up, Deep Yellow shares have gained 232% over the past half-decade. All five analysts that cover the stock believe it is a strong buy at the moment, according to CMC Invest.

The ASX shares the experts love at the moment

Related to the energy crisis is MMA Offshore Ltd (ASX: MRM).

It’s a marine services provider that lends out necessities like ships to clients with offshore facilities such as oil and gas rigs.

The MMA Offshore share price has literally doubled in the past year as demand for its services has gone through the roof.

Similar to Deep Yellow, this run-up hasn’t put off professional investors.

CMC Invest currently shows all five analysts rate the stock as a strong buy.

After the ups and downs over the past five years, MRM Offshore shares are now trading 109% higher.

How to reach $1 million 

If you are skilled and lucky enough to buy a couple of shares like these, you are in with a real shot at a million.

Over the past five years, Deep Yellow shares have returned a compound annual growth rate (CAGR) of 27.1%, while MRM Offshore has managed 15.9%.

Let’s say you start with a $50,000 portfolio.

The average CAGR for our two sample stocks is 21.5%. If your portfolio can grow at that rate and you keep adding $400 each month, you will reach seven figures in just 14 years.

That’s an early retirement for many people.

If you start at age 30, then that’s a million bucks at just 44. Even if you begin investing at 40 years old, you reach your target at 54, which is much earlier than Australia’s legislated retirement age.

The post I’d invest in these 2 ASX shares for a real shot at $1 million appeared first on The Motley Fool Australia.

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More reading

• The shocking admission catapulting ASX uranium shares to record highs today
• Why Bapcor, Deep Yellow, Super Retail, and Telstra shares are rising today
• These are the 10 most shorted ASX shares
• Up 140% in 13 months, experts are still backing this ASX stock for the long run
• Why are ASX uranium shares on a tear today?

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 Mma Offshore. 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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Even though there are numbers and graphs everywhere, more often than not the stock market does get too emotional.

Sure, some businesses endure tough times, but the mob fear of avoiding such investments can drive the share price down excessively.

And this is when shrewd investors can take advantage, scooping them up for cheap and just patiently waiting for the market to compose itself again.

Here are two such S&P/ASX 200 Index (ASX: XJO) examples that expert are tipping as buys at the moment:

Undervalued with ‘attractive dividend yield’

Despite buoyant times for the energy market over the past two years, AGL Energy Limited (ASX: AGL) has not been able to make hay.

The share price has sunk 27% since July, and is a shocking 58% off its pre-COVID peak.

Ord Minnett senior investment advisor Tony Paterno reckons it’s a great time to buy.

“In our view, the longer-term outlook remains solid,” Paterno told The Bull.

“AGL was recently trading on a low forecast fiscal year 2024 price/earnings multiple below 10 times and offers an attractive dividend yield, mostly franked from fiscal year 2025 onwards.”

Indeed the stock currently offers a yield of 3.4%.

Paterno admits there will be significant capital expenditure looming, but the stock is just too cheap to ignore.

“We’re forecasting relatively flat earnings over the long term, as investments in renewable energy and batteries offset the expiry of cheap long-term coal contracts and the closure of coal power stations.”

Six out of eight analysts that cover AGL shares currently rate them as a buy, according to CMC Invest.

This ASX 200 company could be ripe for a takeover

Since casino rival Crown went private, Star Entertainment Group Ltd (ASX: SGR) could make a case as the most maligned ASX 200 stock of the last two years.

Much-publicised government scrutiny into its risk management issues have painfully forced the share price 86% down since the start of October 2021.

“The company reported a statutory loss of $2.435 billion, which includes non-cash impairments, in fiscal year 2023,” said Red Leaf Securities chief executive John Athanasiou.

He reckons, though, enough is enough.

“We believe the shares have been oversold. 

“The market hasn’t priced in the possibility of a recovery, or the company appealing as a potential takeover target.”

CMC Invest shows five out of six analysts agree with Athanasiou that Star Entertainent is a buy right now.

The post ‘Oversold’: 2 beaten-up ASX 200 shares ready to be given a fair go appeared first on The Motley Fool Australia.

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More reading

• The 2023 AGL share price return was double the ASX 200
• Here are the top 10 ASX 200 shares today
• The No. 1 ASX 200 shares of each market sector in 2023
• 6 ASX 200 stocks trading on attractive P/E ratios right now
• These were the worst-performing ASX 200 shares of 2023. Should you buy them now?

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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