Mineral Resources Ltd (ASX: MIN) is an S&P/ASX 200 Index (ASX: XJO) mining stock that could be about to generate a lot more profit if a fund manager is correct about the ASX mining share’s outlook.

Minerals Resources is involved in a few different areas of the resources sector – iron ore, lithium, mining services and gas exploration.

The fund manager in question is Romano Sala Tenna, portfolio manager of Katana Asset Management’s Australian equity fund, who was talking to the Australian Financial Review about the share market and potential opportunities.

Fund manager views on the ASX 200 mining stock

The fund manager’s model is indicating that “at least three of the four divisions will double earnings before interest, tax, depreciation and amortisation (EBITDA) over the next two years.”

How could this affect the company’s bottom line net profit?

The fund manager said the EBITDA growth will “generate earnings per share (EPS) in excess of $10 and a resultant price/earnings (P/E) ratio of less than seven times”.

When asked which share is the most undervalued by the market, Romano Sala Tenna said that it was the ASX 200 mining stock that is the “most undervalued” even though it’s up 75% since mid-July 2023 and up 250% since May 2020.

The fund manager said:

But if Mineral Resources delivers on its growth pipeline, then that is what it will be – the most undervalued stock in the portfolio.

The resources sector can be a tricky one to navigate, particularly because of the difficult nature of mining and because they have little control over the price. When asked about what makes a good investment in the mining sector, Romano Sala Tenna said:

It’s all about the rocks! Geology is the key ingredient, but it is not as simple as grade.

While grade – or resource per vertical metre to be more precise – is critical, there are a host of factors that will determine whether the resource can be extracted commercially.

Metallurgy is critical, including an understanding of grind size to extract the minerals, ore hardness, processing pathways, impurities and recovery rates. Mine life and to a lesser degree exploration upside are also key determinants of whether the project is viable.

Management, needless to say, is pivotal. We have seen some management teams make big dollars from tough assets, yet others have failed to capitalise on seemingly easier deposits.

Foolish takeaway

If Mineral Resources shares are trading on a future earnings multiple of seven, then it would have a much cheaper P/E ratio than others like BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO).

BHP shares are currently valued at 11 times FY25’s estimated earnings and Rio Tinto shares are valued at 12 times FY25’s estimated earnings.

The post ‘Undervalued’ ASX 200 mining stock ‘will generate earnings per share in excess of $10’ over the next 2 years appeared first on The Motley Fool Australia.

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More reading

• Which ASX lithium shares could be next to appear on the takeover radar?
• Could another lithium price boom be around the corner? Experts weigh in
• Boost your passive income with these ASX dividend shares: Morgans
• Here are the top 10 ASX 200 shares today
• Where will ASX lithium shares go in 2023?

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 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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ASX 300 share OFX Group Ltd (ASX: OFX) is skyrocketing after the foreign exchange services provider released its full-year FY23 results. 

OFX shares are up 19.94% at the time of writing to $1.847 apiece.

Formerly known as OzForex Group, OFX provides foreign exchange services and online international payment services. Its brands include OFX, CanadianForex, NZForex, Tranzfers, and ClearFX. 

ASX investors are thrilled with today’s news, so let’s dig into those numbers. 

OFX shares take off on record EBITDA 

The highlights for the 12 months ended 31 March 2023 are: 

• Turnover of $39.1 billion, up 17.9% on the prior corresponding period (pcp) 
• Revenue $225 million, up 42.4% pcp 
• Net operating income $214.1 million, up 45.6% pcp 
• Underlying operating expenses $151.7 million, up 47.9% pcp 
• Underlying earnings before interest, taxes, depreciation, and amortisation (EBITDA) $62.4 million, up 40.3% pcp 
• Statutory EBT $37.5 million, up 14.8% pcp 
• Statutory net profit after tax (NPAT) $31.4 million, up 25.6% pcp
• Net cash held $93.8 million, up 11.3% pcp. 

Share buyback

The company also announced it will reinstate its share buyback program with the aim of acquiring up to 10% of OFX shares over the next 12 months. 

OFX shares have dropped in value by 21% in the year to date, which is partly why the company wants to employ this strategy. 

According to a statement: 

The Board considers that at the prevailing share price this is an efficient way of returning capital to shareholders while maintaining the flexibility to pursue accretive M&A [merger and acquisition] opportunities that may arise. 

Acquisition to enhance corporate services 

OFX also announced it will acquire Sydney-based business-to-business payments company Paytron to enhance its offering to corporate clients.  

It will pay $6 million for the business in the first year, and fund the rest of the purchase through dynamic cash funding based on revenue milestones,

The consideration includes up to 11.25 million deferred performance securities subject to development and revenue vesting conditions. 

OFX expects to complete the purchase by 1 July.

OFX wants to buy Paytron for its platform, which offers multi-currency card accounts.

According to a statement: 

This is in line with OFX’s focus on expanding its services for B2B clients to generate revenue beyond spot FX and accelerates its current investment program. 

What did management say? 

OFX CEO and managing director Skander Malcolm said: 

I am delighted to report a record result for OFX, which demonstrates our successful pivot to B2B, and our ability to grow value from our loyal client base. 

Our recurring revenues are now 84%, driven by our strong Corporate segment, and it was pleasing to see signs of recovery in our High Value Consumer segment towards the end of the period as interest rate rises begin to stabilise. 

Outlook and FY24 guidance 

Excluding the Paytron acquisition, OFX expects to grow its net operating income to between $225 million and $243 million and its underlying EBITDA to between $63 million and $74 million. 

If Paytron is included, the expectation for net operating income is between $226 million and $244 million and EBITDA between $59 million to $70 million.  

Malcolm said:

FY24 assumes continued growth in our Corporate segment and our other segments to perform in line with FY23. 

We are also excited to invest in new and valuable products and services for our Corporate clients through Paytron, which we are confident will deliver meaningful returns over time. 

Recent history of OFX shares 

OFX shares are down 28% over the past 12 months.

By comparison, the S&P/ASX 300 Index (ASX: XKO) is up 1%. 

The post <strong>Why did ASX 300 share OFX just rocket 20%?</strong> appeared first on The Motley Fool Australia.

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More reading

• Why Catapult, OFX, TechnologyOne, and Zip shares are charging higher

Motley Fool contributor Bronwyn Allen has no positions in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended OFX Group. The Motley Fool Australia has recommended OFX 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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Rio Tinto Limited (ASX: RIO) shares are known for paying large dividends to investors. Could it be one of the most rewarding S&P/ASX 200 Index (ASX: XJO) shares in 2024?

One of the main advantages of ASX mining shares for income-seekers is that they trade on a relatively low price/earnings (p/e) ratio. The lower the p/e ratio, the higher the dividend yield is, assuming the dividend per share and dividend payout ratio don’t change.

Firstly, let’s have a look at what dividend yield Rio Tinto shares may be paying in FY24.

Projected Rio Tinto dividend yield

When the share price falls, it boosts the prospective dividend yield, so the 11% fall for Rio Tinto shares (that we can see on the chart below) is helpful for potential investors that want a good payout.

With the iron ore price now at around US$105 per tonne, down from US$130 per tonne earlier this year, Rio Tinto’s monthly profitability may be lower over the rest of the year and in 2024.

Even so, the ASX mining share is predicated (according to Commsec) to pay a solid grossed-up dividend yield of 8.9% in FY24 after paying a grossed-up dividend yield of 9.7% in FY23. By most measures, that’d be a really rewarding annual payment by the business.

How does it compare to some of the other ASX 200 dividend shares – is it better?

ASX 200 share comparisons

Rio Tinto’s dividend yield is expected to be larger than some of the well-known blue chips like Telstra Corporation Ltd (ASX: TLS), Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW) and Commonwealth Bank of Australia (ASX: CBA).

In FY24, these could be the following grossed-up dividend yields from the ones I just named, according to projections on Commsec:

Telstra could pay a grossed-up dividend yield of 5.9%.

Wesfarmers might pay a grossed-up dividend yield of 5.4%.

Woolworths is projected to pay a grossed-up dividend yield of 4.3%.

CBA could pay a grossed-up dividend yield of 6.4%.

Clearly, Rio Tinto is going to pay a bigger dividend yield than the above ASX 200 shares. But, the other large ASX iron ore shares and several ASX 200 bank shares could be on course to pay a larger dividend yield in 2024. Commsec numbers suggest that for FY24:

BHP Group Ltd (ASX: BHP) could pay a grossed-up dividend yield of 8.9%.

Fortescue Metals Group Ltd (ASX: FMG) might pay a grossed-up dividend yield of 8.9%.

It might be unsurprising that the three major iron ore miners all face similar valuation changes and dividend payout movements as the iron ore price fluctuates. Now let’s look at some banks.

Westpac Banking Corp (ASX: WBC) may pay a grossed-up dividend yield of 9.8%.

ANZ Group Holding Ltd (ASX: ANZ) could pay a grossed-up dividend yield of 9.7%.

National Australia Bank Ltd (ASX: NAB) might pay a grossed-up dividend yield of 8.9%.

Bendigo and Adelaide Bank Ltd (ASX: BEN) is projected to pay a grossed-up dividend yield of 10.1%.

Foolish takeaway

Rio Tinto could be one of the stronger-yielding ASX 200 shares in 2024, though some banks could pay even higher yields.

The ASX mining shares don’t have much control over what commodity prices do, so it’s just a guess at this stage. Rio Tinto’s profit next year could be stronger, or weaker, than what investors are expecting.

But the long-term future for the company looks promising as it invests in copper and lithium.

The post Are Rio Tinto shares a strong ASX 200 option for dividends in 2024? appeared first on The Motley Fool Australia.

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More reading

• Goldman Sachs says these ASX 200 mining giants are buys
• Experts say these 2 ASX 200 dividend stocks are buys for passive income
• What’s going on with Rio Tinto shares and lithium?
• Bought $5,000 worth of Rio Tinto shares last February? Guess how much passive income you’ve already grabbed?
• How does the Fortescue dividend stack up against BHP and Rio?

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank, Telstra Group, and Wesfarmers. 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 has been a lot of mergers and acquisitions (M&A) activity happening in the lithium industry of late.

This includes Liontown Resources Ltd (ASX: LTR) rejecting the advances of Albemarle Corp (NYSE: ALB) and Allkem Ltd (ASX: AKE) announcing plans to merge with Livent Corp (NYSE: LTHM).

Chances are, this won’t be where M&A activity stops. But which ASX lithium shares could be next in line to receive an offer?

Which ASX lithium share will next receive a takeover approach?

While there has been a lot of talk of Core Lithium Ltd (ASX: CXO) being a potential target, this seems unlikely due to its valuation.

M&A activity is designed to unlock value, but Core Lithium’s valuation is well and truly unlocked… and some more.

Last month, Goldman Sachs highlighted that Core Lithium shares trade at ~1.4x net asset value (NAV) compared to a peer average of ~1.1x NAV. That’s despite “also having the lowest average operating FCF/t LCE.”

Its shares have risen 8% since then, making the premium even greater and (probably) ruling out a takeover approach.

What else?

So, what else is left? Well, one ASX lithium share that appears to be in the M&A crosshairs right now is Delta Lithium Ltd (ASX: DLI).

The lithium developer, recently known as Red Dirt Metals, is rumoured to be attracting interest from Mineral Resources Ltd (ASX: MIN) and Gina Rinehart’s Hancock Prospecting.

On Monday, Bell Potter commented:

Reportedly, DLI has been under accumulation by potential strategic investors, Hancock Prospecting Pty Ltd and Mineral Resources Limited (MIN, Buy, TP$95/sh).

DLI has several characteristics in common with other lithium developers that have been the subject of strategic investment. Mt Ida is a relatively near-term producer, given that it’s situated on a granted mining lease, with a submitted mining proposal. Early Yinnetharra exploration results (and DLI commentary) point to the potential of the project to host a Tier1 Resource and operation. And DLI is, so-far, unencumbered by a significant shareholding by a strategic investor.

Watch this space!

Incidentally, Bell Potter has a speculative buy rating and $1.05 price target on the ASX lithium share.

The post Which ASX lithium shares could be next to appear on the takeover radar? appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 lithium stocks just downgraded by a top broker
• Up 125% in 2023, would I be mad to buy Liontown shares at today’s prices?
• Is it time to be a bull or a bear on Core Lithium shares?
• Core Lithium share price could be a long-term winner as critical metals steal the spotlight at G7 summit
• ASX 200 lithium shares could be winners as Biden calls critical clean energy metals the ‘third pillar of the Australia-US alliance’

James Mickleboro owns Allkem shares. 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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The Xero Limited (ASX: XRO) share price has done exceptionally well in 2023, rising by 58.53%. The S&P/ASX 200 Index (ASX: XJO) has only gone up by 3.38% in the year to date.

I’ve been confident about Xero’s recovery for a while now. It has gone up a long way since my optimistic call in March on the ASX growth share, but I believe the business can keep performing from here.

I’m going to explain why I believe it can beat the ASX 200 over the rest of this year and hopefully outperform up until 2030 as well.

Strong subscriber metrics

One of the main things that is helping drive Xero forwards is its growth of subscriber numbers. Those subscribers are paying the ASX tech share a monthly subscription fee, providing predictable cash flow.

The technology company is seeing a number of positive metrics with its subscribers, which I expect will continue in the first half of FY24, which can help drive the Xero share price.

The FY23 result saw total subscribers rise by 14% over the year to 3.74 million. It’s achieving strong organic growth with the average revenue per user (ARPU) increasing by 10% to $34.61.

Xero’s subscriber churn in FY23 was very low at just 0.90%, meaning its subscribers are very loyal (which allows the company to increase its subscription prices with little negative effect).

All of the above elements combined led to the total lifetime value of subscribers increasing by 23% to $13.4 billion.

Good revenue and gross profit margin

Businesses that are growing revenue at a good pace are growing their scale and that can help the business spend more on other activities like market, research and development, which is a very positive cycle.

Xero’s revenue is growing very quickly – in FY23 it saw 28% growth thanks to more subscribers and a higher ARPU.

The company has one of the highest gross profit margins on the ASX, which means that a lot of the new revenue also turns into gross profit, which can then be utilised by the business to spend more and/or become more profitable. In FY23, Xero’s gross profit margin was 87.3%.

I’m expecting Xero’s gross profit to keep climbing strongly in the coming years thanks to the subscriber growth.

Expectations of stronger profits in the coming years

One of the most exciting things to me about the potential for the Xero share price is that the company is planning to become much more profitable.

Increasing the size of the business usually comes with scale benefits, but management is now deliberately choosing for the business to become more profitable. The company is targeting an operating expense to operating revenue ratio in FY24 of around 75%.

The operating expense ratio to operating revenue ratio was 80.7% in FY23, so the next year could show a big improvement in profitability.

As the business continues to become bigger, I think the expense to revenue ratio can continue to improve, which will show the market how profitable the underlying operations truly are, which could impress the market and send the Xero share price even higher, in my opinion.

Foolish takeaway

Xero has done very well for shareholders in the first few months of 2023, and I think the FY24 half-year result could be another catalyst for the ASX tech share to keep rising.

By 2030, I think Xero could become one of the most profitable non-bank, non-miner businesses if it keeps growing subscribers and its profit margins.

The post Up 59% this year, I think the Xero share price can keep climbing in 2023 appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy next week
• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy now
• Why AUB, Austal, Core Lithium, and Xero shares are pushing higher

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 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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If you’re a fan of growth stocks like I am, then I have some good news for you.

A couple of high quality shares with heaps of growth potential have recently been named as buys.

Here’s why brokers are tipping them as buys:

Corporate Travel Management Ltd (ASX: CTD)

Morgans is bullish on Corporate Travel Management and has recently named it as an ASX growth stock to buy.

The broker believes corporate travel booker is well-positioned for growth thanks to acquisitions made during the pandemic, its cost reductions, and its investment in technology. Its analysts commented:

Taking a longer term view, CTD remains as a key pick for the travel sector. We see substantial upside in its share price as the company recovers from the COVID affected travel downturn. In fact, CTD should be a materially larger business post COVID given it has made two highly accretive acquisitions during the downturn. The company has also won a lot of new business, implemented structural cost out opportunities and continued to develop its market leading technology offering which means that it will require less staff in the future. CTD is well managed and has a strong balance sheet (no debt).

Morgans has an add rating and $24.00 price target on its shares.

Objective Corporation Limited (ASX: OCL)

Goldman Sachs has tipped Objective Corp as an ASX growth stock to buy this week.

Its analysts believe the public sector software provider is well-placed for growth thanks to strong demand in a defensive sector. The broker is expecting this to lead to earnings per share growth above 20% in both FY 2024 and FY 2025. It said:

In our view OCL is well placed to deliver robust and defensive earnings growth driven by (1) R&D and new product cycles accelerating the contribution from newer products including Nexus, Build and RegWorks; (2) cycling of revenue/earnings headwinds from model transition away from perpetual / services revenue and towards subscriptions; and (3) cost management into FY24, with +350/+250bps margin expansion driving +23%/+32% FY24/25 EPS growth when comping trough FY23E earnings.

Goldman has a buy rating and $14.90 price target on Objective Corp’s shares.

The post These ASX growth stocks could be destined for big returns: experts appeared first on The Motley Fool Australia.

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More reading

• Up 44% this year: 2 ASX 200 ‘recovery’ shares starting to rocket
• Buy this ASX tech share for big returns: Goldman Sachs
• 2 ASX 200 shares that had a MASSIVE April, set for more gains
• Morgans names the best ASX 200 growth shares to buy in May
• 2 ASX 200 travel stocks (not Qantas!) just upgraded by Citi

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Objective. The Motley Fool Australia has recommended Corporate Travel Management. 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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BHP has been hitting headlines lately amid concerns about the federal government’s planned “same job, same pay” legislation.

BHP shares are down 0.2% at the time of writing, currently fetching $44.11 apiece. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is 0.05% lower.

Let’s take a look at why BHP shares are in focus today.

What’s going on with BHP?

BHP has expressed concern about the federal government’s proposed “same job, same pay” legislation.

The government is seeking feedback on the proposed reform that would see labour-hire workers paid at least as much as directly employed workers doing the same job.

BHP is claiming the legislation could cost the company $1.3 billion a year, impacting jobs.

In a submission, quoted by the Sydney Morning Herald, BHP said:

BHP estimates the financial impact of [same job, same pay] SJSP to our Australian operations will be up to $1.3 billion annually.

This cost is equivalent to the labour cost of approximately 5000 full-time employees across our operational workforce.

Commenting further, BHP said to “address a cost impact of this magnitude”, it would “clearly need to review” the impact on the company’s Australian operations and the “workforce that supports it”.

Written submissions for the proposed legislation closed on 12 May with the federal government planning to introduce the legislation in Spring 2023.

Workplace Relations Minister Tony Burke told Sky News on Sunday “the principle that we took to the election is the principle we intend to legislate”.

In a statement quoted by the Australian Financial Review, Burke made “no apologies” for the policy. He said:

The details of this policy are not yet settled. That is the point of the consultation we’re doing with BHP and others.

If you close a loophole to stop workers being ripped off, it will result in an increase in the wages budget of any company that was using the loophole. We make no apologies for that.

BHP shares are in the red at the time of writing, but other ASX mining shares are faring better in afternoon trade. Rio Tinto shares are up 0.89% while Fortescue shares are 0.34% higher.

Iron ore futures for a June 2023 China contract (62% Fe Fines) is currently down 0.68% on the Singapore Exchange.

Share price snapshot

The BHP share price has climbed 3.6% in the past 12 months.

BHP has a market capitalisation of about $224 billion based on the latest share price.

The post Why is everyone talking about BHP shares on Tuesday? appeared first on The Motley Fool Australia.

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More reading

• Here’s what ANZ’s iron ore forecast could mean for the BHP share price in 2023
• 5 ASX 200 shares to buy according to brokers
• The copper price could explode. This is the ASX share to take advantage
• Why BHP shares made our headlines this week
• Buy these ASX shares with big dividend yields: Goldman Sachs

Motley Fool contributor Monica O’Shea 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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The S&P/ASX 200 Index (ASX: XJO) is back on form on Tuesday. In afternoon trade, the benchmark index is up 0.3% to 7,286.3 points.

Four ASX shares that are rising more than most today are listed below. Here’s why they are charging higher:

Catapult Group International Ltd (ASX: CAT)

The Catapult share price is up almost 7% to 78.5 cents. Investors have been buying this sports technology company’s shares after it delivered a strong full-year result. Catapult reported a 21.8% increase in SaaS revenue to US$84.4 million for the year. The company also revealed that it finished the year strongly, with operating earnings improving by a massive US$15.4 million half on half to US$2.2 million. In light of this, management expects to be free cash flow positive in FY 2024 without the need to raise capital.

OFX Group Ltd (ASX: OFX)

The OFX share price is up 20% to $1.85. This follows the release of the international money services provider’s full-year results. OFX reported a 17.9% increase in turnover to $39.1 billion, a 42.4% jump in revenue to $225 million, and a 25.6% lift in net profit to $31.4 million.

TechnologyOne Ltd (ASX: TNE)

The TechnologyOne share price is up 3.5% to $15.84. This has been driven by the release of the enterprise software provider’s half-year results. TechnologyOne reported SaaS annual recurring revenue (ARR) up 40% to $316.3 million and profit before tax up 24% to $52.7 million. This was ahead of analyst estimates.

Zip Co Ltd (ASX: ZIP)

The Zip share price is up almost 14% to 62.5 cents. This morning, analysts at Shaw and Partners suggested that Zip would be a big winner from regulatory changes in the BNPL industry. The broker also feels that it would be an attractive takeover target for Afterpay owner Block Inc (ASX: SQ2).

The post Why Catapult, OFX, TechnologyOne, and Zip shares are charging higher appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 stocks rocketing to never-before-seen heights today
• Guess which ASX 200 tech share just hiked its dividend 10%
• Afterpay should acquire Zip: broker
• TechnologyOne share price charges higher amid strong half-year growth
• 5 things to watch on the ASX 200 on Tuesday

James Mickleboro does not own any shares mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Catapult Group International, Ofx Group, Technology One, and Zip Co. The Motley Fool Australia has recommended Catapult Group International, Ofx 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 S&P/ASX 200 Index (ASX: XJO) is in the green on Tuesday, thanks in part to three stocks each soaring to new all-time record highs.

So, what’s been going right for the trio lately? Let’s take a look.

3 ASX 200 shares reaching record highs on Tuesday

First up is logistics-focused software developer WiseTech Global Ltd (ASX: WTC). The ASX 200 tech stock launched 1.9% to a high of $74.34 today – a new record.

Interestingly, there’s been no news from the company in the last couple of months. The last time the market saw a price-sensitive update from WiseTech was back in February.

That’s when it dropped its first-half earnings, detailing a 35% lift in revenue and a 40% underlying net profit after tax (NPAT). It also boosted its interim dividend by 39% to 6.6 cents per share.

Joining the stock in posting a new record high is its ASX 200 peer TechnologyOne Ltd (ASX: TNE). The TechnologyOne share price peaked at $15.86 earlier today – marking a 3.5% increase.

The latest news from the software-as-a-service (SaaS) provider came far more recently. Indeed, its first-half earnings were published this morning.

It posted a 22% jump in revenue, a 24% improvement in post-tax profit, and a 10% increase in its interim dividend, with 4.62 cents per share pledged to investors.

Finally, bringing in the biggest gain was stock in ASX 200 biopharmaceutical company Telix Pharmaceuticals Ltd (ASX: TLX). It surged 5% to an all-time high of $12.05 on Tuesday.

The company was added to the ASX 200 in February 2022. That same year it launched its lead product, Illuccix, in the United States.

More recently, it revealed positive results from a study of its TLX250-CDx product and announced its acquisition of AI-powered platform Dedicaid.

The post 3 ASX 200 stocks rocketing to never-before-seen heights today appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX 200 tech share just hiked its dividend 10%
• TechnologyOne share price charges higher amid strong half-year growth
• 5 things to watch on the ASX 200 on Tuesday
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Motley Fool contributor Brooke Cooper 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 Technology One and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended 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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ASX rare earths share Meteoric Resources NL (ASX: MEI) has skyrocketed in 2023, but what could be ahead for the explorer?

The Meteoric Resources share price has surged 281% from 5.3 cents at market close on 30 December to its current share price of 20.2 cents. In today’s trade, this ASX rare earths share is sliding 1.46%. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) is 0.03% lower so far today.

Let’s take a look at the outlook for this ASX rare earths share.

What’s ahead?

Meteoric is exploring the Caldeira Rare Earth Element (REE) project in Brazil, a project with 30 licenses.

In an announcement on 1 May, Meteoric advised the project has a maiden mineral resource of 409 million tonnes at 2,626 parts per million (ppm) TREO.

Meteoric described the Caldeira project as the “world’s Highest Grade Ionic Adsorption Clay REE Deposit”.

Argonaut associate dealer Harrison Massey recommends Meteoric Resources as a buy. He noted the company’s global resource estimate and further drilling planned at the Caldeira Project.

Commenting on The Bull, he said:

The company has planned a further 100,000 metres of air core and diamond drilling to target high grade areas within the current resource model. The company is in the process of acquiring further licences surrounding the deposit.

MEI is well capitalised with $A25 million in the bank.

Earlier this month, Meteoric updated the market with a drilling update at the Caldeira Project. Eight of 11 new diamond holes showed a “significant depth extension of the target clay zone beneath the historic auger holes”.

Commenting on the news, executive chairman Dr Andrew Tunks said:

Current drilling indicates an increase in the thickness of the target clay zone of up to 45m beneath the historic auger drilling.

Clearly this shows that there remains considerable potential for additional REE mineralisation beneath the historic drilling.

Share price snapshot

The Meteoric Resources share price has rocketed 1920% in the last year.

This ASX rare earths share has a market cap of about $367 million based on the latest share price.

The post Up 280% in 2023, is the Meteoric Resources share price about to go stratospheric? appeared first on The Motley Fool Australia.

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More reading

• Why 29Metals, Brainchip, Qantas, and Serko shares are falling
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• Wesfarmers share price drops as Silk takeover competition heats up

Motley Fool contributor Monica O’Shea 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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