The National Australia Bank Ltd (ASX: NAB) share price is having a day to forget on Thursday.

The banking giant’s shares were down as much as 8% after posting a half-year result that fell short of expectations for a number of metrics such as earnings and its dividend.

As a reminder, NAB reported a 17% increase in cash earnings to $4,070 million for the six months ended 31 March. While this is certainly strong growth, it was still short of consensus estimates. For example, the market was expecting cash earnings of $4,151 million and Goldman Sachs was forecasting even higher cash profits at $4,227 million.

These softer earnings unfortunately meant that the NAB dividend also fell short of expectations.

The NAB dividend

For the first half of FY 2023, NAB declared a fully franked interim dividend of 83 cents per share.

Once again, while this was up strongly (13.7%) from the prior corresponding period, it was a touch short of expectations. Goldman was forecasting the NAB interim dividend to come in at 84 cents per share for the half.

Though, it is worth noting that with the NAB share price currently trading at $26.92, the bank’s interim dividend still offers a juicy yield of approximately 3.1%.

Want to receive this payout?

If you want to receive the NAB dividend, you will need to ensure that you own the bank’s shares when they trade ex-dividend next week on 10 May.

You will then be able to look forward to receiving the cash payout in two months on 5 July. Unless of course you opt to take part in the bank’s dividend reinvestment plan. The company explains:

The dividend is paid in cash or as part of a dividend plan. Cash dividends are paid by way of direct credit or cash equivalents. The dividend plans in operation are the Dividend Reinvestment Plan and the Bonus Share Plan (closed to new participants). The last date for receipt of election notices for the Dividend Reinvestment Plan and the Bonus Share Plan is 12 May 2023 at 5pm (Australian Eastern Standard time).

The post Everything you need to know about the NAB dividend appeared first on The Motley Fool Australia.

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More reading

• NAB shares dive 8% as EPS downgrades expected
• NAB share price on watch after half-year earnings fall short of expectations
• 4 reasons to buy ASX 200 banks stocks right now
• 3 ASX 200 bank shares to go ‘long and bullish’ on right now
• 5 things to watch on the ASX 200 on Thursday

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 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 my hunt for serial compounders, Resmed CDI (ASX: RMD) shares have made their way onto my watchlist. The company’s share price has flown 16.4% higher since the beginning of the year, but that’s not why the respiratory medical device maker is on my radar.

The real eye-catching aspect of Resmed is its push into a potentially lucrative revenue stream. While there are notable differences, Resmed appears to be executing a play that’s arguably been instrumental in the success of Apple Inc (NASDAQ: AAPL) over the past decade.

So, do I think this growth ingredient is enough to justify the 40 times earnings multiple Resmed shares are fetching?

What is the money-making Apple move?

Most of us know the American tech giant for its sleek and intuitive devices — iPhones, iPads, Macs, etc. These innovative and stylish products have formed the backbone of Apple’s sticky ecosystem as we know it today.

Over time, Apple has embedded itself in the daily lives of its customers, selling products that many of us use day in and day out. In doing so, the company has built up enormous switching costs, which is a type of moat. Financially, it’s hard to justify swapping to a non-iPhone when it means also shelling out for a new smartwatch, wireless headphones, etc.

While the company’s, almost luxury-like, devices generate solid profits, it is the services segment that takes full advantage of the high switching cost.

This segment extracts extremely high-margin revenue from the Apple customer base by monetising the limited number of alternatives (of which there are none at times) to iCloud, the App Store, and Apple Pay among others.

The chart above illustrates how the services segment delivers an outsized boost to gross profits compared to its share of revenue. Simply put, the near-zero cost of providing services — which are mostly just a bit of software — makes this avenue a lucrative one.

Could SaaS revenue make Resmed an ASX 200 outperformer?

Like Apple, Resmed is best known for its physical products. For many, the company’s medical equipment is essential for getting a good night’s sleep — combating sleep apnea and insomnia with their continuous positive airway pressure (CPAP) machines.

However, Resmed has been quietly building another source of revenue… Software as a Service (SaaS). What is noticeably different from Apple is that it appears most of this revenue is derived from clinical-facing software rather than consumer-facing.

At present, ASX-listed Resmed’s solutions encompass Brightree, MatrixCare, Healthcarefirst, CitusHealth, and Medifox Dan. Generally, these solutions are geared towards streamlining processes for healthcare workers.

Nevertheless, the segment has grown rapidly in recent years. Between Q3FY21 and Q3FY23, SaaS revenue increased 45.8% to $136.8 million. Still, this fast-growing division only represents roughly 12% of total revenue.

Where Resmed possibly departs from Apple’s storyline is its relationship between the software/services and its key products.

Personally, I’d be more excited if Resmed leveraged its SaaS expertise to derive higher revenue from its medical device customers. Perhaps that is the endgame of the Resmed team. From my perspective, that would make use of the high switching cost of its products, implementing the Apple strategy.

Until then, Resmed will probably stay on my ASX watchlist.

The post On my ASX watchlist: Is Resmed borrowing Apple’s multi-billion-dollar playbook? appeared first on The Motley Fool Australia.

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More reading

• Leading brokers name 3 ASX shares to buy today
• Why Perenti, Pointsbet, ResMed, and Telix shares are rising today
• 3 things ASX investors should watch this week
• ResMed share price higher on Q3 ‘solid beat’
• Better ASX 200 healthcare share: CSL vs. Resmed

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 Apple and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. The Motley Fool Australia has recommended Apple. 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 this week, the Reserve Bank of Australia (RBA) raised interest rates yet again. It was the 11th rise in the past 12 months. With rates now well and truly above the near-zero levels we had become used to, cash investments like term deposits are a lot more appealing today than they were a year ago. So let’s check out whether investors in the Vanguard Australian Shares Index ETF (ASX: VAS) might be better off switching to cash. 

The Vanguard Australian Shares ETF is the most popular index fund on the ASX. This exchange-traded fund (ETF) allows investors to gain exposure to the S&P/ASX 300 Index (ASX: XKO). In essence, it is an investment in the largest 300 public companies listed on the Australian share market.

Thus, an investment in the VAS ETF can be thought of as an investment in the ASX itself.

This was a very appealing investment when interest rates were near-zero across 2020 and 2021. You got exposure to the compounding capital growth of shares, as well as the dividends and franking credits that this ETF passes through to its investors. In contrast, a term deposit would get you a 1% yield on your money, if you were lucky.

But today, the tables have turned. A term deposit can get you as much as a 5% annual return on your money right now. And that’s before the latest interest rate rise has filtered through.

And a term deposit comes with none of the volatility that the share market brings. If you lock your money up for 12 months at a 5% interest rate, it’s guaranteed to be there when you come back for it.

In contrast, a sharemarket-based index fund like the Vanguard Australian Shares ETF comes with no guarantees. There’s no guarantee that you’re capital will be safe. And there’s no promise that last year’s dividends will match this year’s.

With all that in mind, does a term deposit make for a better investment than the VAS ETF today?

Should investors just choose a term deposit over Vanguard’s VAS ETF?

Well, it depends. If you’re a retiree, where preservation of capital is more important than anything else, then perhaps a term deposit would suit your goals better. 5% isn’t a bad yield, exceeding what many ASX dividend shares offer. It certainly has the potential to offer some meaningful cash flow.

But for other investors who might have a higher tolerance for risk and share market volatility, the Vanguard Australian Shares ETF might still be a better option for one simple reason: the potential returns.

The Vanguard Australian Shares ETF has a long history of delivering returns that well exceed 5% per annum. As of 31 March, the VAS ETF has returned an average of 8.06% per annum over the past decade, and 8.88% per annum since its inception in 2009. Those returns include dividends.

Now, past performance is no guarantee of future success, of course. But a general rule of investing is that lower risk equates to lower returns. ASX-based ETFs have always outperformed cash investments over long periods of time, as we have discussed here at the Fool on many occasions.

So if I had the choice between putting the majority of my wealth in term deposits or ASX shares, I would choose ASX shares every time. Cash is great for emergencies and for funding living expenses. But not much else.

 

The post Better investment: Vanguard Australian Shares ETF (VAS) or a term deposit? appeared first on The Motley Fool Australia.

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More reading

• My 5-step plan to achieving $500 in monthly passive income
• If you’d invested $5,000 in the Vanguard Australian Shares Index ETF (VAS) after the COVID crash, here’s much you’d have now
• 5 dividend shares I think are among the safest on the ASX
• I think this underrated reason is key to why ETFs can be great investments
• The Vanguard Australian Shares Index ETF dividend is being paid today. Here’s the lowdown

Motley Fool contributor Sebastian Bowen has positions in Vanguard Australian Shares Index ETF. 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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CSL Limited (ASX: CSL) shares have dipped beneath the $300 watermark over the past two days.

The CSL share price is currently $299.51, down 0.03% for the day so far.

The ASX 200 blue chip share has recorded large fluctuations in price over the past 12 months.

Its lowest trading price over the period is $254.30, recorded in June last year.

Its 52-week high is $314.28, recorded in February.

Is it time to buy?

Are CSL shares a buy under $300?

The analysts at Citi certainly think so. They currently have a buy rating on CSL shares and a 12-month price target of $350. That implies a potential 17% upside from here.

Macquarie has an outperform rating on CSL shares with a 12-month price target of $344.

CSL shares once again feature on Morgans’ best ideas list this month.

The broker has given the ASX 200 biotech share an add rating and a $337 share price target.

The broker says CSL is a buy due to its significantly improved outlook and attractive valuation.

Morgans says:

A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long-term forward multiple of ~30x.

Analysts impressed by company’s European tour

CSL shares outperformed the ASX 200 in April, rising 4.3%. The ASX 200 rose by 1.8%.

As my Fool colleague James reported, CSL conducted a European investor site tour at the end of March.

Morgan Stanley responded to the tour by reiterating its overweight rating and $339 price target.

Goldman Sachs was also at the event and said:

… CSL is now well positioned for a medium-term period of less capital-intensive growth (supporting our views that the current ROIC [return on invested capital] trough should markedly improve from here).

What about dividends?

Another Fool writer, Sebastian suggests CSL shares are a ‘sleeping dividend giant‘.

He points out that the annual dividend has risen by a cumulative 96.5% between 2014 and 2022.

The biotech has just paid investors an interim dividend of US$1.07 per share. That’s up from US$1.04 per share in 2022.

If the company continues increasing its dividends at the same pace as the 2014 to 2022 period, shareholders stand to receive US$4.36 per share by the year 2030.

That’s $6.52 per share in Australian dollars at today’s exchange rate.

The post Should I buy up CSL shares right now while they’re under $300? appeared first on The Motley Fool Australia.

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More reading

• The US Fed just lifted rates again. Here’s how the ASX 200 is responding today
• Morgans names the best ASX 200 stocks to buy in May
• 4 reasons to buy ASX 200 banks stocks right now
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Bronwyn Allen has positions in CSL and Macquarie Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Macquarie 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 S&P/ASX 200 Materials Index (ASX: XMJ) is rising 1.29% today, but this ASX mining stock is charging far higher.

The Caspin Resources Ltd (ASX: CPN) share price gained 61% to hit an intraday high of 47.5 cents. It’s currently settled at 37.5 cents a share, up 27.1%.

Let’s take a look at what this ASX mining stock has discovered.

What’s going on?

Caspin advised the market today it has made a “ground breaking” rare earths discovery at the Mount Squires Project in Western Australia.

The company observed significant rare earth element mineralisation at the project, located in the West Musgrave region of the state.

Assay results showed:

• 46m at 0.71% TREO (total rare earth oxides) from 32m including 1.25% TREO from 48 metres at hole MSAC0141
• 19m at 0.41% TREO from surface including 4m at 0.80% TREO from 8m at drill hole MSAC0224
• 7m at 0.32% TREO from surface including 2m at 0.57% TREO from 5m to EOH at drill hole MSAC0130
• 10m at 0.14% TREO from 36m at drill hole MSAC0139

The company noted a high proportion of heavy (dysprosium and terbium) and light rare earth elements (neodymium and praseodymium).

This may be the first discovery of “significant rare earth element” mineralisation in the West Musgrave region, according to Caspin.

Commenting on the news, CEO Greg Miles said:

This is a sensational discovery given the tiny scale of the assay program. The Company has long recognised the conceptual potential for rare earth mineralisation at the Mount Squires Project, but given the more obvious prospectivity for nickel, copper and gold this potential had not been investigated until now.

We’ve now made a significant rare earth discovery, of a relatively unique style in Australia, in a province with no previous systematic exploration for rare earths

The company has so far assayed 37 samples from four holes and there are further results pending. The next drill program will test extensions and enable the company to gather samples for metallurgical test work.

Share price snapshot

Today’s news is a welcome boost. The Caspin Resources share price has shed 49% in the last year.

This ASX mining stock has a market capitalisation of about $34.9 million based on the latest share price.

The post Guess which ASX mining stock is rocketing 27% on a ‘ground breaking rare earth discovery’ appeared first on The Motley Fool Australia.

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More reading

• ‘Additional growth options’: Why the Northern Star share price is flying today
• 3 ASX ETFs cracking new 52-week highs on Thursday
• ASX 300 lithium stock Vulcan Energy halted amid cap raise
• Woodside share price lifts amid wild oil price swings today
• What’s the outlook for the Pilbara Minerals share price in May?

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 Northern Star Resources Ltd (ASX: NST) share price is up 2.88% in afternoon trade.

Shares in the S&P/ASX 200 Index (ASX: XJO) gold stock closed yesterday trading for $13.55. Shares are currently changing hands for $13.94 apiece.

This comes despite a 0.16% intraday decline in the ASX 200, with some stocks feeling the pinch following the latest interest rate hike from the US Fed.

The Northern Star share price, however, looks to be getting a boost on two fronts today.

First, the gold price is on a tear.

On Monday, bullion was trading for US$1,982.56, according to data from Bloomberg.

After another overnight boost, today that same ounce is trading for US$2,042.15, a gain of more than 3%.

And the Northern Star isn’t the only gold stock rising alongside the yellow metal.

The S&P/ASX All Ordinaries Gold Index (ASX: XGD) is up 2.1% today.

What else are ASX 200 investors considering?

The second tailwind for the Northern Star share price today looks to be related to the miner’s Annual Mineral Resource and Ore Reserve update for the 12 months ending 31 March.

The company’s gold mines are located in Western Australia and the US state of Alaska.

Likely piquing investor interest, the ASX 200 gold stock reported a 3.5 million ounce increase in its mineral resource to 57.4 million ounces.

The miner said this growth underscores the value of the investments in its sustained exploration program.

The increased mineral resource offset mine depletion and divestments over the year, leaving the total ore reserve stable at 20.2 million ounces.

Northern Star said it had also slightly increased its “conservative long-term gold price assumptions” to reflect increased costs across the sector.

Commenting on the results helping drive the Northern Star share price higher today, managing director Stuart Tonkin said:

Northern Star’s three production centres – Kalgoorlie, Yandal and Pogo – come with incredible and genuine world-class mineral endowments that provide us with the confidence to plan organic and profitable growth of the company’s production footprint.

Tonkin highlighted the Kalgoorlie district, where he said the Hercules discovery provides “a good example of this type of new find that will provide us with additional growth options”.

Northern Star share price snapshot

The Northern Star share price has been a strong outperformer over the past 12 months, up 48%. So far in 2023, the ASX 200 gold stock has gained 26%.

The post ‘Additional growth options’: Why the Northern Star share price is flying today appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
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• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Monday
• 2 ASX 200 gold stocks just downgraded by brokers (and one upgraded)

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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It’s a good day to be invested in these three ASX exchange traded funds (ETFs) as they surge to trade at their highest prices in more than a year.

Eagle-eyed investors might notice a common theme between them.

3 ASX ETFs posting 52-week highs today

The Global X Physical Gold (ASX: GOLD) unit price soared 2.2% earlier today to peak at a record high of $28.65.

Meanwhile, that of Betashares Gold Bullion ETF – Currency Hedged (ASX: QAU) jumped 2.1% to reach $17.61 – the highest it’s been in nearly two years.

Simultaneously, the unit price of Global X Physical Silver (ASX: ETPMAG) soared 2.5% to a near-12-year high of $36.17 this morning.

As the name suggests, the three ETFs are backed by physical holdings of precious metals. They seek to provide returns correlated to the prices of either gold or silver bullion.  

What’s driving the funds sky high?

The value of the two metals has been soaring lately amid what appears to be continued concerns of inflation and rising interest rates. Not to mention, worries of broader economic stability.

Such concerns are likely turning investors towards traditional inflation hedges and safe haven assets like gold and silver.

The United States Federal Reserve hiked interest rates in the globe’s largest economy by 0.25% overnight. Its offical rate now sits in the range of 5% to 5.25%. It follows the broadly surprising 0.25% hike instigated by the Reserve Bank of Australia earlier this week. That brought our official cash rate to 3.85%.

Additionally, the banking crisis that took the world by storm in March has reared its head once more.

Shares in PacWest Bancorp (NASDAQ: PACW) are down more than 50% in after-hours trade after Bloomberg reported the bank is weighing its options, including a sale, following the collapse of rival lenders. That may have made gold and silver more attractive to risk-averse investors, as it did earlier this year.

The going rate of silver hit a 12-month high of US$26.16 an ounce overnight, according to CNBC. It’s a similar story for gold, which is nearing its April high, peaking at around US$2,085 an ounce.

Of course, that’s good news for the unit price of the three ASX ETFs and those invested in them.

The post 3 ASX ETFs cracking new 52-week highs on Thursday appeared first on The Motley Fool Australia.

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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 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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Vulcan Energy Resources Ltd (ASX: VUL) shares are going nowhere today after the company requested a trading halt and announced a capital raising.

The S&P/ASX 300 Index (ASX: XKO) lithium stock is frozen at yesterday’s closing price of $6.16.

Vulcan aims to become the world’s first lithium producer with a net zero carbon footprint, using no fossil fuels in its production.

It also aims to co-produce mass-scale renewable geothermal energy to contribute to Europe’s decarbonisation.

Let’s look at the details of the capital raising.

ASX 300 lithium share halted amid $109 million cap raise

Vulcan shares remain frozen amid the company launching a fully underwritten single-tranche placement to sophisticated and institutional investors to raise $109 million.

Vulcan will issue 21.4 million new fully paid ordinary shares at $5.10 per share. This represents a 17.2% discount to the last traded price of $6.16.

Placement proceeds will be used to buy long lead items for the construction of phase one of its Zero Carbon Lithium Project in Germany’s Upper Rhine Valley, as well as other purposes.

Vulcan hopes to commence phase one operations and production by the end of CY25.

Vulcan released an equity presentation and a copy of its international offering circular today.

The new Vulcan shares will commence trading on 15 May.

What else is going on with Vulcan shares?

Vulcan released its March quarter activities report and cash flow report, as well as a corporate presentation, last week.

Vulcan shares rose 3.8% on the reports.

Vulcan finished the quarter with 112 million euros in cash and equivalents, with funding for 10.2 quarters ahead.

The highlight of the quarter was the completion of Vulcan’s definitive feasibility study (DFS) for phase one of its commercial development.

This follows two years of successful operations at its pilot plant, proving its processes can produce lithium with zero fossils and a net zero carbon footprint.

The company says 2023 will be a “transformational year at Vulcan”.

Vulcan will conduct its annual general meeting in Perth on 29 May.

The post ASX 300 lithium stock Vulcan Energy halted amid cap raise appeared first on The Motley Fool Australia.

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• Woodside share price lifts amid wild oil price swings today
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• Why did the Coles share price underperform the ASX 200 Index in April?
• Are AGL shares the most underrated ASX 200 stock opportunity?
• NAB shares dive 8% as EPS downgrades expected

Motley Fool contributor Bronwyn Allen 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 Woodside Energy Group Ltd (ASX: WDS) share price is up 0.66% today.

Shares in the S&P/ASX 200 Index (ASX: XJO) oil and gas stock closed yesterday trading for $32.63. Shares are currently changing hands for $32.845 each.

That’s quite a strong performance from the Woodside share price today after crude oil prices fell again overnight, marking the third consecutive day of losses.

The drop in WTI and Brent Crude oil prices sent both crude benchmarks down to their lowest levels in more than a year.

Brent crude fell to US$71.64 per barrel overnight, down 10% from the US$79.31 per barrel it was trading for on Monday.

Though even as I pen this, crude looks to be rebounding.

Brent is currently trading for US$73.29, which would explain the support for the Woodside share price today.

Why is the oil price under pressure?

Less than a month ago, on 12 April, Brent crude was trading for US$87.33 per barrel. At that time, the Woodside share price stood at $34.52.

The oil price has come under pressure since then amid growing concerns about a potential global recession, which would see reduced energy demand from consumers and businesses.

Nor has the big boost in energy demand expected from China’s reopening panned out in line with bullish expectations.

On the supply side, the recently announced supply cuts from OPEC+ have so far failed to boost oil prices. That’s in part due to Russia, whose oil exports remain elevated despite global sanctions and the nation’s pledge to its OPEC partners to cut output.

And in the world’s biggest economy, the US Energy Information Administration reported an increase in fuel supplies and lower petrol demand.

“The most notable thing is that gasoline demand gave back all of the increases that we’d seen in previous weeks,” president of Lipow Oil Associates Andrew Lipow said (as quoted by Reuters).

As if that wasn’t enough to pressure the oil price, the US Fed increased interest rates yet again yesterday, raising concerns of an economic downturn and diminished demand.

Yet, while that sees the ASX 200 in the red today (down 0.17% at the time of writing), the Woodside share price remains resilient.

What’s next for oil and the Woodside share price?

As the world’s most watched central bank, the Fed has a lot of influence on future oil prices.

One of the positive notes that emerged yesterday was that the Fed omitted its previous language saying it anticipated further interest rate hikes ahead. Instead, the Fed now said it “will closely monitor incoming information and assess the implications for monetary policy”.

That could see the oil price move higher, according to Price Futures Group analyst Phil Flynn. This would offer further tailwinds for the Woodside share price.

“The Fed going into a pause mode should be very supportive for the price of oil,” Flynn said.

And while Morgan Stanley lowered its forecast for Brent prices to US$75 a barrel by the end of 2023, that’s still above current levels.

According to Morgan Stanley (courtesy of Reuters):

Downside risk to Russia’s supply and upside risk to China’s demand have largely played out and prospects for 2H tightness have weakened.

The post Woodside share price lifts amid wild oil price swings today appeared first on The Motley Fool Australia.

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More reading

• Why Amcor, oOh!Media, Ramsay, and Woodside shares are falling today
• What went down for the Woodside share price in April?
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• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 energy shares to fall after oil prices collapse

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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The Pilbara Minerals Ltd (ASX: PLS) share price is in the green year to date, but what is the outlook in May?

Pilbara shares have risen 13% since the start of the year and are now trading at $4.245. In today’s trade, Pilbara shares are up 1.07%.

Let’s take a look at the outlook for the Pilbara share price.

What’s ahead?

Pilbara’s share price in May could be impacted by a variety of factors including the lithium price, any price-sensitive updates from the company and broker coverage.

Pilbara produces lithium from its 100% owned Pilgangoora Project, near Port Hedland in Western Australia’s Pilbara region.

The company is increasing production capacity at the mine with an aim of producing 1 million tonnes per annum by 2025.

Analysts at Macquarie have recently placed an outperform rating on Pilbara shares with a $7.70 price target. This implies an upside of 81% based on the current share price.

The team at Macquarie noted the miner is delivering plenty of free cash flow from its operations. Macquarie is also predicting Pilbara’s dividend could be 42 cents per share in FY 2023.

Outlook for the lithium price will depend on demand and supply. Chile has recently announced a policy to nationalise lithium, which may impact supply from the country.

Commenting on the outlook for lithium in a recent report, ANZ commodity strategists Daniel Hynes and Soni Kumari said:

The outlook for the EV sector remains strong. We expect these latest supply side issues to reignite supply concerns, leading to a rebound in prices.

US lithium producer Livent Corp (NYSE: LTHM) recently expressed optimism on the lithium price during a quarterly conference call. Livent CEO Paul Graves sees strong demand for lithium “outside China, especially in Japan and South Korea”, Reuters reported. He said:

The spot market in China is not reflective of the entire market. We have not reduced our lithium demand expectations for 2023.

We are absolutely not demand constrained, but we are absolutely supply constrained.

Pilbara reported a cash balance of $2.6 billion in the March quarter, up 21% on the previous quarter. Shipments fell 3% to 144,312 dry metric tonnes of spodumene concentrate. The company declared a maiden fully franked interim dividend of 11 cents per share.

Pilbara Minerals share price snapshot

The Pilbara Minerals share price has returned 61% in the past year.

Pilbara has a market cap of about $12.73 billion based on the latest closing share price.

The post What’s the outlook for the Pilbara Minerals share price in May? appeared first on The Motley Fool Australia.

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More reading

• 2 ASX 200 lithium shares to buy for $100 monthly passive income each
• Here are the top 10 ASX 200 shares today
• Why Flight Centre, Jumbo, Pilbara Minerals, and Ramelius shares are charging higher
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• What’s the forecast for the lithium price in May?

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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