Bank of Queensland Ltd (ASX: BOQ) shares have suffered through a rocky five years, falling 38% in that time.

Looking back, an investor who sunk $2,000 into the S&P/ASX 200 Index (ASX: XJO) bank stock in April 2018 likely would have received 206 shares, paying $9.67 apiece.

Today, that holding would be worth $1,240.12. The Bank of Queensland share price last traded at $6.20.

For comparison, the ASX 200 has gained 23% over the last five years.

But have the not-quite-big-four bank’s dividends made up for its share price’s disappointing performance? Let’s take a look.

Dividends paid to holders of Bank of Queensland shares since 2018

Here are all the dividends paid to those invested in Bank of Queensland shares since April 2018:

BOQ dividends’ pay date	Type	Dividend amount
November 2022	Final	24 cents
May 2022	Interim	22 cents
November 2021	Final	22 cents
May 2021	Interim	17 cents
November 2020	Final	12 cents
November 2019	Final	31 cents
May 2019	Interim	34 cents
November 2018	Final	38 cents
May 2018	Interim	38 cents
		$2.38

That’s right, each Bank of Queensland share has yielded $2.38 of dividend income over the last five years. That means our figurative parcel has likely borne $490.28 of passive income over its lifetime.

Considering both share price movements and dividends, the return on investment (ROI) offered by the bank stock since April 2018 comes to a 13% loss.

Though, it’s also worth noting that all dividends provided to Bank of Queensland investors in that time have been fully franked. Thus, they may have brought additional benefits for some shareholders come tax time.

The company’s next dividend will be worth 20 cents per share and is set to be paid in early June. The stock will trade ex-dividend on 10 May.

Right now, Bank of Queensland shares trade with a notable 7.64% dividend yield.

The post Bought $2,000 of Bank of Queensland shares five years ago? If so, here’s how much dividend income you’ve earned appeared first on The Motley Fool Australia.

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More reading

• Lowest ASX bank yield: Are CBA shares still worth it?
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• Everything you need to know about the latest Bank of Queensland dividend

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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Looking for a growth share or maybe two to buy? If you are, you may want to look at the two listed below that have been named as buys by Morgans.

Here’s why the broker believes they are buys:

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel Management could be an ASX growth share to buy right now according to Morgans. It is a provider of innovative and cost-effective travel management solutions to the corporate market.

Morgans has been positive on the company for a while and recently boosted its valuation to reflect a major contract win. The broker expects this to support its organic growth and margin profile. It commented:

This material win for CTD is a strong endorsement of the quality of its service offering and its ability to manage complex travel requirements. Importantly it underpins strong organic growth and should increase CTD’s margins and return profile. Following forecast upgrades and applying slightly higher multiples, our blended valuation has risen to A$24.00 from A$21.90. We maintain an Add rating on CTD and see the next catalysts for the stock being trading updates via broker conferences in May and hopefully retaining the Whole of Australian Government (WoAG) contract, which expires on 30 June 2023 and is currently up for tender.

Morgans has the company’s shares on its best ideas list with an add rating and $24.00 price target. This suggests potential upside of almost 15% from current levels.

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Another ASX growth share that could be in the buy zone right now according to Morgans is pizza chain operator, Domino’s.

Although the broker was very disappointed with the company’s performance during the first half of FY 2023, it feels that investors should stick with it. Particularly given its attractive valuation and strong long-term growth potential, which is being underpinned by its store expansion plans. It commented:

Despite the evident disappointment of the 1H23 result, we had anticipated this result could be a negative one for sentiment. We didn’t expect the shares to fall as much as they did, however, and even with significantly lower earnings estimates for FY23 and FY24 and a significantly lower target price, there is enough upside to our target to keep us on an Add. But our faith is shaken.

Morgans has an add rating and $70.00 price target on its shares. Based on the current Domino’s share price of $51.72, this implies potential upside of 35% for investors.

The post These ASX 200 growth shares could generate big returns: broker appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. 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 Corporate Travel Management and 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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Westpac Banking Corp (ASX: WBC) shares will be worth watching closely next month.

That’s because the banking giant is scheduled to release its half-year results on 8 May.

Ahead of the release, let’s take a look to see what the market is expecting from Australia’s oldest bank.

What is expected from Westpac’s half-year results

There will be three key metrics for investors to look out for when Westpac releases its results. These are its cash earnings, dividend, and its net interest margin (NIM).

In respect to the former, analysts at Goldman Sachs are expecting Westpac to report cash earnings (before one-offs) of $3,781 million. While this will be a touch short of the consensus estimate of $3,788 million, it will still be a sizeable 22.2% increase on the prior corresponding period.

As for its dividend, the broker has pencilled in a fully franked interim dividend of 72 cents per share. This will be an 18% increase from FY 2022’s interim dividend of 61 cents per share.

Finally, all eyes will be on the bank’s NIM. Goldman spoke at length about its margins and revealed that it expects Westpac’s NIM to increase to 2.03% for the half. It said:

WBC’s 2H22 NIM was up 5 bp hoh to 1.90% (ex Treasury & Markets at 1.80%) and we note that WBC’s exit NIM (ex Treasury & Markets) for the month of Sep-22 was 1.85%. WBC expects the 1H23 NIM (ex-Treasury and Markets) to be higher than the Sep-22 exit and higher again in 2H23 albeit with a moderating hoh increase. With deposit competition currently being a key area of focus, we will be keen to get an update on how current levels of deposit repricing have impacted mix shifts, and what WBC’s expectations are around competition going into 2H23. We currently forecast 1H23E NIMs to increase +13 bp hoh to 2.03%.

Are Westpac shares good value?

Goldman sees plenty of value in Westpac shares at the current level. It currently has a conviction buy rating and $25.86 price target on them.

So, with the bank’s shares trading at $22.25, this implies potential upside of 16% for investors over the next 12 months.

In addition, the broker expects an attractive dividend yield. It is forecasting a fully franked full-year dividend of $1.44 per share. This implies a 6.5% yield for investors, boosting the total potential return from Westpac shares to beyond 22%.

The post Own Westpac shares? What to expect from its half-year results appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Westpac Banking. 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 Westpac Banking. 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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Now could be the time to snap up Telstra Group Ltd (ASX: TLS) shares.

That’s the view of analysts at Goldman Sachs, which have just reiterated their buy rating on the telco giant’s shares with an improved price target.

According to the note, the broker has lifted its valuation to $4.70, which implies potential upside of 9.3% for investors over the next 12 months.

It is also forecasting a 4% dividend yield in FY 2023, boosting the total potential return beyond 13%.

What did Goldman say about Telstra shares?

Goldman Sachs highlights that Telstra’s mobile pricing across prepaid and JB Hi-Fi Limited (ASX: JBH) has been lifted meaningfully ahead of its postpaid pricing review.

It believes this is a sign that the telco will increase its prices by the full CPI rate, which is more than it was expecting. And while this won’t be good news for consumers, the broker expects it to give Telstra’s earnings a boost. It explains:

Following recent (and significant) mobile prices changes from Telstra (Prepaid, JB-HiFi), we now believe they are more likely to fully utilize CPI (GSe +7% in Mar-23) at the upcoming postpaid mobile price review – raising plan pricing by c.$4-6/m. This is ahead of our prior forecast for a c.$2-3/m, so drives our FY24-25E EBITDA +1.6%/+1.1% and EPS +4%/+2% (higher pricing, partly offset by lower postpaid sub growth).

Ahead of the July price rise, Telstra needs to ensure that its postpaid/prepaid premium is correctly managed, to prevent significant ‘spin-down’ to prepaid (noting stronger prepaid SIO growth in 1H23). Hence the announced $5 increase on Prepaid plans in July provides scope to increase postpaid plans by $4/m (or CPI), while keeping the postpaid/prepaid premium below its historical +41% average (+$4 increase results in +38% premium).

In light of the above, Goldman Sachs believes that the market is underestimating the company’s mobile earnings growth. As a result, it sees the upcoming price increase announcement as a potential catalyst to driving Telstra shares higher. It concludes:

Ultimately, we continue to believe consensus mobile forecasts look conservative, and now sit +3% ahead of FY24 postpaid ARPUs. We expect updated mobile pricing expected to be announced in coming weeks (to give sufficient notice to the Jul-23 introduction), which should be positively received. We re-iterate our Buy rating on Telstra, and increase our 12m TP to $4.70, in-line with earnings.

The post Here’s why Goldman Sachs just became even more bullish on Telstra shares appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Jb Hi-Fi. 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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After a hectic 2022, the energy industry is expected to enjoy continued hot demand this year.

The war in Europe is still going, and the transition to renewable energy requires years for infrastructure to be built and brought online.

That means ASX shares of existing energy producers will cash in.

Marcus Today equity analyst Damien Shaw this week helpfully picked out two S&P/ASX 200 Index (ASX: XJO) energy stocks he would buy into right now:

‘Optimistic’ this gas producer will meet its targets

Shaw is a fan of Beach Energy Ltd (ASX: BPT) even though the company’s third-quarter production dropped 5%.

“The decrease can be attributed to planned and unplanned outages,” Shaw told The Bull.

“Guidance remains on target. Progress is continuing at the Waitsia gas plant, with first gas targeted by the end of 2023.”

The balance sheet is “robust”, he added.

“We remain optimistic that Beach Energy will achieve its full year production targets, supported by expanding existing projects and a new gas plant.”

The Beach Energy share price has fallen 5.4% year to date, while paying out a 2% dividend yield.

Shaw’s peers seem to largely agree with his bullishness for the gas producer.

According to CMC Markets, 13 out of 19 analysts currently rate Beach as a buy.

‘It’s presented a buying opportunity’

Karoon Energy Ltd (ASX: KAR) has also experienced recent hardships, seeing its stock price dive more than 11% over the past 10 days or so.

“The oil and gas producer recently suspended production at its Bauna project in Brazil. Also, the Brazilian Government announced a tax increase on oil exports,” said Shaw.

“These events caused the stock price to marginally slip.”

But for those investing with a long-term horizon, the dip is an incentive to dive in right now.

“In our view, it’s presented a buying opportunity, as Karoon Energy offers strong management and high growth potential.”

The short-term crash hasn’t impacted longer-term performance too badly. Karoon is only down 1.8% year to date, and has actually gained 5.9% over the past 12 months.

Again, many other professionals also reckon Karoon is headed up. Nine out of 11 analysts currently surveyed on CMC Markets rate it as a buy.

The post ‘High growth potential’: 2 ASX 200 energy shares to buy this week appeared first on The Motley Fool Australia.

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

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Flight Centre Travel Group Ltd (ASX: FLT) shares were known as an attractive ASX dividend share before the COVID-19 pandemic occurred and smashed the global travel sector. Could the good times return for passive income?

The signs are certainly looking positive for the ASX travel share, with Flight Centre generating $95 million of underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in the first half of FY23, beating its initial target of between $70 million to $90 million.

That represented a $280 million turnaround from the FY22 first-half loss.

The company reported that its first-half total transaction value (TTV) increased by 203% to $9.9 billion and tracked at 80% of the record FY20 first-half result. The corporate business is delivering record TTV and was “set to top $10 billion during FY23”.

Flight Centre has targeted a 2% underlying profit before tax (PBT) margin by the end of FY25 and said there were positive margin trends.

Is this good news for Flight Centre dividends?

The ASX travel share didn’t declare an interim dividend. Flight Centre said:

The company has initiated a review of its capital structures ahead of an anticipated uplift in earnings and cash generation. The review will consider the business’ cash requirements to fund growth, shareholder returns and debt structures, including FLT’s convertible notes.

Commsec estimates currently suggest that there will be no dividend from the company in 2023.

But, in the 2024 financial year, projections on Commsec indicate that Flight Centre might pay an annual dividend per share of 30.8 cents.

Then, in the following year (FY25), it might pay an annual dividend per share of 64.5 cents per share. Now, that payment would be lower than what was paid per share in FY10, so there’s a long way to go for the business’ payouts to get back to former heights.

Will earnings keep rising?

Projections are just an educated guess, but the forecasts on Commsec suggest that earnings per share (EPS) could be 30.9 cents in FY23 and by FY25, it could be $1.23.

The company suggested that through its “diverse global leisure and corporate networks, Flight Centre is also well placed to capitalise on pent-up demand as travel continues to recover towards pre-pandemic levels.”

In FY23, Flight Centre is targeting underlying EBITDA of between $250 million to $280 million. It’s expecting improving profit margins and will consider acquisitions to fast-track growth in sectors that it is under-represented in or to secure new models, revenue streams, systems or technology.

When it announced its result on 22 February 2023, the company said it continued “to monitor trading conditions globally but has not seen any noticeable impacts on customer trading patterns as a result of changing macroeconomic dynamics”.

Things are looking promising for the ASX travel share over the next couple of years.

The post When will my Flight Centre shares start paying income again? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel 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 A2 Milk Company Ltd (ASX: A2M) share price could come under pressure on Wednesday.

This is because the infant formula company has just released an update, which reveals that trading conditions have not been favourable in the daigou channel.

A2 Milk share price on watch following shock update

This morning, A2 Milk responded to the release of an update from its dairy processing partner, Synlait Milk Ltd (ASX: SM1).

That update revealed that Synlait Milk has downgraded its full-year earnings guidance by NZ$20 million less than a month after releasing it to the market. It now expects its earnings to be in the range of a NZ$5 million loss to a NZ$5 million profit.

Management blamed this largely on “further advanced nutrition demand reductions, mostly from one of Synlait’s customers, which impact consumer-packaged infant formula volumes and base powder production.”

A2 Milk response

In response to this announcement, A2 Milk has revealed that it has lowered its total forecast production volume needs for English label consumer-packaged infant milk formula by ~1,650 metric tonnes for the period March through to June.

There were three reasons for this reduction. These are significant daigou weakness, inventory buildup, and distribution model adjustments. It explained:

This is mainly due to: continued weakness in the ANZ Daigou / reseller market which is down 49% in the most recently reported quarter from Kantar; the impact of significant cumulative delays in English label consumer-packaged IMF deliveries from Synlait to a2MC over an extended period expected to be fulfilled in 4Q234 resulting in a material amount of inventory arriving within a relatively short period which needs to be managed; and ongoing refinement of the Company’s English label distribution model resulting in more customers and distributors being supplied directly out of Hong Kong and China leading to lower future a2MC and channel inventory requirements.

Guidance unchanged

Despite the above, A2 Milk has reaffirmed its previous guidance for FY 2023.

It continues to expect FY 2023 revenue growth in the low-double digits, with softer English label infant formula sales to be partially offset by continued strong double-digit growth in China label revenue. Though, it does concede that its revenue growth is likely to be at the low end of its previous expectations (ie 10% growth).

Finally, A2 Milk’s EBITDA margin as a percentage of sales is still expected to be similar to FY 2022.

The question now, though, is what will demand look like in FY 2024 and is its inventory buildup a sign of tough times and inventory write-offs ahead? Time will tell.

The post A2 Milk share price on watch following worrying update appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. 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 downfall of ASX growth shares over the past 18 months has meant many investors have flocked to the safety of dividend stocks.

However, a high yield does not necessarily make a great investment.

This is because a stock might offer outstanding dividend yields because its valuation has fallen. And a point-in-time yield percentage does not say anything about the future prospects of the business.

So in order to pick an income-producing stock that also has sound business fundamentals, the yield might need to come down a tad from the highest on offer.

8% dividend with excellent growth? Yes, please

SG Fleet Group Ltd (ASX: SGF) is not a name often spoken about, but the company currently offers a chunky dividend yield of 8.15%.

The Sydney company, with a market capitalisation of around $660 million, provides fleet management services.

With a resurgence in private transport since the emergence of COVID-19, the company has posted an impressive performance in recent times.

In fact, during February’s reporting season, SG Fleet shares rocketed 10% in just a couple of hours after posting a 41% leap in half-year profit.

“We have demonstrated the strength of our competitive position and our ability to turn the steady stream of new business opportunities into further customer wins and vehicle orders,” the company announced at the time.

Add to that a 100% franked dividend stream, and you have yourself a handsome income stock in your portfolio.

Another bonus is that currently, the share price is trading about 23% lower than it was a year ago, presenting a tempting buying opportunity.

On CMC Markets, all four analysts covering the fleet manager rate the stock as a buy.

Rules are changing for more efficient vehicles 

Earlier this month, finance expert and accountant John-Louis Judges named SG Fleet as a stock that’s set to benefit from a changing Australian economy.

“Recent changes to the fringe benefits tax for electric and low-emission vehicles in Australia have made it more attractive to lease rather than buy these vehicles, benefiting SGF’s business model,” Judges said in The Bull.

“There is an expected increase in demand for SGF’s services following [a] global… shift towards environmentally friendly vehicles.”

He noted how the company operates in Australia, New Zealand, and the United Kingdom.

“SGF’s global spread indicates a diversified revenue stream, and allows them to weather any economic downturns or market volatility,” he said.

“SGF’s ability to adapt to changing market conditions and strong financial performance make it a sound investment choice for investors who may be looking for long-term growth.”

The post My top high-yield ASX dividend stock to buy in 2023 appeared first on The Motley Fool Australia.

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

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Growing shareholder wealth by 50 times in a single lifetime is something very few listed companies can attest to. Believe it or not, ASX healthcare share Pro Medicus Limited (ASX: PME) has achieved this since listing back in the year 2000.

Fast forward to the past year, and the medical imaging software company is still putting the S&P/ASX 200 Index (ASX: XJO) to shame. Shares in the ASX 200 member have flown 27.2% higher, while the benchmark has climbed a lesser 5.5%.

Nevertheless, let’s put the past in the past and focus on what matters most… the future. Assigned with painting the possible path forward, two of our writers have gone to town on whether investing now in Pro Medicus shares makes sense.

Priced to perfection despite a huge rise in interest rates

By Tristan Harrison: Pro Medicus is one of the best businesses on the ASX, in my opinion. Clients seem to love the software offering, it has excellent margins, and recent contract wins have been impressive. I wish I’d bought it a while ago.

Having said that, however, I think a company’s valuation can be a major risk to the investment case. As investors, we’re trying to buy a piece of the profit/cash flow for a price that will reward us in the future.

According to Commsec, Pro Medicus could generate 55.5 cents of earnings per share (EPS) in FY23 and 87.6 cents in FY25. This would put its share price at 113x FY23 and 71x FY25’s estimated earnings.

In a low-interest environment, those would be pricey valuation numbers. Interest rates have shot higher, yet the Pro Medicus share price is where it was at the end of 2021.

But other high-quality ASX shares have fallen hard. Shares in Xero Limited (ASX: XRO), for example, have plunged 35% over the same period, while the Altium Limited (ASX: ALU) share price is down 15% since December 2021.

Arguably, I don’t think the Pro Medicus share price reflects the higher interest rate considering how much growth is priced in.

While I believe the business has a very promising future, there is little room for error when it comes to the share price. That may mean that anything less than perfection is treated harshly by investors. Future success is not guaranteed.

With Pro Medicus having such high profit margins, it could attract competition from other software providers over time, which could slow growth or mean that clients are considering price comparisons. I think this would be bad news for Pro Medicus’ longer-term growth prospects. 

Motley Fool contributor Tristan Harrison does not own shares in Pro Medicus Limited and owns shares in Altium Limited.

What are the bears overlooking in Pro Medicus shares?

By Mitchell Lawler: Let’s address the elephant in the room… there’s no denying that Pro Medicus looks expensive at an earnings multiple of around 130 times. For comparison, the average price-to-earnings (P/E) ratio for the global healthcare services industry is approximately 39 times.

However, Pro Medicus is not your average healthcare services company. Scratch that… Pro Medicus is not your average company, period. When it comes to earnings growth and return on capital, the medical imaging software provider ranks among the top tier — both locally and against US-listed businesses.

Over the past five years, earnings per share have grown at a compound annual growth rate (CAGR) of 45.6% — the ninth highest of all ASX and US-listed companies. Furthermore, its return on capital of 40.7% places it as the 24th most efficient with capital — making it a truly world-class company.

Based on the attractive unit economics of Pro Medicus’ software product, earnings should be able to grow faster than revenue. As such, the all-important metric for the company’s future success is the number of customer deals and deal size.

Historically, the annual value of total deals (in dollar terms) with healthcare groups has followed an upward trajectory of 22% growth per annum, as pictured above.

I believe there is the possibility of Pro Medicus accelerating beyond this rate over the coming five years if it can negotiate contract renewals at an enlarged deal size while also adding new customers.

On top of this, the company has yet to meaningfully develop its presence in the European market, offering another avenue of growth once established.

Lastly, Pro Medicus has built up a sizeable war chest of cash in recent years. The amount tallied up to $94.2 million at the end of 2022.

Although the company’s thick margins are surely attracting competition, its balance sheet should give it the option to either invest in maintaining its leadership or acquire upcoming competitors.

Motley Fool contributor Mitchell Lawler owns shares in Pro Medicus Limited.

The post Pro Medicus shares: Bull vs. Bear appeared first on The Motley Fool Australia.

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The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Pro Medicus, and Xero. The Motley Fool Australia has positions in and has recommended Pro Medicus and 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index fell 0.1% to 7,322 points.

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

ASX 200 expected to fall

The Australian share market looks set to fall on Wednesday following a difficult night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 22 points or 0.3% lower this morning. On Wall Street, the Dow Jones was down 1%, the S&P 500 fell 1.6% and the Nasdaq sank 2%. Investors were hitting the sell button after US-based First Republic Bank’s earnings release reignited concerns about the sector.

Oil prices tumble

It could be a tough session for ASX 200 energy shares such as Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 2.1% to US$77.11 a barrel and the Brent crude oil price has fallen 2.4% to US$80.72 a barrel. This was driven by concerns that rising interest rates could slow economic growth, impacting oil demand.

BHP named as a buy

The team at Morgans has responded reasonably positively to the BHP Group Ltd (ASX: BHP) quarterly update. Its analysts have retained their add rating with a slightly trimmed price target of $50.40. They commented: “3Q23 operational result that was in-line with our estimates while trailing consensus in some areas. Already in accumulate territory, further market jitters could uncover an attractive buying opportunity.”

Gold price edges higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up 0.5% to US$2,009.4 an ounce. The precious metal rose on banking sector concerns.

Buy Telstra shares: Goldman Sachs

The Telstra Group Ltd (ASX: TLS) share price could be great value according to Goldman Sachs. This morning, the broker has reiterated its buy rating with an improved price target of $4.70. Goldman has boosted its earnings estimates to reflect its belief that postpaid mobile plan prices will increase by the full CPI rate (7%), which is more than Goldman was expecting.

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

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra 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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