The Commonwealth Bank of Australia (ASX: CBA) share price appears to have been caught up in what many have called a global banking crisis.

That saw it tumbling below $100 for the first time since October last year, hitting a 2023 low of $93.05 last month.

So, is the S&P/ASX 200 Index (ASX: XJO)’s biggest bank destined to sit below three figures for now, or is it gearing up to post a ripper recovery? Let’s take a look.

Was the ASX 200 banking giant caught up in international drama?

The CBA share price hasn’t traded over $100 since early March. In the meantime, the global banking sector has faced major disruptions.

United States-based Silvergate Bank kicked off a string of collapses last month, embroiling Silicon Valley Bank and Signature Bank as well. Not to mention, Credit Suisse appeared to be saved from the same fate by an acquisition agreement with Swiss peer UBS.

No doubt, all that shook some investors’ confidence in the sector, thereby weighing on shares in the likes of CBA.

But experts remain divided on whether things could be about to turn around for the biggest of the big four banks.

Will the CBA share price surpass $100?

CBA shares currently trade with a 4.2% dividend yield, a 17.15 price-to-earnings (P/E) ratio, and a 2.31 price-to-book (P/B) ratio, according to CommSec.

That makes the stock the most expensive of its big four banking peers on a P/E and P/B basis. It also offers the lowest dividend yield of the lot.

But Fairmont Equities’ Michael Gable believes the stock is worth the premium. The expert tips the bank to outperform over the long term due to its quality, as per The Bull.

Meanwhile, broker UBS has a $100 price target on CBA shares while Morgans expects the stock to slump to $96.11.

Personally, I think the CBA share price is likely to bounce into triple-digits in the near future. Indeed, it’s less than 1% off the milestone figure right now.

However, only time will tell if the stock can both surpass $100 and remain there, over the long term.

The post Is the CBA share price heading back over $100? 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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It’s not too often you find an ASX 200 dividend share sporting a high yield like 8.3%. Dividend yields are a direct result of a company’s share price. So it’s unusual to see investors allow a good-quality company’s share price to get so low that it jacks up its dividend yield to 8.3%. 

Yet that’s exactly the situation facing investors of famous ASX 200 retail share Harvey Norman Holdings Limited (ASX: HVN).

Harvey Norman hasn’t yet paid out its 2023 interim dividend. That payday for investors will come on 1 May next month. Investors are in line to net themselves 13 cents per share, fully franked. Together with the final dividend worth 17.5 cents per share that investors received back in November, Harvey Norman’s annual dividend now stands at a fully-franked 30.5 cents per share.

At market close on Friday, Harvey Norman shares finished trading at $3.67, down 1.08%:

At this share price, Havey Norman’s 30.5 cents per share in dividends gives this company a dividend yield of 10.22% right now. 

So is this ASX 200 share a high-yield bargain that shouldn’t be ignored?

Is this ASX 200 retail share a bargain buy right now?

Well, Harvey Norman shares certainly look cheap, just going off the company’s metrics. At $3.67, Harvey Norman sports a price-to-earnings (P/E) ratio of just 6.14.

By way of comparison, Commonwealth Bank of Australia (ASX: CBA) shares currently have a P/E ratio of 17.15, while the Coles Group Ltd (ASX: COL) share price is at 21.95.

But who better to judge if Harvey Norman shares are a bargain buy than the man who co-founded the company, Gerry Harvey?

Well, Harvey clearly thinks his own company is being undervalued by the markets. Late last month, we reported on how Harvey has been on an absolute buying spree of late. He had picked up more than $76 million worth of Harvey Norman shares over 2023 alone by the end of March.

And he hasn’t seemed to slow down either. An ASX filing from 3 April shows that Harvey made yet another purchase of 642,000 shares, close to $1 million worth, on 29 March.

So Harvey clearly thinks his own company is well in the bargain buy zone right now. But he’s not the only one. As we covered last week, ASX broker Goldman Sachs is another Harvey Norman bull. Goldman commented the following on its buy rating on Harvey Norman shares:

Harvey Norman holds a unique position within the electronics and appliances retail industry as a result of its franchise model of operations in Australia, property portfolio and regional exposure. While we do not view HVN as the most advanced retailer on digitalization, we view HVN as a more defensive option that is under-valued in the home category.

The broker has a 12-month share price target of $4.70 for the company.

So there’s more than one expert who is clearly seeing some value in this ASX 200 retail share right now.

The post At 10.2%, is this ASX 200 share a high-yield bargain? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Harvey Norman. The Motley Fool Australia has positions in and has recommended Coles Group and Harvey Norman. 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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Wesfarmers Ltd (ASX: WES) shares have been rising over the last six months. Is this a solid, defensive S&P/ASX 200 Index (ASX: XJO) stock to own in the current environment?

There are a number of different businesses within the Wesfarmers stable including Bunnings, Officeworks, Kmart, Target and Priceline.

It may be said that each of these businesses could have varying levels of resilience during an economic downturn.

I think the recent past could be a useful guide. I’m not talking about the COVID-19 period, Wesfarmers performed excellently during the pandemic.

The last difficult period

The coronavirus period was certainly tricky for many businesses, but the huge demand for DIY and construction materials, as well as technology and other products that Wesfarmers sold.

But, FY19 may be a good example of somewhat similar conditions where house prices had fallen and economic demand was lower.

In that result, Wesfarmers’ continuing operations earnings before interest and tax (EBIT) increased 12.2% and net profit after tax (NPAT) grew 13.5%. Bunnings managed to grow earnings.

But, as the saying goes, past performance is not a guarantee of future performance for the ASX 200 stock.

Are Wesfarmers shares defensive?

I think it’s important to say that no share price is impervious to volatility. Even if a company’s profit isn’t affected by a downturn, the market can still decide to push down a share price due to investor pessimism.

However, I believe that Wesfarmers is well-positioned to outperform in the current environment, making it a defensive ASX 200 stock.

In a time when household budgets may be stretched and particularly value-conscious, the price-focused businesses of Bunnings and Kmart could attract more customers than competitors.

Considering Priceline is a business that operates in the healthcare sector, it could also display good earnings.

The Wesfarmers chemicals, energy and fertiliser (WesCEF) segment seems to continue to perform thanks to the demand for commodities.

In my opinion, a good majority of Wesfarmers’ earnings could grow in FY23. Commsec estimates suggest that the company could generate earnings per share (EPS) of $2.14 in FY23 and $2.25 in FY24. This would put Wesfarmers shares at 24 times FY23’s estimated earnings and 23 times FY24’s estimated earnings.

Is the Wesfarmers share price a good buy?

I think Wesfarmers is usually a good business to consider because of its diversified operations and ability to invest in new businesses.

It’s not as cheap as it was last year. But, I think it has the potential to deliver capital growth, as well as good dividends.

There may be a bit of pain if interest rate effects hit harder than expected. But, over the long term, I think Wesfarmers is one of the most interesting and compelling ASX 200 stocks out there. I’d call it a buy.

The post Is Wesfarmers a good defensive ASX 200 stock to buy in the current climate? 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 positions in and has recommended 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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The Webjet Limited (ASX: WEB) share price has done remarkably well over the last six months. It has risen by around 50%. There are not many ASX shares that have done as well as that.

The S&P/ASX 200 Index (ASX: XJO) has only gone up by 8% over the past half-year period.

Despite all of the higher interest rates, Webjet has managed to deliver excellent performance in terms of shareholder returns.

But, I believe the business has a very promising future and I still think it’s a buy for the long-term.

Reasonable valuation

Profitability is quickly returning to the ASX travel share’s financials. By the 2025 financial year, it could be making a high level of profit for shareholders again.

In the 2023 financial year, it’s expected to generate 15.4 cents of earnings per share (EPS), according to Commsec. Profit could approximately double in FY24 with an EPS of 31.4 cents.

The ASX travel share’s profit could rise by another 28% in FY25 to 40.1 cents.

Now, these are just projections – EPS could be weaker or stronger than those numbers.

But, taking Webjet’s FY25 forecast, it puts the Webjet share price at 18 times FY25’s estimated earnings.

I think FY25 could be the first full 12 months that the global travel industry is able to operate as normal with normalised airline capacity.

One of the main reasons why I think that Webjet’s valuation looks reasonable is because I think it can keep growing.

Growth expected

In the recent FY23 half-year result, Webjet said it has returned to pre-pandemic bookings.

WebBeds is Webjet’s business-to-business (B2B) segment. In HY23, the EBITDA margin was over 55% – ahead of pre-pandemic levels. In the seasonal peak of July and August, it achieved its EBITDA margin target of 62.5%. The ASX travel share said that WebBeds is on track to exceed pre-pandemic profitability in FY23.

The company is expecting its underlying earnings to exceed pre-COVID underlying earnings in FY24.

Webjet’s online travel agency business (OTA) has been gaining market share and it’s also hoping that new technology called Trip Ninja could increase its share of the international flights market.

With WebBeds, the business sees a “massive global opportunity” – it’s targeting $10 billion of total transaction value (TTV). To put that in perspective, the entire business saw TTV of $2.14 billion in the FY23 first half.

Webjet noted that WebBeds is now 35% more efficient on the metric of booking per full-time equivalent employee.

Foolish takeaway

I think the Webjet share price can climb from here over the long term, particularly if it keeps seeing good TTV growth and profit margin improvement. I believe it could continue to perform, even if the wider ASX share market stagnates.

The post The Webjet share price has soared 50% in 6 months: Why I think it’s still a buy appeared first on The Motley Fool Australia.

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• Big Wednesday: 12 ASX 200 stocks cracking new 52-week highs
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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 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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Thankfully for income investors, there are plenty of dividend shares on the ASX offering attractive yields.

Two that brokers are particularly bullish on right now are named below. Here’s why they rate them as buys and what yields they expect in the near term:

Bank of Queensland Limited (ASX: BOQ)

The first ASX 200 dividend share for income investors to consider is Bank of Queensland.

It is the regional bank behind the eponymous Bank of Queensland brand. In addition, it owns the ME Bank and Virgin Money Australia brands.

Ord Minnett is feeling positive about Bank of Queensland thanks partly to its digitisation program. The broker expects the program to support loan and deposit growth, as well as achieve productivity benefits.

Ord Minnett has an accumulate rating and $8.40 price target on the bank’s shares.

As for dividends, the broker is forecasting fully franked dividends per share of 52 cents in FY 2023 and then 54 cents per share in FY 2023. Based on the current Bank of Queensland share price of $6.42, this will mean big yields of 8.1% and 8.4%, respectively.

Santos Ltd (ASX: STO)

Another ASX 200 dividend share that has been rated as a buy is Santos.

It is one of the region’s largest energy producers thanks to its recent merger with Oil Search. This merger means the company is now targeting production in and around the 100 million barrels of oil equivalent (mmboe) per annum. 

The team at Macquarie sees a lot of value in its shares at the current level. In fact, the broker recently highlighted that its shares have dropped to a level which is in line with a takeover offer several years ago. And that’s despite the recent addition of Oil Search’s assets. 

Macquarie currently has an outperform rating and $9.90 price target on Santos’ shares.

As for dividends, the broker is expecting dividends per share of 42 cents in FY 2023 and 31 cents in FY 2024. Based on the current Santos share price of $7.14, this will mean yields of 5.9% and 4.3%, respectively.

The post Banking and energy: The ASX 200 dividend shares to buy now according to analysts 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 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 ASX financial share Macquarie Group Ltd (ASX: MQG) has declined 8% since 7 March 2023. It’s currently under $180 per share.

It’s unsurprising that the investment bank has suffered a fall during this short amount of time considering all of the pain relating to the global banking sector over the past month.

First, there was the collapse of venture-tech-focused bank Silicon Valley Bank (SVB) which suffered from massive withdrawals of customer deposits, leading to the bank selling bonds at a loss. Then Credit Suisse had to be taken over by UBS.

But, a key question is whether the business will be able to generate pleasing returns from here. No one can say what the future shareholder returns are going to be, but I’m going to outline why the ASX financial share can perform for investors from here.

Dividends

I think that capital growth will generate the majority of the returns for shareholders because I expect that Macquarie will be able to generate long-term earnings growth. This will help push the Macquarie share price higher.

But, the dividends from Macquarie can help some of the returns and provide cash benefits during this period of volatility.

Excluding the effects of franking credits, over the last 12 months, Macquarie has paid dividends totalling $6.50 which is a dividend yield of 3.7%.

That dividend is expected to grow in the coming years.

In FY24 the dividend is expected to rise to $6.80 per share and then in FY25, the annual dividend per share could rise to $7.20 per share, according to Commsec.

In other words, by FY25, Macquarie could be paying an annual dividend share of 4.1%. I think that the dividend can continue to rise from here.

Long-term earnings growth

One of the biggest advantages of Macquarie Group Ltd (ASX: MQG) compared to a bank like Commonwealth Bank of Australia (ASX: CBA) is its global earnings base.

The domestically focused ASX banks generate (almost) all of their earnings from Australia and New Zealand, largely from lending.

Macquarie has a very diversified group of businesses. It does have a rapidly growing Australian banking division.

But, it also has a large asset management business, Macquarie has investment banking operations and also a commodities and global markets (CGM) business.

I think Macquarie has proven to be very effective at investing in the right places to help it grow. With its global operations, Macquarie is able to invest wherever makes the most sense for its capital.

The ASX financial share is putting money into green energy, green financing and other energy transition areas, which is a very large growth area.

Macquarie says it’s well-capitalised and conservatively positioned to handle whatever comes next. I think this can enable the business to outperform its ASX bank share peers.

Foolish takeaway

While the next 12 months could be uncertain for Macquarie’s earnings, Commsec numbers suggest that earnings per share (EPS) could rise to $13.20 in FY25. This would put the current Macquarie share price at 13 times FY25’s estimated earnings.

I think Macquarie shares can outperform the S&P/ASX 200 Index (ASX: XJO) over the longer term. However, with how large the business is, I wouldn’t expect it to achieve massive returns – so I think I’d go for other candidates to try to build a lot of wealth.

The post Could buying Macquarie shares at under $180 make me rich? appeared first on The Motley Fool Australia.

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• Why ASX shares in 2023 are eerily similar to 2019 (and what you should do)
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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 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 warning “past performance is not an indicator of future performance” is heard so frequently in finance circles that most investors gloss over it without much thought.

But it’s true. 

The only thing that matters when you buy ASX shares is what the future brings, not what the stock did in the past.

When many investors see a tech stock like Aussie Broadband Ltd (ASX: ABB) sink terribly to the tune of 40% over the past year, they stay away.

But this is when bargains can be nabbed, if the business has positive prospects for future growth and earnings.

Improving the quality of its clientele

The analysts at QVG Capital, for example, revealed that they have “materially increased” their Aussie Broadband holding in the past month, despite the share price falling more than 8% in that time.

In a memo to clients, the team admitted the bread-and-butter business is actually not that alluring. 

“Aussie is best known as an NBN reseller. This is not an attractive business.”

However, the QVG analysts’ conviction comes from the side of the company that the public rarely sees.

“The thing that attracts us to Aussie is that they have been investing in their own fibre backhaul and have been growing their business and government division,” read the memo.

“Business and government customers typically have lower churn and higher average revenues while on-net fibre margins can be 3x those of reselling NBN.”

These slow-burning activities will eventually trigger a rude wake-up call for the market, the QVG team believes.

“As Aussie’s revenue and earnings mix moves more towards the higher quality business and government division, we believe a re-rating of the company is likely.”

‘The right call is to back them for the future’

On the other end of the spectrum, electrical equipment provider IPD Group Ltd (ASX: IPG) has enjoyed an incredible doubling of its share price over the past 12 months.

But this past performance doesn’t mean that its run is over.

“It has been the right call for these guys to back themselves over the last decade,” read the QVG memo.

“We believe that as they continue to take both employees and market share from the competition the right call is to back them for the future.”

The team confessed that it’s not the sort of company it normally goes for.

“[IPD] is an atypical holding for us given they don’t own their own brands and rely heavily on a key supplier,” the memo read. 

“Despite this, we see an undemanding valuation for a business that has proven they can grow revenue in the teens and produce EPS growth well in excess of that with sensible acquisitions.”

The QVG analysts like that the IPD executive team seems to be “creating a more responsive culture” to deal with foreign competitors.

“We also like that their main OEM supplier is severely underpenetrated in Australia relative to the share they have around the globe.”

The post ‘Rerating likely’: 2 ASX shares to buy before they take off 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 positions in and has recommended Aussie Broadband and IPD Group. The Motley Fool Australia has recommended Aussie Broadband and IPD 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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With the rise of electric vehicles and the net zero environmental movement, lithium has become a hot commodity for investors the past few years.

The element is a crucial ingredient in high-powered batteries, so investors were climbing over each other to get their hands on any S&P/ASX 200 Index (ASX: XJO) shares involved in producing it.

However, the past six months have seen a setback to its meteoric rise.

eToro market analyst Josh Gilbert explained a policy change in China had altered the market dynamics in recent months.

“Lithium prices have fallen significantly from their peak, down more than 50% since their record high in November 2022,” he said.

“After years of subsidies to battery manufacturers and granting cash rewards to new electric vehicle purchases, China has now halted incentives for the new energy auto sector, which has translated into a decline in demand for battery inputs.”

Increasing production to cancel out lower prices

The sinking commodity prices have understandably led to a sell-off of lithium mining stocks.

“Pilbara Minerals Ltd (ASX: PLS) and Core Lithium Ltd (ASX: CXO) [are] down more than 20% in the last six months.”

In fact, the Pilbara share price is down more than 33% over the past six months, while Core Lithium has shaved 26% off its market capitalisation.

However, Gilbert reckons both these companies have strategies to counter the lower lithium prices.

“Both are braced for lower prices… and have continued increasing production, helping offset lower prices,” he said.

“Pilbara plans to increase production by 17% this year, with a target of doubling production by 2026.”

Lithium demand is a long-term story

Besides, investors buying into lithium producers need to take a long-term view, according to Gilbert.

“Electric vehicle adoption has really only just begun and has a long runway, with lithium demand only set to increase in the years ahead,” he said.

“According to Bloomberg, lithium-ion battery demand is expected to more than double in 2023 from 2020 levels, whilst EV sales look set to increase by more than 30% in 2023.”

Consequently, electric car makers are relishing the lower lithium prices.

“Tesla Inc (NASDAQ: TSLA)’s Q1 deliveries were stronger than expected after price cuts but attention quickly turned to its impressive margins that would likely be affected.”

“These falling lithium prices should help to support margin pain – not just for Tesla but also for China’s EV makers.”

Funnily enough, lower lithium prices could turn out to be a positive in the long run.

“Lower prices across the EV industry could also be a key catalyst to support faster EV adoption, translating into further demand for lithium.”

The post 50% fall: Are ASX 200 lithium shares a bargain buy right now? 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 positions in and has recommended Tesla. 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 last 14 months have been pretty terrible for most S&P/ASX 200 Index (ASX: XJO) shares, but mining has been an exception.

Despite this, some investors shy away from resources stocks.

For many, this aversion is due to their cyclical nature. 

Mining shares can swing wildly depending on commodity prices. They require careful monitoring so investors don’t end up mistiming their entry and exit.

But if you still fancy exposure to a sector that carried the Australian market for much of 2022, there is a less volatile way to do so.

Plenty of new work and a jettison of underperformer

Mining services companies provide outsourced labour and equipment to those businesses that actually own the mines.

The stocks for these companies could potentially be more stable than the mining companies themselves, as they’re not dependent on the popularity of any one commodity.

The team at Celeste Funds Management recently pointed out how it’s backing two such companies.

“Monadelphous Group Ltd (ASX: MND) rose 6.6% in March,” its memo to clients read.

“The company announced $125 million of new contracts and contract extensions with work across the lithium, iron ore and LNG sectors in WA, bringing total contract wins in FY23 to approximately $1.1 billion.”

The company also closed its underperforming Buildtek arm, which was a Chilean construction and maintenance services business that they had a 90% stake in.

“The Chilean resources sector has been significantly impacted by COVID, which impacted Buildtek’s financial performance and significantly increased its working capital requirements.”

In the last financial year Buildtek accounted for 5% of Monadelphous’ revenue, so its closure “isn’t expected to have a material impact on net assets or FY23 earnings”.

The Monadelphous shares are 10.8% up over the past year, and are currently delivering a 3.84% dividend yield.

A huge deal with iron ore giant

Fellow mining services contractor NRW Holdings Limited (ASX: NWH) has a similar market capitalisation to Monadelphous, but its share price dropped 1.8% last month.

“During the month the company announced the acquisition of OFI Group, a specialist in electrical engineering services and integration, for $4 million,” read the Celeste memo. 

“OFI Group has an established history working with NRW’s RCR business and should enhance the capabilities of the METS division with expected FY24 revenue contribution of $40 million.” 

The analysts are also bullish on NRW due to its pipeline of work. “NRW announced two new contracts won by the METS division with Fortescue Metals Group Ltd (ASX: FMG) with a total value of $64 million.”

The NRW share price is 14.7% higher than it was 12 months ago. The stock currently pays out a mouth-watering 6.5% dividend yield.

The post Don’t like mining stocks? Buy these ASX 200 shares instead appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• 2 ASX 300 shares trading ex-dividend on Monday
• 2 compelling All Ords ASX shares to buy in March 2023: expert

Motley Fool contributor Tony Yoo has positions in Nrw. 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) went into the Easter break on a disappointing note. The benchmark index fell 0.3% to 7,214.9 points.

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

ASX 200 expected to fall

The Australian share market looks set to fall again on Tuesday following a subdued start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 12 points or 0.2% higher. In late trade in the United States, the Dow Jones is up 0.1%, the S&P 500 is down 0.1%, and the NASDAQ is down 0.1%.

Oil prices tumble

Energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have tough session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.1% to US$79.83 a barrel and the Brent crude oil price is down 1% to US$84.28 a barrel. Recession and rate hike concerns appear to be weighing on prices.

Buy Eagers ahead of Bapcor: Morgans

The team at Morgans has been running the rule over the auto and autoparts industry and is telling investors to buy Eagers Automotive Ltd (ASX: APE) ahead of Bapcor Ltd (ASX: BAP). Morgans has an add rating and $15.85 price target on Eagers shares and a holding rating and $7.40 price target on Bapcor’s shares. The broker notes that electric vehicle sales have now hit 7.4% of the market and highlights that Eagers has “direct leverage to EV penetration.”

Gold price drops

It could be a poor day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price dropped overnight. According to CNBC, the spot gold price is down 1% to US$2,005.9 an ounce. The release of strong US jobs data appears supportive of further rate hikes.

Dividends being paid

A number of ASX 200 shares will be rewarding their shareholders with their latest dividend payments on Tuesday. This includes New Zealand based telco Chorus Ltd (ASX: CNU), integrated services company Downer EDI Ltd (ASX: DOW), administration services company Link Administration Holdings Ltd (ASX: LNK).

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

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More reading

• Will the ASX 200 hit 7,500 again in 2023?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today

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

from The Motley Fool Australia https://www.fool.com.au/2023/04/11/5-things-to-watch-on-the-asx-200-on-tuesday-160/