On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week on a very disappointing note. The benchmark index sank 2.3% to 7,144.7 points.

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

ASX 200 expected to fall again

The Australian share market looks set to start the week in the red following a poor finish to the last one on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 39 points or 0.55% lower this morning. On Wall Street, the Dow Jones was down 1.1%, the S&P 500 fell 1.45%, and the NASDAQ dropped 1.8%.

Oil prices rise

ASX 200 energy shares including Santos Ltd (ASX: STO) and Beach Energy Ltd (ASX: BPT) could have a decent start to the week after oil prices rose on Friday. According to Bloomberg, the WTI crude oil price was up 1.3% to US$76.68 a barrel and the Brent crude oil price rose 1.45% to US$82.78 a barrel. A solid US payrolls update gave prices a boost.

Bank shares on watch

Bendigo and Adelaide Bank Ltd (ASX: BEN), Commonwealth Bank of Australia (ASX: CBA), and other ASX 200 banks will be on watch today after a bank run led to the collapse of Silicon Valley Bank (SVB) on Friday. In addition, investors will be waiting to hear if any ASX 200 tech stocks had any cash held in one of the US bank’s uninsured savings accounts.

Gold price charges higher

Gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a great start to the week after the gold price stormed higher on Friday night. According to CNBC, the spot gold price rose 1.8% to $1,867.20 per ounce. Strong demand for safe haven assets boosted the precious metal.

Core Lithium shares remain a sell

The Core Lithium Ltd (ASX: CXO) share price remains overvalued despite recent weakness. That’s the view of analysts at Goldman Sachs, who have reiterated their sell rating and 90 cents price target. Goldman has been looking at the lithium market and nots continued weakness in spot prices.

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

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More reading

• Guess which ASX 200 stock has landed 3 substantial shareholders in a week
• Here’s how I would secure monthly dividends in the 2024 financial year with these ASX stocks
• Here are the 3 most heavily traded ASX 200 shares on Friday
• ASX 200 sinks to 2-month low on US market jitters
• Why are ASX 200 lithium shares falling so hard 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. 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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Last month’s ASX reporting season was “a mixed bag” — but one massive trend was clear to everyone.

That’s according to Wilsons equity strategist Rob Crookston, who is in no doubt that ten consecutive months of interest rate rises is causing immense pain for Australians.

“Reporting season provided further evidence that consumers are paring back their expenditure on discretionary goods and big-ticket items, as pulled-forward demand from COVID unwinds and cost of living pressures eat into household budgets,” he said in a memo to clients.

Crookston noted how sales have fallen for many retailers, compared to a year earlier.

This is starting to cause a pile-up in warehouses, which can trigger multiple negative effects.

“The moderating consumer demand backdrop has driven a rise in inventory levels for some names,” he said.

“Not only is sitting on elevated inventories often a forward indicator of softening demand, it can also create additional costs (e.g. warehousing) while it weighs on free cash flows and increases the risk of product obsolescence, which can necessitate an increase in promotional activity to clear stock.”

The tightening of wallets is even impacting businesses that sell essential goods.

“There has also been increasing commentary that consumers are ‘trading down’, with Woolworths Group Ltd (ASX: WOW) CEO Brad Banducci saying consumers were eating more at home rather than dining out, for example.”

The stocks to avoid and one to buy right now

So what does this mean for ASX share investors?

The most straightforward tip from Crookston is to avoid buying into the sectors that are directly hurt by a decline in shoppers.

“The focus portfolio has no exposure to the retail or consumer goods sectors, which we think are close to peak (cyclical) earnings.”

However, there is an opportunity to buy ASX shares of businesses that provide consumer services.

These companies are “continuing to benefit from the shift of spending from goods to services and have attractive long-term earnings growth potential”. 

Crookston’s top buy in this category is Lottery Corporation Ltd (ASX: TLC), which boasts “predictable, infrastructure-like cash flows that are underpinned by its long-dated licences”.

“The Lottery Corporation had a stellar 1H23 result, which included EBITDA growth of +15.8% as lottery sales were resilient,” he said.

“At the same time, margins benefitted from an increasing penetration of the digital channel.”

The great tailwind for the company is the “defensive nature of lottery demand”, which has shown resilience in the past through tough economic conditions.

The post Big lesson from reporting season: STAY AWAY from these ASX shares, says expert appeared first on The Motley Fool Australia.

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More reading

• ‘A rocky road ahead’: Expert names 2 ASX 200 shares to thrive in a tough 2023
• Here’s how I would secure monthly dividends in the 2024 financial year with these ASX stocks
• Goldman Sachs says buy Woolworths stock for reliable dividends AND 10% share price growth
• How can I hope to retire rich when the share market is falling?
• Buy these ASX 200 dividend shares for passive income: analysts

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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If you’re a growth investor looking for some new options, then you might want to consider exchange traded funds (ETFs).

There are a number of ETFs out there that allow investors to buy a slice of some high quality growth shares through a single investment.

Two such ETFs that will allow you to achieve this are listed below:

BetaShares Asia Technology Tigers ETF (ASX: ASIA)

The first ETF for growth investors to look at is the BetaShares Asia Technology Tigers ETF.

This ETF gives investors exposure to approximately 50 of the most promising tech companies in the Asian market (excluding Japan). Among the fund’s top holdings you will find tigers such as Alibaba, Baidu, Infosys, JD.com, Kuaishou Technology, Meituan Dianping, Pinduoduo, Samsung, Tencent.

In respect to Pinduoduo, it is a leading ecommerce platform that connects distributors with consumers directly through an interactive shopping experience. This allows the latter to team up to buy items in bulk at lower prices. At the last count, the company had a massive 875 million active customers.

BetaShares Global Cybersecurity ETF (ASX: HACK)

Another ETF for growth investors to look at is the BetaShares Global Cybersecurity ETF.

This ETF gives investors exposure to the leading companies in the global cybersecurity sector.

Among the companies you’ll be buying a piece of are Accenture, Cisco, Cloudflare, Crowdstrike, Okta, and Splunk. These all look well-positioned to benefit from the increasing demand for cybersecurity services as cyber attacks increase and more infrastructure moves to the cloud.

In respect to CrowdStrike, it is a provider of incident response and forensic analysis services via its Falcon platform. Its services are designed to help businesses understand whether a breach has occurred. It then allows the user to respond and recover from a breach with speed and precision to remediate the threat.

The post 2 top ETFs for ASX growth investors to buy next week appeared first on The Motley Fool Australia.

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More reading

• 3 excellent ETFs for ASX investors to sink their money into this month
• 3 ETFs for smart ASX investors in March
• Why I’m not investing in ASX index ETFs (yet)
• 2 ASX ETFs I’d buy as a beginner investor
• 2 exciting ETFs for ASX growth investors to buy next week

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 BetaShares Global Cybersecurity ETF. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF. The Motley Fool Australia has recommended Betashares Capital – Asia Technology Tigers Etf. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Pilbara Minerals Ltd (ASX: PLS)

According to a note out of Citi, its analysts have retained their buy rating and $4.80 price target on this lithium miner’s shares. Although it expects that lithium prices may remain under pressure in the immediate term, Citi suspects that they could rebound in the coming months as restocking takes place in the Chinese battery materials market. The Pilbara Minerals share price ended the week at $3.98.

Rio Tinto Ltd (ASX: RIO)

A note out of Goldman Sachs reveals that its analysts have put a conviction buy rating on this mining giant’s shares with an improved price target of $140.40. Goldman is bullish due to Rio Tinto’s iron ore production growth outlook and its potential free cash flow per tonne improvements. It also believes that iron ore prices could be heading to US$150 a tonne in the near term thanks to supply deficits and restocking. The Rio Tinto share price was fetching $117.28 at Friday’s close.

Xero Limited (ASX: XRO)

Analysts at Goldman Sachs have also retained their conviction buy rating on this cloud accounting platform provider’s shares with an improved price target of $116.00. This follows news that Xero is making major cost reductions. Goldman was pleased with the news and has upgraded its earnings estimates for the coming years to reflect the changes. The Xero share price ended the week at $86.73.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• Morgans names the best ASX 200 growth shares to buy in March
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Brokers name 3 ASX shares to buy now
• Why are ASX 200 lithium shares falling so hard today?
• Why Atlantic Lithium, CBA, Piedmont Lithium, and Pilbara Minerals shares are dropping

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

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If you’re searching for dividend shares to buy when the market reopens, then it could be worth checking out the two listed below.

Here’s why they have been tipped as buys:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share to consider buying is Accent Group. It is the fashion and footwear retailer behind brands including Hype DC, The Athlete’s Foot, Glue, Platypus, Sneaker Lab, and Stylerunner.

Despite the cost of living crisis, the company has been performing very strongly. This has been driven thanks to the popularity of its brands and its exposure to younger consumers, which have less exposure to rising rates and more exposure to increases in the minimum wage.

Goldman Sachs is fan of the company and has a buy rating and $2.90 price target on its shares. It commented:

We believe AX1 offers an attractive exposure to a young Australian consumer that is uniquely resilient to inflationary and broader economic pressures given (1) a high proportion live at home; (2) more than two-thirds are working; (3) high and increasing minimum wage entitlements and; (4) a heavy skew towards discretionary spending.

As for dividends, the broker is forecasting a fully franked dividend of 15 cents per share in FY 2023. Based on the current Accent share price of $2.32, this will mean a yield of 6.5%.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share to buy according to analysts is Westpac.

It is Australia’s oldest bank and the name behind the eponymous Westpac brand and a number of regional brands such as Bank SA and St George.

Morgans is a fan of the company and has an add rating and $25.80 price target on its shares. It commented:

We view WBC as having the greatest potential for return on equity improvement amongst the major banks if its business transformation initiatives prove successful. The sources of this improvement include improved loan origination and processing capability, cost reductions (including from divestments and cost-out), rapid leverage to higher rates environment, and reduced regulatory credit risk intensity of non-home loan book.

Morgans is expecting this to lead to a fully franked dividend 153 cents per share in FY 2023. Based on the current Westpac share price of $21.79, this will mean a sizeable 7% yield.

The post Buy Westpac and this ASX dividend share next week: analysts appeared first on The Motley Fool Australia.

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More reading

• Here’s how I would secure monthly dividends in the 2024 financial year with these ASX stocks
• Here’s how much I’d need to invest in Westpac shares to generate a $150 monthly income
• Why are ASX 200 bank shares like CBA being annihilated today?
• These 3 ASX 300 shares are dividend dynamos!
• Morgans names 3 more of the best ASX shares to buy in March

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 Accent Group and 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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The A2 Milk Company Ltd (ASX: A2M) share price has performed admirably in the last year, rising by around 25% and almost reaching $7.

It’s a bit of a redemption story for A2 Milk considering the company was trading at around $20 during mid-2020.

The infant formula business is recovering from COVID-19 impacts when there was a huge disruption to daigou buyers.

With the business now reporting positive signs of a turnaround, can things get even better?

Earnings turnaround

A2 Milk reported in the FY23 half-year result that total revenue rose by 18.6% to $783.3 million. There was a very mixed performance within that overall number, though.

While China and other Asian sales increased 54% and sales in the United States went up 61.8%, it was a different story in Australia and New Zealand where sales decreased by 24.6%.

Pleasingly, the company said it reached historical highs in China brand awareness, trial and loyalty metrics. It also achieved record market shares in Chinese label infant formula in ‘mother and baby stores’ and domestic online channels.

The English label infant formula share improved in cross-border e-commerce and daigou channels.

A2 Milk’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased 10.5% to $107.8 million and the net profit after tax (NPAT) increased by 22.1% to $68.5 million. Earnings per share (EPS) jumped 24.1% to 10 cents.

The company said that its share buyback of up to $150 million, which started in the FY23 first half, was 60.1% complete.

Things were good in the first half, but the share market can be very focused on the future, which would then influence the A2 Milk share price.

FY23 growth expected

A2 Milk is expecting FY23 revenue to show growth of low double digits, with an EBITDA margin similar to FY22.

However, there is a negative for the business in terms of the industry dynamics.

The Chinese infant formula market dynamics are “increasingly challenging” due to fewer births in the 2022 calendar year and the rolling impacts from fewer births in prior years on later-stage infant formula products.

A2 Milk also expects that the English label market will “continue to be impacted by the evolving channel dynamics and a further shift towards the China label market.”

My thoughts on the A2 Milk share price

I think A2 Milk has done a really good job of turning things around.

Commsec numbers suggest that A2 Milk is going to generate EPS of 18.9 cents, with further profit growth in FY24 and FY25.

At the current A2 Milk share price, that suggests that it’s valued at 35x FY23’s estimated earnings.

While that isn’t as expensive as a number of ASX growth shares, I think the market now reflects the much-improved outlook, so I’d be less excited to buy today than a year ago. But I still think that it could outperform from here because of the necessary nature of infant formula and international growth.

The post At almost $7, can the A2 Milk share price go any higher? appeared first on The Motley Fool Australia.

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More reading

• What caused the A2 Milk share price to spill almost 6% in February?
• ‘Result was incredible’: 3 ASX 200 shares Jun Bei Liu would buy now
• Why A2 Milk, Altium, Cogstate, and Ingenia shares are sinking today
• Is the A2 Milk share price good value after its post-results selloff?
• Why A2 Milk, BlueScope, NIB, and Pilbara Minerals shares are dropping today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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When it comes to retirement, wouldn’t it be nice to get your feet up and make your money work for you?

Well, this certainly is possible. You just need to build an investment portfolio that has the potential to provide you with a suitable income.

On this occasion, let’s aim for a retirement income of $50,000. Can we get there?

The good news is that if you have time on your side, history shows that growing a portfolio capable of yielding $50,000 a year in income is more than possible.

How to generate $50,000 of income from ASX shares

There are a large number of ASX shares out there that provide investors with 5%+ yields. This includes the likes of ANZ Group Holdings Ltd (ASX: ANZ) and BHP Group Ltd (ASX: BHP).

And while we don’t know what they will offer in the ultra long term, you can bet that there will be something similar.

Something else you can bet on is the share market rising. Historically, the share market has provided investors with an average annual return of 10%.

There is no guarantee that this will happen again over the long term, but we’re going to base our calculations on this.

With that in mind, if you were to invest $10,000 into the share market each year for the next 24 and a half years and earned the market return, you would have a portfolio valued at just over $1 million.

At that stage, you can switch your focus to income and if you average a 5% yield, you will be watching $50,000 come rolling in each year without lifting a finger. The dream!

The key is to build a diverse portfolio filled with high quality ASX shares and let compounding work its magic. Companies with strong business models, competitive advantages, and positive long term growth outlooks would be top of my list.

The post How to make $50,000 of retirement income with ASX shares appeared first on The Motley Fool Australia.

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• How to generate $20k of passive income from BHP shares
• Here’s how I would secure monthly dividends in the 2024 financial year with these ASX stocks
• Why is the BHP share price taking a flogging on Friday?
• Why are ASX 200 bank shares like CBA being annihilated today?
• Buy these ASX dividend shares before it’s too late: brokers

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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If you’re looking for an easy way to invest your hard-earned money with a long term view, then exchange traded funds (ETFs) could be the way to do it.

But which ETFs might be top buy and hold options? Listed below are three quality ETFs that could be worth considering as long term investments:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF option for investors to consider is the BetaShares NASDAQ 100 ETF.

This ETF gives investors access to the 100 largest non-financial shares on the famous NASDAQ index. These are many of the largest companies in the world and household names such as Amazon, Alphabet, Apple, Meta Platforms, Microsoft, and Tesla.

Since inception in May 2015, this ETF has generated an average annual return of 16.08%.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

Another ETF that could be a quality buy and hold option is the VanEck Vectors Morningstar Wide Moat ETF.

If you want to invest like Warren Buffett, then this ETF would be an easy way to replicate his strategy. That’s because it holds companies with fair valuations and moats. These are two qualities Buffett looks for when buying shares.

The ETF currently contains approximately 50 shares, including the likes of Alphabet, Boeing, Kellogg Co, Meta Platforms, and Walt Disney.

Over the last 10 years, the index the ETF tracks has returned 18.64% per annum.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ETF that could be a great buy and hold option is the Vanguard MSCI Index International Shares ETF.

This popular ETF gives investors access to approximately 1,500 of the world’s largest listed companies.

This provides significant diversity and allows investors to take part in the long term growth potential of international economies. Among its holdings are the likes of Amazon, Apple, Nestle, Procter & Gamble, Tesla, and Visa.

Over the last five years, it has generated total returns of 10% per annum.

The post 3 ETFs for investors to buy and hold for a decade appeared first on The Motley Fool Australia.

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More reading

• 2 excellent ETFs for ASX investors to buy now
• I’d aim for $1 million, thanks to just a few ASX shares
• How I’d aim to replace an entire salary with passive income from ASX dividend shares
• Top ASX ETFs to buy in March 2023
• 3 excellent ETFs for ASX investors to sink their money into this month

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 BetaShares Asia Technology Tigers ETF, VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF, and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for ASX 200 growth shares to buy, then look no further!

The team at Morgans has named a number of growth shares on its best ideas list for March.

Three growth shares that have been given the thumbs up are listed below. Here’s why it is bullish on them:

Treasury Wine Estates Ltd (ASX: TWE)

Morgans is a fan of this wine giant and believes it is destined to deliver strong earnings growth over the coming years. This follows its successful internal restructure and solid demand for luxury wine.

The broker has an add rating and $15.05 price target in its shares. It commented:

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The foundations are now in place for TWE to deliver strong earnings growth from the 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

Webjet Limited (ASX: WEB)

This online travel agent could be an ASX 200 growth share to buy according to Morgans. It has an add rating and $7.20 price target on its shares.

The broker believes Webjet’s shares are attractively priced based on its positive long term outlook. It said:

Based on our forecasts, WEB is trading on an FY24 recovery year PE which is at a discount to its five-year average PE (pre-COVID). Its WebBeds (B2B) business is highly leveraged to the northern hemisphere summer holiday season which is forecast to be strong. Webjet OTA is leveraged to ANZ domestic and international travel. Management also wasted a crisis and cost reduction initiatives will reduce its cost base by 20% across the group once the business returns to scale.

Xero Limited (ASX: XRO)

Finally, this cloud accounting platform provider could also be an ASX 200 growth share to buy this month. Morgans believes the company’s shares are great value and that this is a rare buying opportunity for investors.

It has an add rating and $97.00 price target. The broker commented:

XRO is a high quality cash generative business with impressive customer advocacy and duration. Over the last 12 months rising interest rates and competition have made things harder for Xero. However, we see the current shortterm weakness as a rare opportunity to buy a high quality global growth company at a discount to the life time value of its current customer base.

The post Morgans names the best ASX 200 growth shares to buy in March appeared first on The Motley Fool Australia.

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• Brokers name 3 ASX shares to buy now
• Is the new leaner, meaner Xero stock a buy right now?
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Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Treasury Wine Estates. 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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One eye-popping trend seen during the COVID-19 pandemic was that private vehicle ownership made a huge comeback.

Both cost and environmental concerns had somewhat stifled car sales for years before the pandemic hit. All of a sudden, health concerns around riding in confined spaces with strangers prompted a shift back to private transport.

Combined with supply constraints, the demand was so hot that, at one stage, used cars were costing as much as new cars.

As the world shifted to the post-COVID era, vehicle sales were expected to normalise.

But a memo to clients from the analysts at Celeste Funds Management suggests the party for the motor industry could go into overtime.

Strong results season for both these car retailers

According to the Celeste note, the team is bullish on dealership businesses Eagers Automotive Ltd (ASX: APE) and Autosports Group Ltd (ASX: ASG).

That’s despite both stocks already having risen handsomely in the past month.

“Listed car dealers Eagers Automotive and Autosports Group rose 19.9% & 0.5% respectively off the back of strong earnings results in February.”

Eagers, especially, has had a fabulous time. The stock price has rocketed more than 34% over the past month.

“Eagers delivered profit before tax (PBT) of $405.2 million, in-line with expectations and set a FY23 revenue target of $9.5 to $10 billion, underpinned by FY22 acquisitions, BYD Auto sales, and organic growth initiatives.”

Autosports Group didn’t do too badly either. 

“Autosports delivered PBT of $52 million, 9.9% ahead of expectations. No quantified guidance was provided, but the company noted continued momentum in 2h23.”

The Celeste team is backing both stocks for further gains.

“We believe both companies will continue to benefit from an elevated orderbook that should provide high earnings visibility over the next 12 to 24 months,” read the memo.

“We remain positively disposed to both stocks.”

Last month, Morgans analyst Andrew Tang also expressed his bullishness for Eagers.

“The order book has over a two-year run off period (yet to commence) providing solid near-term visibility,” he said.

“Cycle aside, Eagers is executing on building a sustainably higher earnings base via further consolidation, ongoing efficiency, new OEM strategies and new sales channels.”

The post Start your engines: Fund backs 2 ASX shares to finish line 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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