Looking for some ASX growth shares to buy? If you are, then it could be worth considering the three listed below.

Both have been named as buys by brokers and tipped to rise strongly from current levels. Here’s what you need to know about them:

Life360 Inc (ASX: 360)

The first ASX growth share for investors to look at is Life360.

It is a Silicon Valley-based technology company with a focus on products and services for digitally native families.

The company’s key product is the eponymous Life360 app, which has almost 60 million active users. It offers features such as communications, driver safety, and location sharing.

Goldman Sachs is a big fan of the company, noting that it is “exposed to a US$12bn global TAM with a large opportunity to expand its product suite, grow average revenue per paying circle (ARPPC), increase payer conversion, and lift penetration rates outside of the US.”

The broker currently has a buy rating and $10.50 price target on its shares, which suggests potential upside of 42%.

Megaport Ltd (ASX: MP1)

Analysts at Macquarie still see material upside potential for this ASX growth share despite its recent gains.

The broker appears to believe that the stars are aligning for the leading global provider of elastic interconnection services and is tipping explosive earnings growth over the coming years.

It is for this reason that the broker reiterated its outperform rating on Megaport’s shares at the end of last month with an improved price target of $15.50. This implies potential upside of 22% for investors.

TechnologyOne Ltd (ASX: TNE)

Another ASX growth share that Goldman Sachs is a big fan of is enterprise software provider TechnologyOne.

Goldman believes the company “is well placed to meet its A$500mn FY26 ARR target through a combination of SaaS flip uplift, net expansion and new customer growth.” It expects this and margin expansion to “drive a mid-high teens EPS CAGR to FY26E.”

Goldman has a buy rating and $18.05 price target on its shares. This would mean upside of 13% for investors.

The post Brokers say these explosive ASX growth shares are buys with massive upside appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Will the Life360 share price rise another 55% in 2024?
• 2 ASX shares with millionaire-maker potential
• Here are the top 10 ASX 200 shares today
• Analysts tip 10% to 30% returns for these ASX growth shares in 2024
• 2 sizzling-hot ASX stocks to buy right now

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Life360, Macquarie Group, Megaport, and Technology One. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended Megaport and Technology One. 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://ift.tt/viupO6E

If you’re on the lookout for some new ASX dividend shares for your portfolio, then it could be worth checking out the two listed below.

Here’s what analysts are saying about them:

Lovisa Holdings Ltd (ASX: LOV)

Lovisa could be an ASX dividend share to buy according to analysts. It is a leading fast fashion jewellery retailer with over 800 stores across over 30 countries.

But if you thought that would be where its journey ends, you would be wrong. Management has huge global expansion plans and has just entered the massive China market. And importantly, this expansion is being overseen by a highly experienced CEO that has an incredible track record of taking brands global.

The team at Morgans is very bullish on the company’s expansion plans. It notes that “investment will be needed to expand LOV’s network in the US and Europe and to take it into new markets, but the company has the balance sheet capacity to fund this and the returns could be stellar.”

This could be great news for the company’s earnings and dividends over the next decade. In the meantime, Morgans is forecasting fully franked dividends of 70 cents per share in FY 2024 and 81 cents per share in FY 2025. Based on the current Lovisa share price of $25.10, this implies yields of 2.8% and 3.2%, respectively.

The broker has an add rating and $27.50 price target on its shares.

Suncorp Group Ltd (ASX: SUN)

Goldman Sachs is feeling positive about Suncorp and sees it as an ASX dividend share to buy.

Suncorp is the insurance giant behind a huge collection of brands. This includes AAMI, Apia, Bingle, CIL Insurance, GIO, Shannons, Terri Scheer, and Vero.

The broker believes that Suncorp is well-positioned thanks “in large part [to] the tailwinds that exist in the general insurance market.” This includes “very strong renewal premium rate increases and the benefit of higher investment yields.”

Goldman expects this to underpin fully franked dividends per share of 75 cents in FY 2024 and 82 cents in FY 2025. Based on the current Suncorp share price of $14.44, this will mean yields of 5.2% and 5.7%, respectively.

The broker has a buy rating and $15.00 price target on the company’s shares.

The post 2 excellent ASX dividend shares that analysts love appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• I’d grow my wealth by buying these so-called ‘expensive’ ASX stocks
• Big news: 15 ASX 200 shares smashing 52-week highs this Tuesday
• Here are the top 10 ASX 200 shares today
• 2 ASX 200 shares I’d buy for my child and hold ’til the 2030s
• Top brokers name 3 ASX shares to buy next week

Motley Fool contributor James Mickleboro has positions in Lovisa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Lovisa. The Motley Fool Australia has recommended Lovisa. 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://ift.tt/MyuN42L

The Life360 Inc (ASX: 360) share price was well and truly on form in 2023.

During the 12 months, the location technology company’s shares rose a massive 55%.

This is six times greater than the return of the ASX 200 index over the same period.

They say lightning can’t strike twice, but could it with Life360 shares? Could they deliver another 55% return for investors from current levels? Let’s find out.

Could the Life360 share price rise another 55%?

There are plenty of analysts that believe the company’s shares can climb materially this year.

For example, the team at Goldman Sachs currently has a buy rating and $10.50 price target on its shares. This implies potential upside of approximately 42% for investors over the next 12 months.

Goldman highlights that the rapidly growing company has a “compelling valuation” and is experiencing a number of tailwinds. It said:

Life360’s valuation is compelling at 0.18x growth-adjusted EV/GP vs 0.41x/0.49x MP1/SDR, and 11x/19x FY25E EV/EBITDA pre/post stock comp (adj. for R&D capitalisation). The set-up heading into the 4Q result is akin to early 2023, with reasonable consensus earnings expectations that could be upgraded through FY24E on better-than-expected operating leverage (noting we assume +15% FY24E OpEx growth). With positive tailwinds from International expansion and improving payer conversion, we stay Buy.

Over at Bell Potter, its analysts have a buy rating and $11,00 price target on the company’s shares. This suggests potential upside of approximately 50% for the Life360 share price from current levels.

Bell Potter sees a huge growth runway ahead for the company thanks to its Life360 app. It said:

The app is used globally by close to 60 million people and, of these, there are around 5 million paying subscribers. There is, therefore, a very long runway to go in terms of converting users to paying customers and even after a recent hefty price rise the company is adding around a few hundred thousand paying subscribers a quarter.

Finally, the team at Morgan Stanley is the biggest bull and believes that another 55% return is possible this year. It has an overweight rating and $11.50 price target on Life360’s shares.

It is tipping a full year result that will beat consensus expectations later this month, setting the stage for a major re-rating of its share price.

The post Will the Life360 share price rise another 55% in 2024? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 ASX shares with millionaire-maker potential
• Analysts tip 10% to 30% returns for these ASX growth shares in 2024
• Why I think Life360 shares are one of the best bargains out there
• Brokers name 3 ASX shares to buy now
• 5 ASX shares I think you can confidently invest $500 in right now

Motley Fool contributor James Mickleboro has positions in Life360. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Life360. 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.

from The Motley Fool Australia https://ift.tt/Vn7INBM

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) was out of form and sank deep into the red. The benchmark index fell 0.75% to 7,547.7 points.

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

ASX 200 expected to rebound

The Australian share market looks set to rebound on Thursday following a solid night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 37 points or 0.5% higher this morning. In late trade on Wall Street, the Dow Jones is up 0.1%, the S&P 500 has risen 0.5%, and the Nasdaq is 0.7% higher.

Oil prices tumble

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) will be on watch after a tough night for oil prices. According to Bloomberg, the WTI crude oil price is down 1.5% to US$76.71 a barrel and the Brent crude oil price is down 1.4% to US$81.60 a barrel. Surging US crude stockpiles put pressure on oil prices.

Telstra results

Telstra Group Ltd (ASX: TLS) shares will be on watch today when the telco giant releases its half-year results. According to a note out of Goldman Sachs, it expects Telstra to report EBITDA of $4,054 million (versus the consensus estimate of $4,038 mllion) and earnings per share of 9 cents.

Gold price edges lower

ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) could have a subdued day of trade after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.2% to US$2,003.7 an ounce. Traders were selling gold after rate cut hopes faded.

CBA shares rated as a sell

The team at Goldman Sachs believes investors should be selling their Commonwealth Bank of Australia (ASX: CBA) shares. In response to the bank’s half-year results, the broker has reiterated its sell rating with a trimmed price target of $81.98. It said: “1H24 cash earnings were below our expectations driven by higher-than-expected BDDs (no provision releases).”

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the top 10 ASX 200 shares today
• How are Woodside shares avoiding the market selloff today?
• Everything you need to know about the CBA dividend
• Own BHP shares? Here’s your first-half results preview
• CBA shares tumble 3% on half-year profit decline and margin pain

Motley Fool contributor James Mickleboro has positions in Woodside Energy Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group. 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.

from The Motley Fool Australia https://ift.tt/I1uFizQ

It’s fair to say that ASX healthcare shares have flummoxed investors over the past couple of years.

As interest rates headed up and consumers closed their wallets, many fund managers expected the health sector to outperform because of their defensive nature.

Perhaps because of the unusual nature of the current downturn with consumers having a massive savings buffer from COVID-19, that thesis never really played out.

But now, as the prospect of rate cuts becomes tantalisingly close, there seems to be a light at the end of the tunnel for long-struggling healthcare shares.

“We’ve got a couple of key holdings in the portfolio in small-cap healthcare,” QV Equities portfolio manager Marc Whittaker said in a video blog.

“That’s a sector that I’m really excited about. Valuations are really compelling.”

So if you’re looking for cheap health stocks to pick up right now before they shoot up, these are the ones QVE team is backing:

‘Excited’ for a return to business-as-usual

With a $600 million market cap, Australian Clinical Labs Ltd (ASX: ACL) is the third largest pathology services provider in the nation, according to Whittaker.

“Pathology is a great sector,” he said.

“It’s really about volume… You run your laboratory, largely across a fixed-cost network. And the more volume you can put through your laboratory network, the higher your operating leverage, the higher your scale, efficiencies, and so on.”

After a 43% drop in the share price since August 2022, his team is “excited” about Australian Clinical Labs’ prospects.

“Top line’s growing at around 5% to 6%, and that’s roughly in line with what we think the long term average is for the sector. So that’s been encouraging.”

After the surge in COVID-19 testing a couple of years ago, the environment and financial metrics are starting to recover back to normal.

“On the margin side, or the cost side, things are still washing through a little bit.”

GP shortage is rapidly being addressed

The post-pandemic story is similar with diagnostic imaging provider Integral Diagnostics Ltd (ASX: IDX), with the stock losing more than half its value since April 2022.

The problem for both businesses, according to Whittaker, is that there is “a bottleneck when it comes to GP visitation”.

“Whether that’s because people are still loathe to get back to the GP after the COVID experience and/or the fact there’s a bit of a shortage in GPs at the moment.

“We’ve had a controlled immigration intake for quite some time, and that really means a lot of GPs we rely on [who] come from offshore haven’t been arriving.”

But that inflow of foreign doctors is starting to now recover, and will be a tailwind for Integral Diagnostics.

“Top line’s doing okay, costs just need to start normalising a little bit,” said Whittaker.

“That top line should be enhanced by these GP visitations as they improve over time.”

The healthcare shares backed by irresistible themes

He added that both Integral and ACL, in the long run, have the demographic trend of an ageing population in their favour.

“Both are compounders in my view, so longer term, we expect them to keep delivering.”

QVE senior portfolio manager Simon Conn likes that both companies also have scope to improve efficiencies.

“One of the things I like about the sector is the technology — pathology and radiology, both benefiting from technology,” he said.

“So the ability to diagnose more things with pathology tests and radiology scans is really seeing the amount of work that these businesses do grow over time.”

The post 2 ASX healthcare shares with ‘compelling’ valuations to buy appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 3 ‘attractive’ small-cap ASX shares ready to rocket in 2024

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 recommended Integral Diagnostics. 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://ift.tt/7zwsZRq

Did you know there are roughly 2,400 ASX shares?

This means that even finance journalists like me occasionally come across tickers that I’d never before.

It also means that, at any given time, there are plenty of good buys that you don’t even realise they exist.

So with an open mind, take a look at the two stocks below that Glenmore Asset Management portfolio manager Robert Gregory is keen on.

They are both investment management companies, which is perhaps why they’re not discussed much by experts from rival financial firms.

It’s all a bit “meta”:

The small-cap ASX shares ‘ahead of our expectations’

Pacific Current Group Ltd (ASX: PAC) is reportedly a small team but has a pretty decent market capitalisation of $507 million.

The share price has risen 35% over the past 12 months, with a 7.4% boost in January alone.

Gregory attributed this to a business update late in the month.

“PAC released its quarterly funds under management (FUM) update, which was ahead of our expectations,” he said in a memo to clients.

“PAC reported group FUM of $227 billion at 31 December 2023, up +6% over the December 2023 quarter.”

The company’s boutique private capital brands Pennybacker, Victory Park, and ROC Partners all performed strongly.

“PAC’s guidance for FY24 is for total new commitments of $2 to $5 billion. Given $2.6 billion was delivered in the first half, the company is well placed for a strong FY24.”

Despite the rocketing share price, the stock remains great value for those willing to buy now.

“PAC trades on an FY24 PE multiple of ~13x, which is very attractive in our view given the robust earnings outlook.”

All six analysts agree on this one

Pacific Current owns a 4% piece of fellow investment house GQG Partners Inc (ASX: GQG), which Gregory and the Glenmore team is also bullish on.

The GQG share price also impressively rocketed 10.3% last month.

“GQG released a strong December 2023 funds under management (FUM) update, showing FUM increased from US$113 billion, end of November, to US$121 billion.

Again, notwithstanding a 37% lift in the stock price over the past 12 months, Gregory reckons GQG shares are still cheap.

“GQG continues to trade on a very attractive valuation and has a strong outlook for new inflows in 2024 given its outstanding track record across its various global equity funds.”

Pleasingly, Gregory’s peers unanimously agree.

According to CMC Invest, all six analysts covering GQG rate the stock as a buy right now.

The post 2 cheap and ‘attractive’ ASX shares to buy now that you’ve not thought of appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• What can owners of GQG shares expect in the upcoming FY23 result?
• Why the GQG share price is up 7% to a 52-week high and could keep rising
• 2 soaring ASX shares I’d buy now with no hesitation
• Morgans names the ASX cyclical shares to buy for earnings season
• Are ASX growth shares back? How these fundies delivered over 20% upside in 2023

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.

from The Motley Fool Australia https://ift.tt/TSUFd1E

Although the S&P/ASX 200 Index (ASX: XJO) has climbed more than 11% since the start of November, there are still some bargains to be snapped up for long-term investors.

Remember, each dollar you save on the buying cost is a dollar added to your eventual returns.

So while it’s impossible to time the market, entry cost matters.

Here are three ASX shares going for cheap that I can think of:

Just the start of a long journey

Xero Ltd (ASX: XRO) is a long-time favourite for growth investors, but its share price has recently stalled somewhat.

In fact, the accounting software maker is now more than 10% down since the start of September.

But the long-term outlook remains positive under chief executive Sukhinder Singh Cassidy, who has been at the helm for a year now.

She was brought in with a mission to transform the former growth-at-all-costs business to a growth-with-positive-cash-flow model.

There will be hiccups along the way, which is why the stock has spluttered over the past six months.

But long-term investors know the shift will take some time.

Professional investors certainly seem to appreciate this, with 12 out of 19 analysts currently surveyed on CMC Invest rating Xero as a buy.

The ASX shares for economic optimists

Mining technology provider RPMGlobal Holdings Ltd (ASX: RUL) is also another stock that’s made plenty of people rich in the past.

The share price has more than doubled over the five years, although it’s now 17% off its December 2021 peak.

And that could make for an ideal buying opportunity.

The macroeconomic tailwinds are certainly in place.

In the west, interest rates are already stabilising and a cut could even be not too far away. 

Meanwhile, in China, its fight against deflation continues. This could mean direct or indirect economic stimulus could be imminent.

In both regions, the developments could drive up consumption, send commodity prices higher, and RPMGlobal’s clients could have more to spend on tech.

Both Moelis and Veritas recommend RPMGlobal shares as a strong buy, according to CMC Invest.

A cheapie that’s 73% more expensive than a year ago

Staying with the mining theme, Chrysos Corporation Ltd (ASX: C79) provides assay services with unique technology that speeds up the testing with higher accuracy compared to traditional methods.

You may raise your eyebrows that I call this a bargain, since the stock price has rocketed 73% higher over the past 12 months.

However, Chrysos shares are down almost 21% since 10 January, presenting a dip.

For the same reasons as RPMGlobal, I’m bullish on Chrysos.

The high part of the mining cycle could come in the next few years, and service providers like Chrysos could really cash in.

All three experts surveyed on the CMC Invest broking platform rate the shares as a buy.

The post 3 ASX shares I think you’ll be glad you bought at these prices appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why are ASX 200 tech shares taking a beating today?
• 2 ‘oversold’ ASX shares to get onto right now at ‘attractive entry levels’
• 2 ASX stock picks with explosive potential
• I think this ONE factor gives ASX shares a huge chance to make big returns
• Brokers say these ASX mining shares are strong buys in February

Motley Fool contributor Tony Yoo has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Chrysos, RPMGlobal, and Xero. The Motley Fool Australia has positions in and has recommended Chrysos and Xero. The Motley Fool Australia has recommended RPMGlobal. 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://ift.tt/HQChjt7

Every so often, I take you through an ASX stock to demonstrate how much money you could have made if only you invested it a year or two ago.

The latest edition of this exercise though, stings a little more personally than others.

Let’s take a look at online luxury fashion retail platform Cettire Ltd (ASX: CTT).

Cettire vs the world

Back only 19 months ago, the Cettire share price was languishing at 38 cents.

It seemed everything was against this business.

Consumers were hurting from rapid interest rate rises and cost-of-living pressures. High-end fashion brands were unhappy that the deliberate scarcity of its products were deteriorating via an online platform.

It just did not seem like the world wanted $20,000 handbags.

I had some Cettire shares at that point. Let’s say you bought $20,000 worth to join me on the ride.

Like any good long-term investor, I wanted to ride out this short-term pessimism. So I held on to the ASX retail stock.

Cashing in at 163% profit

Only a few months later, in mid-September of 2022, my faith had been rewarded.

The Cettire share price had rocketed a massive 163%.

The economic conditions were still similar though, if not worse. Consumers had endured three more rate rises, inflation was still raging, and luxury goods makers were still unhappy about Cettire selling to the masses.

I thought, let’s not be greedy. Let’s sell while this retail stock is buoyant, to reduce risk.

If you exited with me then, your original $20,000 would have turned into $52,600.

That’s an outstanding return in the space of just one winter. You’d be pretty happy with that.

If you learn nothing else from this retail stock…

But look what’s happened since.

Cettire, both the business and the stock, have gone from strength to strength.

Now the share price is trading above the $4.50 mark.

That $20,000 investment you made? If you didn’t sell out when I did and instead held on, it would now be worth a whopping $238,947.

That’s a near 12-bagger in just 19 months.

There are two morals to this story.

First is that making a substantial profit is a terrible reason to sell. It’s not a decision made about the future of the company and the stock.

Second is that only a few winners will wipe out all the losses from your duds, if you have a well diversified stock portfolio.

Have a think about that when you make your trading decisions.

The post If you’d put $20,000 in this ASX retail stock 19 months ago, you’d have $239,000 now appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is buying investment property in regional areas like buying ASX small-cap shares?
• Why Bell Potter says these ASX small cap shares are buys
• Bell Potter says this rocketing small cap ASX share can keep climbing
• Why Cettire, Dexus Industria, Pilbara Minerals, and Zip shares are jumping today
• Cettire share price rockets 40% on ‘exceptional result’

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 recommended Cettire. 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://ift.tt/EviGu2V

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why AMP, Core Lithium, Downer EDI, and IDP Education shares are racing higher
• Looking for passive income? This ASX All Ords stock just boosted its dividend by 33%!
• This ASX 200 stock is surging 10% following a return to profit growth
• AMP share price rockets 10% amid 2023 earnings boost
• Why is the ASX 200 index crashing 1.5% on Wednesday?

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 Idp Education and Reliance Worldwide. The Motley Fool Australia has recommended Idp Education. 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://ift.tt/3YFzrU8

It’s Valentine’s Day! You know what everyone probably wants to do today? Talk about inflation! Chocolate prices recently hit all-time highs. I think that can tell us a number of things about today’s ASX share market.

Chocolate prices see an unwelcome spike

According to reporting by CNBC, cocoa prices hit an all-time high last week because of deteriorating weather conditions and disease challenges, which hurt crop production in the African countries of Ghana and the Ivory Coast.

Those two countries are responsible for almost two-thirds of global production.

Cocoa futures have reportedly jumped around 40% since the start of 2024, reaching an all-time high of US$5,874 per metric tonne.

David Branch, senior vice president at Wells Fargo Agri-Food Institute, said:

What’s really driving all of this is basically this El Nino that’s in place right now. It’s really affecting the crop.

Chocolate prices are going to be higher. Product manufacturers are just raising the margins and telling the retailers to eat it, and they have to try to sell it at a higher price.

What this tells me about the ASX share market

Firstly, I think it says that the inflation story is not completely over yet.

We heard earlier this week that the US consumer price index rose by 0.3% in January, according to CNBC, which was more than expected. It was driven by shelter prices increasing by 0.6% over the month, which made up more than two-thirds of the increase. Excluding volatile elements, the core CPI went up 0.4% for the month and 3.9% (compared to expectations of 0.3% and 3.7%, respectively). The US Federal Reserve is aiming at a target of 2% annual inflation.

With (ASX) share market investors seemingly pinning their hopes on multiple rate cuts this year, that view may end up premature. It’s possible there could be multiple cuts in Australia this year, but it’s also possible there may be no cuts at all. Remember, Australia’s interest rate is materially lower than the US, the UK, New Zealand and Canada.

Ultimately, share prices should be representative of what’s happening with a company’s profit and growth. A lot of share prices have risen over the last few months, so they need to report numbers that justify the valuation.

Look at what happened to Commonwealth Bank of Australia (ASX: CBA), it reported that net profit after tax (NPAT) declined amid strong competition, and that sent the CBA share price lower. Some retailers have managed to beat forecasts.

Also, remember interest rates should be influential on asset prices. We haven’t seen this RBA cash rate for a long time, yet share prices are generally at/close to all-time highs. Even a reduction of the RBA cash rate to 4% or 3.5% would mean it’s much higher than where it was in 2019.

I do think business profits (and share prices) can climb over the longer term, and I continue to see long-term opportunities in certain places. But, I also believe investors should be careful about some industries and some valuations if the aim is to beat the market’s return.

If we look carefully, there are definitely still some appealing ASX share market opportunities.

The post What all-time high chocolate prices can tell us about the ASX share market appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Guess which ASX 300 director just cashed in $2.3 million worth of company shares
• Are Metcash shares worth buying for that fat 6% dividend yield?
• How are Woodside shares avoiding the market selloff today?
• How price cuts on the shelves could hurt Coles shares
• I’d grow my wealth by buying these so-called ‘expensive’ ASX stocks

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.

from The Motley Fool Australia https://ift.tt/Mc4BSKt