Lithium has been a hot theme among ASX investors for at least a couple of years now, and there are few signs of waning demand.

The simple fact is that the element is a major ingredient for high-powered batteries, like the ones used in electric cars. And such batteries are crucial for the world to transition to a zero-emissions era.

However, with so many investors piling onto mature lithium producers, they are already pretty expensive.

For a better risk-reward balance, one may need to look at miners that haven’t yet reached their full extraction potential.

Fortunately, this week some professionals named two such ASX shares as buys:

Check out these ‘big lithium deposits’

BW Equities equities salesperson Tom Bleakley is a fan of Canadian company Patriot Battery Metals Inc CDI (ASX: PMT), which has its shares trading in Australia.

“The explorer is focusing on acquiring and developing mineral properties containing battery, base and precious metals.,” Bleakley told The Bull.

The Patriot share price has risen a handsome 35% over the past 12 months.

Bleakley noted that the company already has “big lithium deposits” in North America. 

“Lithium is a critical mineral to produce batteries for electric vehicles. A key advantage [for Patriot] is its close proximity to North American battery manufacturers.”

It seems Bleakley’s peers overwhelmingly agree with his recommendation.

According to CMC Markets, all six analysts that cover Patriot are calling it a strong buy at the moment.

Open pit mining just started in WA

Meanwhile, Sequoia Wealth Management senior investment manager Peter Day’s buy recommendation is Liontown Resources Ltd (ASX: LTR).

“Liontown is an emerging tier-1 battery minerals producer,” he said.

“Open pit mining has started at the Kathleen Valley Lithium Project in Western Australia.”

While the Liontown share price is flat from where it was 12 months ago, it has rocketed an eye-popping 3,400% over the last five years.

This makes it a 35-bagger for those who followed the journey from the start.

According to Day, its current prospects are also exciting.

“The company plans to supply about 500,000 tonnes of 6% lithium oxide concentrate a year. First production is expected in 2024,” he said.

“We believe sustaining the development timeline is a key catalyst for Liontown.”

Five of the eight analysts covering Liontown shares on CMC Markets are currently rating it as a strong buy. The remaining three consider it a hold.

The post 2 ASX lithium shares to pounce on before they explode: experts 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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ASX growth shares could be an underrated way to unlock important cash flow. Certainly, ASX dividend shares that offer high starting dividend yields aren’t the only way to achieve real cash returns.

It’s simple enough to envisage a $100,000 portfolio of income stocks that would pay thousands of dollars in dividends.

Names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), and Woodside Energy Group Ltd (ASX: WDS) may pay a decent yield today but they may not achieve a strong capital compound annual growth rate (CAGR) from here.

However, I think there are a couple of ways that ASX growth shares can achieve good cash flow for investors.

Strong dividend growth

There are plenty of businesses on the ASX that don’t have dividend yields of more than 3%. That could be because of a combination of lower dividend payout ratios as well as higher price/earnings (P/E) ratios.

This could reflect the fact the business is retaining more of its profit to reinvest (therefore, it has a lower payout ratio) and the market is pricing the business for a higher earnings growth rate.

Some ASX growth shares have achieved enormous dividend growth because their payouts are growing along with their earnings growth.

For example, Lovisa Holdings Ltd (ASX: LOV) shares paid an annual dividend per share of 17.6 cents in FY17, which had grown to 74 cents per share in FY22.

Hub24 Ltd (ASX: HUB) has grown its annual dividend per share from 4.6 cents in FY19, up to 20 cents per share in FY22.

Johns Lyng Group Ltd (ASX: JLG) shares paid an annual dividend of 3 cents per share in FY19 and this has grown to 5.7 cents per share in FY22.

Netwealth Group Ltd (ASX: NWL) shares paid an annual dividend per share of 10.6 cents in FY18 and this had grown to 20 cents per share in FY22.

TechnologyOne Ltd (ASX: TNE) shares paid a dividend per share of 5.6 cents in FY13, which had grown to 17 cents in FY22.

What I’m trying to show here is that even if a dividend yield is 1.5% or 2% today, if the dividend quickly doubles or triples then the yield has become decent and that dividend could keep growing strongly.

Sell-down ASX growth shares

If an investor had a $100,000 portfolio of ASX growth shares, investors will hopefully see a certain level of capital growth over time.

Instead of receiving dividends, investors could decide to sell a portion of their investment and use the cash from that sale.

For example, if a $100,000 growth portfolio increased by 10% in a year then it would gain $10,000. An investor could sell $5,000, access that money, and be left with a portfolio worth $105,000.

If the growth portfolio worth $105,000 grew by 10% again, an investor would have $115,500. An investor could then sell $5,000 or $5,500 of those shares and be left with around $110,000.

One benefit of this strategy is that if an Australian taxpayer holds an investment for more than 12 months by the time of the sale, the gain can be eligible for a capital gains tax discount which can halve the taxable gain.

Of course, growth isn’t guaranteed every year. In some years, the growth could be less than 10% but, of course, in other years, it could be stronger.

The post How to create a second income from ASX growth shares 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 positions in and has recommended Hub24, Johns Lyng Group, Lovisa, and Netwealth Group. The Motley Fool Australia has positions in and has recommended Hub24 and Netwealth Group. The Motley Fool Australia has recommended Johns Lyng Group, Lovisa, and Technology One. 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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Sure, lithium has been all the rage among stock investors in recent times.

But batteries will tell you they contain many more ingredients than just one element.

Titanium and copper are two minerals that aren’t mentioned as much as lithium, but are just as critical for the production of many batteries.

And of course, batteries are critical for many countries’ move towards zero-carbon emissions, as they allow clean electricity to be stored and used only when necessary.

This week a pair of experts named two ASX shares to buy that represent businesses producing those metals:

Reducing the cost and carbon footprint of producing titanium

Iperionx Ltd (ASX: IPX) is not a household name among investors, but BW Equities equities salesperson Tom Bleakley rates it as a buy at the moment.

The company is different from the typical resources extraction business.

“IperionX recycles titanium from scrap material,” Bleakley told The Bull.

“This reduces the cost and carbon footprint compared to traditional manufacturing processes.”

The share price is down about 34% since April last year.

IperionX has its headquarters in Charlotte, North Carolina and does its manufacturing in the US, according to Bleakley.

“Titanium is a critical metal used in numerous military and consumer applications,” he said.

“IperionX recently announced it would be producing parts for the US Navy.”

$12 million to bring project to fruition

Caravel Minerals Ltd (ASX: CVV) is another business not seen often on investment memos.

Its shares are a buy though, according to Seneca investment advisor Tony Langford.

“Caravel is a Western Australian-based copper explorer and development company,” he said.

“The company has recently appointed an experienced chief executive and has raised $12 million to progress a definitive feasibility study.”

The Caravel share price is down about 28% over the past 12 months.

But Langford is upbeat about the project’s prospects after the feasibility study.

“Construction is expected to start in 2024, with first production planned for 2026,” he said.

“Caravel offers exposure to patient investors who are confident about the outlook for this essential metal.”

The post 2 obscure ASX battery mineral shares to buy right now: experts 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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The ASX iron ore share segment of the market has some of the world’s leading businesses. In this article, I’m going to look at Fortescue Metals Group Limited (ASX: FMG) shares and BHP Group Ltd (ASX: BHP) shares.

It has been a fruitful time to own iron ore miners in the last few months as their share prices shot higher with the iron ore price fetching above US$120 per tonne. The last few years have seen strong dividends from both companies as Chinese demand had been strong enough for long enough to drive large profits in FY20, FY21, and FY22.

While both of these businesses have enormous Australian iron ore operations, it’s the new things they’re doing outside of Australian iron ore that make them particularly interesting to me. Knowing what the future businesses will look like could be what influences the market’s perception of the ASX iron ore shares in the future.

Expansion into Africa?

Australia and Brazil are the two iron ore powerhouses of the world. But the continent of Africa could soon be a third player in the global iron sector.

Fortescue is planning to get involved in that region with the Belinga iron ore project in Gabon. It will be a venture with African partners, including the Gabonese government which will own a minority of the business.

Fortescue shares got a boost after the company announced it had signed the mining convention which governs all legal, fiscal, and regulatory regimes. This includes early development for the production of up to two million tonnes per annum, while studies advance potential designs of a large-scale development in Gabon.

The ASX mining share said that the early-stage exploration of Belinga shows similar grade and scale characteristics to Simandou at a comparable stage. Simandou is a major planned iron project in Guinea, Africa in which Rio Tinto Limited (ASX: RIO) is also involved.

This could be a major boost for the Fortescue share price if it becomes a large, operational mine.

BHP shares are gaining exposure to decarbonisation commodities

While iron ore accounts for the largest portion of BHP’s profit, the mining giant also has exposure to copper and nickel. It has copper exposure in South America and Australia, and nickel operations in Australia.

The company is also expanding through the acquisition of OZ Minerals Limited (ASX: OZL), a major copper miner. Despite paying a sizeable premium to pre-bid OZ Minerals’ share price, BHP thinks it can extract a lot of synergies from the combination. Plus, it wants to grow its production of green commodities as the world is going to need significant copper, nickel, and other minerals to meet decarbonisation targets.

Copper is necessary for the electrification of cars, network grids, and so on.

BHP is also working on opening the Jansen potash project in Canada. Potash is seen as a greener form of fertiliser. This project could achieve high margins and have a mine life of many decades. It could also be a useful addition for BHP once operational.

Fortescue’s major green energy plans

Fortescue has a plan to be a leading producer of green hydrogen. It’s working with governments and organisations around the world to create a portfolio of green hydrogen-producing locations. Green hydrogen and green ammonia could be effective at replacing fuel for heavy machinery, aircraft, and boats.

Green hydrogen is produced by using renewable energy to separate hydrogen from water. European energy giant E.ON has already signed up to buy around a third of Fortescue’s green hydrogen production by 2030.

Fortescue also wants to become a global leader in advanced batteries.

Are Fortescue shares or BHP shares a better buy?

After the strong run of both ASX iron ore shares, I wouldn’t jump on either of them at the moment. A drop of around 20% from here could represent a good price for the long term.

According to Commsec, Fortescue could pay a grossed-up dividend yield of around 10% in FY23 and BHP could pay a grossed-up dividend yield of around 9%.

I think Fortescue is the higher-risk choice of the two due to its green energy plans, but I also think this has greater growth potential. It could be a leader in a large new market. That’s why I own Fortescue shares.

The post Better buy: Fortescue vs BHP shares appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. 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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Analysts have been running the rule over a number of ASX dividend shares recently.

Two that have been tipped as buys are listed below. Here’s why they are bullish on them:

Accent Group Ltd (ASX: AX1)

Goldman Sachs is a fan of this footwear and youth apparel retailer and believes it is an ASX dividend share to buy.

The broker is positive on the company due largely to its exposure to younger consumers. It expects Accent’s target demographic to continue spending largely as normal in 2023 due to a rise in the minimum wage and their lower exposure to rising interest rates. It commented:

In aggregate, we believe this cohort has an additional ~A$1bn in spending capacity: the combination of minimum wage uplifts and limited inflationary pressures has resulted in an additional ~A$570-930 in annual spending capacity (per person) among the cohort of young adults who work and live at home.

Goldman is expecting this to lead to fully franked dividends of 12.2 cents per share in FY 2023 and 13.5 cents per share in FY 2024. Based on the current Accent share price of $2.07, this will mean yields of 5.9% and 6.5%, respectively.

Goldman has a buy rating and $2.75 price target on the company’s shares.

Coles Group Ltd (ASX: COL)

Analysts at Morgans have named this supermarket operator as a buy. Its analysts have an add rating and $19.50 price target on its shares.

Morgans thinks Coles’ shares are attractively priced. Particularly given its defensive qualities and the prospect of tough economic times. It explained:

Trading on 20.6x FY23F PE and 4.0% yield, we continue to see COL as offering good value with the company’s solid balance sheet and defensive characteristics putting it in a good position to navigate through a weaker economic environment. The unwinding of local shopping should also help further market share gains.

And while a recent rise in the Coles share price means that it won’t quite offer a 4% yield now, it isn’t far off. Morgans expects a fully franked dividend of 64 cents per share in FY 2023 and a fully franked dividend of 66 cents per share in FY 2024. Based on the current Coles share price of $17.97, this will mean yields of 3.6% and 3.7%, respectively.

The post These are the growing ASX dividend shares to buy now: 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 positions in and has recommended Coles Group. The Motley Fool Australia has recommended Accent 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a small decline. The benchmark index fell 0.2% to 7,417.8 points.

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

ASX 200 expected to rise

The Australian share market looks set to rise on Tuesday following a strong night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 40 points or 0.55% higher. In late trade in the United States, the Dow Jones is up 0.9%, the S&P 500 is up 1%, and the NASDAQ is up 1.4%.

Oil prices rise

Energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a decent day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.5% to US$80.16 a barrel and the Brent crude oil price is up 0.25% to US$86.63 a barrel. Russia’s plan to cut production has continued to give oil prices a boost.

CSL half-year result

The CSL Limited (ASX: CSL) share price will be one to watch on Tuesday when the biotherapeutics giant releases its eagerly anticipated half year results. According to CommSec, the market is expecting a net profit after tax of US$1.6 billion and an interim dividend of US$1.12 per share. Investors may also want to pay attention to commentary around plasma collections.

Gold price falls

It could be a tough day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price fell overnight. According to CNBC, the spot gold price is down 0.5% to US$1,865.5 an ounce. Strengthening bond yields weighed on the safe haven asset.

Short squeeze coming for Breville shares?

The Breville Group Ltd (ASX: BRG) share price will be one to watch closely today. The appliance manufacturer is releasing its half year results and has been tipped as a company that could potentially surprise positively by Goldman Sachs. The broker commented: “We expect 1H23 results to offer a positive surprise vs. the Street. As a result, any short covering driven by such outperformance could push the stock higher.” It expects first half sales growth of 6.2% and EBIT growth of 6.8%.

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

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Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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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Premium content from Motley Fool Extreme Opportunities

Ouch! What a painful year 2022 was for investors!

In an effort to curb rampant inflation, Central Banks around the world increased interest rates significantly and at a pace not seen since the late 1980s. This of course sent asset prices tumbling and one of the worst affected categories was growth focussed equities, the market darling of the last bull market.

In this report, we will uncover five companies that we think are set up well for a strong rebound as well as one bonus idea.

What Does Pinnacle Do?

Pinnacle Investment Management Group (ASX:PNI) is a financial services and ‘multi-affiliate investment management firm’ that operates slightly differently to a typical fund manager.

It holds an equity interest in numerous investment management firms (its affiliates) and provides them with a wide array of services, laying the foundation for these affiliates to deliver exceptional investment advice to their clients in a highly regulated environment.

Such services include working capital and seed funding, as well as a comprehensive range of cost-effective distribution and non-investment support services. These cover human resources, information technology, marketing, legal support, marketing, as well as a number of others.

To put it simply, the Pinnacle business model involves having several investment management firms under the one ‘umbrella’. Pinnacle holds ownership interests in each of its rigorously selected boutique partners, and then benefits from their performance and growth.

Why Is Pinnacle’s Share Price Down So Much?

Pinnacle has gone through a turbulent period with its share price sliding by more than 50% from its all-time highs of $19.29 in November 2021, to less than $9 at the beginning of January 2023. In fact, it sunk to as low as $6.49 in June last year.

The reason for this decline is largely because the performance of Pinnacle’s fund manager affiliates is mostly correlated with the equities market. When equity markets rise, Pinnacle fund managers earn higher returns on their investments and higher performance fees. The converse is also true. When markets decline, Pinnacle fund managers generally earn lower returns and fail to earn performance fees.

As such, the company’s share price has suffered due to the decline in the broader equity markets throughout 2022. 

However, the company has been diversifying its earnings base across different asset classes, investment styles and geographies. It is also tilting towards an increased revenue mix from retail clients and performance-centric strategies.

By doing so, Pinnacle is expanding the breadth of its performance fees to reduce its exposure to movements in equity markets, whilst simultaneously pursuing new avenues to grow its business.

What Are Pinnacle’s Rebound Qualities?

As global markets recover, we believe that Pinnacle fund managers will also earn higher returns. Beyond that, there is an even bigger opportunity for Pinnacle’s management to grow the business.

As we alluded to above, Pinnacle’s strategy to diversify its portfolio of affiliates based on different asset classes, strategies, and geographies could be a winning formula in boosting its management and performance fees, regardless of the market cycle.

Since its founding in 2006, the company has developed a strong and reputable brand in Australia, as well as distribution-related intellectual property in our nation. We believe that Pinnacle can now replicate its business model in overseas markets by extending its distribution capabilities, and by backing emerging boutiques in other geographic regions.

In recent years, the company has opened offices in Japan, the UK and US. Whilst it may take time to build out its distribution capabilities in other markets, international expansion creates optionality and provides new growth levers for Pinnacle to pursue.

And in our view, there is no better crew to tackle such expansion than Pinnacle’s strong management team, which boasts a proven multi-year record of sound execution, capital allocation, and earnings and FUM growth.

Source: Pinnacle Investment Management AGM Presentation.

Overall, we believe that this combination of qualities – which has been built and refined over many years – is incredibly difficult to replicate by new rivals seeking to enter this space, which gives Pinnacle the upper hand.

The post Just Released: 5 ‘Rebound Rocket’ stocks to buy before the next bull market [PREMIUM PICKS] appeared first on The Motley Fool Australia.

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Motley Fool contributor Kevin Gandiya 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 Pinnacle Investment Management Group. The Motley Fool Australia has positions in and has recommended Pinnacle Investment Management 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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Are you interested in adding some ASX growth shares to your portfolio? If you are, you may want to look at the three listed below.

Here’s what you need to know about these buy-rated growth shares:

Life360 Inc (ASX: 360)

The first ASX growth share that has been named as a buy is this rapidly growing location technology company.

Life360 provides a mobile app for families that offers useful features such as communications, driver safety, and location sharing. At the last count, there were approximately 50 million active monthly users of the app, which is generating significant recurring revenue.

Bell Potter is bullish on the company’s future. It currently has a buy rating and $9.00 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that could be a buy is this leading online furniture and homewares retailer.

Goldman Sachs has tipped Temple & Webster to grow very strongly over the long term thanks to its strong position in a retail category that is still in the early stages of shifting online.

It highlights that the category in Australia remains under-penetrated online relative to other markets with 16.5% of sales made online versus 28% in the UK and 25% in the United States. And with this side of the retail market having higher barriers to entry, this bodes well for Temple & Webster.

Goldman has a buy rating and $7.60 price target on its shares.

WiseTech Global Ltd (ASX: WTC)

A final ASX growth share that could be a buy is this logistics solutions company.

WiseTech is the company behind the popular CargoWise One solution, which allows users to execute complex logistics transactions and manage freight operations from a single, easy to use platform.

Demand has been strong for its platform over the last few years and underpinned strong sales and profit growth. The good news is that this strong form is expected to continue in FY 2023, with management recently reaffirming its guidance for revenue growth of 20% to 23% and EBITDA growth of 21% to 30%.

Morgan Stanley is positive on the company’s outlook. It has an overweight rating and $64.00 price target on its shares.

The post Looking for growth? 3 ASX shares experts rate as buys appeared first on The Motley Fool Australia.

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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 Life360, Temple & Webster Group, and WiseTech Global. The Motley Fool Australia has positions in and has recommended WiseTech Global. The Motley Fool Australia has recommended Temple & Webster 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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Wesfarmers Ltd (ASX: WES) shares are taking centre stage this week with the company scheduled to report on 15 February 2023.

It’s a very interesting time period for the business because the FY23 first half is being compared against the first half of FY22. In HY22, regions like Victoria and NSW were still under COVID lockdowns.

With the ending of COVID-19 restrictions on bricks and mortar stores, the retail businesses are seemingly doing well. Wesfarmers owns various retailers like Bunnings, Kmart, Target, Officeworks and Priceline.

For example, we’ve already heard from JB Hi-Fi Limited (ASX: JBH) which reported that total sales increased by 8.6% to $5.3 billion and net profit after tax (NPAT) was up by 14.6% to $330 million.

What’s driving the Wesfarmers share price recently?

The Wesfarmers share price has dropped by 4% since 3 February 2023.

A large part of that decline may be explained by the market’s reaction to the news that the Reserve Bank of Australia (RBA) is going to keep rising interest rates to push down on inflation.

The RBA said that strong domestic demand is adding to inflationary pressures in a number of areas of the economy, and unemployment is at the lowest rate since 1974. Wages growth is picking up, with more expected because of the tight labour market and higher inflation. The RBA wants to avoid a price-wages spiral.

Australia’s central bank wants to return inflation to its target of between 2% to 3%. Inflation may not get back to 3% by mid-2025 according to the RBA’s central forecast.

Therefore, more interest rate increases are expected in the months ahead.

While higher interest rates are not ideal for households, the comments about the strength of the economy may suggest that Wesfarmers’ earnings could remain strong up to this point, which would be good for the Wesfarmers share price.

Indeed, at the company’s annual general meeting (AGM) in late October it said that combined sales growth for Kmart and Target in the year to date continued to be “pleasing”.

Bunnings sales for the year to date were “resilient” and continued to be supported by “strong demand from commercial customers”.

Officeworks sales in the year to October were “broadly in line with the prior year”.

Wesfarmers chemicals, energy and fertilisers (WesCEF) continued to benefit from “strong customer demand and elevated commodity prices”.

The industrial and safety division “continued to improve” with sales growth across all business units.

Time to buy?

It’s not all going Wesfarmers’ way, the business was also contending with elevated supply chain costs, rising wages and higher utility costs.

With the Wesfarmers share price down by around 25% since August 2021, I think it looks much better value.

Commsec estimates suggest that Wesfarmers earnings per share (EPS) could grow this year, putting it at 22 times FY23’s estimated earnings.

I think the diversification of the business, with a focus on expanding in some industries like lithium and healthcare, gives me confidence about the company’s long-term future.

The Wesfarmers share price may drop further in 2023 at some point, but that’d make it even more attractive to me.

The post Should I buy Wesfarmers shares before the company reports this week? 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 Australia has recommended Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) got off to a rough start this week, falling 0.21% on Monday to close at 7,417.8 points.

Meanwhile, the February earnings season stepped up a gear, with results from Insurance Australia Group Ltd (ASX: IAG), Aurizon Holdings Ltd (ASX: AZJ), Beach Energy Ltd (ASX: BPT), and Endeavour Group Ltd (ASX: EDV) all hitting the market.  

Speaking of earnings, the Star Entertainment Group Ltd (ASX: SGR) share price crashed 20% after the company revealed that increased regulation and competition has taken a major toll on its bottom line.

Perhaps unsurprisingly, the company’s home sector, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) weighed heaviest, falling 1.4%.

Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) outperformed all others, gaining 1.8% on the back of strengthening oil prices. The black liquid’s value lifted over 2% on Friday amid reports Russia will cut its oil output by 5% next month.

But the top performing ASX 200 share wasn’t from the energy sector. Let’s take a look at which stock posted today’s biggest gain.

Top 10 ASX 200 shares today

The IAG share price posted the biggest gain of the ASX 200 on Monday, soaring 4.5% to close at $4.92.

The insurer’s post-tax profit rocketed more than 170% year-on-year last half to reach $468 million.

These shares made today’s biggest gains:

ASX-listed company	Share price	Price change
Insurance Australia Group Ltd (ASX: IAG)	$4.92	4.46%
Endeavour Group Ltd (ASX: EDV)	$7.10	4.11%
Coronado Global Resources Inc (ASX: CRN)	$2.02	3.59%
Karoon Energy Ltd (ASX: KAR)	$2.23	3.24%
Johns Lyng Group Ltd (ASX: JLG)	$5.76	3.23%
Silver Lake Resources Limited (ASX: SLR)	$1.145	3.15%
Whitehaven Coal Ltd (ASX: WHC)	$7.93	2.45%
Seven Group Holdings Ltd (ASX: SVW)	$23.53	2.35%
Woodside Energy Group Ltd (ASX: WDS)	$36.62	2.12%
Sayona Mining Ltd (ASX: SYA)	$0.245	2.08%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today 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 positions in and has recommended Johns Lyng Group. The Motley Fool Australia has recommended Aurizon and Johns Lyng 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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