2023 has so far been a good year for the Wesfarmers Ltd (ASX: WES) share price, and it could soon get better if one broker is to be believed.

Morgans is notably hopeful for the company behind iconic retailers like Kmart, Bunnings, Target, and Officeworks, as well as lesser-known businesses including WesCEF and lithium resource Mt Holland.

It’s tipping the stock to grow, and its also hopeful of the company’s dividends.

Right now, the Wesfarmers share price is $49.29. That’s 8.4% higher than it was at the start of 2023.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has risen 7.1% so far this year.

So, what might drive the stock even higher in the future? Let’s take a look.

Could the Wesfarmers share price surpass $55 in 2023?

The ball might be in Wesfarmers’ court in 2023, according to Morgans.

The broker tips the economic environment to soften this year. Meanwhile, many experts are forecasting recessions to hit some of the globe’s largest economies as higher interest rates, employed in a bid to tame inflation, take their toll.

Fortunately, Kmart could be “well-placed to benefit” from such a shift, Morgans says, courtesy of my Fool colleague James. It notes the average price of an item at the department store chain is around $6 to $7.

Wesfarmers managing director and CEO Rob Scott also expressed that the company could be poised to benefit from an economic slowdown at its October annual general meeting, saying:

While there are some risks on the horizon – including elevated inflation, rising interest rates and geopolitical tensions, I continue to believe that Wesfarmers is well positioned for this environment and has the capacity to effectively manage a range of economic scenarios.

Our balance sheet is strong. We have a diverse portfolio of high quality, cash-generative businesses, and new opportunities for value creation.

Morgans tips the Wesfarmers share price to reach $55.60 – a potential 12.75% upside. Meanwhile, the company could work to grow the passive income it offers investors.

The broker forecasts Wesfarmers to pay $1.82 per share in dividends this financial year and $1.89 per share next financial year.

That’s up from $1.80 per share last financial year and could see Wesfarmers boasting a 3.8% dividend yield by financial year 2024, considering its current share price.

Though, not all experts are so positive. Goldman Sachs rates the stock as a sell, slapping it with a $42.20 price target – a potential 14% downside.

The post Do Wesfarmers shares really offer 13% upside AND passive income? 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 Goldman Sachs Group. The Motley Fool Australia has positions in and has recommended Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Brainchip Holdings Ltd (ASX: BRN) share price is having a difficult start to the year.

Earlier today, the semiconductor company’s shares dropped almost 2% to 61 cents.

When the Brainchip share price hit that level, it meant it was down 19% since the start of the year and a massive 63% over the last 12 months. The latter can be seen on the chart below.

Why are investors selling down the Brainchip share price?

Investors have been selling down the company’s shares over the last 12 months due to its abject financial performance.

Despite hyping up its technology, market opportunity, and sales activity and engagement, the company is still generating less revenue than some cafes.

That wouldn’t be too bad if the company had a $50 million to $100 million market capitalisation, but that is not the case.

Brainchip had a market capitalisation approaching $3 billion 12 months ago. And while that has now dropped down to approximately $1.1 billion, it is still a crazy valuation for a loss-making tech stock with a tiny team that is trying to compete with absolute behemoths that spend billions of dollars on research and development each year.

But that’s what happens when a meme stock has a good story and a strong social media following.

Short sellers appear to have caught onto this and have been increasing their positions in the company in recent months.

Clearly, they believe the Brainchip share price can fall materially from current levels. And as we have seen plenty of times in the past, it is never wise to bet against short sellers.

The post Why has the BrainChip share price crashed 19% in 2023? appeared first on The Motley Fool Australia.

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

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The Treasury Wine Estates Ltd (ASX: TWE) share price is up 1.77% to $14.40 amid news that China may shift its position on tariffs for Australian wine imports.

According to reporting in The Australian, a Chinese ministry official has indicated they may be willing to move on the tariffs.

Is China about to lift its wine tariffs?

At a briefing in China, the commerce spokeswoman Shu Jueting was asked a question about Australian wine tariffs.

She reportedly said: “China is willing to communicate on some technical issues in bilateral trade which are of concern to both sides.”

China imposed tariffs of up to 212% on Australian wine imports in 2020. This occurred as relations soured with the Australian Government.

ASX wine shares were hit hard because the tariffs effectively rendered one of our biggest export markets redundant.

Government data shows the Chinese market was worth $1.1 billion at its peak in 2019-20. It represented 37% of Australia’s total wine exports at the time.

Today, Austrade says 60% of Australian wine is exported and we are the world’s fifth largest wine exporter.

We have more than 6,000 grape growers and 2,000 wineries. About 1,000 producers export their wine to more than 100 international locations.  

How the tariffs killed the Treasury Wine share price

The Chinese market was crucial to Treasury Wine prior to the tariffs being imposed in November 2020.

The Treasury Wine share price crashed to $7.87 per share on 5 November after news of the tariffs broke. Just three months earlier, it had been trading 26% higher.

More than two years down the road, Treasury Wine has found other markets for its Australian products. If China were to reopen as an export destination, it would give Treasury Wine an enormous ‘new’ market.

The Treasury Wine share price hit a 52-week high of $14.84 on 1 February. This was driven by hopes Australia and China may rekindle their trade relationship.

At a GSFM briefing on 24 January, Tribeca portfolio manager Jun Bei Liu said even just a reduction in tariffs would create “an earnings upgrade of between 15% to 20% for [Treasury Wine]”.

She said the Treasury Wine share price (trading at a high of $14.44 that day) “hasn’t really reflected that yet”.

The post Treasury Wine share price climbs on China tariff hopes appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 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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Pilbara Minerals Ltd (ASX: PLS) shares are bucking the wider selling action on the S&P/ASX 200 Index (ASX: XJO) today.

The ASX lithium stock is currently trading for $4.83 per share, up 1% during Friday’s lunch hour.

That’s today’s price action.

Now, if you own Pilbara Minerals shares, or plan to, here’s why the miner will likely be doing business with core Chinese customers for many years.

What’s happening with China?

China leads the world in EV production.

In 2022, EV sales in the middle kingdom averaged more than 500,000 per month, totalling 6.9 million units over the full year. A figure that’s not expected to slow down anytime soon.

That’s important for lithium, and by extension, Pilbara Minerals shares, as roughly 75% of the world’s lithium consumption goes into rechargeable batteries.

Now lithium has been labelled a critical mineral by Australia and its allies. Which has seen Western nations work to source supply chains outside of China.

But, according to Pilbara Minerals CEO Dale Henderson, China is set to be a major buyer of the miner’s lithium – sold in the form of spodumene concentrate – for a long time.

“I think they will be a key customer for Pilbara for a long time yet just because of the structural landscape that has evolved,” Henderson said (quoted by The Australian Financial Review).

Henderson noted that Great Wall Motor Company and Ganfeng are the biggest buyers of Pilbara Minerals’ Western Australian lithium exports.

“The lithium-ion industry is essentially completely domiciled in China, bar some emerging shoots elsewhere,” he said. “So we have had to make the choice to work with China and our customers have been fantastic partners in the main.”

Henderson added that the Chinese lengthy experience with lithium-ion battery production gives the country a competitive edge.

“China is really good in this space, they have honed their skills, they have done it for a long time, they will be really competitive for a long time,” he said.

How have Pilbara Mineral shares been tracking?

As you can see in the chart below, Pilbara Minerals shares have shot out of the blocks in 2023, up 29%. Investors who bought shares six months ago will be sitting on gains of 62%.

The post Own Pilbara Minerals shares? Here’s why China is set to remain a ‘key customer’ appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben 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 I had a spare $1,000, I would look to put it to work in ASX shares.

After all, although savings accounts are offering improved interest rates, this still doesn’t come close to the potential returns on offer in the stock market.

But which ASX shares would be good options for this $1,000? Two that I would seriously consider are listed below:

Altium Limited (ASX: ALU)

I think Altium could be a great ASX share to buy. It is a software company that focuses on electronics design systems for 3D PCB design and embedded system development.

The Altium Designer software is regarded as the best in the industry and is used by leading electronic design teams from companies and organisations such as BAE Systems, Dell, Microsoft, NASA, and Tesla.

The company also has a number of businesses that complement its core offering. These are the NEXUS collaboration platform and the Octopart electronic parts search engine. Business has been booming for the latter recently because of parts shortages.

Altium certainly has come a long way over the last decade, but it still has plenty of growth ahead. For example, in the near term, the company is aiming to achieve US$500 million in revenue by 2026. This is more than double FY 2022’s revenue of US$220.8 million. Furthermore, with management aiming to improve its margins over the same period, there’s potential for its earnings to grow at an even quicker rate.

And while Altium’s shares are not cheap at 68 times trailing earnings, and therefore carry a lot of risk, I still believe they represent good value relative to its growth outlook.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX share that I would invest $1,000 into is Universal Store. It is the fashion retail company behind the eponymous Universal Store brand. It also has the Perfect Stranger brand in its portfolio and recently completed the acquisition of Byron Bay-based fashion brand Thrills.

I think Universal Store is one of the best options in the retail sector right now. Not only are its shares attractively priced at 13 times estimated forward earnings, but the company appears better positioned than most for growth in the current environment.

This is thanks to its target market being younger consumers, which are expected to continue spending in 2023 due to increases in the minimum wage and their lack of exposure to rising interest rates.

The post If I had a spare $1,000, here’s where I’d invest in the stock market now appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. 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 not a fan of stock picking but want to make some buy and hold investments, then exchange traded funds (ETFs) could be worth considering.

Two high quality ETFs that could be top buy and hold options for investors are listed below. Here’s what you need to know about them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF that could be a great buy and hold option is the BetaShares NASDAQ 100 ETF.

This ETF aims to track the performance of the NASDAQ-100 before fees and expenses. This index comprises 100 of the largest non-financial companies listed on the NASDAQ stock market.

Among the 100 companies you’ll be gaining access to are global giants such as Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia and Tesla.

Given the significant weakness on the Nasdaq index last year, now could be an opportune time to buy this exceptionally high quality group of shares with a long term view.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF for investors to consider as a buy and hold option is the Vanguard MSCI Index International Shares ETF.

This ETF provides investors with exposure to approximately 1,500 of the world’s largest listed companies from major developed countries. This allows investors to participate in the long-term growth potential of international economies outside Australia.

In addition, the ETF can bring instant diversification to a portfolio thanks to its exposure to numerous sectors and countries.

Among the ETF’s largest holdings are a good number of household names. This includes the likes of Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

The post 2 fantastic ETFs for ASX investors to buy and hold 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 positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended 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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There are plenty of quality ASX growth shares to consider as investments.

Two that could be standout picks right now are listed below. Here’s why brokers are feeling very bullish about these shares:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

Analysts at Morgans believe that this pizza chain operator is a growth share to buy. Its analysts have an add rating and $90.00 price target on its shares.

The broker believes that recent share price weakness caused by temporary headwinds has created a buying opportunity for investors. Particularly given its strong brand and global expansion plans. Morgans explained:

DMP is, in our opinion, a high quality operator with significant brand strength, first class executive management and a global platform for long-term network expansion. Cost inflation and adverse FX movements present significant challenges to earnings at present.

We believe these pressures are transitory in nature. In our opinion, now is the best time to consider an investment in a quality business like DMP that is facing headwinds that will reverse in time. The recent equity raise will fund DMP’s acquisition of the remaining stake in its German joint venture and keep gearing low enough to allow for future M&A optionality.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that has been named as a buy is Temple & Webster.

Goldman Sachs is very bullish on this online furniture and homewares retailer and has put a buy rating and $7.60 price target on its shares.

Its analysts are expecting Temple & Webster to grow materially over the next decade thanks to its leadership position in a retail category that is in the early stages of shifting online.  It explained:

Our Buy thesis is predicated on the following key drivers: (1) we believe TPW is well positioned in the upcoming cycle to continue to grow market share, despite a weaker macro environment; (2) in our view TPW is best placed to be a winner in a category that favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry vs. other retail categories; and (3) greater focus on costs is a sensible strategy to balance near-term profitability with growth.

The post Expect big things from these ASX growth shares: analysts appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Domino’s Pizza Enterprises. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Domino’s Pizza Enterprises and Temple & Webster Group. The Motley Fool Australia has recommended Domino’s Pizza Enterprises and 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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The first six weeks of 2023 have been big for the Arafura Rare Earths Ltd (ASX: ARU) share price. The S&P/ASX 300 Index (ASX: XKO) rare earths stock has soared 40.5% in that time to trade at 63.25 cents today.

And that’s not even its peak of this year so far. It rocketed to a new 52-week high of 66 cents earlier today – at which point it was nearly 47% higher than it started the year.

For comparison, the ASX 300 has gained 7% since the start of 2023. Meanwhile, shares in Arafura’s biggest rare earths peers have also outperformed, but not to the same extent.

• The Lynas Rare Earths Ltd (ASX: LYC) share price has gained 16% year to date to reach $8.90
• While that of Illuka Resources Limited (ASX: ILU) has lifted 16% to trade at $10.96

So, what’s been going so right for Arafura shares in 2023? Let’s take a look.

What’s sent Arafura stock soaring 40% this year?

 There have been three price-sensitive announcements from the ASX 300 rare earths stock in 2023.

First, it announced the appointment of KfW IPEX-Bank as an additional mandated lead arranger and bookrunner.

Within that same release, it also revealed it had received indicative support from Export Finance Australia and the Northern Australia Infrastructure Facility for debt facilities worth a combined $300 million. It also announced it had been granted $30 million under the Federal Government’s Modern Manufacturing Initiative.

The company also revealed its planned pathway to see the Nolans Project achieving net zero emissions by 2050.

However, one of the biggest gains of the last six weeks came on the back of the company’s quarterly results. Commenting on the period, managing director Gavin Lockyer said:

[It] was one of the most outstanding quarters in terms of business changing achievements that Arafura has ever had.

Each of [the company’s] achievements, from the cornerstone binding offtake agreement signed with Hyundai Motor Company and Kia Corporation, through to the recent very successful share placement and share purchase plan result, confirms Nolans as an exceptionally valuable world-class NdPr rare earths project.

Insider buying

Speaking of the company’s recent share purchase plan, four Arafura directors took part in the oversubscribed capital raising activity.

Lockyer, chair Mark Southey, and directors Cathy Moises and Chris Tonkin each snapped up 21,420 new shares through the plan, paying 37 cents per stock.

The participation by those in the know at the company may have bolstered sentiment for Arafura’s stock. After all, investing great Peter Lynch is widely quoted as saying:

Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.

The post Why has ASX 300 rare earths stock Arafura rocketed 40% in 2023? appeared first on The Motley Fool Australia.

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

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It’s turning out to be a disappointing end to the trading week for the S&P/ASX 200 Index (ASX: XJO) and ASX shares. At the time of writing, the ASX 200 has lost a nasty 0.8%, dragging the index down to below 7,440 points.

The Commonwealth Bank of Australia (ASX: CBA) share price hasn’t escaped the pain either.

CBA shares are also suffering today. The ASX 200’s largest bank share has endured a 0.46% decline so far this Friday, putting the bank down to $109.72 a share.

Even so, CBA remains very close to its most recent all-time high. It was only last Friday that CBA hit a new all-time record high of $111.43. In fact, CBA shares have hit a few new records over the past month or so, boosting it above $111 a share for the first time in the bank’s long ASX history.

As it stands today, the Commonwealth Bank share price remains up an impressive 8.7% year to date in 2023 so far, as well as up by more than 9% over the past 21 months:

And even after this week’s falls, Commonwealth Bank remains less than 2% away from this new all-time high.

So is it time to cash in on these gains? Or do CBA shares have even further to run?

Is it buy or sell for CBA shares today?

Well, broker Goldman Sachs is one ASX expert who reckons it’s time to cash in. As we covered earlier this week, Goldman has a long-held sell rating on CBA shares.

This ASX broker reckons the bank is overvalued at the current share price and has a 12-month share price target of $92.56. If that came to pass, it would result in a potential downside of almost 16% from today’s pricing.

And Goldman isn’t the only expert who fails to find CBA shares appealing at present.

According to reporting at The Bull, Harrison Massey, advisor and broker at Argonaut, also rates CBA shares a sell today. Massey told The Bull that “the bank offers attractive defensive qualities. However, at recent levels, it may be prudent to trim exposure and pocket a profit”.

So according to these two ASX experts, it might be time to take some profits with the CBA share price still trading near its record highs. But who knows what the future might bring for this popular ASX bank share.

At the current CBA share price, this ASX 200 bank has a market capitalisation of $186.1 billion, with a fully-franked dividend yield of 3.51%.

The post The CBA share price is trading near all-time highs. Should you cash in? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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 New Hope Corp Ltd (ASX: NHC) share price is down 8% at the time of writing, having earlier posted losses of more than 9%.

The S&P/ASX 200 Index (ASX: XJO) coal stock closed yesterday trading for $5.81 per share. Shares are currently swapping hands for $5.36 apiece, having recovered from an intraday low of $5.24.

But it’s not just the New Hope share price taking a beating today.

Rival ASX 200 coal stock Whitehaven Coal Ltd (ASX: WHC) is down 4.4%. And Yancoal Australia Ltd (ASX: YAL) has dropped 6.7% at this same time.

So, what’s going on?

Why are ASX 200 coal shares tumbling today?

The New Hope share price and the other ASX 200 coal stocks are under pressure today from several fronts.

Firstly, the price of coal, which climbed earlier this week, is sliding lower.

According to data from CommSec, Coal Nymex futures are down 3.4% overnight to US$142.65 per tonne. That’s down 9.1% from the US$157.00 per tonne quoted on Tuesday when Coal Nymex futures had leapt 5.3% overnight.

The surge in the coal price earlier in the week helped drive the New Hope share price 6.4% higher across Monday and Tuesday’s trading. But with coal prices retracing, the ASX 200 coal miner is now down almost 13% from Tuesday’s close.

What else is pressuring the New Hope share price?

Investors may be hitting the sell button amid news that Indian-based coal giant Adani Group is looking to offload its coal shipments at discounted prices.

According to anonymous sources cited by Bloomberg, Adani is “offering to sell several coal shipments from Australia and Indonesia at discounts”.

Those discounts were said to be roughly 4% below Asia’s price benchmarks.

Also potentially impacting the New Hope share price, The Australian reported that major shareholder GQG Partners had sold $336 million of Whitehaven Coal shares for $7.90 apiece.

That’s a steep discount to Tuesday’s closing price of $8.66 per share. But more than 3% above the current Whitehaven share price of $7.66.

New Hope share price snapshot

With today’s precipitous intraday fall factored in, the New Hope shares have fallen into the red for 2023.

But, as you can see in the chart below, the ASX 200 coal stock remains up an impressive 115% over the past 12 months.

The post New Hope share price dives 9% as ASX 200 coal stocks get hit hard appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX 200 shares today
• Why did ASX 200 coal shares have such a top run on Tuesday?
• Why Beach Energy, Medibank, Pushpay, and Whitehaven Coal shares are rising

Motley Fool contributor Bernd Struben 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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