Owners of Webjet Limited (ASX: WEB) shares might be on the edge of their seats next week as the travel company gears up to release its full-year earnings.

The online travel agency will drop its results for financial year 2023 on Wednesday morning, and investors could be in for a treat.

Webjet shares finished the day trading for $7.39 apiece yesterday, 0.82% higher than their previous close.

For comparison, the S&P/ASX 200 Index (ASX: XJO) closed up 0.52%.

Let’s dive into what those invested in Webjet shares might expect to find in next week’s earnings release.

What can fans of Webjet shares expect from the company next week?

Looking back to FY22

Before we look forwards, let’s glance backwards. All the way back to this time last year when Webjet released its financial year 2022 earnings.

Then, the ASX 200 travel giant posted $1.6 billion of total transaction value (TTV), $138 million of revenue, and a $15 million earnings before interest, tax, depreciation, and amortisation (EBITDA) loss.

While it revealed an $85 million statutory loss for the period, it also noted it had returned to profit in the second half of last financial year.

That was reiterated in November when Webjet announced it had realised a $32 million profit for the first half – sending its share price soaring 10%.

Broker forecasts Webjet to beat FY23 guidance

So, with all that considered, it’s reasonable to expect the company could post its first full-year profit since financial year 2019 next week.

In November, it forecast its WebBeds business to exceed pre-pandemic profitability over the full year, with second-half EBITDA to come in at least $10 million above pre-pandemic levels.

Meanwhile, profitability for its business-to-consumer segment – housing its online travel agency and GoSee offering – is expected to be in line with the first half.

Broker Goldman Sachs, however, expects the company’s actual earnings to come in higher.

It tips Webjet to post around $338 million of revenue – representing a potential 145% improvement – and $124 million of EBITDA – a potential $139 million increase.

However, consensus is that the company won’t return to dividend just yet. CommSec figures suggest it could pass that milestone in financial year 2024.

Webjet share price snapshot

The Webjet share price has outperformed in recent months.

The stock has gained 21% since the start of 2023. It has also risen 28% since this time last year.

For comparison, the ASX 200 has gained 4% year to date and 1% over the last 12 months.

The post Own Webjet shares? Here’s what to look for in next week’s full-year results appeared first on The Motley Fool Australia.

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More reading

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• Is it possible Appen shares have finally bottomed?
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• 3 magnificent ASX dividend shares that could turn $5k into $50,000
• 5 things to watch on the ASX 200 on Friday

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 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 team at Morgans has a best ideas list that it updates every month.

To be included on this list, an ASX share has to offer the highest risk-adjusted returns over a 12-month timeframe and be supported by a higher-than-average level of confidence.

A couple of shares from the super exclusive ASX 50 index that have made the list this month are named below. Here’s why the broker is bullish on them:

CSL Limited (ASX: CSL)

This biotherapeutics company could be an ASX 50 share to buy according to Morgans.

The broker believes that CSL’s outlook is very positive now after COVID headwinds dissipated and tailwinds emerged. In addition, the broker feels that its shares are trading at a level that could be classed as “good value” historically. It explains:

A key portfolio holding and key sector pick, we believe CSL is poised to break-out this year, a COVID exit trade, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares offering good value trading around its long-term forward multiple of ~30x.

Morgans has an add rating and $337.92 price target on CSL’s shares. This compares to the latest CSL share price of $302.82.

Seek Ltd (ASX: SEK)

Another ASX 50 share that Morgans rates highly is job listings giant Seek.

Its analysts are positive on the company due to their belief that it will benefit from a number of tailwinds in the near term. These tailwinds are expected to lead to increased reliance on the company’s products and services. It explains:

Of the classifieds players, we continue to see SEEK as the one with the most relative upside, a view that’s based on the sustained listings growth we’ve seen over the period. The tailwinds that have driven elevated job ads (~210k currently, broadly flat on the robust pcp) and strong FY22 result appear to still remain in place, i.e. subdued migration, candidate scarcity and the drive for greater employee flexibility. With businesses looking to grow headcount in the coming months and job mobility at historically high levels according to the RBA, we see these favourable operating conditions driving increased reliance on SEEK’s products.

Morgans has an add and $28.40 price target on Seek’s shares. This compares favourably to the current Seek share price of $23.85.

The post Buy these excellent ASX 50 shares now: broker appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL and Seek. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended Seek. 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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Appen Ltd (ASX: APX) shares finished the session on Thursday up 6.49% to $2.46 per share.

They’ve had a 14% bump over the past five trading days, although, in the middle of that, they dropped like a stone to a seven-year low of $1.91 after coming out of a trading halt on Wednesday.

Okay, that’s gonna take some explaining. We’ll get to that in a minute.

Bigger picture, the thoroughly bloodied and beaten-up ASX tech share is actually in the green for the year to date, up 4.24% despite all its woes.

While it’s still in tumultuous territory, could the bleeding be over for this former market darling?

What’s going on with Appen shares this week?

Appen shareholders could seek some solace from Zip shares investors these days.

Both stocks are in the doghouse, down more than 90% from their peak prices reached just a few years ago.

But both of them have zoomed higher this week, prompting speculation that the worst may be over.

Hmmmm. Let’s review the week’s Appenings.

On Tuesday, Appen requested a trading halt and announced a $60 million capital raising.

The offer was $1.85 per new share, which is one heck of a discount.

It’s almost 25% lower than yesterday’s closing price and more than 40% lower than where Appen shares were before last Wednesday’s calamitous trading update.

(That update sent the Appen share price spiralling 28% in one day from $3.19 to $2.29.)

Also on Tuesday, the company released an investor presentation to sell the capital raise to institutional and retail investors, and to explain its strategy for a refresh.

The company said the funds would pay for one-off costs associated with its cost reduction program, provide balance sheet flexibility, and general working capital to support its return to profitability.

Before the market open on Wednesday, Appen informed the ASX that it had completed the $21 million institutional component of its equity raising.

Appen’s CEO Armughan Ahmad said:

Appen is delighted with the successful outcome of the Institutional Component of the Equity Raising and the support received from both existing and new institutional shareholders.

We look forward to executing on the vision we have communicated to the market and delivering results for our shareholders.

Less than an hour later, the tech share resumed trading and flatlined at the open, dropping 17% to $1.91.

That’s the lowest price Appen shares have traded at since their pre-WAAAX club days in 2016.

Appen shares hit a new low but bounce back hard

Interestingly, the stock rebounded over the day and finished the session on Wednesday at $2.34.

You got that? Appen shares dropped 17% at the open… then finished the day 0.4% higher than Tuesday’s halted share price.

Talk about a rollercoaster ride.

Anyway, with the $21 million institutional part done, the $38 million retail entitlement offer will commence on 23 May and close on 6 June.

Approximately 32.2 million new Appen shares will be issued under the equity raising. That represents about 26% of Appen’s existing shares on issue.

That’s a fair bit of dilution for existing shareholders to stomach.

What do the brokers think?

As reported in The Australian, top broker Bell Potter has responded to the news of the capital raising by increasing its rating on Appen shares to hold.

But its 12-month price target of $2.20 is lower than where Appen shares are currently trading.

So that’s not very inspiring for investors.

Last week, before the capital raise was announced, my Fool colleague James reported on how a few other brokers are thinking in relation to Appen shares.

The Morgan Stanley team had retained their underweight rating and cut the price target on Appen shares to $2.

The broker appeared uncertain about how Appen will be able to generate revenue growth while also cutting costs.

Macquarie analysts had downgraded Appen shares to underperform and cut their price target by more than half to $1.18.

This was largely due to the broker expecting Appen to perform poorly for a while.

Based on Macquarie’s valuation alone, it looks like this week’s seven-year low of $1.91 may not be the bottom for Appen shares.

The post Is it possible Appen shares have finally bottomed? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Appen. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen. 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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Are you looking for big dividend yields? Then look no further!

Two shares that have been rated as buys and tipped to provide investors with big dividend yields by Goldman Sachs are listed below.

Here’s what its analysts are saying about these dividend shares right now:

BHP Group Ltd (ASX: BHP)

If you don’t mind investing in the mining sector, then BHP could be a top option to consider.

That’s because Goldman Sachs is expecting this mining giant to provide investors with some very big dividend yields in the near future.

For example, the broker is forecasting fully franked dividends of US$2.05 (A$3.09) per share in FY 2023 and US$1.63 (A$2.46) per share in FY 2024. Based on the current BHP share price of $44.24, this will mean dividend yields of 7% and 5.6%, respectively.

Goldman also sees potential for BHP shares to rise from current levels. It currently has a buy rating and $49.90 price target on its shares.

Universal Store Holdings Ltd (ASX: UNI)

Another ASX share that has been tipped to provide a big dividend yield is Universal Store. It is a youth fashion retailer behind brands including Perfect Stranger, Thrills, and (of course) Universal Store.

Goldman Sachs is very positive on the retailer. It advised that this is due to “UNI’s strong medium term growth drivers in the form of 1) significant store roll out opportunity, with the youth fashion market under-penetrated in our view, and 2) compelling margin improvement opportunities from retailing private label apparel.”

The broker is expecting this to underpin fully franked dividends per share of 24 cents in FY 2023 and 31 cents in FY 2024. Based on the current Universal Store share price of $4.40, this will mean dividend yields of 5.45% and 7%, respectively.

As with BHP, Goldman sees plenty of room for Universal Store’s shares to rise from where they currently trade. The broker has an add rating and $7.45 price target on them.

The post Buy these ASX shares with big dividend yields: Goldman Sachs appeared first on The Motley Fool Australia.

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• Why is the BHP share price outpeforming the ASX 200 today?
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• Why the BHP dividend forecast has caught my attention!
• Goldman Sachs says these ASX dividend stocks with big yields are buys

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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There is an impression among many investors that big riches can only be achieved with ASX growth shares.

But that can’t be further from the truth. There are multiple paths to the promised land.

The fact is that strong returns are possible with ASX dividend shares.

Let’s take a look at how you could turn $5,000 into $50,000 this way.

Compounding is like magic

The way to grow your portfolio using dividend stocks is to utilise the magic of compounding.

So rather than treat dividends as income, reinvest it immediately. This can be done manually, or automatically using a dividend reinvestment plan (DRP).

The great advantages of a DRP are that you don’t need to worry about execution, the share purchase price could be cheaper than market value, and there is no brokerage fee.

This means that an initial $5,000 outlay could balloon into $50,000 after 27 years if a 9% yield is continually reinvested.

Not bad. 

But in reality, $50,000 could be reached much faster.

There are three ways the returns could be supercharged:

• Franking: Australian investors are lucky enough to have this tax benefit if you pick stocks for certain companies that have already paid company tax.
• Capital growth: If you pick the right dividend stocks, the share price itself may rise to provide extra returns.
• Regular contributions: You don’t have to stop at $5,000! If you add a small amount to the portfolio every once in a while, it makes a huge difference to the end result.

After franking and capital growth, let’s assume you can bump up the annual returns from 9% to 12%. Then let’s say you chip in $100 each month.

That way you’ll turn $5,000 into $50,000 in just over 12 years.

Amazing. That’s the power of compounding.

3 ASX dividend shares that could land you a 10-bagger portfolio

So which are the best dividend stocks to buy now to achieve such returns?

Remember, that blindly picking the ASX shares with the highest dividends is asking for trouble.

One must balance decent yield with positive business prospects. You don’t want the share price to shrink over time, nor do you want the dividends to collapse because the company is in financial trouble.

Here are three suggestions that fit the bill: McMillan Shakespeare Ltd (ASX: MMS), Australian Clinical Labs Limited (ASX: ACL), and Ampol Ltd (ASX: ALD).

McMillan Shakespeare and Ampol pay out a dividend yield of 8.64% and 8.95% respectively. Australian Clinical Labs is handing out a stunning 13.3%. They are all 100% franked.

Professional investors like the business prospects of all three companies. 

According to CMC Markets, four of five analysts currently covering Australian Clinical Labs rate the stock as a strong buy. Five of seven reckon McMillan Shakespeare is a buy, while 11 out of 12 say that about Ampol.

No analyst surveyed on CMC Markets rated any of the trio as sells.

The post 3 magnificent ASX dividend shares that could turn $5k into $50,000 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 recommended McMillan Shakespeare. 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 Thursday, the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index rose 0.5% to 7,236.8 points.

Will the market be able to build on this on Friday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market looks set to end the week in a positive fashion following a strong night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 14 points or 0.2% higher this morning. In the United States, the Dow Jones was up 0.35%, the S&P 500 rose 0.95%, and the NASDAQ jumped 1.5%.

Xero shares rated as a buy

The Xero Limited (ASX: XRO) share price was on fire on Thursday following the release of the cloud accounting platform provider’s full-year results. The good news is that Goldman Sachs sees potential for its shares to keep rising. This morning, the broker has responded to the result by reiterating its buy rating with an improved price target of $130.00.

Oil prices fall

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor finish to the week after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 1.1% to US$72.10 a barrel and the Brent crude oil price is down 1.2% to US$76.05 a barrel. A stronger US dollar weighed on prices.

Gold price tumbles

Gold shares Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a tough session after the gold price tumbled overnight. According to CNBC, the spot gold price is down 1.25% to US$1,960.2 an ounce. Hawkish US Fed bets put pressure on gold.

Aristocrat still a buy

Aristocrat Leisure Limited (ASX: ALL) shares fell yesterday following the release of the gaming technology company’s half-year results. Goldman Sachs sees this as a buying opportunity and has reiterated its conviction buy rating with an improved price target of $46.70. It said: “While the market reaction to this update was weak, which we believe to be largely driven by Pixel United, the update offers incremental support to our Buy thesis.”

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

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

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Many of the ASX 200 bank shares have taken a fall in 2023.

Isn’t that a bit strange, given interest rates have been rising at their fastest pace on record?

The banks make most of their money from lending, so aren’t rising interest rates a positive?

Let’s investigate this together.

ASX 200 bank shares lose up to 17% in 2023

First, let’s check out the state of play for the most well-known ASX 200 bank shares.

Over the year to date, here’s how these bank stocks have performed:

• The Bank of Queensland Ltd (ASX: BOQ) share price has dropped 17%
• The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has declined 10%
• The National Australia Bank Ltd (ASX: NAB) share price has tumbled 10%
• The Westpac Banking Corp (ASX: WBC) share price has fallen 8%
• The Commonwealth Bank of Australia (ASX: CBA) share price has dipped 3.2%.

Only a couple of ASX 200 bank shares are in the green. They are:

• The Macquarie Group Ltd (ASX: MQG) share price has risen 5.4%
• The ANZ Group Holdings Ltd (ASX: ANZ) share price has ascended 2.7%.

The positives of rising interest rates for ASX 200 bank shares

On the banks’ balance sheets, we see the positive impact of rising interest rates in a number of ways.

One of them is improved net interest margins (NIMs) across the board for all of these companies.

The NIM is the amount of money the banks earn from the interest they are paid by borrowers, less the interest they pay to their savings account holders.

Here’s where the NIMs are today, in descending order:

• Commonwealth Bank NIM of 2.1% for 1H FY23, up 0.23% on 2H FY22
• Westpac NIM of 1.96% for 1H FY23, up 0.05% on 2H FY22
• Bendigo and Adelaide Bank NIM of 1.88% for 1H FY23, up 0.19% on 2H FY22
• Bank of Queensland NIM of 1.79% for 1H FY23, up 0.04% on 2H FY22
• National Australia Bank NIM of 1.77% for 1H FY23, up 0.14% on 2H FY22
• ANZ Bank NIM of 1.75% for 1H FY23, up 0.07% on 2H FY22.

The negatives of rising interest rates for ASX 200 bank shares

There are actually a bunch of negatives, and a few of them are as follows.

Higher interest rates mean the banks have to pay more to deposit holders. As we all know, many banks have been slow to apply higher interest rates to savings accounts but quick to raise rates on loans.

They do this to maximise their profits by raising their NIM.

The highest savings rate available at the moment is 5.3% with the Bank of Queensland. Meantime, most homeowners are paying home loan rates in the 6% to 7% bracket now.

Secondly, the banks are highly leveraged to the Australian property market, and higher interest rates tend to lower sales volumes (meaning fewer new loans) and lower sale prices (due to less buyer demand).

This intensifies competition between the banks for a smaller pool of new loans, prompting them to fork out money on expensive incentives to attract new business, such as cashbacks.

Lastly, rising interest rates tend to boost mortgage stress, which is defined as people spending more than 30% of their income on housing costs. This tends to raise the prevalence of loan arrears and defaults.

So, while the ASX 200 banks are certainly happy to be charging more on their loans, they have to be careful to get the balance right.

The fallout of US bank collapses

Rumblings in the global banking sector are making everyone a bit nervous these days. Some commentators are saying this could be a prelude to a recession in the United States.

The silver lining is that softened prices for ASX 200 bank shares may present a buying opportunity.

Buying the dip is so much more fun when stocks are down for sentiment reasons only.

As my colleague Bernd recently wrote, Australian banks are among the world’s most capitalised, and therefore, they’re considered a pretty safe bet for ASX investors.

Are ASX 200 bank shares a buy?

There are mixed reviews among the brokers at the moment.

Their opinions boil down to their assessment of how each bank is operating, as well as their share price valuations, rather than the universal positive of higher interest rates for ASX 200 bank shares generally.

Let’s do a quick canvas of recent broker notes regarding the big four banks, as well as Macquarie.

CBA shares

The CBA share price closed on Thursday at $98.00, up 0.9%.

Citi has a sell rating on CBA shares on valuation grounds. Its 12-month share price target is $80.

UBS is neutral on Commonwealth Bank with a $100 price target.

Goldman Sachs maintains a sell rating with an $87.78 target on the CBA share price.

NAB shares

The NAB share price is currently $26.40, up 0.8% on Thursday.

Goldman Sachs nominates NAB as its favourite among ASX 200 bank shares today.

This is mainly due to NAB’s comparatively stronger commercial business. The other banks have higher residential property exposure.

The team at Goldman sees “volume momentum over the next 12 months as favouring commercial volumes over housing volumes and we believe NAB provides the best exposure to this thematic”.

Goldman has a buy rating on NAB shares and a $30.69 price target.

For extra perspective, two of our Fool scribblers went head-to-head in a Bull vs. Bear article on NAB shares recently.

Westpac shares

The current Westpac share price is $20.96, up 0.19% on Thursday.

Westpac is the preferred option of the ASX 200 bank shares for the Morgans team.

They have an add rating on Westpac shares with a 12-month price target of $24.22.

Goldman is also a Westapc fan with a conviction buy rating on the shares and a $24.67 price target.

As we revealed recently, Westpac is the preferred ASX 200 bank share in millionaire portfolios.

ANZ shares

The ANZ share price is currently $23.64, up 0.25% on Thursday.

Citi reckons ANZ is the best of the big four ASX 200 bank shares to buy now.

As my Fool colleague James reports, this is largely due to its institutional business, which Citi believes is a key differentiator.

The broker said:

We see ANZ’s unique capabilities as set to deliver relative outperformance in the current market conditions. ANZ is our preferred Major Bank exposure.

Citi currently has a buy rating and a $26.50 price target on its shares.

UBS is buy-rated on ANZ shares with a $25 price target.

Goldman Sachs has a neutral rating and a $26.17 target on the ANZ share price.

Macquarie shares

The Macquarie share price closed at $173.59 on Thursday, up 0.84%.

Morgans has an add rating and a 12-month price target of $201.80 on Macquarie shares.

Morgans comments:

MQG is a quality franchise, exposed to structural growth areas, and the company performed exceptionally well in a more difficult FY23 environment. With >10% share price upside to our price target, we continue to maintain our ADD recommendation.

Goldman has a neutral rating on Macquarie Bank shares with a $192.01 price target.

Shaw and Partners portfolio manager James Gerrish says Macquarie shares are a buy because the business offers more earnings diversification than other ASX 200 bank shares.

Gerrish says:

Ultimately, it’s the reason we like the stock. Different divisions perform differently at different times and that creates a nice level of diversification in their earnings.

As we reported recently, Macquarie has the highest profit margin of the ASX 200 bank shares.

Foolish takeaway

Higher interest rates may be a tailwind, on balance, for ASX 200 bank shares, but this doesn’t guarantee that all of them will do well in this climate.

In a clear demonstration of this, Warren Buffett recently sold some bank stocks but kept others.

So, it’s best to remain discerning when choosing which ASX 200 bank shares to hold or invest in today.

For extra reading, we compared the dividend yield and share price growth of the big four over five years.

The post With interest rates rising, why have ASX 200 bank shares been pummelled in 2023? appeared first on The Motley Fool Australia.

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More reading

• Invested $6,000 in NAB shares in November? Here’s how much passive income you’ve already banked
• Why ANZ shares are Citi’s top banking pick
• An ASX dividend giant I’d buy over CBA shares
• Investing in ANZ shares? Here’s what’s happening with the bank’s $3.5 billion Suncorp acquisition
• These ASX dividend stocks have been tipped to offer big yields

Motley Fool contributor Bronwyn Allen has positions in ANZ Group, Commonwealth Bank Of Australia, Macquarie Group, and Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank and Macquarie Group. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 looking for retirement portfolio options? If you are, then you may want to look at the quality ASX shares listed below.

Here’s why these shares could be top options for retirees:

Charter Hall Long WALE REIT (ASX: CLW)

The first ASX share to consider for a retirement portfolio is the Charter Hall Long Wale REIT.

As you might have guessed from its name, this property company invests in high quality real estate assets that have long weighted average lease expiries (WALEs). These properties are leased mainly to corporate and government tenants and had a WALE of 12 years at the last count.

This provides great visibility on its future earnings and arguably makes it a low risk option in the property space.

Citi is positive on the company and is expecting big dividend yields in the coming years. It is forecasting dividends per share of 28 cents in FY 2023 and 29 cents in FY 2024. Based on the current Charter Hall Long Wale REIT unit price of $4.33, this will mean yields of 6.45% and 6.7%, respectively.

The broker has a buy rating and $5.00 price target on its shares.

Transurban Group (ASX: TCL)

Another ASX share that could be a good option for a retirement portfolio is this leading toll road operator. Transurban owns a high-quality portfolio of roads in Australia and North America. In addition, it has a significant project pipeline that could support its growth in the future.

After being a ghost town during the pandemic, the company’s roads have bounced back strongly and traffic volumes are now booming again. They even hit record levels recently. Combined with its positive exposure to inflation, Transurban has been tipped to grow at a solid rate in the coming years.

UBS is positive on the company. It currently has a buy rating and $15.45 price target on its shares.

In addition, the broker is forecasting dividends per share of 57 cents in FY 2023 and then 61 cents in FY 2024. Based on the current Transurban share price of $14.74, this will mean yields of 3.9% and 4.2%, respectively.

The post Analysts name 2 excellent ASX shares for a retirement portfolio appeared first on The Motley Fool Australia.

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More reading

• Analysts name 2 strong ASX 200 dividend shares to buy
• Here are 2 growing ASX dividend shares for income investors to buy: analysts
• 5 ASX shares I’d buy for a US recession
• Top defensive ASX shares to buy in May 2023
• Citi rates these ASX dividend shares as buys

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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More than one expert reckons these days that ASX shares in the uranium industry are about to enjoy a revival not seen for years.

The Market Matters team, for example, reckons it’s a sector with “meaningful tailwinds that are likely to persist for years to come”.

“The global energy mix is changing as decarbonisation is one of, if not, the most dominant investment theme[s] for the next decade,” said the team leader and Shaw and Partners portfolio manager James Gerrish.

“We believe nuclear energy will become a larger slice of the energy mix, and we are seeing tangible evidence of this occurring.”

He noted that year to date almost 100 million pounds of uranium have been contracted, which is already the highest yearly amount for more than a decade.

Funnily enough, the spot uranium price has held steady over the past 12 months, which means related stocks have also gone sideways.

But, of course, both nuclear reactors and uranium mines take a while to reactivate after being dormant for years.

Over the long term, Gerrish’s team are believers.

“Market Matters is bullish on uranium, believing the sector is about to enjoy a period of renaissance.”

But which ASX uranium shares are the best buys at the moment? There are two that were mentioned:

Two well-funded Aussie businesses ready to rake it in

Paladin Energy Ltd (ASX: PDN) is Gerrish’s “preferred pick from a risk-reward perspective”.

“The company owns 75% of the Langer Heinrich mine in Namibia that had been [in] care and maintenance for a number of years,” he said.

“However, works for a restart are now ~50% complete with first production expected next year.”

While more agile mines might produce uranium earlier than that, Paladin will have economies of scale to its advantage.

“They are well-funded, and construction is on time and on budget with further upside in exploration assets in Australia and Canada.”

The Paladin Energy share price is down 3% so far in 2023.

Gerrish’s team already owns the stock in its emerging companies portfolio.

His team’s second pick, Silex Systems Ltd (ASX: SLX), is not a uranium producer as such.

“Silex is developing a laser-enriched uranium technology in conjunction with sector giant Cameco Corp (NYSE: CCJ),” said Gerrish.

“The demonstration plant in Kentucky is expected to be up and running in around 12 months’ time.”

He added that Silex is cashed up after a capital raise this year.

“The US government is also likely to support any capital requirements as part of the inflation reduction act,” said Gerrish.

“Supply of High Assay Low Enriched Uranium (HALEU), which the next generation of nuclear reactors require, is heavily reliant on Russia.”

Silex shares are already 12% higher than where they started 2023. 

Again, the Market Matters team is bullish and long on the stock, holding it in its emerging companies portfolio.

The post The 2 best ASX uranium shares to buy right now appeared first on The Motley Fool Australia.

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More reading

• Down 20% since February, should I buy the dip on Paladin Energy shares?
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• 3 ASX 300 shares that turned $5,000 into $59,000 or much more in 5 years
• Here are the top 10 ASX 200 shares today

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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One expert is urging investors go “long and bullish” on an ASX stock that’s already rocketed this week.

Shaw and Partners portfolio manager James Gerrish said his Market Matters team likes the look of construction materials supplier James Hardie Industries plc (ASX: JHX).

The stock soared 8.3% on Tuesday after its fourth-quarter results “pleased a nervous market”.

“Encouragingly its 1Q24 guidance was a clear beat – at the midpoint they have guided to 1Q profit of US$155 million vs US$137 million consensus — i.e. 13% above,” Gerrish said in his newsletter.

“In our opinion, the key positive was US margins remained solid and their guidance implies this will continue which will drive earnings upgrades.”

Amid dark clouds for the economy, James Hardie showed off its pricing power by pulling off an amazing magic trick.

“While James Hardie has experienced a drop in sales volumes as the building sector struggles, the company’s ability to increase prices has seen revenues actually increase,” said Gerrish.

“The volume of plasterboard/cladding sold in Australia & New Zealand fell by 10%, but revenue increased by 2% as price increases were pushed onto customers in the March quarter.”

Grab James Hardie shares while they’re cheap

With consumers dealing with interest rates more than three percentage points higher than just a year ago, real estate prices have spiralled down and the construction industry is feeling the pressure.

This presents a tempting buying opportunity, according to Gerrish.

“With plenty of bad news built into James Hardie’s share price after it halved from its late 2021 high, Market Matters remains optimistic towards Hardies,” he said.

“The company is operating well in a tough environment hence when the construction sector does show signs of improvement, James Hardie will be very well positioned to benefit.”

Within Australia, Gerrish feels like conditions will improve for the company and the wider building industry.

“The government committed to a large immigration push plus, of course, they have a huge rental crisis to address sooner rather than later,” he said.

“Although this is unlikely to support the weak construction industry over the coming months, we must be conscious that stocks look at least six months ahead.”

Despite the spectacular rise this week, James Hardie shares are still about 35% lower than their December 2021 high.

The post Go ‘long and bullish’ on this ASX share that just rocketed 8% appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy today
• 3 ASX 300 shares just upgraded by top brokers
• Here are the top 10 ASX 200 shares today
• Why Develop Global, James Hardie, Life360, and Ora Banda shares stormed higher

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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