CSL Limited (ASX: CSL) shares endured a bumpy year in 2022, with the biotech company’s share price swaying between $240 and $305.

When all was said and done, the CSL share price outperformed the S&P/ASX 200 Index (ASX: XJO) by approximately 6%. However, outperforming the benchmark wasn’t exactly a high bar to clear considering the index fell by nearly 7%.

Here’s a look back at the key events for CSL shares in 2022.

Funding secured

In a disappointing start to last year, CSL shares tumbled 18% in the first six weeks of trading in 2022, as shown below. This was a much more pronounced fall than the 5% retreat by the Aussie benchmark.

Investors were on edge as the world grew more uncertain amid Russia’s invasion of Ukraine. Only a few weeks earlier, CSL had announced its intentions to acquire Swiss pharmaceutical company Vifor Pharma for A$16.4 billion.

The weakened market sentiment cast doubt on whether CSL would still be able to raise the funds needed to acquire Vifor. Though, on 14 February 2022, the $750 million share purchase plan had been completed — attracting over $940 million worth of applications. Likewise, the company proceeded to raise $4 billion by issuing bonds in the United States debt market in April.

Vifor enters the room

Between June and August, CSL shares bounced back by around 15% as the acquisition of Vifor drew closer. On 2 August, shareholders were notified that the completion of the deal was slated to take place by 9 August.

In light of the landmark deal, CSL managing director and CEO Paul Perreault said:

Joining CSL, the Vifor business adds near-term value along with a clear path to long-term sustainable growth. It also adds an outstanding management team, along with a high-value and complementary portfolio of products and market-leading position in the nephrology and iron deficiency spaces.

The acquisition of Vifor brings CSL’s products under development to 37 in total and increases its existing pipeline by 32%. Analysts have mostly praised the addition, giving CSL greater diversification in its offerings.

New era for CSL shares

The third and final pivotal moment for CSL shares in 2022 came when longstanding CEO Paul Perreault revealed his plans to retire in 2023.

After 10 years at the helm of one of Australia’s largest companies, Perreault has passed the baton to chief operating officer Dr Paul McKenzie. Following the news in December, the CSL share price proceeded to slip 4.5% over the rest of the month.

What could be ahead for CSL shares?

The first line item of 2023 will likely be Perreault officially stepping down from his role in March. From here, the former CEO will act as a strategic advisor to the company for six months to allow a seamless transition.

In terms of the CSL share price… Citi analysts are forecasting earnings per share (EPS) growth greater than 20% for FY23 and FY24. Hence, the Citi team has slapped a $340 price target on the biotech, representing approximately 19% upside from here.

Similarly, Macquarie has a favourable view on CSL shares for the year ahead. According to the investment bank’s latest model portfolio, CSL holds the highest weighting at 8.3% and a price target of $343.

The post 3 pivotal moments you might have missed for CSL shares in 2022. What now? appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• The 3 best-performing ASX 200 healthcare shares of 2022 revealed
• 23 ASX shares to buy in 2023 – brokers
• The top five ASX 200 shares in Macquarie’s model portfolio
• 3 five-star ASX 200 shares I would buy in 2023
• Can CSL shares yield a high return in 2023?

Motley Fool contributor Mitchell Lawler 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 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.

from The Motley Fool Australia https://ift.tt/HXf6Odm

The Seven West Media Ltd (ASX: SWM) share price is marching higher on this first day of trading in 2023.

Shares in the ASX-listed media company are up 3.8% in morning trade at 41 cents per share.

This comes despite the broader market facing some headwinds today, with the All Ordinaries Index (ASX: XAO) down 1.0% at this same time.

So, why is the Seven West Media share price defying the sell-off?

What’s piquing ASX investor interest?

The Seven West Media share price looks to be getting a boost after the company announced a new agreement with Cricket Australia.

The new, seven-year deal extends Seven West’s media rights from the 2024-25 season to the 2030-31 season.

The company said that its 7plus channel will become the “live and free home of cricket”, providing a digital package of rights atop the broadcast on its Seven Network. Seven West Media has never held digital rights to cricket before this agreement.

Commencing in 2024, Seven West Media will see a 13% decrease in its media rights fees from its current agreement. The new agreement will see the media company pay $65 million in cricket media rights fees a year. SWM said that it has achieved cash savings from rights reduction and production savings of more than $50 million over the term compared to the existing rights deal.

Cricket Australia has said it will reduce the number of Big Bash League (BBL) games to create a shorter tournament that will run for five to six weeks.

Seven West and Cricket Australia had been involved in a legal stoush over prior contract issues. With the new agreement in place, both sides have agreed to drop the court proceedings, with each paying its own costs.

Commenting on the agreement that looks to be sending the Seven West Media share price higher today, CEO James Warburton, said:

We are delighted to extend our partnership with Cricket Australia until 2030-31. A comprehensive package of digital rights to the cricket for 7plus will ensure that for the first time, our viewers will be able to access cricket, live and free, in a way that suits them.

Our combined broadcast and digital rights for both cricket and the AFL means Seven and 7plus will be the home of sport all year round… We look forward to working with Cricket Australia to grow Test cricket, women’s internationals and the BBL and WBBL in the years ahead.

Seven West Media share price snapshot

As you can see in the below chart, the Seven West Media share price came under pressure in 2022, falling almost 35%. With that year behind us, we imagine investors will be cheering a positive start to the new year.

The post Seven West Media share price lifts off on new cricket announcement appeared first on The Motley Fool Australia.

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

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

More reading

• 3 pivotal moments you might have missed for CSL shares in 2022. What now?
• Can these 2 ASX 200 shares crush the market again in 2023?
• Guess which ASX All Ords tech share is starting 2023 with a 6% gain
• My 3 top-performing ASX shares of 2022, and why I’m still buying 2 of them for 2023
• The Zip share price crashed 88% in 2022. Can it recover in 2023?

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.

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

Although the S&P/ASX 200 Index (ASX: XJO) tumbled a disappointing 5.5% in 2022, not all ASX 200 shares fell with the market.

Two ASX 200 shares that crushed the market last year with gains of at least 20% were infant formula company A2 Milk Company Ltd (ASX: A2M) and airline operator Qantas Airways Limited (ASX: QAN).

Can these ASX 200 shares do it all again in 2023? Let’s take a look at what analysts are saying.

A2 Milk

Unfortunately, as things stand, brokers appear to believe that the A2 Milk share price has peaked for the time being.

For example, the most positive broker that I’m aware of is Bell Potter. However, while its analysts currently have a buy rating on the company’s shares, their price target of $6.80 is a touch below where its shares trade today.

Though, a stronger than expected update in February when A2 Milk releases its half year results could force Bell Potter and other brokers to rethink their valuations and recommendations.

Qantas

Things are looking comparatively better for the Qantas share price in 2023 according to analysts.

Goldman Sachs believes the market is severely undervaluing its shares given its very positive performance and outlook. The broker has a conviction buy rating and $8.20 price target on its shares.

Elsewhere, Morgans has an add rating and $8.50 price target and Morgan Stanley has an overweight rating and $9.00 price target. These three price targets imply potential upside of at least 36% for the ASX 200 share over the next 12 months.

In respect to the Morgans recommendation, its analysts commented:

The discount being applied to QAN is unwarranted, in our view. Solid value exists in QAN given we expect further EBITDA growth over FY24/25 and think pent-up demand to travel will underpin a healthy demand environment for some time.

The post Can these 2 ASX 200 shares crush the market again in 2023? appeared first on The Motley Fool Australia.

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

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

More reading

• 23 ASX shares to buy in 2023 – brokers
• Bought $1,000 of Qantas shares 10 years ago? Here’s how much dividend income you’ve received
• With hardly any savings at 40, I’d use the Warren Buffett method for generating passive income
• Brokers name 3 ASX shares to buy next year
• 3 ASX shares near 52-week highs I think can climb higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/30p4Eae

The All Ordinaries Index (ASX: XAO) is off to a rough start this year, having fallen 1.35% right now. But not all shares on the ASX’s iconic index are suffering.

The Weebit Nano Ltd (ASX: WBT) share price is rocketing 6.15% higher today on exciting news of the company’s next-generation memory technology. The All Ords tech share is currently swapping hands for $3.45.

So, what’s got the market excited about the Weebit Nano share price on the first trading day of 2023? Let’s take a look.

Why this All Ords tech share is surging on Tuesday

The Weebit Nano share price is taking off after the company announced it’s released its first 22-nanometre (nm) demonstration chip to manufacturing – a process known as having been taped-out.

The demo chips integrate the company’s embedded resistive random-access memory (ReRAM) module in an advanced 22nm fully depleted silicon on insulator (FD-SOI) process technology.

22nm is one of the industry’s most common process nodes. It’s also too small to allow the use of embedded flash.

Weebit Nano’s demo chip aims to fill the resulting gap, offering a low-power, cost-effective embedded non-volatile memory solution able to withstand harsh environments.

Commenting on the news driving the All Ords tech share higher today, CEO Coby Hanoch said:

We are continuing to accelerate Weebit’s path towards more advanced geometries to meet a clear market need in applications such as microcontrollers, IoT [internet of things], 5G, edge AI [artificial intelligence], and automotive.

There is increased interest from companies looking to use our ReRAM to create exciting new products in these areas.

The company worked with partners CEA-Leti and CEA-List to scale its ReRAM technology to 22nm.

Weebit Nano share price outperforms tech sector

Today’s gain is just the latest for the Weebit Nano share price. It’s managed to dodge the carnage felt by the broader tech sector over the last 12 months.

The stock is currently 20% higher than it was this time last year. Meanwhile, the S&P/ASX All Technology Index (ASX: XTX) has tumbled 35%.

The post Guess which ASX All Ords tech share is starting 2023 with a 6% gain appeared first on The Motley Fool Australia.

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

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

More reading

• This ASX All Ordinaries share shrugged off the red to reach a new 52-week high today
• Why did this ASX All Ordinaries share just crash 19%?
• A bull market is coming: 3 ways Warren Buffett is preparing
• Why Friday could be D-day for ASX dividend shares and franking credits
• Arafura share price sinks 12% as Gina buys up big

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.

from The Motley Fool Australia https://ift.tt/X1HnCOj

A new year gives me the opportunity to review how things went in 2022. Some of my ASX shares managed gains, while others suffered double-digit losses. I’ll be happy to buy more of two of them.

It was a very rough year for some sectors of the ASX share market. Inflation and the subsequent interest rate rises have sent some investors running for the exits, with a number of ASX tech shares and ASX retail shares down more than 50% over the past year, such as the Temple & Webster Group Ltd (ASX: TPW) share price.

While I’m not expecting most of 2023 to be like 2022, there could be more volatility ahead. Who knows what’s going to happen next? That’s part of the fun of investing.

Fortescue Metals Group Limited (ASX: FMG)

My best-performing ASX share was the ASX iron ore share, Fortescue. It rose by around 7% in 2022.

I think it must be pointed out that the timing of the start and end of the 12-month return has played a part here. If the 12-month comparison were done on 13 January, the Fortescue share price would have shown a decline, though if the 12-month return were calculated in it mid-December it would show an even better return than 7%.

Just over a year ago, the iron ore price had slumped to below US$100 per tonne, amid fears about the Chinese real estate sector, including Evergrande. Remember that? But then the Fortescue share price recovered through November and December 2021.

There has been another recovery through November 2022 for Fortescue, as China’s COVID restrictions were removed. This could lead to an economic boost like we saw in western countries during 2022.

Not only did the Fortescue share price rise over the year, but it also paid a full-year dividend of A$2.07 per share, adding around 11% to the return (excluding franking credits).

Due to the strengthening iron ore price, I don’t think I’m going to buy any more Fortescue shares unless there’s a significant fall, which could be triggered by a drop in the iron ore price to below US$100 again.

Duxton Water Ltd (ASX: D2O)

This company owns water entitlements and leases them out to farmers on short-term or long-term contracts. The Duxton Water share price rose around 6% over 2022.

Despite the very heavy rainfall that southeast Australia has experienced over the last year, water values have held up well, despite there being an abundance of the commodity at the moment.

With La Nina (the wetter weather pattern) on track to end soon, this could mean less ‘supply’ of water and could mean higher prices. But, I’m not basing my investment interest on a guess about the weather or short-term water entitlement price movements.

I think water entitlements are a good way to get indirect exposure to the large food sector in Australia. Plus, the ASX water share can offer differentiated returns to the S&P/ASX 200 Index (ASX: XJO).

At the current Duxton Water share price, it’s at a 14% discount to the post-tax net asset value (NAV). Plus, it’s forecasting dividend growth for the next couple of years, so I will be looking to buy more of this stock in 2023.

L1 Long Short Fund Ltd (ASX: LSF)

This ASX share is a listed investment company (LIC) that invests in a mix of ASX shares and international shares.

It has the ability to ‘short’ shares – betting that a share price will go down – as well as invest normally. This can mean that it can deliver stable, or even positive, returns during volatile years like 2022.

But, I think it’s worth saying that negative returns from its ‘long’ investments can still lead to negative overall returns – or the shorted shares can rise, which would also mean negative returns.

I’m looking to buy more shares of this LIC this year at a net tangible assets (NTA) discount in the high single digits or low double digits. I also like the idea of the growing dividend from this LIC.

The post My 3 top-performing ASX shares of 2022, and why I’m still buying 2 of them for 2023 appeared first on The Motley Fool Australia.

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

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

More reading

• 3 defining moments for Fortescue shares in 2022
• 2 ASX 200 shares I’m never selling
• Iron ore price in 2023: Bull vs. bear
• Better buy for 2023: BHP vs. Fortescue shares
• 25% of my retirement portfolio is in these 5 ASX shares: Here’s why I believe they’re winners for 2023 and beyond

Motley Fool contributor Tristan Harrison has positions in Duxton Water, Fortescue Metals Group, and L1 Long Short Fund. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group. 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.

from The Motley Fool Australia https://ift.tt/01sCkgr

It certainly was a year to forget for the Zip Co Ltd (ASX: ZIP) share price and its shareholders.

During the 12 months, the buy now pay later (BNPL) provider’s shares lost a whopping 88% of their value after falling from $4.33 to a lowly 51 cents.

Why did the Zip share price crash?

Investors were selling down the Zip share price last year amid broad weakness in the tech sector and concerns over the company’s future.

The former was driven by aggressive interest rate hikes from central banks across the world to combat inflation. This put significant pressure on the valuations of tech shares and particularly loss-making ones.

And boy, is Zip a loss-maker! In August, the company released its full year results and revealed a loss of $1.1 billion.

While the majority of this loss was non-cash – an $821.1 million impairment of goodwill and intangibles – Zip still recorded an adjusted loss before income tax of $256.5 million for FY 2022.

In addition, concerns that rising interest rates could cause bad debts to spike also weighed on its shares. And although Zip has adjusted its credit risk settings in an attempt to offset this, there are fears that it could stifle its growth.

Particularly given the increasing competition in the BNPL market. This includes the arrival of tech giant Apple in the space with the launch of its BNPL service.

Apple’s BNPL service works with any merchant that already supports Apple Pay and does not require a new payments terminal. Furthermore, consumers can use the service even if the merchant doesn’t actively offer BNPL.

Will 2023 be better?

The performance of the Zip share price over the next 12 months is likely to be impacted largely by the company’s profitability goals.

Management is aiming for cash EBTDA profitability in FY 2024. If it can demonstrate that it is on track to achieve this, then it could bode well for the company’s shares.

However, conversely, if the tough economic environment pushes back its profitability timeframe, it could have major consequences for the Zip share price. Particularly given its cash burn and high debt load.

All in all, it certainly will be an interesting year for the company.

The post The Zip share price crashed 88% in 2022. Can it recover in 2023? appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 10 most shorted ASX shares
• The 5 biggest threats to the stock market in 2023
• Here are the 10 most shorted ASX shares
• Guess which ASX BNPL company just achieved profitability for the first time (hint: not Zip)
• Here are the 10 most shorted ASX shares

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 Zip Co. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

The Mach7 Technologies Ltd (ASX: M7T) share price is off to the races on this first day of trading in 2023.

Shares in the ASX listed medical imaging systems provider leapt more than 20% on open and are currently up 18.4% in morning trade.

Here’s what’s piquing ASX investor interest today.

What did the company report?

The Mach7 share price is rocketing after the company announced it has inked a multi-year deal with a Total Contract Value (TCV) of approximately $16.7 million.

The signed sales order comes from a new customer, Akumin Inc, a NASDAQ listed outpatient radiology service provider with a large footprint amongst United States’ hospitals, health systems and physician groups.

The contract involves Mach7’s entire Enterprise Imaging Platform including its Vendor Neutral Archive (VNA), eUnity Diagnostic Viewer and Workflow Applications. Mach7 said this will enable it to provide true cloud-based, enterprise-wide imaging and informatics solutions.

Payments for the $16.7 million 10-year capital contract will be staged annually across the life of the contract. $7.5 million of revenue is expected to be recognised in the 2023 financial year. Annual support fees are weighted to the second half of the contract term.

Commenting on the largest customer contract in the company’s history, which is helping send the Mach7 share price sharply higher, CEO Mike Lampron said:

Our vendor agnostic easily integrated product suite and migration services were key requirements for the massive data ingestion and consolidation associated with Akumin’s cloud-focused radiology ecosystem.

This deal together with the recent sales order received from our new partner, Nuvodia increases our exposure to the fast-growing outpatient radiology market and demonstrates that our technology appeals to customers across the size spectrum.

Mach7 share price snapshot

The Mach7 share price went backwards in 2022, as you can see in the chart below. But longer-term investors are unlikely to be complaining, with shares up 211% over the past five years. For some context, the All Ordinaries Index (ASX: XAO) has gained 15% over that same period.

The post Mach7 signs $17 million contract – share price jumps 20% at open appeared first on The Motley Fool Australia.

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

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

More reading

• Why AGL, Invictus Energy, Maas, and Mach7 shares are pushing higher today

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 positions in and has recommended Mach7 Technologies. The Motley Fool Australia has recommended Mach7 Technologies. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/LeZREz2

The Westpac Banking Corp (ASX: WBC) share price was a strong performer in 2022.

Australia’s oldest bank’s shares rose a sizeable 9.4% during the 12 months.

This compares favourably to the S&P/ASX 200 Index (ASX: XJO) and its 5.5% decline during the same period.

It also means that it was the best-performing big four bank in 2022.

Why did the Westpac share price smash the market?

Investors were bidding the Westpac share price higher last year thanks to its much-improved outlook.

This was driven by the Reserve Bank of Australia increasing the cash rate to combat inflation, which has boosted bank margins materially.

For example, when Westpac released its FY 2022 results in November, it revealed a 5 basis points increase in its net interest margin (NIM) during the second half to 1.90%.

However, that’s only the beginning of its NIM improvements, according to many analysts. In fact, Goldman Sachs highlights that “management’s guidance on its FY23 NIM trajectory was better than we had previously anticipated.” As a result, the broker now expects a NIM of 2.05% in FY 2023.

What’s 2023 looking like for its shares?

While a lot can happen in the space of 12 months, as things stand, Goldman Sachs believes it is onwards and upwards for the Westpac share price.

So much so, the broker has a conviction buy rating and $27.60 price target on the bank’s shares.

Its analysts believe Westpac and rival National Australia Bank Ltd (ASX: NAB) can provide double digit returns each year over the next three years. The broker explained:

The major Australian banks have been in the midst of an EPS upgrade cycle, with 12-month forward EPS having increased by an average of 21% p.a. over the last two years. However, the outlook is now less optimistic, with 12-month forward EPS now only representing a c. 4% p.a. tailwind to share prices over the next three years. Despite this, the outlook for our two Buy stocks, WBC (on CL) and NAB, is better, and we highlight why we think double digit total shareholder returns remains achievable over the next three years.

The post The Westpac share price smashed the other ASX 200 banks in 2022. What now? appeared first on The Motley Fool Australia.

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

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• How I’d invest $1,000 in ASX 200 shares for rising inflation
• 23 ASX shares to buy in 2023 – brokers
• 3 steps to generating passive income with ASX 200 dividend shares in 2023
• Better buy for 2023: Westpac vs. ANZ shares
• Buy Westpac and this ASX 200 dividend share: brokers

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

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

Last year was a crazy one for S&P/ASX 200 Index (ASX: XJO) shares. The index slumped 7% over the 12 months ended Friday despite soaring energy and mining shares.

Meanwhile, stocks in other sectors – like retail and tech – suffered. The S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) tumbled 24% last year while the S&P/ASX 200 Information Technology Index (ASX: XIJ) plunged 36%.

But I think the downturn may have provided an opportunity to build passive income. Here’s how I would invest $5,000 in ASX 200 dividend stocks if I were aiming for a second income stream.

Is now a good time to buy ASX 200 shares for dividend income?

Inflation, interest rate hikes, and major global events boosted some ASX 200 shares in 2022 while dragging others lower.

Fortunately, the market’s long-term performance may sow hope in the hearts of investors. The ASX 200 has historically always returned to and surpassed its previous highs following a downturn.

That means many of the market’s embattled sectors likely house some bargain shares right now.

And there’s a further silver lining for investors hunting a second income. Falling share prices tend to drive dividend yields higher.

Many companies’ dividends remained stable through 2022’s downturn, thereby potentially letting investors get a slice of the pie for less than they might’ve otherwise paid.

Thus, I believe now could be a good time to shift through the rubble in search of quality ASX 200 dividend shares trading for cheap prices. By doing so, I believe I could turn $5,000 into a passive income stream through the power of compounding.

Compounding returns

There’s no shortage of ASX 200 shares currently trading with dividend yields of around 8% following a disastrous 2022.

They include JB Hi-Fi Limited (ASX: JBH), Nine Entertainment Co Holdings Ltd (ASX: NEC), and Fletcher Building Limited (ASX: FBU), to name a few.

An 8% dividend yield would see a $5,000 investment returning $400 over the next 12 months.

That’s not exactly life-changing. However, I would aim to compound my dividends by reinvesting them in ASX 200 shares.

By doing so, and assuming my yield stays the same, I could turn my initial investment into $10,795 in 10 years’ time. At that point, it would be capable of paying out around $864 each year.

But the true magic comes later. In 30 years’ time, my figurative $5,000 investment – reinvested time and time again – could be worth $50,313. That, with an 8% yield, could return $4,025 annually.

And that’s without considering share price growth or a consistent investment strategy.

Choosing wisely

The ultimate challenge I face in putting my strategy to work is to identify oversold buys in the current environment.

While a high dividend yield might herald an oversold stock, it might also suggest a company isn’t spending its cash wisely, making its offerings unsustainable.

Thus, I would pay particular attention to a company’s cash flow and balance sheet to help determine if it’s a buy right now.

The post Here’s how I’d invest $5,000 in ASX 200 shares to earn a second income appeared first on The Motley Fool Australia.

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

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

More reading

• Bought $1,000 of AGL shares 10 years ago? Here’s how much dividend income you’ve received
• The 3 best-performing ASX 200 healthcare shares of 2022 revealed
• 5 things to watch on the ASX 200 on Tuesday
• These were the best-performing ASX 200 shares of 2022
• 3 steps to generating passive income with ASX 200 dividend shares in 2023

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 recommended Jb Hi-Fi and Nine Entertainment. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/uTDe25Q

The ASX share market is full of interesting businesses. But, there are some compelling companies listed elsewhere around the world. We can get access to those with ASX exchange-traded funds (ETFs).

Some ETFs like the Vanguard Australian Shares Index ETF (ASX: VAS) track an index with businesses that are spread across a variety of sectors, such as the S&P/ASX 300 Index (ASX: XKO).

But, there are a growing number of ETFs that provide investors with access to a specific industry or theme.

A report by Sharesies has identified which ETFs investors have been buying. While the Vanguard Australian Shares Index ETF was the most popular, I’m going to outline the next two most popular ETFs that were bought in November 2022 on the Sharesies platform.

VanEck Global Clean Energy ETF (ASX: CLNE)

The purpose of the ETF is to give investors exposure to 30 of the largest companies involved in “clean energy production and associated technology and equipment globally”, according to VanEck. These businesses are from both ‘developed’ and ‘developing’ markets.

There are four main areas that this ASX ETF is invested in – independent power producers and energy traders (33% of the portfolio), electrical equipment (29.3%), semiconductors and semiconductor equipment (24.8%), and electric utilities (12.9%).

In terms of geographic weighting, the US is the biggest allocation with 41%, but many countries have a weighting of more than 2.5%: Spain (10%), China (9.2%), Israel (7.5%), New Zealand (6.6%), Denmark (5.3%), Canada (4.6%), Japan (4.2%), Brazil (2.9%), and Austria (2.6%).

At the end of November 2022, these were the ten biggest positions in the portfolio: Solaredge Technologies, Vestas Wind Systems, Sunrun, First Solar, Enphase Energy, EDP Renovaveis, Bloom Energy, Xinyi Solar, Chubu Electric Power, and Brookfield Renewable. Those positions make up around 48% of the total portfolio.

This ASX ETF comes with an annual management fee of around 0.65%.

BetaShares Climate Change Innovation ETF (ASX: ERTH)

This investment provides a more diversified exposure to the fight against climate change. It’s invested in up to 100 global companies that make at least 50% of their revenue from “products and services that help to address climate change and other environmental problems through the reduction or avoidance of CO2 emissions”.

Sectors covered within the ETF include clean energy providers, along with companies tackling “green transport, waste management, sustainable product development, and improved energy efficiency and storage”.

Looking at the allocations, green energy gets the biggest allocation with 23.8% of the portfolio, followed by ‘enabling solutions’ (21.9%), green transportation (21.3%), sustainable products (21.1%), and water and waste improvements (11.9%).

The portfolio is a bit more US-focused than the first one I outlined, with a weighting of 53.9% to the United States. Other weightings of more than 2% include China (8.6%), South Korea (6.2%), Denmark (5.1%), France (4.4%), Japan (3.5%), Spain (2.5%), Sweden (2.3%), and Germany (2.1%).

The top holdings of this ASX ETF look very different from the VanEck one. Here are the biggest 10 positions: Trane Technologies, Enphase Energy, Eaton, Vestas Wind Systems, American Water Works, Ecolab, Samsung, Cie De Saint-Gobain, East Japan Railway, and BYD.

This ETF comes with an annual management fee of 0.65%.

The post 2 ASX ETFs that investors are using to bet on the future appeared first on The Motley Fool Australia.

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

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

More reading

• Telstra shares fell short in 2022. Can they deliver in 2023?
• Morgans names 2 ASX 200 dividend shares to buy with 5%+ yields
• Bought $1,000 of AGL shares 10 years ago? Here’s how much dividend income you’ve received
• Growth stock crash: is now the time to buy Xero shares?
• 3 defining moments for Fortescue shares in 2022

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 Brookfield Renewable. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Ecolab, First Solar, and SolarEdge Technologies. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/xZdBo2O