• Don’t like mining stocks? Buy these ASX 200 shares instead

    A young woman looks at something on her laptop, wondering what will come next.A young woman looks at something on her laptop, wondering what will come next.

    The last 14 months have been pretty terrible for most S&P/ASX 200 Index (ASX: XJO) shares, but mining has been an exception.

    Despite this, some investors shy away from resources stocks.

    For many, this aversion is due to their cyclical nature. 

    Mining shares can swing wildly depending on commodity prices. They require careful monitoring so investors don’t end up mistiming their entry and exit.

    But if you still fancy exposure to a sector that carried the Australian market for much of 2022, there is a less volatile way to do so.

    Plenty of new work and a jettison of underperformer

    Mining services companies provide outsourced labour and equipment to those businesses that actually own the mines.

    The stocks for these companies could potentially be more stable than the mining companies themselves, as they’re not dependent on the popularity of any one commodity.

    The team at Celeste Funds Management recently pointed out how it’s backing two such companies.

    Monadelphous Group Ltd (ASX: MND) rose 6.6% in March,” its memo to clients read.

    “The company announced $125 million of new contracts and contract extensions with work across the lithium, iron ore and LNG sectors in WA, bringing total contract wins in FY23 to approximately $1.1 billion.”

    The company also closed its underperforming Buildtek arm, which was a Chilean construction and maintenance services business that they had a 90% stake in.

    “The Chilean resources sector has been significantly impacted by COVID, which impacted Buildtek’s financial performance and significantly increased its working capital requirements.”

    In the last financial year Buildtek accounted for 5% of Monadelphous’ revenue, so its closure “isn’t expected to have a material impact on net assets or FY23 earnings”.

    The Monadelphous shares are 10.8% up over the past year, and are currently delivering a 3.84% dividend yield.

    A huge deal with iron ore giant

    Fellow mining services contractor NRW Holdings Limited (ASX: NWH) has a similar market capitalisation to Monadelphous, but its share price dropped 1.8% last month.

    “During the month the company announced the acquisition of OFI Group, a specialist in electrical engineering services and integration, for $4 million,” read the Celeste memo. 

    “OFI Group has an established history working with NRW’s RCR business and should enhance the capabilities of the METS division with expected FY24 revenue contribution of $40 million.” 

    The analysts are also bullish on NRW due to its pipeline of work. “NRW announced two new contracts won by the METS division with Fortescue Metals Group Ltd (ASX: FMG) with a total value of $64 million.”

    The NRW share price is 14.7% higher than it was 12 months ago. The stock currently pays out a mouth-watering 6.5% dividend yield.

    The post Don’t like mining stocks? Buy these ASX 200 shares instead appeared first on The Motley Fool Australia.

    FREE Investing Guide for Beginners

    Despite what some people may say – we believe investing in shares doesn’t have to be overwhelming or complicated…

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    Motley Fool contributor Tony Yoo has positions in Nrw. 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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  • 5 things to watch on the ASX 200 on Tuesday

    A female stockbroker reviews share price performance in her office with the city shown in the background through her windows

    A female stockbroker reviews share price performance in her office with the city shown in the background through her windows

    The S&P/ASX 200 Index (ASX: XJO) went into the Easter break on a disappointing note. The benchmark index fell 0.3% to 7,214.9 points.

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

    ASX 200 expected to fall

    The Australian share market looks set to fall again on Tuesday following a subdued start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 12 points or 0.2% higher. In late trade in the United States, the Dow Jones is up 0.1%, the S&P 500 is down 0.1%, and the NASDAQ is down 0.1%.

    Oil prices tumble

    Energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have tough session after oil prices tumbled overnight. According to Bloomberg, the WTI crude oil price is down 1.1% to US$79.83 a barrel and the Brent crude oil price is down 1% to US$84.28 a barrel. Recession and rate hike concerns appear to be weighing on prices.

    Buy Eagers ahead of Bapcor: Morgans

    The team at Morgans has been running the rule over the auto and autoparts industry and is telling investors to buy Eagers Automotive Ltd (ASX: APE) ahead of Bapcor Ltd (ASX: BAP). Morgans has an add rating and $15.85 price target on Eagers shares and a holding rating and $7.40 price target on Bapcor’s shares. The broker notes that electric vehicle sales have now hit 7.4% of the market and highlights that Eagers has “direct leverage to EV penetration.”

    Gold price drops

    It could be a poor day for gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) after the gold price dropped overnight. According to CNBC, the spot gold price is down 1% to US$2,005.9 an ounce. The release of strong US jobs data appears supportive of further rate hikes.

    Dividends being paid

    A number of ASX 200 shares will be rewarding their shareholders with their latest dividend payments on Tuesday. This includes New Zealand based telco Chorus Ltd (ASX: CNU), integrated services company Downer EDI Ltd (ASX: DOW), administration services company Link Administration Holdings Ltd (ASX: LNK).

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

    FREE Guide for New Investors

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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 Link Administration. The Motley Fool Australia has recommended Bapcor. 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://www.fool.com.au/2023/04/11/5-things-to-watch-on-the-asx-200-on-tuesday-160/

  • 2 ASX ETFs to buy for global investing

    world's biggest companies represented by one person holding cityscape and another holding earth in hands

    world's biggest companies represented by one person holding cityscape and another holding earth in hands

    If you would like to add some international exposure to your portfolio, then you could look at exchange traded funds (ETFs).

    There are many out there that provide investors with easy access to large groups of international stocks.

    For example, the two listed below collectively offer investors exposure to thousands of stocks from across the globe. Here’s why they could be top options for investors:

    BetaShares Asia Technology Tigers ETF (ASX: ASIA)

    The first ETF to look at is the BetaShares Asia Technology Tigers ETF. It provides investors with access to many of the best tech stocks in the Asian region. This means you’ll be buying well-known companies such as ecommerce giant Alibaba, search engine company Baidu, and WeChat owner Tencent.

    It has been a tough period for Asian stocks, but with China’s reopening and regulatory pressures easing, things are looking up in 2023. This could potentially make it an opportune time to invest in the region with a long term view.

    Vanguard All-World ex-U.S. Shares Index ETF (ASX: VEU)

    Another ETF that could be a top option for investors is the Vanguard All-World ex-U.S. Shares Index ETF.

    Vanguard highlights that this ETF brings the world to your portfolio with approximately 3,500 companies listed in developed and emerging markets across the globe, excluding the United States.

    In addition, the fund manager notes that it can expand a portfolio to include many sectors not well represented in Australia. The largest country allocations are Japan, China, United Kingdom, France, and Canada, with Australia accounting for approximately 5% of the exposure.

    Among its holdings you’ll find a diverse group of shares such as financials (Royal Bank of Canada, AIA Group, HSBC Holdings), consumer discretionary companies (Samsung, LVMH Moet Hennessy Louis Vuitton, Sony), technology companies (Taiwan Semiconductor, Tencent), industrials (Toyota) and healthcare companies (Astra Zeneca, Roche Holdings).

    The post 2 ASX ETFs to buy for global investing appeared first on The Motley Fool Australia.

    “Cornerstone” ETFs for building long term wealth…

    Scott Phillips says plenty of people who hear the ‘ETFs are great’ story don’t realise one important thing. Not all ETFs are the same — or as good as you may think.

    To help investors navigate this often misunderstood area of the market, he’s released research revealing the “cornerstone” ETFs he thinks everyone should be looking at right now. (Plus which ones to avoid.)

    Click here to get all the details
    *Returns as of April 3 2023

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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 recommended Betashares Capital – Asia Technology Tigers 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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  • Buy these ASX dividend shares for a big passive income boost: Goldman Sachs

    mining Iluka record profit results

    mining Iluka record profit results

    If you’re looking for a passive income boost, then you may want to check out the ASX dividend shares listed below.

    Goldman Sachs has tipped these ASX shares to pay their shareholders big dividends this year and next. Here’s what you need to know about them:

    Rio Tinto Ltd (ASX: RIO)

    If you’re not averse to investing in the mining sector, then Goldman thinks Rio Tinto could be a great ASX dividend share to buy.

    The broker believes the mining giant’s shares are good value compared to rivals. Particularly given its production growth, free cash flow improvement potential, and its high-quality aluminium business. It commented:

    We are Buy rated on RIO and add to the CL due to: (1) compelling relative valuation vs. peers (0.9xNAV vs. BHP 1.05xNAV and FMG 1.5xNAV), (2) strong FCF and Div yield with our bullish view on iron ore, aluminium and copper prices, (3) strong production growth from iron ore and copper (+8% Cu Eq terms in 2023E, +5% in 2024E), (4) the potential for FCF/t improvement in the Pilbara in 2023 with Guida-darri and over the medium to long run driven by Rhodes Ridge, and (5) World’s highest margin low emission aluminium business.

    Its analysts are forecasting fully franked dividends per share of US$5.33 in FY 2023 and then US$5.98 in FY 2024. Based on current exchange rates and the latest Rio Tinto share price of $116.31, this will mean yields of 6.9% and 7.8%, respectively.

    Goldman Sachs has a buy rating and $140.40 price target on its shares.

    Universal Store Holdings Ltd (ASX: UNI)

    If you would prefer not to invest in the mining sector, then this youth fashion retailer could be the ASX dividend share for you.

    Goldman Sachs believes Universal Store is a great option due to its expansion opportunities and exposure to younger consumers. The broker expects the latter to continue spending as normal thanks to minimum wage increases and their lower exposure to rising interest rates. It explained:

    We believe the young Australian consumer is uniquely resilient to inflationary and broader economic pressures given (1) a high proportion live at home; (2) more than two-thirds are working; (3) high and increasing minimum wage entitlements and; (4) a heavy skew towards discretionary spending.

    In respect to dividends, the broker is forecasting fully franked dividends of 27 cents in FY 2023 and 34 cents in FY 2024. Based on the latest Universal Store share price of $5.10, this equates to yields of 5.3% and 6.65%, respectively.

    Goldman Sachs currently has a buy rating and $8.05 price target on its shares.

    The post Buy these ASX dividend shares for a big passive income boost: Goldman Sachs appeared first on The Motley Fool Australia.

    Looking to buy dividend shares to help fight inflation?

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    *Returns as of April 3 2023

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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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  • These are the 10 most shorted ASX shares this week

    man with his hand on his chin wondering about the AIM share price

    man with his hand on his chin wondering about the AIM share price

    At the start of each week, I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

    This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

    With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

    • Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted ASX share after its short interest rose to 11.9%. Short sellers appear to believe weaker revenue margins could lead to Flight Centre falling short of expectations.
    • Megaport Ltd (ASX: MP1) has seen its short interest increase to 10.3%. The sudden departure of the network as a service provider’s CEO and CFO appears to have spooked investors.
    • Zip Co Ltd (ASX: ZIP) has short interest of 10.1%, which is up marginally week on week. Short sellers appear to be doubting Zip’s ability to achieve its profit targets.
    • Core Lithium Ltd (ASX: CXO) has short interest of 9.5%, which is down week on week. Short sellers aren’t giving up on this one despite recent M&A activity in the lithium industry.
    • Sayona Mining Ltd (ASX: SYA) is another ASX lithium share that short sellers aren’t giving up on. Its short interest has increased to 8.8% despite it announcing the restart of the NAL project.
    • Temple & Webster Group Ltd (ASX: TPW) has seen its short interest jump to 7.8%. Short sellers don’t appear confident that this furniture retailer is performing well in the tough economic environment.
    • Pointsbet Holdings Ltd (ASX: PBH) has short interest of 7.3%, which is up slightly week on week. This may be due to competition and cash burn concerns.
    • Breville Group Ltd (ASX: BRG) has returned to the top ten with short interest of 7.3%. The struggling housing market and the cost of living crisis may be why short sellers are targeting this appliance manufacturer.
    • AMA Group Ltd (ASX: AMA) has entered the top ten with short interest of 7.25%. This may be due to the smash repairer’s extremely high level of debt.
    • Brainchip Holdings Ltd (ASX: BRN) has seen its short interest remain flat at 7.2%. Despite recent share price weakness, this struggling semiconductor still has a lofty market capitalisation and little revenue.

    The post These are the 10 most shorted ASX shares this week appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

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    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of April 3 2023

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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 Megaport, PointsBet, Temple & Webster Group, and Zip Co. The Motley Fool Australia has recommended Flight Centre Travel Group, Jb Hi-Fi, Megaport, PointsBet, 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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  • Why Goldman Sachs is raving about these ASX growth shares

    A woman's hair is blown back and her face is in shock at this big news.

    A woman's hair is blown back and her face is in shock at this big news.

    If you’re like me and have a penchant for ASX growth shares, then it could be worth checking out the two listed below.

    Analysts at Goldman Sachs are very bullish on these shares and are tipping some strong gains over the next 12 months.

    Here’s what the broker is saying about them:

    Temple & Webster Group Ltd (ASX: TPW)

    Goldman Sachs is a big fan of Australia’s leading pure-play online retailer of furniture and homewares.

    Its analysts believe it could be an ASX growth share to buy thanks to its major long term market opportunity.

    The broker highlights that Temple & Webster has a leadership position in a retail category that is still only in the early stages of shifting online. In addition, it believes the company is well-placed due to the category’s high barriers to entry and its specialised approach to e-commerce.

    All in all, the broker is forecasting “a 21% 10-yr EBITDA CAGR driven by consolidation of market share and growing online penetration.”

    Goldman has a buy rating and $6.50 price target on the company’s shares.

    Xero Limited (ASX: XRO)

    Another ASX growth share that Goldman is raving about is Xero. It is a New Zealand based cloud accounting platform provider taking on the world (of accounting).

    At the last count, Xero had a total of 3.3 million subscribers globally. And while this is undoubtedly a large number and underpinning huge revenues, it is still only a small slice of its market opportunity.

    Goldman Sachs notes that Xero has a “compelling global growth story” thanks to it total addressable market (TAM) of ~45 million+ subscribers.

    It is also worth noting that Xero recently revealed major cost cutting plans that will supercharge its earnings growth in the coming years.

    Goldman Sachs has a buy rating on Xero’s shares with a $116.00 price target.

    The post Why Goldman Sachs is raving about these ASX growth shares appeared first on The Motley Fool Australia.

    FREE Beginners Investing Guide

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    *Returns as of April 3 2023

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

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  • 2 ASX 200 gold shares going gangbusters (with more to come)

    miniature rocket breaking out of golden egg representing rocketing share priceminiature rocket breaking out of golden egg representing rocketing share price

    Believe it or not, there are some ASX shares that shoot upwards when volatility strikes the rest of the market.

    As a traditionally “safe haven” asset, companies involved in producing or investing in gold tend to do well when people get anxious.

    The last few weeks have seen some hairy moments in the world of finance, with bank failures in the US flowing into the disappearance of Credit Suisse over in Europe.

    The team at Celeste Funds Management, in a memo to clients, observed that the precious metal once again flourished last month during upsetting times.

    “Global financial sector instability saw the AUD gold price rally to record highs, resulting in domestic miners Silver Lake Resources Ltd (ASX: SLR) and Gold Road Resources Ltd (ASX: GOR) rising 16.4% and 16.0% respectively.”

    ‘Strong upside potential’

    Despite the March surge, the celeste analysts feel like there is more to squeeze out of both S&P/ASX 200 Index (ASX: XJO) gold miners.

    “Our focus remains on production growth out of Silver Lake’s Deflector asset as well as the operational turnaround at the recently acquired Sugar Zone project,” read the memo.

    “Gold Road’s prospects are promising with improving grade at Gruyere and the investment in De Grey Mining Limited (ASX: DEG) offering strong upside potential.”

    Finance expert John-Louis Judges last week picked Silver Lake as a hot ASX 200 stock he would buy right now.

    “The company’s healthy cash and bullion position of $253 million provides a strong financial foundation for future growth and investment,” Judges said on The Bull.

    “The potential for a higher value of gold in the near term makes Silver Lake Resources a good investment opportunity.”

    Argonaut Securities associate dealer Harrison Massey also shared Judges and the Celeste team’s bullishness for Silver Lake.

    “The company is poised to take advantage of what we expect will be a stronger gold price in the near term.”

    The Silver Lake stock price is up 3.78% year to date, while Gold Road is 2% higher.

    The post 2 ASX 200 gold shares going gangbusters (with more to come) appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the ‘five best ASX stocks’ for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now…

    See The 5 Stocks
    *Returns as of April 3 2023

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

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  • Invested $12,000 in Woodside shares in 2018? Here’s how much dividend income you’ve earned

    Australian dollar notes inside the pocket on jeans, symbolising dividends.Australian dollar notes inside the pocket on jeans, symbolising dividends.

    The Woodside Energy Group Ltd (ASX: WDS) share price has put on a wobbly performance over the last five years, hitting a high of $39.57 and a low of $14.93 in that time. Fortunately, it’s ultimately moved higher.

    If one were to have bought $12,000 of Woodside shares five years ago, they likely would have walked away with 398 stocks, paying $30.11 apiece.

    Today, that parcel would be worth $13,488.22. The Woodside share price has gained 13% since April 2018.

    That’s a decent gain, but not as good as the returns provided by the S&P/ASX 200 Index (ASX: XJO). The index has lifted around 24% over the same period.

    But have Woodside’s dividends helped send its returns above those provided by the index? Let’s take a look.

    All dividends paid to those holding Woodside shares since 2018

    Here are all the dividends paid to those invested in Woodside shares since April 2018, rounded to the nearest cent:

    Woodside dividends’ pay date Type Dividend amount
    April 2023 Final $2.15
    October 2022 Interim $1.60
    March 2022 Final $1.46
    September 2021 Interim 41 cents
    March 2021 Final 15 cents
    September 2020 Interim 36 cents
    March 2020 Final 83 cents
    September 2019 Interim 53 cents
    March 2019 Final $1.27
    September 2018 Interim 73 cents
    Total:   $9.49

    As the chart above shows, each Woodside share has yielded $9.49 of dividends over the last five years.

    That means our figurative $12,000 investment has likely returned $3,777.02 of passive income over its life. It also brings its total return on investment (ROI) to 44%.

    Of course, if one were to have reinvested their dividends, they might have realised an even better return thanks to compounding.

    Additionally, all the dividends offered by the ASX 200 energy giant over the last five years have been at least partially franked. Thus, they might have brought tax benefits for some shareholders.

    Right now, Woodside shares offer a whopping 11% dividend yield.

    The post Invested $12,000 in Woodside shares in 2018? Here’s how much dividend income you’ve earned appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Woodside Petroleum Ltd right now?

    Before you consider Woodside Petroleum Ltd, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Woodside Petroleum Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

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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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  • Build your portfolio around these ASX 200 blue chip shares: brokers

    A businessman stacks building blocks.

    A businessman stacks building blocks.

    The S&P/ASX 200 index (ASX: XJO) is home to 200 of the largest listed companies on the Australian share market.

    Among these 200 companies are some true blue chip stars that could form the foundations for a winning portfolio.

    But which ASX 200 shares should you consider buying right now? Two that have recently been named as buys are listed below:

    CSL Limited (ASX: CSL)

    The first ASX 200 share that analysts rate as a buy is CSL.

    It is one of the world’s leading biotherapeutics companies with a collection of industry-leading therapies. This includes therapies such as Privigen, Hizentra, Idelvion, and Afstyla.

    But CSL is never one to rest on its laurels. As well as not being afraid to make major acquisitions, such as Vifor Pharma last year, the company reinvests in the region of 12% of its sales back into research and development (R&D) activities each year. This ensures that it has an R&D pipeline containing some potentially lucrative and life-saving therapies and vaccines.

    Combined with its new plasma collection technology, the future looks bright for this ASX 200 blue chip star.

    As a result, it will come as no surprise to learn that a large number of brokers are recommending CSL shares as a buy. One of those is Citi, which has a buy rating and $350 price target.

    ResMed Inc. (ASX: RMD)

    Another ASX 200 share that could be a great addition to your portfolio is ResMed.

    If you’re one of the estimated one in five people with a sleep disorder globally, you might be well aware of ResMed and its products. Though, that said, with the vast majority of sufferers still undiagnosed, perhaps you won’t be.

    However, with education around sleep disorders and the health risks they pose improving each year, ResMed looks well-placed to continue its solid growth long into the future. Particularly given its industry-leading products, R&D investment, and wide distribution network.

    Goldman Sachs is bullish on ResMed. It currently has a buy rating and $38.00 price target on its shares.

    The post Build your portfolio around these ASX 200 blue chip shares: brokers appeared first on The Motley Fool Australia.

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    And to help even more people cut through some of the confusion “experts’” seem to want to perpetuate – we’ve created a brand-new “how to” guide.

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    *Returns as of April 3 2023

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    Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and ResMed. The Motley Fool Australia has positions in and has recommended ResMed. 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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  • Why did the A2 Milk share price crash 12% in March?

    A man holds his head in his hands, despairing at the bad result he's reading on his computer.

    A man holds his head in his hands, despairing at the bad result he's reading on his computer.

    The A2 Milk Company Ltd (ASX: A2M) share price had a tough time in March.

    During the month, the infant formula company’s shares lost 12% of their value.

    This compares to a 1.1% decline by the benchmark S&P/ASX 200 Index (ASX: XJO).

    Why did the A2 Milk share price underperform?

    There were a couple of reasons why A2 Milk shares took a tumble in March.

    The first was concerns over trading conditions in the lucrative China market. When A2 Milk released its half-year results in February, it warned that it was entering a challenging period with a falling birth rate and changes to regulations.

    A2 Milk’s CEO, David Bortolussi, commented:

    We are in good shape heading into an increasingly challenging period with the rolling impact of the decline in the birth rate and a market wide transition of China label product to the new GB standard.

    Investors appear to believe the second half of FY 2023 could be tricky and may be questioning the company’s ability to deliver on its guidance.

    What else?

    Also potentially weighing on the A2 Milk share price was a broker downgrade from Bell Potter last month.

    According to the note, the broker downgraded the company’s shares to a hold rating from buy with a reduced price target of $6.80.

    Bell Potter explained its decision, commenting:

    We downgrade from Buy to Hold. Ultimately A2M and SM1 balance dates don’t align and SM1 issues may simply reflect restocking and destocking decisions on the part of A2M around SAMR registration. While we like the long-term story in A2M, we are cognisant that FY24e market expectations are higher than ours and unfortunately we saw more in the recent SM1 1H23 result to support our current forecasts than make us consider materially upgrading them.

    The post Why did the A2 Milk share price crash 12% in March? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in The A2 Milk Company Limited right now?

    Before you consider The A2 Milk Company Limited, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and The A2 Milk Company Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of April 3 2023

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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 recommended A2 Milk. 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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