The Woodside Energy Group Ltd (ASX: WDS) share price is taking a tumble on Thursday.

In morning trade, the energy giant’s shares are down 4% to $31.56.

Why is the Woodside share price falling?

Investors have been hitting the sell button today after oil prices sank for a second day in a row.

According to CNBC, WTI crude oil futures fell more than 5% to settle at US$67.61 per barrel and Brent crude oil fell 4% to settle at US$74.36 per barrel. The former was its lowest level since back in December 2021.

This has led to fellow energy shares falling along with Woodside on Thursday. Here’s a summary of how energy shares are performing:

• The Beach Energy Ltd (ASX: BPT) share price is down 3%.
• The Karoon Energy Ltd (ASX: KAR) share price is down 2%.
• The Santos Ltd (ASX: STO) share price is down 3%.

What’s going on?

The catalyst for the weakness in oil prices was news that the banking crisis has spread to Europe.

Overnight, Credit Suisse’s biggest investor, the Saudi National Bank, revealed that it would not provide any further assistance for the struggling Swiss bank. This sparked fears that Credit Suisse could collapse and raised concerns over the state of the global banking system.

And while the Swiss National Bank advised that it will provide additional liquidity if necessary, this hasn’t been enough to ease investor concerns about the global economy and ultimately demand for oil.

Ed Moya, a senior market analyst at Oanda, told CNBC that he expects oil to be stuck in a surplus for the near term. He said:

The oil market is going to be stuck in a surplus for most of the first half of the year, but that should change as long as we don’t see a major policy mistake by the Fed that triggers a severe recession. Now near the mid-$60s, WTI crude’s plunge is at the mercy of how much worse the macro picture gets.

The Woodside share price is now 11% in 2023.

The post Why is the Woodside share price sinking today? appeared first on The Motley Fool Australia.

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More reading

• Why 29Metals, Eagers Automotive, Northern Star, and Woodside shares are dropping today
• Woodside share price sinks as oil remains under pressure
• What’s the forecast for the oil price in 2023?
• 5 things to watch on the ASX 200 on Wednesday
• Down 12% in a week, has the Woodside share price got further to fall?

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

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The Temple & Webster Group Ltd (ASX: TPW) share price is defying the market weakness and pushing higher on Thursday.

In morning trade, the online furniture retailer’s shares are up 1.5% to $3.52.

However, despite this, the Temple & Webster share price remains down 40% over the last 12 months.

Why is the Temple & Webster share price rising?

Investors have been buying the company’s shares after it announced a major share buyback.

According to the release, Temple & Webster is planning to return up to $30 million to shareholders via an on-market share buyback. This will commence on 3 April for a period of 12 months.

The board appears to believe recent weakness in the Temple & Webster share price means it is undervalued and that buying back shares will create value for shareholders. It explained:

The board considers the acquisition of shares at prevailing prices to be effective capital management while retaining financial flexibility to fund accretive organic and inorganic opportunities as part of its growth strategy.

The release also notes that, in accordance with listing rules, the prices paid for shares purchased under the buy-back will be no more than 5% above the volume-weighted average price of its shares over the five trading days prior to purchase.

Its buy back will also be limited to 10% of issued capital over the 12-month period, which therefore does not require shareholder approval.

Finally, management will continue to assess market conditions, its prevailing share price, available investment opportunities, and all other relevant considerations throughout the buy-back period. It reserves the right to suspend or terminate the buy-back program without notice at any time.

The post Temple & Webster share price higher on $30 million share buyback appeared first on The Motley Fool Australia.

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More reading

• Analysts say these exciting ASX growth shares are buys this month
• 2 ASX growth shares to buy: Goldman Sachs
• This ASX growth share has a massive 84% upside: Goldman Sachs
• 2 ASX All Ords shares I think can make big returns by 2025

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 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.

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This week, I have been chatting with Zip Co Ltd (ASX: ZIP) co-founder and chief operating officer Peter Gray about the buy now, pay later (BNPL) provider’s performance and its profit goal progress.

The first part, covering Zip’s performance in the face of higher interest rates and the cost of living crisis, can be found here.

In this final part, we’re going to be looking at the versatility of the Zip platform and those all-important profit goals.

Pulling all the right levers

When Zip released its first-half results last month, it surprised many in the market by delivering credit loss improvements despite the tough economic environment. Gray was very happy with the half and believes Zip remains well-placed even if the economy worsens. He explained:

Despite a rising interest environment, higher revenue margins and improved credit losses drove a 20 basis points lift to NTM to 2.5%, a great result, and now in line with our target range. With US credit losses on a cohort basis improving by around 150 basis points year on year, we are very well-placed in an economic downturn.

One of the keys to the company’s success has been the levers it can pull to control its losses. I asked how easy it is for Zip to respond to changes in the economy. The COO advised:

Zip’s product construct and short capital recycling profile mean that we are able to drive changes in response to the external environment very quickly. The improvement to NTM we have delivered over the last nine months confirms the levers we have at our disposal and the control we have over our unit economics.

Profit goals

Based on the performance of the Zip share price, it seems the market has doubts over the company’s ability to achieve its profit goals despite its strong first-half performance.

I asked Gray how these targets are progressing, and the co-founder revealed that he believes the company is on track to achieve its targets. He also highlights the company’s sufficient liquidity and funding to see it through to this point and then expects to deliver profitable growth in 12 months’ time. Gray commented:

We are very pleased with the improvement in Core Cash EBTDA, which was better by $27m year on year and is expected to improve again by up to 50% in the second half. With this trajectory and additional cash inflows from RoW business sales and closures expected during 2H FY23, we remain confident that we have sufficient liquidity and funding to see us through to group positive cash EBTDA during H1 FY24. This outcome will provide a very strong platform for the business to then accelerate, delivering profitable growth for the second half of FY24 and beyond.

Should you invest?

As I mentioned yesterday, one leading broker that believes the market has got it wrong with the Zip share price is Shaw and Partners.

It recently reaffirmed its buy rating with a $2.02 price target, which implies huge upside over the next 12 months.

The first part of Peter Gray’s exclusive chat with The Motley Fool Australia can be found here.

The post ‘Very strong platform to accelerate’: Has the Zip share price been oversold? appeared first on The Motley Fool Australia.

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• Zip ‘is resilient and stands up well’
• Zip share price dips amid cap raise rumours
• Here are the 10 most shorted ASX shares this week
• Broker tips 280% upside for Zip share price
• Here are the 10 most shorted ASX shares this week

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.

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The investment team at Wilson Asset Management (WAM) have shared two undervalued All Ordinaries Index (ASX: XAO) shares in one of their fund portfolios.

WAM operates several listed investment companies (LICs). While one targets larger companies, WAM Capital Limited (ASX: WAM) targets “the most compelling undervalued growth opportunities in the Australian market”.

How much of a claim of stock-picking pedigree does WAM have? The WAM Capital portfolio has delivered an investment return of 14.9% per annum since its inception in August 1999. That’s before fees, expenses, and taxes. This gross return outperformed the All Ordinaries Total Accumulation Index (ASX: XAOA) return of 8.3% per annum over the same timeframe.

With that in mind, here are the two All Ords ASX shares WAM Capital has outlined in its recent monthly update.

oOh!Media Ltd (ASX: OML)

This ASX share is described as one of Australia’s largest out-of-home media companies with a network of over 37,000 digital and static asset locations.

WAM noted that last month, the company announced its financial result for the year to 31 December 2022, which showed an adjusted net profit after tax (NPAT) of $56.2 million, an increase of 343%.

The fund manager also noted that oOh!Media’s earnings before interest, tax, depreciation and amortisation (EBITDA) increased by 64% to $127.1 million year over year.

In other words, the All Ords ASX share is currently achieving a lot of profit growth. WAM’s concluding thoughts on the business were:

We believe that out-of-home media continues to have a strong runway of structural growth, and we remain positive on oOh!Media.

NRW Holdings Limited (ASX: NWH)

The fund manager described NRW Holdings as a civil and structural engineering company that is focused on the mining and government infrastructure sectors.

It was reporting month in February 2023 for NRW as well. This result was the FY23 half-year report, which showed earnings before interest, taxes and amortisation (EBITA) of $80.1 million.

The All Ords ASX share’s result was “below market expectations” and was “largely due to poor weather” surrounding its East Coast operations and “increased tendering costs.”

WAM called this first-half result “disappointing” but pointed out that NRW Holdings maintained its full-year earnings guidance of $162 million to $172 million of EBITA.

The fund manager explained its investment in the business:

We believe that the business is well-placed to win new contracts over the coming months which will boost earnings into the next financial year.

The post 2 compelling All Ords ASX shares to buy in March 2023: expert appeared first on The Motley Fool Australia.

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• Golden buying opportunity for 2 ASX shares slashed last month: Celeste
• These ASX shares are being dumped from the ASX 200 index this month
• These 4 ASX shares could rocket this month: Here’s why
• 3 ASX 300 shares that made big moves on earnings updates

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 exchange-traded fund (ETF) Vanguard Australian Shares Index ETF (ASX: VAS) could be an effective investment today for a number of reasons.

It’s one of the most popular ETFs on the ASX. The ETF is over $12 billion in size, as of 31 January 2023.

For investors that don’t know what this ETF does, it looks to track the S&P/ASX 300 Index (ASX: XKO), which represents 300 of the biggest businesses on the ASX.

It does this for a management fee of 0.10%, which is very low. This enables investors to track the market for almost no cost, and own a small piece of ASX 300 shares like Commonwealth Bank of Australia (ASX: CBA), BHP Group Ltd (ASX: BHP) and CSL Limited (ASX: CSL).

I think these are three of the best reasons to think about the Vanguard Australian Shares Index ETF right now.

Cheaper

I like being able to buy my investments at a cheaper price. As Warren Buffett once said:

To refer to a personal taste of mine, I’m going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the ‘Hallelujah Chorus’ in the Buffett household. When hamburgers go up in price, we weep. For most people, it’s the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don’t like them anymore.

The Vanguard Australian Shares Index ETF is down more than 5% since early February 2023. That means investors are able to buy units of the ETF at a noticeably cheaper price and hopefully means that they can make a better return than someone who bought at the start of February.

‘Buying the dip’ with a useful investment seems like a smart move.

Dividend yield

The Vanguard Australian Shares Index ETF is invested in a number of ASX 300 shares that own higher-yielding businesses like CBA, BHP, National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), ANZ Group Holdings Ltd (ASX: ANZ), Woodside Energy Group Ltd (ASX: WDS), Macquarie Group Ltd (ASX: MQG), Wesfarmers Ltd (ASX: WES) and Telstra Group Ltd (ASX: TLS).

The biggest positions in the ETF can have the biggest impact on the dividend yield of the ETF.

According to Vanguard, the ETF offers a dividend yield of 4.2%, plus the franking credits. That’s a much higher dividend yield than many other ETFs offer, such as the iShares S&P 500 ETF (ASX: IVV).

The dividend yield can play an important role in the total returns of the ETF.

Effective investing

While it hasn’t been the highest-performing ETF over the past five years, its returns have still been satisfactory enough to grow wealth.

According to Vanguard, the Vanguard Australian Shares Index ETF has returned an average of 8.5% per annum in the five years to 31 January 2023.

One of the best reasons to consider the ETF as a way to invest in ASX shares is because the portfolio changes its holdings as companies change and new businesses emerge. It’s this regularly-changing portfolio that could enable the ETF to be as relevant and useful an investment as it is today.

However, I think there could be other ETFs that could achieve stronger capital growth.

The post 3 reasons the Vanguard Australian Shares Index ETF (VAS) could be worth buying today appeared first on The Motley Fool Australia.

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More reading

• Here’s how I would secure monthly dividends in the 2024 financial year with these ASX stocks
• Does the Vanguard Australian Shares Index ETF (VAS) hold the ticket to building long-term wealth?
• Top ASX ETFs to buy in March 2023
• Dividend dessert: Which ASX ETFs are the sweetest for a passive income?
• Why did the Vanguard Australian Shares Index ETF (VAS) get hammered in February?

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 CSL. The Motley Fool Australia has positions in and has recommended Macquarie Group, Telstra Group, and Wesfarmers. The Motley Fool Australia has recommended Westpac Banking and iShares S&p 500 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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With earnings season behind us, Goldman Sachs has been looking at how ASX shares have performed since the release of their results.

It highlights that seven ASX shares have underperformed despite delivering stronger than expected results last month.

In light of this, the broker believes an opportunity has opened up for investors to snap up these shares now. They are as follows:

James Hardie Industries plc (ASX: JHX)

Goldman believes this building materials company is a buy with a $39.50 price target. It highlights that its “share price is implying an EBIT of US$681m vs GSe FY24e of US$716m.”

Judo Capital Holdings Ltd (ASX: JDO)

The broker has a buy rating and $1.79 price target on this lender’s shares. Its shares are down 12% despite reporting “cash earnings +28% higher than” than its estimate.

Jumbo Interactive Ltd (ASX: JIN)

Its analysts have a buy rating and $15.50 price target on this lottery ticket seller’s shares. It believes recent share price weakness is “unwarranted” given its solid half-year results.

Lifestyle Communities Ltd (ASX: LIC)

Goldman has this retirement communities company’s shares on its conviction list with a buy rating and $26.50 price target. This is despite Goldman believing that its full-year guidance is “achievable” even in the face of housing market pressures.

Qantas Airways Limited (ASX: QAN)

Another ASX share on Goldman’s conviction list is Qantas with a buy rating and $8.30 price target. It believes “the -7% share price reaction on results day (and the current share price) does not reflect the group’s improved earnings capacity.”

REA Group Ltd (ASX: REA)

Also on its conviction list with a buy rating and $158.00 price target on this property listings company. Goldman believes “the market continues to underappreciate the quality of REA.”

Readytech Holdings Ltd (ASX: RDY)

Goldman Sachs has a buy rating and $4.40 price target on this enterprise software provider’s shares. It highlights that “RDY is now trading at ~17x FY24 P/E while delivering ~20% FY23-25E EBITDA CAGR, supported by its defensive public sector end-markets.”

Universal Store Holdings Ltd (ASX: UNI)

A final ASX share that Goldman believes the market is being too negative on is Universal Store. It has a buy rating and $8.05 price target on its shares. It notes that “UNI has largely retraced its gains after reporting a strong 1H23 result (+12% vs. GSe EBIT).” The broker believes “the market may be discounting the sustainability of UNI’s earnings growth.” However, Goldman disagrees and is forecasting a +17.2% FY 2023-2025 earnings compound annual growth rate.

The post 7 ASX shares flying under the radar to buy now: Goldman Sachs appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Wednesday
• Qantas shares have dumped 7% in 3 days. Should I buy?
• Top ASX 200 tech shares to buy right now: Morgans
• Buy these ASX dividend shares with big yields today: experts
• These ASX tech shares are buys: Goldman Sachs

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 Judo Capital, Jumbo Interactive, and ReadyTech. The Motley Fool Australia has recommended Jumbo Interactive, REA Group, and ReadyTech. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking for dividend shares to buy this month, then you may want to check out the two listed below.

Here’s what you need to know about these high yield ASX dividend shares:

Rio Tinto Ltd (ASX: RIO)

The first ASX dividend share for investors to look at is Rio Tinto.

It is of course one of the world’s largest mining companies with a collection of world class operations across different commodities and geographies.

Goldman Sachs believes Rio Tinto’s shares are a buy. This is due to their “compelling valuation” and the company’s “return to production growth in 2023.”

Another positive is the big dividends that the broker is forecasting. It expects fully franked dividends per share of US$4.23 in FY 2023 and then US$5.46 in FY 2024. Based on current exchange rates and the latest Rio Tinto share price of $119.55, this will mean yields of 5.35% and 6.9%, respectively.

Goldman Sachs has a buy rating and price target of $131.70 on the miner’s shares.

Mineral Resources Ltd (ASX: MIN)

Another high yield ASX dividend share that has been named as a buy is Mineral Resources.

It is a mining and mining services company with exposure to iron ore and lithium across a number of high quality operations.

Bell Potter is a fan of Mineral Resources and thinks the company is well-placed for earnings and dividend growth in the coming years. This is thanks to its business transformation, which the broker believes will underpin “growing production volumes and improving margins.”

In respect to dividends, Bell Potter is forecasting fully franked dividends of 388.7 cents per share in FY 2023 and 939.1 cents per share in FY 2024. Based on the current Mineral Resources share price of $80.49, this will mean 4.8% and 11.5% dividend yields, respectively.

Bell Potter has a buy rating and $111.00 price target on its shares.

The post Brokers name 2 high yield ASX 200 dividend shares to buy now appeared first on The Motley Fool Australia.

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More reading

• These are the best ASX 200 mining shares to buy in March: Morgans
• Rio Tinto share price dips despite copper mega-mine milestone
• Top brokers name 3 ASX shares to buy next week
• Why are ASX 200 lithium shares falling so hard today?
• Investing $10k in this ASX stock could generate passive income of over $1k per year

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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Discovery Fund portfolio manager Chris Bainbridge and Mark Devcich run their eyes over three ASX shares that are now heavily discounted.

Cut or keep?

The Motley Fool: Let’s examine three ASX shares that have been devastated this year, and see if you think each of these is now a bargain buy or if you’d stay away.

The first one is Aussie Broadband Ltd (ASX: ABB), which has almost halved since last Easter. What do you guys reckon?

Mark Devcich: We feel like it’s a buy… To be honest, it got extremely overheated and they did a merger last year with Over The Wire and we feel that’s a strategically a smart thing to do because it gives them more exposure to business and enterprise, and the core Aussie Broadband business was more residential focused.

But the valuation did get overcooked really. The fall in share price hasn’t really been due to execution issues, it’s more just been a devaluation derating. So we feel like there’s another one with a founder-led management team, they’ve got a name to take their market share for NBN residential to 10% from the current 7%, so that’s a more than 50% increase.

There’s also some pretty favourable dynamics in the NBN space right now. You may have seen that the NBN wrote down the value of the network by $31 billion recently, and that was driven by changes to the prices they charge the retail service providers. That’s extremely beneficial to players like Aussie Broadband, who have to pay the NBN for access to the network. And what that’s going to mean is once these changes come through in 1 July, [which] is the expected time frame, there should be substantial margin uplift.

In particular, it’s very favourable for Aussie Broadband because what’s happened is [NBN’s] proposed to take off consumption charges. Because Aussie Broadband gives higher speed plans, and higher usage customers, they’re actually going to benefit more than a regular telco. We don’t feel like consensus is properly factoring in the benefits that could come from this change in NBN pricing into the ’24 financial year.

MF: The next one has just been a shocker. Megaport Ltd (ASX: MP1), which has lost about 65% over the past year or so?

Chris Bainbridge: It’s probably a short-term sell from us.

So what are the reasons for that? At Discovery, we operate a risk management system for both stocks and the portfolio, and at a stock level, that risk management system operates with red flags and amber flags. So we categorise certain things as red flags and certain things as amber flags. If it presents a red flag, it requires us to reduce the position, depending on its quality, by a certain amount.

Now, an unexpected CEO exit is a red flag. As we saw, Vincent English unexpectedly exited the company earlier this week, so just based on our system, we’ve been reducing the position on the basis of that.

More concerning is Vincent’s exit post the exit of Rodney, who was the chief revenue officer last year and then they had more turnover at the company’s secretarial level. It’s always concerning when you see management changes because we’re only seeing the tip of the iceberg. 

MF: The third one is Domino’s Pizza Enterprises Ltd (ASX: DMP), which also halved over the past year. Bargain buy or stay away?

CB: Again, short-term sell from us. 

Domino’s is a company which starts to deliver over footy season. The surprising result was the fact that same-store sales declined in the first half of ’23 more than expected and then became significantly more negative in the first several weeks, down 2.2%. What’s a real concern there, first half of ’23 had the football World Cup in Europe, and that should have been really supportive [of] same-store sales.

So for them to deteriorate more than expected suggests that the business is really struggling. 

Now, clearly, consumers have pushed back against some of those measures intended to pass on the inflationary costs. But abandoning that, Domino’s will probably need to assist franchisees on margins. For example, maybe they defer the advertising contributions that franchisees usually pay, so they’d probably have to do that whilst facing higher input costs themselves as a business.

What does that mean? We can see in the results they’ve had to slice — pun intended — their same-store sales targets and at the same time, there are still rollout plans. So short term, it’s probably cooked. 

Long term, we believe that there’s a great business there. Long term, it’s a great business, but short term, no.

The post These 3 ASX shares just halved. I would buy one of them: experts appeared first on The Motley Fool Australia.

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• Why did the Domino’s share price just hit a multi-year low?
• Here are the 10 most shorted ASX shares this week
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Motley Fool contributor Tony Yoo has positions in Aussie Broadband and Megaport. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband, Domino’s Pizza Enterprises, and Megaport. The Motley Fool Australia has recommended Aussie Broadband, Domino’s Pizza Enterprises, and Megaport. 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 Wednesday, the S&P/ASX 200 Index (ASX: XJO) was back on form and stormed higher. The benchmark index rose 0.85% to 7,068.9 points.

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

ASX 200 expected to sink

The Australian share market is expected to sink on Thursday amid concerns that Credit Suisse could collapse. According to the latest SPI futures, the ASX 200 is expected to open the day 118 points or 1.7% lower this morning. In late trade in the United States, the Dow Jones is down 1.2%, the S&P 500 has fallen 1.05% and the NASDAQ is down 0.3%.

ASX 200 shares go ex-dividend

Another group of ASX 200 shares will go ex-dividend this morning and could trade lower. This includes building products company Fletcher Building Ltd (ASX: FBU), battery materials miner IGO Ltd (ASX: IGO), and New Zealand based telco Spark New Zealand Ltd (ASX: SPK).

Oil prices tumble again

ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a difficult session after oil prices sank again on Wednesday night. According to Bloomberg, the WTI crude oil price is down 3.8% to US$68.52 a barrel and the Brent crude oil price is down 3.4% to US$74.76 a barrel. This has been driven by concerns over the banking crisis.

Pro Medicus upgraded

Following recent share price weakness, analysts at Bell Potter have taken their sell rating off Pro Medicus Limited (ASX: PME) shares and upgraded them to hold with an improved price target of $59.00. The broker commented: “Any further weakness in the share price caused by macro events including further monetary policy tightening in the US or a US recession should be regarded as a buying opportunity as PME revenues are generally immune from broader economic conditions.”

Gold price rises

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a decent session after the gold price rose overnight. According to CNBC, the spot gold price is up 0.6% to US$1,922.3 an ounce. Demand for safe haven assets boosted the precious metal.

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

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Investing in ASX 200 shares? Here’s what to expect from the US Fed next week
• Guess which ASX lithium share just rebounded 15%
• 2 ASX 300 directors who’ve each sold over $3 million of their company shares in a week
• Hoping to dig into the record IGO dividend? You’d better be quick

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

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It was only just over a year ago that ASX coal shares were on the nose with investors.

With the world transitioning to a zero-carbon future, the dirty fossil fuel was increasingly given the cold shoulder by energy buyers and investors alike.

But after Russia invaded Ukraine in February 2022, there has been a sheepish shift in attitude.

Energy security was all of a sudden paramount for many countries, and renewable energy infrastructure would not be built fast enough to meet immediate demand.

Coal was instantly back in favour again.

This turn in sentiment was seen perfectly in one particular S&P/ASX 200 Index (ASX: XJO) stock.

After halving over the preceding four years, the Whitehaven Coal Ltd (ASX: WHC) share price quadrupled in just a few months over 2022.

By October, the stock had hit the $11 mark.

‘Long and bullish’ 

However, with Europe getting through its winter better than anticipated, the energy market has cooled off somewhat in recent months.

As of Wednesday, the Whitehaven coal price was back below $7.

One on-the-ball punter recently asked Shaw and Partners portfolio manager James Gerrish whether he would buy the stock at that price.

The answer was a resounding yes.

“We remain long and bullish Whitehaven Coal, and if we had no position we would be accumulating into current weakness in the $7 region,” he said on a Market Matters Q&A.

Not only is there upside in the share price, according to Gerrish, the dividend yield would remain massive.

“We believe Whitehaven Coal’s average price through the remainder of 2023 will be significantly above $7 while the stock yields ~10% fully franked.”

He’s not the only one bullish on Whitehaven. Morgans analysts this week expressed their enthusiasm for the coal stock.

“Morgans has an add rating and $10.35 price target,” reported The Motley Fool’s James Mickleboro.

“This suggests [a] potential upside of 53% for investors. Its analysts expect this to be complemented with a 10% dividend yield.”

And as for the energy sector in general, the supply-demand equation is expected to continue to favour investors.

“We think the outlook for energy stocks is attractive because there’s just not a lot of supply coming in,” Schroders portfolio manager Ray David told The Motley Fool in January.

“No one really wants to invest in fossil fuels or LNG or gas without the high prices to justify the returns, because everyone’s quite worried about renewables and the ESG factors.”

The post Expert tips 10% dividend yield and booming share price for this ASX 200 stock appeared first on The Motley Fool Australia.

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More reading

• Why Atlantic Lithium, Life360, Neuren, and Whitehaven Coal shares are charging higher
• Analysts warn of future earnings downgrades for ASX 200 coal shares
• 3 ASX 200 coal shares to buy for big gains and huge yields: Morgans
• The whopper Whitehaven dividend is being paid today. Here’s what you need to know
• Is the party well and truly over for ASX 200 coal shares?

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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