The fund manager Wilson Asset Management (WAM) has recently identified some S&P/ASX 200 Index (ASX: XJO) mining shares that it owns (or owned) in one of its main portfolios.

WAM operates several listed investment companies (LICs). These include WAM Capital Limited (ASX: WAM) and WAM Research Limited (ASX: WAX).

There’s also one called WAM Leaders Ltd (ASX: WLE) that looks at the larger businesses on the ASX, often referred to as ASX blue-chip shares.

WAM says WAM Leaders actively invests in the highest quality Australian companies. So does WAM have a good reputation for picking stocks?

The WAM Leaders portfolio has delivered gross returns (before fees, expenses, and taxes) of 13.6% per annum since its inception in May 2016. This compares to the S&P/ASX 200 Accumulation Index average return of 7.2%.

With that in mind, here are some of WAM’s ASX 200 mining share thoughts outlined in a recent monthly update.

Copper, aluminium and iron ore

During September, the WAM Leaders investment team visited Perth to meet with various mining company management teams and undertake site tours in the Pilbara region.

The team concluded that earnings outlooks “vary dramatically by commodity”. It noted that gold, aluminium, and iron ore producers were “relatively downbeat” on pricing, given price declines over the last few months.

However, price aside, WAM said these ASX 200 mining shares “are performing well” operationally, labour challenges have “eased”, diesel costs are down from recent highs, and balance sheets are “strong”.

The fund manager “see opportunities” across the mining sector when considering relative valuations.

WAM sees upside “to both the fundamentals and valuations of base metals” like copper, aluminium, and iron ore for the rest of 2022.

Its largest positions in the sector are BHP Group Ltd (ASX: BHP), Rio Tinto Limited (ASX: RIO), South32 Ltd (ASX: S32), OZ Minerals Limited (ASX: OZL) and Newcrest Mining Ltd (ASX: NCM).

What about lithium?

At the same time, WAM Leaders said that ASX lithium shares expect pricing “to hold at elevated levels given the demand profile continues to accelerate beyond expectation while impending additional supply continues to be delayed.”

The fund manager revealed anecdotal feedback that “supply is so tight that car manufacturers may soon be paying lump sums for the right to have offtake agreements”.

So does that mean that ASX 200 lithium shares are opportunities? WAM said:

While fundamentals for lithium stocks are undoubtedly strong, valuations appear full.

The post Opportunities across the mining sector: Expert names ASX 200 shares to buy appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• If I’d invested $5,000 in these 5 ASX shares five years ago, here’s what I’d have now
• ‘Excellent buying opportunity’: Expert reveals the ASX 200 share he just bought
• Do you want the good news or the bad news on the iron ore price?

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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CSL Limited (ASX: CSL) shares weren’t immune to the initial stock market panic that unfolded in the face of the COVID-19 pandemic.

In the month-long sell-off from late February 2020 through to late March 2020, the S&P/ASX 200 Index (ASX: XJO) global biotech company fell by some 20%.

Over the following month, CSL shares quickly recouped those losses.

While CSL didn’t see its share price explode like some vaccine makers, the company was hard at work to combat the coronavirus.

In an agreement with AstraZeneca, CSL committed to manufacturing around 50 million doses of vaccines in Australia for domestic supply. The first doses were delivered in March 2021.

Which begs the question, could CSL shares capitalise on the next pandemic?

What’s this about the avian flu?

Before ploughing ahead, our apologies for even throwing out the words ‘next pandemic’. There’s no need to go hoarding toilet paper and long-life milk just yet. Or hopefully ever again!

But that doesn’t mean governments and biotech firms aren’t working to get ahead of any potential future outbreaks.

As Fierce Pharma reports, CSL Seqirus – a subsidiary of CSL – inked a $30.1 million agreement with the Biomedical Advanced Research and Development Authority (BARDA), a branch of the United States Department of Health and Human Services.

The agreement will see CSL deliver an avian flu vaccine candidate for a clinical study.

There have only been a few reported cases of the avian flu being transmitted from a bird to a person. And no reported cases of human-to-human transmission yet.

However, Lorna Meldrum, VP of commercial operations, international and pandemic response at CSL Seqirus, said BARDA is concerned enough about the potential dangers of the avian flu to fund the research.

“The next pandemic is probably going to be an influenza pandemic,” Meldrum said. She noted that CSL Seqirus has partnerships with BARDA and other government health agencies across the globe.

Meldrum said that if there was another pandemic outbreak, CSL’s seasonal flu shot production at its Holly Springs plant in North Carolina would “immediately switch” over to producing the pandemic influenza vaccine. She said the plant would be prepared to make 150 million doses within the first six months.

Addressing the company’s readiness at its Holly Springs facility, Meldrum said (quoted by Fierce Pharma):

We have all the ingredients that you need to make a flu vaccine. We have a trained workforce. We have all our [standard operating procedures] in line; we have all our regulatory documents. So, we’re like a machine that you just flick the switch, and then we’re up and running.

How have CSL shares been performing?

The CSL share price has slipped 6.3% in 2022. That compares to a year-to-date loss of 12.4% posted by the ASX 200.

Longer-term, CSL shares are up 101% over five years.

The post Could CSL shares capitalise on the next pandemic? appeared first on The Motley Fool Australia.

More reading

• Here are 2 blue chip ASX 200 shares to add to your portfolio: brokers
• The ASX shares I’d buy now to put away for 4 years: advisor
• If I’d invested $5,000 in these 5 ASX shares five years ago, here’s what I’d have now
• What’s the outlook for ASX healthcare shares in Q2?
• CSL shares ‘still not fully appreciated’: Wilsons

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 CSL Ltd. 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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A number of ASX dividend shares have seen their share prices hit by volatility in 2022. But, an exciting part of the declines we’re seeing is that potential dividend yields are getting pushed higher for prospective investors.

Businesses that are both undervalued and could pay a good dividend may be able to give investors an attractive total return, with a mix of both income and capital growth.

Keep in mind that just because an expert thinks a share price will rise doesn’t mean the market will push it higher over the next 12 months. But I think it’s interesting to look at businesses that are seen as significantly cheaper than their fair value.

With that in mind, let’s look at some of the dividend opportunities that brokers think are attractive.

Baby Bunting Group Ltd (ASX: BBN)

The Baby Bunting share price recently got walloped. It’s down around 35% since 6 October 2022. While the baby product retailing business reported total sales growth of 12% to 7 October 2022, it said the first quarter gross profit margin was down 230 basis points year over year. At the same time, pro forma net profit after tax (NPAT) in the first quarter was down $3 million year over year.

After seeing the update, the brokers at Macquarie still rate the company as an outperform, with a price target of $4.95. That implies a possible rise of around 80% over the next year. It thinks the gross profit margin can somewhat recover during the year.

The ASX dividend share plans to open eight new stores in FY23, with six in Australia and the other two in New Zealand.

Macquarie puts the Baby Bunting share price valuation at 15 times FY23’s estimated earnings with a projected grossed-up dividend yield of 6.1%.

Nine Entertainment Co Holdings Ltd (ASX: NEC)

Nine is the business behind a number of media names including the Nine free-to-air television network, digital streaming business Stan, and newspapers like the Australian Financial Review, The Age, and the Sydney Morning Herald.

Since the beginning of the year, the Nine share price has dropped around 33%. That’s despite the business achieving a strong level of growth in FY22. The last financial year saw revenue growth of 15% to $2.69 billion and NPAT growth of 35% to $373.5 million.

The company also said the new financial year had “started on a positive note in terms of audiences” across all of its platforms. The advertising market, to August, had also “remained resilient”, Nine said. It’s also expecting its advertising revenue to grow more strongly than the markets where it operates in FY23.

The ASX dividend share is currently rated as a buy by the broker Credit Suisse, with a price target of $3.30. That implies a possible rise of more than 60%. The broker predicts the FY23 grossed-up dividend yield to be 10.1%.

PeopleIn Ltd (ASX: PPE)

The business provides staff, business services, and operational services, including workforce management, recruiting, onboarding, contracting, rostering, timesheet management, payroll, and workplace health and safety management.

The PeopleIn share price is another that has suffered heavily in 2022. It is down by 33% year to date.

Broker Morgans thinks that FY23 looks good for the company, rating it as add. It has a price target of $4.90, implying a possible rise of more than 60% over the next year. The potential grossed-up dividend yield for the 2023 financial year is 7.2%.

In FY22, the ASX dividend share generated $47.2 million of normalised earnings before interest, tax, depreciation, and amortisation (EBITDA). In FY23, it guided that it could generate normalised EBITDA of between $62 million to $66 million. However, management said at the time this was “based on the continuation of current economic conditions”.

However, management also said the core business is “resilient even in the event of economic uncertainty”. It plans to focus on growing in sectors that are defensive and have long-term demand for talent.

The post Dividend beasts: Experts name 3 ASX dividend shares that could deliver 50% returns next year appeared first on The Motley Fool Australia.

More reading

• Why Baby Bunting, Mirvac, NIB, and Pilbara Minerals shares are dropping
• Why Baby Bunting, Block, Fortescue, and Santos shares are dropping
• Why Baby Bunting, Calidus, Pointsbet, and South32 shares are falling
• Why did this ASX 300 retail share just crash 25%?
• Should you really be buying ASX shares in this market?

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 Peoplein. The Motley Fool Australia has recommended Baby Bunting and Peoplein. 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 Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a stunning gain. The benchmark index jumped 1.75% to 6,758.8 points.

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

ASX 200 expected to sink

The Australian share market looks set to give back most of Friday’s gains this morning after a terrible end to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 102 points or 1.5% lower this morning. On Wall Street, the Dow Jones was down 1.3%, the S&P 500 dropped 2.4%, and the NASDAQ tumbled 3.1%.

Oil prices tumble

Energy producers including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a tough start to the week after oil prices tumbled on Friday night. According to Bloomberg, the WTI crude oil price was down 3.9% to US$85.61 a barrel and the Brent crude oil price fell 3.1% to US$91.63 a barrel. Global recession fears weighed heavily on oil prices again.

Woolworths’ hack

The Woolworths Group Ltd (ASX: WOW) share price will be in focus today after the retail giant became the latest company to be hit by hackers. According to the release, a compromised user credential was used to gain unauthorised access to the customer relationship management systems of the recently acquired MyDeal business. An estimated 2.2 million customers have been affected.

Fortescue rated as a sell

The Fortescue Metals Group Limited (ASX: FMG) share price is significantly overvalued according to analysts at Goldman Sachs. This morning the broker has retained its sell rating and $13.40 price target on the mining giant’s shares. This implies over 20% downside over the next 12 months. Goldman said: “The stock is trading at a premium to BHP & RIO; c. 1.5x NAV vs. RIO & BHP at c. 0.8x & 1x NAV, c. 6x EBITDA (vs. RIO & BHP on c. 3-5x), and c. 5% FCF vs. BHP & RIO on c. 5-10%.”

Gold price falls heavily

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a poor start to the week after the gold price fell heavily on Friday. According to CNBC, the spot gold price was down 1.7% to US$1,648.9 an ounce during the session. A strong US dollar put pressure on the precious metal.

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

More reading

• 2 first-rate ASX 200 dividend shares experts rate as buys
• If I’d invested $5,000 in these 5 ASX shares five years ago, here’s what I’d have now
• Top ASX dividend shares to buy in October 2022
• ‘Excellent buying opportunity’: Expert reveals the ASX 200 share he just bought
• Do you want the good news or the bad news on the iron ore price?

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 Australian share market certainly is not short of blue chip options. But which ones should you buy?

To help narrow things down, listed below are two top blue chip ASX 200 shares that are rated as buys by experts. Here’s what you need to know about them:

CSL Limited (ASX: CSL)

The first blue chip ASX 200 share to consider is CSL. It is one of the world’s leading biotechnology companies and the name behind the CSL Behring, CSL Vifor, and Seqirus businesses.

The CSL Vifor business is a recent addition following a blockbuster acquisition earlier this year. As a global specialty pharmaceutical leader, it adds iron deficiency, nephrology (kidney care), and cardio-renal therapies to CSL’s world class product portfolio.

And thanks to the company’s investment of around 10% of sales into research and development activities each year, CSL has a pipeline of potentially lucrative and lifesaving therapies coming to market in the next few years if approved by regulators.

Citi is positive on CSL and currently has a buy rating and $340.00 price target on its shares.

National Australia Bank Ltd (ASX: NAB)

Another blue chip ASX 200 share that could be a good option right now for investors is this banking giant.

NAB appears well-placed to profit in the current environment with rates rising and its overweight exposure to commercial lending.

It is because of the latter that Goldman Sachs is positive on the bank. It sees “volume momentum over the next 12 months as favouring commercial volumes over housing volumes and NAB provides the best exposure to this thematic.”

The broker currently has a buy rating and $35.15 price target on the bank’s shares. It also expects a ~5% fully franked dividend yield in FY 2023.

The post Here are 2 blue chip ASX 200 shares to add to your portfolio: brokers appeared first on The Motley Fool Australia.

More reading

• The ASX shares I’d buy now to put away for 4 years: advisor
• If I’d invested $5,000 in these 5 ASX shares five years ago, here’s what I’d have now
• What’s the outlook for ASX healthcare shares in Q2?
• NAB share price lifts amid ‘first for a major Australian bank’
• CSL shares ‘still not fully appreciated’: Wilsons

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

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If you’d like to make some investments but aren’t sure which shares to buy, then exchange traded funds (ETFs) could be a good option for you.

But which ETFs could be buys? Three that are very popular are listed below. Here’s what you need to know about them:

BetaShares NASDAQ 100 ETF (ASX: NDQ)

The first ETF for investors to look at is the BetaShares NASDAQ 100 ETF. This ETF allows investors to buy many of the highest quality companies in the world in one fell swoop. That’s because the BetaShares NASDAQ 100 ETF is home to the 100 largest non-financial shares on the famous NASDAQ exchange. Among the companies you’ll be investing in are Alphabet, Amazon, Apple, Meta, Microsoft, Netflix, and Tesla. And with the index down materially this year, now could be an opportune time to make a long term investment.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A second ETF for investors to look at is the VanEck Vectors Morningstar Wide Moat ETF. If you’re a fan of Warren Buffett, then this ETF could be for you. That’s because this ETF aims to invest in a group of fairly valued companies that have sustainable competitive advantages. This is something that Mr Buffett looks for when he invests. At present there are approximately ~50 shares included in the ETF. This includes Adobe, Alphabet, Amazon, Boeing, Constellation Brands, Microsoft, and Walt Disney.

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

A final ETF that could be a top option for investors is the VanEck Vectors Video Gaming and eSports ETF. This popular ETF give investors exposure to the growing video gaming market. VanEck highlights that the industry is well-positioned for growth thanks to the increasing popularity of video games and eSports. This could bode well for the companies included in the ETF such as hardware giant Nvidia and game developers Roblox, Take-Two, and Electronic Arts.

The post 3 superb ETFs for ASX investors to buy now appeared first on The Motley Fool Australia.

More reading

• 2 top ETFs for ASX investors to buy in October
• Why this ASX ETF might help investors sleep better at night
• 2 exciting tech ETFs for ASX investors to buy before the market rebounds
• Has the Betashares Nasdaq 100 ETF been a good buy so far in FY23?
• 3 high quality ETFs for ASX investors to buy next 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 BETANASDAQ ETF UNITS. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It can be a worrying time for Australian near-retirees when the share market falls. Many of them are intending to rely on ASX shares and other income-producing investments to fund their retirement.

So, when the S&P/ASX All Ordinaries Index (ASX: XAO) slumps by more than 12% — as it has done in 2022, retirees can get nervous.

Introducing Minchin Moore Private Wealth partner and principal, Ben Smythe, to provide some tips.

What can retirees do about market volatility?

Smythe writes in the Australian Financial Review (AFR) about “the reality of sequencing risk [becoming] more of a concern” for Australians near retirement.

Smythe said:

Sequencing risk refers to the sequence or order of returns – specifically negative returns – occurring at the same time you start to draw capital from your SMSF (self-managed superannuation fund) to fund your retirement.

A bear market in terms of investment returns at the outset of retirement can cause significant stress on the capital supporting your retirement. The amount of stress will be dictated by your living expense drawings and capital set aside …

If you are forced to sell assets that have deflated in value to fund your living expenses, the ability to recoup that realised capital loss will be incredibly difficult.

Here’s the good news… interest rates are going up

Smythe explains the importance of a cash buffer:

… recent market volatility is being driven in part by aggressive cash rate rises by central banks, which are starting to translate into higher returns on cash and term deposits.

Building a cash buffer as you approach retirement is an incredibly powerful tool to reduce the impact of sequencing risk as it allows you to draw your living expenses from your cash bucket as you enter retirement rather than solely from other asset classes which may be far more volatile.

The role of cash in your portfolio should simply be to provide liquidity and nil volatility. The added bonus now is that can also earn quite a reasonable return.

Regarding how much cash you should hold, the general rule of thumb is for retirees to aim for at least two years of living expenses.

This balance will ebb and flow with withdrawals and investment income received but if you can aim for this target, it will provide a buffer if there is a prolonged bear market affecting the other asset classes in your SMSF.

Can you buy ASX shares with your cash buffer?

Smythe says the other advantage of cash is being able to trade off some liquidity for higher returns.

… a high cash buffer allows you to better segment your investments in bond and credit holdings if you are not necessarily relying on either of these investments for liquidity.

Credit investments in particular will offer a higher return if you are happy to forgo liquidity, which could meaningfully add to the expected returns from your defensive component.

If you can capture a higher return from your defensive assets to compensate your declining growth assets, once again this will help mitigate sequencing risk causing damage to your portfolio.

‘Equity markets will have more good years than bad’

Smythe concludes:

In most cases, those long-term capital market returns should be satisfactory if the investment strategy is well-thought-out and you have a suitable plan to fund your cash flow needs in the “bad” years.

The post What can retirees do to soften the sting of falling ASX share prices on superannuation? appeared first on The Motley Fool Australia.

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• The Sayona Mining share price has dumped 24% since joining the ASX 200. What’s happening?
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Motley Fool contributor Bronwyn Allen has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 battery metals trade is showing no signs of exhaustion in the second quarter of FY23. The basket’s lead child, lithium, continues to set new all-time highs, which is helping to boost ASX shares in this space.

At the time of writing, lithium carbonate futures are priced at A$115,105.09 per tonne, their highest mark on record.

This continues an extensive period of upside for the key battery ingredient whereby prices have curled up from previous lows (if you’d even call it that) in May and surpassed previous highs in late September.

Meanwhile, nickel and cobalt – two other key battery metals – have consolidated heavily over the past six to nine months and now trade just above yearly lows.

All three are seen on the chart below from September 2021 to date.

What’s next for ASX shares in this segment?

Along with the upswing in long-term lithium pricing have come numerous new entrants in the lithium sphere.

Various companies now have exposure to lithium exploration and a handful to the processing and production of battery-grade product.

Several more are on the quest to do so. The point is, there are numerous ASX shares in the battery metals space that sit at selective points along the chain.

First are the miners, then those involved in the distribution and refining processes, and then the more tech-based players that are innovating in the space, to name a few.

Key lithium players Pilbara Minerals Ltd (ASX: PLS), Lake Resources NL (ASX: LKE) and Core Lithium Ltd (ASX: CXO) have been star performers on the ASX this year.

There are also those at the larger end of town, including IGO Ltd (ASX: IGO) and the large players involved in nickel and cobalt extraction, like Cobalt Blue Holdings Ltd (ASX: COB).

What do the brokers say?

Understanding the returns of this broad range of ASX shares gives unique insights into the performance of the industry.

How about looking ahead, though? According to Refinitiv Eikon data, sentiment across the sector looks to be bullish, with many of the names above tipped to continue upwards.

For the most part, the ASX shares above are each rated a buy, suggesting that analysts are still constructive on the battery metals segment – within this basket, at least.

Name	Buy / total	Consensus Price Target	From Current price
Pilbara Minerals Ltd	3 from 10	$3.93	-16.2%
Core Lithium Ltd	3 from3	$1.60	38.5%
Lake Resources NL	5 from 5	$2.43	149.2%
IGO Ltd	11 from 14	$14.12	-7.8%
Cobalt Blue Ltd	1 from 1	$1.10	59.4%

The share prices of the above group are tipped to grow at around 44% on average over the next 12 months. However, that’s a long time in the current economic climate.

Of particular note is Lake Resources, with tremendous upside yet to be priced in, brokers say.

In the meantime, time will tell on the next moves for ASX battery metals shares. Key to the debate is the price of lithium, which is showing no signs of slowing just yet.

The post What’s the outlook for ASX battery metals shares in Q2? appeared first on The Motley Fool Australia.

More reading

• If I’d invested $5,000 in these 5 ASX shares five years ago, here’s what I’d have now
• Why BrainChip, Emeco, Harvey Norman, and Pilbara Minerals shares are dropping
• Is Pilbara Minerals the most profitable ASX lithium share?
• 3 ASX All Ords shares smashing multi-year highs on Friday
• Could Rio Tinto be coming for your ASX lithium shares?

Motley Fool contributor Zach Bristow 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

It has been a terrible year for Netflix (NASDAQ: NFLX) investors. A sudden loss of paid subscribers has weighed heavily on the stock, which has lost more than 60% of its value so far in 2022. But the streaming giant could see a major turnaround in its fortunes sooner rather than later.

Netflix announced earlier this year that it plans to introduce an ad-supported subscription plan in addition to its existing tiers. The plan was expected to go live in 2023, but reports suggest that Netflix may have moved up the timeline to arrest its subscriber losses. It is hotly anticipated that the ad-supported tier could be launched as soon as Nov. 1.

Though the company is tight-lipped about the updated timeline, it reportedly expects 4.4 million subscribers on its ad-supported platform by the end of the year. However, JPMorgan analyst Doug Anmuth believes that this is just the beginning, and introducing an ad-supported tier could supercharge Netflix’s long-term revenue growth.

An ad-supported plan could be a game changer

Anmuth estimates that 7.5 million subscribers could opt for the ad-supported plan in the U.S. and Canada by 2023, helping Netflix generate $600 million in advertising revenue. While that would be a small portion of Netflix’s top line given that the company has generated $31 billion in revenue over the trailing 12 months, ad revenue is expected to jump substantially in the long run.

The JPMorgan analyst sees the ad-supported plan driving $2.65 billion in ad revenue by 2026 thanks to a solid subscriber base of 22 million. The global numbers are expected to be much higher. Netflix estimates that it could have 40 million ad-supported subscribers globally by the end of 2023, up sharply from its estimate of 4.4 million for 2022. Meanwhile, market research firm Omdia estimates that 60% of Netflix’s global subscriber base could be on an ad-supported tier by 2027.

The company could generate 14% of its global revenue through ad sales after five years, up significantly from just 1% in 2023. It remains to be seen how much revenue this new plan could bring in for the company in the long run, but it wouldn’t be surprising to see an ad-supported plan become a major growth driver for Netflix for two simple reasons.

Why this move could be a masterstroke

The first reason why an ad-supported plan could supercharge Netflix’s growth is that it could make the company’s plans more accessible. Reports suggest that Netflix could price the new plan between $7 and $9 per month. That could give customers a nice alternative to the company’s most popular plan, which costs $15.49 a month.

Netflix’s basic plan is priced at $9.99 per month, and the premium one goes for $19.99 a month in the U.S. But users are reportedly fatigued with the company’s regular price increases — as well as the surging inflation — and these factors could lead them to quit the platform. So the introduction of an ad-supported tier that undercuts Netflix’s basic plan could bring a sigh of relief to the company and help it arrest subscriber losses.

What’s more, the company will now be in a stronger position to compete against rivals with a more aggressive pricing strategy. That could give Netflix a better chance of restoring subscriber growth and bolstering its presence in the fast-growing video streaming market, which is expected to hit $139 billion in revenue by 2027, a substantial increase from this year’s estimate of $80 billion.

However, it is the second factor that I believe could be a bigger growth driver for Netflix. The company boasted nearly 221 million paid subscribers in the second quarter of 2022. The streaming platform also has high user engagement. In 2020, Netflix users were reportedly consuming 3.2 hours of video content per day, up from the pre-pandemic average of two hours.    

Assuming Netflix users’ average video consumption per day has declined to the pre-pandemic levels, given its massive user base, the company still provides a robust platform to engage digital advertisers. So Netflix could be about to enter a gigantic market, as video ad spending is expected to hit $180 billion this year. By 2027, annual spending on video ads could rise to $318 billion, which would be much higher than what the video streaming market is expected to generate.

As such, the digital ad market could unlock a whole new growth frontier for Netflix. Analysts are currently anticipating just 8.8% annual growth from the company over the next five years, but it could do much better than that as it has more than just the video streaming services market to tap into now. And with the stock trading at just 20 times trailing earnings now, compared to Netflix’s five-year average multiple of 104, investors can consider accumulating this tech stock today.  

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post Netflix stock could be on the verge of a massive turnaround appeared first on The Motley Fool Australia.

More reading

• 97 reasons to double down on Netflix stock
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• Following this streaming strategy could pay off big for Microsoft

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase and Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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The Sayona Mining Ltd (ASX: SYA) share price has been struggling since its S&P/ASX 200 Index (ASX: XJO) debut.

Sayona shares have lost 24% since market close on 16 September and are now fetching 23 cents. Today, Sayona shares closed flat.

So what’s going on with the Sayona Mining share price?

Sayona shares fall

Sayona officially joined the ASX 200 on September 19 following the S&P DJI quarterly rebalance.

The company’s shares exploded 200% between market close on 23 June and 12 September before pulling back.

But Sayona is not the only ASX lithium share that has struggled recently. 

For example, Core Lithium Ltd (ASX: CXO) shares have dived nearly 20% since market close on 16 September. Piedmont Lithium Inc (ASX: PLL) shares have lost 5% in the same time frame and Galan Lithium Ltd (ASX: GLN) shares have shed nearly 12%.

Sayona has delivered plenty of positive news to the market since joining the ASX 200.

On 4 October, Sayona announced it has launched a pre-feasibility study to produce lithium carbonate from the North American Lithium (NAL) project. Managing director Brett Lynch said the company is working towards “becoming a leading integrated producer and the largest in North America”.

Also, on 5 October, Sayona advised it had launched a pre-feasibility study into the Moblan Lithium Project in Quebec, Canada.

However, profit-taking after recent gains and sector weakness may have impacted the Sayona share price recently, as my Foolish colleague James noted.

Looking ahead, a Resources and Energy September quarterly report is predicting both lithium hydroxide and spodumene prices to rise in 2023 before pulling back in 2024.

Sayona share price snapshot

The Sayona share price has soared 42% in the past year, while it has surged 69% year to date.

For perspective, the ASX 200 has lost 7.5% in the past year.

Sayona has a market capitalisation of more than $1.8 billion based on the current share price.

The post The Sayona Mining share price has dumped 24% since joining the ASX 200. What’s happening? appeared first on The Motley Fool Australia.

More reading

• Can ASX 200 lithium shares bank on the price of lithium to keep soaring?
• During a dismal quarter for the ASX 200, Sayona Mining shares stormed 60% higher. What’s next?
• The Sayona Mining share price crashed 20% in September, but now…
• Good times keep rolling for ASX lithium shares on Thursday
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Monica O’Shea 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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