The A2 Milk Company Ltd (ASX: A2M) share price is on the move on Monday morning.

At the time of writing, the infant formula company’s shares are up 3% to $5.56.

Why is the A2 Milk share price rising?

Investors have been bidding the A2 Milk share price higher this morning following the release of an update on the company’s Chinese operations.

According to the release, the company has renewed its exclusive import and distribution arrangements with China State Farm Agribusiness Holding Shanghai (CSFA) for a term of five years from 1 October 2022.

CSFA has been A2 Milk’s strategic distribution partner in China since 2013 and is the exclusive import agent for its China label products.

The release also notes that CSFA is a wholly owned subsidiary of China National Agriculture Development Group Co (CNADC), which is the parent company of China Animal Husbandry Group (CAHG). The latter holds a 25% interest alongside A2 Milk’s 75% interest in Mataura Valley Milk (MVM) located in New Zealand.

Management commentary

A2 Milk’s managing director and CEO, David Bortolussi, commented:

We are pleased that our long-standing arrangements with China State Farm have been renewed for a term of five years through to the end of September 2027. The extension of arrangements with China State Farm confirms the strength of our relationship with key partners in China and our shared confidence in the future We are grateful for China State Farm’s ongoing support and our relationship with CNADC group which will be critical to our joint success in China going forward.

This sentiment was echoed by the chairman of CSFA, Mr Zhang Lei. He said:

The a2 Milk Company has been an important strategic partner of ours for many years. We are delighted and honoured to continue our relationship and partnership with a Company that has achieved such unique success, as the pioneer of A2 protein products in the China market, with a strong brand and ultra-premium products. This renewal signals the strength of our long-term partnership and we look forward to the future with great excitement.

The post Here’s why the A2 Milk share price is storming higher today appeared first on The Motley Fool Australia.

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• The A2 Milk share price has smashed the ASX 200 over the past month. What’s going on?
• Why this expert acquired a thirst for A2 Milk shares following the company’s latest results
• A2 Milk shares: Buy, hold, or fold?

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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The Sims Ltd (ASX: SGM) share price will be on watch tomorrow as the ASX 200 metals company turns ex-dividend.

Tomorrow, Sims will be taking away entitlements to its partially franked final dividend of 50 cents per share.

This means that today is the final day to lock in this dividend, which will be paid on 19 October.

Investors buying Sims shares tomorrow won’t score the latest dividend. But they’ll likely be able to pick up shares at a reduced price.

This is because a company’s shares usually fall on the day they turn ex-dividend as the value of the dividend leaves the share price.

While the extent of the drop is influenced by market sentiment, it’s usually in relative proportion to the size of the dividend.

Given that Sims’ final dividend equates to a yield of around 3.7%, the Sims share price will likely come under fire tomorrow as shares turn ex-dividend.

Did Sims crush it in FY22?

FY22 was a bumper year for Sims. Revenue jumped by 57% to $9.3 billion, driven by a combination of higher sales volumes and higher sales prices.

This strong growth flowed through to earnings as the company delivered its best underlying earnings before interest and tax (EBIT) results on record. Underlying EBIT nearly doubled to $756 million.

In terms of segment performance, North America Metal achieved the largest improvement in underlying EBIT, which surged by 114% to $293 million. This was driven by higher trading margins and higher volumes on the back of strong demand from domestic and export markets. Recent acquisitions also had a hand in the growth.

Commenting on the results, CEO and managing director, Alistair Field said:

I am proud that we delivered the strongest Underlying EBIT result on record and significant trading margin and volume increases. I am also pleased that return on productive assets grew by 16.0 ppts to 39.0%, and cash flow from operations increased by 323.3%, enabling us to lift our cash distribution to shareholders, while maintaining our balance sheet strength.

On the back of these results, Sim declared FY22 dividends of 91 cents per share, partially franked. This represents a mammoth 117% hike from the annual dividends of 42 cents declared in the prior year.

At current prices, Sims shares are spinning up a trailing dividend yield of 6.8%.

The company is also delivering further returns to shareholders through an on-market share buyback.

What’s the outlook for the Sims share price?

In response to Sims’ FY22 results, broker Goldman Sachs retained a neutral rating on Sims shares.

Goldman remains positive on the long-run demand trend for scrap metal. However, the broker is forecasting a ~50% drop in Sims’ EBIT in FY23 as global scrap prices head south and global steel demand weakens.

Goldman has a 12-month price target of $16.70 for Sims shares, which implies a potential upside of 20% from current levels.

The Sims share price last traded at $13.38. It’s tumbled by 38% over the past six months but zooming out over the past year, Sims shares have gained 6%.

In comparison, the S&P/ASX 200 Index (ASX: XJO) has backpedalled by 14% and 10% over the last six and 12 months, respectively.

The post This high-yielding ASX 200 share is trading ex-dividend tomorrow appeared first on The Motley Fool Australia.

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More reading

• 2 ASX dividend shares that have doubled their payouts in 5 years
• Will the Westpac share price rebound in October?
• Here are the 10 most shorted ASX shares
• Got $5,000? These 3 high-yielding ASX dividend shares still pay better than bonds
• These were the 5 best-performing ASX All Ords shares in September

Motley Fool contributor Cathryn Goh 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.

The stock market sell-off has compressed the valuations of good and bad businesses alike. All three major indexes — the S&P 500, the Dow Jones Industrial Average, and the Nasdaq Composite — are in a bear market. And while it may be tempting to go bottom fishing by scooping up shares of stocks that are down big off their highs, the safer and potentially more rewarding route is to simply stick with top companies that stand out from the competition.

Investors categorize stocks into buckets — like growth stocks versus value or dividend stocks. But no matter the size of the company or its industry, there’s one key trait that all top stocks share: consistency. Here’s why investing in consistent companies can be an excellent strategy for outlasting a prolonged bear market.   

Setting expectations

Consistency can take different forms depending on the company. But as a rule of thumb, consistent businesses are those that bridge the gap between expectations, financial goals, and real results.

As a recent example, FedEx‘s (NYSE: FDX) inability to forecast accurately caused the largest single-day percentage stock decline in company history. The shipping specialist’s upbeat tone and record guidance from late June proved to be way off base after it called for lower-than-expected first-half fiscal 2023 results and failed to provide full-year fiscal 2023 guidance.

FedEx has a track record of inconsistency that dates back to the peak of the U.S.-China trade war in 2018, when the company produced lower-than-expected results and routinely missed guidance. FedEx may be an inexpensive stock with a decent dividend yield. And it could even be a nice turnaround play. But it is far less consistent than its peer, United Parcel Service (NYSE: UPS).     

UPS has a better track record than FedEx of hitting its financial guidance, navigating challenges, and deploying capital efficiently without overspending. The package delivery industry is cyclical and capital-intensive. UPS and FedEx depend on a blend of business-to-business and business-to-consumer deliveries to domestic and international buyers. Both companies sport incredibly sophisticated supply chains, logistics, and distribution networks. Labor and fuel costs are high, making forecasting an essential quality of a good package delivery company. No one has a crystal ball. But being roughly right when it comes to accurately predicting buyer behavior separates an excellent package delivery company like UPS from an OK one like FedEx.

In sum, the main differentiating factor between these two companies isn’t their dividend yields, valuation, or even a year’s worth of revenue or earnings. Rather, it is the ability of UPS to better leverage its resources and capital to execute on goals and limit disappointing shareholders. 

Delivering on long-term targets

Another core trait of consistent companies is their ability to deliver on long-term targets. For some companies, that could simply mean growing the dividend and supporting it with free cash flow (FCF) or sustaining a high profit margin while growing the top line. For others, it could mean bringing a new product or service to market and increasing customer adoption and retention.

Apple (NASDAQ: AAPL) is an excellent example of a company that has delivered on its long-term targets. It wasn’t long ago that investors questioned the feasibility of Apple’s wearables, its penetration into wireless earbuds, its ability to continue generating growth from its phones and computers, and the establishment of its services segment. Apple has proven that it has arguably the strongest consumer electronic product ecosystem of any company in the world. Its ability to make new versions of its flagship products while also integrating new products and services into the ecosystem has led to sustained growth, high margins, efficient use of capital, and outsized profits.

Apple has shown that despite its size, it can still grow quickly and drive shareholder value through organic growth and boosting earnings per share through buybacks. The below chart says it all.

AAPL Shares Outstanding data by YCharts

In just five years, Apple has more than doubled its net income and reduced its outstanding share count by a staggering 21.6%. Apple’s ability to reinvest capital efficiently in its business and still have plenty of dry powder to buy back its own stock is a testament to the success it has had with hitting its long-term goals of product innovation and vertically integrating its business with both hardware and software. Companies a fraction of the size of Apple tend to have trouble growing profits at a faster rate than revenue. But Apple’s ability to drive profits at a faster rate than sales is an example of its pricing power and loyal customer base. 

Profiles in consistency

UPS and Apple are just two examples of the many consistent companies that are on sale now. Although they are in different industries and have little in common as companies, they are very similar investments. At the end of the day, long-term investing aims to find companies that can continue delivering growth over time.

For UPS, growth results in a larger dividend, the expansion of routes and services, and branching into new markets such as healthcare and automotive. 

In Apple’s case, growth results in share buybacks, product development, and expanding its ecosystem to retain existing customers, boost revenue per customer, and attract new customers into the ecosystem. 

By understanding what consistency looks like, an investor can put their hard-earned savings to work in quality companies no matter the industry. 

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

The post The no. 1 quality that top stocks share (and it’s not even close) appeared first on The Motley Fool Australia.

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Daniel Foelber 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 Apple and FedEx. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has recommended Apple. 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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Some ASX dividend shares haven’t grown their dividends over the last few years. But, a select few are now paying substantially more than they were five years ago.

Businesses that have been growing profits have the financial flexibility to pay shareholders larger payments.

While it’s hard to say what the next five years will look like, I think it could be interesting to look at some ASX dividend shares’ growth performance, their current yields, and what they’re expected to pay next.

Dicker Data Ltd (ASX: DDR)

Dicker Data describes itself as a technology hardware, software, cloud, cybersecurity, access control and surveillance distributor.

In FY22 so far it has paid 26 cents per share, which represents two of the expected four quarterly payments.

In the first half of FY17 it paid 8 cents per share, so HY22 represents an increase of 225%. Indeed, the FY22 half-year dividend is 55% more than the entire FY17 dividend.

At the current Dicker Data share price, the last four dividends from the ASX dividend share amount to 50 cents per share, equating to a grossed-up dividend yield of 7%.

The broker Morgan Stanley currently has an overweight (buy) rating on Dicker Data with a price target of $14. That suggests that the Dicker Data share price could go up by more than 30% over the next year.

In FY23, the broker expects Dicker Data to pay a grossed-up dividend yield of 5.7%.

Pinnacle Investment Management Group Ltd (ASX: PNI)

Pinnacle Investment Management is a business that invests in other asset managers and helps them grow by enabling them to focus on the investing side of things. Pinnacle can offer services like distribution and client services, middle office and fund administration, compliance, finance, legal and so on.

It is invested in fund managers like Plato, Solaris, Antipodes, Spheria, Firetrail, Metrics, Coolabah and Five V. Pinnacle tries to invest in some of the leading fund managers around.

In FY22, the ASX dividend share paid an annual dividend of 35 cents per share. In FY17 it paid an annual dividend of 7 cents per share. That means it has increased its dividend by 400% in that time.

At the current Pinnacle share price, it has a trailing grossed-up dividend yield of 6%.

The broker Macquarie currently rates Pinnacle as a buy, with a price target of $11.78. That’s a potential rise of around 40% over the next year.

In FY24, the broker is currently predicting Pinnacle could pay a grossed-up dividend yield of 7%.

The post 2 ASX dividend shares that have doubled their payouts in 5 years appeared first on The Motley Fool Australia.

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• Experts name 2 top ASX dividend shares to buy next week
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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 Dicker Data Limited and PINNACLE FPO. The Motley Fool Australia has positions in and has recommended Dicker Data Limited and PINNACLE FPO. The Motley Fool Australia has recommended Macquarie Group Limited. 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 Westpac Banking Corp (ASX: WBC) share price has been drifting lower in recent times – can things turn around for the ASX bank share?

It’s down close to 10% since mid-August and down 14% since early June.

But, that could seem strange considering the Reserve Bank of Australia (RBA) interest rate is going up. There has long been a thought that higher interest rates would lead to higher profitability for banks by boosting the net interest margin (NIM).

The NIM measures how much profit banks are making on their lending, by looking at the overall lending rate and the cost of funding its loans (from places like savings accounts).

However, bank investors don’t seem excited by the quickly-rising interest rate from the RBA. Australia’s central bank has been increasing the interest rate by 50 basis points per month over the last few months.

Why has the Westpac share price been going backwards?

The reason for the decline, aside from the general market declines, could be that the pace of interest increases surprised investors. Small increases would probably have been useful for the banks. But, these quicker increases could cause issues for the loan book because borrowers may run into financial issues if they can’t afford their much-higher repayments.

The FY22 half-year result was also mixed. Year over year, revenue was down 8% and cash earnings declined by 12%. It reported a return on equity (ROE) of 8.7%, down from 10.75% in FY19.

Westpac told investors that its net interest margin (NIM) was down as competition for lending and low interest rates impacted margins.

What could October bring?

I think Westpac’s share price will likely be influenced by the ongoing volatility of the market. The Friday trading of the US share market saw another sell-off. For example, the S&P 500 Index (SP: .INX) fell 1.5% on Friday.

This week, the RBA is expected to increase the interest rate again in October.

As reported by Finder, its RBA cash rate survey of 39 experts and economists pointed almost unanimously to another basis point increase, meaning that the cash rate will rise to 2.85% in October.

While the business doesn’t report its FY22 result this month, investors may be thinking about what it might say when it reports on 7 November 2022.

There could also be plenty more volatility in relation to energy markets, the Russian invasion of Ukraine and so on.

Will the Westpac share price rise from here?

Without a crystal ball, it’s hard to say.

However, the broker Citi seems very bullish on Westpac, with a price target of $30. That implies a possible rise of over 40% over the next 12 months. It’s expecting Westpac to earn much more profit in FY23, with a rise in the NIM.

If Westpac meets Citi’s projections, the Westpac share price is valued at under 9 times FY23’s estimated earnings with a possible grossed-up dividend yield of 11%.

Macquarie thinks banks will benefit from higher NIMs, but there could be trouble down the track with loan quality. It has a price target of just $22.25 on Westpac, putting the bank at under 12 times FY23’s estimated earnings.

The post Will the Westpac share price rebound in October? appeared first on The Motley Fool Australia.

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More reading

• Will the RBA raise rates again next week? Here’s what Westpac thinks
• The ANZ share price outperformed its ASX 200 bank share peers in September
• ASX 200 dividend shares suffer September sell-off
• Could Westpac shares be in for another massive buyback?
• Could rising rates send the Westpac share price soaring 27%?

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 recommended Macquarie Group Limited and Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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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) remains the most shorted share on the ASX after its short interest rose to 15.5%. Concerns over the travel market recovery saw Flight Centre’s shares sink to a 52-week low last week.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest ease slightly to 13.9%. This betting technology company’s shares appear to have been targeted due to their lofty valuation and its cash burn.
• Block Inc (ASX: SQ2) has seen its short interest rise slightly to 10.6%. Short sellers may be going after this payments company due to tech sector weakness, concerns over the prospects of a global recession, and regulatory pressure in the BNPL industry.
• Lake Resources N.L. (ASX: LKE) has short interest of 10.4%, which is up week on week. A short report from a renowned short seller reveals that it is targeting the company largely due to doubts over its DLE technology.
• Megaport Ltd (ASX: MP1) has seen its short interest rise to 9.8%. Valuation concerns and significant weakness in the tech sector are likely to be behind this short interest.
• Nanosonics Ltd (ASX: NAN) has short interest of 8.1%, which is up slightly week on week. Short sellers continue to target this infection prevention company amid concerns over its disruptive business model change in the key US market.
• Breville Group Ltd (ASX: BRG) has seen its short interest rise to 7.8%. This may be due to concerns over what the uncertain economic backdrop could mean for consumer spending.
• Inghams Group Ltd (ASX: ING) has short interest of 7.8%, which is down slightly week on week. Concerns over higher input costs may be behind this short interest.
• Zip Co Ltd (ASX: ZIP) has seen its short interest rebound slightly to 7.8%. Doubts over the company’s profitability targets have been weighing on sentiment this year.
• Perpetual Limited (ASX: PPT) has entered the top ten with short interest of 7.6%. This fund manager’s shares have dropped 36% in 2022. It appears as though short sellers see more pain ahead.

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

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• Why has the Lake Resources share price tumbled 17% in a week?
• Why Block, Nick Scali, Piedmont Lithium, and Premier Investments are sinking today
• Why is the Zip share price trailing the ASX 300 on Friday?

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 Betmakers Technology Group Ltd, Block, Inc., MEGAPORT FPO, Nanosonics Limited, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, and MEGAPORT FPO. 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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ASX dividend shares could be an interesting place to look for income. Yields on bonds are increasing as interest rates rise. But, dividend yields on ASX dividend shares are also going up.

As share prices go down, it pushes the prospective dividend yield up as well as making the actual valuation more attractive.

Looking at an example of bond yields, the exchange-traded fund (ETF) Vanguard Australian Government Bond Index ETF (ASX: VGB), Vanguard says that the running yield here is 2.89% and the yield to maturity is 3.66%.

I’m going to list a few ASX dividend shares that could provide better income than bonds for investors wanting to invest $5,000.

APA Group (ASX: APA)

This business owns a national gas pipeline, it transports around half of the country’s natural gas usage. It also has various energy generation (gas and renewable) and storage assets.

The yield has been pushed up by APA shares falling by around 20% since early August. It’s expecting to pay a distribution of 55 cents per security, which would be a 3.8% increase compared to FY22. The FY23 distribution yield is expected to be 5.75%.

APA Group has recently committed to reducing its emissions by 30% in gas transmission, reducing emissions intensity by 35% in power generation, and implementing an active program to reduce emissions it can control in electricity transmission.

The business has one of the longest-running consecutive annual dividend increases in the S&P/ASX 200 Index (ASX: XJO).

Collins Foods Ltd (ASX: CKF)

Collins Foods is a major franchisee of KFC outlets across Australia and Europe. It also has a growing Taco Bell network in Australia.

The business has continued to grow its revenue and profit. FY22 revenue increased 11.1% to $1.18 billion, while underlying net profit after tax (NPAT) from continuing operations improved by 25% to $59.7 million.

The ASX dividend share saw its dividend rise by 17.4% to 27 cents per share. At the current Collins Foods share price, it has a trailing grossed-up dividend yield of 4.4%.

It continued to see sales growth in the first seven weeks of FY23, particularly in Europe. KFC Netherlands has seen same-store sales growth of 12.2% and KFC Germany with 19.4% sales growth. It’s planning to open nine to 12 KFC Australia restaurants, two to five KFC Europe restaurants and nine to 12 Taco Bell restaurants. It wants Taco Bell to reach scale within three years.

The broker Morgans, which rates Collins Foods as an add with a price target of $11.50, thinks that Collins Foods will pay a grossed-up dividend yield of 4.6%.

Accent Group Ltd (ASX: AX1)

Accent is an ASX retail share that sells a variety of shoe brands, both owned brands and ones it acts as a distributor for. Examples of the brands include CAT, Dr Martens, Glue Store, Henleys, Hoka, Hype, Kappa, Nude Lucy, Sneaker Lab, Stylerunner, The Athlete’s Foot and Vans.

While it suffered from store closures due to COVID restrictions in FY22, it can benefit from a full year of ‘normal’ trading days in FY23. That may explain some of the 48.9% sales growth that it saw in the first seven weeks of FY23. Its gross profit margin was also “well ahead” of FY22. The business is also hoping to open 50 stores in FY23.

Morgans rates this one as an add as well, with a price target of $2. It thinks the business could pay a grossed-up dividend yield of 10%.

The post Got $5,000? These 3 high-yielding ASX dividend shares still pay better than bonds appeared first on The Motley Fool Australia.

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More reading

• Why is everyone talking about pricing power and which ASX shares have it?
• ‘Deep value’: 2 ASX shares this expert will pounce on this dip
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• 2 ASX dividend shares with yields over 6% right now

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 Collins Foods Limited. The Motley Fool Australia has positions in and has recommended APA Group. The Motley Fool Australia has recommended Accent Group and Collins Foods Limited. 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 S&P/ASX All Ordinaries Index (ASX: XAO) had another treacherous month in September as concerns of rising inflation and interest rates continued to rattle the market.

The ASX All Ords index shed 7.6% across the month to close out September at 6,679 points.

But amongst the sea of red were some standout performers. Let’s check them out.

AMA Group Ltd (ASX: AMA)

Topping the ASX All Ords tables in September was smash repairer AMA Group, which clocked in a 43.8% gain across the month.

Prior to this, 2022 hadn’t been kind to the AMA share price but the company’s FY22 results, which were delivered in late August, may have turned the tide.

Last week, AMA also announced it will be divesting its FluidDrive business for $2.45 million in order to sharpen its focus on the core business.

CogState Limited (ASX: CGS)

Taking out the silver medal is neuroscience technology company CogState, which soared 34.2% in September.

There wasn’t any direct news from CogState during the month. But it appears an announcement from one of its partners, Eisai, sent the market into overdrive. 

Eisai revealed that its experimental drug for the treatment of Alzheimer’s disease has helped slow cognitive and functional decline in patients in the early stages of the illness.

While CogState won’t directly benefit from this, it noted that these results could “lead to a general increase in research and development expenditure in respect of Alzheimer’s disease, which may provide additional sales opportunities.”

New Hope Corporation Limited (ASX: NHC)

Rounding out the podium finishes is ASX coal miner New Hope. In fact, it led the way for the ASX 200 in September with a 28.4% rise.

The New Hope share price has been supported by sky-high coal prices as demand continues to outpace supply. 

New Hope also lifted the lid on a strong set of FY22 results last month. These results were headlined by a 12-fold increase in profits and a bumper dividend.

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price continued to set new all-time highs in September, lighting up with a 24.9% gain.

Pilbara shares have been on a tear this year as the hype for ASX lithium shares reaches fever pitch. 

During the month, Pilbara announced the results of the ninth auction on its battery material exchange (BMX) platform. The highest bid came in at US$6,988 per dry metric tonne (dmt), surpassing the winning bid of US$6,350/dmt in August.

Bullish broker notes from JP Morgan and Macquarie also boosted the Pilbara Minerals share price in September.

Argosy Minerals Limited (ASX: AGY)

Last but not least, not far behind Pilbara was fellow ASX lithium share Argosy Minerals, which punched in a monthly rise of 21.4%.

During the month, investors were given the opportunity to run the rule over Argosy’s first-half 2022 results, which saw net profit skyrocket 3,015% to $2.7 million.

Argosy also provided an update on drilling works at its Rincon Lithium Project, which are progressing better than scheduled.

The post These were the 5 best-performing ASX All Ords shares in September appeared first on The Motley Fool Australia.

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More reading

• These were the best performers on the ASX 200 in September
• Top ASX shares to buy in October 2022
• Here are the big ASX lithium share winners and losers on Friday
• If I’d invested $1,000 in Pilbara Minerals shares at the start of 2022, here’s what I’d have now
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Cathryn Goh 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 CogState Limited. The Motley Fool Australia has positions in and has recommended CogState Limited. 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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In a year when most ASX shares have lost value, mining stocks have been the lone light in the dark.

But even they have cooled off in the second half of 2022, due to concerns about recession around the globe. That’s because when economies slow down, commodity prices are the first to plunge.

So as we sit waiting for yet another interest hike on Tuesday, which are the ASX shares involved in the resources sector that are the best buys at the moment?

A panel of Wilson Asset Management analysts answered this question in a recent video:

‘Definitely a buy’ for early-stage miner

Equities dealer Will Thompson said that his team recently met with the management of Centaurus Metals Limited (ASX: CTM).

“It’s a really good company. We really like it,” he said.

“The ability to grow the resource… will then lead to financing discussions… and they’ll update the DFS [definitive feasibility study].”

With the share price down 36% since mid-April, Thompson reckons the valuation is attractive right now.

Centaurus acquired its current flagship project Jaguar from Brazilian giant Vale SA (BMF: VALE3) in 2020, and Thompson suspects that’s not the end of the story.

“They have some interesting relationships with Vale. You’ve got an offtake, and it’s still up for negotiation. At this stage [Centaurus] is definitely a buy.”

Gold miner ‘keeping costs down’

Thompson also rates Emerald Resources NL (ASX: EMR) as a buy.

He admitted gold stocks have been on the nose with the market in recent times.

“They’ve been able to keep their costs down — still keep producing at under $1,000 an ounce.”

Emerald has also acquired “a really interesting” new project named Bullseye.

“They’re also looking at developing a second mine in Cambodia,” said Thompson.

“So we think there’s some good valuation upside there. It’s a buy.”

The Emerald share price is down 4% so far this year, but has picked up more than 20% since a July trough.

Upside to 2023 guidance

Wilson senior equity analyst Shaun Weick likes the indirect resources exposure of NRW Holdings Limited (ASX: NWH).

“Mining services is back!” he said.

“FY 2022 results came in at slightly ahead of expectations and really reflects the worth of the COVID impact being behind these companies.”

In Weick’s view, the outlook for commodity demand remains strong.

“Order books are full, which provides good visibility. We see upside to the FY23 earnings guidance.”

In a tough year, the NRW share price is amazingly 29% higher than where it started in 2022.

Weick also feels the business is in a healthy state financially.

“The balance sheet is net cash, and valuation is screening compelling. We think it’s a buy.”

The post 3 small-cap ASX mining shares ripe for adding now: experts appeared first on The Motley Fool Australia.

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More reading

• 3 ASX All Ords shares going ex-dividend on Wednesday
• 3 ASX All Ords shares smashing new highs on Monday

Motley Fool contributor Tony Yoo has positions in NRW Holdings Limited. 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 year has been a rocky one for S&P/ASX 200 Index (ASX: XJO) consumer staples share Coles Group Ltd (ASX: COL).

At one point, the supermarket operator’s stock had gained 8% year to date. However, after dumping 4.6% on the release of its full-year earnings, it has plunged into the red.

Right now, the Coles share price is $16.43, 8.2% lower than it was at the start of 2022.

Though, that marks a better performance than the ASX 200. The index has slumped 14.7% year to date, while the S&P/ASX 200 Consumer Staples Index (ASX: XSJ) has dumped 9.6%.

Does the stock look set to continue outperforming then? Well, that depends on who you ask.

Could Coles shares really offer 22% upside?

The Coles share price could be gearing up to either rise or dive, with various brokers tipping it to head in different directions.

Batting for the bears is Goldman Sachs. The broker has hit Coles shares with a $15.60 price target and a sell rating – representing a potential 5% downside.

It believes the company “remains a laggard in digital transformation”, potentially leading to market share losses and further pressure on margins.

And the $300 million sale of its Coles Express business did nothing to quell the broker’s concerns, with Goldman Sachs saying the deal is immaterial.

Morgans, however, disagrees.

It thinks Coles will be able to focus more attention on its core business following the sale, which will result in greater balance sheet capacity, my Fool colleague James reports.

Meanwhile, Citi is said to believe the sale’s proceeds could help the company expand its supermarket network and continue its store renewal program.

The bullish brokers have both slapped Coles shares with buy ratings. Morgans has slapped the stock with $20 price target while Citi goes one better, tipping it to reach $20.10.

That suggests a potential upside of as much as 22%.

The post Coles shares: Buy, hold, or fold? appeared first on The Motley Fool Australia.

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More reading

• Here’s why Morgans is tipping 20%+ upside for the Coles share price
• What might the latest retail sales figures mean for ASX 200 consumer shares?
• The Coles dividend is hitting bank accounts today. Here’s what you need to know
• Broker names 2 ASX dividend shares to buy with ~7% yields
• Market volatility getting you down? Analysts name 2 defensive ASX 200 shares to buy

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. 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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