The BetaShares Nasdaq 100 ETF (ASX: NDQ) has had a shocking year in 2022, as has the index it mirrors.

The exchange traded fund (ETF) has dumped 26% year to date while the NASDAQ-100 Index (NASDAQ: NDX) has tumbled 29%.

But such poor performance didn’t appear to deter the market’s youngest investors.

New data from share trading and superannuation platform Superhero shows the BetaShares Nasdaq 100 ETF has been the most traded ASX share among both Gen Z and Millennial investors using the platform in 2022.

Gen Zs went one step further, however. The market’s youngest investors doubled down on ETFs in general.

So, what drove younger investors to flock to the BetaShares Nasdaq 100 ETF and its fellow ETFs this year? Let’s take a look.

Gen Z doubles down on BetaShares Nasdaq 100 ETF

Market volatility didn’t turn Superhero users away from investing on the ASX in 2022. In fact, confidence in ETFs appeared to rise amid a rollercoaster year on the bourse.

The platform reveals 83% of ETF trades it received this year were buys. That’s compared to around 70% of all trades. Superhero co-founder and CEO John Winters commented on the phenomenon:

Given the volatility in the market this year, it’s unsurprising to see our investors, particularly younger investors, look to ETFs as a way to build their portfolios.

Half of all Superhero users aged between 18 and 32 traded in ETFs in 2022.

Of course, BetaShares Nasdaq 100 ETF was Gen Z’s favourite stock, according to the platform.

The youngest group of investors were also found to flock to the Vanguard Australian Shares Index ETF (ASX: VAS) and the Vanguard Diversified Balanced Index ETF (ASX: VDBA) – the funds came in as the second and third most popular trades among those aged 18 to 25. Winters continued:

Overall, we’ve seen more buy trades over sell trades and for ETFs, four in five trades made by Gen Zs and Millennials were buys, indicating a long-term strategy to consistently build their portfolios.

Are ETFs like NDQ the future of ASX investing?

So, are ETFs like the Betashares Nasdaq 100 ETF the future of Aussie investing? Their popularity has certainly increased this year.

New research by fund manager BetaShares has revealed 1.9 million Australians are now invested in ETFs – a 6% year-on-year increase.

The industry leader expects that figure to rise by around 230,000 in 2023 following this year’s trend away from unlisted managed funds.

BetaShares CEO Alex Vynokur commented on the findings:

The key benefits of ETFs – namely convenience, liquidity, transparency, and cost-effectiveness – continue to resonate as more investors allocate greater amounts of their portfolios to ETFs than ever before.

Remarkably, 32% of Australians invested in ETFs use the investment vehicles as the core of their portfolio. That’s up from 4% in 2019, according to the fund manager. Vynokur continued:

This research is backed by our own experience where we have seen continued interest in core-oriented market exposures like our BetaShares Australia 200 ETF (ASX: A200) and Nasdaq-100 ETF.

The post New kids on the ASX block: Why did Gen Z flock to the BetaShares Nasdaq ETF (NDQ) in 2022? appeared first on The Motley Fool Australia.

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More reading

• Down 27% this year, is the Betashares Nasdaq 100 ETF (NDQ) a buy before 2023?
• Why is the BetaShares NASDAQ 100 ETF (NDQ) having such a stellar run today?
• 3 fantastic ETFs for ASX investors to buy in December
• 3 ASX shares to buy for the end-of-year tech comeback: expert
• 3 top ETFs for ASX investors to buy and hold for a decade

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 BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Nasdaq 100 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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The Pilbara Minerals Ltd (ASX: PLS) share price is having a tough time on Thursday.

In morning trade, the lithium miner’s shares are down over 6% to $4.25.

Why is the Pilbara Minerals share price falling?

There have been a few catalysts for the weakness in the Pilbara Minerals share price this morning.

The first is overall market weakness after the US Federal Reserve lifted interest rates by 0.5% overnight. In addition, the central bank’s closely followed “dot-plot” revealed that it expects rates to peak at 5.1%, which was higher than the market was expecting.

This appears to have put pressure on richly valued growth stocks today.

Another reason is a broker note out of Morgans, which has suggested that the Pilbara Minerals share price may have peaked. You can read about that here.

Finally, the release of the results from the company’s latest battery material exchange (BMX) lithium auction this morning could be putting a spot of pressure on its shares.

BMX results

Although Pilbara Minerals continues to command a strong price for its lithium, it is lower than what it recorded a month earlier.

According to the release, the company has sold two cargoes for a combined total of 10,000 dry metric tonnes (dmt) at an average price of US$7,552/dmt (SC5.5, FOB Port Hedland basis). This is down 3.2% from US$7,805/dmt last month.

And while this is only a modest softening, it may have sparked fears that Goldman Sachs could be on the money with its forecast for lithium prices to crash over the next 12-18 months.

In case you missed it, Goldman has suggested that spodumene 6% could fall to an average of US$800 a tonne in 2024. That’s a long way from the US$7,552 a tonne Pilbara Minerals is receiving for its 5.5% grade spodumene.

The post Why is the Pilbara Minerals share price sinking 6% today? appeared first on The Motley Fool Australia.

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More reading

• Has Core dethroned Pilbara as the most talked-about ASX lithium share of the moment?
• ‘Not enough upside’ for Pilbara Minerals share price: Morgans
• 5 things to watch on the ASX 200 on Thursday
• Lithium, miners, and tech shares, oh my! Here’s where Aussies put their ASX money in 2022
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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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Investors were busy last month, with S&P/ASX 200 Index (ASX: XJO) energy shares being a key focus in November.

Sharesies is an online broker platform, and each month it produces a report detailing the most popular picks.

Of course, this is just the data from one broker, so readers should keep that in mind.

From the report, we learned that there was twice as much buying volume as selling volume. For Sharesies, this has been consistent for the last six months.

It also noted that an increase in the strength of the Australian dollar, relative to the United States dollar, “may have been a driver behind and uptick in US investments buying relative to other markets”.

November’s most purchased by value

According to Sharesies, there were two ASX lithium shares and two ASX coal shares in the top five most bought, by value.

The most popular investment was Sayona Mining Ltd (ASX: SYA).

In second place was New Hope Corporation Limited (ASX: NHC).

The fourth most popular investment was Core Lithium Ltd (ASX: CXO).

In fifth place was Whitehaven Coal Ltd (ASX: WHC).

To complete the list, in third place was property business Charter Hall Group (ASX: CHC).

With energy being a key theme in 2022, perhaps it’s unsurprising that old and new ASX 200 energy shares are getting investor attention going into the end of the year.

What’s going on with these ASX energy shares?

Firstly we’ll look at what’s going on with the ASX coal shares.

After Russian invaded Ukraine, there were a number of knock-on effects. One was a rise in energy prices as some countries looked to find alternative sources of energy.

This sent the coal price soaring, and while it’s not at a 52-week high, it’s still very high. And this means both New Hope and Whitehaven are generating large profits.

With profits jumping higher, both companies are paying much larger dividends. They also launched share buybacks, aimed at boosting shareholder returns.

For the ASX lithium shares, they are making operational progress amid strong demand for lithium.

Sayona Mining said in its update that the restart of the company’s North American Lithium (NAL) operation is getting closer, as 98% of procurement activities are now complete and permitting activities are 96% finished. Operations are on track to be restarted in the first quarter of 2023.

For Core Lithium, it held its annual general meeting (AGM) last month. The business has started transporting ‘spodumene direct shopping ore’ (DSO) product from its Finniss lithium mine near Darwin in the Northern Territory. Crushing of the lithium ore commenced on 9 November 2022 and loading onto a ship at Darwin Port was expected to start at the end of November.

It will be interesting to see if December is another solid month of interest for ASX 200 energy shares.

The post Here are the old and new energy ASX 200 shares that investors were buying last month appeared first on The Motley Fool Australia.

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More reading

• Has Core dethroned Pilbara as the most talked-about ASX lithium share of the moment?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why are ASX 200 investors so obsessed with Core Lithium shares right now?
• Lithium, miners, and tech shares, oh my! Here’s where Aussies put their ASX money in 2022
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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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Core Lithium Ltd (ASX: CXO) shares have been the talk of the town in 2022. Does that mean the lithium hopeful has unseated industry giant Pilbara Minerals Ltd (ASX: PLS) as the hottest stock

Core Lithium certainly out-traded Pilbara Minerals on investing platform Superhero this year.

New data reveals the former was Australia’s most traded ASX share between 1 January and 30 November, with the latter coming in second place.

The Core Lithium share price has also outperformed its S&P/ASX 200 Index (ASX: XJO) peer, gaining 84% year to date. It’s trading at $1.16 right now.

Meanwhile, the Pilbara Minerals share price has risen 29% in 2022 to reach $4.55 today.

But is it really that simple to usurp the market’s most popular lithium share? Let’s take a look.

Is Core Lithium ASX’s hottest lithium share right now?

Core Lithium shares have outperformed Pilbara Minerals shares in 2022. They’ve also been subject to more trading on Superhero.

Additionally, the last five sessions have seen an average of around 49 million Core Lithium shares swap hands across the entire market. That same period has seen an average of nearly 35 million Pilbara Minerals shares trade each day.

While that might initially appear to the point that Core Lithium’s the favourite, it’s worth noting the Pilbara Minerals share price is nearly four times higher than that of its smaller peer.

Thus, more cash has recently been traded for Pilbara Minerals shares than for Core Lithium stock.

Apples and oranges?

It’s also worth looking at the vast differences between the companies. Aside from being Aussie lithium companies, the pair have little in common.

It was recently announced that Pilbara Minerals, with its $13.6 billion market capitalisation, will be admitted to the S&P/ASX 50 Index (ASX: XFL) next week.

Core Lithium, meanwhile, boasts a $2.1 billion valuation and was added to the ASX 200 in June.

Pilbara Minerals has also reached profitability and has flagged its first dividend, while Core Lithium’s flagship Finniss Project’s maiden spodumene concentrate shipment is expected in the new year.

So, has the up-and-coming producer unseated Pilbara Minerals as the most talked about ASX 200 lithium share of the moment? The smaller company’s popularity has certainly taken off in 2022 but it’s arguable as to whether it can be crowned the market’s hottest lithium stock.

The post Has Core dethroned Pilbara as the most talked-about ASX lithium share of the moment? appeared first on The Motley Fool Australia.

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More reading

• Here are the old and new energy ASX 200 shares that investors were buying last month
• ‘Not enough upside’ for Pilbara Minerals share price: Morgans
• 5 things to watch on the ASX 200 on Thursday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why are ASX 200 investors so obsessed with Core Lithium shares right now?

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

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It is a good day to be an Australia and New Zealand Banking Group Ltd (ASX: ANZ) shareholder.

That’s because today is the day that the banking giant will be rewarding them with its latest dividend payment.

The ANZ dividend

At the end of October, the big four bank released its results for the 12 months ended 30 September.

ANZ was on form in FY 2022 and reported a 16% increase in statutory profit after tax to $7,119 million and a 5% lift in cash profit from continuing operations to $6,515 million.

A key driver of its profit growth was an improvement in its net interest margin (NIM) thanks to rising rates.

In light of this profit growth, the ANZ board declared a fully franked final dividend of 74 cents per share, bringing its full year dividend to 146 cents per share. This was up from 142 cents per share in FY 2021.

Today is payday for that 74 cents per share final dividend, which equates to a very attractive 3.1% yield based on the current ANZ share price.

Should you buy shares?

The team at Citi is positive on the bank and currently has a buy rating and $29.25 price target on its shares. This implies potential upside of almost 22% for investors over the next 12 months.

In addition, the broker is expecting the ANZ board to lift its dividend by almost 14% to $1.66 per share in FY 2023. This equates to a mouth-watering 6.9% dividend yield at current prices.

Citi commented:

[FY 2022’s] exit NIM of 1.80% is likely to drive material consensus revenue upgrades, and we think the street upgrades core earnings. We retain our Buy call, with core earnings momentum and benign asset quality.

The post The ANZ dividend is being delivered today. Here’s what you need to know appeared first on The Motley Fool Australia.

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More reading

• Why is the ANZ share price marching higher on Tuesday?
• Could this help ANZ close the gap on its ASX 200 competitors?
• Could the VAS ETF outperform the BHP share price in 2023?
• I’d buy 6 shares a week of this ASX stock for $1800 a year in passive income
• Here’s how I’d invest $20,000 in ASX 200 shares for a 7% dividend yield

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 fund manager Wilson Asset Management (WAM) has recently identified its preferred ASX iron ore pick: BHP Group Ltd (ASX: BHP) shares.

WAM operates several listed investment companies (LICs). Two of these LICs are 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. These are often referred to as ASX blue-chip shares.

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

The WAM Leaders portfolio has delivered gross returns (before fees, expenses, and taxes) of 15% per annum since its inception in May 2016. This compares to the S&P/ASX 200 Accumulation Index (ASX: XAOA) average return of 8.1% over the same time.

WAM outlined why it likes BHP shares at the moment.

Rising iron ore price

A key factor influencing BHP is how the prices of commodities perform. The iron ore ASX share rose in November amid a 25% increase in the iron ore price over the month.

WAM attributed the higher valuation of the business to “positive news from China as well as the weakening US dollar”.

The fund manager noted that Chinese authorities had changed their tactic to implement quick lockdowns when cases surge and “relax restrictions rapidly when spread of the virus slows”.

It was also pointed out that China is accelerating the rollout of vaccinations for the elderly in the coming months, before “further reopening the economy early next year”.

Wilson Asset Management also noted that the Chinese government announced 1.88 trillion yuan of funding for property developers to be used by homebuilders to complete and deliver pre-sold housing units.

In positive comments about China, WAM said:

Overall, the Chinese economy appears to have turned a corner and is now stabilising which we expect will continue to support iron ore prices over the coming months.

Why BHP shares?

While other ASX iron ore shares have also risen in recent weeks, such as Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Ltd (ASX: RIO), WAM’s investment team said there were a few key reasons why BHP is the pick of the ASX iron ore shares.

Firstly, WAM likes the “cost” performance of the business. The scale of the company, and technology and systems it utilises, gives it a strong ability to achieve low operating costs.

Next, the fund manager pointed to its copper exposure. BHP is looking to grow its copper operations with the proposed proposed acquisition of OZ Minerals Limited (ASX: OZL).

The investment team believes that BHP has a “strong” balance sheet and also likes its growth outlook.

BHP shares are one of the biggest positions in the WAM Leaders portfolio.

The post Here’s why BHP shares are this fund manager’s favourite ASX iron ore pick appeared first on The Motley Fool Australia.

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More reading

• Lithium, miners, and tech shares, oh my! Here’s where Aussies put their ASX money in 2022
• BHP shares: 2 reasons to buy, and 2 to sell
• Why did the BHP share price get hammered on Tuesday?
• 2 ASX 200 dividend heavyweights to buy and hold until you retire
• Why is the Fortescue share price tanking on Tuesday?

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group. 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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Are you looking for dividends to boost your income? If you are, then you may want to check out the two ASX 200 dividend shares listed below that brokers have named as buys.

Here’s why analysts rate them highly right now:

Suncorp Group Ltd (ASX: SUN)

The first ASX 200 dividend share that has been named as a buy is Suncorp. It is one of Australia’s leading insurance and banking companies and name behind a range of brands including AAMI, Apia, Bingle, GIO, Shannons, Suncorp, and Vero.

The team at Morgans is positive on the company due to its efficiency program and strong underlying business trends. In respect to the former, the broker expects Suncorp to “reap the full benefits of its efficiency program in FY23.”

At present, the broker is expecting this to lead to fully franked dividends per share of 77.5 cents in FY 2023 and 80 cents in FY 2024. Based on the current Suncorp share price of $11.89, this will mean yields of 6.5% and 6.7%, respectively.

Morgans currently has an add rating and $13.98 price target on its shares.

Woolworths Limited (ASX: WOW)

Another ASX 200 dividend share that has been named as a buy is Woolworths.

Goldman Sachs is a fan of the retail giant due to its strong market position and digital leadership. The broker expects this to support further market share and margin gains.

In addition, its analysts were supportive of Woolworths’ decision to partially sell down its Endeavour Group Ltd (ASX: EDV) stake this week to raise investment funds. Particularly given speculation that it will use the funds to increase its exposure to the growing pet care market.

For now, Goldman is forecasting fully franked dividends of $1.02 per share in FY 2023 and $1.13 per share in FY 2024. Based on the current Woolworths share price of $34.29, this will mean yields of 3% and 3.3%, respectively.

Goldman has a conviction buy rating and $41.70 price target on the company’s shares.

The post Brokers say these ASX 200 shares are buys for income investors appeared first on The Motley Fool Australia.

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More reading

• Bell Potter says these are some of the best ASX shares to buy for 2023
• Why is the Endeavour share price sinking today?
• Woolworths share price higher on Endeavour selldown: What’s going on?
• 5 things to watch on the ASX 200 on Wednesday
• Why is the ANZ share price marching higher on Tuesday?

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 team at Bell Potter has been busy picking out its favoured ASX share picks for 2023.

I covered the first three here earlier this week. Now let’s look what else the broker rates highly for the year ahead:

CSL Limited (ASX: CSL)

Bell Potter is feeling positive about this biotherapeutics company thanks to growing plasma volumes. In addition, it notes that its Vifor Pharma acquisition has added global leadership in renal disease and iron deficiency. The broker commented:

The recently completed acquisition of Vifor Pharma will add global leadership in pharmaceutical products for renal disease and iron deficiency. The global growth in plasma volumes is expected to be around a solid 8% per annum for the foreseeable future and, in addition, the group is planning to launch new products from its very extensive Research and Development portfolio.

South32 Ltd (ASX: S32)

In the resources sector, Bell Potter has picked out this mining giant as a favoured stock for 2023. Its analysts like the diversified miner due to its increasing exposure to the decarbonisation megatrend and its base metal operations in North America. It said:

The next phase of growth is expected to come from the world class base metal development options in North America. In addition, the management team has plans to markedly increase the group’s involvement in minerals, which are critical to a low carbon future, such as copper, nickel, zinc, aluminium, and manganese.

Woolworths Group Ltd (ASX: WOW)

Finally, the broker has named this retail giant as a top pick for 2023. This is due to its belief that Woolworths is better positioned than many other retailers in the current economic environment. It explained:

In the current environment of rising cost of living pressures, supermarkets are much better placed than discretionary retailers and, in the longer term, the group should benefit from a persistence in working from home habits and the accompanying elevated at home food consumption.

The post Bell Potter says these are some of the best ASX shares to buy for 2023 appeared first on The Motley Fool Australia.

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More reading

• Here’s why the South32 share price is shooting north today
• Stock market millionaire: I’d put $500 a month into the ASX 200 to aim for 7 figures
• Why is the Endeavour share price sinking today?
• Woolworths share price higher on Endeavour selldown: What’s going on?
• 5 things to watch on the ASX 200 on Wednesday

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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 Pilbara Minerals Ltd (ASX: PLS) share price has been a very strong performer over the last 12 months.

As you can see below, since this time last year, the lithium miner’s shares have risen almost 70%.

This compares very favourably to the performance of ASX 200 index, which is down 1% over the same period.

Where next for the Pilbara Minerals share price?

Unfortunately, the team at Morgans appears to believe that the Pilbara Minerals share price is close to peaking.

According to a note, the broker has initiated coverage on the company with a hold rating and $4.70 price target.

Based on the current Pilbara Minerals share price of $4.55, this implies modest upside of 3.2% for investors.

What did the broker say?

Morgans believes that the aforementioned strong gains that have been recorded over the last 12 months has left the company’s shares trading at a level that doesn’t provide a sufficient risk/reward. Particularly given the volatility of the sector. The broker said:

We initiate coverage with a HOLD rating. We see some upside but not enough to outweigh the volatility of the sector.

In addition, its analysts appear to agree with Goldman Sachs’ view that lithium prices could pullback in FY 2024. This is due to increasing production and a number of macroeconomic risks. The broker explained:

Our view is that lithium prices can remain strong into CY23 as the company pursues volume growth but the risk of a commodity pullback will grow in FY24.

We note there are short and medium term issues that could interrupt the incredibly strong growth period the sector has seen, particularly in the last 12 months. Chinese EV sales typically have a seasonal low between December and February reducing lithium demand. A significant volume of committed supply growth is coming in CY23 while macroeconomic risks are growing.

The post ‘Not enough upside’ for Pilbara Minerals share price: Morgans appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Lithium, miners, and tech shares, oh my! Here’s where Aussies put their ASX money in 2022
• Here are the 3 most heavily traded ASX 200 shares on Tuesday
• How big will the Pilbara Minerals dividend be in 2023?
• Here are the 3 most heavily traded ASX 200 shares on Monday

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 S&P/ASX 200 Index (ASX: XJO) is full of interesting ASX shares. Indeed, there are a few that look particularly good value after seeing some volatility this year. I don’t think they’re value traps either; instead, they could be great value ASX 200 shares.

Businesses that are among the best at what they do have a compelling opportunity to improve their market positions during this period of rising interest rates and high inflation.

No one can truly know what’s going to happen next, but I think businesses with low price/earnings (P/E) ratios and promising long-term outlooks could do well. So, here are three of my ideas for ones that have low valuations.

Bank of Queensland Limited (ASX: BOQ)

BOQ is one of the largest challenger banks in Australia. But, the BOQ share price is down 7% since the surprise announcement the regional bank’s CEO was leaving. BOQ is also focused on strengthening the bank heading into a more challenging economic cycle, which could be prudent.

The bank is working on improving its operations and undertaking a technology transformation.

Using the estimates from the broker Ord Minnett, the regional bank is priced at under 10 times FY23’s estimated earnings and it could pay a grossed-up dividend yield of 10.3%.

I think the dividend income alone could provide a market-beating return in 2023. Higher interest rates could also be a boost for earnings.

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel Management is one of the largest operators in its sector, particularly after its acquisition activity during COVID-19. When travel activity gets back to full volume, it’s expecting to be much bigger – around 75% — than it was pre-COVID.

The business is winning more clients, which is boosting its market share, while having a customer retention rate of more than 97%.

According to the company, the industry is seeing issues being resolved week by week as the global network of travel rebuilds after the pandemic.

As airlines like Qantas Airways Limited (ASX: QAN) bring more capacity, this should also help the corporate travel space recover.

According to the broker Macquarie, the Corporate Travel Management share price is valued at 15 times FY24’s estimated earnings, with a potential FY24 grossed-up dividend yield of 2.8%. This valuation comes after a 15% drop in the Corporate Travel Management share price over the last month.

JB Hi-Fi Limited (ASX: JBH)

JB Hi-Fi is one of the best retailers in Australia and New Zealand in my opinion. Despite large amounts of physical store and online competition, the ASX 200 value share has managed to perform very well over the last five years, even with players like Amazon trying to muscle in.

The business points to four competitive advantages that are helping it succeed: scale, a low-cost operating model, its multichannel capability, and its people and culture.

For customers, it offers the “best brands, [a] big range, low prices”.

Its JB Hi-Fi stores are aimed at a young, tech-savvy demographic while The Good Guys stores are focused on home-making families.

FY23 has started strongly, with JB Hi-Fi Australia sales in the first quarter up 14.6% year over year and The Good Guys sales up 12.3%.

According to the broker Credit Suisse, the JB Hi-Fi share price is priced at 11 times FY23’s estimated earnings with a potential grossed-up dividend yield of 8.6%. The JB Hi-Fi share price is down 20% since 30 March 2022.

The post 3 ASX 200 value shares I think could soar in 2023 appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why this one top fund manager is optimistic about 2023, and one little-known IPO that has hit it out of the park
• Top brokers name 3 ASX shares to buy next week
• Could the VAS ETF outperform the BHP share price in 2023?
• 3 top ASX 200 dividend shares I think are bargain buys right now

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 Amazon.com. The Motley Fool Australia has recommended Amazon.com, Corporate Travel Management, Jb Hi-Fi, and Macquarie 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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