I like the idea of finding investment trends where businesses can benefit from a tailwind that pushes their earnings higher. In my opinion, exchange-traded funds (ETFs) give us the option to get exposure to compelling trends. One of the most interesting ones, in my view, is the VanEck Video Gaming and Esports ETF (ASX: ESPO).

As the name suggests, it’s focused on the video gaming and e-sports industry.

According to VanEck, the video game sector is now larger than both the movie and music industries combined. The top e-sports tournaments are reportedly drawing crowds that rival World Cup football and the Olympic Games. The decade of the 2010s saw “massive growth in viewership and big brand sponsorships”, VanEck says.

How fast is video gaming growing?

Newzoo data shows that video gaming has achieved 12% average annual revenue growth since 2015, while e-sports revenue has grown by an average of 28% per year since 2015.

VanEck also referred to research via Newzoo that the world’s 2.7 billion gamers will spend $200 billion by 2023.

E-sports has created new potential revenue streams for the businesses involved with video gaming such as game publisher fees, media rights, merchandise, ticket sales, and advertising.

What businesses are in the ETF’s portfolio?

Businesses that are in the portfolio need to generate a significant portion of their revenue from the video gaming and e-sports industry.

There are meant to be a total of 25 holdings in the VanEck Video Gaming and Esports ETF portfolio.

Readers may have heard of some of the largest holdings such as Tencent, Activision Blizzard, Nvidia, Advanced Micro Devices, Roblox, Nintendo, Netease, Bandai Namco, and Electronic Arts.

Many of the world’s most popular game titles are covered by the businesses I just mentioned.

The portfolio provides more geographic diversification than other typical ETFs based on a global portfolio. For example, the US represented 41.6% of the portfolio, Japan was 21.7% of the portfolio, China was 17.3%, Australia was 5%, Singapore was 3.5%, France was 3%, South Korea was 2.9%, Sweden was 2.3%, Taiwan was 1.8%, and Poland was 0.8%.

Annual management fee

The ETF has management costs of 0.55% per annum. While this isn’t as cheap as something like Vanguard MSCI Index International Shares ETF (ASX: VGS), there is more to the returns than just the fees.

So what are the returns?

Ultimately, we’re investing to make returns. Since listing, the VanEck Video Gaming and Esports ETF has had a rough time of it amid inflation and rising interest rates.

Since the start of 2022, the ETF has shed 32%. Taking a longer view, however, it has dropped 5.7% since listing to 31 August 2022.

But, this ETF actually tracks an index of gaming shares. The index has existed for more than five years, and has returned an average of 16.2% per annum. However, past performance is not a predictor of future results though.

The post This ETF could be compelling for gaining exposure to a $200 billion industry appeared first on The Motley Fool Australia.

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More reading

• 2 excellent ETFs for ASX investors to buy now
• 2 high quality ETFs for ASX investors in September
• 2 tech ETFs I think are smart buys in September
• Why I’d buy these 2 ASX ETFs right now
• 3 fantastic ETFs for ASX investors to buy today

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 Activision Blizzard, Advanced Micro Devices, Nvidia, Roblox Corporation, Tencent Holdings, and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Electronic Arts, NetEase, and Nintendo. The Motley Fool Australia has recommended Activision Blizzard, Nvidia, VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF, and Vanguard MSCI Index International Shares 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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There is much volatility on the ASX share market right now, as with markets around the world. I think this could prove to be a fine time to go hunting for cheap ASX share opportunities.

Indeed, one of the world’s best-performing and wisest investors Warren Buffett has offered his wisdom on times like these:

Be fearful when others are greedy, and greedy when others are fearful.

Certainly, it could be useful to think with a contrarian mindset. When investors sell off an entire sector or even the entire share market, it could be a sign of longer-term opportunity. It could also be a time to be greedy with sectors that are cyclical.

Retail businesses aren’t always going to have booming sales and profits. When a downturn is seemingly approaching, and share prices drop, it could be fruitful to find some cheap ASX shares that could see a turnaround in the medium term.

While share prices may see the bottom of their decline sooner rather than later, it could take a while for net profits to reach the bottom of their cycle. Share prices often move harder and earlier than companies’ financials.

Adairs Ltd (ASX: ADH)

Adairs is a retailer of homewares and furniture with brands like Adairs, Mocka, and Focus on Furniture.

How much pain are we talking about for the Adairs share price? The ASX share is down by 57% in 2022 at the time of writing. That’s a very large fall. It’s similar to the plunge seen during the worst of the COVID-19 crash in March 2020. However, I don’t think things look as dire now as they seemed then.

For one, shops are now open (with no lockdowns). People still need furniture, bedsheets, and so on. Adairs is still working on plans for growth including opening more stores, upsizing some stores, growing online sales, offering more products, and so on.

The broker Morgans thinks that the Adairs share price is valued at just six times FY23’s estimated earnings with a potential grossed-up dividend yield of 14.7%.

City Chic Collective Ltd (ASX: CCX)

City Chic is a leading retailer that sells clothes, footwear, and accessories to plus-size women. The ASX share has a large presence in Australia, the UK, and the US, while also having a small presence in Europe.

It has been a harsh year for the City Chic share price, which has dropped by 73% in 2022. It last traded at $1.48 a share. While I’m not expecting the share price to get back above $6 any time soon, I think that this much-lower valuation now includes a lot of pessimism.

While FY22 did see elevated inventory as well as negative cash flow (due to a large increase in inventory), it also saw growth. Sales revenue grew by 39% to $369.2 million, while underlying earnings before interest, tax, depreciation and amortisation (EBITDA) went up 11.3% to $$7.1 million and underlying net profit after tax (NPAT) increased by 14.5% to $28.5 million.

The ASX share is expecting profitable growth in FY23, with price increases to offset rising costs while also growing market share.

Macquarie’s estimates for the retailer suggest that the City Chic share price is valued at 12 times FY23’s estimated earnings and 11 times FY24’s estimated earnings.

The broker also thinks that City Chic could start paying a dividend in FY23, with a potential grossed-up dividend yield of 8.7%.

The post I think these 2 cheap ASX shares are buys for value investors appeared first on The Motley Fool Australia.

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More reading

• 8 ASX 200 shares got kicked out of the index on Monday. How are they tracking?
• 5 ASX retail shares spruiking the highest dividend yields right now
• The ASX 200 is getting a shakeup today. Here’s the tea
• Out in the cold: How are the ASX 200 evictees faring on Monday?
• Here are the 10 most shorted ASX shares

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 ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS 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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Starting investing in ASX shares can be a daunting prospect for 18-year-olds entering the investment world. Beginners are faced with many different options to consider.

I think it’s worth pointing out that compounding is one of the strongest financial forces. We don’t need to find the next Apple to do well.

The ASX share market has typically averaged around 10% per year over the long term. That doesn’t mean shares will return 10% year after year. There will be some great years and also some difficult years. One year could see a gain of 25% and the next could show a drop of 15%.

Those numbers I was just talking about are for the share market as a whole but, within that, there are even wider swings for individual companies.

I’d also want to point out that it’s probably not necessary for young investors to try to find high dividend yields, and rather focus on businesses that have good long-term growth prospects. That could be a smart tactic right now considering share markets have dropped a fair bit lately. Certainly, it’s a good time to find bargains.

BetaShares Global Sustainability Leaders ETF (ASX: ETHI)

This is an exchange-traded fund (ETF). It’d be a good idea to read up on what an ETF is in the linked explainer. But, essentially, an ETF allows investors to buy a basket of shares as just one investment, rather than having to go and buy 50, 200, or even 1,000 different shares of businesses separately.

Some ETFs are based on an index like the S&P/ASX 200 Index (ASX: XJO) which represents 200 of the biggest ASX shares.

The BetaShares Global Sustainability Leaders ETF is based on investing in 200 of the biggest listed businesses in the world.

But, there’s a big difference because this ETF tries to construct a portfolio that aligns with investors’ ethical standards. I think this could appeal to younger investors.

It excludes a number of industries from its portfolio including gambling, alcohol, and fossil fuels. It also excludes businesses that do animal testing, companies with supply chain concerns, and so on.

In terms of the actual holdings, these are some of the biggest current positions: Apple, Visa, Home Depot, Mastercard, Toyota, Nvidia, and Adobe. I like the global diversification that the ETF provides.

Of course, past performance is not a reliable indicator of future returns but over the past three years, the BetaShares Global Sustainability Leaders ETF has returned an average of 13.3% per year to 31 August 2022.

Xero Limited (ASX: XRO)

Xero is one of the biggest and best technology businesses on the ASX. It’s one of the few tech businesses from the ANZ region to become truly global.

For readers who don’t know, Xero is the provider of cloud accounting software to small and medium businesses. It’s focused on being a platform that helps businesses with many other features, not just accounting.

Why is it such a good business to consider right now? It’s still growing its global subscriber base, even though it already has 3.27 million. It’s also growing its average subscriber fee, its customers are extremely ‘sticky’, meaning Xero retains nearly all of its subscribers each year, and it’s investing for more growth.

One of the most attractive things about the business is its extremely high gross profit margin of 87.3% (which keeps growing every year). This means that means a significant portion of new revenue can turn into gross profit, which can then be spent on things like advertising, software development, and so on — more growth, essentially.

One of the main reasons to consider the ASX share is that the Xero share price is down 48% in 2022 to date. That means it’s a lot cheaper and better value, in my opinion.

The post Here’s how I’d invest $2,000 in ASX shares if I’d just turned 18 appeared first on The Motley Fool Australia.

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More reading

• Xero share price is tumbling 5%, but could it be worth a buy?
• Goldman Sachs names 2 ASX tech shares to buy now
• Here are 2 high quality ETFs for ASX investors to buy right now
• 5 things to watch on the ASX 200 on Tuesday
• How I’d invest $10,000 in ASX shares when starting a family

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 Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 Medibank Private Limited (ASX: MPL) dividend might be attractive for some investors focused on investment income.

Medibank is the largest private health insurer in Australia, giving it good scale benefits. This enables it to make a good profit and pay attractive dividends.

Firstly, let’s look at Medibank’s dividend from FY22.

FY22 dividend recap

In the FY22 result, Medibank’s board decided to declare a final dividend of 7.3 cents per share. This was an increase of 5.8% year over year.

Overall, the business saw group net profit after tax (NPAT) fall 10.7% to $393.9 million due to net investment income falling from a $120 million gain in FY21 to a $24.8 million loss in FY22. However, the operating profit rose 12.5% to $594.1 million in FY22.

The full-year dividend was 13.4 cents per share, representing an increase of 5.5% compared to FY21.

Medibank’s full-year dividend represented a payout ratio of 84.8% of underlying NPAT, normalising for investment market returns. This was at the top end of its target payout ratio range of between 75% to 85%.

At the current Medibank share price, this means it has an FY22 grossed-up dividend yield of 5.5%.

How big is the Medibank dividend expected to be in FY23?

Different analysts have different estimates for how much profit and how big the dividend may be from Medibank in the next couple of financial years.

For example, using the estimates on CMC Markets, Medibank is expected to generate earnings per share (EPS) of 18.4 cents in FY23 and 19.1 cents per share in FY24. This could translate into a dividend per share of 15.2 cents per share in FY23 and 15.8 cents per share in FY24. In percentage terms, this could mean a grossed-up dividend yield of 6.25% in FY23 and 6.5% in FY24.

Those dividend yields are pretty sizeable and would be attractive in my opinion. It could be a useful yield in this uncertain economic climate.

Let’s have a look at a couple of the other estimates.

The broker Citi, which rates Medibank as a buy, thinks that Medibank could pay a grossed-up dividend yield of 6.5% in FY23 and 6.7% in FY24.

However, there are other estimates that put future dividends at a lower level. For example, Ord Minnett has projected that Medibank could pay a grossed-up dividend yield of 6.2% in FY23 followed by a grossed-up dividend yield of 6.6% in FY24.

Foolish takeaway

The private health insurer could generate a higher profit in FY23 with policyholder growth (projected by the company to be 2.7% in FY23). There could also be productivity improvements relating to management expenses and targeted organic or ‘inorganic’ growth. It’s also possible that its investments could deliver gains again in FY23.

The post What is the outlook for the Medibank dividend in FY23? appeared first on The Motley Fool Australia.

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More reading

• What’s the outlook for the Medibank share price in FY23?
• ‘Sweet spot’: Citi names 2 ASX 200 shares that are ‘inexpensive’ right now
• Why is the Medibank share price slipping on Wednesday?
• 5 things to watch on the ASX 200 on Wednesday
• Ready for a storm: 3 ASX 200 shares with ironclad balance sheets

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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ASX shares involved in lithium production continue to be popular, and for good reason.

Analysts at Wilsons reckon demand for the element will expand six- to eight-fold by the end of this decade.

“We don’t believe lithium supply can keep up with this level of demand growth,” equity strategist Rob Crookston said in a memo to clients.

“Lead times for lithium mines (from discovery to production) can take 5+ years, so there is no quick fix.”

With the rising popularity of electric cars and other innovations that require powerful batteries, the Wilsons team is forecasting potentially “large supply deficits from 2025 onwards”.

“While we expect the price of lithium to fade over time, the forecast price profile seems inconsistent with the forecast supply/demand balance,” said Crookston.

“We believe there could be significant upside to the forecast long-term price if there is a supply-demand imbalance and the current price profile looks too pessimistic.”

‘Significant upside’ to this company’s earnings

So which ASX shares is Crookston’s team buying to invest in this thematic?

The memo mentioned four stocks, but out of them Allkem Ltd (ASX: AKE) is Wilsons’ “preferred” exposure.

The analysts cited the company’s position as one of the world’s five biggest producers, processing three different forms — brine, spodumene and hydroxide.

“While we do not expect lithium prices to remain elevated at these levels over the next 12 months, we believe they will be significantly higher than consensus, which is currently pricing at ~US$36,000/tonne (vs. spot of US$73,500/tonne),” said Crookston.

“If this is the case, there should still be significant upside to Allkem’s earnings, leading to analyst upgrades.” 

The Wilsons team also likes the geographic diversity, with operations spread out in Australia, Argentina, Canada and Japan.

Its dominance in the market could also see it attempt some takeovers.

“We believe consolidation is likely in the pipeline for Allkem, one of the biggest players in South America’s ‘Lithium Triangle’. The company could acquire smaller explorers to increase its capacity.”

Three more lithium stocks to buy

Pilbara Minerals Ltd (ASX: PLS) is a pure play lithium producer that the Wilsons team also likes.

“Spodumene production is expected to increase to ~1 million tonnes by FY28, up from 360 kilo tonnes in FY22.”

Moreover the analysts named IGO Ltd (ASX: IGO), which extracts and processes several different commodities involved in green energy, such as nickel, copper and cobalt, as well as lithium.

Perhaps Wilsons’ stock recommendation that is least specialised in lithium is Mineral Resources Limited (ASX: MIN).

“Diversified exposure to predominantly lithium and mining services, as well as (low quality) iron ore,” said Crookston.

“A speculated NYSE spin-off of the lithium business could untap hidden value in the business.”

The post Our 4 favourite lithium ASX shares right now: Wilsons appeared first on The Motley Fool Australia.

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More reading

• Are you attracted to ASX losers?
• 2 stellar ASX growth shares that experts say are buys
• Allkem share price sinks 5% amid Mexico lithium deposit speculation
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here’s which ASX lithium shares investors have been loading up on this month

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

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It appears ASX investors are attracted to loss-making shares, with many of the S&P/ASX 300 Index (ASX: XKO)’s favourite names trading with red balance sheets.

Indeed, new research by MST Marquee has found 50 of the 300 companies that call the index home are yet to turn a profit.

So, why are ASX investors still buying shares in companies posting losses? It’s likely the hope that they’ll find the next market champion.

Why has the ASX embraced loss-making shares?

According to research by MST Marquee, cited by the Australian Financial Review, unprofitable ASX 300 shares make up a sixth of the index.

And investors might be pouring cash into the stocks in the hopes they’ll turn the corner to greatness.

That is the general idea behind investing in ASX growth shares – which aren’t necessarily unprofitable – after all.

But do loss-making companies really make good investments? The short answer is, sometimes.

Of course, until last month Pilbara Minerals Ltd (ASX: PLS) was yet to turn a profit. Its share price is currently 720% higher than it was five years ago at $4.85.

Looking further afield, Tesla Inc (NASDAQ: TSLA) stock was offered for US$17 as part of its initial public offering (IPO) in 2010. It turned its first profit in 2013 and nine years later, shares in the electric vehicle giant are swapping hands for US$288.

Further, Amazon.com Inc (NASDAQ: AMZN) went public in 1997. It offered shares for US$18 (7.5 US cents adjusted for four stock splits since) under its IPO before posting its first profit in 2002. The stock now trades at more than US$117.

But MST Marquee senior research analyst Hasan Tevfik urges investors to show caution when it comes to investing in loss-making shares. He said, courtesy of the AFR:

Investors could also be hoping that a few of these birds will develop wings and start soaring like an eagle, perhaps.

While the ultimate driver of share prices is the direction of profits, these companies have none. In our view, these companies are the equivalent of birds without wings.

The post Are you attracted to ASX losers? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Here’s which ASX lithium shares investors have been loading up on this month
• Why is the Sayona Mining share price in the doldrums this week?
• Which ASX lithium shares are performing best in 2022?
• Here’s why splitting up Amazon could mean huge returns for shareholders

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 Amazon and Tesla. The Motley Fool Australia has recommended Amazon. 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 another very difficult week with a day in the red. The benchmark index fell a disappointing 1.9% to 6,574.7 points.

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

ASX 200 expected to sink again

The Australian share market looks set to start the week deep in the red. This follows another selloff on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 82 points or 1.25% lower this morning. On Wall Street, the Dow Jones was down 1.6%, the S&P 500 dropped 1.7%, and the NASDAQ tumbled 1.8%.

Oil prices tumble

Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a difficult start to the week after oil prices sank on Friday. According to Bloomberg, the WTI crude oil price was down 5.7% to US$78.74 a barrel and the Brent crude oil price dropped 4.75% to US$86.15 a barrel. Recession fears weighed heavily on prices.

Link takeover collapses

The Link Administration Holdings Ltd (ASX: LNK) share price will be on watch today after the company confirmed that its takeover has collapsed. As there is no expectation that the outstanding conditions precedent for the $4.81 per share offer will be satisfied, the court declined to make orders approving the scheme and dismissed the proceedings.

Gold price drops

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a tough start to the week on Monday after the gold price tumbled. According to CNBC, the spot gold price was down 1.5% to US$1,655.6 an ounce on Friday night. This means the precious metal is now trading at a two-year low. Rising rates are lessening the appeal of the yield-less precious metal.

Miners on watch

It could be a bad start to the week for BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) shares. On Wall Street, the mining giants’ US listed shares sank deep into the red amid concerns over an impending global recession. BHP’s shares dropped 4.5% and Rio Tinto’s shares fell almost 6% during Friday night’s session.

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

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More reading

• 2 surprising ASX shares to buy for the energy transition: Wilsons
• The market has been hating on this ASX 200 share in 2022. Here’s why I still love it
• Could this nation-first action make an investment in Woodside shares cleaner?
• Why is the De Grey share price struggling this week?
• 2022 hasn’t been kind to BHP shares. Here’s why I’m holding tight

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Link Administration Holdings 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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Exchange traded funds (ETFs) continue to grow in popularity with investors and it isn’t hard to see why.

Never has it been so easy for investors to gain access to groups of shares from all corners of the world.

But which ones should you consider if you want to invest globally? Two that could help you achieve your goals are listed below. Here’s what you need to know about these ETFs:

iShares S&P 500 ETF (ASX: IVV)

The first ETF that could be a great option for investors wanting to invest globally is the iShares S&P 500 ETF.

This popular ETF aims to provide investors with the performance of the famous S&P 500 Index, before fees and expenses. This index is home to 500 of the largest listed companies on Wall Street.

BlackRock, which operates the fund, highlights that the ETF allows Australian investors to diversify internationally and seek long-term growth opportunities for a portfolio.

Among its largest holdings are global giants such as Amazon, Apple, Coca-Cola Company, Johnson & Johnson, Mastercard, McDonalds, Microsoft, Nike, Tesla, and Visa.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

Another ETF to consider if you want to invest globally is the Vanguard MSCI Index International Shares ETF.

This ETF gives investors exposure to approximately 1,500 of the world’s largest listed companies from major developed countries.

Vanguard, which operates the fund, notes that the ETF offers low-cost access to a broadly diversified range of securities that allow investors to benefit from the long-term growth potential of the global economy.

The fund manager believes this this makes it a decent option for buy and hold investors that are seeking long-term capital growth, some income, and international diversification.

Among the global giants you’ll be owning a slice of with this fund are Apple, HSBC, LVMH Moet Hennessy Louis Vuitton, Nestle, Procter & Gamble, Roche, Royal Bank of Canada, Shell, and Visa.

The post Want to invest globally? Here are 2 international ETFs for ASX investors appeared first on The Motley Fool Australia.

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More reading

• This ASX ETF was my first investment, and I’ll be holding it for the long term
• How much is too little to start investing in ASX shares?
• 3 quality ETFs for ASX investors to buy now
• What does Warren Buffett think about investing in ETFs?
• Could right now be the perfect time to buy the Vanguard Index International Shares ETF?

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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF and iShares Trust – iShares Core S&P 500 ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re a fan of growth shares like I am, then you’ll be pleased to hear that a number have recently been rated as buys by leading brokers.

Two such ASX shares are listed below. Here’s what analysts at Goldman Sachs are saying about them:

IDP Education Ltd (ASX: IEL)

The first ASX growth share that could be a good option for investors is IDP Education.

It is a provider of international student placement services and English language testing services across the world.

IDP is also the co-owner of the IELTS language test. This is preeminent English language test, which millions of students take each year.

IDP has been growing at a rapid rate since the worst of the pandemic passed and appears well-placed to continue this positive form in the coming years. This is thanks to structural growth and recent acquisitions.

Goldman Sachs is very bullish and is forecasting a 68% three-year earnings per share compound annual growth rate between FY 2021 and FY 2024.

The broker currently has a buy rating and $36.00 price target on its shares.

Temple & Webster Group Ltd (ASX: TPW)

Another ASX growth share that could be a good option for investors according to Goldman Sachs is Temple & Webster.

It is Australia’s leading pure-play online retailer of furniture and homewares.

Goldman Sachs believes Temple & Webster is well-placed for long term growth. This is thanks to its leadership position in a retail category that is still only in the early stages of shifting online.

The broker also highlights that the category favours scale players, requires a specialised approach to e-commerce, and has higher barriers to entry. Temple & Webster ticks these boxes.

Goldman has a buy rating and $7.55 price target on the company’s shares.

The post 2 ASX growth shares that this leading broker rates as buys appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• 2 ASX 200 shares rated as buys by leading brokers
• Top brokers name 3 ASX shares to buy today
• Looking to buy ASX shares? Expert reveals ‘one metric to assess the quality of a business’
• Why Brickworks, IDP Education, IGO, and New Hope shares are racing higher

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 Idp Education Pty Ltd and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group Ltd. 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Aristocrat Leisure Limited (ASX: ALL)

According to a note out of Citi, its analysts have retained their buy rating with a slightly trimmed price target of $40.20. Citi notes that US casino industry revenues are sustaining at much higher levels than history but higher supply-chain costs are impacting margins. This has led to the broker trimming its earnings estimates slightly. Nevertheless, Citi expects this to be temporary and remains positive on the future. Particularly given that Aristocrat holds five of the top 10 premium/leased titles by installed base and has newer machines growing rapidly in popularity. The Aristocrat share price ended the week at $32.88.

Coles Group Ltd (ASX: COL)

A note out of Morgans reveals that its analysts have retained their add rating and $20.00 price target on this supermarket giant’s shares. This follows news that the company has agreed to sell its Coles Express business for $300 million. Morgans expects this to allows Coles to focus on its core business and free up balance sheet capacity. The Coles share price was fetching $16.34 at the end of the week.

IDP Education Ltd (ASX: IEL)

Analysts at Goldman Sachs have retained their buy rating and $36.00 price target on this language testing and student placement company’s shares. Goldman notes that IDP has announced an agreement to acquire Intake Education for up to $83 million. The broker is positive on the deal and believes it could allow IDP to grow its market share of UK student placements. It also sees cross-sell opportunities. The IDP share price ended the week at $26.51.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

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More reading

• 2 ASX growth shares that Morgans rates as buys
• Brokers name 3 ASX shares to buy today
• Goldman Sachs gives its verdict on the Coles share price
• 2 ASX 200 shares rated as buys by leading brokers
• Here are 2 ASX 200 blue chip shares that experts rate as buys

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 Idp Education Pty Ltd. 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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