The Allkem Ltd (ASX: AKE) share price has had a tough end to the week.

Allkem shares fell 5.3% today to $14.84. For perspective, the S&P/ASX 200 Materials Index (ASX: XMJ) dropped 0.49% today.

Let’s take a look at what could be impacting the Allkem shares.

Allkem among ASX lithium shares to struggle on Friday

The Allkem share price may have fallen today, but it was not alone among ASX lithium shares. The Core Lithium (ASX: CXO) share price fell 1.96% today, while Sayona Mining Ltd (ASX: SYA) fell 5% and Pilbara Minerals Ltd (ASX: PLS) dropped 1.82%.

News out of Mexico could add to lithium supply in the future, potentially putting downward pressure on lithium prices.

The nation has a lithium deposit that could be worth billions, Reuters reports.

A lithium deposit in the Mexican state of Sonora is said to be worth 12 trillion Mexican pesos, according to the government. This is equivalent to $909 billion Australian dollars.

On 24 August, Mexican president Andrés Manuel López Obrador set up a state company, LitioMx, to mine lithium. This is due to operate in February, 180 days after the decree to set up the new company was published.

The Allkem share price hit a yearly high of $15.99 on 13 September. Allkem is involved in multiple lithium projects including the Olaroz, Sal de Vida and Cauchari projects in Argentina, the Mt Cattlin project in Western Australia, the Naraha project in Japan, and the James Bay project in Canada.

Bell Potter rates Allkem as a buy and has placed a $21.58 price target on the company’s share price.

AKE share price snapshot

The Allkem share price has lifted 67% in the past year, while it has gained 43% year to date.

For perspective, the ASX 200 Materials Index has gained nearly 0.9% in the past year.

Allkem has a market capitalisation of $9.46 billion based on the current share price.

The post Allkem share price sinks 5% amid Mexico lithium deposit speculation appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 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?
• Is it too late to invest in ASX lithium shares? Apparently not…
• Is this prediction great news for ASX lithium shares?

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

from The Motley Fool Australia https://ift.tt/UmHqke8

The Flight Centre Travel Group Ltd (ASX: FLT) share price is in the red today, but could the renewed interest in international travel spell good news?

The travel company’s share price closed trading at $15.41, a 2.96% fall. For perspective, the S&P/ASX 200 Index (ASX: XJO) finished down 1.92% today.

Let’s take a look at the outlook for Flight Centre shares.

International traffic numbers increase

Flight Centre shares may be down today, but they are not alone among ASX travel shares. The Qantas Airways Limited (ASX: QAN) share price is down 1.91% today, while Webjet Limited (ASX: WEB) shares descended 3.04%.

International passenger traffic in July soared 1229.9% from 154,692 in July 2021 to 2.057 million in July 2022, BITRE data shows. However, traffic in July was 45% lower than July 2019.

Overall, passenger traffic for the year ended July 2022 was 8.425 million, nearly 600% more than the year ended July 2021. But this is still 80% less than the 42.146 million passengers who travelled to and from Australia in the year ended July 2019. However, the international borders only fully opened on 21 February this year.

Meanwhile, demand for passports may also be a good sign for ASX travel shares. Passport applications are averaging 12,000 a day, according to a Foreign Affairs and Trade department spokesman and cited by 7 News. This compares to 7,000 to 9,000 prior to COVID-19.

Flight Centre was the most shorted share on the ASX last week, as my Foolish colleague James reported Monday.

Flight Centre share price snapshot

The Flight Centre share price has fallen 23% in the past year, while it has lost 12% in the year to date.

In comparison, the ASX 200 has shed 10.8% in the past year.

Flight Centre has a market capitalisation of more than $3 billion based on the current share price.

The post Could this be good news for Flight Centre shares? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are the 10 most shorted ASX shares
• Here’s why the Flight Centre share price isn’t all that it seems
• Why have Flight Centre shares been the most shorted on the ASX every week so far in 2022?
• Here are the 10 most shorted ASX shares
• Is now a good time to buy Flight Centre shares?

Motley Fool contributor Monica O’Shea has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/segtXLc

The Mesoblast Limited (ASX: MSB) share price is down 2.3% today to 85 cents.

This fall is in line with the S&P/ASX All Ordinaries Index (ASX: XAO), which has dipped 2.26% at the time of writing.

Which director has bought Mesoblast shares?

The only news out of Mesoblast this month relates to two company directors buying more shares.

The latest purchase is by William Burns, who is the non-executive vice chair of the ASX biotech company.

Burns picked up 22,000 shares on 13 September. He paid an average price of approximately 91 cents per share for a total consideration of $20,020.

According to the change of director’s interest notice, this takes his total holdings to 85,000 shares and 220,000 options.

About a week earlier, Mesoblast’s newest director Jane Bell more than doubled her holdings.

As my Foolish colleague James reported, the non-executive director purchased 133,333 shares on market on 7 September.

According to the change of director’s interest notice, she paid an average price of approximately 83 cents per Mesoblast share.

That equates to a total consideration of $109,999.73. This increased her holdings to 247,618 shares.

As James points out, ASX investors generally perceive insider buying as a positive sign. After all, no one knows a company better than its directors, and Bell is certainly optimistic about Mesoblast’s future.

When appointed in August, Bell said:

I look forward to joining the Mesoblast Board at such an exciting stage in the company’s transition to a commercial organization, with its deep cell therapy product pipeline.

The potential FDA approval and launch in the US market of the first allogeneic cell therapy is an incredibly exciting opportunity for me to be involved with and I look forward to using my background and experience to make a strong contribution.

Mesoblast share price snapshot

Mesoblast shares are down 51% over the past 12 months. In 2022, they have fallen 39%.

The ASX biotech share is currently trading close to its 52-week high of 88 cents.

The post This board member pulled the trigger on more Mesoblast shares appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why has the Mesoblast share price marched 14% higher in 6 days?
• Looking to buy Mesoblast shares? Here’s the latest on where the ASX biotech is at with the FDA
• Mesoblast share price lifts 5% despite hefty loss
• Why has the Mesoblast share price tumbled 10% so far in August?

Motley Fool contributor Bronwyn Allen has positions in Mesoblast 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.

from The Motley Fool Australia https://ift.tt/WUxb8LT

The Liontown Resources Limited (ASX: LTR) share price is powering down on Friday despite no announcements from the company.

At market open, shares in the lithium producer were trading around $1.62 before quickly heading south as the day went on.

Currently, the share price is fetching at $1.568 apiece, down 4.71%.

Let’s take a look at what could be driving the fall around the company’s share price.

What’s driving Liontown shares lower?

Investors are bidding down the Liontown share price as the market digests the latest rate hike by the US Fed Reserve.

This could potentially mean that Australia also will lift interest rates yet again in 2 weeks’ time.

The negative sentiment appears to be impacting the wider materials sector.

For context, the S&P/ASX 200 Materials Index (ASX: XMJ) is down by 1.01% today, and 3.81% for the week.

In addition, a large number of lithium shares are also in the red.

Allkem Ltd (ASX: AKE) and Sayona Mining Ltd (ASX: SYA) are both down 6%.

Earlier this week, Liontown provided an update to the ASX stating it further strengthened its board.

The inclusion of highly experienced lawyer Adrienne Parker will bring legal, commercial and business knowledge to Liontown.

Management has been busy progressing the development of the Kathleen Valley Lithium Project in Western Australia. First production is expected to be achieved sometime in Q2 2024.

Liontown shares fell 2.66% despite the positive news as concerns weighed in about a forced recession from the US central bank.

Liontown share price summary

Despite its recent falls, the Liontown share price is up 10% over the past 12 months.

When looking at year-to-date, however, the share is down 5%.

Based on today’s price, Liontown commands a market capitalisation of approximately $3.61 billion.

The post Why is the Liontown share price diving 5% on Friday? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Is this prediction great news for ASX lithium shares?
• Here’s why the Liontown share price is up 4% and could keep rising
• Why Atlas Arteria, Liontown, St Barbara, and Zip shares are dropping today
• Why is the Liontown share price tumbling 5% today?
• Why is the Liontown Resources share price down 5% today?

Motley Fool contributor Aaron Teboneras 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.

from The Motley Fool Australia https://ift.tt/POmUZik

Well, it’s turning out to be a rather awful end to the trading week this Friday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has shed a horrible 2.03%, putting the index down to just around 6,565 points.

But instead of letting that ruin our weekends, let’s instead take a look at the ASX shares that are currently at the peak of the ASX 200’s share trading volume charts, according to investing.com.

The 3 most traded ASX 200 shares by volume this Friday

Cleanaway Waste Management Ltd (ASX: CWY)

A relatively rare appearance from waste disposal company Cleanway marks our first highly-traded ASX 200 share today. So far this Friday, a hefty 11.2 million Cleanaway shares have been recycled on the markets. We’ve seen no news out of the company so far during this session.

So perhaps this huge volume can be put down to the movements of the Cleanaway share price itself. Cleanaway shares have taken a hit today, but are still outperforming the broader markets with their loss of 1.64% at $2.70 a share.

Telstra Corporation Ltd (ASX: TLS)

Next up this Friday is ASX 200 telco Telstra. A sizeable 15.27 million Telstra shares have been called in so far during today’s session. Telstra hasn’t been immune to the woes of the share market today either.

The telco has presently lost a sobering 1.95% at $3.76 per share. Perhaps the woes revealed today in the broader telco space are also influencing Telstra’s share trading volumes as well.

Pilbara Minerals Ltd (ASX: PLS)

Our third, final and most traded ASX 200 share today is none other than lithium producer Pilbara Minerals. This Friday has seen a notable 26.23 million Pilbara shares bought and sold on the share market thus far. This appears to be the result of some potent volatility in the Pilbara share price itself.

The company initially opened well in the green this morning, rising as high as $5.03 a share. But the losses of the markets appear to have quickly sapped investors’ confidence. Pilbara shares are now down a nasty 3.04% at just $4.79 a share.

The post Here are the 3 most heavily traded ASX 200 shares on Friday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here’s which ASX lithium shares investors have been loading up on this month
• Here’s how ASX telco shares are faring following Optus hack
• Why is the Sayona Mining share price in the doldrums this week?
• Which ASX lithium shares are performing best in 2022?
• Is it too late to invest in ASX lithium shares? Apparently not…

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation 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 positions in and has recommended Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/OPoJpc4

If you’re looking for income, then National Australia Bank Ltd (ASX: NAB) shares could be worth considering.

That’s the view of analysts at Citi, who have recently upgraded the banking giant’s shares.

NAB shares upgraded

According to the note, the broker has upgraded NAB’s shares to a buy rating with a $32.75 price target.

Based on the latest NAB share price of $29.36, this implies potential upside of 11.5% for investors over the next 12 months.

The broker is also expecting NAB’s shares to provide investors with generous yields in the near term. It is forecasting a $1.50 per share dividend in FY 2022 and then a $1.85 per share dividend in FY 2023.

This equates to fully franked yields of 5.1% and 6.3%, respectively, over the next two years.

Why is the broker positive?

Last month Citi gave NAB’s third quarter update a reasonably lukewarm response. It said:

Pre-provision profit of ~$2.5bn was in-line with Citi, but ~5% below Consensus driven by weaker than expected revenue growth of just ~3%. In the quarter, Markets & Treasury income unexpectedly fell, while NIMs ex M&T were only ‘up slightly’ (consensus +4bpts). Underlying expense growth was better than expected at just ~1%. CET 1 of 11.6% was a strong result, but benefited from undisclosed deductions movements. Looking to 4Q, the impact of recent RBA cash rate rises will deliver a very different set of results. We expect consensus 2H22 pre-provision estimates to remain intact with some possible refinement of BDDs.

Since then, though, the NAB share price has pulled back and the outlook for the banks has improved even more so.

In respect to the latter, Citi believes that NAB and the other big four banks are well-placed to profit thanks to their significant excess liquidity as rates rise. In fact, the broker has upgraded sector earnings estimates by 2% in FY 2023 and 4% in FY 2024 to reflect this.

All in all, this could make NAB shares one to consider if you don’t already have meaningful banking sector exposure.

The post Are NAB shares a buy for income investors right now? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Analysts say these high yield ASX dividend shares are buys
• NAB shares: Buy, hold, or fold?
• Here’s why I decided to buy each of the big 4 ASX 200 bank shares
• NAB shares: Boring or beautiful?
• Looking to buy CBA shares? Here’s how the bank’s balance sheet stacks up

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.

from The Motley Fool Australia https://ift.tt/9kvo5Oj

The Wesfarmers Ltd (ASX: WES) share price is having a terrible day, down 4% in afternoon trading to $43.33.

There’s been no market-sensitive news issued by the diversified conglomerate today.

However, according to an article in the Australian Financial Review (AFR), Wesfarmers has been busy with a bunch of changes to the businesses in its new health segment following the purchase of Australian Pharmaceutical Industries (API).

Wesfarmers bought API in a takeover deal finalised in March. The acquisition brought retail chains including Priceline Pharmacy, Pharmacist Advice, and Clear Skincare into the Wesfarmers portfolio.

Best known for owning Bunnings, Kmart, and Officeworks, the purchase represents Wesfarmers’ first foray into the healthcare, beauty, and wellness space.

What will API do to the Wesfarmers share price?

Emily Amos is managing director of Wesfarmers’ health segment. She was appointed in April shortly after the takeover was concluded.

Amos has done an interview with AFR outlining some of her first priorities.

According to the article, one of them is leveraging API’s loyalty program to boost sales. It’s the fourth largest of its kind in terms of market penetration in Australia.

Called Sister Club, the loyalty program has 7.5 million members. Amos wants to use it to increase sales, expand product ranges, and improve marketing.

She also wants to expand the network of Clear Skincare clinics, which offers anti-ageing, acne and laser treatments. There are currently 96 clinics across Australia and New Zealand. Amos wants to add 30 more.

Amos told AFR: “It’s a good margin business, so it’s really about operational execution and discipline.”

The former API wholesale drug business recorded $3 billion in sales in fiscal year 2021 but with low margins.

Amos reckons she can improve things by making the distribution centre in Sydney’s Marsden Park more efficient. She sees automation as the way to go and expects gains from the second half of this year, according to the article.

Bringing a new business into the fold involves many costs but also many potential rewards.

In Wesfarmers’ FY22 full-year results, the health division recorded $1,240 million in revenue. But this trickled down to a $25 million loss in earnings before tax (EBT).

Of course, this is only over the three months that Wesfarmers owned its new health assets.

The picture changes if you take out $36 billion in acquisition-related and one-off expenses. In that scenario, earnings for the three-month period were $11 million.

Over this three-month timeframe, the Wesfarmers share price went down by 15%.

The post Own Wesfarmers shares? Here’s where the health business is heading appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Down 23% in 2022, are ASX investors throwing Wesfarmers shares out with the bathwater?
• 2 excellent ASX dividend shares experts rate as buys
• Wesfarmers shares: Buy, hold, or fold?
• Wesfarmers share price drops 4%: Time to buy?
• Why this top broker is tipping 15% upside for the Wesfarmers share price

Motley Fool contributor Bronwyn Allen has positions in Wesfarmers 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 positions in and has recommended Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/wHArK2x

By now, most investors would be aware of the awful end to the trading week that ASX 200 shares are suffering through this Friday. At the time of writing, the S&P/ASX 200 Index (ASX: XJO) has plunged by a depressing 2.3% to back down around 6,550 points.

These falls have predictably bought some new share price lows to the ASX today. So let’s take a look at three ASX 200 shares that have just unlocked some new low points for their share prices.

3 ASX 200 shares hitting new lows today

Sonic Healthcare Limited (ASX: SHL)

Sonic is our first ASX 200 share worth a look at today. This ASX 200 healthcare share has taken a beating today. At present, Sonic shares are down a nasty 2.4% this session to $29.60 each. But earlier today, Sonic sank as low as $29.43. That’s a new 52-week low for the company.

It’s also the lowest Sonic shares have been since the dark days of the 2020 COVID crash. Sonic healthcare shares are now down 35.85% year to date.

Lottery Corporation Ltd (ASX: TLC)

Lottery Corp shares have only been on the ASX 200 in their own right for a few months. The company was spun out of Tabcorp Holdings Limited (ASX: TAH) back in May. But it’s been a baptism by fire for this gaming share. Since its ASX debut, Lottery Corp shares have fallen by close to 11%.

Today, the company has taken a depressing 3.8% hit, which puts it down to the present price of $4.18. This morning saw the company descend to just $4.11 per share, which is Lottery Corp’s new 52-week low.

TPG Telecom Ltd (ASX: TPG)

Our final ASX 200 share to check out today is telecom company TPG. TPG shares are down 2.31% so far this Friday, putting the telco at $4.86 a share. That’s just a whisker off of the low of $4.85 that TPG saw this morning. That’s also the new 52-week low for the company.

It’s been a brutal month or so for TPG, which has seen its share price decline by more than 27% since 17 August. The company is now down by 17.7% year to date in 2022 thus far.

The post These ASX 200 giants are unlocking new lows on Friday appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here’s how ASX telco shares are faring following Optus hack
• These ASX 200 dividend shares just paid out. Here’s how much
• Looking to buy ASX shares? Expert reveals ‘one metric to assess the quality of a business’
• These are the top ASX 100 buy ideas from Macquarie
• 3 blue-chip ASX 200 shares touting the highest dividend yield in September

Motley Fool contributor Sebastian Bowen 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 Sonic Healthcare Limited and TPG Telecom Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/RotgYpJ

With a number of growth shares being sold off recently as interest rates rise, now could be a good time to look at which ones you want to buy when the market settles down.

Two that analysts at Morgans rate as buys are listed below. Here’s what the broker is saying about them:

Aristocrat Leisure Limited (ASX: ALL)

Morgans is a big fan of this gaming technology company. It highlights that the company has been growing strongly in recent years and expects this trend to continue. Particularly given how it continues to win market share across all product segments. So, with Aristocrat’s shares down materially since this time last year, its analysts see this as a buying opportunity for investors. It commented:

The underperformance [of its shares] means, however, that ALL’s 1-year forward P/E has derated to less than 20x from a high of 30x last September. With $3.3bn of currently available liquidity, ALL has significant funding capacity for growth, even after the buyback. It has a stated ambition to build a meaningful presence in the rapidly growing online real money gaming segment, which we believe may be achieved both through organic investment and inorganic acquisitions.

Morgans has an add rating and $43.00 price target on the company’s shares.

Jumbo Interactive Ltd (ASX: JIN)

Another ASX growth share to consider is lottery ticket seller Jumbo. Morgans likes the company due to its belief that lottery ticket sales are somewhat recession proof. In addition, the broker also sees growth opportunities overseas. It said:

We believe JIN offers excellent strategic growth opportunities, both in Australia and overseas, supported by a steadily expanding domestic market for digital lottery retailing. The business is cash generative and has a low requirement for ongoing capex. Lottery sales are resilient to economic cyclicality. They do not represent a large proportion of the personal budgets, hovering around 0.5% of household discretionary income in Australia. Although near-term sales are affected by the frequency of large jackpots, over time growth is steady.

Morgans has an add rating and $17.50 price target on its shares.

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

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Here are 3 top ASX growth shares that analysts rate as buys
• ‘Bullish sign’: Expert names 2 rising ASX shares to buy right now
• Aristocrat share price defies the selloff thanks to bullish brokers
• 5 things to watch on the ASX 200 on Friday
• Are these ASX growth shares buys after the market selloff?

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 Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/WmKexBc

The Evolution Mining Ltd (ASX: EVN) share price hasn’t been immune to today’s sharp sell-off on the S&P/ASX 200 Index (ASX: XJO). But the gold miner is certainly holding up better than the benchmark.

In afternoon trade the Evolution Mining share price is down 1%. Meanwhile, the ASX 200 has tumbled more than twice that much, down 2.2%.

But it’s not just Evolution Mining shares that are outperforming.

At the time of writing the Northern Star Resources Ltd (ASX: NST) share price has slipped 1.2% while shares in Newcrest Mining Ltd (ASX: NCM) are down 0.86%.

All up the S&P/ASX All Ordinaries Gold Index (ASX: XGD) is down 1% today, half the damage suffered by the ASX 200.

With the United States Fed having just bumped interest rates in the world’s largest economy by another 0.75% and gold trading near two-year lows, what’s supporting the Evolution Mining share price?

Safe haven status in play

Gold is classically viewed as a safe-haven asset, alongside the US dollar and government bonds.

Yet, despite rising geopolitical tensions around China and Taiwan, alongside Russia’s invasion of Ukraine, bullion has fallen from multi-year highs of US$2,051 per ounce on 8 March to US$1,671 today.

Much of that pressure has come from fast rising interest rates. Not just from the US Fed, but from central banks across the world, including the RBA.

That’s pushed down bullion prices, and pressured the Evolution Mining share price, on several fronts. Mainly, gold doesn’t pay any interest. And as rates go up, so too does the allure of alternate haven assets like the US dollar and government bonds.

But an interesting thing happened in the wake of Wednesday’s rate hike by the Fed. While gold dipped initially, bullion is currently just $2 per ounce below where it was before the rate announcement.

Commenting on the outlook for gold, and by extension the share prices of gold stocks like Evolution Mining, Ed Moya, senior market analyst at Oanda said (quoted by Bloomberg):

Gold is clearly going to become a safe haven as the global outlook deteriorates and as Wall Street grows confident that we are nearing the peak with Treasury yields … [with] massive support at the $1,660 level. And if it can stabilise above there, prices could eventually make a move back above the $1,700 level.

Indeed, with Russian president Vladimir Putin announcing the mobilisation of 300,000 reserve troops, and possibly more, tailwinds from gold’s haven status may trump the headwinds from rising interest rates.

Evolution Mining share price snapshot

Though it’s outperformed the benchmark today, the Evolution Mining share price has been hammered in 2022, down 51%. That compares to a 12% year-to-date loss posted by the ASX 200 and a 31% loss on the ASX gold index.

The post How the Evolution Mining share price is dodging the worst of today’s sell off appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 5 things to watch on the ASX 200 on Wednesday
• 5 things to watch on the ASX 200 on Tuesday
• Why did ASX 200 gold shares have such a rough day?
• 5 things to watch on the ASX 200 on Thursday
• Evolution Mining share price craters in brutal market sell-off

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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.

from The Motley Fool Australia https://ift.tt/zuLnysG