Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, Bell Direct market analyst Grady Wulff names the two ASX shares that are ripe to buy now.

Investment style

The Motley Fool: How would you describe your services to a potential client?

Grady Wulff: I’m Grady Wulff, the market analyst at Bell Direct, which is an investment platform for buying and selling shares listed on the ASX. Our goal is to make the lives of all Australians better by making their investment journey nice and easy, and intuitive. My role is to source information, identify different market trends, produce timely market updates, create analysis pieces to help our clients save time and stay informed on what’s happening on the markets.

MF: At Bell Direct, when you’re helping clients invest in Australian shares, what’s the investment philosophy you take?

GW: It really depends on the investment goal of our clients. So we’re very intuitive and very tailored to the client’s investment goals. So whether they’re a trader, whether they’re investors, whether they are looking for high yields or just growth stocks, value stocks. We’ve got the strategy builder on our platform, which helps you identify different sectors and different stocks that will meet your investment needs.

MF: You used to be a finance journalist, but now you’re on the investment side of the fence. How did that come about?

GW: I actually started in sports journalism, then I moved into news journalism, and then I got headhunted to go into finance journalism in Perth with a very retail focus at [finance app] Grafa. That was tailored towards new investors and retail investors who are just starting out their journeys. 

Then I got headhunted to come to Bell Direct. So very, very lucky, and I feel like I’ve learned so much since hitting the ground running in Sydney, but I’m very lucky to be here, and I love it so much.

Hottest ASX shares

MF: What are the two best stock buys right now?

GW: I’m going by Bell Potter research, given it’s in-house. For me, having looked through them, Nufarm Ltd (ASX: NUF) is a really strong stock for me moving forward. Bell Potter maintains a buy rating on it with a price target that’s been raised to $7.15. Shares in the company are up 21% year to date. 

The reason that the house has a buy rating on it is because of the strong FY22 results that were released. The company had pretty strong headwinds in the way of deregistrations in Europe and dry conditions across the Mediterranean and North America in the second half particularly, but we expect those headwinds to be mitigated in FY23 and drive normalised demand in the US and Europe.

The company also has really strong continued growth and revenue for the Omega3 products. I think it’s through the canola. So they’re doing really well, and they’ve got a really positive year-end outlook. So we are really, really bullish on this one. They’ve got strong cash flow, revenue’s going up, operating EBIT went up 24%. So yeah, we’re really bullish on Nufarm at the moment.

MF: Great. What’s your second pick?

GW: My second one’s Best & Less Group Holdings Ltd (ASX: BST). I love this stock. 

We’ve seen retail stocks recently being beaten down this year amid rising interest rates, and obviously consumers are a lot more conscious about what they’re spending their money on.

But this positions Best & Less to really capitalise and benefit from the change in consumer behaviour from luxury shopping back in the pandemic, when we had all that money when we were sitting at home doing nothing, and we had so much money to spend, to now being more value shoppers — buying things that are less discretionary, have less replacement cycle and more sustainable products.

So Best & Less is really, really positioned well to capitalise from this.

They’re also looking to open 11 new stores in FY23, so they’re on the expansion front. They have healthy inventory positions, strong margins compared to peers, and the pricing power that they have is really strong because they’re a stock developer as well. 

So yeah, Best & Less, I think, is one that we are very bullish on at Bell Potter, with a buy rating and a price target of $2.60. One to watch in 2023.

MF: It’s interesting to get your insights about Best & Less because it’s one retail stock that we don’t hear that much about.

GW: Exactly. I actually love looking at it.

The post The world is shifting into the sweet spot for these 2 ASX shares: analyst appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Bear market not done yet says Goldman Sachs, while Morgan Stanley predicts dividends will be the driver of returns in 2023
• Why Best & Less, Cettire, Life360, and Paradigm shares are sinking today
• 3 ASX 200 shares that hiked their dividends by more than 100% this year
• 3 ASX 200 shares that announced supersized dividends this week

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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a decline. The benchmark index fell 0.4% to 7,229.1 points.

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

ASX 200 expected to edge higher

The Australian share market looks set to edge higher on Tuesday despite a disappointing start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 9 points or 0.1% higher. In late trade in the United States, the Dow Jones is down 1.3%, the S&P 500 is down 1.5%, and the NASDAQ has tumbled 1.5% lower. Global markets have been spooked by COVID protests in China.

New Hope shares rated as a sell

The New Hope Corporation Limited (ASX: NHC) share price is overvalued according to analysts at Goldman Sachs. This morning the broker has reiterated its sell rating and $3.90 price target on the coal miner’s shares. The broker expects “Indonesian and Chinese coal production and demand destruction” to weigh on thermal coal price in 2023.

Oil prices mixed

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is up 1.5% to US$77.37 a barrel and the Brent crude oil price has fallen 0.25% to US$83.43 a barrel. Oil prices recovered from heavy intraday declines amid speculation OPEC could cut its output.

Annual general meetings

A couple of ASX 200 shares will be holding their annual general meetings today and could provide the market with trading updates at their events. These are rare earths producer Lynas Rare Earths Ltd (ASX: LYC) and private hospital operator Ramsay Health Care Limited (ASX: RHC).

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a difficult day after the gold price traded lower overnight. According to CNBC, the spot gold price is down 0.85% to US$1,739.2 an ounce. A rising US dollar appears to have weighed on the precious metal.

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

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More reading

• Here are the top 10 ASX 200 shares today
• Why Santos shares can kick inflation to the kerb: expert
• Here are the 3 most heavily traded ASX 200 shares on Monday
• Up 30% in a month, why the Evolution Mining share price can keep climbing: expert
• Which ASX 200 bank share stands to benefit the most from ‘good borrowers’?

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

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The good news for income investors is that the ASX 200 index is home to plenty of companies that pay dividends to their shareholders.

Two that could be top options for income investors to buy right now are listed below. Here’s what analysts at Morgans are saying about these ASX 200 dividend shares:

Coles Group Ltd (ASX: COL)

The first ASX 200 dividend share to look at is Coles.

It is one of the big two supermarket operators with over 800 supermarkets. In addition, it has over 900 liquor retail stores and over 700 Coles express stores. Though, the latter are in the process of being sold.

Coles isn’t resting on its laurels, though. As well as growing its network further, the company is aiming to make its operations more efficient through cost cutting and its focus on automation with Ocado.

Morgans is a fan of the company and has an add rating with a $19.50 price target on its shares. It is also forecasting fully franked dividends per share of 64 cents in FY 2022 and 66 cents in FY 2023.

Based on the current Coles share price of $17.09, this implies yields of 3.75% and 3.9%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX 200 dividend share that has been tipped as a buy is Wesfarmers.

It is the conglomerate behind a collection of businesses including retailers Bunnings, Kmart, Priceline, and Officeworks, as well as industrial businesses Coregas and Covalent Lithium. It was also previously the owner of Coles.

Thanks to the strength of this portfolio and its high quality management team, Wesfarmers has been able to reward its shareholders with a stream of dividends for well over a decade.

The good news is that Morgans is tipping this to continue in the coming years. Its analysts have pencilled in fully franked dividends per share of $1.82 in FY 2023 and $1.89 in FY 2024. Based on the current Wesfarmers share price of $48.52, this will mean yields of 3.75% and 3.9%, respectively.

Morgans currently has an add rating and $55.60 price target on its shares.

The post Broker says these top ASX 200 dividend shares are buys appeared first on The Motley Fool Australia.

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More reading

• Are Wesfarmers shares a buy for portfolio diversification?
• Battle of the dividends: Do Woolworths shares pay more than Coles?
• Almost ready to retire? How to generate $70k per year of passive income from ASX dividend shares
• Almost ready to retire? Here’s why I’d buy Coles shares for dividends
• Could buying Wesfarmers shares give you $10,000 in annual dividend income by retirement?

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

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If you have room for some new portfolio additions in December, then it could be worth considering the two ASX growth shares listed below.

Here’s what you need to know about these buy-rated shares:

Lovisa Holdings Limited (ASX: LOV)

The first ASX growth share to look at is fast-fashion jewellery retailer Lovisa. It could be a top long term option due to the popularity of its affordable offering, its focus on younger consumers, and its bold global expansion plans. In respect to the latter, the company has been expanding its footprint materially in recent years and shows no sign of stopping. In fact, it just revealed that it has added 47 net new stores so far in FY 2023, bringing its total to 676 stores across 26 countries. Management also advised that Lovisa’s first stores in Italy, Mexico, and Hungary are due to open in the coming weeks.

Macquarie currently has an outperform rating and $27.00 price target on its shares.

ResMed Inc. (ASX: RMD)

Another ASX growth share that could be in the buy zone for investors in December is ResMed. It is a medical device company with a focus on sleep treatment solutions. For many, many years, ResMed has been growing its revenue and earnings at a strong rate. This has been underpinned by the quality of its products and the growing prevalence of sleep disorders. In respect to the latter, management estimates that there are almost one billion people with sleep apnoea globally (with only ~20% diagnosed). In addition, it estimates that approximately half a billion people suffer from chronic obstructive pulmonary disease (COPD). Thanks to its leadership position in the market, this gives ResMed a long runway for growth over the 2020s and beyond.

Morgans is a fan of ResMed and currently has an add rating and $37.00 price target on its shares.

The post Analysts name 2 excellent ASX growth shares to buy in December appeared first on The Motley Fool Australia.

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More reading

• Top brokers name 3 ASX shares to buy next week
• I’d aim for $1 million in retirement buying just 10 ASX 200 shares
• Three comforting lessons for investors whose portfolio has been smashed versus the surprisingly good return of the ASX 200
• 4 ASX shares to buy in the sectors set to explode in 2023: expert
• ‘Dominant player’: Expert urges buying ASX shares in 2 near-monopolies

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 Lovisa Holdings Ltd and ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. The Motley Fool Australia has recommended Lovisa Holdings 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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The Sayona Mining Ltd (ASX: SYA) share price had a rough day today, finishing nearly 5% in the red.

Sayona Mining shares dropped 4.76% to close at 20 cents. For comparison, the S&P/ASX 200 Resources Index (ASX: XJR) descended 1.14% today.

Let’s take a look at what may have weighed on the Sayona Mining share price today.

The big picture

Sayona shares fell today, but they were not alone among ASX lithium shares. For example, the Liontown Resources Ltd (ASX: LTR) share price plummeted 7.5% today, while Core Lithium Ltd (ASX: CXO) shares fell 3.37%. Piedmont Lithium Inc (ASX: PLL) shares lost 4.14% today.

ASX lithium shares followed in the footsteps of their US counterparts on Friday. Shares in lithium giant Albemarle Corporation (NYSE: ALB) dropped 3.91%, while Livent Corp (NYSE: LTHM) shares sank 8.81% on the New York Stock Exchange.

Lithium shares may be struggling amid concern that demand for the battery-making material in China could fall, potentially impacting the global lithium price. Protests over COVID-19 lockdowns broke out in that country on the weekend.

The electric vehicle (EV) battery industry in China may have an oversupply of EV batteries by 2025, according to a report in the South China Post on Sunday. The article stated EV battery makers in mainland China were forecast to exceed electric car maker demand in China threefold in 2025.

The lithium carbonate price in China dropped 0.53% to 562,500 yuan on Friday. This followed a 1.74% drop in the lithium carbonate price last Thursday.

What’s happened with Sayona Mining recently?

Meanwhile, Sayona recently highlighted that its North American Lithium (NAL) operation restart was gaining momentum. Procurement is 98% complete, and construction is ramping up. Sayona advised the operation was on track to produce lithium by the first quarter of 2023.

Commenting on the news, Sayona managing director Brett Lynch said:

NAL is progressing rapidly towards next year’s restart, and our recent move to expand NAL’s potential resource and mine production capacity will only further enhance its long‐term productivity.

Sayona share price snapshot

The Sayona Mining share price has soared 42.8% in the past 12 months and 53.8% year to date.

For perspective, the Resources Index has jumped nearly 20% in the past year.

Sayona has a market capitalisation of $1.7 billion based on the current share price.

The post Why did the Sayona Mining share price have a tough run today? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Why Bank of Queensland, Bubs, City Chic, and Liontown shares are sinking
• Why is the Core Lithium share price in the red today?
• Why are ASX lithium shares getting slammed again on Monday?
• Why is the Liontown share price sinking 9% on Monday?

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

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The BrainChip Holdings Ltd (ASX: BRN) share price kicked off the week deep in the red on Monday.

Shares in the artificial intelligence (AI) start-up were down 5.44%, swapping hands for 69.5 cents apiece at the close of trade.

Other ASX tech shares closed lower, too, including Life360 Inc (ASX: 360), which slid 1.91% today, and Block Inc CDI (ASX: SQ2), which lost 2.70% in afternoon trade.

At a broader level, the S&P/ASX 200 Index (ASX: XJO) was also not off to a great start to the week, down 0.42% at the close.

So why did BrainChip shares — and much of the broader market — have such a lousy day? Let’s investigate.

What’s going on with the BrainChip share price?

What might be surprising is the absence of announcements from BrainChip to support a dive in its share price this afternoon.

However, there appears to be a sense of trepidation in the United States’ equities market that might be bleeding over into ASX tech shares.

The Nasdaq Composite Index (NASDAQ: .IXIC) has lost 0.27% since 18 November. The slip comes as the market holds its breath in anticipation of the Federal Reserve releasing a handful of economic reports later this week.

The reports will include the US personal consumption expenditures price index for October, and monthly employment figures for November, among others.

This week may see a watershed moment for equities

The release of these reports may help confirm some experts’ feelings that the US economy is cooling down. It was reported earlier this month that the US consumer price index (CPI) beat analyst forecasts, rising just 0.4% from September, which should be a bullish signal by all accounts.

However, the situation is not black and white. Although inflation appears to be falling, a softer labour market and reduced personal consumption could indicate that the US is heading toward or is already in, a recession. This would likely lead to a steeper sell-off in the equities market in the near future.

The flip side is that if these reports show that the US economy is still overheated, it may prompt the Fed to continue with an anticipated fifth consecutive 0.75% rate hike. This would put further pressure on stocks and keep worsening the odds of it performing a soft landing of the economy.

BrainChip investors could therefore be waiting on the sidelines to witness the release of these reports, as well as see if the Fed will continue with its aggressive monetary policy or change to a more dovish tune.

BrainChip share price snapshot

The BrainChip share price is up 2.21% year to date. It has performed better than the broader market this year, with the ASX 200 down 2.89% over the same period.

The company’s market capitalisation is around $1.2 billion.

The post Why did the BrainChip share price slide 5% on Monday? appeared first on The Motley Fool Australia.

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More reading

• 5 of the craziest things making news on the ASX this week
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today
• Why did the BrainChip share price leap 7% today?
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Matthew Farley 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 Block, Inc. and Life360, Inc. The Motley Fool Australia has positions in and has recommended Block, Inc. 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) broke a four day winning streak on Monday. The Index closed 0.42% lower at 7,229.1 points.

And weighing it down was none another than the S&P/ASX 200 Energy Index (ASX: XEJ). It plunged 1.7% today amid falling oil prices.

It has been broadly reported that WTI crude oil and Brent crude oil each hit their lowest points since December 2021 today. The former fell to around US$74 a barrel while the latter slipped below US$82 a barrel.

The S&P/ASX 200 Materials Index (ASX: XJO) also struggled on Monday, sliding 0.9% despite major commodity prices rising.

Gold futures price rose 0.5% to US$1,754 an ounce on Friday while iron ore futures lifted 0.9% to US$92.74 a tonne.

However, it wasn’t all bad. The S&P/ASX 200 Communications Index (ASX: XTJ) led the market, gaining 0.6%, while the S&P/ASX 200 Real Estate Index (ASX: XRE) lifted 0.5%.

All in all, four of the ASX 200’s 11 sectors ended the day in the green. But which stock outperformed all others to take today’s crown? Keep reading to find out.

Top 10 ASX 200 shares countdown

While many of the market’s biggest energy stocks struggled today, their coal-focused counterparts outperformed.

Indeed, today’s best performer was New Hope Corporation Limited (ASX: NHC). Its share price lifted 5% despite the company’s silence.

Today’s biggest gains were made by these shares:

ASX-listed company	Share price	Price change
New Hope Corporation Limited (ASX: NHC)	$5.68	5.38%
Whitehaven Coal Ltd (ASX: WHC)	$9.43	3.97%
Brickworks Limited (ASX: BKW)	$22.53	3.21%
Seek Limited (ASX: SEK)	$21.96	2.23%
News Corp (ASX: NWS)	$27.70	2.21%
National Storage REIT (ASX: NSR)	$2.45	2.08%
REA Group Limited (ASX: REA)	$123.35	1.84%
Coronado Global Resources Inc (ASX: CRN)	$1.985	1.79%
Centuria Industrial REIT (ASX: CIP)	$3.20	1.59%
Cochlear Limited (ASX: COH)	$212.66	1.51%

Our top 10 shares countdown is a recurring end-of-day summary to let you know which companies were making big moves on the day. Check in at Fool.com.au after the weekday market closes to see which stocks make the countdown.

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• The Whitehaven chair just cashed out $1.8 million in shares. Here’s the latest
• Up 30% in a month, why the Evolution Mining share price can keep climbing: expert
• Which ASX 200 bank share stands to benefit the most from ‘good borrowers’?
• New Hope shares have soared 152% in 2022. Is it time to cash in?

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 Brickworks and Cochlear Ltd. The Motley Fool Australia has positions in and has recommended Brickworks. The Motley Fool Australia has recommended Cochlear Ltd., REA Group Limited, and SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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It’s no secret that inflation has become a top-of-mind concern for ASX investors in 2022. Rising prices weren’t an issue for so long that many investors forgot all about inflation. But that was until 2022 brought it back with a vengeance.

Back in October, the Australian Bureau of Statistics revealed that the annual inflation rate in the Australian economy was running at a hot 7.3%. That’s the highest level in more than 20 years.

So how do investors use ASX shares to beat inflation? One ASX fund manager has an idea.

Santos: An ASX 200 oil share to beat inflation?

Blake Henricks of Firetrail Investments recently spoke to Livewire about the challenges of inflation. Henricks named Santos Ltd (ASX: STO) shares as one of the ASX investments he’s looking at to beat inflation.

Henricks stated that he believed that energy shares are a great place to look for inflation-beating returns. That’s because much of the inflation the world is experiencing this year has been caused by rising energy prices.

Remember, higher oil, gas and coal prices translate into higher transportation and electricity costs, which flow through to every corner of the economy.

Here’s some of what Henricks had to say on the ASX oil share:

It would be in the energy sector, I’d pick Santos… So Santos is undertaking two large projects at the moment. Once they’re completed, you’re going to have 20 years of very stable volumes.

And it’s pricing in US$60 a barrel at the moment, current prices are around US$90, so they’re generating a lot of free cash flow. And with low multiple, real assets and inflation hedge, Santos would be the one for me.

So there you have it: an inflation-hedged investment priced at a low multiple. Well, that’s what this ASX expert reckons anyway.

Santos shares have had a solid year this year. The ASX oil share is up 9.6% year to date in 2022, and up 13.4% over the past 12 months.

At the last Santos share price, this energy share had a dividend yield of 2.7%.

The post Why Santos shares can kick inflation to the kerb: expert appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 on Thursday
• 5 things to watch on the ASX 200 on Tuesday
• 5 things to watch on the ASX 200 on Monday
• What dragged on the Santos share price today?

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 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 a broad range of businesses. And some of these ASX 200 shares may be opportunities during the discount season for shopping.

Many businesses that were COVID-19 winners have turned into post-COVID losers. But I think some of the declines may have been overdone. Yes, there are likely to be earnings declines compared to strong COVID earnings. But the share prices are already down heavily.

In my view, long-term global growth could make them opportunities. Let’s check a couple out:

ARB Corporation Limited (ASX: ARB)

ARB provides four-wheel drive accessories. It boasts that its accessories were built for the harsh conditions of the Australian outback, meaning that its products are designed to be tough and withstand the extremes four-wheel drive enthusiasts may put them through.

But investors are not so enthusiastic about the ASX 200 share at the moment. Since the start of the year, the ARB Corporation share price has dropped almost 50%.

FY22 was a solid year, with 8.1% growth of net profit after tax (NPAT) to $122 million and the total dividend rising by 4.4%.

The company’s non-Australian revenue has been growing, including as a percentage of total sales. FY22 export sales grew by 17.4%.

ARB also continues to grow its store network. New car models have been released to the market. A Texas distribution centre will be opened in Dallas in January 2023 which will give ARB USA two-day shipping to the majority of the USA, while also supporting growth in Mexico and Central America.

The business said that sales in Southeast Asia, Europe, Africa and the Middle East are all “trending positively”. The collaboration with Ford has also been “well received” by customers.

However, the company is facing lower short-term sales and higher costs because of inflation. But, the order book remains healthy and it’s expecting stronger sales in the FY23 second half and into FY24.

Commsec numbers imply the ARB share price is valued at 22 times FY23’s estimated earnings.

Reece Ltd (ASX: REH)

Bathroom supplier Reece is another ASX 200 share that has suffered heavily this year. The Reece share price is down around 45% year to date. It hasn’t seen a large recovery like some other ASX shares have in the last few weeks.

But, Reece isn’t just an Australian bathroom and plumbing product business anymore. It also has a network of 204 branches in the middle and south of the US. As well, it’s involved in irrigation and pools, commercial heating, ventilation, air conditioning and refrigeration, and civil construction (including water mains, sewerage, drainage, fire services, gas mains, and telecommunications).

I think that the business is more defensive than some investors are giving it credit for (given how heavily the share price is down).

With the US business, it has a long-term strategy. It’s refurbishing stores, opening new stores, and planning to make acquisitions.

FY23 started strongly, with the first quarter showing 28.8% revenue growth to $2.28 billion. Australia-New Zealand sales were up 13.9%, while US sales grew 33.1% on a constant currency basis. While this may not be reflective over the rest of the year, it has given FY23 a strong start. The company continues to focus on controlling costs and investing for the future, though demand is expected to soften in the second half.

It’s valued at 24 times FY23’s estimated earnings according to Commsec.

The post Cyber Monday: could these ASX 200 shares be on sale? appeared first on The Motley Fool Australia.

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

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Given how many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Fletcher Building Limited (ASX: FBU)

According to a note out of Goldman Sachs, its analysts have initiated coverage on this building products company’s shares with a buy rating and $5.90 price target. Goldman notes that Fletcher Building’s shares are trading on a forward PE ratio of 8.5x and at a 41% discount to the S&P/ASX 200 index. It points out that this is notably lower than average multiples and broadly in line with GFC levels. And while the broker accepts that its key markets are near cyclical highs, it feels this is more than priced in. The Fletcher Building share price is trading at $4.67 today.

IDP Education Ltd (ASX: IEL)

A note out of UBS reveals that its analysts have retained their buy rating on this language testing and student placement company’s shares with a slightly trimmed price target of $35.25. The broker has been looking at visa data and believes that growth in key markets points to positive trading conditions for IDP Education. Overall, it is positive on the company’s outlook and sees plenty of value in its shares at the current level. The IDP share price is fetching $29.57 on Monday.

Monash IVF Group Ltd (ASX: MVF)

Analysts at Macquarie have retained their outperform rating and $1.30 price target on this fertility treatment company’s shares. Although IVF treatments fell slightly in October according to Medicare data, the broker notes that this followed a big increase in September. In addition, Macquarie believes Monash IVF is well-placed to grow quicker than the market and grow its share. This bodes well for its earnings growth in FY 2023 and beyond. The Monash IVF share price is trading at $1.00 this afternoon.

The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Are these the ASX growth shares to buy for 2023?
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• Leading brokers name 3 ASX shares to buy today
• Experts name 3 of the best ASX growth shares to buy in November

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 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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