The Santos Ltd (ASX: STO) share price is off to a strong start on Thursday morning.

At the time of writing, shares have jumped from the opening bell and now trade more than 2% higher at $7.86.

Meanwhile, the S&P/ASX 200 Energy Index (ASX: XEJ) has pushed more than 3% into the green, making it the best performing sector on last check.

What’s up with the Santos share price?

Helping lock in early gains for hydrocarbons player is price action in the oil and natural gas markets overnight.

Brent Crude oil currently trades at US$94.50, whilst EU gas contracts have spiked another 10% overnight to now rest back in line with March 2022 ranges.

“[We] think we’re going to stay in a range – [we] don’t think US$70 per barrel is in the cards, but anything over US$100 is not justified,” said RJO Futures in a recent note to clients.

Adding more fuel (or oil) to the fire, are remarks from the International Energy Agency (IEA) stating it expects a high amount of gas-to-oil switching for heating purposes coming into a European winter.

Meanwhile, a small but sharp pullback in the US Dollar has also reportedly provided a non-market tailwind for the oil price, Reuters reports.

The culmination of events has been a net positive for the Santos share price today, with investors rallying the stock on a volume of 4.2 million shares in the first hour of trading.

Gains in today’s session extend on yesterday’s resiliency for Santos on the chart, with the entire Energy sector catching a bid due to weaker US inflation data on Wednesday.

The US core CPI was driven in large by price increases in electricity and natural gas secondary to the many macro-variables at play.

Despite this, thinking is that the lofty inflation print will result in a number of further interest rate hikes from the US Federal Reserve and the Reserve Bank of Australia (RBA) down the line.

With that, energy stocks continue to look increasingly attractive at current valuations.

In the last 12 months, the Santos share price has gained 26.5%.

The post Here’s why the Santos share price is rebounding on Thursday appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Why is the Santos share price escaping relatively unscathed today?
• 5 things to watch on the ASX 200 on Tuesday
• Santos share price dips amid sell-off rumours
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Zach Bristow 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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After over four months in suspension, the AVZ Minerals Ltd (ASX: AVZ) share price was scheduled to return to trade on Thursday.

However, once again, this morning the embattled lithium developer has pushed back its return date.

What’s happening with the AVZ share price?

According to today’s update, the AVZ share price isn’t expected to return to trade for almost a month.

It commented:

[AVZ Minerals] refers to the Company’s request for an extension to its voluntary suspension dated 1 September 2022, in relation to the finalisation and release of an announcement with respect to its mining and exploration rights for the Manono Lithium and Tin Project (Manono Project).

The Company advises that the subject of the initial trading halt request remains incomplete and requests a further extension to the voluntary suspension until the commencement of trade on 10 October 2022 or an earlier announcement to the market regarding its mining and exploration rights for the Manono Project.

Though, the company has given shareholders reason for hope. It added:

The Company is confident of a positive outcome for it’s [sic] shareholders, resultiung [sic] in the re-instatement of trading in its securities.

What’s actually going on?

The company is currently facing arbitration proceedings from Jin Cheng Mining in relation to an ownership dispute for the Manono Lithium and Tin Project.

This has caused significant uncertainty, as there are various potential project ownership scenarios that could have a major impact on the company’s valuation.

But what AVZ will ultimately be left owning is impossible to say at this stage. So, investors will just have to wait for the arbitration proceedings to complete and go from there.

AVZ and Jin Cheng will be convened to a case management conference this month with a view to setting the timetable of the arbitral proceedings and the execution of the terms of reference.

The post Will the AVZ Minerals share price ever resume trading? appeared first on The Motley Fool Australia.

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More reading

• What’s going on with the AVZ share price?
• 5 ASX 200 lithium shares with the lowest levels of debt
• Why is the AVZ Minerals share price making news on Monday?
• Why these 3 ASX shares could be in for a massive boost this month
• 5 things to watch on the ASX 200 on Monday

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

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The Tyro Payments Ltd (ASX: TYR) share price is in the red this morning, down 2.6%.

Tyro shares closed flat yesterday at $1.34 apiece. A good performance considering the All Ordinaries Index (ASX: XAO) fell by 2.5%. Tyro shares are currently trading for $1.30.

So, what are ASX investors considering today?

What are ASX investors considering?

The Tyro share price is sliding after the financial technology company announced the appointment of a new CEO.

Jonathan (Jon) Davey will take over the helm on 3 October. Davey joined the business in May 2021, after Tyro acquired health fintech Medipass, which he managed prior to the acquisition. Davey is currently CEO of Tyro’s Health business.

Robbie Cooke, the current CEO, will continue with Tyro in an advisory position through 31 December to “enable a seamless transition”.

Commenting on the executive appointment that looks to be pressuring the Tyro share price today, Tyro’s chair, David Thodey said:

Having completed a thorough search process, it is pleasing to appoint such a strong internal candidate. Jon is a seasoned technology executive who brings relevant experience from a 30-year career working in financial services, both within corporate and start-up environments.

Jon has been a strong member of the Tyro executive team for close to 18 months so he will hit the ground running, focusing on expediting the delivery and execution of our strategy.

Thodey extended his thanks to Cooke “for his significant contribution over his nearly five years as CEO”.

Davey added:

Tyro is one of Australia’s first fintech companies and continues to be one of the country’s fastest growing technology and innovation companies. I am thrilled to have the opportunity to lead the business into a new and exciting chapter; delivering value for our shareholders, delighting our customers, and ensuring Tyro is a great place to work.

Tyro share price snapshot

Despite gaining 28% last Thursday after rejecting a takeover bid, the Tyro share price remains down 56% year-to-date. That compares to an 11% loss posted by the All Ordinaries so far in 2022.

The post Tyro share price slides on CEO news appeared first on The Motley Fool Australia.

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More reading

• Tyro share price dips amid Potentia pressure rumours
• Why Chorus, MA Financial, Tyro, and Vulcan Energy shares are dropping
• Tyro share price climbs another 10%. Could a fresh takeover bid be on the horizon?
• Nitro now Tyro: Could there be ‘Potentia-l’ for other ASX tech shares?
• Tyro share price rallies 31% following rejected takeover bid

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 positions in and has recommended Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. 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 Mineral Resources Limited (ASX: MIN) share price is higher this morning amid the revelation of a $12.6 million lithium buying spree.

The S&P/ASX 200 Index (ASX: XJO) minerals giant snapped up an additional 6 million shares in ASX lithium explorer Global Lithium Resources Ltd (ASX: GL1) on Tuesday. It announced its newly reinforced stake after the market closed last night.

The Mineral Resources share price is trading 0.59% higher at $71.87 at the time of writing.

For comparison, the ASX 200 has risen 0.22% while shares in Global Lithium are up 7.32% at $2.64.

Let’s take a closer look at the ASX 200 favourite’s latest investment.

Mineral Resources share price rises on Thursday

The Mineral Resources share price is lifting on Thursday, recovering some of the 3.2% tumble it recorded yesterday amid the ASX 200’s suffering.

Its gain comes after the company disclosed its newly upped stake in ASX lithium explorer Global Lithium.

The company snapped up 6 million shares in the smaller minerals stock for around $2.10 apiece on Tuesday.

That sees it holding 16.1 million shares in Global Lithium, representing 8% of the lithium explorer’s issued stock. That’s an increase on its previous 5.12% interest.

Global Lithium chair Warrick Hazeldine commented on the company’s increased investment in its ASX 200 counterpart:

We are pleased that one of our major shareholders MinRes continues to build its stake in [Global Lithium], which clearly demonstrates their strong support in both [Global Lithium]’s assets and the team.

As we continue to progress our programs on the ground at both Manna and Marble Bar, it is truly an exciting time to be part of the global energy transition market.

The ASX 200 giant first bought into the lithium hopeful back in March. Then, it snapped up a 5% interest as part of a $30 million capital raise.

Then, Mineral Resources spent $13.6 million on 10.1 million Global Lithium shares, with the stock priced at $1.35 apiece.

The post Mineral Resources share price lifts amid lithium stock buy-up appeared first on The Motley Fool Australia.

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More reading

• The Vulcan share price sank 7% today in ASX sea of red
• Global Lithium share price shrugs off inflation woes to leap higher
• 3 ASX 200 mining shares that smashed all-time highs on Tuesday
• Global Lithium share price backtracks despite ‘highest ever grade’ discovery
• With most investors thinking the next big move in the stock market is down, Warren Buffett says times like these are your friend

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

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The Myer Holdings Ltd (ASX: MYR) share price is falling on Thursday morning.

In response to the department store operator’s full year results, its shares have dropped 3% to 61.5 cents.

Though, it is worth highlighting that the Myer share price rose 6% yesterday despite the market selloff.

Myer share price down despite doubling profits

• Total sales up 12.5% to $2,989.8 million (comparable sales up 15%)
• Online sales up 34% to $722.8 million
• Operating gross profit growth of 8.5% to $1,145.2 million
• Net profit after tax up 103.8% to $60.2 million excluding JobKeeper
• Fully franked final dividend of 2.5 cents per share, bringing full year dividend to 4 cents per share
• Net cash up to $74 million
• Outlook: Strong start to FY 2023

What happened in FY 2022?

For the 12 months ended 30 July, Myer reported a 12.5% increase in sales to $2,989.8 million. This was driven by a 15% lift in comparable store sales and a 34% jump in online sales to $722.8 million. The latter now represents almost 25% of its overall sales.

This was underpinned by its addition of almost 600,000 new active customers in FY 2022, bringing its total active customers to 3.7 million. Importantly, the new additions were largely from younger demographics.

Myer’s operating profit grew a touch slower at 8.5% to $1,145.2 million. This reflects a 141-basis points reduction in its margin to 38.3% due to COVID-related supply chain costs and increased promotional activity.

Nevertheless, on the bottom line, the company reported a 103.8% increase in net profit after tax to $60.2 million if JobKeeper support is excluded from the prior year.

This allowed the Myer board to declare a fully franked 2.5 cents per share final dividend, which brought its full year dividend to 4 cents per share.

Management commentary

Myer’s CEO, John King, was very pleased with the company’s performance in FY 2022

The full year results demonstrate again how the Customer First Plan continues to deliver and continues to gain momentum, with our best second half profit result in nearly 10 years and another dividend paid to our shareholders.

We have clearly established strong digital and data credentials in recent years, evidenced by the growth in online and MYER one, however the true strength of our business is its multi-channel opportunity. The combination of our online performance and our store network returning to growth has allowed us to navigate the early challenges in the year and importantly capitalise on the new opportunities arising.

Outlook

King revealed that Myer’s dividend payment is a sign of confidence in the company’s outlook, particularly given its incredibly positive start to FY 2023. He commented:

Myer will again pay a dividend demonstrating our confidence in the momentum being built as we move into FY23, with department store sales growth in the first six weeks up 74.8% against last year and 21.8% over pre COVID levels demonstrating our best sales start to a new financial year since 2006.

Despite the broader economic uncertainty, we are well placed with the right value based proposition of affordable and aspirational brands, a performing store and online offer underpinned by a leading loyalty program providing greater value and choice for our customers.

The post Myer share price falls despite FY22 profit surge appeared first on The Motley Fool Australia.

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More reading

• Why Leo Lithium, Myer, Neuren, and Peter Warren shares are rising today
• Down 80% since listing, could this ASX retail share be set for a mega-merger?

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

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The South32 Ltd (ASX: S32) share price has taken a tumble on Thursday.

In morning trade, the mining giant’s shares are down over 7% to $3.99.

Why is the South32 share price is tumbling?

The good news for shareholders is that the weakness in the South32 share price on Thursday has nothing to do with another market selloff or a commodity price collapse. Instead, it is almost entirely due to the company’s shares trading ex-dividend this morning for its latest dividend.

When a share trades ex-dividend, it means that the rights to an upcoming dividend payment now belong to the current holder of the shares and won’t transfer to buyers.

As a result, a company’s share price will usually fall in line with the dividend to reflect this. After all, you wouldn’t want to pay for something that you won’t be receiving.

The South32 dividend

Last month when South32 released its full year results, the company declared a fully franked final dividend of 14 US cents per share and a fully franked special dividend of 3 US cents per share.

Combined, this equates to a fully franked ~25.2 cents per share dividend in local currency, which represents a 5.8% dividend yield based on the South32 share price at yesterday’s close.

Should you invest?

The team at Morgans are very positive on the South32 share price. Late last month, the broker put an add rating and $5.50 price target on the company’s shares.

This implies potential upside of 38% for investors over the next 12 months. The broker commented:

We see attractive long-term value potential in S32 from de-risking of its growth portfolio, the potential for further portfolio changes, and an earnings-linked dividend policy.

The post Why is the South32 share price sinking 7%? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Keen on bagging the latest South32 dividend? You’ll need to be quick
• Here are 3 ASX 200 shares turning ex-dividend tomorrow
• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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

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This week, we’ve seen a number of companies in the S&P/ASX All Ordinaries Index (ASX: XAO) take away entitlements to their upcoming dividend payments.

Tomorrow, three more ASX All Ords shares will be going ex-dividend.

In other words, in order to be eligible to receive these dividends, investors will need to hold shares by the time the market closes today. Let’s take a closer look.

Carsales.com Ltd (ASX: CAR)

ASX All Ords share Carsales is the highest-profile name going ex-dividend on Friday.

Today will be the last day to snare Carsales’ fully franked final dividend of 24.5 cents per share, which will be paid on 17 October.

Alternatively, investors will have until 20 September to opt-in to the company’s dividend reinvestment plan (DRP).

Carsales recently handed in its FY22 report, delivering adjusted revenue of $510 million, up 16% from the prior year, and adjusted EBITDA of $272 million, up 7%.

This performance was driven by strong domestic results in Carsales’ private and media segments, along with contributions from recent acquisitions. 

Across the financial year, Carsales declared total dividends of 50 cents, up 5% compared to FY21. 

Carsales shares are currently flashing a trailing dividend yield of 2.3%. With the benefit of franking credits, this yield drives up to 3.3%.

Peet Limited (ASX: PPC)

Property developer Peet is another ASX All Ords share turning ex-dividend tomorrow.

As of tomorrow, Peet shares will be trading without a fully franked final dividend of 4 cents per share.

Despite Peet settling 16% fewer lots in FY22, revenue came in relatively flat at $3.2 billion.

But below the revenue line is where the company shined, delivering record earnings as net profit after tax (NPAT) surged 84% to $52 million.

Peet attributed this to price growth across its developing and selling projects, combined with its ongoing focus on cost management and the changing product mix.

On the back of this performance, Peet hiked its total FY22 dividends by 79% to 6.25 cents, fully franked. This puts Peet shares on a trailing dividend yield of 5.2%, which grosses up to 7.5%.

Supply Network Limited (ASX: SNL)

Last but not least, Supply Network will be trading tomorrow without a fully franked final dividend of 20 cents per share. The company has locked in a payment date of 3 October.

Shareholders will also have until 22 September to decide to participate in the company’s DRP. Those who opt-in will receive a 2.5% discount for their troubles.

The commercial aftermarket parts business punched in 22% top-line growth in FY22 as revenue came in at $199 million. The company said this result was underpinned by strong economic growth, positive industry trends, and solid business performance.

NPAT jumped by 45% to $20 million, outstripping revenue growth, helped by steady gross margins and further gains in operating efficiency.

Across the financial year, Supply Network declared total dividends of 32 cents, up 60% from the annual dividends of 20 cents in FY21.

As a result, Supply Network shares are currently sporting a trailing dividend yield of 3%, which grosses up to 4.3%.

The post 3 ASX All Ords shares turning ex-dividend tomorrow appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 directors who have been selling shares in their companies this week
• Another ASX 200 CEO has just offloaded almost $3m worth of shares in his company. Here’s the lowdown
• 3 ASX All Ords shares that leapt higher on FY22 results today

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Supply Network Limited. The Motley Fool Australia has positions in and has recommended Supply Network Limited. The Motley Fool Australia has recommended carsales.com 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

Tuesday was a painful day for stock market investors, with the Dow Jones Industrial Average (DJINDICES: ^DJI) falling more than 1,275 points and the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) dropping 4% to 5%. Market participants often hope for at least a modest bounce after a tough day, but Wednesday morning didn’t suggest any such relief was forthcoming. Futures contracts on all three stock indexes were down slightly as of 8:15 a.m. ET.

Some investors in cryptocurrencies have believed that digital assets would be able to provide some valuable diversification in the event of a stock market decline. Unfortunately, that hasn’t been the case over the past couple of years, as the prices of Bitcoin (CRYPTO: BTC) and other popular cryptocurrencies have tended to track closely in line with the Nasdaq. Now, though, some digital investors are asking whether Bitcoin and its peers can regain the positive momentum that took them to all-time highs last year even if stocks stay mired in a bear market.

Crypto winter continues

Cryptocurrencies certainly haven’t escaped the rout that started on Tuesday. Bitcoin has fallen 11% in the past 24 hours and now stands just above the $20,000 mark. Ethereum (CRYPTO: ETH) is down almost 9% since this time Tuesday, falling back below $1,600 even as proponents of the smart-contract network point to the coming Merge event as a landmark moment for the digital asset.

Given the immediate cause of the sell-off across several asset classes, it’s not terribly surprising to see Bitcoin, Ethereum, and their crypto peers losing significant ground. August’s inflation reading of 0.1% didn’t seem like all that big a deal, but given that it came in the face of plunging gasoline prices, many were surprised not to see a modest drop. Moreover, as signs of more entrenched inflationary pressures appeared in different categories of goods and services, market participants believed the odds were better that the Federal Reserve would raise interest rates even higher to protect the economy from allowing inflation to become a long-term problem.

Bitcoin has at times hailed itself as a hedge against inflation, given the fixed supply of the digital asset. However, now that a large financial market has emerged surrounding Bitcoin and other cryptocurrencies, the dynamics that affect institutional investors now play a key role in price movements. In particular, when interest rates rise, those investors who rely on borrowed money in order to make leveraged investments in cryptocurrencies often have to pull back from their positions.

Can crypto break off from the stock market?

In that light, cryptocurrencies have in some ways suffered from their success in becoming mainstream assets. As regular investors become involved in the crypto markets, their behavior influences prices in the same way it influences stock prices.

However, it’s unfair to paint all cryptocurrencies with the same broad brushstroke. For Bitcoin and Ethereum, their notoriety and popularity make them more susceptible to broader financial market influences. But for smaller digital asset projects that are just getting started, fundamental aspects of whether newer cryptocurrencies can add value and provide useful applications for potential users can outweigh the influence of broad market trends.

Both Bitcoin and Ethereum would need to triple in price from current levels in order to set new all-time highs. Those abrupt upward cycles have happened numerous times in the past, so counting the pair of digital asset leaders out is ill advised. In order to break its connection to the stock market, though, the cryptocurrency world will once again have to persuade investors broadly that its vision of the future can overcome traditional macroeconomic challenges. That’s a tall order, but those who’ve bet against digital asset innovators in the past haven’t fared well over the long haul.

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

The post As stocks swoon, can crypto get its mojo back? appeared first on The Motley Fool Australia.

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More reading

• Why Bitcoin and Solana are sinking today
• Why Bitcoin plunged on Tuesday
• The Bitcoin price has tumbled 50% in 2022 but this expert says crypto ‘is here to stay’
• What’s supporting the Dogecoin price in September?
• Why Bitcoin and Solana jumped on Monday

Dan Caplinger 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 Bitcoin and Ethereum. 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.

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

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ASX healthcare shares have been strong performers over the years, driving a lot of the gains in the S&P/ASX 200 Index (ASX: XJO).

The broader ASX 200 index has climbed 20% over the last five years. But the S&P/ASX 200 Health Care Index (ASX: XHJ) has shot the lights out in comparison, pumping out an 88% gain.

Sticking with this healthcare theme, let’s square up two of the biggest Aussie healthcare success stories: CSL Limited (ASX: CSL) and Cochlear Limited (ASX: COH).

Compare the pair

Before I present a bull case for each of these ASX 200 healthcare stalwarts, here’s a quick summary of how they stack up across some headline metrics.

	CSL	Cochlear
Market capitalisation	$140 billion	$14 billion
FY22 revenue	US$10.1 billion (AU$14.9 billion)	AU$1.6 billion
FY22 revenue growth	2%	10%
FY22 underlying profit	US$2.3 billion (AU$3.4 billion)	AU$277 million
FY22 underlying profit growth	-5%	18%
Price-to-earnings ratio	41x	49x
Trailing dividend yield	1.1%	1.4%

The case to inject CSL shares into your portfolio

With roots in the Australian government and a history dating back to World War I, CSL now competes on the world stage as the fifth-largest global biotech company.

CSL generates the bulk of its earnings through its Behring division, which provides treatments for serious and rare diseases.

CSL’s other business, Seqirus, is smaller but no less impressive, standing as the second-largest flu vaccine maker in the world.

A recent high-profile acquisition will also see Vifor Pharma enter the fold, diversifying CSL’s footprint into the specialty pharmaceuticals business.

CSL offers an earnings profile that is both growing and defensive; a powerful combination. 

Prior to COVID, the company consistently delivered top-line growth almost like clockwork as the plasma therapeutics market grew and more people around the world gained access to CSL’s products.

What’s more, the company ploughs around US$1 billion each year into research and development, bolstering CSL’s market-leading position in innovation.

This R&D effort supports a healthy pipeline of new potential products that could drive further revenue growth in the future.

At the moment, CSL has nine late-stage R&D programs that it expects to complete between FY23 and FY26.

The highest-profile program is CSL112, a treatment to reduce the risk of recurrent cardiovascular events, such as heart attacks. It’s CSL’s largest program yet, with the phase 3 clinical trial enrolling more than 17,000 patients from roughly 1,000 medical centres around the world.

Why are CSL shares defensive?

Given the nature of CSL’s life-saving and life-extending products, demand typically holds up throughout every stage of the economic cycle.

What’s more, its plasma business can actually benefit from rising unemployment in the United States, where donors are paid.

On a per litre basis, the single-biggest cost for CSL Behring is donor fees to collect blood plasma. This plasma is a crucial component for manufacturing CSL’s treatments.

When unemployment rates rise, more people will likely look for alternative sources of income. And donating plasma can earn regular donors upwards of US$200 a month. 

With more people coming through the door to donate plasma, CSL’s average cost per litre of plasma collected reduces due to the fixed costs of running a centre.

Plus, as donor eagerness rises, CSL doesn’t have to compete as aggressively against other centres. In this way, the company doesn’t need to rely as heavily on extra financial incentives and bonuses to attract donors.

Why Cochlear shares could be a sound investment

The bull case for Cochlear shares is supported by positive industry dynamics and the potential for a greater market presence.

The World Health Organisation estimates there are more than 60 million people worldwide who experience severe, profound, or complete hearing loss.

However, the market remains largely underpenetrated. Less than 5% of the people that could benefit from an implantable hearing solution have received one.

What’s more, while Cochlear is a top dog in its field, its slice of the overall pie is muted.

The ASX 200 business has more than 60% market share of the global cochlear implant market. But this share dwindles to just 4% in the broader severe or higher hearing loss segment where hearing aids dominate. 

Cochlear implants vs hearing aids

Hearing aids and cochlear implants are both options for people suffering from severe or higher hearing loss. But there are clear distinctions between the two. And cochlear implants can deliver superior outcomes, especially for those with profound or complete hearing loss. 

Hearing aids are non-invasive and simply make sounds louder. In contrast, a cochlear implant bypasses damaged portions of the ear to deliver sound signals to the auditory nerve, which then directs the signals to the brain. 

A cochlear implant has two parts: an internal receiver, which is implanted under the skin behind the ear; and an external sound processor, which is worn like a hearing aid.

The beauty here, for both recipients and shareholders alike, is that Cochlear continues to roll out new sound processors that are compatible with prior generation implants. In this way, recipients are able to upgrade to the latest technology, all the while Cochlear collects more revenue from its existing user base.

Cochlear has sold more than 700,000 implants to date, representing a vast recipient base to upsell. 

The company typically launches a new product every four to five years. Its current flagship sound processor, Nucleus 7, was rolled out in 2017.

So, on cue, Cochlear has revealed it will launch the new Nucleus 8 processor towards the end of this year. The company remains hush on the details but this will propel revenue as recipients upgrade their devices.

Further supporting Cochlear shares are regulatory tailwinds as product indications broaden and funding reimbursement expands around the world.

Better ASX 200 healthcare buy

I believe there’s a compelling investment case for both of these ASX 200 healthcare shares.

In particular, I like the industry tailwinds supporting each company’s future growth runways. And I especially like their fortified, market-leading positions in their respective industries, where barriers to entry are also high.

But if I had to choose, I’d be leaning towards CSL shares.

With a long track record of delivering high returns on capital, industry-leading efficiency, a history of R&D success, and a more defensive earnings profile, I’d be happy to hold CSL shares as a long-term investment in my portfolio.

The post ASX 200 better buy: Cochlear or CSL shares? appeared first on The Motley Fool Australia.

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More reading

• The CSL share price dips as the ASX 200 dives on Wednesday
• Can the CSL share price regain its 52-week high in 2022?
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Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. and Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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 Wesfarmers Ltd (ASX: WES) share price has trailed the S&P/ASX 200 Index (ASX: XJO) through 2022 so far. But does its underperformance leave it squarely in the buy basket?

Well, that depends on who you ask. However, one broker has tipped a near-20% upside for the stock.

The Wesfarmers share price last traded at $46.45, having plunged 4.25% alongside the majority of the market yesterday. That leaves the stock 22.6% lower than it was at the start of the year.

For comparison, the ASX 200 has dived 10% year to date.

Let’s take a look at what experts are tipping for the mammoth retail-focused conglomerate’s stock.

Is now the time to snap up Wesfarmers shares?

Brokers and fundies offer mixed opinions when it comes to predicting the future of the Wesfarmers share price.

Battling for the bears is Alto Capital’s Tony Locantro. He pointed to the company’s full-year earnings, noting its “strong share price amid economic headwinds” appears to represent a “profit-taking opportunity”, courtesy of The Bull.

The company’s after-tax profits slumped 1.2%, or 2.9% excluding significant items, last financial year to $2.35 billion as many of its crown jewel retail businesses struggled.

While Bunnings boasted $2.2 billion of pre-tax earnings – a 0.9% year-on-year increase – those of Kmart Group fell nearly 40% to $418 million and Officeworks’ dropped close to 15% to $181 million amid lockdowns in the first half.

On top of that, Wesfarmers declared a $1 dividend, boosting its full-year offerings 1.1% year-on-year to $1.80 per share.

Goldman Sachs is also sceptical of the company’s future. It has a sell rating and a $38.70 price target on the stock.

Meanwhile, in the bullish corner is broker Morgans. Analyst Alex Lu said the company’s earnings were “comfortably above expectations” in August.

Morgans has also dubbed Wesfarmers’ businesses “one of the highest quality retail portfolios in Australia”, as my Fool colleague James reports. The broker continued:

We see the pullback in the share price as a good entry point for longer term investors.

It has slapped Wesfarmers shares with a $55.60 price target and an add rating ­– representing a potential 19.69% upside.

Meanwhile, UBS has a buy rating and a $55 price target on the stock.

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

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More reading

• Wesfarmers share price drops 4%: Time to buy?
• Why this top broker is tipping 15% upside for the Wesfarmers share price
• How I’d invest $10,000 in ASX shares if I were saving for a house
• Brokers rate these ASX dividend shares as buys
• Buying Wesfarmers shares? Here’s why the company says Bunnings can continue to outperform

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs. The Motley Fool Australia has positions in and has recommended 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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