The Webjet Limited (ASX: WEB) share price is gripping the attention of the market on Wednesday.

Shares in the online travel booking company are rallying 10.96% into the green this morning, hitting $5.67 a share. The move follows the company’s annual general meeting, held this morning.

Bouncing back despite challenges

ASX travel shares represent one corner of the market that has been especially crippled by the impacts of the pandemic in recent years.

Fortunately, Webjet shareholders have been provided further reassurance this morning that profitability is still on track for recovery. In the company’s AGM presentation, Webjet touted its improving financial and operational metrics.

Investors had already been informed earlier in the year that a return to profitability had been achieved during the second half ending March 2022. However, today’s presentation solidified this trajectory by highlighting continued profitability so far in FY23. In turn, the Webjet share price is taking off today.

Webjet’s management is expecting positive cash flow from operations to exceed $100 million in the first half of FY23. There are several positive indicators that have fed into this forecast across the various segments of the business, these include:

• Bookings through WebBeds above pre-pandemic levels since May this year
• August total transaction volume through WebBeds expected to surpass the record high
• Webjet total flights market share increasing 57% since the start of the pandemic
• Tourism returning to Australia and New Zealand to boost GoSee earnings

Despite the positives, the company’s management remains privy to the headwinds. Webjet’s chair Roger Sharp discussed the operating environment in his address, stating:

We continue to watch cash, cash flow, and debtor risk very closely, and are obviously tuned in to the global forces threatening prosperity — war in the Ukraine, high inflation driven by rapid increases in energy and food prices, a still-broken supply chain, and an on-again, off-again pandemic.

Flight path of the Webjet share price

The Webjet share price has been coasting through a prolonged patch of turbulence. Since the year kicked off, shares in the online travel agent have bounced between $4.60 and $6.15. However, the general trajectory has been downward since June.

Compared to a year ago, Webjet shares are down 2.6%. Meanwhile, fellow ASX travel share Flight Centre Travel Group Ltd (ASX: FLT) has gained 5.1% over the rocky period.

The post Webjet share price ascends 11% amid profitable start to FY23 appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Looking to buy Webjet shares? Here’s what we’ve learned about the travel sector in August
• Here are 3 top ASX growth shares that experts are tipping as buys
• Here are the top 10 ASX 200 shares today
• Better ASX travel buy: Flight Centre or Webjet?

Motley Fool contributor Mitchell Lawler 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.

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The St Barbara Ltd (ASX: SBM) share price is in the red this morning, down 2.46% in early trade after the company posted a largely negative earnings card for FY22.

Shares in the gold exploration company are trading for 89.3 cents each at the time of writing. Yesterday, they closed for 91.5 cents each.

Let’s go over the report’s highlights.

What did St Barbara report?

• Revenue and other income down 8% year-over-year (yoy) to $680.93 million
• Earnings before interest, taxes, depreciation, and amortisation (EBITDA) down 94.28% yoy to a $32.42 million loss
• Underlying net profit after tax (NPAT) down 70.11% yoy to $24.09 million
• No dividend for FY22 was announced

The company advised its net profit after tax was lower due to lower volumes realised from its Simberi and Atlantic gold mines and higher operating costs. A significant after-tax impairment was also recorded for its Atlantic gold unit with a value of $158,715.000.

Group gold production fell overall for FY22 to 280,746 ounces of gold, down 14.31% yoy.

St Barbara also said it was materially affected by COVID-19, which caused labour shortages and operational disruptions. A particular outbreak in Papua New Guinea impacted its Simberi mine operations in Q2FY22, which the company said severely affected its production in Q3FY22.

What else happened in FY22?

Throughout FY22, St Barbara made several acquisitions. The company bought Bardoc Gold Limited near Kalgoorlie in Western Australia to access the Zoroastrian and Aphrodite underground gold deposits, which is planned to increase its total group production of gold by 3 million ounces.

St Barbara also purchased NS Gold Corporation to access high-yielding gold prospecting locations in Nova Scotia, Canada.

Cash on the company’s balance sheet also shrank during the reported period to $98,512,000, down 26.13% from the prior year. The cash burn was primarily attributed to the halt of production of its Simberi mine and through the acquisitions of NS Gold Corporation.

What’s next?

St Barbara provided its outlook for FY23.

It expects gold production to fall between 280,000 to 315,000 ounces, with all-in-sustaining cost per ounce to be between $2,050 per ounce to $2,150 per ounce.

The company also predicted capital expenditure to be between $75 million and $95 million, with growth capital anticipated between $95 million to $120 million.

Finally, its exploration expenditure is tracked to be between $19 million and $28 million.

St Barbara share price snapshot

The St Barbara share price is down 36.8% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 7.79% over the same period.

The company’s market capitalisation is around $726.20 million based on the current price.

The post St Barbara share price slides on 70% profit slash appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Friday
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• The CBA share price looks downright expensive

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 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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Motley Fool Australia Chief Investment Officer Scott Phillips joined Michael Thomson for Nine’s Late News on Tuesday night to discuss the bounce back for the ASX, high hopes for the jobs summit later in the week, good news for housing, but not for units, and a mixed night expected in the US.

The post The ASX bounces back, but construction data is mixed. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

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More reading

• Praemium share price spikes hard as profit soars in FY22
• Why Bitcoin, Ethereum, and Dogecoin are falling today
• Webjet share price ascends 11% amid profitable start to FY23
• St Barbara share price slides on 70% profit slash
• Perseus share price falls despite delivering a record year and dividend boost

Motley Fool contributor Scott Phillips 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 Perseus Mining Limited (ASX: PRU) share price is falling today, even after posting record earnings for FY22 and delivering a dividend surprise.

The big jump in revenue and earnings from the African gold miner is driven by steady output from its three gold mines. The favourable gold price achieved during the period also helped.

However, the news couldn’t save the Perseus share price from today’s broader market sell-off. It’s dropped 2.6% to $1.52 in early trade, while the All Ordinaries (ASX: XAO) lost 0.5%.

Perseus FY22 results summary

• Revenue of $1,126 million, up 66% on FY21
• Record earnings before interest, tax, depreciation, and amortisation (EBITDA) of $564.1 million, up 86% on FY21
• Record net profit after tax (NPAT) from ordinary activities of $279.9 million, up 101% on FY21, after exploration write-down of $43.4 million
• Basic earnings per share (EPS) of 18.8 cents per share, up 96% year on year
• Net cash inflows from operating activities of $522.9 million or 42.01 cents per share, up 73% on FY21
• Final dividend of 1.64 cents per share (cps) including a bonus dividend of 0.79 cps, bringing total dividends in FY2022 to 2.45 cps

Key details from Perseus’ FY22 results

The higher realised gold price and increased production output from Yaouré contributed to the top-line growth.

Costs also didn’t rise as much as some feared in this high inflationary environment. This is because of the increased proportion of sales from Yaouré, which has an all-in site cost of US$668 an ounce in FY22. The gold price is bouncing around US$1,700 to US$1,800 an ounce.

An income tax benefit of $200,000 further bolstered the Perseus NPAT. The miner had to pay income tax of $23.7 million in FY21.

But it wasn’t all good news in the Perseus results. Higher depreciation and amortisation costs, a big $43.4 million write-down, detracted. Higher financing and admin and corporate costs also hurt its bottom line.

What the miner is saying

Perseus managing director Jeff Quartermaine said:

Our record financial results for FY22 reflect our continued strong operating performance at all levels of our business during the period. Our three gold mines are producing at our targeted rate of production with 494,014 ounces of gold produced in FY22, and our weighted average all-in site cost of US$952 per ounce is very competitive relative to most of our peers.

We are delivering excellent drill results from our organic growth programs targeting mineable Mineral Resources close to our existing operations and the acquisition of Orca Gold Inc. earlier this year has provided us with the opportunity to diversify away from West Africa and access the Nubian Shield precinct in North-East Africa.

Outlook

Announced alongside its results, Perseus is holding firm to its guidance in the December 2022 half and for the full calendar year.

Yaouré will continue to do more of the heavy lifting, with the mine tipped to produce 130k to 140k ounces of gold in the current half.

Perseus aims to produce 492,850 to 517,850 ounces of gold from its three mines in 2022. Its all-in site cost is forecast to range between US$980 and US$1,025 an ounce.

Perseus share price snapshot

The Perseus share price has largely been flat over the past year before today’s results. That’s not a bad outcome, given how its larger peers have been performing.

For instance, the Newcrest Mining Ltd (ASX: NCM) share price tanked 29%, while Evolution Mining Ltd (ASX: EVN) share price slumped 40% over the period.

In contrast, the All Ordinaries index has shed around 8% of its value in the past 12 months.

The post Perseus share price falls despite delivering a record year and dividend boost appeared first on The Motley Fool Australia.

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More reading

• Praemium share price spikes hard as profit soars in FY22
• Why Bitcoin, Ethereum, and Dogecoin are falling today
• Webjet share price ascends 11% amid profitable start to FY23
• St Barbara share price slides on 70% profit slash
• The ASX bounces back, but construction data is mixed. Scott Phillips on Nine’s Late News

Motley Fool contributor Brendon Lau has positions in Newcrest Mining 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.

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In the first week of August 2022, the Suncorp Group Ltd (ASX: SUN) share price actually went up by 4%. But, since then, Suncorp shares have fallen by 6.7% at the time of writing. It’s down 3% for the month.

It has been a much more consistent performance by the S&P/ASX 200 Index (ASX: XJO). Before today’s trading, the ASX 200 had risen by 0.8%.

What happened after the first week in August?

Suncorp reported its result for the 12 months to 30 June 2022. The half-year and full-year results are one of the few times in the year that investors get to react to the actual performance of the business and commentary about the outlook, rather than guessing how things are going (or going to go) for the business.

FY22 earnings recap

The insurance company reported that the gross written premium (excluding emergency services levies and portfolio exits) of the Australian insurance business rose 9.2%.

Suncorp New Zealand saw the gross written premium jump by 14.1%.

The banking division of Suncorp experienced 9% home lending growth.

Despite that reported growth, the insurance giant told investors that its group net profit after tax (NPAT) sank 34.1% to $681 million because of volatile investment markets and elevated natural hazard costs.

Why is an insurance business affected by investment markets? When insurance companies receive an insurance premium, they usually invest that money into a pool of investments such as shares. That pool of investment money hopefully grows and the insurer can use some of it to pay people or businesses when they make a claim. When asset values fall, it hurts the profit of insurers. But, when asset values go up it can help it.

The biggest hit to Suncorp’s profit was the Australian insurance NPAT sinking 68.2% to $174 million. It said there was an “intense” natural hazard season and the net investment loss was $133 million.

Outlook commentary

Suncorp also said that the operating environment remains “challenging”. It’s possible that the outlook has dampened market sentiment about the Suncorp share price.

It noted that extensive modelling of catastrophe risk indicated only a minor upward trend of the frequency of natural hazard related events, but more recent years have been hurt by La Nina related weather patterns. Suncorp’s current modelling suggests a third consecutive La Nina year.

It’s expecting gross written premium growth as it responds to increased input costs. Suncorp increased its natural hazard allowance in FY23 to $1.16 billion. The company also said that it maintains its commitment to a dividend payout ratio of between 60% to 80%.

Suncorp is also in the process of trying to sell its banking division to Australia and New Zealand Banking Group Ltd (ASX: ANZ) for $4.9 billion.

Is the Suncorp share price a buy?

Brokers are largely positive on the business.

For example, UBS rates it as a buy, with a price target of $14.80. This implies a possible rise of more than 30% over the next year. It thinks that Suncorp can grow profit in the shorter term, despite the challenges.

Credit Suisse also thinks that Suncorp is a buy, with a price target of $13.70. That suggests a possible rise of more than 20%. It thinks that insurance premium rises will help make up for the increase in costs.

The post Why has the Suncorp share price been struggling in August? appeared first on The Motley Fool Australia.

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• Can ANZ’s latest acquisition help it catch up to the other ASX 200 bank shares?
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• Suncorp share price slides following softer-than-expected FY2022 results

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

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The Pointsbet Holdings Ltd (ASX: PBH) share price is in focus this morning after the bookmaker posted its full year earnings.

The Pointsbet share price last traded at $3.29.

Pointsbet share price in focus on FY22 earnings

Here are the key takeaways from the S&P/ASX 200 Index (ASX: XJO) consumer discretionary favourite’s financial year 2022 (FY22) results:

• Revenue came in at $296.5 million – 52% higher than that of the prior corresponding period (pcp)
• Sports betting turnover lifted to $5 billion – a 32% increase
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) fell to a $243.6 million loss – down from the pcp’s $156.1 million loss
• Gross profit rose 39% to $121.6 million
• After tax loss deepened by 43% to a $267 million loss
• Earnings per share (EPS) slumped to a $1.048 loss

The company posted a group net win of $309.4 million for FY22 – a 48% year-on-year increase. It also boasted 513,182 million active clients at the end of the period.

In Australia, the company saw a third consecutive year of positive EBITDA, bringing in $7.7 million.

Over in the respective US and Canada markets, its EBITDA came in at a $197.4 million loss and a $15.6 million loss.

What else happened in FY22?

The financial year just been was a busy period of growth for the company.

It expanded its presence in the US and rolled out sports betting operations in four new US states; West Virginia, Virginia, New York, and Pennsylvania. It also launched iGaming operations in New Jersey, West Virginia, and Pennsylvania, and sports betting and iGaming operations in Ontario, Canada.

The company also welcomed a major strategic investment from SIG Sports Investment Corp in June 2022 and completed a $400 million capital raise in August 2021. That helped it close FY22 with a cash balance of $472 million.

The Pointsbet share price tumbled 77.5% over the 12 months ended 30 June.

What did management say?

In a letter to shareholders, Pointsbet chair Brett Paton and managing director and CEO Sam Swanell commented:

It has been another successful year for PointsBet. During the year, the company continued to capitalise on its expanding US presence … We currently have live online sportsbook operations in 10 US states plus Ontario, Canada and are live with iGaming in 4 states plus Ontario, Canada.

In SIG Sports we have found a strategic long-term partner who believes in PointsBet’ ability to continue to grow and compete in the North American sports betting market. Susquehanna has both the analytical capability and the capital to help PointsBet realise this potential.

What’s next?

Pointsbet didn’t provide any new earnings guidance today. However, it did outline its predicted path forward.

The company believes North America will likely deliver the majority of regulated global gaming growth over the next decade.

It plans to take advantage of its partnerships with NBC, SIG Sports, Nellie Analytics, and Maple Leaf Sports and Entertainment in Canada to capitalise on the apparent opportunity.

Pointsbet share price snapshot

The Pointsbet share price has had a rough slog as of late.

It has fallen 52% so far this year. It’s also currently 67% lower than it was this time last year.

In comparison, the ASX 200 has fallen 8% year to date and 7% over the last 12 months.

The post Pointsbet share price in focus as FY22 revenue lifts 52% appeared first on The Motley Fool Australia.

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• Why is the PointsBet share price rising on Tuesday?
• Here are the top 10 ASX 200 shares today
• Broker tips PointsBet share price to jump 60%
• Here are the top 10 ASX 200 shares today
• Why CSL, Downer, Magellan, and PointsBet shares are falling today

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 Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet 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 BHP Group Ltd (ASX: BHP) share price could be on the move today.

This comes despite the mining giant not releasing any price-sensitive announcements to the ASX.

At yesterday’s market close, BHP shares finished 1.04% lower to $41.75 apiece.

BHP shares set to go ex-dividend

While the company has been quiet on the news front lately, investors will be eyeing the BHP share price.

This is because of the upcoming ex-dividend date.

If you want to secure the company’s latest dividend, you’ll need to buy BHP shares before market close today. The ex-dividend date falls tomorrow on 1 September.

Although, be wary that more than likely a fall will happen when the shares trade ex-dividend. This is because investors quickly offload the share to book in a profit.

What does this mean for BHP shareholders?

If you manage to secure the BHP final dividend, you can expect to receive a payment of US $1.75 per share on 22 September. The dividend is also fully franked meaning you’ll get tax credits from this.

However, if you opt-in for the dividend reinvestment plan (DRP), this will add a portion of shares to your portfolio instead.

No DRP discount will be applied, and the reinvestment price will be the on-market price of the shares which are purchased after the dividend payment.

The last election date for shareholders to participate in the DRP is on 5 September.

BHP share price summary

Since the beginning of 2022, the BHP share price has gained 12% but is up only 2% for the last 12 months.

The company’s shares struggled from early June 2022 as extreme volatility impacted the ASX along with lower iron ore prices.

Based on today’s price, BHP commands a market capitalisation of approximately $213.58 billion and has a dividend yield of 11.20%.

The post Time is running out to secure the next BHP dividend. Here’s the lowdown appeared first on The Motley Fool Australia.

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• 3 popular ASX 200 shares going ex-dividend tomorrow
• Woodside dividend tripled: Here’s everything you need to know
• Woodside share price lifts on 400% profit surge
• How does the BHP dividend stack up against the latest Fortescue payment?
• 2 ASX 200 dividend shares to buy now according to analysts

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.

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The A2 Milk Company Ltd (ASX: A2M) share price has been a strong performer this week.

Over the first two trading sessions, the infant formula company’s shares have stormed 16% higher.

This has been driven by the release of a stronger than expected full year result on Monday.

Can the A2 Milk share price keep rising?

The good news for shareholders is that one leading broker still sees scope for the A2 Milk share price to rise further from here.

According to a note out of Bell Potter, its analysts have upgraded the company’s shares to a buy rating and lifted the price target on them by a third to $6.35.

Based on the current A2 Milk share price of $5.73, this implies potential upside of almost 11% over the next 12 months.

What did the broker say?

Bell Potter was impressed with A2 Milk’s performance in FY 2022, noting that its result came in ahead of expectations.

The broker was also pleased with the company’s outlook commentary, which again was ahead of its expectations and has led to the broker upgrading its net profit after tax forecasts by 15% in FY 2023 and 16% in FY 2024.

Pleasingly, its analysts also see potential for this strong earnings growth to continue through to FY 2026. Bell Potter concluded:

We upgrade our rating from Hold to Buy. If A2M can execute on its strategy to achieve ~NZ$2Bn in FY26e revenues and EBITDA margins in the teens, then it would imply compound double digit EPS growth through to FY26e. Exiting the US, transitioning MVM towards nutritionals or execution of buybacks could accelerate this growth trajectory. Recent easing in dairy (notably SMP) and vegetable oil ingredient forward rates also imply the scope for favourable COGS movements in FY24e.

The post Broker says A2 Milk share price can keep rising appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
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• Are A2 Milk shares ‘turning a corner’ on the daigou debacle?
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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 A2 Milk. 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 Bubs Australia Ltd (ASX: BUB) share price came under pressure on Tuesday.

The infant formula company’s shares tumbled 5% to end the day at 57.5 cents.

Investors were selling down Bubs’ shares in response to the release of its full year results.

Where next for the Bubs share price?

One leading broker that believes the Bubs share price is heading higher from here is Bell Potter.

According to a note this morning, the broker has upgraded the company’s shares to a speculative buy rating with an improved price target of 80 cents.

Based on the latest Bubs share price, this implies potential upside of 39% for investors over the next 12 months.

Why is Bell Potter bullish?

Bell Potter’s upgrade has less to do with the company’s results and more to do with the future.

It feels that Bubs has an opportunity to fill a void left by A2 Milk Company Ltd (ASX: A2M) following its shift of focus in China. If everything goes to plan, the broker suspects that Bubs could grow its gross revenue from $104.2 million in FY 2022 to over $400 million by FY 2026.

The broker explained:

We upgrade our rating from Hold, Speculative risk to Buy, Speculative risk. The rapid conscious shift in A2M’s sales mix towards China direct (PRC + CBEC) in our view creates a void in the supply of IMF product to large domestic Daigou buyers in a similar vein to when Danone undertook a similar strategy in 2HCY18. We expect BUB to be a beneficiary of this move given its domestic channel partners. Longer-term we see BUB as a high ceiling IMF play, with the scope to be a >$400m gross revenue business by FY26e if successful in executing its US and China growth strategies.

The post Why Bell Potter is tipping 40% upside for the Bubs share price appeared first on The Motley Fool Australia.

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More reading

• Why Bravura, Bubs, Grange, and Sandfire shares are sinking
• Why is the Bubs share price down 4% after reporting strong FY22 growth?
• Bubs share price on watch as full-year revenue blasts 127% higher

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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After a hectic reporting season and prophetic words from the US Federal Reserve chair shaking confidence in ASX shares, there are plenty of bargains out there.

Fortunately for long-term investors, some experts have nominated which stocks they’d buy for cheap right now:

An ageing population will happen regardless of economy

Integral Diagnostics Ltd (ASX: IDX) shares have dipped more than 13% since 5 August.

If one goes back to the start of the year, the healthcare stock has lost almost 40%.

But that just makes it a golden buying opportunity, as far as Fat Prophets chief executive Angus Geddes is concerned.

“Integral Diagnostics provides medical imaging services across Australia and New Zealand. The company’s hub and spoke model generates efficiencies,” he told The Bull.

“The diagnostics sector has long-term appealing trends given an ageing population and patients returning for medical examinations and treatments.”

The wider analyst community is divided on this one.

This week Citi and Goldman Sachs cut their price targets, while Jefferies and Macquarie both raised their price targets.

‘Tight employment market’ favours this stock

Baker Young managed portfolio analyst Toby Grimm likes the look of jobs classifieds site Seek Limited (ASX: SEK).

“This employment and education company delivered better than expected revenue and earnings growth in fiscal year 2022. However, Seek’s share price has recently retreated.”

Indeed the stock has lost 17% over the past 19 days, while it’s been a 39.9% slide down since the start of the year.

This betrays the quality of the business, according to Grimm.

“The company operates a dominant job advertising site, and we expect it to benefit in an exceptionally tight employment market. A value opportunity exists at these price levels.”

Some of the sell-off this month seems to have occurred after UBS and JP Morgan both cut their price targets.

However, 10 out of 16 analysts surveyed on CMC Markets currently rate Seek as a buy, with nine of them recommending it as a strong buy.

Above-average east coast crops expected next year

Marcus Today analyst Layton Membrey currently favours Graincorp Ltd (ASX: GNC) after an 18.3% drop since early June.

“This diversified Australian agribusiness recently upgraded earnings guidance for the full year ending September 30, 2022,” he said.

“It expects underlying net profit after tax to range between $365 million and $400 million. It was previously forecasting NPAT to range between $310 million and $370 million.”

The outlook for the next financial year is positive too.

“Graincorp is expecting another east coast Australian crop to be above average in fiscal year 2022/23.”

Graincorp shares seem to have also been recent victims of a downturn in sentiment from some analysts.

Earlier this month Morgans, Macquarie, Wilsons, Bell Potter and UBS all reduced their price turrets in response to the very financial update that Membrey is positive on.

The share price for Graincorp is up 1.5% year-to-date, and pays out a 2.57% dividend yield.

The post 3 ASX shares now at a golden buying opportunity: experts appeared first on The Motley Fool Australia.

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More reading

• Experts name 2 blue chip ASX 200 shares to buy
• Here are 2 ASX shares that Morgans rates as buys
• Up 41% in a year, is it too late to buy Graincorp shares in 2022?
• Top brokers name 3 ASX shares to buy today
• Why Bendigo and Adelaide Bank, Challenger, Seek, and Sims shares are dropping

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 recommended Integral Diagnostics Ltd 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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