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.

What happened

Tesla (NASDAQ: TSLA) stock is moving higher for the second straight day today. After jumping another 3.7% in early trading, the Tesla share price was up 1% at the market close, bringing its two-day gain to about 6%.

So what

The moves higher came after one analyst still sees more than 50% upside for Tesla stock even in the face of economic headwinds, as well as a report that the EV leader might have its sights set on the next location for another manufacturing plant.

Following Tesla’s third-quarter earnings report last week, Morgan Stanley‘s Adam Jonas lowered his price target on the stock to $330 per share from $350. Though Jonas said he wanted to “make room for unexpected headwinds” in the current economic environment, the new price target is still more than 50% higher than where Tesla stock started this week. Other news came from Reuters reporting that Tesla CEO Elon Musk may be planning on a new investment in Mexico.

Now what

Musk reportedly met with the governor of the northern Mexican state of Nuevo Leon, which borders Texas. The meeting also included other local officials and the U.S. ambassador to Mexico, Ken Salazar, according to Reuters.

Several U.S. automakers have operations and suppliers in Mexico, and it remains unclear if Musk is eyeing the area for a new production facility or some other need. Musk has said his company would eventually likely need about 12 manufacturing plants to produce the volume he eventually strives for. Tesla is currently ramping up its third and fourth facilities in Germany and Austin, Texas.

Investors want to see that growth from the company, regardless of where Musk identifies the next site or sites. The report that he may be making progress on a new investment seems to have investors buying back into the stock this week after it has declined more than 35% year to date. 

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

The post Why did Tesla stock rise today? appeared first on The Motley Fool Australia.

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• Why Tesla and other EV stocks popped today
• Here’s how I allocate my ASX share portfolio and why
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Howard Smith has positions in Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. 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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It can be very overwhelming to decide which ASX exchange-traded fund (ETF) to buy.

With more than 250 ETFs listed on the ASX and counting, options are abundant. 

So, here are a handful of things I weigh up when buying an ASX ETF.

ETF strategy

First things first, it helps to narrow down my investment universe. Usually, I’ll have a particular type of ETF in mind.

For example, I might be searching for a growth-focused thematic ETF. So my options would include the likes of the BetaShares Global Cybersecurity ETF (ASX: HACK) or the VanEck Video Gaming and Esports ETF (ASX: ESPO). 

Or perhaps I’m looking for broad-based exposure to the ASX share market. In this case, the BetaShares Australia 200 ETF (ASX: A200) and Vanguard Australian Shares Index ETF (ASX: VAS) would come into play.

In any case, it’s important to understand an ETF’s strategy and what it’s designed to do.

I’ll then consider how the ETF’s strategy aligns with my investment objectives and tolerance for risk.

How it fits into my portfolio

When I’m weighing up a prospective ASX ETF, I’ll also consider how it complements or overlaps what’s already in my portfolio.

While there’s no shortage of options for ETFs on the ASX, some are designed to do similar things. 

For example, the A200 and VAS ETFs both provide exposure to ASX shares. The A200 tracks the S&P/ASX 200 Index (ASX: XJO) while VAS tracks the S&P/ASX 300 Index (ASX: XKO), so there’s notable overlap.

But it’s not just the overlap between ETFs that I’m conscious of. I’ll also look into how a prospective ETF might overlap with my individual shares.

For example, the A200 and VAS ETFs are notably weighted to the big ASX banks. If I already held shares in, say, Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC) then I’d be getting even more exposure to the banks.

The ETF provider’s website is always my go-to port of call for information. They’ll have product pages for each of their ETFs, detailing a range of data including the individual holdings and weightings inside the ETF.

ETF fees

Next up we have management fees, which you’ll also find on the ETF provider’s website or the ASX directory. 

It’s very important to be mindful of fees because they can eat away at your investment returns, especially over a long period of time.

Take a $100,000 portfolio, for example, earning 7% a year for the next 25 years. If this portfolio incurred no fees, it’d grow to $540,000.

But add in annual fees of 2%, which effectively reduces annual returns to 5%, and this portfolio would stand at just $340,000. That’s $200,000 in fees or nearly 40% of the portfolio’s final value!

Just like investment returns, fees also compound. What may appear to be a trivial percentage fee can add up big time over many years.

So, when you’re weighing up a prospective ETF, it pays to consider the fees. You can see how they compare to similar ETFs from other ETF providers.

Fees for a plain, index-tracking ETF are often less than 0.2% per year. Meanwhile, fees for a thematic ETF can sit around the 0.5% mark. 

As a general rule of thumb, if I’m paying more than 0.5% I’d need to have a good reason for it. For example, perhaps the ETF provides targeted exposure to a niche market sector. Or perhaps it’s actively trying to outperform the share market.

In saying all of this, fees make up only part of the research puzzle and I wouldn’t overlook a better ETF simply because of slightly higher fees.

ETF size

Another metric worth paying attention to is the size of the ETF.

Though not nearly as important as fees, the size of an ETF tells you how much money is invested in it. And in turn, the potential likelihood of the provider closing down the ETF.

Remember, ETF providers make a dime by charging fees on the money invested in their ETFs. So, the less money invested, the less they make.

You’ll find this information on the ETF issuer’s website. It’s often shown as net assets or assets under management (AUM).

An ETF closing down isn’t the end of the world. If this were to happen, you’d likely be presented with some options, such as receiving the value of your units back in cash. But personally, it’s something I prefer to avoid.

What’s more, larger ETFs are typically more liquid. In other words, they usually have more buy and sell orders placed for them each day. This can reduce the gap between what a seller is asking and what a buyer is willing to pay, otherwise known as the ‘buy-sell spread’. 

Spreads are a hidden cost of investing and represent the price of entering and exiting a stock or ETF. The tighter the buy-sell spread, the better.

ETF performance

Last but not least we have performance. I should note that as they say, past performance is not a reliable indicator of future performance. But I think it’s an important metric nonetheless.

When I’m assessing performance, I like to look at returns over multiple years. As we know, different ETFs will do well and not so well at different times. 

When it comes to performance, it’s worth noting how a particular ETF has performed against its benchmark. This is especially important for index-tracking ETFs because it shows how well an ETF is doing what it’s designed to do.

It’s also worth investigating how an ETF is performing against its peers. There’ll likely be at least one ETF similar to the one I’m researching. And if there’s not, I can still compare performance to other options I’m weighing up.

How I research ASX ETFs

So there you have it. Five of the things I zero in on when I’m researching new ASX ETFs to add to my portfolio.

Happy hunting!

The post 5 things I look at when buying an ASX ETF appeared first on The Motley Fool Australia.

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Motley Fool contributor Cathryn Goh has positions in BETA CYBER ETF UNITS and BetaShares Australia 200 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has positions in and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF and Westpac Banking Corporation. 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 lithium price is up 188% over the past 12 months, closing last night’s session at US$76,807 per tonne.

Wilsons equity strategist Rob Crookston says the consensus among analysts right now is for long-term lithium prices to drop back to about US$36,000 per tonne. He says that’s “far too low”.

Crookston writes on Livewire: “While we do not expect lithium prices to remain elevated at these levels over the next 12 months, we believe they will be significantly higher than consensus…”

He says the energy transition “involves more energy storage and a higher uptake of electric vehicles, both of which will create a higher demand for batteries, specifically lithium-ion batteries”.

Why the long-term lithium price prediction is too low

Crookston elaborates:

With a significant increase in demand for EV’s comes a significant increase in demand for lithium-ion batteries. We expect demand for lithium to grow by 6-8x between now and 2030.

We don’t believe lithium supply can keep up with this level of demand growth. Lead times for lithium mines (from discovery to production) can take 5+ years, so there is no quick fix. If demand can grow at the market’s expected pace, this could lead to large supply deficits from 2025 onwards.

Crookston says the energy transition is a major thematic trend and ASX lithium shares are the best way for investors to capitalise on it.

He says:

We believe one of the best ways to play this thematic is through the minerals and metals that will be in high demand as we progress through this decade and beyond.

We believe the market has not fully quantified the volume of required commodities accurately in relation to the transition, and many battery mineral miners are still undervalued relative to potential growth of their underlying commodities.

When looking at the mineral mix in batteries, all roads still lead to lithium as the core base of battery technology over the next decade. We do not see an alternative to the lithium-ion battery (and hence lithium) in decarbonising the global auto fleet.

Which ASX lithium shares should you buy?

Allkem Ltd (ASX: AKE) is the Wilsons team’s preferred ASX lithium share. They cite its position as among the world’s top five producers, with operations in brine, spodumene, and hydroxide.

Crookston adds:

We prefer lithium miners, like AKE, who are currently producing lithium. We believe there is more exuberance in the non-producers, and valuations may have overshot fair value.

[Allkem has] business operations are spread across Argentina, Australia, Canada and Japan. The company has deep brine and hard rock lithium resources and a depth of experience in these fields. AKE brine production is low cost relative to the Western Australia spodumene (hard rock) mines.

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

The current Allkem price represents value, according to Crookston. Wilsons increased its investment fund weighing in Allkem to 3% in early August.

Allkem shares are trading at $14.76 at the time of writing, up 2.8% for the day so far and up 32% in 2022.

Wilsons also likes three other ASX lithium shares. They are Pilbara Minerals Ltd (ASX: PLS), IGO Ltd (ASX: IGO), and Mineral Resources Limited (ASX: MIN).

The post Why ‘long-term lithium prices are far too low’: Wilsons appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen has positions in Allkem 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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The Woodside Energy Group Ltd (ASX: WDS) share price has been rising. It’s up more than 16% in a month and tracking 57.7% higher since the start of the year.

As one of the world’s largest oil and gas businesses, Woodside is benefiting from the higher prices for those resources. Today, shares in Woodside are trading a healthy 2.48% higher at $35.77.

With the company generating such good net profit after tax (NPAT) and cash flow right now, could this be a good time to consider Woodside for dividend income?

Well, first let’s look at what the company is expected to pay to shareholders.

Woodside dividend

The company’s financial year is the same as the calendar year, unlike our typical financial year which starts in July.

According to estimates on CMC Markets, Woodside is expected to pay an annual dividend of $4.03 per share in FY22. That dividend expectation is based on the projection that the company could generate $5.67 of earnings per share (EPS).

At the current Woodside share price, this means that the FY22 grossed-up dividend yield is expected to be 16.1%.

FY23 isn’t expected to be as positive as FY22, with EPS expectations of $5.07 in FY23 and an annual dividend of $3.89 per share.

That means that, in the 2023 financial year, Woodside might pay a grossed-up dividend yield of 15.5% if resource prices stay high.

Things to consider

Investing in resources is sometimes tricky. Shareholders want the commodity price to go up so the business can make more profit and pay bigger dividends.

However, a lot of resources tend to go through cycles, meaning the profit is cyclical and so is investor sentiment.

The Woodside share price is very close to its 52-week high. It’s riding high, unsurprisingly.

Woodside delivered revenue of US$5.86 billion in the third quarter of 2022, up 70% from the second quarter of 2022. This was the first full quarter after its merger with the former BHP Group Ltd (ASX: BHP) petroleum business. Woodside achieved a portfolio average realised price of US$102 per barrel of oil equivalent (up 7%).

In its quarterly update, it upgraded its full-year 2022 production guidance to 153 to 157 million barrels of oil equivalent (MMboe).

I like how the business is working on — and making progress with — major projects. They can add to its profit and scale. Combined, the Scarborough and Pluto train 2 projects in Western Australia were 21% complete at the end of the quarter and remain on track for the targeted first LNG cargo in 2026.

At the company’s Sangomar project in Senegal, the subsea installation campaign began in September and development drilling progressed, with six of the planned 23 wells now complete. This project was 70% complete at the end of the quarter, with first oil targeted for the second half of 2023.

Is the Woodside share price a buy?

Talking on Ausbiz, Carl Capolingua from ThinkMarkets believes there’s going to be a “major supply deficit” with natural gas – he said he’s bullish on the resource. He likes Woodside and thinks it’s a good longer-term pick considering that around 80% of the business is natural gas.

I agree that profit will likely remain stronger for longer, which should be good for dividend payments.

However, for me, to avoid potential disappointment with the Woodside share price, I don’t think buying when resource prices are high is the best time. It could be better to invest when sentiment is lower.

Don’t forget that just a month ago, it was trading at under $31. I’d be willing to wait for a lower price.

The post Is the Woodside share price a buy for dividends right now? 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 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 afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to record another gain. At the time of writing, the benchmark index is up 0.55% to 6,847.4 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Australia and New Zealand Banking Group Ltd (ASX: ANZ)

The ANZ share price is down almost 4% to $24.86. This follows the release of the banking giant’s full year results for FY 2022. For the 12 months ended 30 September, ANZ reported a 5% lift in cash profit from continuing operations to $6,515 million. While this was slightly ahead of Goldman Sachs’ estimates, its pre-provisioning operating profit “came in 1% lower than GSe, as an in-line NIM performance was more than offset by slightly weaker volumes and weaker than expected performance in Markets income.”

Australian Clinical Labs Ltd (ASX: ACL)

The Australian Clinical Labs share price is down 4% to $3.39. This morning this pathology provider revealed that it was the victim of a cyber incident all the way back in February. And despite finding customer data on the dark web in June, it has taken the company until now to tell patients and the market.

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is down 4.5% to $1.39. Investors have been selling this lithium miner’s shares after it revealed that its proposed offtake agreement with Tesla has collapsed. However, the company doesn’t appear concerned given the insatiable demand for lithium and its other offtake agreements which account for 80% of planned production.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is down 6% to $3.29. This appears to have been driven by a broker note out of Credit Suisse this morning. In response to the company’s dismal first quarter update, the broker has downgraded its shares to an underperform rating and slashed the price target on them by 25% to $2.73.

The post Why ANZ, Australian Clinical Labs, Core Lithium, and Kogan are sinking today appeared first on The Motley Fool Australia.

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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.

Warren Buffett has been a prolific investor for decades, soundly beating the markets on a consistent basis.

What’s noteworthy is that he hasn’t generally done it by betting on big tech or emerging growth stocks in high-risk industries. His strategy centres around safety and not about taking oversized risks.

There are two Buffett rules in particular that investors would do well to always keep in mind when buying stocks. Let’s look at them both.

Never lose money

This rule is so important that even his second rule is to not forget the first one. Not losing money in the stock market can seem impossible, especially in the current bear market. Even Buffett’s business, Berkshire Hathaway, has lost money on its investments in the past and has even underperformed the S&P 500 Index (SP: .INX) in some years.

The nature of the stock market is that there will always be some risk. The key takeaway from Buffett’s rule is to not take unnecessary or excessive risks and that the desire to avoid losing money should guide investors to making more calculated, strategic investment decisions, as opposed to jumping onto the latest meme stock.

Stop digging

This leads to another great Buffett quote: “The most important thing to do if you find yourself in a hole is to stop digging.”

In other words, if you’ve taken on too much stock risk and gotten yourself into a hole (e.g., your portfolio is deep in the red), the temptation may be to take on even greater risk and swing for a 10-bagger investment that gets you out of the hole. But by doing so, you could end up with even greater losses.

By minimizing losses to begin with, investors can avoid the temptation to take on excessive risks entirely. One industry where you can find many safer stocks is healthcare.

Healthcare stocks for long-term investors

Not all industries have performed poorly during the current downturn in the markets. One segment that has bucked the trend is healthcare.

Consider healthcare giant Bristol-Myers Squibb (NYSE: BMY), a top-performing stock in 2022. Year to date, the stock is up an impressive 17%, while the S&P has declined by 21%.

Bristol-Myers is a top drugmaker that has solid fundamentals. Last year, the company had three products that generated more than $5 billion in revenue for the business: Revlimid, Eliquis, and Opdivo. And they all reported positive year-over-year growth of at least 6%.

The healthcare company has grown, in part, via acquisitions and in 2021 reported revenue of $46 billion — more than double its $23 billion tally in 2018. It has also posted free cash flow of at least $13 billion for two consecutive years.

Another top healthcare stock that has performed reasonably well this year is Johnson & Johnson (NYSE: JNJ). Year to date, its shares are flat, but that would still satisfy Buffett’s first and second investing rules by avoiding losses.

The popular drug manufacturer and medical device company recently reported encouraging earnings numbers.

Sales totaled $23.8 billion for its most recent quarter (ended in September) and rose 1.9% year over year. The business expects to generate operational sales growth, which excludes the impact of acquisitions/divestitures and translating foreign currency, of up to 7.2% this year.

These businesses are safe and are excellent examples of the types of companies to invest in if your priority is to avoid losing money.

Over the past decade, Bristol-Myers and Johnson & Johnson have generated total returns (which include dividends) of 190% and 213%, respectively. That’s not far from the S&P 500 total returns of 223% over that time frame. And if the recent trends continue, the two healthcare stocks could continue to shrink that gap.

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

The post Two Warren Buffett rules you should never forget appeared first on The Motley Fool Australia.

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More reading

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• The companies Warren Buffett owns might surprise you
• Warren Buffett has been buying up big on dividend stocks. Should you?
• No savings at 40? I’d use the Warren Buffett method to build wealth
• How bear markets can be a blessing for dividend investors

David Jagielski has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and recommends Berkshire Hathaway (B shares) and Bristol Myers Squibb. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and recommends the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). 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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The CSL Limited (ASX: CSL) share price has been receiving some insider support lately. 

Two of its directors have loaded up on CSL shares this month, adding to their holdings by picking up shares on the market.

It can be worth monitoring the activity of company insiders because, after all, they should have better insights than the rest of us about the ASX 200 healthcare company’s prospects.

Director buying can be seen as a vote of confidence in a company. It can suggest that the director sees great potential in their company and that they believe shares are undervalued.

As the great investor Peter Lynch famously said, “Insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.”

CSL directors have been busy

Two of CSL’s non-executive directors have purchased CSL shares in as many weeks.

First up we have Dr Megan Clark AC, who has been a director since February 2016. She also sits on the board of Rio Tinto Limited (ASX: RIO).

In a recent ASX release, we learned that Clark went on a buying spree for CSL shares on 20 October. She picked up 270 CSL shares for $274.01 apiece, splashing around $74,000 in the process. This takes her total shareholding to 4,363 ordinary CSL shares, worth a tidy $1.2 million at current prices.

Days later on 24 October, fellow non-executive director Alison Watkins AM joined the party. Watkins has been a director of CSL since August 2021 and also sits on the board of Wesfarmers Ltd (ASX: WES).

A recent ASX release revealed that Watkins added 1,000 CSL shares to her self-managed super fund (SMSF). These shares were purchased on-market at $272 for a total of $272,000. Watkins now holds 3,076 CSL shares, worth roughly $850,000 at today’s prices.

Is the CSL share price a buy?

This insider buying comes hot on the heels of CSL’s Vifor investor briefing, which went into the weeds of the recent $16 billion dollar acquisition.

Notably, CSL revealed long-awaited guidance that incorporates the contribution from Vifor. 

Given that the acquisition was completed in August 2022, it will have an 11-month contribution to CSL’s FY23 results. Across this period, CSL is expecting Vifor to generate net profit after tax (NPAT) of between US$300 million and US$330 million.

Overall, CSL is guiding for adjusted NPAT of between US$2.7 billion and US$2.8 billion in FY23. This would represent growth of between 13% and 18% compared to the prior year.

On the back of this presentation, analysts at Morgans retained their add rating on CSL shares with a trimmed price target of $312.20. With CSL shares last changing hands at $275.31, this implies a potential upside of 13% over the next 12 months.

As plasma collections improve, the broker believes that ongoing demand across CSL Behring and Seqirus, combined with Vifor’s added breadth, points to strong growth and momentum. 

Goldman Sachs, however, is more sceptical. It currently has a neutral rating on CSL shares with a 12-month price target of $291.00, implying potential upside of 6%.

The broker remains constructive on the recovery potential across CSL’s plasma business. However, Goldman’s neutral rating stems from the uncertainties around CSL’s margin and return on invested capital (ROIC) profile over the medium and long term.

Personally, as I’ve discussed previously, I’d be happy to hold CSL shares as a long-term, high-quality investment in my portfolio. 

The CSL share price has been somewhat resilient this year. Despite slumping 6.5%, it’s outperformed the S&P/ASX 200 Index (ASX: XJO) which has tumbled 9.5% in the year to date.

The post Directors have been buying up CSL shares this month. Should you? appeared first on The Motley Fool Australia.

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• Here’s what Morgans is saying about the CSL share price
• This ASX 200 share could be 50% higher next year: expert
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• 2 classic healthcare ASX shares priced to buy now: expert

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. 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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It’s a good day to be invested in All Ordinaries Index (ASX: XAO) shares. The index is gaining 0.66% on Thursday, helped along by these companies and their quarterly updates.

Three ASX All Ordinaries shares are lifting by as much as 20% on news of their performance over the three months ended September.

Let’s take a closer look at what’s got the market excited over the shares.

3 ASX All Ordinaries shares rocketing on quarterlies

The Aurelia Metals Ltd (ASX: AMI) share price is rocketing higher on Thursday. Indeed, it’s one of the best-performing shares on the All Ordinaries Index.

It’s currently up a whopping 20% to trade at 12 cents.

The miner’s gold production increased quarter-on-quarter to 22,500 ounces over the September quarter while its all-in sustaining cost (AISC) dropped to $2,643 an ounce.

It expects to produce 87,000 ounces of gold at an average AISC of $1,900 per ounce this financial year.

The Humm Group Ltd (ASX: HUM) share price is also rocketing higher on Thursday. It’s up 10.4%, trading at 53 cents.

The provider of buy now, pay later (BNPL) plans’ volumes lifted 29% on those of the prior comparable period to $988.2 million over the quarter just been.

That was driven by an 88% rise in its flexicommercial business’ volumes, offsetting a 1% in those of its BNPL business.

Finally, the share price of All Ordinaries gold producer Red 5 Limited (ASX: RED) is trading at 17.25 cents right now, 11.3% higher than its previous close.

The company released its activities report for the September quarter today, revealing its King of the Hills project is on track to reach commercial production in the current quarter.

It produced 26,710 ounces of gold over the three months just been, selling 30,005 ounces at the same time. The company will begin to report its AISC when it reaches commercial production.

The post 3 ASX All Ordinaries shares leaping more than 10% on quarterly updates appeared first on The Motley Fool Australia.

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More reading

• Do the highest-yielding ASX dividend shares really offer the best passive income?
• How to avoid making bad investment decisions on the stock market right now: fundie
• How I’d build a portfolio by investing in top ASX shares now
• 5 things I love about investing in ASX shares
• 3 ASX All Ords shares smashing multi-year highs 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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Humm Group 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 own Rio Tinto Limited (ASX: RIO) shares or are considering investing in the S&P/ASX 200 Index (ASX: XJO) mining giant, you’re likely keeping an eye on iron ore prices.

Iron ore, after all, brings in the lion’s share of the miner’s revenue.

When the price of the industrial metal heads higher, Rio Tinto shares tend to gain. And if you look at the overlaying price charts, you’ll notice the same strong correlation in reverse.

Hence, the Rio Tinto share price hit all-time highs in mid-2021, when iron ore was fetching more than US$216 per tonne. And shares slid lower in the second half of the year as the iron ore price retreated to US$92 per tonne.

This year we saw Rio Tinto shares leap higher again. Shares reached $127.85 on 3 March amid rebounding iron ore prices, which hit US$161 per tonne in the first week of April.

Today, iron ore is fetching US$94 per tonne. And the Rio Tinto share price stands at $92.67, after paying out some outsized dividends this calendar year.

So, what’s all this about a divergent outlook between Commonwealth Bank of Australia (ASX: CBA) analysts and the Federal government?

I’m glad you asked!

Where to next for iron ore prices?

In attempting to forecast its own future revenue stream, the Federal budget predicts a big drop in iron ore price, to US$55 per tonne (Free on Board (FOB) Australia) by the end of Q1 2023.

As outlined above, that kind of fall in iron ore prices would throw up some strong headwinds for Rio Tinto shares.

However, the analysts at CBA have a more bullish prediction for iron ore, at least over the medium term.

In CBA’s Economic Insights report, published earlier this week, the bank stated, “We think that the Government’s forecasts for Australia’s key mining and energy commodities in the coming years are broadly too conservative.”

According to the report:

The Budget’s iron ore price forecast is lower than our outlook through the outlook period. The differences though lessen in later years. The difference reflects our view that prices will only gradually fall to $US60/t-$US65/t (FOB Australia) by late 2026/27 following a volatile year ahead.

Spot prices have come under pressure as China’s property downturn weighs on demand. Policy in China remains the key driver of prices, particularly China’s COVID-zero policy.

As for the kind of support Rio Tinto shares can expect from the iron ore price next year, CBA said:

We broadly expect iron ore prices to bottom in Q1 2023 as China’s COVID-zero policy continues to weigh on demand. A shift away from China’s COVID-zero by the end of March 2023 should see iron ore prices lift in the following quarters.

How have Rio Tinto shares been performing longer term?

Atop some healthy dividend payouts, Rio Tinto shares have gained 32% over the past five years. That compares to a 16% gain posted by the ASX 200 over that same time.

The post Why CBA is much more upbeat on Rio Tinto shares than the government appeared first on The Motley Fool Australia.

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More reading

• Why is the Rio Tinto share price in the doldrums today?
• Why is the Fortescue share price surging today?
• Broker says Rio Tinto share price is trading at a discount
• ASX dividend shares ‘likely to remain attractive’ despite rising bank deposit rates: expert
• Rio Tinto share price has 20% upside and 7% dividend yield: Goldman Sachs

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

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Shares of Webjet Limited (ASX: WEB) are in focus on Thursday, as travel heats back up and Aussies begin planning trips abroad once more.

A record number of Australians have applied for passports in 2022 as airlines deal with the built-up demand from two years of border closures due to COVID-19.

Webjet has come in for a soft landing these past 12 months with a series of lows across the year, finally bottoming at a year-to-date low of $4.64 on 3 October.

At the time of writing, the Webjet share price is up 0.2% to $5.19.

But how does the future look for this ASX travel share?

Can Webjet shares take off again?

It’s no secret the travel and tourism industries were among the hardest hit by the COVID-19 pandemic. Despite this, numbers are tracking back up again — and this could spell good news for Webjet shares.

Data compiled by the International Air Transport Association (IATA) predicts that four billion trips will take place in 2024. That’s a 103% increase on the 2019 [pre-COVID] total. Last year saw traveller numbers at just 47% of the 2019 highs.

Airlines are also forecasting strong travel numbers, with a return to full travel regimes planned within the next year or so, pending no other upsets.

For all those along the travel and tourism industry value chain – from agent to airline – this could spell a return to growth.

Looking ahead, however, the runway is different for Webjet compared to its previous three years of operation.

Whereas the pandemic era bought on a period of liquidity, low interest rates and government support, the near-term future looks a little different.

Many experts are talking in terms of inflation, interest rates and recession. This means different things for companies than it does for everyday consumers.

For companies, expenditure will be pulled into the limelight, with capital-light companies – those with lower capital expenditures (CapEx) – looking attractive for that reason.

What do the experts think?

Webjet recorded CapEx of $11.8 million in its most recent set of results. That’s down from $15 million in 2019. Coupled with its cash generation, brokers are constructive on Webjet shares.

Goldman Sachs rates it a buy with a $6.50 price target and reiterates this point. It notes Webjet has “demonstrated strong cash generation as the market recovers and valuation continues to be impacted by macro concerns”.

Meanwhile, those at Morgans are equally positive on the shares. The analyst team points to a strong European summer season and points out “crisis and cost reduction initiatives will reduce its cost base by 20% across the group” once implemented.

Both brokers join six other firms in rating Webjet shares a buy. Four say it’s a hold, with two brokers recommending to sell, according to Refinitiv Eikon data.

The consensus price target from this list is $6.40, suggesting a portion of upside should the number be correct.

In the meantime, Webjet shares are down almost 18% in the past 12 months of trade.

The post Could now be a good time to buy Webjet shares? appeared first on The Motley Fool Australia.

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More reading

• Why is the Qantas share price so volatile today?
• Webjet share price higher on bullish Goldman Sachs note
• 5 things to watch on the ASX 200 on Wednesday
• Experts say these are the ASX 200 shares to buy next week
• What is the outlook for ASX travel shares for the rest of 2022?

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 recommended 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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