The S&P/ASX 200 Index (ASX: XJO) is a hunting ground for dividend investors right now as companies release results and hand back some of their profits to shareholders.

When a company declares a dividend, it must set a cut-off date to determine which shareholders are entitled to the payment.

This is also known as the ex-dividend date. Any shares you buy on or after this date won’t come with the latest dividend payment.

A company’s shares typically fall on the day they turn ex-dividend. This is because money is flowing out of the company to line the pockets of shareholders. As a result, it has less cash on its books, so theoretically it’s worth less.

What’s more, some investors will look to sell their shares once they’ve locked in the dividend payment.

With this in mind, there’ll be downwards pressure on these three ASX 200 shares tomorrow as they turn ex-dividend.

Evolution Mining Ltd (ASX: EVN)

Today is the last day Evolution Mining shares will be trading with a fully franked final dividend of 3 cents.

The ASX 200 gold miner recently unveiled its FY22 results, declaring its 19th consecutive dividend for shareholders since 2013.

The payment date for this final dividend has been locked in for 30 September.

Across the financial year, the company halved its total dividend payments to 6 cents per share.

At current levels, Evolution Mining shares come with a trailing dividend yield of 2.4%. Including franking credits, this yield dials up to 3.4%.

Beach Energy Ltd (ASX: BPT)

Beach Energy is another ASX 200 share turning ex-dividend tomorrow. 

The oil and gas company recently declared a fully franked final dividend of 1 cent. Beach has held its interim and final dividends steady at 1 cent since 2017.

Investors who own Beach shares by the time the market closes today should pencil in a payment date of 30 September.

Investors also have the option of participating in a dividend reinvestment plan (DRP) instead.

Beach’s total dividends for FY22 come to 2 cents, putting shares on a trailing dividend yield of 1.1%. This grosses up to 1.6% including franking credits.

Bapcor Ltd (ASX: BAP)

Rounding out this trio of ASX 200 dividend shares going ex-dividend on Tuesday is automotive aftermarket specialist Bapcor. 

The company recently announced a fully franked final dividend of 11.5 cents, which will be paid on 16 September.

Adding in the company’s 10-cent interim dividend declared earlier in the year brings total FY22 dividends to 21.5 cents.

This means Bapcor shares are currently flashing a trailing dividend yield of 3.1%, which grosses up to 4.5%.

The post 3 ASX 200 shares trading ex-dividend on Tuesday appeared first on The Motley Fool Australia.

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More reading

• Hoping to bag the next Beach Energy dividend? Here’s what you need to do
• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• Dividend beasts: 3 ASX 200 shares that have delivered reliable payouts over the past 7 years
• Can the gold price outshine sticky inflation?

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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bapcor. 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.

In July, analysts at Bank of America came out with a pretty sombre forecast for the S&P 500 through to the end of 2022. They revised their year-end target for the benchmark from 4,500 to 3,600 by the end of this year.

With the S&P 500 at 4,200 as of 25 August, that would mean it would drop another 14% by the end of the year, on top of the 12% it is already down. And the Nasdaq Composite is already in bear market territory, down about 20% year to date as of 25 August.

That’s not to say Bank of America’s forecast will be correct. The market could surge higher the rest of the year. But the uncertainty has caused many investors to sit on the sidelines and wait for the market to turn back north. It raises the question: Should you really be buying stocks right now? While it is prudent to be cautious, it is also smart to be opportunistic. Here’s why.

Bad news can be good news

You have no doubt heard the famous Warren Buffett quip: “Be greedy when others are fearful and be fearful when others are greedy.” That is easier said than done for the average investor, but the larger point is, down markets are a great time to find good, cheap stocks that will grow and flourish when the market does turn around.

As Buffett himself told The New York Times back in 2008: “Bad news is an investor’s best friend. It lets you buy a slice of America’s future at a marked-down price.”

Some of Buffett’s best and most lucrative purchases came in down markets. Buffett bought Berkshire Hathaway‘s second-largest current holding, Bank of America, in August 2011 when it was trading at around $6 per share. It is now trading at $35 per share — even though it is down 21% year to date. Still, that investment has posted a 17% annualised return for Buffett.

Now, not all investors have the expertise or track record of Warren Buffett, but just as there was after the Great Recession, there are a lot of good stocks available at low valuations right now, if you know where to look.

What to look for

The first thing to know is that bear markets do not last as long as bull markets. According to an analysis by the Hartford Funds, the average bear market lasts about 289 days, or just over nine months, while the average bull market lasts about 991 days or 2.7 years. Further, stocks on average lose 36% during a bear market and gain 114% in a bull market.  

It is also worth noting that about half of the S&P 500’s best days in the last 20 years occurred during a bear market, while another 34% occurred in the first two months of a bull market. So, there is indeed value in adding to your current or investing in new stocks.

But proceed cautiously, as there remains a lot of uncertainty out there. Your best bet is to find companies that have seen their valuations drop, as measured by price-to-earnings (P/E), price-to-book (P/B), or price-to-sales (P/S) ratios. Also, look for companies that are established in their industries or markets with a history of consistent earnings and revenue increases. 

Generally speaking, stocks that still have high valuations, a disproportionally high amount of debt, relatively little cash flow, high expenses, and a spotty history of profitability or earnings should raise red flags.

So, yes, you should be looking to invest in stocks right now, but proceed cautiously and do your research.

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

The post Should you really be buying stocks right now? appeared first on The Motley Fool Australia.

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More reading

• 3 ASX 200 shares trading ex-dividend on Tuesday
• Are Pilbara Minerals shares better value than Allkem right now?
• Is the $400m buyback a good thing for Qantas shares?
• Here’s what brokers are saying about the Flight Centre share price
• After falling 16% in 2 weeks, is the Bendigo Bank share price too cheap to miss?

Bank of America is an advertising partner of The Ascent, a Motley Fool company. Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway (B shares). The Motley Fool 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 has a disclosure policy.

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

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The Pilbara Minerals Ltd (ASX: PLS) share price has risen strongly over the past couple of months. But, Allkem Ltd (ASX: AKE) shares have also increased significantly recently as well.

Since 22 June 2022, Pilbara Minerals shares are up by 72%, with Allkem rising 39% over the same time period.

They are both major ASX lithium players. But there are fairly big differences between them.

Allkem is headquartered in Buenos Aires, Argentina. It has lithium brine operations in Argentina, a hard-rock lithium operation in Australia, and a lithium hydroxide conversion facility in Japan. It also has new project developments underway “across the globe” to enhance its international scale.

Pilbara Minerals says that it owns 100% of one of the world’s largest independent hard-rock lithium operations. It’s located in WA, called the Pilgangoora project. The company is pursuing a growth and diversification strategy to become a low-cost lithium producer and fully integrated lithium raw material and chemical supplier.

Which one is better value?

I suppose value is in the eye of the beholder.

One of the ways to compare businesses is by looking at the price/earnings (p/e) ratio. This tells us the multiple of earnings that each business is trading at.

Using estimates on CMC markets, the Pilbara Minerals share price is valued at six times FY23’s estimated earnings and under nine times FY24’s estimated earnings.

However, looking at the Allkem share price, it’s valued at 10 times FY23’s estimated earnings and around nine times FY24’s estimated earnings.

On an earnings projection, Pilbara Minerals does appear to be cheaper.

What do brokers think of these two ASX lithium shares?

Brokers are thinking that ASX lithium shares typically have attractive outlooks because of the expected growing demand for electric vehicles.

However, some brokers are more optimistic about some ASX lithium stocks than others.

Opinions are very mixed. Macquarie has an ‘outperform’ rating on Pilbara Minerals, with a price target of $5.60. That implies a rise of more than 50% over the next year. Macquarie is also bullish about the next few years due to expectations of strong lithium prices.

However, Credit Suisse currently has a rating of ‘underperform’ on the business, with a price rating of $2.30. That would be a fall of the Pilbara Minerals share price of more than 30%. Higher costs in FY23 is  one of the main factors that the broker is cautious about.

Using those same brokers for Allkem, it’s a similar story.

Macquarie rates Allkem as ‘outperform’ with a price target of $21. That would be a rise of around 50%. While the company is benefiting from high prices, production guidance for FY23 was decreased.

Credit rates Allkem as ‘underperform’, with a price target of just $10.30. That would be a drop of around 25%. The broker noted the decreased production guidance and higher expected costs.

The post Are Pilbara Minerals shares better value than Allkem right now? appeared first on The Motley Fool Australia.

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More reading

• Morgans still sees ‘value upside’ in Allkem share price despite recent rally
• Top brokers name 3 ASX shares to buy next week
• ASX 200 reporting season weekly wrap: Top risers and fallers
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Friday

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Macquarie 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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Qantas Airways Limited (ASX: QAN) shares are getting plenty of attention after the airline released its FY22 result and announced a $400 million share buyback.

Initially, the Qantas result may not have seemed that positive considering it reported in the 12 months to 30 June 2022, it made an underlying loss before tax of $1.86 billion and a statutory loss before tax of $1.19 billion.

However, within the result, it also told investors that its net debt had declined to $3.94 billion, down from a high of $6.4 billion. The $3.94 billion figure was below its “optimal” target range of $4.2 billion to $5.2 billion. Before COVID-19, it had net debt of $4.71 billion.

How did it manage to reduce its debt?

Qantas explained that strong revenue intake, the sale of surplus land, and lower invested capital combined to help it lower its debt.

It sold 13.8 hectares of land in Mascot for gross proceeds of $802 million. Qantas will lease back portions for a period of time while arrangements are made to relocate some of the functions the land is currently used for. It has entered into discussions with the purchaser, LOGOS, about potential future development options for the sites, including the creation of a dedicated precinct for the airline.

The airline also said that a further $270 million in cost benefits were achieved in FY22, bringing the total achieved under its COVID recovery plan to $920 million since FY20. The annualised benefit of $1 billion is on track from FY23 onwards.

What is a share buyback and what does that do for Qantas?

A buyback is a way for a business to return money to shareholders, but it’s not a dividend.

It’s when the company is buying shares from investors, either on the ASX share market or directly from the investor.

By buying shares (hopefully at a time when the Qantas share price is at a fairly low price), it can help boost earnings per share (EPS) and return on equity (ROE). By reducing the number of shares on issue, it can also support the share price because the value of the overall business is being split between fewer shares.

According to the ASX, Qantas has a market capitalisation of $9.16 billion. So, a $400 million buyback at the valuation would represent more than 4% of the company.

Is the share buyback a good thing?

I think it is a good thing, assuming Qantas also puts enough money to work to get its customer service standards back to pre-COVID times.

Qantas is expecting its domestic capacity will be 95% of pre-COVID levels in the first half of FY23 and 106% in the second half of FY23. The international capacity is expected to reach 84% of pre-COVID levels by the second half of FY23.

With an expectation of returning demand and the net debt position better than expected, it seems like a good way to help Qantas shares and, therefore, shareholders. I think it seems like management is confident about the outlook, which is a good thing.

The post Is the $400m buyback a good thing for Qantas shares? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Brokers name 3 ASX shares to buy today
• Why Bega Cheese, Jumbo, Pilbara Minerals, and Qantas shares are rising
• Is the Qantas share price a buy following the airline’s latest results?
• Here are the top 10 ASX 200 shares today

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 Flight Centre Travel Group Ltd (ASX: FLT) share price was out of form last week.

Over the five days, the travel agent giant’s shares lost 1.2% of their value and ended the period at $17.07.

This followed the release of the company’s full year results for FY 2022.

What are brokers saying about the Flight Centre share price?

Unfortunately, there are no major brokers that have buy ratings on the company’s shares at the moment.

Though, that doesn’t necessarily mean that some don’t see value in the Flight Centre share price at the current level.

For example, according to a note out of Goldman Sachs, its analysts have retained their neutral rating with a trimmed price target of $19.60.

This implies potential upside of almost 15% for investors over the next 12 months.

Commenting on Flight Centre’s results, the broker said:

In our view, the key area of positive surprise for us was the stronger than expected recovery in ANZ earnings and the continued strength in corporate account wins. However on the flipside, America’s recovery was slower than expected driven by momentum strengthening only in the latter part of the year. In terms of revenue margin, management expects most of the underperformance to be related to unfavorable mix changes with higher corporate, domestic and VFR travel being key factors apart from elevated ticket price inflation.

What else are brokers saying?

Over at Morgans, its analysts have retained their hold rating with a reduced price target of $18.25. This suggests potential upside of 7% for the Flight Centre share price.

The broker feels that the company’s shares are trading at a fair level at present considering the risks it is facing. Its analysts commented:

Following forecast changes, our valuation has fallen to $18.25. Based on our forecasts, FLT is trading on an FY24/25 PE of 17.4x/13.3x, which is fair given the current uncertainty. We consequently maintain a Hold rating.

The post Here’s what brokers are saying about the Flight Centre share price appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Why City Chic, Flight Centre, Perpetual, and Woolworths shares are sinking
• Corporate Travel has resumed paying them, so when can we expect Flight Centre dividends?
• Flight Centre shares fall back to earth after $378 million loss
• Flight Centre share price in focus as full-year revenue surpasses $1 billion

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 Flight Centre Travel 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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The Bendigo and Adelaide Bank Ltd (ASX: BEN) share price has suffered in August. It’s down by 16% in just two weeks.

For a business as large as Bendigo Bank, that’s a significant fall in a short amount of time when the S&P/ASX 200 Index (ASX: XJO) hasn’t been falling.

But, as investors, we can use rapid declines as an opportunity to buy shares of businesses at lower prices — if we think they are opportunities.

So, is Bendigo Bank an opportunity?

What happened to the Bendigo Bank share price?

In the middle of August, the regional bank reported its result for the 12 months to 30 June 2022.

It told investors that its statutory net profit after tax (NPAT) had fallen 6.9% to $488.1 million. Cash earnings after tax increased by 9.4% to $500.4 million. Total lending increased 7.7% to $77.8 billion, with residential lending growth of 11% (1.4 times the growth rate of the system).

Perhaps one of the most disappointing revelations from the result was the net interest margin (NIM) fall of 21 basis points to 1.74%. That means it dropped by 0.21%.

The NIM is important because it tells investors how profitable banks are on their loans. It compares the lending rate (for example, a mortgage) against the cost of the funding of that loan (such as savings accounts). If a customer had a Bendigo Bank savings account with an interest rate of 1.5% for $100,000 in the account and another customer had a $100,000 mortgage with a loan rate of 3.24% then the NIM would be 1.74%.

A falling NIM means that the bank’s loan book is less profitable and, therefore, the bank is less profitable.

Management said that the NIM reflected the historically low interest rate environment. It said that variable and fixed rate residential loan competitive pressure was a detractor, but this was partially offset by improving funding costs.

Dividend

The board of the ASX bank share decided to declare a final dividend per share of 26.5 cents. That brought the full-year dividend to 53 cents per share, an increase of 6%.

At the current Bendigo Bank share price, it has an FY22 grossed-up dividend yield of 8.4%.

Is the Bendigo Bank share price an opportunity?

Bendigo Bank said that the positive impact of rising interest rates is flowing through to its NIM and will have a “more significant impact in FY23”.

The bank is focused on improving its overall returns for shareholders. However, it acknowledged that credit growth is going to moderate and competition will remain “intense”.

Despite inflation causing headwinds for costs, management aims to keep costs “broadly flat”. However, it expects impairment expenses to return to historical averages over the medium term.

Considering the NIM is expected to help things in FY23, I think the sell-off could make this a good time to consider Bendigo Bank shares. However, I wouldn’t expect a huge amount of capital growth, considering the nature of banking and how much of its profit it pays out as a dividend each year.

The post After falling 16% in 2 weeks, is the Bendigo Bank share price too cheap to miss? appeared first on The Motley Fool Australia.

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More reading

• ASX reporting season weekly wrap: Winners and losers
• Why Bendigo and Adelaide Bank, Challenger, Seek, and Sims shares are dropping
• Is the Bendigo Bank share price in the buy zone following Monday’s sell-off?
• 5 things to watch on the ASX 200 on Tuesday
• Why Beach, Bendigo and Adelaide Bank, Opthea, and Paradigm shares are sinking

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 positions in and has recommended Bendigo and Adelaide Bank 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’re looking for ASX dividend shares to buy, then the two listed below could be worth considering.

Here’s what you need to know about these high yield dividend shares:

HomeCo Daily Needs REIT (ASX: HDN)

The first ASX dividend share that could be a top option for investors is HomeCo Daily Needs.

It is a property investment company with a focus predominantly on metro-located, convenience-based assets across the sub-sectors of neighbourhood retail, large format retail, and health and services.

HomeCo Daily Needs was on form in FY 2022, delivering a 30% increase in funds from operations per unit last week. This went down well with analysts at Goldman Sachs, which declared the result a “strong” one.

In addition, the broker believes that its shares are cheap at current levels. It commented:

We continue to believe HDN is undervalued at its current valuation given its diversified tenant base, and see it as well positioned to benefit from the shift to omni channel retailing, with additional external growth opportunities to drive earnings growth over the medium-term.

Goldman has a buy rating and $1.63 price target on the company’s shares.

But it gets better. The broker is forecasting dividends of 8.3 cents per share in FY 2023 and 8.5 cents per share in FY 2024. Based on the current HomeCo Daily Needs REIT unit price of $1.29, this will mean big yields of 6.4% and 6.6%, respectively.

Whitehaven Coal Ltd (ASX: WHC)

Another ASX dividend share that is highly rated is coal miner Whitehaven Coal.

With the price of the black gold forecast to remain strong for some time to come, the company has been tipped to deliver bumper profits in the near term.

This is expected to lead to “supercharged returns” for shareholders according to analysts at Morgans. At present, the broker has an add rating and $8.60 price target on the company’s shares. Though, it sees scope for them to run even higher. The broker commented:

We see strong potential for a more prolonged dislocation in energy markets where supply security commands a higher premium for longer. WHC offers ~2%/24% upside to our base/bull case pricing scenarios (excluding growth assets) with clear upside risks to valuation and dividends. Note that thermal coal futures pricing currently sits well above our “super-bull” price scenario, which supports an NPV towards $11.00ps.

As for dividends, Morgans is forecasting dividends per share of 100 cents in FY 2023 and 64 cents in FY 2024. Based on the latest Whitehaven Coal share price of $7.97, this will mean yields of 12.5% and 8%, respectively.

The post 2 excellent ASX dividend shares with big yields that analysts rate as buys appeared first on The Motley Fool Australia.

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• Whitehaven Coal share price slips despite record $1.95 billion profit
• Here are the top 10 ASX 200 shares today
• 3 ASX 200 shares breaking multi-year highs on Tuesday
• Here are the top 10 ASX 200 shares today
• The Whitehaven share price just leapt to another all-time high. Here’s why

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 A2 Milk Company Ltd (ASX: A2M) share price will be on watch on Monday.

That’s because the embattled infant formula company has just released its highly anticipated full year results for FY 2022.

Though, it is worth noting that the market is expected to crash deep into the red today. So, the A2 Milk share price could tumble regardless of this result.

A2 Milk share price on watch after earnings beat and buyback

• Revenue up 19.8% to NZ$1,446.2 million (up 11.2% excluding Mataura Valley Milk (MVM) acquisition)
• Underlying earnings before interest, tax, depreciation and amortisation (EBITDA) up 59% to NZ$196.2 million
• Net profit after tax up 42.3% to NZ$114.7 million
• Inventory up to NZ$140 million including MVM
• Cash position of NZ$816.5 million
• NZ$150 million on-market share buyback
• Outlook: High single digit revenue growth in FY 2023

What happened in FY 2022?

For the 12 months ended 30 June, A2 Milk reported a 19.8% increase in revenue to NZ$1.446.2 million and a 42.3% jump in net profit after tax to NZ$114.7 million.

This reflects the acquisition of MVM, China label and English label infant formula sales growth of 12.2% and 11.6%, respectively, and ANZ and USA liquid milk sales growth of 1.8% and 30.2%, respectively.

In respect to its infant formula operations, management highlights that record market shares were achieved in China label infant formula in mother and baby stores and domestic online. In addition, English label infant formula market share in cross border e-commerce (CBEC) increased in the second half and offline-to-online over the full year. This was driven by a significant increase in brand awareness following a 36.3% increase in marketing investment.

Positively, record market shares were also achieved in Australia and USA milk.

In light of this return to form and its improved outlook, the company has elected to return funds to shareholders via a NZ$150 million on-market share buyback

How does this compare to expectations?

The good news for the A2 Milk share price is that this result appears to have come in ahead of expectations.

For example, according to a note out of Bell Potter, its analysts were expecting the company to report a 34.5% increase in profit after tax to NZ$108.6 million. This was a touch lower than the market consensus estimate of NZ$113.9 million.

As you can see above, A2 Milk has outperformed both estimates with its profit of NZ$114.7 million.

The company was also guiding to half on half revenue growth. During the first half, A2 Milk reported revenue of NZ$660.5 million. This means that its second half revenue was NZ$785.7 million, which was up 19% half on half. Another tick.

Management commentary

A2 Milk’s managing director and CEO, David Bortolussi, was pleased with the company’s performance in FY 2022. He said:

It was a successful year for The a2 Milk Company returning to double digit growth in revenue and earnings despite significant headwinds. We are pleased with the progress that has been made in stabilising the business, refreshing our strategy and improving our execution.

Our significant increase in marketing investment has driven further gains in brand health metrics and record market shares delivering strong growth in our China infant milk formula business. We are pleased with the transition of our English label product distribution to more transparent, performance-based and exclusive partners. We remain committed to the Daigou channel and have increased our direct engagement and marketing support with more Daigou supporting the brand.

Our on-market buyback of up to NZ$150 million demonstrates effective capital management and the improved confidence we have in our strategy, execution and outlook.

Outlook

A2 Milk is guiding to high single digit revenue growth in FY 2023 thanks largely to its infant formula business.

However, management is expecting its gross margin to be relatively flat, with cost of goods sold headwinds related to increasing milk, ingredient and packaging costs offset by price increases, mix benefits and cost mitigation initiatives.

The company also intends to continue to increase its brand investment in FY 2023. Marketing spend will be skewed marginally towards the first half with a significant uplift versus the prior corresponding period due to campaign timing.

Nevertheless, the company is expecting EBITDA growth in FY 2023 and a modest improvement in EBITDA margin.

The post A2 Milk share price on watch amid earnings beat and NZ$150m buyback appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Earnings preview: Here are 3 ASX 200 shares reporting next week
• A2 Milk share price lags ASX 200 ahead of Monday’s earnings result
• How did the A2 Milk share price respond last time the company reported?
• The A2 Milk share price has climbed 10% so far this month. What’s going on?

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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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week in a very positive fashion. The benchmark index rose by 0.7% to 7,104.1 points.

Will the market be able to build on this on Monday? Here are five things to watch:

ASX 200 expected to crash

It looks set to be a bloodbath on the Australian share market on Monday following a selloff on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 104 points or 1.5% lower this morning. On Wall Street, the Dow Jones was down 3%, the S&P 500 dropped 3.4%, and the NASDAQ crashed 3.95%. This was driven by hawkish comments by the US Federal Reserve.

Oil prices rise

Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a better than average start to the week after oil prices pushed higher on Friday. According to Bloomberg, the WTI crude oil price is up 0.6% to US$93.06 a barrel and the Brent crude oil price rose 1.65% to US$100.99 a barrel. Traders were bidding oil higher amid signs that OPEC could cut its output.

A2 Milk results

The A2 Milk Company Ltd (ASX: A2M) share price will be one to watch on Monday when the struggling infant formula company releases its full year results. According to a note out of Bell Potter, its analysts are expecting the company to report a 34.5% increase in profit after tax to NZ$108.6 million. This is a touch lower than the market consensus estimate of NZ$113.9 million.

Gold price tumbles

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a tough start to the week after the gold price tumbled on Friday night. According to CNBC, the spot gold price was down 1.2% to US$1,750.80 an ounce. The prospect of the US Fed raising rates aggressively weighed on the precious metal.

Fortescue FY 2022 results

The Fortescue Metals Group Limited (ASX: FMG) share price could be on the move today when the iron ore giant releases its full year results for FY 2022. Due to the iron ore price tumbling over the last 12 months, the market is expecting the miner to report a sizeable profit decline to US$6,200 million. This is expected to lead to a final dividend of 127 US cents per share being declared.

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

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• Earnings preview: Here are 3 ASX 200 shares reporting next week
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• Here are the top 10 ASX 200 shares today
• Why is the Newcrest share price having such a lowsy end to the week?
• A2 Milk share price lags ASX 200 ahead of Monday’s earnings result

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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Once a week I like to look at ASIC’s short position report to find out which shares are being targeted by short sellers.

This is because I believe it is well worth keeping a close eye on short interest levels as high levels can sometimes be a sign that something isn’t quite right with a company.

With that in mind, here are the 10 most shorted shares on the ASX this week according to ASIC:

• Flight Centre Travel Group Ltd (ASX: FLT) continues to be the most shorted share after its short interest rose to 15.2%. With living costs rising and squeezing budgets, short sellers appear to believe the travel market recovery could falter.
• Betmakers Technology Group Ltd (ASX: BET) has seen its short interest rise to 12.8%. Last week this betting technology company posted a 371% increase in revenue to $91.7 million but a whopping $89.2 million loss.
• De Grey Mining Limited (ASX: DEG) has leapt into the top ten out of nowhere after its short interest surged to 11%. Short sellers seem to believe the market is too optimistic on the development of the Mallina Gold Project.
• Block Inc (ASX: SQ2) has short interest of 10.8%, which is down slightly week on week once again. However, the remaining short sellers will be pleased to learn that the payments company’s shares are expected to crash lower on Monday following a selloff on Wall Street.
• Nanosonics Ltd (ASX: NAN) has short interest of 10.6%, which is down slightly week on week. This infection prevention company’s shares sank deep into the red last week after the release of a disappointing result. Rising costs and new product launch delays weighed on sentiment.
• Lake Resources N.L. (ASX: LKE) has short interest of 10%, which is flat week on week. Short sellers aren’t giving up on this lithium developer despite a significant rally recently. There are doubt over the validity of its DLE technology.
• Zip Co Ltd (ASX: ZIP) has seen its short interest rise to 9.6%. Short sellers will have been pleased to see this buy now pay later provider’s shares tumbled last week after it reported another large loss.
• Inghams Group Ltd (ASX: ING) has short interest of 8.4%, which is up week on week. Short sellers have been loading up on this poultry company’s shares after the release of a disappointing result driven by higher input costs.
• Regis Resources Limited (ASX: RRL) has short interest of 8.3%, which is down week on week again. Production issues have been weighing on this gold miners shares this year.
• Megaport Ltd (ASX: MP1) has seen its short interest fall to 7.7%. Concerns over this network as a service provider’s valuation could be behind this high level of short interest. Based on Macquarie’s estimates, Megaport’s shares trade at ~88x FY 2024 earnings.

The post These are the 10 most shorted ASX shares appeared first on The Motley Fool Australia.

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More reading

• ASX 200 reporting season weekly wrap: Top risers and fallers
• Here are the top 10 ASX 200 shares today
• Here’s why UBS tips the Zip share price to halve
• BetMakers share price pops then drops as full-year revenue leaps 370%
• Zip’s FY22 loss is 165% of its market cap. So why did its shares go up?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Betmakers Technology Group Ltd, Block, Inc., EML Payments, MEGAPORT FPO, Nanosonics Limited, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc., EML Payments, and Nanosonics Limited. The Motley Fool Australia has recommended Betmakers Technology Group Ltd, Flight Centre Travel Group Limited, and MEGAPORT 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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