In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a strong gain. At the time of writing, the benchmark index is up 1.5% to 6,778.4 points.

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

Austal Ltd (ASX: ASB)

The Austal share price is down 6% to $2.26. This is despite there being no news out of the shipbuilder on Monday. However, in recent news, last week, the company was ordered to pay a $0.65 million penalty for a disclosure breach.

New Hope Corporation Limited (ASX: NHC)

The New Hope share price is down 5% to $7.06. The catalyst for this has been the coal miner’s shares trading ex-dividend this morning for its latest dividend. Thanks to sky high coal prices, last month the company was able to declare a mammoth fully franked final dividend of 56 cents per share. This was the equivalent of a fully franked 7.3% dividend yield at Friday’s close price. Eligible shareholders can look forward to receiving this dividend on 8 November.

Playside Studios Ltd (ASX: PLY)

The Playside share price is down 2.5% to 60 cents. This morning the video game developer released its first quarter update and revealed a modest 6.5% quarter on quarter increase in revenue to $6.5 million. This wasn’t enough to cover its operating costs, leading to an operating cash outflow of $0.85 million.

South32 Ltd (ASX: S32)

The South32 share price is down 2% to $3.64. This follows the release of a mixed quarterly update from the mining giant this morning. South32’s production during the quarter was a little hit and miss. One of the disappointments was its met coal production, which fell short of expectations and has forced a reduction in its full year production guidance.

The post Why Austal, New Hope, Playside, and South32 shares are dropping appeared first on The Motley Fool Australia.

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More reading

• Why is the BHP share price leaping 4% on Monday?
• Here are 3 ASX All Ords shares turning ex-dividend this week
• The ASX 200 is roaring higher so why is the New Hope share price sinking 7%?
• South32 share price higher despite met coal downgrade
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Austal Limited. 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 ASX share market goes through volatility sometimes. Ups and downs are common although, like a rollercoaster, it can feel uncomfortable to live through.

It can be very unsettling to see the value of one’s portfolio drop heavily in a relatively short time.

There’s a saying about the share market: It goes up like a staircase and falls like an elevator.

How can investors stay calm and carefree during these volatile times or the next crash? I think there are a few things to keep in mind.

Have an emergency fund

Emergencies are unexpected. We don’t know when they’re going to hit.

In a financial emergency, someone may need enough money to buy a new fridge, replace a written-off car, or even have enough cash to live off for months in case of job loss.

Regardless of investing, I do think it’s a good idea for every adult Aussie to have an emergency fund large enough to protect them from the worst (realistic) financial problem. For a family, that could be the main breadwinner losing their income, so having between three to six months of living expenses saved up could be a good move.

I also think having an emergency fund is a good idea so that investors don’t have to sell their ASX shares at precisely the wrong time to raise cash. Selling shares during a downturn – when share prices are down – wouldn’t be ideal.

Bad news sells

Newspapers (and their websites) want to try to generate as much reader intrigue as possible.

Having a title like “ASX share market loses $50 billion in one day” can certainly stir up emotions, and make us want to read about it so that we feel more ‘informed’.

I think it’s human nature to want to try to protect ourselves from harm. However, we’re not being chased by a lion. Instead, it’s just the stock market going through volatility. Personally, I think it’s better to avoid reading scaremongering news so that we can focus on the long term and steer clear of making fear-based decisions (such as selling shares, or not investing) during these times.

Invest in resilient businesses

Sometimes a downturn will be painful for a company, perhaps bad enough to force that business to close down.

I try to avoid businesses that have questionable business models, are dangerously indebted on their balance sheets, or are loss-making with no possibility of profit in sight.

Picking businesses that could display good resilience during a downturn allows us to sleep better at night and ensures there are no casualties in our portfolios.

There are a good number of candidates that could be called resilient. As examples, I’ll name businesses like Coles Group Ltd (ASX: COL), Woolworths Group Ltd (ASX: WOW), and Telstra Corporation Ltd (ASX: TLS) as blue chips that could continue to see solid demand during a downturn.

See it as an opportunity

As an investor, I would like to invest in the ASX shares I pick at the lowest possible price.

I think that recessions and market downturns can present the best time to buy shares.

While Australia isn’t in recession, there is plenty of investor pessimism with a number of sectors seeing declines, such as ASX retail shares. For example, in 2022 to date, the Wesfarmers Ltd (ASX: WES) share price is down 26% while the JB Hi-Fi Limited (ASX: JBH) share price is down 16%.

When share prices fall, I think investors should try to see it as an opportunity. Legendary investor Warren Buffett once said the following about share market declines:

To refer to a personal taste of mine, I’m going to buy hamburgers the rest of my life. When hamburgers go down in price, we sing the ‘Hallelujah Chorus’ in the Buffett household. When hamburgers go up in price, we weep. For most people, it’s the same with everything in life they will be buying — except stocks. When stocks go down and you can get more for your money, people don’t like them anymore.

Remember history

It’s worth remembering past performance is not a guarantee of how future performance will go.

But, I think it’s useful to remember that the (ASX) share market has gone through plenty of volatility before. The COVID-19 crash in early 2020 and the GFC were two of the latest heavy declines.

The pain we’ve seen in 2022 is just the latest in a long list of difficult times for investors. But the share market has typically recovered in the past, eventually. Of course, it could take months or years.

While the past may suggest that recovery eventually happens, we don’t know how long it will take or what will drive it. This may not help in the short term, but I think it can give investors some strength to hold on for the potential recovery.

The post 5 ways to be carefree during the next ASX share market downturn appeared first on The Motley Fool Australia.

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More reading

• Could chasing high yields mean missing out on potentially top-notch ASX dividend shares?
• Has CBA just become a new competitor to Telstra?
• Telstra shares: Buy, hold, or fold?
• Analysts say these top ASX dividend shares are buys right now
• Don’t miss out on these buy-rated ASX dividend shares: analysts

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 COLESGROUP DEF SET, Telstra Corporation Limited, and Wesfarmers Limited. The Motley Fool Australia has recommended JB Hi-Fi 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 Macquarie Group Ltd (ASX: MQG) share price is pushing higher on Monday.

In afternoon trade, the investment bank’s shares are up 2.5% to $161.74.

While this has been driven largely by a rebounding ASX 200 index, there could also be some pre-results buying from investors.

Is the Macquarie share price a buy before the bank’s results?

While it is always risky to buy shares ahead of the release of results, it hasn’t stopped investors from loading up today.

But is this a good idea?

Ahead of the release of the Macquarie half-year result on Friday, here’s what brokers are saying about the bank.

What are brokers saying about Macquarie?

The team at Citi is sitting on the fence with Macquarie’s shares right now and has a neutral rating and $172.00 price target on them.

It highlights that there are a lot of unknowns with the company’s upcoming results and isn’t recommending investors buy shares before the release. It explained:

Consensus earnings expectations have been little changed over the year, despite material moves across a number of asset classes and FX. While the falling AUD should ordinarily be a material tailwind for MQG given its offshore earnings, we find that these could be mitigated by lower AUM as equities and fixed income AUM will be lower on a mark-to-market.

As a result, the key earnings drivers for MQG remain gains on sale and commodities. These two pillars of earnings will need to keep delivering for MQG to cycle material results in FY22. While commodities could be supported by energy market dislocation, deal-linked revenue is susceptible to the material tightening in financial conditions. We stay Neutral given the pullback in the stock. Commodity volatility is likely to extend beyond investors’ expectations, but the risk is that consensus will have revisit the outlook ex-commodities in the coming months.

Whereas over at Morgans, its analysts named the investment bank as one of its best ideas for the month.

The broker has an add rating and $214.96 price target on its shares. It said:

We continue to like MQG’s exposure to long-term structural growth areas such as infrastructure and renewables. The company also stands to benefit from recent market volatility through its trading businesses, while it continues to gain market share in Australian mortgages.

Around this time on Friday we’ll know which broker has made the right call on the Macquarie share price.

The post Is the Macquarie share price a buy ahead of the bank’s results on Friday? appeared first on The Motley Fool Australia.

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• Own Macquarie shares? Here’s what to expect from the bank’s half-year results
• Broker says these ASX dividend shares are buys this month
• Down 7% in a month, is the Macquarie share price an ASX 200 bargain buy?
• What’s the outlook for ASX 200 bank shares in Q2?
• A mortgage ‘battleground’ is coming. UBS names ASX 200 bank shares best placed to win

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 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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For many ASX dividend investors, high yields and top-notch dividend shares are one and the same. And it could be said to be fairly true, if indeed the only goal of an investor was maximising raw dividend cash flow. But if an investor was chasing overall returns rather than just pure cash, then we might start to have a problem with this thesis.

It’s obvious that a high dividend yield does not equate to overall performance. One only has to look at the historical returns of some of the most famous ASX dividend shares to see this in action. Take Telstra Corporation Ltd (ASX: TLS). Telstra has long been an ASX dividend investor favourite.

Yet the Telstra share price has failed to give investors any kind of long-term capital appreciation. Indeed, its all-time high of close to $9 a share occurred in the 20th century. It has not even come close to its high watermark in the 21st thus far.

High yield ASX dividend shares aren’t always winners

Or Westpac Banking Corp (ASX: WBC). As an ASX big four bank, Westpac is also a favourite of the ASX dividend investor. Yet Westpac shares are today going for the same price as the bank was back in 2006. That’s a long time to wait for no capital gains.

And we won’t even mention AGL Energy Limited (ASX: AGL).

So what is the best way to choose a top-notch ASX dividend share, to sort the wheat from the chaff, if not from yield? Well, let’s see what an ASX expert reckons.

Rob Crookston is an equity strategist with ASX broker Wilsons. He recently penned an article on how he selects top-notch ASX dividend shares.

This is where he starts:

We think selecting a dividend strategy by its initial yield is a poor choice because the growth of the dividend over time ultimately determines the income payouts in future years…

We look for dividend-paying companies that can deliver growth year over year, continuously compounding cash flows each year. This is the template for companies we consider when thinking about income investing.

These companies typically increase the dividends they pay to shareholders due to their cash flow growth.

An example

To illustrate, Crookston compares the performances of two ASX dividend shares over the past ten years: APA Group (ASX: APA) and GPT Group (ASX: GPT). He points out that back in 2012, APA and GPT both had comparative dividend yields of around 5.3%. That would generate dividend income of $5,300 a year if an investor was to invest $100,000 into either share a decade ago

However, Crookston points out that $100,000 investment in APA would today be yielding around $11,200 in annual dividend income, or an 11.2% yield on the original capital. That’s thanks largely to APA’s consistent dividend increases.

In contrast, GPT hasn’t been able to keep up with that kind of growth. Its shares would only be netting that same investor $6,900 in annual income today.

As Crookston explains it:

The actual market yields of APA or GPT have not diverged significantly over the last 10 years; both stocks are expected to generate a ~5-6% yield if you invested today.

However, the share price of APA has appreciated in line with the income growth and this has led to a significantly higher total return than GPT. The key here is to take a long-term approach when it comes to dividend investing.

The higher the yield, the higher the risk?

So as you can see, a company’s dividend yield is just one of many factors an investor needs to consider to find really top-notch ASX dividend shares. To go one step further, the higher a company’s dividened yield is, the more investors should be cautious.

The market loves a good dividend just as much as we do. And if a share has been priced with a large yield, it usually indicates that it is coming with risks attached.

So make sure you look behind that raw yield figure when trying to find your next dividend winner. Your cash flow ten years from now will thank you for it!

The post Could chasing high yields mean missing out on potentially top-notch ASX dividend shares? appeared first on The Motley Fool Australia.

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More reading

• Has CBA just become a new competitor to Telstra?
• Telstra shares: Buy, hold, or fold?
• Analysts say these top ASX dividend shares are buys right now
• Is there something strange going on with Telstra shares today?
• Broker upgrade: Westpac share price tipped to keep rising

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation 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 positions in and has recommended APA Group and Telstra Corporation Limited. The Motley Fool Australia has recommended 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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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.

We won’t officially be in a recession until the National Bureau of Economic Research says so. However, you can nearly throw a rock in any direction and find an economist who thinks a recession is probably on the way.

For example, Johns Hopkins economics professor Steve Hanke stated a month ago that he believes there’s at least an 80% chance of a recession. Non-profit research group The Conference Board recently pegged the probability at 96%. The latest Bloomberg economic model projects a 100% chance of a recession by October 2023. 

These forecasts don’t guarantee that a recession is coming. But it’s possible that the current bear market will continue for a while longer. That doesn’t mean that every stock will be a big loser, though. Which stocks are most likely to thrive in a recession? Here’s what history shows.

Some bad news

The SPDR Select Sector exchange-traded funds (ETFs) are good proxies for gauging how different sectors perform during recessions. One primary downside of using them is that most of these ETFs have only been around since the late 1990s. However, the U.S. has experienced three recessions during that period, so the SPDR Select Sector ETFs should be able to help in determining which stocks historically thrive in a recession.   

I’ve got some bad news, though. None of the SPDR Select Sector ETFs performed well in all three recessions that occurred over the past 25 years. 

The Consumer Staples Select Sector SPDR Fund (NYSEMKT: XLP) held up well during the recession of 2001. However, it still slid a little. The Materials Select Sector SPDR ETF (NYSEMKT: XLB) performed similarly during the first recession of this century. (The shaded area in the charts below indicates the period when the U.S. economy was in recession.)

XLP data by YCharts

However, both of these ETFs plunged during the Great Recession that began in late 2007 and went through mid-2009. So did every other sector ETF — including (perhaps surprisingly) the Utilities Select Sector SPDR Fund (NYSEMKT: XLU). 

XLP data by YCharts

All of the sector ETFs also tanked during the brief coronavirus-fueled recession of 2020. However, the Consumer Staples Select Sector SPDR Fund didn’t fall nearly as much as the others did.

Looking for exceptions

The cold, hard truth is that no category of stocks thrives in all recessions. But it’s clear from examining the past that consumer staples stocks tend to perform better than most. Your best bet, though, is to look for exceptions. I’m referring to stocks that have factors working to their advantage so much that investors want to buy them even when the overall economy stinks.

Johnson & Johnson (NYSE: JNJ) stood out as this kind of stock during the recession of 2001. The healthcare giant continued to deliver revenue and earnings growth throughout the period. It completed the $10.5 billion acquisition of ALZA Corporation. The blue-chip stock was also viewed as a safe haven for investors worried about the dot-com bubble bursting.

JNJ data by YCharts

Walmart (NYSE: WMT) performed exceptionally well during the Great Recession, especially considering how most stocks plunged. Investors realized that the serious economic downturn would mean that consumers would have to tighten their purse strings. That worked to the advantage of the big discount retailer.

WMT data by YCharts

Moderna‘s (NASDAQ: MRNA) share price skyrocketed during the quick recession of 2020. That’s not surprising. The company was one of the early leaders in developing coronavirus vaccines. Moderna was a natural choice for investors to flock to during the uncertain times at the beginning of the COVID-19 pandemic.

MRNA data by YCharts

Likely outliers in the next recession

Which stocks might be outliers in the next recession, assuming it isn’t too far off? I think we can learn from history. 

Walmart could again defy gravity if the U.S. economy enters into a recession. My view is that another discount retailer, Dollar General (NYSE: DG), should do so as well.

Dollar General is outperforming Walmart so far this year. The company continues to build new stores. It’s also expanding its frozen and refrigerated goods offerings. Dollar General should benefit as consumers increasingly try to stretch their dollars.

Just as Johnson & Johnson and Moderna performed well during two previous recessions, I suspect another drug stock will do so during the next recession — Vertex Pharmaceuticals (NASDAQ: VRTX). Vertex’s revenue and earnings will almost certainly grow robustly even amid an economic downturn. 

The big biotech also has a pipeline with multiple potential blockbusters likely on the way. Vertex expects to file for regulatory approvals for one of them (gene-editing therapy exa-cel) before year-end. With fears of a recession increasing, I think that Vertex is arguably the best stock to buy right now.  

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

The post Which stocks are most likely to thrive in a recession? Here’s what history shows appeared first on The Motley Fool Australia.

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Keith Speights has positions in Dollar General and Vertex Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Vertex Pharmaceuticals and Walmart Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and Moderna Inc. The Motley Fool Australia has recommended Vertex Pharmaceuticals. 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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

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

Adairs Ltd (ASX: ADH)

According to a note out of UBS, its analysts have retained their buy rating but cut their price target on this homewares and furniture retailer’s shares to $3.25. While the broker acknowledges that the company’s outlook could be challenging, it was pleased to see that Adairs is performing in line with its expectations so far in FY 2023. Overall, the broker believes the company’s shares offer a lot of value after pulling back materially this year. The Adairs share price is trading at $2.04 on Monday afternoon.

Allkem Ltd (ASX: AKE)

Analysts at Macquarie have retained their outperform rating but trimmed their price target on this lithium miner’s shares to $20.00. Although Allkem’s quarterly update was mixed and revealed that Olaroz Stage 2 commissioning is behind schedule, the broker remains positive enough to retain its buy rating. This is due to its bullish view on lithium prices and Allkem’s growing production. The Allkem share price is fetching $14.79 this afternoon.

Life360 Inc (ASX: 360)

A note out of Bell Potter reveals that its analysts have retained their buy rating and lifted their price target on this location technology company’s shares to $9.25. Bell Potter notes that Life360 is increasing prices for all monthly iOS subscribers in the US to the same level which now applies to new monthly iOS and Android subscribers. While this is expected to result in some subscriber churn, trials have been successful and showed lower than expected levels. Bell Potter sees this as a positive and has boosted its estimates and now expects Life360 to be EBITDA profitable in 2023. The Life360 share price is trading at $7.25 on Monday.

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

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More reading

• Broker says the Allkem share price can rise another 30%
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• Why Allkem, Bowen Coking Coal, Pantoro, and Redbubble are dropping today
• Brokers name 5 ASX lithium shares to buy now

Motley Fool contributor James Mickleboro has positions in Allkem Limited and Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ADAIRS FPO and Life360, Inc. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Baby Bunting. 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 Commonwealth Bank of Australia (ASX: CBA) share price is inching ahead on Monday. Meanwhile, shares in Telstra Corporation Ltd (ASX: TLS) are failing to get the same treatment.

You might point out: CBA and Telstra are two companies operating in two distinctly different markets — the former, banking and the latter, communications. However, a move made by Australia’s largest bank could be blurring those lines.

In light of news this morning, CBA shares have retaken their position trading above $100 apiece. At the time of writing, the CBA share price is 1.22% ahead at $100.49.

Is CBA trying to eat Telstra’s lunch?

In a media release this morning, CBA unveiled that it will now provide discounted 4G and 5G mobile SIM plans via a telecom partner.

According to the release, Australia’s major bank will buddy up with More, a national network services provider with its head office in South Melbourne. According to the company’s website, the telecom company appears to differentiate itself from other mobile virtual network operators (MVNOs), partly with its ESG focus.

The partnership between More and CBA will allow the bank’s customers to secure 30% off mobile SIM plans for the first 12 months. Additionally, continuing customers will maintain a 10% discount indefinitely after the first year.

Does this mean that CBA is waging war on Telstra’s turf? Well, not exactly, but inadvertently, sort of…

It appears the initiative is being used to further entice people to become CBA customers. Though, the network offering is not operated by ASX-listed CBA.

Furthermore, More is not a telecommunications company with its own infrastructure. Instead, it piggybacks on Telstra’s mobile network. That means Telstra has a degree of control over what More could offer to its customers.

Nevertheless, if CBA’s discounts incentivise people to choose More over Telstra, then — to an extent — it would make the two foes.

Why the move from an ASX bank share like CBA?

CBA’s decision to offer discount mobile plans follows research showing more Aussies are looking at ways to save money right now.

It probably doesn’t come as a surprise — during multi-decade high rates of inflation and rising interest rates — that 45% of Australians are seeking cheaper mobile plans. In addition, 60% of those surveyed by CBA would change their plan if they were able to get a better deal.

Ultimately, CBA is still an ASX-listed bank. Though, with a tightening property market, we could see more moves for customer acquisition.

The CBA share price is down 1.9% since the start of the year. Whereas, Telstra shares have tumbled 8.8% on the ASX over the same period.

The post Has CBA just become a new competitor to Telstra? appeared first on The Motley Fool Australia.

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• Own CBA shares? This expert says you ‘may want to consider cashing in some gains’
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• Warren Buffett has been buying up big on dividend stocks. Should you?
• ASX dividend shares or distribution shares? Is there even a difference?

Motley Fool contributor Mitchell Lawler has positions in Commonwealth Bank of Australia. 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 Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Fortescue Metals Group Ltd (ASX: FMG) share price is in the green today.

The mining giant’s share price is up 2.35% and currently fetching $16.75. For perspective, the S&P/ASX 200 Index (ASX: XJO) is up 1.67% at the time of writing.

Let’s examine why the Fortescue share price is having such a good run today.

Iron ore prices lift

Fortescue is not the only ASX iron ore share rising today. BHP Group Ltd (ASX: BHP) shares is currently trading 2.78% higher today, while Rio Tinto Limited (ASX: RIO) shares are up 1.67%.

This follows the iron ore price climb in global markets on Friday. In a research note, ANZ head of economics David Plank said:

Iron ore futures edged higher on Friday, although this wasn’t enough to offset losses earlier in the week. Sentiment remains bearish as worries mount over the outlook for steel demand.

We expect steel demand in China to fall 3.5% this year, with only a marginal gain in 2023. This should keep iron ore prices under pressure.

The iron ore November futures contract is currently up 1.79% on the Singapore Exchange.

Meanwhile, Goldman Sachs analysts have recently reaffirmed a sell rating on Fortescue shares with a $13.40 price target. Analysts are predicting Fortescue’s capital expenditure to increase. Goldman said:

Overall, we forecast FMG’s capex to increase from ~US$3.2bn in FY23 to ~US$4bn by FY26 on mine and haul truck replacement and decarbonisation spend, but see upside risk to our estimate.

However, as my Foolish colleague Tristan noted recently, Fortescue is making progress on its green hydrogen projects. He predicts this could bode well for the Fortescue share price in the future.

Share price snapshot

Fortescue shares have risen 18% in the past 12 months, while they are down 12% year to date.

In comparison, the S&P/ASX 200 (ASX: XJO) has fallen 8% in the past year.

Fortescue has a market capitalisation of about $52 billion based on the current share price.

The post Why is the Fortescue share price surging today? appeared first on The Motley Fool Australia.

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More reading

• Why is the BHP share price leaping 4% on Monday?
• Why I’m not worried about Fortescue’s $9.6 billion decarbonisation plans smashing my dividends
• ASX dividend shares or distribution shares? Is there even a difference?
• Brokers name 3 ASX shares to buy today
• Broker says Rio Tinto share price is trading at a discount

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

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This week has started out strong for ASX lithium fans, with some of the market’s favourite lithium stocks leaping higher.

Indeed, these four have gained more than 10% at the time of writing. And there’s been exciting news from many of the winners.

For comparison, the S&P/ASX 200 Index (ASX: XJO) is up 1.64% right now while the All Ordinaries Index (ASX: XAO) has lifted 1.66%.

So, what’s driving these ASX lithium shares to outperform on Monday? Keep reading to find out.

Why are these ASX lithium shares soaring more than 10%?

The first ASX lithium share to be posting a gain of more than 10% on Monday is Neometals Ltd (ASX: NMT).

The sustainability-focused battery mineral producer has developed a process to recover lithium from spent batteries. However, today’s news from the company regards its Vanadium Recovery Project.

Finland has granted the project an environmental permit. The permit will allow the company to produce around 9,000 tonnes of vanadium pentoxide per annum from steel making by-product, slag.

The Neometals share price is currently up 11.14% at $1.167.

It’s joined in the green by shares in Vulcan Energy Resources Ltd (ASX: VUL) – the company behind the Zero Carbon Lithium Project.

It revealed its sorption pilot plant has produced its highest-grade lithium hydroxide to date this morning, exceeding best-on-market battery grades. It also provided an optimistic update on its definitive feasibility study, due to be released next year.

The Vulcan Energy share price is up 11.92% right now, trading at $6.76.

The Galan Lithium Ltd (ASX: GLN) share price is also having a great day, surging 17.32% out of a trading halt to reach $1.49 at the time of writing.

The lithium explorer announced its Hombre Muerto West Project’s mineral resource estimate has exploded to 5.8 million tonnes of lithium carbonate equivalent at 866 milligrams per litre lithium.

Finally, the Piedmont Lithium Inc (ASX: PLL) share price is leaping 10% to 93.5 cents today.

That’s despite the company’s silence. Though, it follows a similar gain posted by its NASDAQ listing overnight.

The post 4 ASX lithium shares surging more than 10% today appeared first on The Motley Fool Australia.

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More reading

• Galan Lithium share price rockets 28% on ‘game changing’ update
• Vulcan share price rockets 12% on lithium update
• Which ASX All Ords shares avoided a sell-off during the last recession?
• Guess which ASX lithium company is the biggest holder of Sayona Mining shares?
• Why Challenger, Novonix, Piedmont Lithium, and Woodside shares are racing higher

Motley Fool contributor Brooke Cooper has positions in Vulcan Energy Resources 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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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.

Bitcoin (CRYPTO: BTC) as a payment option could be going mainstream faster than you may think. Speaking at Yahoo Finance’s All Markets Summit, Suresh Kumar, the global chief technology officer of Walmart (NYSE: WMT), discussed some of the ways the giant retailer is planning to make crypto a key part of its future payments strategy, both for physical and virtual goods. As Kumar noted, “Crypto will become an important part of how customers transact.” 

Bitcoin, as the most popular crypto for payments, would stand to benefit the most. If a huge retailer like Walmart is really going all-in on crypto, that would be a tremendous validation point and would certainly be a bullish indicator for Bitcoin.

The metaverse and crypto

So what’s driving this newfound support for crypto as a payment option? One major factor has been Walmart’s embrace of the metaverse. As Kumar pointed out, Walmart customers are getting inspired to buy and discover new products as a result of all the time they are spending in virtual worlds. Once they are part of these virtual worlds, they are looking to pay for virtual goods, such as new merchandise for an online avatar. And that’s where cryptocurrencies like Bitcoin enter the picture.

Walmart has been stepping up its support of the metaverse recently. In September, it introduced Walmart Land and Walmart’s Universe of Play on Roblox, a popular metaverse gaming platform. Walmart was obviously intrigued by all the time customers were spending on the platform. As of June 30, Roblox boasted 52.2 million daily active users, 11.3 billion engagement hours, 12 million creators, and 32 million different experiences. 

Social media and crypto

Walmart also suggested that the new ways people are using social media has forced the company to rethink the payment options it should offer customers. For example, Walmart livestream events on social media have turned out to be a great way for customers to learn about new products and see how they are used in real life. While you are watching these events, you might want to buy products featured in them, and crypto is being explored as a frictionless way for customers to pay for these goods online. Walmart has experimented with shoppable livestream events on several different platforms, including Twitter, TikTok, and YouTube.   

Social media is also blurring the line between e-commerce and crypto, especially when it comes to non-fungible tokens (NFTs). Customers who purchase NFTs via online marketplaces now want to showcase these NFTs on social media. In response to that need, Facebook and Instagram (from Meta Platforms) now make it possible to connect your virtual wallet holding these NFTs with your social media accounts. Again, your virtual wallet holding these NFTs may also hold cryptocurrencies, so as Kumar noted in his presentation, crypto is really in the middle of things that customers like to do.

Caveats about Walmart and crypto

Of course, the big caveat here is that Kumar only specifically mentioned the metaverse and social media. For now, Walmart seems to be in the learning phase of how to make crypto part of its metaverse and social media strategy. He mentioned that crypto could lead to a “disruption in payment options,” but did not suggest that Walmart stores would suddenly start accepting Bitcoin. So some of the headlines that you might be seeing across social media may be somewhat misleading.

For Bitcoin, obviously, the biggest validation would come if Walmart eventually made paying with Bitcoin a key part of both its online and in-store experience. Right now, though, Walmart does not accept payment in cryptocurrency. Walmart has been long-rumored to be looking at Bitcoin as a payment option, but nothing official has been announced.

Obviously, it’s exciting news that a major retail giant like Walmart is getting more involved with the metaverse and cryptocurrencies. People often like to point to Walmart’s patent filings for NFTs and crypto tokens, as well as the company’s recent embrace of in-store Bitcoin ATM machines, as proof that the company is close to getting really serious. If and when Walmart goes all-in on crypto, that could be a screaming buy signal for Bitcoin.  

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

The post If this US retail giant is serious about crypto, Bitcoin might soar appeared first on The Motley Fool Australia.

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More reading

• Why the Bitcoin price could soar in the coming years
• Could the next bull run be coming for the Bitcoin price?
• How has the Bitcoin price responded to the network’s latest hiccup?
• Crypto surges: Is now the time to buy Bitcoin and Ethereum?
• I’ve already made 158% on Bitcoin. Here’s why I keep holding

Dominic Basulto has positions in Bitcoin. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Bitcoin, Meta Platforms, Inc., Roblox Corporation, Twitter, and Walmart Inc. The Motley Fool Australia owns and has recommended Bitcoin. The Motley Fool Australia has recommended Meta Platforms, Inc. 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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