The Latitude Group Holdings Ltd (ASX: LFS) share price is down in early trade Friday after the first-half results for FY22 and the exit of its chief executive were announced.

At the time of writing, the financial services provider’s shares are down 0.63% to $1.58 apiece.

What did the company report?

• Statutory net profit after tax (NPAT) of $30.6 million, down 57% half-on-half and down 66% year-on-year (YoY)
• Cash net profit after tax of $93 million, down 11% YoY
• Total operating income of $370.4 million, down 9% YoY
• Dividend remains the same as 2H21 and 1H21 — 7.85 cents per share fully franked
• Managing director and chief executive Ahmed Fahour to retire by the end of August 2023 after more than four years in the position

What else happened in 1H22?

The major event for Latitude during the half-year was its attempted acquisition of the buy now, pay later business of Humm Group Ltd (ASX: HUM).

The $250 million proposal was ultimately mutually terminated. While neither party officially put up a reason for backing out, the business’ poor performance updates likely didn’t help.

The market consensus seemed to be that Latitude dodged a bullet. The Latitude share price rocketed up after the cancellation of the deal, while Humm’s valuation plummeted.

Earlier this month, which was well after the first half ended, Latitude sold its insurance arm Hallmark to St Andrew Insurance Group.

What did management say?

Fahour said of the first-half result:

The cash NPAT result of $93 million, which is above consensus forecast, and our strong underlying balance sheet highlight Latitude’s competitive and strategic advantage at a time of economic uncertainty. We have positioned the business to take advantage of the growth opportunities that we believe will emerge in the next 12-18 months. 

He then said of his departure:

While this is a difficult decision, after four years as CEO, now is the right time to prepare for my departure next year and support the Board as it plans for my succession as chief executive.

Getting Latitude ready for life as a public company and then realising that goal during a global pandemic with last year’s IPO is something that I am particularly proud of.

What’s next?

Latitude declined to give specific guidance for the second half and the full year.

However, the board stated:

Despite increased funding costs with the sharp rise in official interest rates in Australia and New Zealand, product re-pricing and other implemented measures will help offset the impact on margins. 

Latitude will gain further benefits from the full integration of Symple Loans, the growth in travel, cost discipline and productivity increases.

While unemployment remains low, Latitude anticipates delinquencies to stay below historical levels and it will persist with a prudent approach to credit underwriting. Receivables growth should be less affected by elevated repayments as higher cash rates erode excess consumer savings and governments end COVID-related financial assistance. Latitude’s instalments business will also benefit as the higher cash rate adds to the attraction of its ‘interest free’ proposition. 

Latitude Group share price snapshot

The Latitude share price has dipped more than 20% this year to date.

However, it has rallied nicely from its 23 June trough, having put on more than 47% since then.

The dividend yield currently sits at an eye-popping 9.9%.

The post Latitude share price slides as CEO exits, profit plunges appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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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There’s been plenty of recession talk in Australia and across the globe this year. It was seemingly spurred by rife inflation and resulting interest rate hikes, both adding to the soaring cost of living. But such recession concerns might have sparked a buying opportunity for some S&P/ASX 200 Index (ASX: XJO) shares.  

And two in particular are catching the eyes of fund managers. Let’s take a look at the ASX 200 shares tipped to gain if recession fears fade.

Are these ASX 200 shares worth looking at?

Two sectors have been tipped as post-recession risk winners; lithium and building.

And TMS Capital’s Ben Clark and Marcus Today’s Henry Jennings told Livewire these ASX 200 shares will be their top picks if recession risks waver.

Pilbara Minerals Ltd (ASX: PLS)

Jennings told the publication that, if China emerges, COVID-19 fades into the background, and a recession doesn’t occur, the world will likely ramp up its push towards electric vehicles.

And with that potential trend in mind, the fundie likes the look of lithium favourite Pilbara Minerals.

He also said his head has been turned by upcoming Australian lithium producer Core Lithium Ltd (ASX: CXO).  

The Pilbara Minerals share price closed on Thursday at $3.06.

Reece Ltd (ASX: REH)

Looking to an entirely different sector, Clark said TMS Capital has been buying shares in ASX 200 plumbing and bathroom products supplier Reece. He told Livewire:

It’s been sold down aggressively, and it’s because of concerns about building and renovation activity, but I think that the renovation market here might hold up better than expected. Certainly, if recession fears fade it will. 

But it’s the company’s MORSCO business that’s really drawn Clark’s eye. MORSCO is a leading US distributor of plumbing, waterworks, and heating and cooling equipment. It was snapped up by Reece in a $1.9 billion acquisition in 2018. The fundie continued:

MORSCO is the biggest player in places like Florida and Texas where there’s huge amounts of house building and renovation happening. We still see some really good forward progress for Reece and it will certainly move if the market starts to get less bearish on a recession.

At Thursday’s close, shares in Reece were worth $16.25 apiece.

The post 2 ASX 200 shares set to soar if we manage to avoid a recession: experts appeared first on The Motley Fool Australia.

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

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The Rio Tinto Limited (ASX: RIO) share price has flatlined recently and is currently around 2% higher than this time last month.

The miner’s shares closed on Thursday trading at $97.10 apiece, within range of their July 2022 levels.

But what do brokers think about the Rio Tinto share price? Let’s take a look.

Are Rio Tinto shares a buy?

Analyst opinion is fairly mixed on the stock’s status, with 11 out of 18 brokers saying it’s a buy and the remainder rating it a hold, according to Refinitiv Eikon data.

The consensus price target from this list is $113.36 per share, suggesting the group predicts a sizeable amount of upside yet to be priced in.

Those at Citi said that Rio still produces “robust” free cash flow, which could potentially pay up to $8.32 per share in dividends in FY22.

That dividend could potentially increase to $9.40 per share in FY23 if the miner continues its pace of free cash flow generation, Citi says.

Meanwhile, iron ore continues its sharp ascent and has reversed off highs of USD$119 per tonne on 1 August to reset at USD$105 per tonne on last check.

The volatility is matched within the Rio share price over extended periods, as seen in the chart below over the past six months.

With these factors in mind, it depends on investor process and preference as to whether Rio Tinto shares are a buy right now or not.

Analyst sentiment is tilted to bullish. However, underlying market fundamentals might be tightening, according to Trading Economics.

“Demand has also been suppressed by a worsening macroeconomic backdrop for the Chinese economy, with the latest data showing concerning figures for industrial production and retail sales that added to woes regarding the financial stability of the country’s property developers,” it said in a recent note.

The Rio Tinto share price is down more than 9% over the past 12 months.

The post Are Rio Tinto shares a buy? See what top brokers are saying appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Incannex Healthcare Ltd (ASX: IHL) share price has curled up in recent weeks, having bounced from yearly lows of 19 cents on 1 August.

At the time of writing, it is priced at 31 cents apiece, ready to open the session on Friday.

Meanwhile, the S&P/ASX 200 Health Care Index (ASX: XHJ) has climbed almost 1.5% in the past month of trade.

Is the Incannex share price climbing back?

After a bumpy few months, the Incannex share price has turned a corner in November and has lost 40% in the past month of trade.

Most recently the company advised of its strategic review of operations and assets, pointing out its $290 billion addressable market and potential $2 billion a year in revenue from psychedelic therapies.

It also said the obstructive sleep apnoea market is set to grow up to 6.2% per year from a valuation of US$10 billion.

Investors had a nibble following the release, although there was no immediate reaction from the update.

The question then becomes, just how much of the forward looking company growth is already priced into the stock.

Moreover, healthcare shares have caught a bid lately and are resting in the green.

The sector strength could potentially transpose onto the Incannex share price, meaning it would be on the clawback.

Other factors, such as recession fears, inflationary pressures and interest rate hikes are also equally important to consider.

Incannex had a cash position of $37.5 million as of 30 June 2022. It realized this after raising $24 million in an equity raising earlier in May 2022.

Returns for this year of trade are shown on the chart below.

Over the past 7 to 8 months, the Incannex share price is down more than 50%, however it has regained stem since August.

The post Up 35% in a month, is the Incannex share price on the comeback trail? appeared first on The Motley Fool Australia.

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• The Incannex share price has plunged 70% so far in 2022. What’s gone so wrong?

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

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The Pilbara Minerals Ltd (ASX: PLS) share price has recorded notably larger trading volumes this week.

This comes despite the company not releasing any price-sensitive announcements since the results of its BMX auction earlier this month.

At Thursday’s market close, shares in the lithium miner finished 1.92% lower at $3.06 apiece.

Let’s take a look at what could be spurring investors to exchange ownership papers in Pilbara Minerals lately.

What’s going on with Pilbara Minerals this week?

After climbing to a four-month high of $3.25 on Tuesday, the Pilbara Minerals share price has tumbled by 6% since.

Trading volumes were in line with the 30-day moving average of 20 million shares being bought and sold. However, on Wednesday, this level increased to almost 50 million shares being swapped.

One reason why could be the relative strength index (RSI) which hit 78 on 15 August – just before traders swung into action.

The RSI is a momentum oscillator that is used to assess the strength or weakness of a share price. Normal levels range between 30 and 70, but anything outside this tells us if the share price is cheap or expensive.

In this instance, when the RSI touched 78, Pilbara Minerals shares were considered to be overbought by investors. Hence, this caused a retracement in the RSI as well as the share price in the following days.

It appears that investors were taking profit after the share rose 65% from its year-to-date low of $1.975 on 14 June.

Currently, the RSI for Pilbara Minerals shares stands at 64 (within the acceptable range below the sell signal).

Keep an eye out next Tuesday as the company is scheduled to report its full-year results for FY 2022.

Pilbara Minerals share price snapshot

With the lithium spot price rising to unprecedented levels, the Pilbara Minerals share price has accelerated by 43% in the past year.

Its shares are down 4% in 2022 but this is because of the extreme volatility that impacted the market earlier on in the year.

In comparison, the S&P/ASX 200 Materials (ASX: XMJ) sector lagged in July and is down 2% year-to-date.

Pilbara Minerals presides a market capitalisation of approximately $9.29 billion.

The post Why are Pilbara Minerals shares seeing so much action this week? appeared first on The Motley Fool Australia.

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• Top brokers name 3 ASX shares to buy next week

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

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In an era of high inflation, most businesses are having to deal with more expensive supply costs.

So you might be surprised to find a S&P/ASX 200 Index (ASX: XJO) company that is enjoying falling input costs.

And investors could surmise that will be a competitive advantage.

The team at Firetrail thinks CSL Limited (ASX: CSL) is precisely in this enviable position.

‘Counter-cyclical nature’ of this input cost

One of the big activities for CSL is the collection of blood plasma. While paying donors is illegal in Australia, in the US that is the norm.

The Firetrail analysts’ interest in the biotechnology giant piqued recently when it heard a juicy tidbit from a plasma collection rival.

“At its June 2022 result, CSL’s competitor Takeda Pharmaceutical Co Ltd (TYO: 4502) announced that the fees it pays to plasma donors have reduced by 15% per litre,” read their memo to clients.

During the first couple of years of the COVID-19 pandemic, donor numbers plunged as communities were locked down or people were reluctant to physically visit donation centres.

This meant that donor compensation was raised to provide a higher incentive, and to compete with “substantial levels of fiscal stimulus”.

But now as the US shifts to post-COVID life, these fees can be reduced.

“We could see that reverse now that household budgets are becoming more stretched,” said the Firetrail team.

“The counter-cyclical nature of this cost driver is one of the key underpinnings to our positive investment thesis on CSL.”

2022 bad, 2023 good

The Firetrail team is not the only one bullish on CSL’s future.

The CSL share price on Wednesday morning plunged 4.8% after it released its financial results, which saw net profit fall for the 2022 financial year.

But both S&P Global Ratings and Moody’s cited the pending growth in plasma collections as a major tailwind for financial year 2023.

“Significant growth in the volume of plasma collected mitigates any concern around inventory, despite higher donor costs,” said Moody’s Investors Service vice president Ian Chitterer.

“The influenza business continues to perform strongly with record sales once again over the year.”

CSL shares are up just 0.38% for the year-to-date. It is still yet to re-touch its pre-COVID highs.

The post Buy this ASX 200 company as its costs are actually falling: Firetrail appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has positions in CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. 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 Cochlear Limited (ASX: COH) share price is in focus this morning after the company dropped its financial year 2022 (FY22) earnings.  

Shares in the leader in implantable hearing devices closed Thursday’s session at $214.20.

Cochlear share price in focus on record sales revenue

• Record sales revenue of $1,641.1 million ­­­– a 10% increase on that of the prior comparable period (pcp)
• Statutory net profit fell to $289.1 million – an 11% drop
• Underlying net profit, however, lifted to $277 million – an 18% improvement and within guidance
• Underlying earnings before interest and tax (EBIT) came to $382.7 million – a 17% increase
• Basic earnings per share (EPS) slipped 11% to $4.396, while underlying EPS rose 18% to $4.21
• Revealed a $1.45 partially franked final dividend, bringing its full-year payout to $3 – an 18% increase

The company sold 38,182 Cochlear implant units last financial year, marking a 5% year-on-year improvement. It noted its record sales revenue was driven by demand for acoustic implants and sound processor upgrades, with all regions and product segments tracking above pre-pandemic levels.

It boasted an underlying net profit margin of 17%, or 18% when excluding the impact of cloud computing-related expenses.

Its capital expenditure lifted 16% to $77.2 million last fiscal year, while its full-year dividends represent 71% of its underlying net profit.

Its cash balance also grew in FY22, ending the period at $587 million, boosted by strong cash flows. Operating cash flow lifted to $377 million over the period and free cash flow increased to $238 million.

What else happened in FY22?

The major news from Cochlear last financial year was its intent to acquire Oticon Medical. It agreed to snap up the loss-making hearing solutions provider for $170 million in April.

The Cochlear share price slipped 0.5% on the back of the news.

The acquisition is expected to add between $75 million and $80 million to the ASX-listed company’s annual revenue. Though, it expects to fork out around $30 million to $60 million in integration costs to get there.  

What did management say?

In a letter to shareholders enclosed in the company’s full-year results, Cochlear chair Alison Deans and CEO and president Dig Howitt commented:

We are pleased to report strong growth in sales revenue and profitability with all regions and product segments tracking above pre-COVID levels.

Our clear growth opportunity and strategy, combined with a strong balance sheet, mean we are well placed to create value for our stakeholders now, and over the long term.

What’s next?

Cochlear’s earnings guidance for financial year 2023 forecasts another year of profit growth.

It expects its underlying profit to come in at between $290 million and $305 million. That represents a potential year-on-year increase of between 5% and 10%, or between 8% and 13% when adjusted for increased cloud computing-related expenses.

It also predicts its investment in cloud computing to cost around $36 million – $14 million more than it did last financial year. Meanwhile, its capital expenditure is expected to come in at around $80 million.

The company believes trading conditions will improve over the fiscal year. Though, it admits intermittent COVID-related hospital or region-specific elective surgery restrictions are likely to continue. It also predicts that FY23 will be weighted to the second half.

Cochlear share price snapshot

The Cochlear share price has struggled in recent months.

It has fallen 4% since the start of 2022 and is currently trading 16% lower than it was this time last year.

For comparison, the S&P/ASX 200 Index (ASX: XJO) has dumped 6% year to date. It’s also fallen 5% over the last 12 months.

The post Cochlear share price in focus as sales revenue surges to record $1.6b appeared first on The Motley Fool Australia.

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

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The Xero Limited (ASX: XRO) share price has taken a bit of a beating this week.

Investors have been selling this cloud accounting software platform provider’s shares following the release of a trading update at its annual general meeting.

That update revealed that the company’s growth in the key UK market has been somewhat underwhelming. 

Is the Xero share price weakness a buying opportunity?

According to a note out of Goldman Sachs, its analysts believe that this weakness has created an opportunity for investors to pick up shares.

In response to the update, the broker has retained its buy rating with a slightly trimmed price target of $111.00.

Based on the current Xero share price of $90.65, this implies potential upside of 22% for investors over the next 12 months.

What did the broker say?

Goldman has been busy updating its estimates to reflect the “subdued UK commentary at its AGM” and other data.

It commented:

Despite overall/market specific revenue being inline with internal forecasts, Xero’s UK sub momentum has remained softer than its expectations (FY22 commentary implied an improved trajectory into FY23, i.e. > 130k).

Although limited in detail, it is clearly a disappointment for Xero to see continued UK weakness, given the overall importance of this market.

The broker believes this has been driven by changes to its strategy and an improved performance from rival Sage.

We believe this reflects: (1) Xero’s decision to revise its go-to-market strategy, from broad based account managers into more specific roles (i.e. acquisition, upsell), alongside improving the geographic locations post covid; (2) recent KMP changes; and (3) an improved performance from incumbent Sage, who recently revised rev guidance higher. 

The good news is that Goldman is confident that this is just a temporary issue and that the tide will turn soon.

Over time the Xero specific issues should resolve, noting improved UK High freq. data trends.

What else did Goldman say?

The broker also highlighted a few positives that investors might want to reflect on. It said:

Other XeroCon London takeaways: (1) Annual price rises introduced by Xero were less of a concern than expected, highlighting its pricing power; (2) Similarly the app store fee that was introduced in late 2021 did not appear to be an issue; (3) Prevalence of bridging software across Xero partner accountants was higher than we expected; and (4) MTD for income tax is a material subscriber opportunity from Apr-2024, supporting the launch of XeroGo at the conference.

All in all, this gives Goldman the confidence to retain its bullish view on the Xero share price.

The post Here’s what Goldman Sachs thinks of the Xero share price appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. 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 team at Morgans has been busy looking at the plethora of results that have been flooding in this month.

Two ASX shares that it believes performed strongly are listed below. Here’s why it was impressed enough to put buy ratings on their shares:

Corporate Travel Management Ltd (ASX: CTD)

This corporate travel specialist could be an ASX share to buy according to Morgans. It was impressed with the company’s strong performance during FY 2022 and notes that it beat its guidance. Overall, the broker has seen enough to keep the company as its top pick in the travel sector.

Morgans also sees plenty of upside for its shares. In response to its FY 2022 results, the broker has retained its add rating and $25.65 price target on the company’s shares. This compares favourably to the latest Corporate Travel Management share price of $20.66.

Its analysts explained:

CTD’s FY22 result beat its guidance, our forecast and consensus following a particularly strong 4Q22 recovery. Unlike its peers, CTD was profitable at the bottom line (NPAT and not just EBITDA). Strong cashflow, a strong balance sheet (no debt) and a final dividend (sign of confidence) and were other key highlights.

4Q22 trends bode well for strong earnings growth in FY23 despite macro uncertainty, restricted airline capacity and question marks over when China will reopen. Our forecasts are largely unchanged. CTD remains our key pick of the travel sector.

Super Retail Group Ltd (ASX: SUL)

Morgans remains positive on this retail conglomerate. It was pleased with Super Retail’s full year results and believes that it should have a strong first half to FY 2023.

In response to its results, the broker has retained its add rating with an improved price target of $13.00. This implies major upside from the latest Super Retail share price of $10.07.

The broker commented:

SUL surprised the market by reporting much more resilient earnings in FY22 than had been forecast. EBIT of $397m was 15% higher than our estimate due to 4% higher sales and 110 bp higher margins.

With no signs yet that the consumer is pulling back in Australia, it looks likely that 1H23 earnings will be resilient, especially against lockdown-affected comps. We still model a 17% y/y decline in PBT in FY23, but we have pulled that number up by 6% after today’s strong result.

The post Morgans names 2 ASX shares to buy today appeared first on The Motley Fool Australia.

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More reading

• Corporate Travel share price slides despite earnings beat
• Here are the top 10 ASX 200 shares today
• Why Brambles, Challenger, Nearmap, and Super Retail shares are rising today
• 3 ASX 300 shares having a cracking session today
• Why are ASX 200 retail shares having such a stellar run today?

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 Super Retail Group Limited. The Motley Fool Australia has positions in and has recommended Super Retail Group Limited. The Motley Fool Australia has recommended Corporate Travel Management 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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Are you looking for exchange traded funds (ETFs) to buy? If you are, then the two listed below could be worth looking at closely.

Here’s why experts say these ETFs could be in the buy zone:

ETFS Battery Tech & Lithium ETF (ASX: ACDC)

If you’re interested in gaining exposure to the decarbonisation megatrend, then the ETFS Battery Tech & Lithium ETF could be worth considering.

As its name implies, this ETF gives investors exposure to a number of companies that are involved in battery technology and lithium mining. This includes the likes of BYD, Mineral Resources Limited (ASX: MIN), Nissan and, Pilbara Minerals Ltd (ASX: PLS).

Jessica Amir from Saxo Markets is a fan of the ETF. She believes it could be a good option for investors that aren’t keen on stock picking in the lithium industry. Earlier this year she said:

If [lithium] stock picking is not for you, and if you believe, like we do, that the electric vehicle industry and the critical minerals/ commodities will continue to see rising demand, and policy support, and also benefit from the world striving to be carbon neutral by 2050, then you could invest or trade in Global X Lithium & Battery Tech ETF (LIT) or ETFS Battery Tech & Lithium ETF (ACDC) that invests in about 30 of the biggest EV and battery technology companies in the world.

VanEck Vectors MSCI World ex Australia Quality ETF (ASX: QUAL)

If you’re interested in bolstering your portfolio with some high quality companies, then it would be hard to look beyond the VanEck Vectors MSCI World ex Australia Quality ETF.

This popular ETF gives investors easy access to a portfolio of high quality shares that are listed outside of Australia. To be included, the companies must have low leverage, high growth rates, and high returns on equity. Among the companies that tick these boxes you will find giants such as Apple, Microsoft, Nike, and Nvidia.

Sarah Gonzales from Apt Wealth is a positive on the ETF in the current environment due to its focus on quality. She recently told Livewire:

My preferred ETF is the VanEck MSCI International Quality ETF. I think it provides exposure to that quality factor, which tends to outperform in market downturns. It does focus on factors like return and equity, year-on-year growth of earnings and also levels of debt. These are proxies for profitability, earnings variability, and the level of debt of companies. Particularly if we are going into a recession,  I think these are really the factors that I think we should focus on.

The post Experts say these top ETFs are buys right now appeared first on The Motley Fool Australia.

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More reading

• Expert names one of the best ETFs for ASX investors to buy now
• Here are 2 high quality ETFs named as buys by analysts

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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