A three to five-year “structural bull market” for ASX mining shares and commodities is yet to play out.

That’s according to energy, mining, and commodities expert Ben Cleary, who manages listed investment company (LIC) Tribeca Global Natural Resources Ltd (ASX: TGF).

Cleary says of all the commodities and battery metals are likely to lead the way in coming years.

What’s the opportunity for ASX investors today?

In an interview with Livewire, Cleary said: “Whether it’s base metals or battery metals, the big supply-demand deficits kick in in 2025-2026”.

Cleary says commodity prices have already dipped to the same lows seen during the global financial crisis and in 2015. That’s despite globally low inventories. And there’s been a flow-on effect to ASX mining shares.

Cleary said:

Think Aluminium, which hit a 30-year low on the LME yesterday. Copper, nickel, iron ore, oil, all these commodities are in very short supply generally.

So the markets are bearish to the point where stocks are trading at these very deeply depressed trough valuation levels, but inventory is low and demand is still strong,” he said.

We’ve stress test demand, and even with a recession in Europe and a slowdown in the US, we’re still getting deficits.

Cleary pointed out that the resources sector is generating record cash flows. This is despite COVID-19 and labour availability challenges, as well as higher oil prices and a tighter supply of mining inputs.

He also said the valuations of various ASX mining shares were “looking more and more attractive”.

Cleary said:

Despite all those headwinds, the sector’s never made more cash flow. And on top of that, I think the delta of those challenges is improving.

While the outlook is somewhat uncertain with Europe and its energy woes and potential recessions, I think generally it’s been a big pullback across all asset classes and there is some very heavy valuation support in the resources industry that is looking more and more attractive.

What’s next for ASX mining shares?

Cleary attended the annual Diggers and Dealers Mining Forum in Kalgoorlie, Western Australia this week.

He said the leaders of various companies he is invested in told him labour shortages were decreasing.

Cleary also believes oil prices won’t remain around US$100 per barrel. He thinks they are likely to decline toward the end of 2022.

However, he said iron ore could face more pressure in the coming months:

The softer property market in China has impacted all things related to building materials, particularly on steel subsidiaries. But iron ore prices have held up pretty well.

That is because, like a lot of these commodities, there’s been a number of supply issues. But if the Chinese property market remains soft, iron ore is going to face some headwinds. But that could very quickly turn into a tailwind depending on the outcome of Chinese monetary policy into the year-end.

Which ASX mining shares might be buys?

When asked to pick the five best presentations at Diggers and Dealers, Cleary nominated Develop Global Ltd (ASX: DVP), Genesis Minerals Ltd (ASX: GMD), Capricorn Metals Ltd (ASX: CMM), Syrah Resources Ltd (ASX: SYR), and Bellevue Gold Ltd (ASX: BGL).

Cleary said all five companies are well funded with impressive production growth, yet not beholden to commodity prices.

He said:

They going to make good margins regardless of whether commodity prices remain high. 

Another common thread through those five stories was that they are all at the bottom of their respective cost curves. And they all have been very focused on keeping their best people as labour is tight. 

The post 5 ASX mining shares with ‘good margins regardless of commodity prices’: fundie appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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 Commonwealth Bank of Australia (ASX: CBA) share price is lifting today amid news it will raise home loan and savings rates.

The major bank’s share price is currently trading at $101.52, a 1.05% jump. For perspective, the the S&P/ASX 200 Index (ASX: XJO) is up 0.18% so far today.

Meanwhile, other AXS bank shares are also trading in the green at the time of writing. National Australia Bank (ASX: NAB) shares are 0.41% higher, Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares are climbing 0.24%, while the Westpac Banking Corporation (ASX: WBC) share price is up 0.74%.

Let’s take a look at what is going on at Australia’s largest bank.

CBA lifts interest rates

CBA has become the first major bank to lift interest rates in response to the Reserve Bank of Australia’s announcement earlier this week.

The RBA lifted Australia’s official interest rate by 0.5% to 1.85% on Tuesday.

In a statement today, CBA advised home loan variable interest rates will lift by 0.5% per annum. NetBank saver variable interest rates will also rise by 0.5%.

Commenting on the news, retail banking group executive Angus Sullivan said:

We have been helping customers understand the changing rate environment and consider what it means for them, and we will continue to be there for them.

However, CBA will also offer a four-year owner-occupier principal and interest fixed home loan rate of 4.99%. This is 1.6% less than the bank’s current fixed package rate, Sullivan highlighted.

Meanwhile, Morgan Stanley analyst Richard Wiles is predicting higher rates and a bigger yield curve will boost CBA’s net interest income by $250 million in the second half of 2022. And he predicts this trend to continue in 2023. In comments cited by the Australian Financial Review, he said:

More importantly, we expect a larger benefit in the first half of 2023, as the full period impact of rate hikes and deposit pricing power easily offsets mortgage competition.

Share price snapshot

The CBA share price has fallen 0.83% in the past year, while it has lifted 0.38% year to date.

For perspective, the ASX 200 benchmark has lost nearly 7% in the past year.

CBA has a market capitalisation of more than $172 billion based on the current share price.

The post First mover: CBA share price rises amid interest rate changes appeared first on The Motley Fool Australia.

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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 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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The S&P/ASX 200 Index (ASX: XJO) is back on track today after posting its first loss in more than a week on Wednesday. And some of its favourite constituents are taking advantage of its upwards momentum, posting their highest share prices in at least a year.

Right now, the ASX 200 is trading 0.3% higher.

Let’s take a closer look at the 3 ASX giants surging to their highest point in 52 weeks today.

3 ASX 200 shares soaring to long-forgotten highs

Transurban Group (ASX: TCL)

Shares in ASX 200 toll road operator Transurban leapt to a new 20-month high today, trading at $14.93.

Interestingly, no news has been released by the infrastructure giant over the last six weeks. Though, fundies have tipped to stock as a major inflation beater.

The fees that make up the company’s revenue are linked to Australia’s inflation measure, meaning its profits rise alongside inflation.

Vicinity Centres (ASX: VCX)

ASX 200 real estate investment trust (REIT) Vicinity Centres has also seen its share price reach a 52-week high today. It lifted around 2% to reach $2.12 earlier this morning before slipping to trade slightly in the red.

That marks a new post-COVID high for the stock. The stock has outperformed the S&P/ASX 200 Real Estate Index (ASX: XJO) by a whopping 37% over the last 12 months.

Steadfast Group Ltd (ASX: SDF)

The final ASX 200 share trading at a new 52-week high on Thursday is Steadfast Group. In fact, the stock reached its highest point ever today – leaping to $5.50 in intraday trade.

Steadfast operates a general insurance broker network in Australia and New Zealand.

The market hasn’t heard a word from the company since February.

Still, its share price has surged nearly 300% over the past five years to culminate in today’s new record high.

The post 3 ASX 200 shares smashing new 52-week highs on Thursday 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 Steadfast Group Ltd. The Motley Fool Australia has recommended Steadfast Group 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 CSL Limited (ASX: CSL) share price enjoyed a healthy boost in July, finishing the month up 7.7%.

And though the S&P/ASX 200 Index (ASX: XJO) listed global biotech company is dipping into the red today, it’s up another 1.3% so far in August.

With those gains in the bag, investors are now pondering if there’s more upside to come for the CSL share price this earnings season.

For some greater insight into that question, we defer to the experts.

An all-weather company

Andrew Tang is co-head of investment strategy at Morgans Financial.

In Livewire, Tang said CSL is one of “several all-weather companies we think are capable of resisting cost inflation”.

Morgans analyst Derek Jellinek sees further potential upside for the CSL share price.

Jellinek “maintains a solid outlook for the biotech firm, with plasma collections expected to continue improving via numerous initiatives. He tips [earnings per share] EPS growth of 17% for FY2023 and a total shareholder return of 15% over the next 12 months”.

17% upside for the CSL share price

Citi analysts are also bullish on the outlook for the CSL share price.

As The Motley Fool reported yesterday, the broker retained its buy rating and increased its price target for the biotech company to $345 per share.

That’s 16.7% above the current CSL share price of $295.57.

Like Morgans, Citi also pointed to an improved outlook for plasma collections, which were hindered during the pandemic years. Citi noted the strong collection results from CSL competitors Grifols and Takeda in its note:

Results from Grifols (June HY) and Takeda (June Q) show continued improvement overall in the operating environment for the plasma industry – this is as we anticipated and supportive of our CSL forecasts.

The key points from the results were: 1) Demand is very strong, and prices are up mid-single digit, showcasing the pricing power of plasma companies; 2) Plasma collections are now well above pre-covid levels; 3) Plasma donor fees are coming down, helping margins.

Citi added, “The settlement of the Vifor deal, and a positive outlook on plasma collection at the FY22 result will continue to see the share price outperform over the next 12 months.”

CSL reports its full financial year results on Wednesday 17 August.

The post Up 8% in July, is there more upside in the CSL share price this earnings season? appeared first on The Motley Fool Australia.

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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has 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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ASX uranium shares are “down materially and have completely decoupled with the other energy groups for no really good reason at all”, according to energy, mining, and commodities expert Ben Cleary.

Cleary is the portfolio manager of listed investment company (LIC) Tribeca Global Natural Resources Ltd (ASX: TGF).

In an interview with Livewire, Cleary said he was “very bullish” on uranium shares. 

What’s happening with ASX uranium shares?

Cleary said uranium shares have lost value recently but are well-positioned for a big future. This is especially because several governments have recently approved the commodity for energy generation.

Cleary said:

Uranium correlates very well with other energy commodities, whether it’s gas or coal or oil — as it should do because it’s obviously competing as an alternative energy source. 

However, year to date, uranium equities are down materially and have completely decoupled with the other energy groups for no really good reason at all.

In fact, they’ve been correlating more with cryptocurrencies and digital assets, for whatever reason.

Cleary expects to see this trend rapidly reverse course in the next few months. As a result, he reckons most ASX shares in the uranium space have a 30% to 50% upside from here.

He added:

The European Union has just approved uranium as an approved energy source. The American government are very supportive of nuclear generation. So is China. 

So uranium has a really strong governmental backing as a baseload energy source given it produces lower carbon emissions versus other fossil fuels going forward.

Uranium shares have declined in 2022 due to rising concerns about recession, as well as China’s strict COVID-19 policy.

Which ASX uranium share is a buy?

Cleary’s pick of the bunch is Boss Energy Ltd (ASX: BOE).

Boss Energy is one of the larger ASX shares in the uranium sector with a market capitalisation of $853.24 million. It holds interests in the Honeymoon uranium project in South Australia. It also holds interests in nickel-copper exploration projects in Scandinavia as well as gold interests in Burkina Faso.

The Boss Energy share price is up 1,300% over the past 12 months (yep, you read that right). But in the year to date (ytd), it has declined by 2%.

Here is a summary of the performance of the other big players in the uranium space:

• The Paladin Energy Ltd (ASX: PDN) share price is up 44% over 12 months and down 21% ytd
• The Energy Resources of Australia Limited (ASX: ERA) share price is down 4% over 12 months and down 29% ytd
• The Silex Systems Ltd (ASX: SLX) share price is up 243% over 12 months and up 143% ytd
• The Bannerman Energy Ltd (ASX: BMN) share price is up 33% over 12 months and down 27% ytd
• The Deep Yellow Limited (ASX: DYL) share price is up 10% over 12 months and down 18% ytd

The post The ASX shares with 30% to 50% upside: fundie appeared first on The Motley Fool Australia.

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Motley Fool contributor Bronwyn Allen 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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For years many investors have pointed to lithium as the number one beneficiary of the energy transition. Indeed, some of the ASX’s biggest lithium players – like Pilbara Minerals Ltd (ASX: PLS) and Sayona Mining Ltd (ASX: SYA) ­– have seen their share prices double time and time again over the last five years.

But one less obvious commodity has more to gain from the world’s electrification movement than lithium, according to Tribeca Global Natural Resources Ltd (ASX: TGF) portfolio manager Ben Cleary.

And that commodity is copper.

Let’s take a look at why the fundie is bullish on the recently embattled metal and which ASX copper share he thinks has the brightest future.

Copper has most to gain from electrification: fundie

The price of copper hit a 17-month low early last month amid concerns of global recessions and a potential slowdown in China – the world’s largest metals consumer.

The falling price of copper – as well as dips in other commodity prices – has been weighing on many ASX materials shares lately.

But there’s a silver lining. The fall has presented a longer-term buying opportunity, Cleary’s fund noted in its latest monthly update.

On top of that, the fundie apparently thinks copper has more to gain than lithium in the energy transition, telling Livewire.

Copper really is the biggest beneficiary of electric electrification and the world consuming more electricity going forward.

There is just not enough supply coming online to meet that demand growth.

The fund has noted it expects the supply of natural resources to tighten from 2024 onwards.

Meanwhile, Cleary told Livewire “big supply-demand deficits” in base and battery metals will kick off in 2025 to 2026. He said:

Copper, nickel, iron ore, oil, all these commodities are in very short supply generally. So, the markets are bearish to the point where stocks are trading at these very deeply depressed trough valuation levels, but inventory is low and demand is still strong.

We’ve stress test demand, and even with a recession in Europe and a slowdown in the US, we’re still getting deficits.

Which ASX copper share is the fundie tipping?

Cleary’s apparent favourite copper share comes in as one of Tribeca Global Natural Resources’ largest holdings.

It is none other than $395 million copper developer Develop Global Ltd (ASX: DVP).

In mid-July, the fund tipped Develop Global shares to have a valuation of $3.20. That’s 30% higher than where it’s currently trading – $2.45.

The post Move over ASX lithium shares, this commodity will be ‘the biggest beneficiary of electrification’: fundie 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 Block Inc (ASX: SQ2) share price is soaring today, following in the footsteps of its US listing.

The ASX buy now pay later (BNPL) company’s share price is up 10.18%, trading at $127.57 at the time of writing. For perspective, the S&P/ASX 200 Index (ASX: XJO) is currently 0.28% higher.

Let’s take a look at why the Block share price is rising today?

Why is the Block share price rising?

Block is not the only BNPL company in the green today. The Zip Co Ltd (ASX: ZIP) share price is up 6.79%, while Sezzle Inc (ASX: SZL) shares are 7.34% higher.

Block’s ASX listing appears to be following a similar path to the company’s US listing on Wednesday. Block Inc (NYSE: SQ) shares leapt 11.35% on the New York Stock Exchange overnight.

Financial and technology shares lifted after PayPal’s results improved optimism, Reuters reported. The NASDAQ Composite Index jumped 2.59%, while the S&P 500 Index gained 1.56%.

Wedbush Securities managing director Sahak Manuelian said in comments cited by the publication:

We’re going through Q2 earnings and, by and large, from the tech complex to consumer discretionary and industrials, we’re seeing a lot of better-than-feared prints, and that’s just good enough right now.

PayPal Holding Inc (NASDAQ: PYPL) reported net revenue lifted 9% year on year to $6.8 billion. The company also confirmed Elliott Investment Management has a $2 billion stake in the company. PayPal shares lifted 9% on the back of the results.

In Australia, the S&P/ASX All Technology Index (ASX: XTX) is 2.85% higher so far today.

Block is due to report its financial results on 4 August, US time.

Block share price snapshot

The Block share price has fallen 28% year to date, however, it has soared 44% in just the past month.

For perspective, the benchmark ASX 200 Index has shed 6% in 2022 so far.

Block has a market capitalisation of about $4.8 billion based on the current share price.

The post Why is the Block share price charging 10% higher on Thursday? appeared first on The Motley Fool Australia.

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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 positions in and has recommended Block, Inc., PayPal Holdings, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended PayPal Holdings. 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.

Boy, the good volatility sure is nice. The Nasdaq Composite Index (NASDAQ: .IXIC)  is up 329 points, or 2.7%, as of 2:34 p.m. ET on Aug. 3, 2022. Some of the biggest Nasdaq gainers include Moderna (NASDAQ: MRNA) and PayPal (NASDAQ: PYPL), both up after reporting earnings, and MercadoLibre (NASDAQ: MELI), ahead of earnings.

Shares of Okta (NASDAQ: OKTA) are on the rise, as well, after a competitor was acquired at a nice premium. Shares of social media giant Meta Platforms (NASDAQ: META) are up 5%, finally starting to reverse some of the losses of the past year following its relatively solid earnings results a few days ago. 

Upbeat earnings, high hopes leading to today’s bounce

Both biotech-giant Moderna and payments-king PayPal reported second-quarter results before trading today. Moderna investors loved the 7% revenue growth and were happy with the $5.24 earnings per share that smoked expectations. In short, shareholders (and buyers) continue to have high expectations for the company.

However, it’s not all roses (and COVID-19 booster shots). The company took a $499 million write-down for expired vaccine inventory — more than double the amount in the first quarter — and COVID-19 booster-shot volume and revenue has slowed. Moderna’s biggest unanswered question: What is its next act if COVID-19 vaccines aren’t the same cash cow in the coming years?

PayPal similarly reported better-than expected second-quarter results, with 13% payment volume pushing revenue up 10%, adjusting for currency exchange. While the company reported much slower growth than it has experienced over the past few years, double-digit growth in an environment where people are returning to more in-person shopping is a very real positive. CEO Dan Schulman pointed out that the company’s investment in digital wallets and online-checkout solutions is paying off with increased market share. 

Shares of Latin American e-commerce and payments-giant MercadoLibre are also rocketing higher today, ahead of the company’s earnings report, which is scheduled after market close on Wednesday. Like other e-commerce and web-based companies over the past year, its stock has been pummeled. PayPal and Amazon both turned in results investors liked this week, and it seems like investors have high hopes for MercadoLibre, too. 

Okta gets a buyout premium

Cybersecurity is one of the hottest segments out there right now. Billions of dollars will flow into the sector from corporate budgets in the years to come as companies take steps to protect their data and infrastructure from bad actors.

Private-equity firm Thoma Bravo certainly sees the potential. Today’s deal for it to buy Ping Identity (NYSE: PING) for a 63% premium to its prior share price is strong evidence of that. 

Investors also seem to believe that Okta, a leader in identity verification and access management, might very well be worth a good bit more than Mr. Market has been valuing it lately. 

Has Meta finally bottomed?

Meta Platforms investors may have finally seen peak pessimism pass. The shares are still down more than half from the company’s all-time high. This occurred after it reported that second-quarter revenue fell, which was the first revenue decline in the company’s history as a public company.

Since then, however, it seems that investors have processed the results and realized that active users grew on all its social media platforms and ad volume was up by double digits. In other words, the company’s biggest challenge right now seems to be weak ad demand overall, and that’s pulling down prices. This is a cyclical, temporary concern and maybe not as big a problem as it has seemed.

Despite its challenges, Meta remains head and shoulders above every other social media company as an ad platform. At 14 times trailing earnings and 17 times expected forward earnings, Meta’s shares are getting very attractive, and today’s upwards movement supports that. 

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

The post 5 tech stocks sending the Nasdaq higher on Wednesday appeared first on The Motley Fool Australia.

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• Why are ASX 200 tech shares having such a stellar run today?
• How to buy ASX shares exposed to the metaverse
• Making money even while stock markets fall
• Why are ASX 200 tech shares having such a lousy start to the week?
• 2 mistakes to avoid in a bear market

Jason Hall has positions in MercadoLibre. 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 MercadoLibre, Meta Platforms, Inc., and PayPal Holdings. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Moderna Inc. The Motley Fool Australia has recommended Meta Platforms, Inc. and PayPal Holdings. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Zip Co Ltd (ASX: ZIP) share price is performing strongly again today. It is up by a further 7%. That means it is currently up by almost 200% over the last month.

It’s not the only ASX 200 buy now, pay later (BNPL) share that’s doing well today. The Sezzle Inc (ASX: SZL) share price is up 6.9% and the Splitit Ltd (ASX: SPT) share price is up around 4%.

FY23 has seen an extraordinary rise in the Zip share price. It started at $0.44 and now it’s at $1.44. That’s a rise of more than 220%!

A substantial part of the recent rise could be due to market expectations that there could be a reduction of interest rates either near the end of 2023 or in early 2024. If interest rates don’t go (or stay) as high as expected, then perhaps that won’t hurt the profitability of Zip or the valuation of the Zip share price as much as previously expected.

Recent developments

Investors have also been digesting the news that Zip is no longer going to merge with Sezzle, which should bring forward cash flow profitability.

Zip has also told investors how it performed in the three-month period ending 30 June 2022.

Quarterly revenue rose 27% year over year to $160.1 million. Customer numbers rose 64% year over year to 12 million, while merchants on the platform increased by 77% year over year to 90,700. The cash transaction margin was 2.4%, while the revenue margin was 7.5%. Zip is focusing on its core markets of ANZ and the US, which aim to reduce cash burn.

The post Zooming higher: The Zip share price is up 7% appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Why is the Sezzle share price surging 8% on Wednesday?
• Up 10%, what’s going on with the Zip share price today?
• 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 positions in and has recommended ZIPCOLTD FPO. 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 Kogan.com Ltd (ASX: KGN) share price has jumped out of the gates to open the session on Thursday.

At the time of writing, Kogan shares are 2.84% higher at $4.35 apiece after hitting $4.54 earlier this morning. That’s a rise of more than 7% despite no news out of the company today.

In broader market moves, the S&P/ASX 200 Consumer Discretionary Index (ASX: XDJ) is also up 1.67% while the S&P/ASX 200 Index is 0.26% higher so far today.

What’s up with the Kogan share price?

Kogan shares received a boost last month when the company posted a business update for the 12 months to June 30, 2022.

In the update, Kogan reported it expects gross revenue of $1.18 billion and gross profit of $184 million, up 9.4% on 2021.

It also expects an increase in EBITDA for the period of $19.1 million, up from a loss the prior quarter.

Perhaps one key standout was a reported reduction in Kogan’s inventory value, down to $161 million from $193 million in March.

The results, while not fantastic in absolute terms, “wasn’t as bad as the market was expecting,” TMF reported.

‘Bad news is good news’

It seems this is a classic case of the ‘bad news is good news’ phenomenon that’s been reported across various financial news outlets recently.

Last week, Bloomberg reported “[t]he stock market is wrestling with a ‘bad news is actually good news’ scenario”.

Basically, when we’re in a bear market and the mood is chronically pessimistic, news that ‘isn’t as bad as expected’ can be deemed good news.

It’s quite the paradox, however, as the market may have already priced in the prospect of recession, rising interest rates, and inflation, Bloomberg says.

That aside, consumer cyclical shares such as Kogan have caught a bid lately and are up 9% for the month, reversing a period of heavy downside, as shown below.

Share price snapshot

The Kogan share price has outperformed the sector gaining 52% in the past month. However, even with those gains, it’s shed 60% over the last 12 months.

The company has a current market capitalisation of $458 million.

The post Why is the Kogan share price kicking goals on Thursday? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 tech shares having such a stellar run today?
• What’s the outlook for the gold price in FY23?
• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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 positions in and has recommended Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Kogan.com 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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