The Lynas Rare Earths Ltd (ASX: LYC) share price is edging higher today on no news.

At the time of writing, the Lynas share price is trading at $8.21 apiece, more than 1% in the green.

In broad market moves, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) has slipped more than 3% on Friday as the sector continues a weak spell.

What’s up with the Lynas share price?

Despite no market sensitive news today, Lynas caught a bid yesterday following the the final session of the Sydney Energy Forum.

The large-scale event brought together numerous energy industry stakeholders, politicians and company executives.

Lynas CEO, Amanda Lacaze, was amongst the several Australian company executives to speak at the forum on 12 June.

Lacaze told the Forum markets are increasingly recognising that “singular supply chain is a risk” and that Lynas is “seeing increased interest in outside-China governments”.

Meanwhile, Dr Faith Birol, International Energy Agency (IEA) executive director, noted China’s 80% global supply of rare earths and advocated for this to change.

With its position as the only producer of rare earths at scale outside of China, Lynas is poised to benefit from such a structural shift.

It’s unlikely the various language used at the Sydney Energy Forum had any material impact on the Lynas share price.

Nevertheless, industry heavyweights are pushing for a change. Lynas’ CEO Lacaze was supportive of the move after recognising the “further challenges [faced] in terms of resilient supply chains”.

The Lynas share price is up 35% in the past 12 months.

 

The post Odd one out: Lynas share price inches ahead while miners drill down appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX shares today
• Could this be why the Lynas share price is rallying 6% today?
• The Lynas share price soared 53% in the 2022 financial year. Here’s what happened
• Why did the Lynas Rare Earths share price tumble in June?
• Own Lynas shares? Here’s the latest challenge faced by the rare earths miner

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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to end the week with a decline. At the time of writing, the benchmark index is off its intraday lows but still down 0.65% to 6,606.4 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are sinking:

BHP Group Ltd (ASX: BHP)

The BHP share price is down 3.5% to $36.10. Investors have been selling BHP and other miners today after the iron ore price pulled back. According to CommSec, the iron ore futures price dropped US$5.30 or 4.8% overnight to US$104.96 a tonne. The steel making ingredient came under pressure after Chinese authorities grappled with a wave of mortgage boycotts sweeping the country’s property sector.

Jumbo Interactive Ltd (ASX: JIN)

The Jumbo share price has sunk 15% to $12.26. This follows the release of the lottery ticket seller’s preliminary full-year results. Jumbo’s revenue and earnings came in short of the market’s expectations. In addition, the company warned that margin pressures would persist in FY 2023 even before an increase in its service fee to Lottery Corporation Ltd (ASX: TLC) from 2.5% to 3.5%.

Pendal Group Ltd (ASX: PDL)

The Pendal share price is down 8% to $3.76. The catalyst for this has been the release of the fund manager’s latest funds under management (FUM) update. That update revealed that Pendal’s FUM tumbled 11% during the June quarter.

Rio Tinto Limited (ASX: RIO)

The Rio Tinto share price is down 2% to $93.96. This mining giant’s shares are falling after the iron ore price pullback offset the release of the company’s second quarter update. During the quarter, the mining giant delivered iron ore shipments of 79.9Mt. This was ahead of the market consensus estimate of 79.3Mt. Rio Tinto also reaffirmed its full year iron ore guidance for costs and shipments.

The post Why BHP, Jumbo, Pendal, and Rio Tinto shares are sinking today appeared first on The Motley Fool Australia.

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• Pendal share price slumps 10% to multi-year low amid continued outflows
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• ASX 200 midday update: Rio Tinto’s update, BHP and Fortescue sink, AVZ remains suspended
• Here’s why the BHP share price is stumbling on Friday
• Jumbo share price sinks 10% on FY22 earnings miss

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 Jumbo Interactive Limited. The Motley Fool Australia has recommended Jumbo Interactive 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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Australia’s economy continues powering home in 2022. The national unemployment rate sunk to a 48-year low last month, while a record number of job vacancies were reported. But is this good news for ASX 200 shares?

These statistics were released in the Australian Bureau of Statistics (ABS) Labour Force summary for June 2022.

The ASX absorbed the news yesterday but investors weren’t so fortunate today. At the time of writing, the benchmark S&P/ASX 200 Index (ASX: XJO) is 0.7% in the red at 6,604 points.

With net employment figures more than 194% above the June forecasts, what does this mean for ASX 200 shares?

Job numbers equal strong economy, market says

More than 438,000 additional Aussies have gained employment this year to date, bringing the participation rate to around 67%.

The jobless rate fell to 3.5%, around 30 basis points off the forecasts of 3.8%. There haven’t been this many Australians in work since 1974.

This creates a systematic dilemma for the Reserve Bank of Australia (RBA), charged with managing inflation and tilting economic growth (GDP) with monetary policy.

One of the functions of the RBA is to keep inflation between 2% and 3%, a mandate it is currently not fulfilling.

The RBA now has to balance the delicate task of tightening near record-high inflation and sustaining a reasonable level of GDP.

However, the latest data indicates a strong economy, which equals high inflation. The market continues to price this in accordingly.

What do the experts say?

Goldman Sachs economist Andrew Boak (quoted by Reuters) said: “With the unemployment rate at a 48-year low, surveyed business conditions well above long-run averages, and COVID-related mobility restrictions fully eased, the economy is bumping-up against capacity constraints in many areas.”

However, as Boak notes, the RBA will struggle to clip inflation without enforcing some form of demand destruction, resulting in a potential recession.

“The Australian economy remains on a path to much higher inflation and interest rates, having entered the tightening cycle with strong momentum,” he said.

Further rate hikes by the RBA are predicted, which could hurt growth and tech ASX 200 shares even further.

The good news is that if inflation cools rapidly, the RBA won’t have to tighten inflation so aggressively. However, inflation data remains strong, and surged to 9.1% in the United States in June.

Plus, high employment puts pressure on the labour market and increases wage growth, thereby increasing purchasing power and deposits.

What about ASX 200 shares?

It then becomes a question of what ASX 200 shares will do well in what situation. If we enter a recession, for instance, defensive shares are seen as the most sensible play.

In a recent update, PIMCO bond portfolio manager John Waltwies said it’s going to “be a year when investors pivot from worrying about inflation to worrying about recessions”.

“Investors … should be thinking about how they can build some more resilience into their portfolios,” he said. “So, thinking about going up in quality, up in liquidity.”

This sentiment was echoed by analysts at HB Insights in a recent note. They said that “[p]rofitability and cash flow metrics [are] quality factors investors are now paying a premium for”.

Meanwhile, Goldman Sachs equity strategist David Kostin said: “Roughly a third of investors’ portfolios should focus on companies with a ‘margin of safety’, meaning they would still be attractively valued even if their earnings fell by 20%.”

This “should be coupled with high-dividend stocks, which are arguably the most dislocated part of the market today,” he added.

Diversification is also something to consider. Usually, there’s a diversification benefit between stocks and bonds. However, as researchers at JP Morgan recently found, that relationship breaks down in times of high inflation.

As such, both stocks and bonds have suffered their worst pain on record this year, and the traditional “60/40” portfolio (60% allocated to stocks, 40% to bonds or bond ETFs) has incurred some of its worst losses ever, the broker said.

The relationship is shown on the chart below, using the US market instead of the ASX 200. When inflation began to tick up, shares and bonds began to fall.

Hence, if an economy is heading towards a recession, experts suggest focusing on companies that sit within the ‘quality’ pocket of the market.

If inflation remains between 3% and 5%, this could force the RBA to tighten even further, reinforcing the cycle.

Time will tell where we head next.

The post Australia’s unemployment rate is at a 48-year low. What’s this mean for ASX 200 shares? appeared first on The Motley Fool Australia.

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• Why is the Newcrest share price slipping to a new 52-week low on Friday?
• ASX 200 midday update: Rio Tinto’s update, BHP and Fortescue sink, AVZ remains suspended
• Setting the pace: Why ASX 200 bank shares are feeling the pinch on Friday
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today

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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Lake Resources N.L. (ASX: LKE) shares are flying off the shelves on Friday despite no news having been released by the company today.

Still, investors have traded nearly 22 million Lake Resources stocks so far this session. That makes it the most traded share on the S&P/ASX 200 Index (ASX: XJO).

Although, the increased interest hasn’t bolstered the Lake Resources share price. It’s currently trading at 59.5 cents, 1.65% lower than it closed yesterday.

For context, the ASX 200 is currently down 0.82%.

So, what might be going on with the lithium exploration company on the ASX today? Let’s take a look.

Lake Resources shares fly out the door on Friday

While there’s been no news from Lake Resources today, the company’s shares have been the talk of the town for most of this week.

Drama in the company’s camp kicked off on Tuesday when it was the target of an attack by short seller, J Capital.

The Lake Resources share price was halted as the company prepared to respond to accusations detailed in a report published by J Capital. That response was released yesterday.

The company claimed the report “puts forth incorrect information on technical matters and inaccurate assertions on Lake Resources’ progress to date”.

Notably, Lake Resources hit back at assertions that direct lithium extraction technology wouldn’t work as planned at the company’s Kachi Project, saying the short seller “criticis[ed] the wrong process”.

Unfortunately, it seemingly did little to quell some investors’ concerns. Lake Resources’ stock plunged 10% on Thursday.

On top of that, the company remains one of ASX’s most shorted shares. Around 9.6% of its stock was in the hands of short sellers at the last count. That leaves its short position 5.94% higher than it was a month prior.

The Lake Resources share price has also fallen more than 60% over the last 30 days. Though, it’s currently 80% higher than it was this time last year.

The post Why are Lake Resources shares receiving the most attention on Friday? appeared first on The Motley Fool Australia.

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• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Aurizon, Bega Cheese, Flight Centre, and Lake Resources shares are sinking
• ASX 200 midday update: Telstra completes acquisition, Lake Resources and Bega Cheese sink
• ‘Incorrect’ and ‘inaccurate’: Lake Resources delivers response to shares short-seller
• The best and worst ASX All Ords mining shares of FY22

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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Macquarie Group Ltd (ASX: MQG) shares are sliding today.

The global banking, financial services and fund management business closed yesterday trading at $171.00 per share and is currently trading for $167.74, down 1.9%.

Macquarie isn’t the only stock under pressure, with the S&P/ASX 200 Index (ASX: XJO) down 1.1% at this same time.

While Macquarie shares are underperforming today, they have a history of long-term outperformance. And Blackmore Capital portfolio manager Marcus Bogdan believes there’s more of that to come.

Benefiting from the global green energy push

Speaking to Livewire, Bogdan chose Macquarie as one of two blue-chip ASX shares he’d be happy to buy and hold for five years.

He said Macquarie shares are “a clear beneficiary of an environment that we believe will reward companies with rising exposure to net-zero targets by 2050”.

According to Bogdan:

The opportunity for Green Capex needs has never been stronger as investment is urgently required across the entire supply chain to meet Net Zero targets.

Macquarie firmly established its position in 2017 when it acquired the Green Investment Group from the UK government, to become a leading financier and developer of green infrastructure including renewable energy projects.

Bogdan pointed out that Macquarie shares are likely to benefit from rising demand for the company’s services amid the ongoing and volatile global green energy transition:

The transition to green energy is also driving heightened volatility in energy markets as governments grapple with the ongoing energy supply challenges impacting both fossil fuels and renewables.

There’s increased demand – and this is growing – for the risk management, financing and logistics services offered by Macquarie’s Commodities and Global Markets division. This is driven by the increased activity, volatility and supply chain disruption in energy and commodity markets currently.

How have Macquarie shares been tracking?

Though underperforming in the calendar year, Macquarie shares have gained 9% over the past 12 months, compared to a full-year loss of 10% posted by the ASX 200.

There’s also some income on offer.

At the current price, Macquarie shares pay a trailing dividend yield of 3.7%, fully franked.

The post Macquarie shares ‘a clear beneficiary’ of global green energy push: fundie appeared first on The Motley Fool Australia.

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• Surprise US inflation pumps the brakes on ASX 200 bank shares
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• $264 million! The 10 highest-paid CEOs on the ASX
• Down 19% in 2022. Is the Macquarie share price trading in the bargain bin?
• Here are the 5 best ASX 200 bank shares of FY22

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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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The share prices of S&P/ASX 200 Index (ASX: XJO) travel giants such as Webjet Limited (ASX: WEB) and Flight Centre Travel Group Ltd (ASX: FLT) are struggling to gain ground on Friday.

It comes amid a broader sell-off event that’s seen the ASX 200 plunge 0.85%. Here’s how these ASX favourites shares are travelling today:

• The Webjet share price is currently 1.05% lower at $5.17
• The Flight Centre share price has slipped 1.19% to trade at $16.60

Meanwhile, the share prices of fellow ASX 200 travel stocks Qantas Airways Limited (ASX: QAN) and Corporate Travel Management Ltd (ASX: CTD) are down 0.6% and 0.8% respectively.

There are several happenings that might be dragging on the ASX 200 travel sector today. Let’s take a look.

What’s weighing on ASX travel shares today?

First off, ASX 200 travel shares might be being impacted by the spread of diseases and illnesses.

COVID-19 and influenza are continuing to spread through Australia while concerns of foot-and-mouth disease grow.

Qantas has today confirmed rising COVID-19 cases among staff have caused large numbers of flights to be delayed or cancelled during the school holidays. Of course, such news might be weighing on ASX travel shares today.

Meanwhile, LNP senator Susan McDonald has called for a suspension of flights from Bali amid concerns Australians returning from the popular tourist destination could cause an outbreak of foot-and-mouth disease.

McDonald said an outbreak of the livestock disease could have ramifications of “biblical proportions”, continuing:

We saw a swift closing of borders with COVID, and I believe similar measures should be discussed for foot-and-mouth, and if not flight suspensions, then quarantine for returning passengers.

Some people will say this is an overreaction … but the devastation of a foot-and-mouth outbreak in Australia would be widespread.

The impact on our near $80 billion protein and dairy herds would be indescribable.

Though, closing the border appears to be off the cards for now. Agricultural minister Murray Watts has ruled out such a response, 7News reports.

Whether talk of border closures could impact Australians’ decisions to travel is yet to be seen. But that might not be all holding Aussies back from jetting off on holidays.

Some economists expect the Reserve Bank of Australia will hike rates by 75 basis points next month after the unemployment rate fell to 3.5% in June, according to reporting by The Age.

Such a move would likely see Australians’ pockets feeling notably lighter. Of course, that could lessen demand for travel and possibly reduce sentiment for ASX travel shares.

The post Clipped wings: Why ASX 200 travel shares are having trouble getting off the ground today appeared first on The Motley Fool Australia.

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• Qantas share price slips amid COVID’s continuing toll  
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• Here are the top 10 ASX shares today
• Here’s why the Qantas share price is taking off today

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

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The Falcon Metals Ltd (ASX: FAL) share price has returned from its suspension with a bang.

In afternoon trade, the gold explorer’s shares are up a massive 38% to 25.5 cents.

Why is the Falcon Metals share price rocketing higher?

Investors have been scrambling to buy Falcon Metals shares on Friday following the release of drilling results from the Pyramid Hill Gold Project in Bendigo.

According to the release, the company has received final assay results for all the remaining diamond and aircore holes at the Karri and Ironbark prospects in the Pyramid Hill Gold Project.

Management advised that results from this drilling are highly encouraging and confirmed primary gold mineralisation within the diorites at both Ironbark North and East. The results at Karri have also further extended the zone of primary mineralisation intersected by diamond drilling.

What’s next?

The release explains that the next step for the Pyramid Hill Gold Project is a detailed assessment of these results and finalisation of the forward work plan.

Falcon Metals’ drilling is expected to recommence in October, with the company at the advanced stages of securing a quality drilling contractor for an extensive regional program. This will screen its substantial prospective land holding for large scale and high-grade gold systems.

Falcon Metals’ managing director, Tim Markwell, was very pleased with the news. He commented:

The high-grade aircore results returned at Ironbark East, the confirmation of primary mineralisation at Ironbark North, plus the further extension of the Karri system are all highly positive results for Falcon.

These results are indicative of the quality of our ground position and targets, and the potential of the Bendigo Zone to host high-grade gold mineralisation. Being in the fortunate position of having a strong cash balance, we look forward to completing an assessment of these encouraging results and planning for a major work program in the coming months.

The post Why is the Falcon Metals share price rocketing 38% higher? 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 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 Ardent Leisure Group Ltd (ASX: ALG) share price is up by almost 2% in early afternoon trading to 53.5 cents.

Shares in the theme park operator have fallen by more than 60% in value this month following a capital return to shareholders.

Ardent Leisure owns and operates a bunch of entertainment and leisure businesses including the theme parks Dreamworld and WhiteWater World, as well as SkyPoint, on the Gold Coast in Queensland.

One expert believes the Ardent Leisure share price is now way below what it should be.

Improving public perception of Ardent Leisure

WAM Capital Limited (ASX: WAM) is a listed investment company run by Wilson Asset Management. Its mandate: To invest in the “most compelling undervalued growth opportunities in the Australian market”.

The company released its June 2022 investor update yesterday. In it, the fund manager explained that Ardent Leisure was a positive contributor to the fund’s performance in June.

In the update, Wilson said:

With Ardent Leisure Group’s theme parks being materially impacted throughout the coronavirus pandemic, we believe the business is in a strong position to capitalise on a recovering domestic and international tourism sector.

The company’s operating cost base has been structurally lowered, with reinvestment in the rides and attractions, and improving public perception, which we expect to underpin a strong recovery in its profitability in FY2023.

A tragic accident at Dreamworld in 2016 severely damaged the public perception of Ardent Leisure.

Four people were killed and others injured when a floating platform overturned on the Thunder River Rapids Ride. A two-year inquest was concluded in 2020. The ride is now closed.

Share price ‘materially undervalues’ Ardent Leisure

Wilson said the Ardent Leisure share price is low compared to its global peers.

Wilson said:

We believe Ardent Leisure Group’s current share price materially undervalues the company relative to global peers, while opportunity exists to unlock further value via development of excess land assets.

Ardent Leisure share price snapshot

Ardent Leisure shares plummeted after the inquest’s findings were handed down in February 2020.

They reached a trough in March 2020 and have gradually recovered since to be up 605% at the start of this month.

The Ardent Leisure share price then hit the skids again but for very different reasons. It’s down more than 60% from $1.41 at the market close on 1 July to 53.5 cents today.

The follows a shareholder vote in favour of selling the main event business in the United States to Dave & Buster’s Entertainment, Inc. This meant a return of capital for shareholders totalling $455.7 million.

This was paid on Wednesday in the form of an unfranked special dividend of 95 cents per share.

The post Ardent Leisure share price ‘materially undervalued’: expert appeared first on The Motley Fool Australia.

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• Why is the Ardent Leisure share price crashing 67% today?
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• These 2 ASX shares are ‘compelling opportunities’: fund manager

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

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The Nickel Industries Ltd (ASX: NIC) share price is currently one of the worst performers within the S&P/ASX 200 Index (ASX: XJO).

At the time of writing, it’s down 5.26% to 90 cents.

So what’s going on?

Well, China is one of the world’s key buyers of commodities, so what happens in the country can have widespread ramifications for resource prices, the Nickel Industries share price, and so on.

According to reporting by Reuters, GDP growth in China has slowed considerably. In the three months to June 2022, GDP growth was reportedly down to just 0.4% year on year, which was lower than the 1% growth expected.

Looking at the quarter-on-quarter number, GDP dropped 2.6%, which was worse than the 1.5% decline predicted.

China’s lockdowns to stop the spread of COVID-19 are being blamed for the fall.

Chinese property market

ASX 200 mining shares are also having a rough time of it today. This comes as Bloomberg reports that Chinese home buyers aren’t making payments on dozens of projects across many cities.

As noted by Commsec, the nickel price has sunk by more than 8%. Many other commodities are also seeing red, including the iron ore price, which has dropped heavily.

As a commodity business, Nickel Industries’ earnings can significantly shift if the nickel price goes higher or lower over time.

Nickel Industries share price snapshot

Since the start of 2022, the Nickel Industries share price has fallen by around 38%.

It is also down by almost 18% over the past 12 months and 14% over the past month.

The post Why is the Nickel Industries share price 5% worse for wear today? appeared first on The Motley Fool Australia.

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

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CSL Limited (ASX: CSL) shares are shrugging off the wider market malaise today and marching 0.3% higher.

The global biotech company closed at $296.20 per share yesterday and is currently trading for $297.05 per share.

In contrast, the S&P/ASX 200 Index (ASX: XJO) is down 1.4% in early afternoon trading.

CSL has handily outperformed the benchmark both in this calendar year and over the longer-term.

And according to Blackmore Capital portfolio manager Marcus Bogdan, CSL shares are well-positioned for more outperformance ahead.

Double-digit earnings growth flagged

Speaking to Livewire, Bogdan picked CSL as one of two ASX 200 listed shares he’d be happy to buy and hold for five years.

He said the biotech company “is well-positioned to deliver double-digit earnings growth with strong underlying demand returning for plasma products”.

According to Bogdan:

Plasma collection has been the single biggest factor driving the company’s share price performance during the COVID pandemic, where donor supply was significantly disrupted.

A sequential recovery in plasma supply is now well underway, benefiting from increased social mobility and the rollout of new donor centres. Indeed, we expect that the second half of 2022 will prove to be the trough in earnings for CSL, as annual collections are on track to exceed pre-COVID levels in FY23.

Bogdan also pointed to CSL’s influenza vaccine division, Seqirus, as offering ongoing tailwinds for the company:

Seqirus has been a critical source of diversification and growth for CSL during the ongoing plasma challenges experienced throughout the pandemic. Seqirus has been a beneficiary of heightened awareness of respiratory diseases and continued innovation in cell-based influenza vaccines has driven an improvement in margins.

Overall, we expect the structural demand drivers for plasma therapies and influenza vaccines to underpin growth for CSL for the foreseeable future.

How have CSL shares been performing?

While not shooting the lights out in 2022, CSL shares are a rare breed in that they’re in the green, up 1% since the opening bell on 4 January. That contrasts with the 13% year-to-date loss posted by the ASX 200.

Longer-term, CSL shares are up 135% over the past five years.

The post CSL shares ‘well-positioned to deliver double-digit earnings growth’: expert appeared first on The Motley Fool Australia.

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More reading

• Could FY23 be a good year for the CSL share price?
• 3 ASX shares to buy in a sector suddenly soaring this month: expert
• Why is the CSL share price up 11% in a month?
• Top brokers name 3 ASX shares to buy today
• $264 million! The 10 highest-paid CEOs on the ASX

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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