The Coles Group Ltd (ASX: COL) share price suffered a 6% fall during August.

However, between 22 August and the end of the month, it actually dropped by almost 10%.

It seems the supermarket business revealed its FY22 result and then some investor support disappeared.

Results are often the best time for investors to get a real insight into the performance of a business, its plans for the future, and what management thinks about its outlook.

It’s certainly an interesting time for supermarket companies like Coles amid the current inflationary environment. Suppliers want to pass on price increases so they can pay for their own elevated costs. But how much will Coles allow the price on the shelf to go up? And how will customers react to the higher prices?

Investors got some information from the company’s FY22 report.

FY22 earnings recap

Coles said that its total sales increased by 2% to $39.4 billion. Within that, the supermarket division saw 2.2% sales growth to $34.6 billion, liquor sales went up 2.5% to $3.6 billion, and Coles Express fell 5% to $1.13 billion.

The company reported earnings before interest and tax (EBIT) fell 0.2% to $1.87 billion and net profit after tax (NPAT) rose 4.3% to $1.05 billion.

Coles saw supermarket sales and Express revenue ramp up in the fourth quarter, with comparable sales growth of 3.7% and 1.1%, respectively.

In the second half of FY22, Coles supermarkets saw inflation of 3.8% which Coles put down to supplier cost price increases.

However, Coles also experienced higher costs. The cost of doing business (CODB) as a percentage of sales increased by 50 basis points to 21.4% due to COVID costs (approximately $160 million in FY22 compared to $90 million in FY21), higher fuel costs, and underlying cost inflation.

Outlook for the Coles share price

As I alluded to before, the outlook can have a sizeable impact on the Coles share.

Coles said that in FY23, its supermarket sales would be cycling against COVID lockdowns in the first half of FY22 (in NSW, the ACT, and Victoria), and price inflation in the second half of FY22.

It has seen “further cost price inflation” in fresh produce because of recent flooding, in bakery due to wheat commodity prices, and in packaged groceries due to various supply chain cost increases, including wages, packaging, raw ingredients, and freight.

In its liquor division, sales growth is also expected to be “impacted” by the cycling of COVID-19 lockdowns in the first half of FY22.

Coles Express weekly fuel volumes and sales are expected to benefit from increased mobility.

The ASX share noted that with increasing inflation and rising interest rates placing pressure on many households, it will continue to focus on delivering “trusted value”. But, it is seeing inflationary pressures on its own cost base in the form of higher wages, rent, fuel, as well as supply chain and capital costs.

Coles said its ‘smarter selling’ program is on track to deliver cumulative benefits under its four-year program of $1 billion in FY23, which is helping partly mitigate some of the underlying cost pressures.

Is the Coles share price a buy?

The broker Morgans rates Coles as a buy, with a price target of $20. That implies a possible rise of more than 10%. Morgans likes the defensive nature of the business but noted that its profit margin fell.

Citi also rates it as a buy, with a price target of $20.10. That implies a possible rise of around 15%. The broker notes that it has been growing market share, but decided to moderately reduce its profit forecast over the next couple of years.

The post Why did the Coles share price have such a rough trot in August? appeared first on The Motley Fool Australia.

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More reading

• Boost your income with these ASX dividend shares: analysts
• Why is the Coles share price having such a lousy end to the week?
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX 200 shares today
• Is the Endeavour share price a bargain after its big tumble in August?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. 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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Zip Co Ltd (ASX: ZIP) shares are on watch this morning.

This comes after the ASX buy now, pay later (BNPL) share was ousted from the S&P/ASX 200 Index (ASX: XJO).

Certainly, Zip is still very much trading on the ASX.

But every quarter S&P Dow Jones Indices reviews and rebalances the stocks within its various S&P/ASX Indices.

And as part of its September quarterly rebalance, Zip shares will no longer be part of the ASX 200 benchmark.

That’s because after shares in the BNPL company fell by 80% in 2022, its market cap has fallen to some $595 million. That means it no longer ranks among the biggest 200 listed companies in Australia.

While there were no changes in the S&P/ASX 20 Index or S&P/ASX 50 Index, there were plenty of shakeups amongst the other popular indices.

Why does this matter?

There are certain advantages for stocks, like Zip shares, to be listed on the bigger indices such as the ASX 200.

Firstly, those stocks tend to get more analyst and media attention and, therefore, will be more likely to attract the attention of retail investors.

Secondly, many fund managers are restricted to trading only the bigger stocks, often limited to the ASX 200. So getting ousted from the index means those fund managers will no longer be able to invest in Zip and some may be selling their holdings today.

How have Zip shares been tracking longer term?

Like the rest of the BNPL sector, Zip shares have been pounded by rising inflation and interest rates, with the company also facing significant levels of bad debts from its customer base.

Zip shares were star performers, however, during the recovery year following the 2020 pandemic-fuelled market crash.

From 20 March 2020 through to 19 February 2021, the Zip share price rocketed an eye-popping 872%. Since that peak, however, the ASX BNPL share has lost 93% of its value.

We’ll be watching closely to see how the company fares today.

The post Zip shares on watch amid ASX 200 ousting appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
• Zip and these shares have been kicked out of the ASX 200 index
• Why is the Zip share price tumbling 4% on Thursday?
• Why did the Zip share price zoom 11% higher today?
• Here are the top 10 ASX 200 shares today

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 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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Westpac Banking Corp (ASX: WBC) shares are often seen as an option for generating income as an ASX dividend share.

The S&P/ASX 200 Index (ASX: XJO) bank share hasn’t had a great time since interest rates started jumping higher in June. Since 6 June 2022, the Westpac share price has dropped around 10%.

However, one of the benefits of a lower share price is that not only could it mean the share is better value, but that the prospective dividend yield could be even higher.

How big will the Westpac dividend be?

Every analyst has their own expectation of how much the ASX 200 bank share is going to pay.

Estimates on CMC Markets suggest dividend growth for shareholders over the next few years.

In FY22, Westpac is expected to pay an annual dividend of $1.23 per share. That would translate into a grossed-up dividend yield of 8.2%.

The projections imply dividend growth of 7.3% in FY23 to an annual payment of $1.32 per share. This would be a grossed-up dividend yield of 8.8%.

More dividend growth is expected in FY24. The dividend could grow by almost 10% to $1.45 per share. In that case, it would translate to a grossed-up dividend yield of 9.7%.

Commonwealth Bank of Australia (ASX: CBA) is also expected to keep growing its dividend between now and FY24, according to CMC Markets. However, the FY24 grossed-up dividend yield from CBA is only expected to be 6.3%, so Westpac is expected to be a more lucrative source of dividends than CBA.

Is the Westpac share price a buy?

A business isn’t necessarily a buy just because it pays a large dividend. But, with projected dividends that big, Westpac shares don’t need to do too much for the bank to deliver satisfactory total returns.

Some brokers are very confident about the outlook for the Westpac share price.

Citi rates it as a buy with a price target of $29. That implies a possible rise of more than 30%. The broker pointed out that bad debts are still low and the asset quality is strong. It’s also expecting the net interest margin (NIM) to keep rising over the next year.

While the broker UBS is currently neutral on the big bank, the price target of $26 implies a rise of around 20%. The bank may also report a credit release in the second half of FY22 thanks to its credit quality.

The post Are Westpac shares the answer for investors wanting dividend income? appeared first on The Motley Fool Australia.

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More reading

• Goldman Sachs says these ASX dividend shares are buys
• Is this why the Macquarie share price was ‘steaming ahead’ on Friday?
• Why is the ASX 200 diving 2% on Tuesday?
• How did the Westpac share price beat the other ASX 200 banks in August?
• What’s the outlook for ASX 200 bank shares in September?

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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 AGL Energy Ltd (ASX: AGL) share price has been falling. Over the past month, it has dropped by around 15%. But after this sizeable fall, is the company in the buy zone yet?

It has been a tricky time for AGL with its profit being challenged and the company going through a demerger process that shareholders ultimately voted against.

The company also revealed a number of other factors to investors in its FY22 result, so let’s remind ourselves of what was recently reported.

FY22 earnings recap

AGL told investors that its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) dropped 27% to $1.22 billion and its underlying net profit after tax (NPAT) sunk 58% to $225 million.

AGL said that the fall in underlying profit reflected the “expected step down in trading and origination electricity earnings due to lower realised contracted and wholesale customer prices, increased costs of capacity to cover periods of peak electricity demand and the absence of the Loy Yang unit 2 insurance proceeds recognised in FY21″.

The total AGL customer services and total generation volumes were “broadly flat”, the company said.

It has been working on reducing its costs so that it can be more profitable. AGL reported that over $150 million of targeted operating cost reductions were delivered in FY22 and it’s on track to deliver $100 million of sustaining capital expenditure reductions by the end of FY23. This could be helpful for the AGL share price.

Fallout of the demerger

AGL decided to withdraw the proposed demerger and announced a review of its strategic direction. It’s reviewing four things: its existing strategies, its decarbonisation objectives, the optimal energy mix, and the capital structure.

Progress on this review is “continuing” and an update on the initial outcomes is expected at the end of September.

It’s also “well advanced” in selecting a new chair. The company expects to announce its new chair before the annual general meeting (AGM). It has also commenced a global search for a managing director and CEO.

Outlook for AGL and the share price

AGL said it believes FY23’s earnings will “remain resilient” through the current challenging energy industry and market conditions. Management explained why it thinks AGL can safely get through this period:

The strength of AGL’s large and diversified customer base, low-cost baseload generation position supported by strong fuel supply arrangements, robust risk management, with prudent margin management ensuring retail strength and stability in a highly volatile market.

The company thinks that it’s well positioned to benefit into FY24 from sustained higher wholesale electricity pricing as historical hedge positions progressively roll off.

Broker ratings on the AGL share price

Interestingly, with AGL shares currently sitting at $7.26, it’s at a 12% discount to the takeover price offered by Brookfield and Grok Ventures (Cannon-Brookes’ investment vehicle) earlier this year. It’ll be interesting to see if anything further comes from the consortium.

Morgans rates AGL as add, even though the broker thinks that FY23 could be another difficult year for the electricity market. The price target is $8.63, implying a possible rise of almost 20% over the next year.

Ord Minnett is even more optimistic. It rates AGL as a buy, with a price target of $10, implying a possible rise of close to 40%.

However, UBS is neutral on the business and the price target is $8.15, which still implies a possible increase of more than 10%. It’s expecting a slower recovery in electricity, though gas could make up some of the difference.

The post Down 15% in a month – is the AGL share price good value yet? appeared first on The Motley Fool Australia.

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• Why is the AGL share price on the slide today?
• Natural gas is up 110% this past year. What does this mean for the AGL share price?
• 3 popular ASX 200 shares going ex-dividend tomorrow
• Could AGL shares really offer 9% upside and rising dividends in FY23?
• Broker tips AGL share price to leap higher

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

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The National Australia Bank Ltd (ASX: NAB) share price has been lifting of late. It’s gone up 18% since mid-June. After a strong run over the past two and a half months, is it too late to buy into the big S&P/ASX 200 Index (ASX: XJO) bank?

While NAB may be pretty similar to the other ASX bank shares of Commonwealth Bank of Australia (ASX: CBA), Australia and New Zealand Banking Group Ltd (ASX: ANZ), and Westpac Banking Corp (ASX: WBC), there are some important differences.

One of the main factors that investors may focus on is earnings growth. Long-term profit growth could be an important driver of the NAB share price over time.

Certainly, NAB is growing its profit. Let’s have a look at the latest profit numbers and what experts think of the bank.

FY22 third quarter earnings recap

In the three months to June 2022, NAB generated $1.85 billion of statutory net profit and $1.8 billion of cash earnings. Year over year, cash earnings grew 6% with 10% growth when looking at cash earnings before tax and credit impairment charges.

The acquisition of Citigroup’s Australian consumer business was effective from 1 June 2022.

NAB outlined the effect of including and excluding the Citi acquisition compared to the FY22 first half quarterly average cash earnings before credit impairment charges and tax of $2.43 billion. Including the Citi acquisition, underlying cash earnings rose 3% and excluding the Citi acquisition underlying cash earnings rose 2%.

The big bank also said that the acquisition boosted the net interest margin (NIM) by 1 basis point (0.01%), it increased gross lending balances by $13.2 billion ($9.2 billion of home loans and $4 billion of credit cards and other unsecured personal lending). The deal also came with $9.4 billion of deposit balances.

In terms of its loan book, its arrears were in a good place at the end of June 2022. Over the quarter, loans that were at least 90 days overdue reduced from 0.75% to 0.7%. However, this quarter came before the significant increases in the Reserve Bank of Australia (RBA) interest rate really started flowing through to mortgage rates. Time will tell how the loan book performs in the coming months as households suffer a big increase in their mortgage costs.

Expert views on the NAB share price

There is a range of views on NAB.

The broker Morgan Stanley thinks the NAB share price will fall, with a price target of $27.20, implying a drop of more than 10%. The rating is equal-weight, which is like a hold rating. It thinks growth will slow and that banks could see higher bad debts in the future as higher interest rates bite.

UBS has a neutral rating on NAB, with a price target of $33. That implies a rise of close to 10% over the next year. It thought the third quarter was good and noted that a majority of borrowers are ahead on their mortgage payments.

The broker Ord Minnett rates NAB as accumulate, with a price target of $32.70. It’s expecting a good final quarter of FY22 and it’s also expecting revenue growth over the next two halves as interest rates rise.

Experts are expecting pretty big dividends from NAB. For example, at the current NAB share price, Ord Minnett is expecting the bank share to pay a grossed-up dividend yield of 7% in FY22 and 7.8% in FY23.

The post Are NAB shares worth buying in September? appeared first on The Motley Fool Australia.

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More reading

• Is this why the Macquarie share price was ‘steaming ahead’ on Friday?
• Why is the ASX 200 diving 2% on Tuesday?
• Why did the NAB share price struggle in August?
• What’s the outlook for ASX 200 bank shares in September?
• Will this build value for NAB shareholders or alienate the bank’s customers?

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended 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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I think it is fair to say that Domino’s Pizza Enterprises Ltd (ASX: DMP) shares have been having a tough year.

For example, on Friday the pizza chain operator’s shares ended the week at $60.87, which is just a fraction higher than their 52-week low.

Time to buy Domino’s shares?

One broker that believes investors should be seizing on this weakness is Morgans.

According to a recent note, the broker has recently retained its add rating but trimmed its price target on the company’s shares slightly to $90.00.

Based on where Domino’s shares are trading today, this implies potential upside of almost 50% for investors over the next 12 months.

And with the broker expecting a $1.73 per share partially franked dividend in FY 2023, this adds a further 2.8% yield to the equation.

What did the broker say?

Morgans acknowledges that the last 12 months have been difficult for the company. However, it appears confident that the worst is over and “it will get better from here.”

The broker highlights that price increases and operating efficiencies should help offset inflationary pressures. It explained:

Higher prices, operating efficiencies and menu enhancements are already allowing DMP to offset cost inflation in ANZ and Asia. It’s been slower in Europe, but it appears progress is being made. With the prospect of some relief in commodity price inflation and reduced losses in Denmark, we expect margins to rise in FY23.

In light of this, Morgans is forecasting double digit earnings growth in both FY 2023 and FY 2024. It commented:

The transition out of COVID-19 tailwinds and into an environment of inflationary pressure and reduced consumer confidence made FY22 a challenging year for Domino’s Pizza. EBIT fell by 10.5% as both Asia and Europe reported reduced margins and same store sales growth. We believe it will get better from here. We forecast 12.9% EBIT growth in FY23, followed by 19.5% growth in FY24.

All in all, its analysts appear to see this as the potential turning point for Domino’s shares.

The post Morgans tips Domino’s shares to deliver 50% return appeared first on The Motley Fool Australia.

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• $20,000 invested in these ASX shares 10 years ago is worth how much now?
• Reason for hope as ‘worst month of the year’ starts off badly
• Here are 3 ASX 200 shares trading ex-dividend today
• Brokers name 3 ASX shares to buy today
• Domino’s share price sinks 7%, giving back most of Wednesday’s gains

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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Ask A Fund Manager

The Motley Fool chats with the best in the industry so that you can get an insight into how the professionals think. In this edition, SG Hiscock portfolio manager Hamish Tadgell reveals how the investment world will be completely different in the next decade compared to the last dozen years.

Investment style

The Motley Fool: How would you describe your fund to a potential client?

Hamish Tadgell: I am the portfolio manager of the SG Hiscock High Conviction fund. 

The high conviction fund’s a broad-cap portfolio of 15 to 30 Australian listed equities. We aim to deliver long-term capital growth and [a] growing income stream with a focus on capital preservation. 

And how we do that really is through active management in identifying the best ideas and attempting to exploit market and efficiency through fundamental analysis and research and focusing on quality businesses and buying them at a sensible price. 

What we mean by quality is companies that have got a strong, competitive advantage and are well managed by an engaged and motivated team. We’re really trying to… look for sustainable earnings growth in those businesses. And, as I say, buying them at a margin of safety. 

MF: How are you seeing the market at the moment, and where do you see it going?

HT: The last 12 months, or post-COVID, has seen a significant change in the market. A lot of it has been driven by geopolitics, I think, at the macro level at the moment. I do think that the macro investment backdrop has changed. 

If you look back over the last two decades, I think there’s been a globalisation driven by a reasonably happy marriage between China and the US, which delivered mutual benefit. And a happy marriage, between Russia and Germany, which has delivered mutual benefit in terms of cheap energy for [the] industrialisation of Germany. And those things have really changed in the last 12 months. We’ve seen a divorce in those relationships. We’ve seen China getting much closer to Russia and working much more closely.

With that, we’ve seen geopolitical unrest increase, greater volatility around trading, commodity prices, and I think a deglobalisation is starting to occur, which has clearly led to a higher inflation environment. 

I think the last 10, 20 years have really been dominated by deflation in a very stable world, where you’ve had globalisation and low inflation. In a more volatile environment, higher geopolitical uncertainty, realignment of country relationships, we’re seeing higher inflation, and we see it as the end of the deflationary environment and a shift to a higher inflationary environment. And probably a higher rate environment going forward. 

Clearly, that has big implications for stock positioning, sector positioning and market valuations, and more broadly, asset returns and asset valuations.

MF: So you see the higher rates and inflation as something more permanent?

HT: Yeah. We see it as much more than just a cyclical shift. 

This has been exacerbated, if you like, by COVID. But many of the things were in place prior to COVID, and we think it’s more of a structural shift that’s occurring, and it’s going to create a different investment environment to what we’ve been used to over the last 10, 15 years.

The post Ultra-low interest rates and inflation aren’t coming back. Get used to it or go broke appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Broker names 2 excellent ASX growth shares to buy right now
• Here are 2 ASX dividend shares that experts rate as buys
• Here are 2 ASX 200 shares that experts rate as buys
• 3 fantastic ETFs for ASX investors to buy in September

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 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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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished a tough week with another red day. The benchmark index dropped 0.25% to 6,828.7 points.

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

ASX 200 expected to fall

The Australian share market looks likely to start the week in a similar style to how it ended the last one. This follows a disappointing end to the week on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 16 points or 0.25% lower this morning. On Wall Street, the Dow Jones was down 1.1%, the S&P 500 also dropped 1.1%, and the NASDAQ tumbled 1.3% lower. A solid US jobs report failed to ease concerns that the US Federal Reserve would keep aggressively hiking interest rates to fight inflation.

Oil prices rise

Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a decent start to the week after oil prices pushed higher on Friday. According to Bloomberg, the WTI crude oil price was up 0.3% to US$86.87 a barrel and the Brent crude oil price rose 0.7% to US$93.02 a barrel. There’s speculation that OPEC could announce production cuts this week to boost prices.

ASX 200 rebalance

The Zip Co Ltd (ASX: ZIP) share price could come under pressure today after S&P Dow Jones Indices announced that it would be dumping the buy now pay later provider out of the ASX 200 index at the next rebalance. Other shares leaving the index include the beleaguered AVZ Minerals Ltd (ASX: AVZ), location technology company Life360 Inc (ASX: 360), and sports betting company Pointsbet Holdings Ltd (ASX: PBH).

Gold price rises

A strong US jobs report could mean gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) have a positive start to the week on Monday. According to CNBC, the spot gold price was up 0.8% to US$1,722.6 an ounce on Friday night. The aforementioned jobs report led to the US dollar weakening and boosting gold.

Fortescue shares go ex-dividend

The Fortescue Metals Group Limited (ASX: FMG) share price is likely to tumble deep into the red on Monday. That’s because this morning the iron ore giant’s shares will be trading ex-dividend for its final dividend of $1.21 per share. Based on the current Fortescue share price, this dividend alone equates to a massive 7% dividend yield. Its shares could fall in line with this yield today.

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

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More reading

• What’s the outlook for Fortescue shares amid a struggling Chinese economy?
• Are ASX 200 energy shares a good investment right now?
• Zip and these shares have been kicked out of the ASX 200 index
• Here are the top 10 ASX 200 shares today
• Why Core Lithium, Mineral Resources, PointsBet, and Strike Energy are dropping

Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc., Pointsbet Holdings Ltd, and ZIPCOLTD FPO. The Motley Fool Australia has recommended Pointsbet Holdings 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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Looking for some new additions to your portfolio after earnings season? Listed below are two ASX growth shares that have recently been given buy ratings by Goldman Sachs.

Here’s why its analysts rate them highly right now:

Breville Group Ltd (ASX: BRG)

The first ASX growth share that is highly rated by Goldman Sachs following earnings season is Breville.

It is the leading appliance manufacturer behind brands such as Breville, Sage, Kambrook, and Baratza.

As many readers will be aware, these appliances are found in countless kitchens across Australia. And thanks to the company’s ongoing and highly successful international expansion, you may have noticed them popping up in kitchens across Europe if you were holidaying abroad this winter.

Goldman Sachs is very positive on the company. It highlights that Breville is exposed to some powerful trends and its strong brands are well-placed to benefit from them.

Goldman has a buy rating and $24.70 price target on the company’s shares.

ResMed Inc. (ASX: RMD)

Another ASX growth share that Goldman is tipping as a buy is ResMed.

It is a medical device company with a focus on sleep treatment and respiratory products that treat disorders including sleep apnoea and chronic obstructive pulmonary disease (COPD).

These are significant and growing markets to target. For example, the company highlights that upwards of 1 in 5 people are believed to suffer from sleep apnoea, with the vast majority currently undiagnosed. This bodes well for ResMed’s future growth, especially given its industry-leading products, high level of research and development, and wide distribution network.

Goldman Sachs currently has a buy rating and $36.80 price target on its shares.

The post Broker names 2 excellent ASX growth shares to buy right now appeared first on The Motley Fool Australia.

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More reading

• 3 top ASX growth shares analysts rate as buys
• Here are the top 10 ASX 200 shares today
• Analysts name 2 growing ASX shares as buys
• Breville share price lifts on record FY22 revenue and dividend boost
• 3 buy-rated ASX 200 shares that analysts love

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 ResMed Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia has positions in and has recommended ResMed Inc. 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 dividend shares to buy? If you are, it could be worth checking out the two listed below.

Here’s why they are rated as buys right now:

Adairs Ltd (ASX: ADH)

The first ASX dividend share that could be a buy is Adairs. It is the leading furniture and homewares retailer behind the Focus on Furniture, Mocka, and eponymous Adairs brands.

It’s fair to say that FY 2022 was a year to forget for the company. It reported a sharp decline in profits due to significant COVID related disruptions across its operations.

But the worst appears to be behind the company now. It revealed that sales were up almost 45% during the first seven weeks of FY 2023. In light of this, management is guiding to earnings in the range of largely flat to up 11% for the full year.

The team at Jarden remain positive enough to put an overweight rating and $3.28 price target on the company’s shares.

As for dividends, the broker is forecasting fully franked dividends per share of 18 cents per share in FY 2023 and 22 cents per share in FY 2024. Based on the current Adairs share price of $2.23, this will mean yields of 8% and 9.9%, respectively.

Mineral Resources Limited (ASX: MIN)

Another ASX dividend share to look at is mining and mining services company Mineral Resources. It could be a decent option for income investors that aren’t averse to investing in the resources sector.

This is because Mineral Resources has a growing exposure to lithium, which is helping to offset its struggling iron ore business.

It is because of its lithium operations that Goldman Sachs is very positive on the company. In fact, the broker is forecasting the more than doubling of group EBITDA to over $2.3 billion in FY 2023 thanks largely to these operations.

Goldman has a buy rating and $69.50 price target on its shares, which implies meaningful upside over the next 12 months.

In addition, the broker has pencilled in fully franked dividends of 192 cents per share in FY 2023 and then 107 cents per share in FY 2024. Based on the latest Mineral Resources share price of $58.71, this will mean yields of 3.3% and 1.8%, respectively.

And while the latter yield may not be exciting, patient investors should be rewarded. Goldman expects growth thereafter and a 5%+ yield by FY 2027.

The post Here are 2 ASX dividend shares that experts rate as buys appeared first on The Motley Fool Australia.

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More reading

• Why Goldman Sachs is bullish on the Mineral Resources share price
• Why Core Lithium, Mineral Resources, PointsBet, and Strike Energy are dropping
• Why are ASX 200 mining shares getting hammered on Friday?
• Why is the Mineral Resources share price down a hole on Friday?
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. 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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