If you’re interested in adding some ASX 200 shares to your portfolio this week, then the three listed below could be worth considering.

These ASX 200 shares have all been named as buys recently. Here’s what you need to know about them:

Cochlear Limited (ASX: COH)

The first ASX 200 share to look at is Cochlear. It is one of the world’s leading hearing solutions companies with a portfolio of industry-leading cochlear implant devices.

Goldman Sachs is a fan of Cochlear. In response to its recent full year results, the broker reiterated its buy rating with an improved price target of $247.00. Goldman believes that Cochlear will grow its net profit by “a +10% CAGR from FY22-25E.”

Goodman Group (ASX: GMG)

Another ASX 200 share that could be a top option for investors is Goodman Group. It is one of the world’s leading integrated commercial and industrial property companies.

Goodman has been growing at a strong rate for years thanks to its expertly constructed portfolio that gives it exposure to key growth markets such as ecommerce and logistics.

The team at Citi is bullish on Goodman and expects its strong growth to continue. The broker recently commented: “We revise medium-term earnings higher and see upside to FY23 guidance of 90.3c (11% EPS growth) driven by (1) another strong year of development earnings growth, (2) continued rise in management and investment income driven by high asset values and recent development completions.”

Citi has a buy rating and $23.50 price target on the company’s shares.

ResMed Inc. (ASX: RMD)

A final ASX 200 share to look at is ResMed. It is another industry leader, this time in the sleep treatment market.

Like the others, the company has been growing at a strong rate for years and has been tipped to continue doing so for the foreseeable future.

Morgans is a fan of ResMed. It believes there is “a multi-year opportunity for RMD to growth at or above market and solidify its market leadership position.” The broker has an add rating and $37.08 price target on its shares.

The post 3 buy-rated ASX 200 shares that analysts love appeared first on The Motley Fool Australia.

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More reading

• Goldman Sachs tips Cochlear share price to rise 13%
• 5 things to watch on the ASX 200 on Monday
• Why Accent, Cochlear, Newcrest, and Santos shares are charging higher today
• Cochlear share price takes off despite guidance miss
• Cochlear share price in focus as sales revenue surges to record $1.6b

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 Cochlear Ltd. and 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 Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Pilbara Minerals Ltd (ASX: PLS) share price has gained 21.5% over the last month, and tomorrow could bring more significant movement.

The S&P/ASX 200 Index (ASX: XJO) lithium company is gearing up to drop its full-year results on Tuesday.

Does that mean now is a good time to snap up the company’s stock prior to its annual release? Let’s take a look at what experts are tipping for the stock’s future.

Pilbara Minerals shares last traded at $3.05 each.

What does the future hold for the Pilbara Minerals share price?

Tomorrow is set to be a particularly exciting day for ASX 200 lithium fans as one of the market’s favourite miners is expected to issue its full-year results.

While the Pilbara Minerals share price fell nearly 4% on the release of its financial year 2021 earnings, it has gained 37% since.

And TMS Capital’s Henry Jennings believes it could be in prime position to keep growing.

The fundie told Livewire he believes the Pilbara Minerals share price will soar if recession risks fade.

Jennings believes that, if current uncertainty dissipates, the push towards electric vehicles will light a fire under lithium stocks in general and Pilbara Minerals in particular.

And the fundie isn’t alone in the bull’s corner. Citi is also expecting big things from the ASX 200 lithium giant.

The broker has a ‘buy’ rating and a $3.60 price target on Pilbara Minerals’ shares, my Fool colleague James reports. That represents a potential 18% upside.

And while Citi’s financial year 2022 earnings expectations recently faltered, it’s still tipping big things for the future.

Indeed, it forecasts the company to pay its maiden dividend in financial year 2023. The broker expects the company to pay out 29 cents per share in dividends this fiscal year and 21 cents per share in financial year 2024.

The post Is the Pilbara Minerals share price a buy prior to the miner’s earnings release tomorrow? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• 2 ASX 200 shares set to soar if we manage to avoid a recession: experts
• Why are Pilbara Minerals shares seeing so much action this week?
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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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Over the past two months, the Xero Limited (ASX: XRO) share price has gone up by approximately 20%. That’s a quick rise considering the S&P/ASX 200 Index (ASX: XJO) has only gone up by 9%.

But, after this strong rise, is this ASX tech share an opportunity or has it gone too high to be worth buying?

Xero isn’t the only one that has been going up in recent weeks. The Altium Limited (ASX: ALU) share price has also gone up by around 20%. While the WiseTech Global Ltd (ASX: WTC) share price has soared 55% over the last two months.

There is plenty of attention on ASX growth shares, with investors watching how inflation and rising interest rates may affect their bottom lines and valuations.

Xero is one of the biggest ASX growth shares with a market capitalisation of $13.6 billion, according to the ASX. So, is it a big opportunity?

What’s the latest on the Xero share price?

The last price-sensitive bit of news out of the company came in May, it was the FY22 result.

But, last week, the company held its annual general meeting (AGM).

At that meeting, the company re-iterated its global aspirations and it sees “substantial opportunities for Xero’s growth in the US, Canada and the UK, as well as further growth” in its more established markets of Australia and New Zealand.

The optimistic outlook

Management is “optimistic” about Xero’s market opportunities with its pipeline. Xero said that cloud-based accounting is “fundamental to the success of small business”. There is also a trend for governments wanting businesses to go digital, partly so that they can “collect revenues faster”.

In FY22, Xero saw “continued top line momentum, double-digit subscriber growth and a further reduction of churn rates”.

Xero reported that in FY22, operating revenue increased 29% to $1.1 billion and total subscribers grew by 19% to 3.3 million. In FY22, its churn was around 0.9%, meaning it kept more than 99% of its subscribers. This was an improvement compared to FY21 when the churn rate was just over 1%.

One of the main things that I’ve noted about Xero in recent months is that it is increasing prices for subscribers in Australia, New Zealand and the United Kingdom. This should help average revenue per user (ARPU), annualised monthly recurring revenue (AMRR), and hopefully the gross profit margin as well.

Is the Xero share price a buy?

While Xero shares have risen, they are still down by almost 40% for 2022.

I think it looks much better value now than last year.

The company has plenty to like about it in my opinion, with numerous pleasing financial measures that I’ve already mentioned. The gross profit margin of 87.3% is very high and allows Xero to reinvest a lot of the new revenue it receives into more growth.

Even now, it’s certainly not cheap. However, it could easily make a lot of profit if it wanted to. The company is just choosing to reinvest its cash flow generated into more opportunities.

Xero chair David Thodey said to shareholders:

We are conscious that the market’s view of high growth companies has changed over the last six months. This revaluation has impacted us in a similar way to our peers. I trust that you can see from our results, the fundamentals for your company remain strong and we remain positive about the opportunities ahead.

I think the company has plenty of global growth ahead of it. And this is why I think the Xero share price is a long-term buy today.

The post Up 20% in 2 months, is the Xero share price a buy today? appeared first on The Motley Fool Australia.

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More reading

• Why ASX 200 energy shares could still have decades of prosperity ahead: broker
• Earnings preview: Here are 3 ASX 200 shares reporting this week
• 5 things to watch on the ASX 200 on Monday
• 2 years on, how close is the Flight Centre share price to its pre-COVID levels?
• ASX reporting season weekly wrap: Winners and losers

Motley Fool contributor Tristan Harrison has positions in Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended WiseTech Global and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX All Ordinaries Index (ASX: XAO), or All Ords, shares in this article are expected to pay large dividend yields in the medium term.

A business that is able to generate good profit and cash flow is able to fund dividends for shareholders — if it chooses to. If a business has a relatively high dividend payout ratio and a fairly low price/earnings (p/e) ratio, it could mean the dividend yield is high.

I like the idea of receiving a good amount of the annual return in the form of dividends. Getting cash in the bank is satisfying, particularly when one has to do so little work for it after the initial investment.

With that in mind, these are two All Ords ASX dividend shares that could pay large dividend yields in 2023:

GQG Partners Inc (ASX: GQG)

GQG Partners is one of the largest fund managers on the ASX with a market capitalisation of $4.7 billion.

It offers investors a number of different investment strategies including US shares, global shares, dividend shares, and so on.

The company recently announced its FY22 half-year result which showed that its average funds under management (FUM) increased 23%, net revenue increased 21.3% US$222.7 million, and net operating income went up 18.3% to US$174.2 million.

It aims to pay dividends that amount to 90% of its distributable earnings. In the first half of FY22, it generated US$133.3 million of distributable earnings.

GQG boasts that less than 3% of its revenue in the first half came from performance fees. It believes asset-based fees will be more stable in periods of market volatility.

The All Ords ASX dividend share had positive net inflows of US$6.3 billion over the half, despite a challenging market environment and continued industry outflows and overall negative market returns.

Looking at the expected dividend yield, according to CMC Markets, GQG is expected to pay an annual dividend of 12.5 cents per share. That translates into a potential forward dividend yield of 7.8% in FY23.

BHP Group Ltd (ASX: BHP)

BHP is one of the world’s biggest dividend payers and it’s also one of the largest global resource businesses.

It generates significant profit from its iron ore division, but there are other commodities in the portfolio that enable BHP to generate revenue including nickel, copper, and metallurgical coal (for making steel). The resources giant is also working on a potash (fertiliser) project in Canada called Jansen which is expected to have a long life and generate strong margins.

The All Ords ASX dividend share just unveiled its FY22 result which included a large final dividend payment. But, FY23 could be another bountiful year for dividends.

But how big could the dividend be? Let’s have a look at a couple of the estimates.

On CMC Markets, BHP is expected to pay an annual dividend of $3.18 per share. That translates into a grossed-up dividend yield of 10.9%. The broker Morgans is expecting a much larger dividend, translating into a possible FY23 grossed-up dividend yield of 13.6%.

The post Here are 2 All Ords ASX dividend shares with yields above 6% appeared first on The Motley Fool Australia.

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More reading

• ASX reporting season weekly wrap: Winners and losers
• Worried about the iron ore price? Why the need for it ‘ain’t going anywhere’: broker
• 3 ASX All Ordinaries shares cracking new highs on Friday
• Guess which ASX copper share has exploded 182% this week?
• The OZ Minerals share price has barely moved since rocketing on BHP’s takeover bid. So, what now?

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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August can be a really interesting month because it’s reporting season. It gives us the opportunity to look into how businesses have been performing over the last six or twelve months.

After seeing some numbers, it could mean that a few S&P/ASX 300 Index (ASX: XKO) shares are worth looking at.

Just because a business reports growth in its result doesn’t mean that investors will push the share price higher. Generally, it’s only when the result is a surprise that share prices move substantially (either higher or lower).

There is more to a result announcement than what has already happened. Businesses usually give comments about the new financial period as well. Having looked at their results, I’m feeling positive about the outlook for these two ASX 300 shares:

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting is a retailer with large format stores that sell lots of things that a baby or toddler might need such as clothes, furniture, prams, car seats, and so on.

I thought the company’s FY22 result was solid, with sales growth of 8.3% to $507.3 million and statutory net profit after tax (NPAT) growth of 14.6% to $19.5 million. It also grew the full-year dividend by 10.6% to 15.6 cents per share.

During the year, the company opened four new stores. It’s now planning to open 110 stores in Australia (previously the plan was 100 stores), as well as more than 10 stores in New Zealand.

The ASX 300 share is also working on establishing a Baby Bunting marketplace that will facilitate ‘first party’ drop ship sales and the sale of third-party products. The marketplace is expected to launch in the second half of FY23.

A growing store network, rising sales, and rising profit margins offer an attractive outlook in my opinion. The company is expecting to open at least six new stores in Australia in FY23 as well as a second store in New Zealand. Although comparing against a lockdown period, the company was able to say that total sales had grown by 19.3% in FY23 to date to 10 August 2022.

According to the broker Macquarie, the Baby Bunting share price is valued at 20 times FY23’s estimated earnings after an 18% fall in 2022.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading online retailer of furniture and homewares. It also recently launched ‘The Build’, an onlin site specifically for renovation projects. The plan here is for it to be a leading seller of home improvement products to Aussies.

The company has seen an enormous uplift in sales since the start of the COVID-19 pandemic. FY22 revenue was $426.3 million – up 31% compared to FY21 and up 142% compared to FY20. It managed to achieve an earnings before interest, tax, depreciation, and amortisation (EBITDA) margin of 3.8% despite a $1.7 million investment in The Build.

An increase in profitability looks like a good development to me. Management expects the FY23 EBITDA margin to be between 3% to 5%. Inventory levels in FY23 are “strong” and all metrics are in line, or better than, internal targets.

While August trading showed sales were down 17% year on year, they were ahead of internal estimates.  As well, “month-to-month seasonality suggests a return to double-digit growth during FY23” once sales have finished being compared against lockdown figures from the year before.

I like the bullish and optimistic sentiment of the company when it said:

We remain committed to our profitable growth strategy. We’re confident we have the people, platforms, brand and business model to achieve our goal of becoming Australia’s largest retailer of furniture and homewares.

The Temple & Webster share price has zoomed higher over the past month. But, since the beginning of 2022, it has plunged over 50%, so I think it looks much better value.

The post After seeing their reports, I think these 2 ASX 300 shares are buys appeared first on The Motley Fool Australia.

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More reading

• ASX reporting season weekly wrap: Winners and losers
• Could these devastated ASX shares make a roaring comeback?
• Are the stores themselves on sale?
• Here’s how much the Vanguard Australian Shares Index ETF (VAS) has paid in dividends over the past 5 years
• Adore Beauty share price slips 12% following ASX speeding ticket

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 Temple & Webster Group Ltd. The Motley Fool Australia has recommended Baby Bunting and Temple & Webster 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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Using exchange-traded funds (ETFs) can be a really good way to build wealth if investors aren’t sure about which companies to buy into.

How they can help

Investing in an ETF can allow investors to buy a wide range of businesses in one go. That’s useful for diversification.

Some allow investors to get exposure to a whole index like the S&P/ASX 300 Index (ASX: XKO), whereas others might be able to give investors access to a specific sector like Betashares Global Cybersecurity ETF (ASX: HACK) and VanEck Video Gaming and Esports ETF (ASX: ESPO).

There are two ETFs I’m going to write about in this article: one focused on ASX shares and one focused on quality US shares. I think they can work well together.

Vanguard Australian Shares Index ETF (ASX: VAS)

I think this is one of the easiest ways to invest in ASX shares because it gives investors the ability to invest in the ASX 300, which is 300 of the biggest businesses on the ASX.

It can be tricky to know which particular ASX shares to invest in, but the VAS ETF means you can buy a small piece of them all.

However, it’s worth pointing out that the biggest businesses have the most significant allocations in the VAS portfolio. Thus, the bigger the position in the portfolio, the more influence it has on the ETF’s returns.

That means names like BHP Group Ltd (ASX: BHP), Commonwealth Bank of Australia (ASX: CBA), CSL Limited (ASX: CSL), National Australia Bank Ltd (ASX: NAB), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group Ltd (ASX: ANZ), Macquarie Group Ltd (ASX: MQG), Woodside Energy Group Ltd (ASX: WDS), Wesfarmers Ltd (ASX: WES), and Woolworths Group Ltd (ASX: WOW) have a significant influence on the VAS ETF.

It also owns names like Australian Finance Group Ltd (ASX: AFG), Adairs Ltd (ASX: ADH), and Temple & Webster Group Ltd (ASX: TPW). However, these are some of the portfolio’s smallest positions.

While it offers some diversification, it is quite focused on financials and materials. In fact, those two sectors make up just over half of the entire portfolio.

The VAS ETF has an annual management fee of just 0.10%.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This ETF is quite different. It’s put together by a team of analysts at the research house Morningstar.

VanEck says the idea behind this ETF is that it “gives investors exposure to a diversified portfolio of attractively priced US companies with sustainable competitive advantages”. This can also be called an economic moat. It’s one way of measuring the quality of the business.

Business strengths can come in different forms including brand power, intellectual property, cost advantages, and so on.

The Morningstar team have judged the businesses in the portfolio as having competitive advantages that are very likely to endure for at least a decade and, perhaps, for two decades. Names are only added to the portfolio if they are at “attractive prices relative to Morningstar’s estimate of fair value”.

On 17 August 2022, the biggest positions (out of 50) were: Kellogg, Veeva Systems, Polaris, Gilead Sciences, Blackrock, Ecolab, Etsy, Biogen, Boeing, Amazon.com, Microsoft, and MercadoLibre.

While past performance is not a guarantee of future results, over the past five years the MOAT ETF has produced an average return per annum of 16.4%, outperforming the S&P 500’s return of an average of 15.3% per annum.

The post 2 ETFs I think would make good additions to most portfolios appeared first on The Motley Fool Australia.

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More reading

• Here’s how much the Vanguard Australian Shares Index ETF (VAS) has paid in dividends over the past 5 years
• 3 top ETFs for ASX investors to buy next week
• Top ASX dividend shares to buy in August 2022
• Is the VAS ETF providing a bigger dividend yield than other ASX 200 index funds?
• 3 ETFs for smart ASX investors in August

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 ADAIRS FPO, Amazon, BETA CYBER ETF UNITS, CSL Ltd., Etsy, Gilead Sciences, MercadoLibre, Microsoft, and Temple & Webster Group Ltd. The Motley Fool Australia has positions in and has recommended ADAIRS FPO, BETA CYBER ETF UNITS, and Wesfarmers Limited. The Motley Fool Australia has recommended Amazon, Macquarie Group Limited, Temple & Webster Group Ltd, VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF, VanEck Vectors Morningstar Wide Moat ETF, and 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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One broker has had some optimistic words to say about one particular sector. The brokerage outfit Saxo has suggested that S&P/ASX 200 Index (ASX: XJO) energy shares may have many years of strong profit generation to go. There are some non-ASX 200 shares that are also benefiting.

One of the main global impacts of Russia’s invasion of Ukraine has been the significant increase in energy prices. Before 2022, Russia was one of the main global exporters of commodities like coal, gas, and oil.

With Western nations avoiding Russian commodities where possible, it has pushed up the demand and price for non-Russian resources.

Australian coal producers are seeing coal prices jump. However, some investors may be wondering whether the strength for energy prices will have a short life.

Energy prices could stay stronger for longer

Saxo Bank’s head of direct sales David Harvie said:

Thematically and systemically, the greenification of our globe has a long way to go. It’s probably got decades to go. Or at least the foreseeable future, until our energy requirements are satisfied in what you could argue is an ESG way, and or greener way, and or a lack of fossil fuel inputs way. And we’ve been saying that as a house pre-Ukraine. We’ve been saying that as a house, pre-inflation.

We don’t think it’s going anywhere. It’s only been exacerbated by Ukraine. It will only be exacerbated by a very cold winter in Deutschland and all the other places up there. So, I think if I were an investor, it would be an area I’d be looking at.

There have been some big gains with ASX 200 energy shares, including coal producers.

For example, since the beginning of 2022, the New Hope Corporation Limited (ASX: NHC) share price has gone up 112%. The Whitehaven Coal Ltd (ASX: WHC) share price has risen by 167%.

As reported by my colleague Aaron Teboneras, another factor helping coal could be the recent International Energy Agency report which anticipates that “global coal demand will return to its all-time high this year. This is being driven by higher natural gas prices, which have intensified gas-to-coal switching in many countries”.

Whitehaven expects big profit

Whitehaven recently pointed out that coal prices set a new record during the quarter for the three months to June 2022 and “continue to be well supported”. Whitehaven is expecting to report FY22 earnings before interest, tax, depreciation, and amortisation (EBITDA) of $3 billion, up from $0.2 billion in FY21.

The broker Macquarie cautions that the strength of the coal price will determine how well (or not) Whitehaven can do. It’s expecting Whitehaven’s dividend yield to be 6.8% in FY22 and 11.5% in FY23. That’s despite the huge gain of the Whitehaven share price.

The post Why ASX 200 energy shares could still have decades of prosperity ahead: broker appeared first on The Motley Fool Australia.

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More reading

• Earnings preview: Here are 3 ASX 200 shares reporting this week
• 5 things to watch on the ASX 200 on Monday
• 2 years on, how close is the Flight Centre share price to its pre-COVID levels?
• ASX reporting season weekly wrap: Winners and losers
• 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 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 Pro Medicus Limited (ASX: PME) share price was a positive performer last week.

In response to the health imaging technology company’s full year results, it shares recorded a weekly gain of 4.2%.

Can the Pro Medicus share price keep climbing?

One leading broker still sees value in the Pro Medicus share price at the current level.

According to a note out of Morgans, its analysts have retained their add rating and lifted their price target on the company’s shares to $58.18.

Based on the current Pro Medicus share price of $54.17, this suggests potential upside of 7.4% for investors over the next 12 months.

What did the broker say?

Morgans was impressed with Pro Medicus’ full year results and particularly its margins. Thanks to further operating leverage, the latter came in well-ahead of expectations. It commented:

PME recorded another year of strong growth across all metrics with the key highlight being further EBIT margin expansion to 67% (+400 bps on the pcp) well above expectations, highlighting the operating leverage of the business.

The broker also highlights that the company’s outlook remains as bright as ever. It said:

Outlook remains as strong as ever, highlighted by an increasing number of requests for tender proposals and more renewals from existing customers. The five-year forward contract value is up 31% to A$420m.

And while Morgans acknowledges that the Pro Medicus share price is not cheap at current levels, it believes the company’s quality and outlook justifies this.

It’s an impressive story, and one which we view with longevity. While currently fairly priced, we continue to view this as a strong long-term growth story which will continue to grow into its high multiple. Buyers on any weakness – it’s typically shortlived.

The post Pro Medicus share price tipped to rise amid ‘strong long-term growth story’ appeared first on The Motley Fool Australia.

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More reading

• Brokers name 3 ASX shares to buy today
• Pro Medicus share price fails to fly on 44% profit leap
• 5 things to watch on the ASX 200 on Thursday

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 Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus 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 Cochlear Limited (ASX: COH) share price could be heading higher from current levels.

That’s the view of analysts at Goldman Sachs, which have just reiterated their buy rating on the hearing solutions company’s shares.

This follows the release of a strong full year result for FY 2022 last week.

What is Goldman saying about the Cochlear share price?

According to note out of the investment bank, Goldman has reiterated its buy rating with an improved price target of $247.00.

Based on the current Cochlear share price of $218.86, this implies potential upside of 13% for investors over the next 12 months.

Goldman was impressed with the company’s performance, noting that “in a highly challenging year Cochlear delivered +17% NPAT growth to reach the upper-half of the guided range.”

The good news is that the broker is expecting more of the same in FY 2023. It said:

In our view, the backdrop for this year appears relatively more favourable, and we see clear scope for COH to deliver at the upper-end of another solid guidance (+8-13% to $290-305m, with further accretion possible from the Oticon Medical transaction, which is yet to close).

What about the medium term?

The good news for the Cochlear share price is that Goldman Sachs doesn’t expect the company’s growth to stop in FY 2023.

Its analysts believe the company is well-placed to continue this solid form through until at least FY 2025. It explained:

Overall, our NPAT forecast of $301m is at the upper-end of the guided range $290-305m, and we forecast a +10% CAGR from FY22-25E.

And while the broker acknowledges that Cochlear’s shares are not cheap at current levels, it still believes they are good value compared to historic multiples and due to its positive and uncomplicated outlook. The broker said:

Whilst valuation of 28x EV/EBITDA appears high in absolute terms, it is still only in-line with its 5-year average and modestly above its 10-yr. Looking across the other ‘recovery’ plays in our coverage, there is less complexity to COH’s near/mid-term earnings profile, and we believe it will ultimately experience lower and/or shorter-lived margin pressure through the pandemic period than peers.

The post Goldman Sachs tips Cochlear share price to rise 13% appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• Why Accent, Cochlear, Newcrest, and Santos shares are charging higher today
• Cochlear share price takes off despite guidance miss
• Cochlear share price in focus as sales revenue surges to record $1.6b
• Earnings preview: Here’s which ASX shares are reporting today

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

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It’s already been a bumper ASX reporting season as a swathe of S&P/ASX 200 Index (ASX: XJO) shares have lifted the lid on their results.

But this coming week could be the busiest yet, with a whole host of ASX 200 shares pencilled into our Foolish ASX reporting season calendar.

Tomorrow will see Endeavour Group Ltd (ASX: EDV) post its maiden set of full-year results.

Meanwhile, Qantas Airways Limited (ASX: QAN) and Whitehaven Coal Ltd (ASX: WHC) should drop their FY22 reports on Thursday.

But amidst the flurry of news, there will be some even bigger ASX 200 shares releasing their results.

Without further ado, here are the three largest ASX 200 shares reporting this week.

Coles Group Ltd (ASX: COL)

On Wednesday, investors will be able to sink their teeth into the full-year FY22 results from this ASX 200 supermarket share.

Coles last updated the market in April when it released its third-quarter sales report.

The company delivered 3.9% sales growth, with supermarkets and liquor growth offsetting a decline in Coles Express sales.

Coles noted the third quarter was characterised by unprecedented events, with Omicron and floods disrupting the company’s operations. It also acknowledged cost price inflation was impacting suppliers on the back of increased raw material, commodity, shipping, and fuel costs.

Inflation will likely be the big talking point when Coles reports on Wednesday. Investors will be watching to see how much of the cost increases have been passed on to consumers. And how the current landscape has been impacting demand and purchasing patterns.

There’s no doubt investors will also be eagerly awaiting their dividends. Broker Citi is expecting Coles to declare a final dividend of 32 cents. This would take Coles’ total FY22 dividends to 65 cents, putting shares on a tasty dividend yield of 3.4%.

Woolworths Group Ltd (ASX: WOW)

Coles’ biggest rival will report the day after, with its FY22 results scheduled for release on Thursday.

It will be a similar story for Woolworths, with all eyes on how the ASX supermarket is navigating the current inflationary environment.

Woolies delivered 9.7% sales growth in the third quarter of FY22, with Australian Food sales up 5.4%. A return to COVID-related shopping behaviour underpinned this in the early part of the quarter along with rising food inflation.

The company has also been active on the mergers and acquisitions (M&A) front. It lobbed a bid for formerly ASX-listed Australian Pharmaceuticals Industries at the end of last year.

After that fell through, Woolies set its sights on a new target. To this end, the supermarket giant is now in the final stages of acquiring an 80% stake in online retail marketplace MyDeal.Com Au Ltd (ASX: MYD).

Notably, its FY22 report will be Woolworths’ first full-year result after spinning off Endeavour at the end of June 2021.

Broker Goldman Sachs is forecasting a final dividend of 57 cents per share. This would take Woolies’ FY22 dividends to 96 cents, putting shares on a dividend yield of 2.4%.

Wesfarmers Ltd (ASX: WES)

Last but not least, ASX 200 conglomerate Wesfarmers will round out the week and release its FY22 results on Friday.

While often put in the same basket, Wesfarmers is distinctly different from Coles and Woolies in that it doesn’t operate a chain of supermarkets.

It instead plays around in the retail space, offering products that are more discretionary in nature through its stable of market-leading brands.

As a result, Wesfarmers is more exposed to inflation and rising living costs compared to supermarkets, which sell essential products.

So it goes without saying that inflation will again be a key theme when Wesfarmers hands in its FY22 report on Friday.

COVID lockdowns also rattled the ASX conglomerate during FY22 due to the non-essential nature of some of its retail stores.

With respect to dividends, broker Morgans anticipates Wesfarmers will declare a final dividend of 85 cents on Friday. This would take Wesfarmers’ total FY22 dividends to $1.65, chalking up a dividend yield of 3.4%.

The post Earnings preview: Here are 3 ASX 200 shares reporting this week appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Monday
• 2 years on, how close is the Flight Centre share price to its pre-COVID levels?
• Is the Wesfarmers share price in the buy zone ahead of next week’s earnings result?
• ASX reporting season weekly wrap: Winners and losers
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Cathryn Goh 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 and Wesfarmers 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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