The Sayona Mining Ltd (ASX: SYA) share price is charging higher on Monday morning.

At the time of writing, the lithium developer’s shares are up a sizeable 16% to 14.5 cents.

Why is the Sayona share price surging higher?

Investors have been bidding the Sayona share price higher this morning following the release of an update on the company’s Moblan Lithium Project in Canada. This follows recent drilling activities at the Quebec based project.

According to the release, multiple new spodumene pegmatites have been identified at the Moblan Lithium Project that provide the means to significantly increase the company’s North American resource base.

Sayona notes that this includes an exciting new and distinct Moblan South Discovery open in all directions located 200m south of the main Moblan deposit.

Furthermore, the drilling has shown that spodumene pegmatites are more significantly developed at depth than can be recognised at surface. Management appears to believe that this indicates the potential for the discovery of multiple pegmatite clusters.

Drilling is continuing with a 20,000m drilling campaign underway as Sayona continues to build on the potential of the new Northern Lithium Hub, which it feels will strengthen its lithium spodumene resource base in North America.

‘Potential to become a world‐class deposit’

Sayona’s Managing Director, Brett Lynch, was pleased with the drilling results. He said:

These latest results are another boost to our emerging northern lithium hub, demonstrating Moblan’s potential to become a world‐class deposit in a proven lithium region.

Moblan adds to our Abitibi lithium hub to the south in giving Sayona a leading lithium resource base in North America, amid continued increases in demand for this key battery metal from the North American EV and battery sector.

The post ‘Potential to become a world-class deposit’: Sayona share price jumps 16% following new lithium discoveries appeared first on The Motley Fool Australia.

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• Sayona share price dives 8% despite lithium news
• Considering investing in Sayona shares? Here’s the latest news from the company
• Is this why ASX lithium shares are being crushed today?
• The Sayona Mining share price has crashed 50% in a month. What’s going on?
• Which ASX lithium shares are producing and which are not?

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The Vulcan Energy Resources Ltd (ASX: VUL) share price has been on a rollercoaster ride in June.

Several macroenvironmental factors such as extreme inflationary movements, aggressive rate hikes, and overall bearish sentiment have impacted global markets.

Nonetheless, the clean lithium developer’s shares finished 26.8% higher to $6.34 at Friday’s closing bell.

The relatively large share price gain came off the back of some heavy losses in the weeks prior.

Below we take a look at the company’s recent performance and compare it to its sector this month.

What’s dragging down Vulcan Energy shares in June?

Investors offloaded the Vulcan Energy share price after Goldman Sachs released a shock analysis of the battery metals market.

The broker forecasted that lithium prices will sink to US$16,000 per tonne sometime in the next year.

Currently, lithium carbonate is fetching around US$71,000 per tonne.

Furthermore, economists from major banks predict that a recession in the United States will happen in early 2023.

This is due to the Federal Reserve’s intention to quickly ramp up interest rates to cool down inflation.

On 10 June, the United States released its consumer price index report. The report indicates that inflation rose 8.6% in May. This is above the 8.3% forecast and is at its highest level in 41 years.

When the central bank tightens up its monetary policy, investors historically jump ship to better risk and reward alternatives.

How does the Vulcan Energy share price compare with its sector in June?

Since the beginning of the month, the Vulcan Energy share price has tumbled 22%.

Notably, the company’s shares hit a 52-week low of $4.76 last Thursday before rebounding sharply the following day.

In contrast, the S&P/ASX 300 Metals and Mining Index (ASX: XMM) fell 0.16% to 5,233.5 points on Friday. This represents a decline of almost 14% in June so far.

Shares in Pilbara Minerals Ltd (ASX: PLS) and Liontown Resources Limited (ASX: LTR) are also down 24% and 31%, respectively.

Based on today’s price, Vulcan Energy commands a market capitalisation of roughly $834.63 billion.

The post How is the Vulcan share price performing against its sector this month? appeared first on The Motley Fool Australia.

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• 3 ASX All Ordinaries shares going gangbusters on Friday
• Why Betmakers, Block, Lake Resources, and Vulcan shares are racing higher
• ASX 200 midday update: Qantas’ market update, lithium shares rebound
• Vulcan share price rockets 25% on Stellantis deal
• Vulcan share price on watch amid landmark $76 million automaker investment

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

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The Dicker Data Ltd (ASX: DDR) share price has been hurt in 2022. It’s down by more than 20% since the beginning of the year.

For readers who haven’t heard of the business, it describes itself as a technology hardware, software, cloud, cybersecurity, access, and surveillance distributor. It sells exclusively to its partner base of 8,200 resellers across Australia and New Zealand.

After the recent decline of the Dicker Data share price, could it actually be an effective pick for dividend income?

A company isn’t necessarily a good income idea just because it pays a dividend. So, let’s look at some of the most recent updates and thoughts regarding the business.

Recent growth

In May, the business gave an update about its 2022 first-quarter numbers.

It said that in the three months to March 2022, its total revenue was $673.6 million, which was up by 50.5% year on year. It also disclosed that profit before tax went up by 22.7% to $23.8 million. Growth can have a material impact on the Dicker Data share price.

Management said that the increase in revenue was partly attributed to a full quarter contribution from the company’s Exceed acquisition, with the rest due to organic growth.

Dicker Data said there has been increased demand for virtual capabilities and accelerated digital transformation across Australia and New Zealand. However, supply chain disruptions have continued and, together with the introduction of its retail business in New Zealand, the gross profit margin finished the quarter lower at 8.6%. However, the full-year margin is expected to be around 9%.

The company is planning for more growth. It’s already in the advanced planning stages for the expansion of its warehouse in Kurnell, Sydney which will support expected growth in the coming years.

Dicker Data has been adding to its count of reseller partners who purchase online. It also said that it’s expecting a “high level of growth” in the adoption of automation, machine learning, and data capture and analysis tools as “businesses and governments prioritise efficiency and productivity within their operations”.

Dicker Data dividend

The company’s current dividend policy is to pay out quarterly. The size of the dividend is 100% of after-tax profit.

Leadership has proposed to increase the full-year dividend by 44% to 54 cents per share.

At the current Dicker Data share price, that equates to a grossed-up dividend yield of 6.8%.

Is the Dicker Data share price a buy?

The broker Morgan Stanley thinks it is, with an ‘overweight’ rating and a price target of $16. That implies a potential upside of around 41%.

The post Does today’s Dicker Data share price make it a good dividend buy? 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 positions in and has recommended Dicker Data Limited. The Motley Fool Australia has positions in and has recommended Dicker Data 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 Metcash Limited (ASX: MTS) share price is on the charge on Monday following the release of the company’s full-year results.

At the time of writing, the wholesale distributor’s shares are up 8% to $4.47.

Metcash share price rises on earnings beat

• FY 2022 group revenue (inc. charge throughs) up 6.4% to $17.4 billion
• Group revenue (ex. charge throughs) up 5.9% to $15.2 billion
• Underlying earnings before interest and tax up 17.7% to $472.3 million
• Underlying net profit after tax up 18.6% to $299.6 million
• Final dividend of 11 cents per share

What happened during the 12 months?

For the 12 months ended 30 April, Metcash delivered a 6.4% increase in top line revenue to $17.4 billion and an impressive 18.6% jump in underlying net profit after tax to $299.6 million.

The latter compares favourably the market consensus estimate to $279 million, which may explain why the Metcash share price is charging higher today.

Management advised that its “outstanding results” represent its proactive response to the significant challenges associated with COVID-19 and the continued execution of its MFuture strategy. The latter is improving the competitiveness of its independent retail networks.

In addition, the Total Tools acquisition in the Hardware pillar had its first full year under Metcash ownership and boosted its earnings growth. This led to the Hardware pillar reporting a 40.7% increase in earnings, which was complemented by a 4.1% lift in Food earnings and a 9.8% jump in Liquor earnings.

Sales update

Also boosting the Metcash share price has been news that FY 2023 has started strongly. During the first seven weeks of FY 2023, Metcash has achieved group sales growth of 8.6%.

This reflects a 5% increase in Food sales, a 19.8% jump in Hardware sales, and an 8.6% lift in Liquor sales.

In respect to food, management advised that supermarkets sales have been strong due to a continuation of the increased momentum experienced in the fourth quarter and higher wholesale price inflation.

As for Hardware, strong demand and global supply chain challenges are continuing to place pressure on the availability of some product categories. However, there continues to be a solid pipeline of residential construction and renovations activity.

Finally, the Liquor business continues to benefit from strong demand across retail stores and a recovery in on-premise sales.

The post Metcash share price storms 8% higher on FY 2022 earnings beat appeared first on The Motley Fool Australia.

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• 5 things to watch on the ASX 200 on Monday
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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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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

The electric vehicle (EV) market has been stumbling as investors shift much of their attention away from growth stocks and look for safer places to put their money.

But avoiding the EV market entirely could be a huge mistake, and ignoring Tesla‘s (NASDAQ: TSLA) lead in the space could be an especially bad decision. Here’s why Tesla’s stock is a buy right now.

Vehicle production and deliveries hit the gas

While younger EV companies are still trying to figure out how to increase their production, Tesla’s production levels are likely causing envy among its smaller competitors.

For example, Tesla produced 305,407 vehicles in the most recent quarter, an increase of 69% from the year-ago quarter. The EV maker is also quickly getting those vehicles into the hands of customers, with deliveries reaching 310,048 in the quarter, up 68% year over year.

Those figures represent record vehicle deliveries and production for the company, and they came at a time when some production was stifled in China because of COVID-19-related lockdowns.

By comparison, Rivian says it will only be able to produce 25,000 electric vehicles this year (down from its previous estimate of 50,000) because of supply chain issues.  And Lucid Group also cut its 2022 production goal from a previous estimate of 20,000 vehicles down to about 13,000 for the same reason.

Some legacy automakers are also finding the transition to making EVs harder than they anticipated as well. Toyota recently recalled its first mass-produced electric vehicles — 2,700 total — less than two months after they launched.

The point here is that while competition is certainly increasing, Tesla has shown that compared to some of its competitors it’s doing a better job with EV production.

Automotive revenue and profit are climbing fast

Tesla’s automotive revenue increased at a rapid pace, reaching $16.9 billion in the first quarter — an 87% year-over-year increase. The increase was due to the company’s stellar vehicle production and delivery growth.

In addition to its sales jump, the company is earning more profit from its vehicles. Automotive gross profit spiked 132% in the first quarter to $5.5 billion.

The result was a record non-GAAP net income for the EV company, surpassing $1 billion for the first time ever in a quarter.

Vehicle production could be even better this year

It would be one thing if Tesla’s stellar quarter was a one-off, but it isn’t. The company believes it has a “reasonable shot” at increasing vehicle production another 60% this year, compared to 2021.

Part of that optimism comes from the fact that the company’s factory in Shanghai is “coming back with a vengeance,” according to Tesla CEO Elon Musk, after COVID-19-related shutdowns curbed production last year.

Additionally, Tesla’s newest factories, in Germany and Texas, only just came online in March and April. Tesla is still overcoming some production hurdles from the two plants, with Musk saying recently that the factories are “losing billions of dollars” right now, due to supply chain issues. But both are expected to significantly increase their production output this year and Tesla hasn’t changed its previous statement of aiming for 60% higher vehicle production this year — which would equal about 1.5 million vehicles.

An EV leader that’s only getting stronger

Like many other stocks during the pandemic, Tesla’s share price surged, only to cool down during a broader market sell-off. The result is an EV leader whose share price is down 38% year to date.

Some of that share price drop comes from Tesla investors worrying that Musk is getting sidetracked by his purchase of Twitter. And while that’s certainly something for Tesla investors to keep an eye on, it doesn’t change the fact that Tesla’s vehicle production is increasing quickly, and revenue and profit are both climbing.

Sure, there could be more share price volatility in the short term. But with Tesla’s early moves in the EV industry already paying off and the company far ahead of younger EV start-ups, its stock could continue to be a great long-term play in the EV space, particularly at today’s bargain price.

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

The post Should You Buy Tesla Stock Right Now? appeared first on The Motley Fool Australia.

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• Here’s what moved Tesla shares today
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• Why Tesla stock soared today
• Should you really buy stocks now or wait a while longer?
• Down 45%, here’s 1 reason to buy Tesla’s dip and 2 reasons to stay away

Chris Neiger 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 Tesla and Twitter. 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.

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

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The volatility we’ve seen on the ASX share market has thrown up a number of interesting investment questions and possible opportunities.

Businesses that have plans to improve their foundations for growth could be opportunities for the long term. While a low price/earnings (P/E) ratio doesn’t automatically mean that a business is good value, when combined with longer-term earnings growth, it could lead to good results over time.

Growing store counts won’t automatically lead to higher revenue and profit, but I think these two ASX shares have plenty of potential at the current levels.

Bapcor Ltd (ASX: BAP)

Bapcor is an auto parts business that operates through a number of different brands including Burson, Autobarn, Autopro, Midas, ABS, Truckline and WANO.

The Bapcor share price has fallen by 15% since the beginning of 2022. That’s despite the business recently saying in a trading update that it had “performed strongly” with “strong market demand”.

In the FY22 third quarter, trade segment revenue rose 5.2% year on year, retail revenue was down 1.6% but online retail sales had jumped 39.7% year on year. Specialist wholesale revenue was up 10.1% year on year.

The ASX share is going to do a number of things to improve its profitability including optimising its pricing, procurement and property management, while also leveraging its end-to-end supply chain advantage.

The business wants to grow its store network from 1,100 to 1,500 locations, while also growing the percentage of sales that are ‘own brand.’

According to Commsec, the Bapcor share price is valued at 16 times FY22’s estimated earnings. I think this is an attractive valuation with the company’s plans to grow its footprint and margins.

Adairs Ltd (ASX: ADH)

Adairs is one of the country’s larger retailers of furniture and homewares. However, it’s a bit smaller after the Adairs share price fell 51% in 2022 to date.

The business sells through three different brands – Adairs, Mocka and Focus on Furniture. The ASX share has plans to grow all three segments. It wants to grow its number of members, grow the store count, increase its online sales and upsize some existing stores.

Adairs recently bought Focus on Furniture, which gives the company an increased exposure to the bulky furniture segment.

I think that the company’s plan to upsize stores is particularly good because it reportedly significantly increases the profitability of that store, with an example being able to display and sell more of its products. Range expansion at all three businesses is also seen as a future growth driver.

The dividend can also be a helpful boost for the returns of Adairs. According to CMC, Adairs could pay a grossed-up dividend yield of 13.7% in FY23.

CMC’s numbers suggest that the Adairs share price is now valued at 7 times FY23’s estimated earnings.

The post Why I think these 2 ASX shares are trading at bargain basement prices appeared first on The Motley Fool Australia.

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• Why did the Adairs share price surge 5% today?
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• Down 20% in a month: Top broker tips 75% upside for the Adairs share price
• Broker tips 2 ASX 200 dividend shares with major upside AND juicy yields

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. The Motley Fool Australia has positions in and has recommended ADAIRS FPO. The Motley Fool Australia has recommended Bapcor. 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 has dropped quite a bit since the beginning of 2022, down by 30%.

However, the company came roaring back on Friday, rising by 8%. With investor sentiment returning (at least temporarily), is the ASX healthcare share an attractive idea?

Pro Medicus is a business that describes itself as a leading healthcare informatics company. It provides a full range of medical imaging software and services to hospitals, imaging centres and healthcare groups worldwide. The company boasts that it offers a comprehensive end-to-end offering.

Ongoing contract wins

While the Pro Medicus share price has been suffering, it has continued to win contracts with clients.

For example, earlier in June, it signed two contracts with a combined minimum value of $47 million. Sutter Health renewed for seven years and WellSpan Health renewed for five years. The contract renewals are transaction-based with potential upside. The renewals were negotiated at an increased fee per transaction.

Pro Medicus’ CEO says its renewal success rate sends a positive message to the market and helps build on its network effect.

At the start of June it also won a seven-year, $28 million contract with Allina Health. Pro Medicus says this continues the company’s rapid expansion into North American integrated delivery networks (IDN).

The Allina Health win was the fifth major contract in the North American IDN space in 18 months. Pro Medicus says that IDNs are important and growing because of the trend towards value-based medicine coupled with industry consolidation.

Strong financials

The company is showing high and increasing levels of profitability.

In the FY22 half-year result, it generated 40.3% growth in underlying revenue to $44.3 million, helping net profit after tax (NPAT) increase by 52.7% to $20.7 million.

Pro Medicus has a high earnings before interest and tax (EBIT) margin of 65%, which means that a lot of revenue turns into profit.

The company is debt free and the business continues to lift its dividend at a fast rate. The HY22 dividend increased by 42.9% to 10 cents per share.

Is the Pro Medicus share price a buy?

The broker Morgans thinks the business offers plenty of upside. It has a buy rating on the Pro Medicus share price, with a target of $56.20. That’s a possible rise of around 30%.

Morgans likes the momentum that the ASX share is achieving and its online offering has attractive strengths compared to its competition. The fact that its clients are organisations rather than households is a useful feature in this high-inflation period.

Citi is ‘neutral’ on the business, with a price target of $46. That implies mid-single-digit potential for the Pro Medicus share price. The broker notes the recent renewals at a better price per transaction as a positive. It thinks the company can keep growing its market share.

Both brokers think the business is valued at around 84x FY23’s estimated earnings.

The post The Pro Medicus share price is down 30% in 2022. Is it a buy? appeared first on The Motley Fool Australia.

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• Here are the top 10 ASX shares today
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 midday update: Block and Zip crash amid market selloff
• Pro Medicus share price tumbles despite $47m contract renewal news
• Dividend beasts: 3 ASX 200 shares that have powered up their dividends over the past 5 years

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 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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At the current Xero Limited (ASX: XRO) share price of around $80, I think Xero looks like a top S&P/ASX 200 Index (ASX: XJO) share idea.

Even at around $90 I think Xero would be a top long-term pick. That would still represent a large decline in 2022, given this ASX 200 share has lost nearly 42% year to date.

There are plenty of ASX tech shares that have compelling business models. But I believe Xero is one of the best.

It’s one of the world’s leading cloud accounting businesses. Xero has a significant presence in New Zealand, Australia and the United Kingdom. The business is also growing in several other countries including the United States, Canada, Singapore and South Africa.

I believe the Xero share price looks like a good opportunity for a number of reasons.

ASX 200 share with global growth

A company that has a large addressable market gives it a significant potential growth runway. Finding businesses that can deliver many years of compounding growth can be beneficial.

Xero has a particularly large addressable market because it’s now in numerous countries. And it’s growing its subscriber numbers at an attractive rate.

In FY22, the ASX 200 tech share grew its total subscribers by 19% to 3.3 million. That helped operating revenue rise by 29% to $1.1 billion. It achieved 24% revenue growth, excluding acquisitions.

While I’d need a crystal ball to know how long Xero can grow at a double-digit rate, I think it’s a very positive sign that its oldest market – New Zealand – is still growing at a decent rate. In FY22, New Zealand’s subscribers grew by 15% to 512,000.

The platform nature of its business model is attractive for different users to connect, in my opinion, including business owners, employees, accountants, external application providers and so on.

I think the global growth will be helpful for the Xero share price over the long term.

Strong SaaS metrics

As a software-as-a-service business (SaaS), Xero receives monthly cash flow from its subscriber base. It has a very high customer retention rate. In FY22, it only lost around 0.9% of its subscribers, meaning it kept more than 99%.

The high level of customer loyalty allows it to implement price increases without losing many customers.

In FY22, the ASX 200 tech share reported that the average revenue per user (ARPU) went up 7% to $31.36. This helped annualised monthly recurring revenue (AMRR) go up 28% to $1.23 billion. Thanks to the low churn, ARPU growth and total subscriber growth, the total lifetime value of subscribers increased by 43% to $10.9 billion.

I think these metrics are very beneficial for the company’s long-term prospects as it invests to grow its number of subscribers around the world.

High gross profit margin

Xero had a very high gross profit margin of 87.3% in FY22. This was an increase from 86% in FY21.

This high margin allows Xero to re-invest most of the new revenue back into the business. For example, in FY22 it grew its overall sales and marketing costs by 32% to $405.7 million, which has helped subscriber additions and brand awareness.

Meanwhile, the ASX 200 tech share grew its product design and development expenses by 49% to $372 million. Examples of focus include production localisation in a number of international markets and future innovation areas such as platform, ecosystem and integration of acquisitions.

Xero says that it will continue to focus on growing its global small business platform and maintain a preference for re-investing cash generated to drive long-term shareholder value, which could be helpful for the Xero share price.

The post Here’s what I consider to be the very best ASX 200 share to buy in July appeared first on The Motley Fool Australia.

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• ‘Price makers’: 3 ASX 200 shares that can pass on rising costs in an inflationary environment
• Why is Goldman Sachs tipping 50% upside for the Xero share price?
• 2 ASX tech shares Goldman Sachs rates as buys
• Is it time to go bargain hunting for ASX shares?

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

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ASX travel shares might be an exciting sector in which to look for opportunities with travel returning, according to experts.

COVID-19 has had a huge impact on the travel sector over the past two and a half years. But now things are returning somewhat to normal – borders are opening, planes are in the air and so on.

Experts have named two shares that could fly higher with significant upside. While one expert’s opinion doesn’t automatically mean a share will do well, it could be worth paying attention.

Having said that, here are two buy-rated ASX travel shares.

Corporate Travel Management Ltd (ASX: CTD)

Corporate Travel Management is one of the world’s largest corporate travel operators.

It’s currently rated as a buy by the broker Macquarie, with a price target of $25.80. That suggests a possible rise of around 40% over the next year as the company sees a return to almost pre-COVID levels.

In terms of activity, Corporate Travel gave an investor update last month which showed total transaction value (TTV) had recovered to 70% of 2019 levels in North America, 86% in Europe, and 71% in Australia and New Zealand.

However, the company expects monthly revenue to surpass 2019 calendar year levels in the fourth quarter of FY22. It’s targeting $265 million of earnings before interest, tax, depreciation and amortisation (EBITDA) when things are 100% recovered.

The business claims it’s recovering faster than the corporate travel sector in its largest regions, with “strong” market share gains in all regions. Management boasts that its value proposition, global scale and financial strength are all relevant during this COVID recovery period. It currently has zero debt.

Macquarie puts the current Corporate Travel share price at 20x FY23’s estimated earnings.

Webjet Limited (ASX: WEB)

Webjet is another ASX travel share that has a large presence in the corporate travel world with its WebBeds division. It also has its online travel agency (OTA) business.

Webjet is currently rated as a buy by the broker Citi, with a price target of $6.94. That suggests a possible rise of around 30% in the next year.

Citi thinks the Webjet setup will allow it to perform well in the coming years and that WebBeds can perform.

Last month, the business reported its FY22 result. It says it returned to profitability in the second half of FY22, delivering positive cash flow. The company says its working capital continues to improve, with a cash surplus of $4 million per month.

Furthermore, Webjet says it has seen a strong start to FY23, with all businesses profitable in April and indications of a “further strong uplift in May”. In May 2022, WebBeds’ total transaction value was ahead of May 2019, while Webjet OTA bookings were tracking at 80% of pre-pandemic levels.

Management sees “significant growth opportunities in all businesses as global travel markets reopen”.

WebBeds’ costs are more than 20% lower than pre-pandemic levels, despite global wage pressures, which will help its profitability margins as the company fully recovers.

The post 2 ASX travel shares buy-rated by experts that could take off appeared first on The Motley Fool Australia.

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More reading

• When might Corporate Travel shares start paying dividends again?
• Why is the Webjet share price tailgating the ASX 200 today?
• Analysts name 2 top ASX 200 shares to buy today
• ASX 200 travel shares take off again on Tuesday. Here’s why
• Why are ASX 200 travel shares lifting off on Monday?

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 recommended Corporate Travel Management Limited, Macquarie 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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ASX shares exploring for and producing rare earths have delivered some of the best gains on the index over the past 12 months.

The miners have received some healthy tailwinds as the West moves to secure supplies of the diverse range of metals outside of China. To give you some context, in 2020 China was responsible for around 60% of global rare earths production.

The Australian Federal Government lists rare earths among its critical mineral designation.

According to the government website:

A critical mineral is a metallic or non-metallic element that has two characteristics:
1. It is essential for the functioning of our modern technologies, economies or national security and
2. There is a risk that its supply chains could be disrupted.

The government reports that Australia has a high geological potential for rare earths with a 2020 Economic Demonstrated Resource of 4.2 million tonnes. In 2020 Australia produced 20,000 tonnes of rare earths out of a total global production of 240,000 tonnes.

Below, we look at three of the bigger ASX shares hunting for and digging up rare earths.

But first…

What are rare earth elements?

Taking the broader definition, there are 17 different rare earth elements, with exotic (and hard to spell) names like praseodymium and ytterbium.

While rare earths are actually found in abundance, they’re also generally found in very limited concentrations. That means miners need to do a lot of digging and sorting before extracting the valuable metals.

Rare earths’ unique electronic and magnetic properties make them indispensable in developing many of today’s technologies. Technologies like satellites, computers, smartphones, lasers, electric motors, and a wide range of military tech, from submarines to aircraft.

Hence the critical minerals designation.

So, which three ASX shares are producing rare earths?

Three ASX shares cashing in on rare earths

Starting with a mid-cap stock, we have Arafura Resources Limited (ASX: ARU), which has a market cap of $420 million.

Arafura’s flagship Nolans Project is located in the Northern Territory. According to the company, the project (under development) has the potential to supply “a significant proportion” of the world’s neodymium and praseodymium (NdPr) demand.

The company received a welcome boost last month when it announced an offtake agreement with global vehicle manufacturer Hyundai Motor Company.

The Arafura share price is up 119% over the past 12 months. That compares to an 11% loss posted by the All Ords over that same time.

Moving on to the second ASX share cashing in on rare earths we have Iluka Resources Limited (ASX: ILU), with a market cap of $3.7 billion.

Iluka prospects globally for rare earths, with projects across Australia and in Sierra Leone. It is currently developing its Eneabba rare earths refinery in Western Australia. The company expects construction to commence in the second half of 2022, with the first rare earth production slated for 2025.

The Iluka share price is up 10% over the past 12 months.

This brings us to our third, and biggest, ASX share in the rare earths space, Lynas Rare Earths Ltd (ASX: LYC), with a market cap of $7.6 billion.

Headquartered in Perth, Lynas is the world’s second-largest producer of rare earths. It is currently the only significant producer outside of China.

The ASX share operates in Australia and Malaysia. Its Australian concentration plant is located at Mt Weld, Western Australia. Additionally, it has an advanced materials plant in The Gebeng Industrial Park in Malaysia.

The Lynas share price is up 57% since this time last year.

You can find out which ASX shares are cashing in on cobalt, lithium and vanadium in more of our ‘Mineral Monday’ series.

The post Mineral Monday: What you need to know about rare earths and which ASX shares are cashing in on them appeared first on The Motley Fool Australia.

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More reading

• Guess which ASX 200 mining shares these experts are backing
• Here’s why analysts rate these ASX 200 mining shares as buys
• How is the Lynas share price performing against its sector this month?
• Iluka share price lifts off on rare earths refinery progress
• Top brokers name 3 ASX shares to buy 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 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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