Everyone has an opinion on ASX shares. Some businesses have attracted mixed reviews, while a select number are widely liked by brokers at the moment.

It may be worth paying attention when many experts all think that a business is a buy at the same time.

That level of support could suggest that the ASX share is an obvious buy. Of course, there’s also a chance they’re all wrong at the same time.

With that in mind, these two ASX shares are highly-rated right now.

Tyro Payments Ltd (ASX: TYR)

Tyro Payments describes itself as a “technology-focused” company providing Australian businesses with payment solutions and value-adding banking products. Its aim is to provide simple, flexible, and reliable payment solutions as a merchant acquirer.

At 31 December 2021, it had more than 61,500 Australian merchants using its services.

In the financial year to 17 June, Tyro reports it has processed $32.75 billion of payments for clients – this is a 35% rise year over year.

At least five brokers rate it a buy including Ord Minnett. The broker has a price target of $3 on the ASX share, implying a possible rise of around 250% over the next year.

Ord Minnett points to downloads for apps and active user numbers implying good news for Tyro’s outlook. Winning merchants can help growth in the longer term.

Looking at the FY22 half-year report, Tyro generated revenue growth of 36% to $146 million, with statutory gross profit rising 25% to $68.1 million.

However, it made $2.8 million in earnings before interest, tax, depreciation, and amortisation (EBITDA) — down from $8.5 million – reflecting deferral of annual merchant pricing adjustments and no JobKeeper payments.

Goodman Group (ASX: GMG)

Goodman is a large industrial property business that builds, owns, and manages real estate around the world.

At least four brokers rate this ASX share a buy including Morgan Stanley. The broker’s price target of $25.98 suggests an upside of around 50%.

The broker likes the company’s rental growth as well as its development projects.

Goodman says that as of 31 March 2022, it has $13.4 billion of development work in progress (WIP) across 89 projects. The forecast yield on cost is expected to be 6.5%. Construction costs are increasing globally, but it has delivered increased productivity and value from its sites and development execution.

Goodman also reported 3.7% growth year over year for like-for-like net property income (NPI) through its managed partnerships. Goodman’s occupancy rate across the partnerships was 98.7%.

In the quarterly update, Goodman said:

Tight supply and demand continues to support leasing across our stabilised portfolio and developments, with high occupancy in our markets. The group’s capital position remains sound.

The post 2 ASX shares rated as strong buys by several brokers appeared first on The Motley Fool Australia.

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More reading

• Why I would invest $10,000 in these 3 ASX shares
• Buy these 2 quality ASX 200 shares: broker
• Market selloff: Broker says the Goodman share price now has 65% upside potential
• ‘Attractive, stable’: 2 ASX shares other companies rely on
• Experts name 2 excellent blue chip ASX 200 shares to buy

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 positions in and has recommended Tyro Payments. The Motley Fool Australia has recommended Tyro Payments. 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 been pushed lower by the market this year. But, could the lithium miner actually be a smart investment at these prices?

To put it into context, the Pilbara Minerals share price has dropped by around 42% since the beginning of 2022. However, despite that large decline, Pilbara shares are still up around 50% over the past 12 months.

Like many other ASX growth shares, Pilbara Minerals shares have dropped over the last few months as investors grapple with rising inflation and the steps that central banks are taking to try to bring it under control.

What’s the latest from Pilbara Minerals?

Commodity prices are an important part of the picture for resource companies. They heavily influence how much revenue (and therefore profit) a commodity business can make.

Pilbara Minerals recently announced the result of its fifth Battery Material Exchange (BMX) spodumene concentrate digital auction.

Pilbara presented a cargo of 5,000 dmt at a target grade of around 5.5% lithia for sale on the platform.

The company noted “strong interest” in both participation and bidding by a “broad” range of players.

It said that it intended to accept the highest bid of US$5,955 per dry metric tonne. On a pro-rata basis for lithia content, this equated to a price of approximately US$6,586 per dry metric tonne.

The company also recently announced that key commercial terms had been agreed upon for a joint venture with Calix Ltd (ASX: CXL). This followed the award of a A$20 million Federal Government grant as part of the modern manufacturing initiative. This is for the future development of a demonstration plant, as well as the potential future commercialisation of the mid-stream project process.

The company also announced at the start of June 2022 that Dale Henderson would be the company’s new managing director and CEO. He had been the chief operating officer since 2017.

What do brokers think of the Pilbara Minerals share price?

Top broker Macquarie currently rates Pilbara Minerals as a buy with a share price target of $4. That implies a possible rise of almost 100%.

Macquarie values the Pilbara Minerals share price below 6x FY23’s estimated earnings.

Citi is another broker that rates the Pilbara Minerals a buy with a price target of $3.60. That implies a possible rise of around 75% over the next year. The broker likes the business amid the strength of the lithium price.

Ord Minnett is a third broker that rates Pilbara Minerals as a buy with a share price target of $4.25. That implies a possible rise of around 110%. The broker noted that Pilbara’s operations have been hit by COVID-19. However, the strength in lithium prices is keeping it interested in the business.

The post Is the Pilbara Minerals share price about to recharge? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Monday
• Mineral Monday: What you need to know about lithium and which ASX shares are cashing in on it
• Here are the 3 most heavily traded ASX 200 shares on Friday
• Why I think the Pilbara Minerals share price is currently undervalued
• Here are the 3 most heavily traded ASX 200 shares on Thursday

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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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After so many days to forget in 2022, the PointsBet Holdings Ltd (ASX: PBH) share price finally had a day to remember on Monday.

The sports betting company’s shares jumped over 18% to $2.55.

This followed news that SIG Sports Investment Corp (SIG) has injected $94.16 million into PointsBet through a placement of shares at a premium of $2.43 per share.

What has been the reaction?

Analysts at Goldman Sachs have been looking over the deal and appear to see long-term positives from it. They also note that the cash injection should remove any balance sheet or cash burn concerns.

It commented:

While we make no earnings changes as we await completion of the placement (on or around June 23), on balance we see strategic merit in today’s events for PBH given the addition of a long-term strategic investor (with voluntary lock up period) to its register and the potential operating upside from further widening its margin/tech gap to peers through its partnership with Nellie Analytics.

Additionally, this should now allay any market concerns around PBH’s balance sheet/cash burn profile. We note the placement represents a premium to the 5-day VWAP and there continues to be M&A interest in PBH.

Outside this, the broker advised that its research indicates that industry marketing activities in the United States have been rationalising. Which, once again, should ease cash burn concerns.

Goldman explained:

Finally we note the feedback from our recent Americas Leisure conference continues to point to a rational US OSB marketing environment, with peers recently reiterating LT targets (between mid to high teen EBITDA margins to as high as 37%) and still strong demand despite the reopening. Looking ahead we continue to expect a further 4 state launches in the US by PBH this CY, bringing exposure to 14 states plus Ontario.

Is the PointsBet share price good value?

Despite yesterday’s strong gain, Goldman Sachs believes the PointsBet share price can still double from current levels over the next 12 months.

Its analysts have a buy rating and $5.78 price target on the company’s shares. This implies potential upside of 126% for investors.

The post Broker still sees over 100% upside for the PointsBet share price appeared first on The Motley Fool Australia.

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More reading

• Why Appen, Infomedia, PointsBet, and Vicinity shares are storming higher
• ASX 200 midday update: PointsBet jumps, energy shares sink, Vicinity’s upgrade
• PointsBet share price jumps 15% on SIG investment and bonus options news
• Own Pointsbet shares? Here’s why the company rebuffed a Murdoch takeover approach
• Why BHP, Block, Harvey Norman, and PointsBet shares are sinking

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 Pointsbet Holdings Ltd. 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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While past performance is no indicator of future potential, it is often comforting to know that a particular business has a culture of building success and a knowledgeable management team.

And this assurance has never been more critical than right now, when all sorts of economic headwinds are buffeting all ASX shares.

Ord Minnett senior investment advisor Tony Paterno picked out a couple of such examples to buy this week:

A potential market-breaking product

Macquarie Group Ltd (ASX: MQG) briefly became one of the four biggest banks in Australia last year when the share price sailed above $200.

But after the close of market on Monday, it sat at $161.50 after falling 21.3% year-to-date.

For Paterno this is a nice buy-the-dip opportunity, as the banking giant has a potentially massive product release coming.

“This diversified financial services group plans to increase the interest rate it pays on everyday transaction accounts to 1.50%, a premium of 145 basis points to the average market rate,” he told The Bull.

“After disrupting the home loan market in recent years, this could have an impact on the deposit market if it gains traction.”

Another tailwind is that this month the bank may need to reportedly buy some of its own shares to fulfil its employee bonus commitments.

The professional community is mostly bullish on Macquarie shares, with CMC Markets showing nine out of 15 analysts rating them as a strong buy.

Macquarie, dubbed “the Millionaires’ Factory” for the way it rewards its staff, has also made many investors rich over the years. The stock is up almost 80% over the past five years and about 540% over the last decade.

Ready to get rich with these guys again?

Another ASX share that’s handsomely rewarded investors over the long term is real estate classifieds site REA Group Limited (ASX: REA).

The stock price is up a stunning 629% over the past 10 years, despite almost halving this year.

According to Paterno, it’s time to take a look at REA shares again as the company is targeting double-digit revenue and earnings growth.

“This will require higher investment spending,” he said.

“Capital expenditure guidance was increased to between 7% and 9% of sales. The historical average is between 6% and 8%.”

With property prices falling in Australia, he admitted it does face challenges in the short term.

“In our view, listing headwinds are likely to persist, although double-digit yield growth should act as a key offset.”

A Market Matters report earlier this month identified REA as one of the stocks to pick up for cheap after end-of-financial-year tax-loss selling.

“This is a quality, almost monopolistic-style business with some useful pricing power, but it currently is in the wrong place at the wrong time.”

The post 2 powerhouse ASX shares going for dirt cheap right now: expert appeared first on The Motley Fool Australia.

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More reading

• Top broker tips 30% upside for the Macquarie share price
• Why has the REA share price crashed by 40% in 2022?
• Why Macquarie shares could be set for a $570m tailwind
• 2 blue chip ASX 200 shares that Goldman Sachs rates as buys
• 3 ASX shares to pounce on after tax-loss selling: report

Motley Fool contributor Tony Yoo has positions in Macquarie Group 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 recommended Macquarie Group Limited and REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you looking for dividend shares to add to your income portfolio this week? If you are, then the two listed below could be worth considering.

Here’s what you need to know about these buy-rated dividend shares:

Mineral Resources Limited (ASX: MIN)

The first ASX dividend share to look at is Mineral Resources. It is a mining and mining services company with exposure to two in-demand commodities – iron ore and lithium.

It is because of this exposure and its production growth plans that Goldman Sachs is very bullish on Mineral Resources. It currently has a buy rating and $73.00 price target.

Goldman is forecasting the “more than doubling of group EBITDA to over A$2bn in FY23 driven by higher lithium and low grade iron ore prices, and a 5% increase to mining services volumes to ~300Mt.”

In respect to dividends, Goldman expects this to lead to fully franked dividends of 64 cents per share in FY 2022 and then 244 cents per share in FY 2023. Based on the latest Mineral Resources share price of $48.31, this will mean yields of 1.3% and 5%, respectively.

Wesfarmers Ltd (ASX: WES)

Another ASX dividend share that could be in the buy zone is Wesfarmers. It is the conglomerate behind businesses including Bunnings, Catch, Covalent Lithium, Kmart, Officeworks, and Priceline.

Its shares have been hit hard this year amid concerns that rising inflation and interest rates could impact consumer spending. However, the team at Morgans aren’t concerned and recently reiterated their add rating and $58.40 price target on its shares.

Its analysts believe Wesfarmers’ Kmart business is well-placed in the current environment. They explained:

With value expected to become increasingly important, we think Kmart is well-placed to benefit with the average price of an item at around $6-7.

As for dividends, the broker is forecasting a fully franked dividend of $1.65 per share in FY 2022 and then a $1.81 per share dividend in FY 2023. Based on the current Wesfarmers share price of $42.40, this equates to yields of 3.9% and 4.25%, respectively, over the next two financial years.

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

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More reading

• Why is the Wesfarmers share price having such a stellar start to the week?
• Mineral Monday: What you need to know about lithium and which ASX shares are cashing in on it
• Morgans tips 40% upside for the Wesfarmers share price
• Why I think these 2 ASX 200 dividend shares offer great buying right now
• 2 ASX companies busted for sneaky facial recognition on customers

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 positions in and has recommended 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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In uncertain times with interest rates rising, rampant inflation and a recession threatening, it might be a prudent idea to turn to quality ASX shares.

Quality can be defined in different ways though.

It could mean that the company is a leader in its field. It could be that the business is profitable and runs with plenty of cash.

Baker Young managed portfolio analyst Toby Grimm this week nominated a couple of examples of these quality ASX stocks that are worth buying:

‘Oversold’ stock that’s a ‘global leader’

Shareholders for construction materials supplier James Hardie Industries plc (ASX: JHX) have watched in horror as the stock price halved this year.

“The stock has materially underperformed in 2022 compared to domestic peers that have been favoured on a relatively stronger outlook,” Grimm told The Bull.

But considering the company’s strong position in its industry, he reckons this presents a golden buying opportunity.

“We believe the shares have been oversold, and price weakness provides an opportunity to gain exposure to a global leader at relatively attractive prices.”

Grimm is not the only one thinking James Hardie shares are a bargain.

According to CMC Markets, a stunning 10 out of 14 analysts rate the stock as a strong buy. Two of the remaining four reckon James Hardie’s a moderate buy.

“It’s fallen far enough now that, particularly in that growth part of the market for a business of that quality, it looks good value,” Sage Capital portfolio manager Sean Fenton told Livewire last week.

‘Appealing value at current levels’

Despite worries about an economic downturn, gaming manufacturer Aristocrat Leisure Limited (ASX: ALL) seems to be a favourite among analysts at the moment.

And Grimm is no exception, saying its interim result was “above expectations”.

“Operating revenue of $2.745 billion for the six months to March 31, 2022, was up 23.1% on the prior corresponding period,” he said.

“Net profit after tax [NPAT] of $530.7 million was up 46.5%.”

The stock has discounted almost 28% since the start of the year, which adds to the appeal for Grimm.

“A strong balance sheet underpins share buy-backs in a company we believe offers appealing value at current levels.”

Among those who agree with Grimm are T Rowe Price Group Inc (NASDAQ: TROW) head of Australian equities Randal Jenneke and Morgans advisor Jabin Hallihan.

“We’re forecasting 16% growth in earnings before interest, taxes and amortisation in the coming year,” said Hallihan.

“The slot machine maker remains a high-quality growth business with long-term opportunities.”

The post ‘Global leader at attractive prices’: expert names 2 ASX shares to buy now appeared first on The Motley Fool Australia.

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More reading

• Experts name 3 ASX growth shares to buy with enormous upside potential
• 2 ASX shares to benefit from strong US dollar: expert
• 2 ASX tech shares brokers rate as buys this month
• Why the James Hardie share price has ‘fallen far enough’: fundie
• 3 ASX shares to buy for scary times: experts

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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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, U Ethical chief investment officer Jon Fernie picks three ASX shares that will play great defence and are ethical to boot.

Investment style

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

Jon Fernie: We’ve got the U Ethical Australian Equity Trust — they’re style agnostic funds and managed to provide investors with capital growth and income. And we integrate ESG and ethical considerations and fundamental analysis. 

We’re mainly invested in large-cap stocks and believe that investing in quality ethical companies with reasonable valuations will deliver competitive returns over the longer term. 

Probably the other thing to add is, as an ethical fund manager, we screen out stocks which we view as harmful to society in the environment. Then we also look to hold stocks that have a positive impact and also take an active stewardship approach through proxy voting engagement with companies and also industry collaborations.

MF: Do you think the recent power crisis in eastern Australia has acted as a bit of a wake-up call for the underinvestment in renewables?

JF: Yeah, definitely. You can see that there’s not just what’s happened within Australia, but obviously more broadly on a global scale with the conflict in the Ukraine, and you can see the dependency on fossil fuels in Europe. That probably highlighted the need for energy independence, but also that transition to renewable assets.

Hottest ASX shares

MF: What are the three best ASX share buys right now?

JF: The first one that we highlight is Brambles Limited (ASX: BXB). We see this logistics business as well managed with relatively defensive earnings. They’ve got a leading market position globally and trade on reasonable multiples. 

I think the market’s a bit concerned about a plastic pallets trial that they’re doing with Costco Wholesale Corporation (NASDAQ: COST), and we think that’s a bit overdone. 

Positively, we’ve seen a significant drop in lumber prices, which is a key input for them, and the stock’s also potentially a takeover target and has had some preliminary discussions with a suitor.

MF: It’s held its value pretty well this year, hasn’t it?

JF: It has, partly because of the rumours, and it’s not as down as significantly as some other stocks in the market, but it’s still, over the last 12 months, down circa 10%. 

MF: I didn’t realise until you mentioned it just now that lumber prices are actually down. It must be the only commodity that’s down this year.

JF: Yeah. They’ve come off significantly.

MF: Why is that? Is there an oversupply?

JF: Yeah. I think that there’s… concerns with housing in the US, and that’s a key driver of lumber prices.

MF: And the second-best buy?

JF: Second one is Suncorp Group Ltd (ASX: SUN). We continue to like the general insurers at the moment. We’ve obviously seen a big spike in terms of longer term bond yields, and they’re going to be key beneficiaries of that, given their investment portfolios. 

While claims inflation is likely to remain high, they’ve also seen really strong premium rate increases across most categories. And if you take a stock such as Suncorp, they’re now trading on a forward dividend yield of close to 6%.

MF: 6%? Wow, that’s not bad. The insurance sector loves it when interest rates go up, doesn’t it?

JF: Yeah, they’re pretty leveraged to the rise in interest rates, given their investment portfolios.

MF: Your third pick?

JF: The third one is Sonic Healthcare Limited (ASX: SHL). So a well-run business with diverse global operations and it hasn’t been sold off as dramatically as some other stocks in the market — off [about] 10% in the last month.

And we’re going to see their earnings normalised [after the company] benefited a lot from the COVID PCR testing, and that’s going to drop off. But we’re also going to see an improvement in their core business volumes and think that, generally, their earnings are going to be pretty resilient if we see a weaker global economy.

MF: I see that one’s also a dividend payer as well.

JF: Yeah. But they’re not quite as attractive as Suncorp’s — their dividend yield is just below 4% at the moment.

The post 3 dividend-paying and ethical ASX shares to buy now: fund manager appeared first on The Motley Fool Australia.

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• Leading brokers name 3 ASX shares to buy today
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• Buy these 2 quality ASX 200 shares: broker
• Why I think the Sonic Healthcare share price is a buy
• I’d invest $5,000 into these excellent ASX shares for the long term

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 positions in and has recommended Costco Wholesale. The Motley Fool Australia has recommended Sonic Healthcare 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a day in the red. The benchmark index fell 0.65% to 6,433.4 points.

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

ASX 200 expected to rebound

The Australian share market looks set for a better day on Tuesday following a strong start to the week in Europe. According to the latest SPI futures, the ASX 200 is poised to open the day 48 points or 0.75% higher. Wall Street was closed for the Juneteenth public holiday, but the DAX rose 1.05% and London’s FTSE climbed 1.5%.

Altium rated as a buy

The Altium Limited (ASX: ALU) share price could be good value according to analysts at Bell Potter. This morning the broker retained its buy rating but trimmed its price target down to $34.00. Bell Potter has suggested that Altium would know by now if it were going to miss its guidance for the full year. Therefore, its analysts believe that “no new is good news” for investors.

Oil prices push higher

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) could have a decent day after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 0.65% to US$110.27 a barrel and the Brent crude oil price has risen 1% to US$114.21 a barrel. Traders were buying oil again after a sharp decline over recent sessions amid demand concerns.

Gold price flat

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued day after the gold price traded broadly flat overnight. According to CNBC, the spot gold price is up 0.05% to US$1,840.7 an ounce. A strong US dollar is weighing on the safe haven asset.

Premier Investments goes ex-dividend

The Premier Investments Limited (ASX: PMV) share price could trade lower on Tuesday. This is because the retail conglomerate’s shares are due to trade ex-dividend for its upcoming interim dividend. Shareholders can now look forward to receiving the Smiggle owner’s 46 cents per share fully franked dividend on 27 July.

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

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium. The Motley Fool Australia has recommended Premier Investments 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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If you’re looking to take advantage of the weakness in the tech sector in 2022, then you may want to look at the two ASX tech shares listed below.

These shares have been given buy ratings by the team at Goldman Sachs. Here’s why it rates them highly:

Nitro Software Ltd (ASX: NTO)

The first ASX tech share to look at is Nitro Software. It is aiming to drive digital transformation in organisations around the world with its Nitro Productivity Suite.

Nitro’s suite provides integrated PDF productivity and electronic signature tools to customers through a horizontal, software-as-a-service, and desktop-based software solution.

Goldman Sachs is a big fan of Nitro. It currently has a buy rating and $2.35 price target on its shares. This is based on the broker’s belief that it can grow materially over the next couple of decades.

It commented: “We estimate Nitro can increase its TAM penetration from 0.15% to 1.4% by FY40 implying 9x uplift to Nitro’s current revenue base.”

Xero Limited (ASX: XRO)

Another ASX tech share that Goldman Sachs is very bullish on is Xero.

Xero is a provider of a cloud-based business and accounting solution to small and medium sized businesses. It has a strong position in the ANZ and UK markets and a growing presence in other markets including the United States.

The company has been growing strongly over the last few years and has been tipped to continue this trend in the coming years by Goldman. This is being supported by its international expansion, acquisitions, the transition to the cloud, price increases, and its burgeoning app ecosystem.

Goldman currently has a buy rating and $118.00 price target on Xero’s shares.

Its analysts are forecasting a 26% increase in revenue to NZ1,387.1 million in FY 2023. After which, it expects revenue to grow to NZ$1,680.2 million in FY 2024 and then NZ$1,975.8 million in FY 2025.

The post 2 ASX tech shares Goldman Sachs rates as buys appeared first on The Motley Fool Australia.

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More reading

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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 positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Nitro Software 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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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 stock market’s recent rout has distracted investors from taking note of some of the big cultural and technological megatrends. But those trends are still underway, translating into opportunities for investors who can look past all the noise.

One compelling megatrend to plug into is the metaverse. It’s a market that Bloomberg Intelligence estimates will grow at an average annual pace of 13% through 2024, when it will be worth nearly $800 billion.

Let’s take a closer look at three beaten-down names with at least a small stake in the metaverse arena. These small stakes, of course, can evolve into major profit centers as the metaverse market matures.

1. Nvidia

You most likely know Nvidia (NASDAQ: NVDA) as a maker of graphics processors used to connect a computer to a computer screen. The same tech also powers a bunch of artificial intelligence initiatives. But the metaverse? What can this company do to help build the world’s virtual meeting places?

It’s actually a pretty intuitive fit. A functioning virtual world doesn’t just require a network of computers — the metaverse is first and foremost a visual connection among metaverse users. To be effective, this world must be able to instantaneously deliver computer-based imagery to a set of goggles worn by a user. Nvidia’s graphics card expertise is perfectly suited for the task.

In fact, it already has a program for it. It’s called Omniverse. Introduced in late 2020 and well supported with additional tools aimed at engineers released in the meantime, the company calls Omniverse an “easily extensible platform for 3D design collaboration and scalable multi-GPU, real-time, true-to-reality simulation.”

In other words, if you want to build virtual world, you can use Omniverse to do it.

Omniverse is meant to be more collaborative than fun, and work more as a training and/or prototyping tool. Its earliest adopters being companies looking to design a virtual product or process rather than risk valuable resources only to end up with a not-quite-right outcome. There’s nothing to say, however, the tech can’t be expanded on and serve more entertainment-oriented uses.

It’s a minimal part of Nvidia’s revenue mix right now — so small the company doesn’t even break the numbers out, instead lumping it into its data center results. In this light, Nvidia doesn’t fully qualify as a metaverse stock. 

That’s changing pretty quickly though. In January, Nvidia announced Meta Platforms (NASDAQ: META) — the company formerly known as Facebook as well as the company arguably leading the metaverse charge — is buying 16,000 Nvidia-made A100 processors designed from the ground up to handle artificial intelligence workloads. Much of Meta’s intended workload will be building its own metaverse platform, underscoring the idea that Nvidia is becoming a serious metaverse name. In the meantime, reliable revenue from all of its other established businesses like data centers, video gaming, and professional visualizations means the company’s metaverse efforts don’t have to be rushed. It’s these other businesses, in fact, that are apt to help Nvidia shares reverse their current downtrend sooner than later.

2. Microsoft

Nvidia isn’t the only metaverse stock on the defensive here. Microsoft‘s (NASDAQ: MSFT) stock price is down 27% year to date, ushered lower by the broad market’s bearish tide. Once investors realize this company’s sales are still expected to grow 18% this year and 14% next year (because the world’s not ready to give up its computers or the software they run), however, the pullback could be mentally reframed as a buying opportunity. 

Microsoft’s entry into the metaverse race is similar to Nvidia’s, although not identical. Whereas Nvidia’s Omniverse is largely a developmental platform, Microsoft Mesh is a turn-key product meant to let users of Microsoft Teams meet with one another virtually. Mesh can help co-workers collaborate on product design, but the company says its chief goal is facilitating “eye contact, facial expressions, and gestures so your personality shines.” The company is building the user tech needed to make the most of Mesh as well. Its HoloLens is a pair of augmented reality glasses rather than full-blown immersive goggles, meant to help team members simultaneously see and discuss manufacturing, engineering, and even healthcare matters. 

Mesh and HoloLens are currently aimed at businesses rather than individual consumers, although it’s not inconceivable this underlying tech could eventually make its way into consumers’ hands so as to expand its use case. Microsoft’s newer Xbox gaming consoles are already capable of delivering a virtual reality experience with third-party VR goggles. Connecting the two different platforms into a metaverse-minded offering would be a relatively short leap.

Like Nvidia, Microsoft’s current metaverse revenue is so modest that it’s not even detailed within its quarterly reports. Also like Nvidia, however, that’s not necessarily a bad thing. The company’s software and cloud computing profits are poised to spark a rebound rally well before Microsoft’s metaverse initiatives start to bear meaningful fruit.

3. Matterport

Finally, add Matterport (NASDAQ: MTTR) to your list of metaverse stocks primed for a bull run after a sizable setback.

Matterport isn’t a household name. Indeed, with a market cap of only around $1 billion, it’s likely many consumers haven’t even heard of it. Of the three names in focus here, however, it’s by far the purest metaverse play.

In simplest terms, Matterport makes 3D cameras and related equipment, including the software and online storage needed to get the most out of its hardware. Its strong suit is turning real indoor spaces into digital rooms that can be virtually, remotely explored. That’s why the real estate industry has wholeheartedly embraced the technology — would-be homebuyers can look at a home without actually being there. The potential uses of its solutions, however, are almost limitless. Retailers, insurers, and even architects and engineers are finding that its know-how can make tasks much easier to complete remotely.

While it’s one of the few pure metaverse plays out there, know that it’s also a riskier prospect than Microsoft or Nvidia. Namely, Matterport is still unprofitable. It’s improving in this regard: Revenue is expected to grow by 15% this year before accelerating to the tune of 41%, which should improve this year’s loss of $0.49 to a lesser loss of $0.37 in 2023. Any company still suffering losses 10 years into its existence, however, is a name to keep on a short leash; this may be a big reason shares were so easily upended when stocks as a whole started to tank early this year.

It’s just got too much upside potential to ignore after its recent pullback, though, with analysts collectively more bullish than not on it, and saying on average that it’s worth $9 per share. That’s more than twice the stock’s current price of $3.85. 

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

The post 3 top Metaverse stocks ready for a bull run appeared first on The Motley Fool Australia.

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James Brumley 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 Microsoft and Nvidia. The Motley Fool Australia has recommended Nvidia. 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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