You’ll find plenty of big-cap ASX shares involved in gold, iron ore, or coal.

But most of the ASX shares exploring for and producing cobalt are on the microcap and small-cap end of the spectrum.

We look at three of the larger companies below.

But first…

What is cobalt?

A hard, shiny, greyish metal, cobalt is a highly conductive metal. It has numerous uses, including adding colour to glass and ceramics.

But we suspect its cobalt’s use in aircraft engine parts and its prevalence in lithium-ion batteries, computers and mobile phones that has seen the Australian government list the metal as a critical mineral.

The government reports that Australia has high geological potential for cobalt, with a 2020 economic demonstrated resource of 1.5 million tonnes. In 2020, Australian miners produced 5,600 tonnes of cobalt, out of a total global production of 135,000 tonnes.

Only Russia and the Democratic Republic of Congo, which mines some 70% of total global cobalt, produced more.

With that said, which ASX shares are digging for cobalt?

Three ASX shares cashing in on cobalt

First up we have Jervois Global Ltd (ASX: JRV).

With a market cap of $1.2 billion, it’s the biggest of the ASX shares with a strong focus on cobalt.

The company is on track to start production at its Idaho Cobalt Operations, the only cobalt mine in the United States. It’s also a specialty cobalt chemicals producer at Jervois Finland.

And the Jervois share price has been riding high amid booming demand for battery metals, with shares up 29% year-to-date.

Next up we have Ardea Resources Ltd (ASX: ARL), with a market cap of $206 million.

Ardea Resources’ Kalgoorlie Nickel Project, located in Western Australia, is the largest nickel-cobalt resource in the developed world. It’s been awarded ‘major project status’ by the Australian government.

The company is another beneficiary of the booming demand for battery metals, helping send its share up a whopping 171% so far in 2022.

This brings us to our third ASX share focused on cobalt, the aptly named Cobalt Blue Holdings Ltd (ASX: COB).

Cobalt Blue has a market cap of $253 million.

The ASX share reports that it’s poised to become one of the world’s largest cobalt producers on the back of its Broken Hill Cobalt Deposit, in New South Wales. According to the company website, “If Broken Hill were a country, it would rank number 5 for cobalt production”.

The Cobalt Blue share price is another stellar performer this year, up 62% since the opening bell on 4 January.

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

More reading

• Is the party drawing to a close for the Cobalt Blue shares?
• Why did the Cobalt Blue share price leap 5% this morning?
• 3 critical minerals you might not have heard of (and the ASX shares that have surged because of them)

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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As many investors would be aware, it’s been a particularly hard year for ASX tech shares. Since the start of the year, the S&P/ASX All Technology Index (ASX: XTX) has lost almost a third of its value.

But this tech slump isn’t just confined to the ASX boards. US tech shares have been especially hard hit too. We can see this in the performance of the BetaShares Nasdaq 100 ETF (ASX: NDQ).

NDQ is an ASX-listed exchange-traded fund (ETF) that tracks the NASDAQ-100 Index (INDEXNASDAQ: NDX). It is the only ASX-listed ETF to do so. The Nasdaq is one of the two US stock exchanges. It is best known for being the exchange of choice for most US tech companies.

You’ll find everything from Apple Inc, Tesla Inc, Microsoft Corporation and Amazon.com Inc to Meta Platforms Inc, Alphabet Inc, PayPal Holdings Inc, and Netflix Inc on the NASDAQ. And thus, in NDQ.

Even though some of the top holdings in the BetaShares Nasdaq 100 ETF are some of the most well-known and profitable companies on the planet, it hasn’t saved the ETF from some nasty share price falls this year. Since the start of 2022, NDQ units have lost more than 22% of their value.

These falls have come as many of the underlying tech shares that underpin this ETF have struggled this year. Take Amazon shares. Amazon has fallen more than 26% in 2022 so far. Tesla has lost 35% of its value year to date. And Meta (formerly Facebook) shares are down more than 41%.

So is the NDQ ETF a buy today?

Could these share price falls herald a buying opportunity for the Nasdaq 100 ETF?

In my opinion, yes.

Firstly, the Nasdaq 100 is an index. This means that the top-performing shares rise to the top over time, while the losses drop off the perch. This means NDQ, like any other index ETF, can be used as a passive investment.

Secondly, the Nasdaq is essentially a bet on the future of the US tech sector, given most tech companies call it home. The US tech sector has dominated the world for decades now, and there is little reason to think it isn’t set up to continue to do so. Companies like Apple, Amazon, Netflix, and Alphabet’s Google seem to only grow more entrenched in our lives every year and are still growing at healthy clips.

Thirdly, NDQ is an ETF that has some impressive runs on the board. Although its performance has been disappointing this year, consider this. NDQ has still averaged an impressive performance of 19.76% per annum over the past five years. Past performance is no guarantee of future gains. But it does give us an idea of the potential that is there.

So all in all, this recent pullback for the BetaShares Nasdaq 100 ETF could well be a compelling buying opportunity going forward.

The post Here’s why the BetaShares Nasdaq 100 ETF could be a buy today appeared first on The Motley Fool Australia.

More reading

• 2 great ETFs I’d buy in June 2022
• Three trillion reasons why young investors need to be taken seriously
• 3 high quality ETFs for ASX investors to buy now
• Here’s why the Betashares Nasdaq 100 ETF (NDQ) is sinking today
• Are these 2 sold-off ASX growth shares now cheap bargains?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen has positions in Alphabet (A shares), Amazon, Apple, Meta Platforms, Inc., Microsoft, Netflix, PayPal and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, BETANASDAQ ETF UNITS, Meta Platforms, Inc., Microsoft, Netflix, PayPal Holdings, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Apple, Meta Platforms, Inc., Netflix, and PayPal Holdings. 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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May was a pretty awful month for ASX shares, as we watched the S&P/ASX 200 Index (ASX: XJO) plunge 3%.

In such distressing times, it’s interesting to see which stocks the professional investors stick with despite watching their valuations shrink.

QVG Capital explained its thesis for two such examples in a recent memo to clients.

‘Double-digit earnings growth for many years to come’

The analysts at QVG Capital were upfront about its performance last month.

“May performance was poor,” read the memo.

“The fund tracked the market lower with underperformance (minus 4%) largely attributed to our meaningful holding in insurance builder Johns Lyng Group Ltd (ASX: JLG), which finished the month down 33%.”

The team blamed a reaffirmation of its earnings outlook that fell short of investor expectations, and two directors selling their shares.

But Johns Lyng remains the fund’s second-largest holding.

“We remain confident in the durability and longevity of the Johns Lyng story with several ‘irons in the fire’, both organic and inorganic, to drive double-digit earnings growth for many years to come.”

QVG Capital noted that the insurance builder and repairer is well placed financially.

“JLG is capital-light, has a long runway for growth and has no debt,” read the memo.

“High levels of insider ownership, a unique culture and solid track record of execution give us confidence May’s performance will only be a hiccup.”

It seems other professionals agree, with six out of seven analysts surveyed on CMC Markets rating Johns Lyng shares as a strong buy.

Even after a shocking May, Johns Lyng shares have risen a handsome 45.3% over the past 12 months.

‘Long runway for growth’

Dental centre operator Pacific Smiles Group Ltd (ASX: PSQ) was another big detractor in May for QVG Capital, also dropping a painful 33%.

“Omicron and a bad flu season have seen patients stay away from healthcare settings (pathology, IVF and radiology volumes are also down) this half,” read the memo.

“Unlike the very strong return to trading Pacific Smiles saw [after Delta] in October and November last year, patient volumes have been slow to recover this calendar year.”

However, the stock is still a long-term holding for QVG Capital.

“We continue to like Pacific Smiles due to its high returns on incremental capital and long runway for growth.”

The horrible run in May merely extended already heavy losses in 2022. The Pacific Smiles share price has almost halved since the start of the year.

According to the QVG team, the heavily discounted share price makes it a “compelling” buy right now.

“For example, if Pacific Smiles were to never open another centre and just let their existing 125 practices mature (centres ramp up over several years) it would trade on more than a 10% free cash flow yield.”

Other analysts are slightly less certain, with only two out of four surveyed on CMC Markets rating Pacific Smiles as a strong buy. One other fund manager voted it a moderate buy.

The post 2 ASX shares just had a shocker but are awesome long-term buys: fund appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Here are the 3 most traded ASX 200 shares on Friday

Motley Fool contributor Tony Yoo has positions in Johns Lyng Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Johns Lyng Group Limited. The Motley Fool Australia has recommended Johns Lyng 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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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, Tribeca Investment Partners portfolio manager Jun Bei Liu picks three stocks that are discount buys right now and why she suspects growth could come back into vogue pretty soon.

Investment style

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

Jun Bei Liu: ​​I run the Tribeca Alpha Plus Fund. It’s probably one of the longest-running long-short funds here in Australia and probably one of the largest, just over $1 billion. 

We specialise in Australian equities. We’re a very active investor. Long-short means we take advantage of rising and falling share prices. And we’re finding the current market environment providing lots of opportunities. 

Myself, Jun Bei, I’ve been an investor, a fundamental investor for almost 20 years. And my career spanned across Australian equities and also had some exposure to international equities. 

Hottest ASX shares

MF: What are the three best stock buys right now?

JBL: I think on a risk-adjusted basis, we actually think things like CSL Limited (ASX: CSL) is an amazing buy at current levels. Share price has been depressed as investors [have been] selling that whole growth basket. And unfortunately, CSL got bundled into it. 

This is a company that’s going to deliver double-digit earnings growth for the next few years, regardless of economic outlook. And this company will also be a beneficiary of [the] reopening economy as well because the blood collection used for plasma production has been very weak because of the COVID disruption and now has really picked up. 

So, the earnings growth, it’s very, very defensive. It’s not dependent on economic outlook. And the share price is a very reasonable level. So I think that’s a really strong buy.

The next one in my mind is Xero Limited (ASX: XRO). We love this company because, for many years, it’s demonstrated its execution in dislodging incumbents and growing its share and became a dominant player across the New Zealand, Australian markets. And now it’s gone to the UK. It’s demonstrated it’s gaining [market] share really well. 

Share price, again, [is] being punished because of people rotating out of growth stocks into others. And I think the current share price is [at] very reasonable levels. It’s not something you buy for next month’s earnings. It is something you buy for the bottom drawer, for the longer term, for the next five years. 

So we love Xero.

MF: Earlier this year Xero shares were punished because the company decided to reinvest money back into the business rather than try to make it more profitable in this environment. What do you think about that dilemma they have?

JBL: Yeah. Look, to be honest, I always believe for businesses that have such huge addressable markets, it is actually important for them to continue to invest. 

If you look at some of the market leaders, things like TechnologyOne Ltd (ASX: TNE) — that’s another one of our picks as well — they’re just continually executing on growth and continually to expand on the existing product suite, but they’re constantly expanding on the R&D so that they will stay ahead of the competition. That’s why they’re so dominant in a category. 

So I think that for tech companies, they do need to do that, particularly if you can demonstrate that your return on capital is significantly higher than what can be otherwise generated. To me, that’s the right thing to do. 

I don’t buy this company for near-term earnings. To be quite frank, I didn’t think the disappointment was all that large. It was just investors still very skittish with growth companies, just because they’re unsure of the growth premium, what they want to pay for the growth premium. That’s why the opportunity exists.

MF: Speaking of how the market’s turned against growth shares, how fast do you think that sentiment can turn around again?

JBL: I think as long as, which we saw last week, you start seeing the stabilisation in bond yields, essentially the expectations of interest rate, then you will begin to see interest moving back into those growth or long-duration stocks. 

Also you need the market sentiment to improve, not a “risk-off” kind of environment. 

Essentially, three or four components to be in place. One is that peak in inflation expectations. So, last two weeks you probably heard… all the inflation stats are looking horrendous at the moment. But there are some indications that some of those supply chain disruption things are improving and the inflation may be peaking. 

Secondly, the interest rate expectation peaking. So, the market was expecting an enormous interest rate increase just before the slightly mixed message out of the [US Federal Reserve] last week. Now that you see interest rate expectations started coming back because now you started getting mixed messages out of the Fed. Some actually started saying, “Oh, maybe in September, they may pause to see how they go.” 

And then the next one is the valuation de-rate. So we see certainly across the growth sector, some of the names that really come off. Then, we need the outcome of the Ukraine-Russia war, [which] is still a little bit uncertain. 

So I think, with all these core components, certainly seems like hard to call market bottom [yet], but it does feel like it’s looking a lot better from here on.

That bodes pretty well for some of those growth names.

MF: And the third stock that you like?

JBL: Given my thesis on growth, I would pick Seek Limited (ASX: SEK). The company’s very leveraged to the employment market. The company’s done well over the years in terms of growing from a small classifieds business into a dominant player. And then went to other markets, managed to replicate some of its business. 

Now it’s well on its path to capitalise on its base. Essentially like what REA Group Limited (ASX: REA) did many years ago, to start increasing output on every spend, every account. Seek just started doing so, and it’s very early stage with that monetisation process. 

So we see this company will have a multi-year double-digit earnings profile, and share price being sold off because, again, it’s growth. Also, people suddenly worry about the economic outlook, even though our employment market is incredibly strong. Our inflation is nowhere near the way it’s expected in the US. 

That to me is a good buy. I think you’ll do well in the [next] 12 months.

MF: It has a very dominant position in Australia, doesn’t it? It doesn’t really have a close competitor these days.

JBL: Yeah, it’s very dominant. 

Over the years we have had a lot of new [competitors] that threatened to dislodge that position, but they come and go, right? They’re never really proven, and [don’t] really gain a meaningful market share. 

You’ve got the likes of Indeed. Remember when they come in? Back then there was My Career and then so many different businesses. They were going to be the next big thing. But none of them did. 

In any tech space, first-mover advantage is huge. Secondly, the company’s management never really stopped investing, and they’ve constantly reinvested and then essentially provide value to their customers. So that’s why they’ve got a very sticky base. They’ve done well.

The post 3 ASX shares to buy now (and one bonus): fund manager appeared first on The Motley Fool Australia.

More reading

• 2 stellar ASX growth shares analysts are tipping as buys this month
• Analysts name 2 high quality ASX blue chip shares to buy right now
• Brokers name 3 ASX shares to buy today
• Why Altium, Fortescue, PeopleIn, and REA shares are storming higher
• 3 ASX 200 shares swimming in billions, besides banks and miners

Motley Fool contributor Tony Yoo has positions in CSL Ltd. and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. and Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended REA Group Limited, SEEK Limited, and TechnologyOne 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 buy this month? If you are, then you might want to look at the shares listed below.

Here’s why these ASX dividend shares could be worth considering right now:

Accent Group Ltd (ASX: AX1)

The first ASX dividend shares to look at is Accent. It is a footwear focused retailer that owns a growing collection of store brands. These include HYPEDC, Pivot, Platypus, Sneaker Lab, and Stylerunner.

Accent’s shares have fallen materially this year due to tough trading conditions in the retail sector. While this is disappointing, the team at Bell Potter appear to see it as a buying opportunity.

This morning the broker reiterated its buy rating and $2.20 price target on the retailer’s shares. It notes that Accent has a ~30% market share of the $3 billion Australian footwear market and sees a major opportunity in the fast-growing $5 billion apparel market.

As for dividends, it is forecasting fully franked dividends of 5.8 cents per share in FY 2022 and then 10.7 cents per share in FY 2023. Based on the current Accent share price of $1.34, this will mean yields of 4.3% and 8%, respectively.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share that could be a buy is Westpac. It is Australia’s oldest bank and one of the big four. It is also responsible for the Bank of Melbourne, Bank SA, St Georges, and Rams brands.

It could be a top option due to its improving outlook as rates rise in Australia and the economy recovers from the pandemic.

Analysts at Citi are very positive on the bank and have a buy rating and $29.00 price target on its shares. They were particularly pleased with Westpac’s recent half-year results, which came in well ahead of expectations. The broker also highlights that management is holding firm with its cost reduction plans despite the bank’s rivals abandoning their own targets.

All in all, Citi believes this leaves Westpac well-placed to deliver “the strongest EPS growth in the sector.”

In respect to dividends, Citi is forecasting a fully franked $1.23 per share dividend in FY 2022 and then a $1.53 per share dividend in FY 2023. Based on the current Westpac share price of $24.00, this will mean yields of 5.1% and 6.4%, respectively.

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

More reading

• Top brokers name 3 ASX shares to buy next week
• What are brokers forecasting for the Westpac share price in June?
• What’s dragging on ASX 200 bank shares like NAB on Thursday?
• Why did the Westpac share price beat the ASX 200 in May?
• Leading brokers name 3 ASX shares to buy today

Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. 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 Accent Group 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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On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week on a positive note. The benchmark index rose 0.8% to 7,238.8 points.

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

ASX 200 expected to fall

The Australian share market looks set to start the week in the red following a very poor night on Wall Street on Friday. According to the latest SPI futures, the ASX 200 is expected to open the day 33 points or 0.45% lower this morning. On Wall Street, the Dow Jones was down 1.05%, the S&P 500 dropped 1.6%, and the Nasdaq tumbled 2.5%.

Oil prices rise

Energy producers Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a good start to the week after oil prices pushed higher on Friday. According to Bloomberg, the WTI crude oil price rose 1.7% to US$118.87 a barrel and the Brent crude oil price climbed 1.8% to US$119.72 a barrel. Tight supply offset news that OPEC plans to increase production.

ASX 200 rebalance

S&P Dow Jones Indices has announced changes to the ASX 200 index at the next rebalance. Among the notable changes are Appen Ltd (ASX: APX) and PolyNovo Ltd (ASX: PNV) being kicked out on 20 June. Brainchip Holdings Ltd (ASX: BRN) and Core Lithium Ltd (ASX: CXO) are among the new entrants to the benchmark index.

Gold price falls

Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a tough start to the week after the gold price dropped on Friday night. According to CNBC, the spot gold price is down 1.1% to US$1,850.2 an ounce. Strong US jobs data spurred on rate hike bets.

Liontown shares on watch

The Liontown Resources Limited (ASX: LTR) share price will be on watch this morning. The lithium developer is due to release an update on its agreement with electric vehicle giant Tesla today. Tesla is expected to sign up for 150,000 dry metric tonnes of spodumene concentrate from the Kathleen Valley lithium project.

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

More reading

• What’s coming up for the Liontown share price in June?
• These were the worst performing ASX 200 shares last week
• These were the best performing ASX 200 shares last week
• Here are the top 10 ASX shares today
• Here are the 3 most traded ASX 200 shares on Friday

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 Appen Ltd and POLYNOVO FPO. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Liontown Resources Limited (ASX: LTR) share price has started the month in a very disappointing fashion.

After just three trading days, the lithium developer’s shares are down 10.5%.

Though, that’s a decent outcome given the Liontown share price was down as much as 19% on 1 June.

What’s next for the Liontown share price?

The Liontown share price could be given a boost and put this recent blip behind it on Monday.

That’s because on Monday the company is scheduled to announce a definitive full form binding offtake agreement with electric car giant Tesla.

Last week Liontown advised that the two parties had mutually agreed to extend the termination date for the binding lithium offtake term sheet until 6 June. This was to allow Liontown and Tesla to complete negotiations for the agreement.

If everything goes to plan, Tesla will be signing up for up to 150,000 dry metric tonnes per annum of spodumene concentrate from Liontown’s Kathleen Valley project from 2024. This represents approximately one-third of the project’s start-up production capacity of ~500,000 tonnes per annum.

This will complement the definitive full-form offtake agreement the company has signed with LG Energy Solution. That agreement is for the supply of 100,000 dry metric tonnes in the first year, increasing to 150,000 tonnes per year in subsequent years.

But it is unlikely to stop there. The company recently confirmed that it continues to progress negotiations with other potential tier-one global customers that would complement its offtake strategy.

Are its shares in the buy zone?

One broker that appears to see a lot of value in the Liontown share price is Macquarie.

Last week the broker retained its outperform rating and $2.50 price target on the company’s shares. This is almost double the current Liontown share price.

The post What’s coming up for the Liontown share price in June? appeared first on The Motley Fool Australia.

More reading

• Here are the 3 most traded ASX 200 shares on Friday
• ASX 200 midday update: Healius disappoints, BHP and Fortescue storm higher
• It was an eventful month for Liontown shares in May. Here’s what went down
• Which ASX lithium shares are rebounding on Thursday, and which are not?
• Is this the real reason ASX lithium shares cratered on Wednesday?

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

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The start of the COVID-19 pandemic seems like a long time ago now. 

If you cast your mind back to 2020, most of the developed world was in lockdown. The Australian government then not unreasonably called for an independent enquiry into the origins of the coronavirus.

But China took exception to this suggestion and started a wave of economic punishments designed to pressure and make an example out of Australia.

Massive losers from frosty Canberra-Beijing relations

Two of the biggest victims out of that breakdown in diplomatic relations were Treasury Wine Estates Ltd (ASX: TWE) and A2 Milk Company Ltd (ASX: A2M).

Heavy tariffs on Australian wines and a complete slowdown in daigou sales channels downgraded the companies’ earnings almost instantly.

Treasury shares are still 9% down from August 2020, and the A2 Milk stock price has plunged 76% since July 2020.

Yikes.

But a potential turning point in Australia-China relations came two weeks ago when Labor won the federal election.

Many analysts predicted that an ALP government would thaw Canberra’s frosty relationship with Beijing.

After all, it couldn’t get any worse.

Could a Labor government revive A2 Milk and Treasury Wine?

So one curious investor wondered whether it is now time to wade back into A2 Milk and Treasury Wine, ahead of better diplomatic relations with China.

Shaw and Partners portfolio manager James Gerrish gave his thoughts on this in his regular Market Matters Q&A.

He said his team agrees with that line of thinking.

“Your thoughts are definitely one of the reasons Market Matters is long Treasury Wines,” he said.

“But like A2 Milk, it has delivered a few false dawns over recent times.”

Gerrish suspected new Prime Minister Anthony Albanese can only improve Australia’s rapport with China.

“But the companies also need to start delivering results — hence the answer is a cautious yes.”

The broader analyst community seems to agree with Gerrish’s team that currently Treasury looks the better bet.

According to CMC Markets, six of 11 professionals rate Treasury Wine shares as a buy. Meanwhile, only three out of 14 analysts say the same about A2 Milk.

The post Is it time to buy A2 Milk and Treasury Wines for better China relations? appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• The Treasury Wine share price has leapt 6% in 3 weeks. Why this top broker is tipping more gains
• Top broker names 2 of the best ASX shares to buy in June
• What to do with these 3 pummelled ASX shares: advisor
• Can A2 Milk shares cash in on a US deal like Bubs?

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If you’re a growth investor with room for some new portfolio additions in June, then it could be worth considering the two ASX growth shares listed below.

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

Aristocrat Leisure Limited (ASX: ALL)

The first ASX growth share that could be a buy is Aristocrat. It is a gaming technology company with a portfolio of world class pokie machines and digital games.

In respect to the latter, the company’s growing Pixel United portfolio includes popular games such as Raid: Shadow Legends, Heart of Vegas, Mech Arena, and Vikings: War of Clans. These are generating significant recurring revenues from their millions of daily active users.

Analysts at Citi are very positive on Aristocrat and believe it is well-placed for growth. Citi commented: “Aristocrat represents a compelling long-term growth story, with exposure to ongoing growth in mobile game penetration and potential to grow into new markets.”

The broker currently has a buy rating and $41.00 price target on the company’s shares.

Xero Limited (ASX: XRO)

Another ASX growth that could be in the buy zone is Xero. It is a cloud-based accounting solution platform provider to small and medium sized businesses globally.

Xero recently released its FY 2022 results and revealed a 29% increase in revenue to NZ$1.1 billion and a 28% jump in annualised monthly recurring revenue (AMRR) to NZ$1.2 billion. This was underpinned by a 19% increase in total subscribers to 3.3 million thanks to growth in all markets.

The good news is that Goldman Sachs expects this strong form to continue. It is forecasting a 26.5% increase in revenue to NZ$1.387.1 billion in FY 2023. After which, it is expecting Xero’s revenue to reach almost NZ$2 billion by FY 2025.

But it is unlikely to stop there given its total addressable market of 45 million subscribers globally and plans to monetise its growing user base with its app store.

Goldman Sachs has a buy rating and $118.00 price target on its shares.

The post 2 stellar ASX growth shares analysts are tipping as buys this month appeared first on The Motley Fool Australia.

More reading

• Why are ASX 200 tech shares having such a cracking Friday?
• Xero share price has 19% upside potential, top brokers say
• Buy these 2 ASX shares going for a 25% discount: Morgans
• Experts pick 2 ASX shares to buy that move wealth around
• Why did the Xero share price go backwards in May?

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 has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Lottery Corporation Ltd (ASX: TLC)

According to a note out of Morgans, its analysts have initiated coverage on this lottery company’s shares with an add rating and $5.40 price target. Morgans is very positive on the company due to its defensive qualities and positive growth outlook. It highlights that lottery ticket sales are resilient to economic cyclicality, its cash flows are steady and predictable, and there is a low ongoing need for capex. The Lottery Corporation share price ended the week at $4.43.

Wesfarmers Ltd (ASX: WES)

Another note out of Morgans reveals that its analysts have retained their add rating but trimmed their price target on this conglomerate’s shares to $58.40. This follows the company’s strategy update, which provided insights into the growth opportunities available for each of its business divisions. In addition, Morgans was pleased that management is confident it can navigate through a more cautious consumer environment. The Wesfarmers share price was fetching $47.15 at Friday’s close.

Westpac Banking Corp (ASX: WBC)

Analysts at Citi have retained their buy rating and $29.00 price target on this banking giant’s shares. According to the note, the broker believes that lending-derived revenue growth will be hard to come by in the near future. Instead, it expects deposit-derived revenue to be the key growth driver as rates rise and credit slows. In light of this, it expects the current valuation gap between asset growing and revenue challenged banks such as Westpac will close. The Westpac share price ended the week at $24.00.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• What’s in store for the Wesfarmers share price in June?
• Down 9% in a week, is the Lottery Corp share price a buy? 
• What are brokers forecasting for the Westpac share price in June?
• 2 more of this broker’s best ASX share ideas for June
• 5 things to watch on the ASX 200 on Friday

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

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