• 5 things to watch on the ASX 200 on Monday

    Smiling man with phone in wheelchair watching stocks and trends on computer

    Smiling man with phone in wheelchair watching stocks and trends on computer

    On Friday, the S&P/ASX 200 Index (ASX: XJO) finished the week with a decline. The benchmark index fell 0.4% to 6,539.9 points.

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

    ASX 200 expected to jump

    The Australian share market looks set to start the week on a very positive note after a strong finish to the week on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 96 points or 1.5% higher this morning. On Wall Street, the Dow Jones was up 1.05%, the S&P 500 rose 1.05%, and the Nasdaq climbed 0.9%.

    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 rose strongly on Friday. According to Bloomberg, the WTI crude oil price climbed 2.5% to US$108.43 a barrel and the Brent crude oil price climbed 2.4% to US$111.83 a barrel. Supply outages in Libya and expected shutdowns in Norway boosted prices.

    Good day expected for tech sector

    It could be a good day of trade for the Block Inc (ASX: SQ2) share price and other tech shares on Monday. This follows a positive night of trade for the tech-focused Nasdaq index on Friday. Over on the NYSE, the Block share price rebounded from recent selling and rose a sizeable 4%.

    Iron ore price falls

    BHP Group Ltd (ASX: BHP) and Fortescue Metals Group Limited (ASX: FMG) shares will be in focus today after a pullback in the iron ore price. According to Metal Bulletin, the benchmark iron ore price dropped 4.3% to US$113.90 a tonne. This led to the NYSE listed BHP share price falling almost 4% on Friday night.

    Gold price edges lower

    Gold miners Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could have a soft start to the week after the gold price edged lower on Friday night. According to CNBC, the spot gold price was down 0.3% to US$1,801.5 an ounce. This led to gold recording another small weekly decline.

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

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

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

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  • Analysts name 3 buy-rated ASX growth shares for July

    A happy businessman pointing up, inidicating a rise in share price

    A happy businessman pointing up, inidicating a rise in share price

    If you have room for some new portfolio additions in July, then it could be worth considering the three ASX growth shares listed below.

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

    Lovisa Holdings Limited (ASX: LOV)

    The first ASX growth share to look at is fast-fashion jewellery retailer Lovisa. It could be a top long term option due to its bold global expansion plans, which will be overseen by its relatively new CEO, Victor Herrero. He previously led Inditex (Zara, Pull & Bear and Massimo Dutti) in China, which could be a key market for the company in the future.

    Morgans is very bullish on the company due to its massive store expansion potential. It highlights that “Lovisa now has 81 stores [in the US], representing 0.25 stores for every million people), compared to Australia with 158 stores, 6.15 stores for every million people.” In light of this, the broker feels “we could be at the start of a period of remarkable expansion.” Morgans has an add rating and $24.00 price target on its shares.

    Megaport Ltd (ASX: MP1)

    Another growth share to look at is this global leading provider of elastic interconnection services. Using software defined networking, Megaport’s global platform allows users to rapidly connect their network to other services across the Megaport Network. After which, services can then be directly controlled by customers via mobile devices, their computer, or its open API.

    Goldman Sachs is bullish on Megaport. It notes that the company has an “immense” $129 billion market opportunity and is forecasting very strong growth in the coming years. As a result, it has put a buy rating and $13.10 price target on its shares.

    Readytech Holdings Ltd (ASX: RDY)

    Another ASX growth share to look at is Readytech. It owns a portfolio of enterprise software businesses across several market verticals such as higher education and local government. These businesses operate in market niches that are under-served by both large and small enterprise software competitors. A testament to its quality is its high (and growing) levels of recurring revenue and ultra low churn levels.

    Goldman Sachs is also bullish on Readytech. It expects the company to “continue to grow mid-teens organically while making accretive acquisitions.” In light of this, the broker recently resumed coverage on its shares with a buy rating and $4.60 price target.

    The post Analysts name 3 buy-rated ASX growth shares for July appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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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 MEGAPORT FPO and Readytech Holdings Ltd. The Motley Fool Australia has recommended Lovisa Holdings Ltd, MEGAPORT FPO, and Readytech 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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  • Why did the BrainChip share price crash 30% in June?

    A man in a suit face palms at the downturn happening with shares today.

    A man in a suit face palms at the downturn happening with shares today.

    The BrainChip Holdings Ltd (ASX: BRN) share price had a disappointing month in June.

    The semiconductor company’s shares ended the month 30% lower than where they started it.

    This was despite BrainChip’s shares being added to the illustrious ASX 200 index during the month.

    What happened to the BrainChip share price?

    Investors were selling down the BrainChip share price in June amid broad market weakness. With interest rates increasing to combat rising inflation, this put pressure on equities.

    This was particularly the case at the higher risk side of the market, where BrainChip certainly sits.

    For example, even after June’s decline, the company has a market capitalisation of over $1.4 billion despite its revenue year to date being just $205,000.

    When annualised to $820,000, this means its shares are changing hands for a ridiculous 1700 times revenue. And this is before the company has even proven that it has a market for its Akida neuromorphic processor.

    In light of this, it is no surprise that when the market wobbles, the BrainChip share price tumbles.

    What’s next?

    The next 12 months will be very interesting for the BrainChip share price. With the company now commercialising its technology, it will have to let its sales do the talking rather than its press releases or podcasts.

    Which may not be as easy as many first thought. Especially given that some of the hyped-up partnerships from the last 2-3 years appear to have amounted to nothing.

    For example, its partnership with NASA was big news back in 2020 and is still talked about today as a reason to invest in BrainChip. But this seems to have ended after just three weeks on 18 January 2021 based on NASA data. It’s also worth noting that there was no mention of NASA in its most recent annual report.

    So, should sales fail to materialise in a market dominated by some huge tech behemoths such as AMD, Intel, and Nvidia, then there’s a distinct danger that its days as a billion dollar plus company could be numbered.

    The post Why did the BrainChip share price crash 30% in June? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Brainchip Holdings Ltd right now?

    Before you consider Brainchip Holdings Ltd, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Brainchip Holdings Ltd wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of June 1 2022

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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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  • Top brokers name 3 ASX shares to buy next week

    Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today

    Red buy button on an apple keyboard with a finger on it representing asx tech shares to buy today

    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:

    Collins Foods Ltd (ASX: CKF)

    According to a note out of Morgans, its analysts upgraded this KFC restaurant operator’s shares to an add rating with a trimmed price target of $11.50. Morgans was impressed with Collins Foods’ full year result. And while its analysts expect inflationary pressures to weigh on its margins in FY 2023, it has still lifted its earnings estimates for the next two financial years to reflect stronger than expected sales growth. This is expected to be supported by resilient consumer demand and strong pricing power. The Collins Foods share price ended the week at $10.02.

    IGO Ltd (ASX: IGO)

    A note out of Macquarie reveals that its analysts have retained their outperform rating and $17.00 price target on this battery metals miner’s shares. Macquarie is bullish on IGO due to its world class lithium business, which it expects to underpin material earnings growth in the near term. Furthermore, the broker highlights that the company’s shares trade at a discount to lithium peers. The IGO share price was fetching $9.83 at Friday’s close.

    Qantas Airways Limited (ASX: QAN)

    Analysts at Morgan Stanley have retained their overweight rating but trimmed their price target on this airline operator’s shares to $6.60. This followed the release of a business update which revealed a much stronger balance sheet that Morgan Stanley was expecting. And while the broker has reduced its earnings estimates to reflect higher fuel costs, it expects higher airfares and reduced capacity to provide some relief. The Qantas share price ended the week at $4.45.

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

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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    Motley Fool contributor James Mickleboro has positions in Collins Foods Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Collins Foods Limited. The Motley Fool Australia has recommended Collins Foods 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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  • Broker names 2 of the best ASX energy share to buy in FY23

    Pilbara Minerals share price ASX lithium shares A stylised clean energy battery flexes its muscles, indicating a strong lift in share price for ASX energy companies

    Pilbara Minerals share price ASX lithium shares A stylised clean energy battery flexes its muscles, indicating a strong lift in share price for ASX energy companies

    With oil prices still trading at elevated levels, some investors may be interested in gaining exposure to the energy sector.

    For those that are, the two ASX shares listed below could be worth considering. They have been named by Bell Potter as two of its top picks in the energy sector for FY 2023.

    Here’s what you need to know:

    Beach Energy Ltd (ASX: BPT)

    The first energy share that Bell Potter is bullish on is Beach Energy. It believes the company is well-placed to benefit from high oil prices in the short term and its growth plans over the medium term.

    The broker explained:

    BPT should continue to benefit from elevated crude prices in the shortterm, though operating leverage from its Western Flank asset will shrink as gas and LNG production from its growth projects ramp up over the next two years.

    The company’s growth ambitions are fully funded; new development wells in the Victorian Otways should be commissioned by the end of FY23, lifting production capacity to plant limits (205TJ/day, gross) while improving marketing of gas volumes on a spot basis. The company’s timely entry into global LNG markets (expected from 1H CY2023), through its Waitsia Stage 2 development, coincides with a robust outlook for LNG prices.

    Bell Potter has a buy rating and $2.00 price target on Beach’s shares.

    Strike Energy Ltd (ASX: STX)

    Another ASX energy share that Bell Potter rates highly is Strike Energy. It believes the company is well-positioned to benefit from the tightening domestic gas market in Western Australia. It also sees a lot of potential in management’s fertiliser plans.

    It commented:

    STX will benefit from Western Australia’s tightening domestic gas market while pursuing downstream value adding manufacturing. There are multiple upcoming catalysts as its upstream projects progress to production in 2023-24, and as its flagship Project Haber urea fertiliser project is de-risked through FEED and financing.

    STX has a strong eye to ESG commitments, with a net zero Scope 1 and 2 target by 2030 and an aspiration to also offset Scope 3; Project Haber and the company’s geothermal project are key carbon offsets.

    Bell Potter has a speculative buy rating and 39 cents price target on Strike Energy’s shares.

    The post Broker names 2 of the best ASX energy share to buy in FY23 appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

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    See The 5 Stocks
    *Returns as of June 1 2022

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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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  • Why did the CBA share price crash 13% in June?

    a man sitting at a computer at a desk has a look of anguish and trepidation on his face as he opens his eyes wide and made an aargh type expression with his mouth as his hair stands on end and his tie also stands on end with one part over each shoulder in what is supposed to be a humorous picture of something in a panic.

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    After a comparatively decent showing in May, the Commonwealth Bank of Australia (ASX: CBA) share price gave back its gains and more in June.

    During the month, Australia’s oldest bank saw its shares lose 13.4% of their value.

    This compares unfavourably to the ASX 200 index and its 8.9% decline in June.

    Why did the CBA share price drop in June?

    The CBA share price was sold off early on in the month after the Reserve Bank of Australia shocked the market with a far more aggressive rate hike than the market was expecting.

    This sparked fears that the central bank’s attempts to tame inflation could bring about a recession and lead to a rise in bad debts.

    It wasn’t just the CBA share price that tumbled on the news. All the big four banks dropped and ultimately posted sizeable monthly declines.

    What else?

    Also putting pressure on the CBA share price was a broker note out of Morgan Stanley last month.

    Due to concerns over a weaker housing and mortgage market, its analysts retained their underweight rating and slashed their price target on the bank’s shares from $91.00 down to $79.00.

    Morgan Stanley points out that Australian mortgage growth has slowed meaningfully during previous quick and aggressive RBA rate hikes. Unfortunately, this time around the broker suspects that things could be even worse.

    “In this cycle, we believe the slowdown will be greater given household leverage is higher than in prior cycles, mortgage rates are starting from a lower base, and cash rate hikes are likely to be larger,” the broker said.

    Elsewhere, the team at Citi retained its sell rating and $90.75 price target. Citi warned that the valuation gap between CBA and the rest of the big four could narrow.

    The post Why did the CBA share price crash 13% in June? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Commonwealth Bank Of Australia right now?

    Before you consider Commonwealth Bank Of Australia, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Commonwealth Bank Of Australia wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of June 1 2022

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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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  • Why this fundie favours NAB and Westpac shares out of the big four

    Four businessmen in suits pose together in a martial arts style pose as if ready to engage in competition or spring into a fight.

    Four businessmen in suits pose together in a martial arts style pose as if ready to engage in competition or spring into a fight.

    One investment professional has named Westpac Banking Corp (ASX: WBC) and National Australia Bank Ltd (ASX: NAB) as preferred picks among the big ASX banks.

    The ‘big four’ S&P/ASX 200 Index (ASX: XJO) banks are NAB, Westpac, Australia and New Zealand Banking Group Ltd (ASX: ANZ) and Commonwealth Bank of Australia (ASX: CBA).

    It has been a pretty rough time for banks lately as investors come to grips with the impacts of inflation and rising interest rates.

    At the time of writing, the CBA share price has fallen 13% over the past month, while shares in NAB and ANZ are both down around 12%.

    Westpac shares have plunged more than 18% in the same period.

    While there are a lot of similarities between the banks, there are also some key differences. Valuations, dividend yields, management teams, the percentage of its loan book exposed to residential mortgages and so on.

    David Clark, of wealth management company Cameron Harrison, has picked out two of the big four ASX banks as preferred opportunities, as reported in the Australian Financial Review.

    Preferred big four ASX banks

    Clark advises investors not to allocate too much of their portfolio to ASX 200 banks because the “returns are unlikely to reach the heady levels of the past decade”.

    More than 28% of the ASX 200 is made up of financial businesses. That’s too high, according to the investment consultancy.

    Out of the big four ASX banks, Cameron Harrison preferred NAB and Westpac, amid challenges facing the others.

    With the world becoming increasingly digital, a good digital offering is likely to improve efficiencies, customer service and costs. However, Clark said that ANZ was “struggling” with its digital transformation.

    ANZ recently built a banking platform called ANZ Plus, its new digital banking service.

    ANZ’s Australia Retail group executive Maile Carnegie wrote in a recent blog post that the rebuild of the underlying technology was now complete. He said the bank was starting to see the rebuild of the customer applications that sat on top, starting with ANZ Plus savings and transaction accounts.

    The big four bank plans to have beta testing for loans in late 2022, so the solution for ANZ’s tech troubles could still be some months away.

    Why not CBA?

    CBA is the biggest bank in market capitalisation terms. However, Clark thinks that it’s trading at “too high a premium” compared to the others.

    Let’s have a look at the valuation in relation to price/earnings (p/e) ratios for FY22 using data on CMC.

    The CBA share price is valued at 16x FY23’s estimated earnings.

    Shares in Westpac are valued at 10x FY23’s estimated earnings, while ANZ shares come in just under 10x FY23’s estimated earnings. The NAB share price is valued at 12x FY23’s estimated earnings.

    Time will tell if CBA shares fall, the other three rise or the valuations stay this separate.

    The post Why this fundie favours NAB and Westpac shares out of the big four appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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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 no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • The Xero share price lost 14% last month. Here’s the tea

    Man looks frustrated looking at computer screen in an officeMan looks frustrated looking at computer screen in an office

    As most ASX investors would be aware, the month just gone was not an especially pleasing one for ASX investors or the S&P/ASX 200 Index (ASX: XJO). June saw the ASX 200 lose almost 9% of its value. But what of the Xero Limited (ASX: XRO) share price?

    Xero is one of the most popular ASX growth shares on the market. The online accounting software company has delighted investors in the past with impressive share price rises. Over 2020, Xero shares appreciated by a pleasing 80% or so.

    But the company has been struggling since 2020. Over this year so far, Xero has lost close to half of its value. So with this in mind, how did Xero go over June?

    From hero to Xero for share price

    Well, as one might guess, it wasn’t a particularly uplifting month for the Xero share price. The company began June at a price of $89.29 but closed at just $76.96 on Thursday. That means Xero recorded a loss of 13.8% over the month, a marked underperformance of the broader ASX 200.

    This was despite the absence of any news or announcements out of Xero over June. So it’s likely the nasty falls Xero shares experienced were purely driven by the investor apathy towards tech shares that we saw during the month.

    Many other ASX tech shares experienced similar falls over the period. For example, WiseTech Global Ltd (ASX: WTC) lost more than 10%, while Block Inc (ASX: SQ2) sunk by more than 28%. Zip Co Ltd (ASX: ZIP) had a shocker, falling by more than 52%.

    But it might not be all bad news for Xero investors. As my Fool colleague James covered last week, ASX broker Morgans has just come out with an “add” rating on the Xero share price.

    Morgans sees Xero as “a high-quality company, with strong growth potential in an industry with high barriers to entry”. It has given the company a 12-month share price target of $90.25, which implies a potential upside of more than 16% from recent pricing.

    So perhaps the Xero share price has far more exciting things in front of it than it left behind in June. But we shall have to wait and see.

    The post The Xero share price lost 14% last month. Here’s the tea appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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    Motley Fool contributor Sebastian Bowen 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 Block, Inc., WiseTech Global, Xero, and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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  • Broker names 3 of the best ASX tech share to buy in FY23

    digital screen of bar chart representing asx tech shares

    digital screen of bar chart representing asx tech shares

    If you’re interested in investing in the tech sector, then you may want to consider the three ASX tech shares listed below.

    These three shares have been named as Bell Potter’s top picks in the sector for FY 2023. Here’s what the broker is saying:

    Life360 Inc (ASX: 360)

    The first ASX tech share that Bell Potter rates highly is location technology company Life360. While the broker acknowledges that the company isn’t profitable yet, it feels investors should look beyond this due to its explosive growth, strong balance sheet, and expectation to be cash flow positive next year.

    It commented:

    Life360 develops and delivers a mobile app for families – called Life360 – that provides communications, driving safety and location sharing. The company adopts a freemium model to attract customers but has been successfully converting a portion of these customers to paying subscribers over the last several years by providing valuable features. The company has also recently made two acquisitions – Jiobit and Tile – so that now it not only connects and protects people but also pets and things. Yes Life360 is currently not profitable but is expected to be operating cash flow positive from 4Q2023 and has more than sufficient cash to fund its operations till then.

    Bell Potter has a buy rating and $7.50 price target on Life360’s shares.

    Nitro Software Ltd (ASX: NTO)

    Another ASX tech share that Bell Potter rates as a buy for the new financial year is document productivity company Nitro Software. Like Life360, the broker expects Nitro to be cash flow breakeven next year and has ample cash to support it through to then.

    Nitro is a global document productivity software company that enables digital transformation in organisations around the world through a suite of products built to enable digital workflows. The company has been successfully switching its revenue model from perpetual to subscription and the latter – which is recurring – now represents around two-thirds of total revenue. The company also recently made the acquisition of a leading eSign company called Connective which now positions Nitro as the third global player in the enterprise eSign market. Yes Nitro is also currently not profitable but is expected to be cash flow breakeven in 2H2023 and has more than sufficient cash to fund its operations till then.

    The broker has a buy rating and $2.50 price target on Nitro’s shares.

    TechnologyOne Ltd (ASX: TNE)

    A final tech share to buy according to Bell Potter is TechnologyOne. Unlike the others, it is a highly profitable enterprise software company. And thanks to its ongoing shift to a software-as-a-focus business model, it is expected to become even more profitable in the future.

    Bell Potter said:

    Technology One is a provider of ERP (enterprise resource planning) software to large corporates and government agencies in Australia, New Zealand, Asia Pacific and the UK. The key competitive advantage of the company is it has developed a fully integrated SaaS solution of its software and is now switching customers to this solution. The migration is now around three quarters complete and Technology One is starting to reap the benefits of greater recurring revenue and a higher margin. This combination will in our view drive double digit earnings growth for years to come and, as the migration of customers approaches 100%, we expect the multiple to rerate to that of a pure SaaS company.

    Bell Potter has a buy rating and $12.50 price target on TechnologyOne’s shares.

    The post Broker names 3 of the best ASX tech share to buy in FY23 appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of June 1 2022

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    Motley Fool contributor James Mickleboro has positions in Life360, Inc. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Life360, Inc. The Motley Fool Australia has recommended Nitro Software 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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  • Here are 2 top ETFs for ASX investors next week

    ETF written in gold with dollar signs on coin.

    ETF written in gold with dollar signs on coin.

    Exchange traded funds (ETFs) continue to grow in popularity. And it isn’t hard to see why.

    By investing in an ETF you can gain access to a large and diverse number of different shares that you wouldn’t ordinarily have access to. This can be a great way to invest diversely on a limited budget or bolster an already sizeable portfolio.

    With that in mind, listed below are two ETFs that could be worth looking at next week:

    iShares Global Consumer Staples ETF (ASX: IXI)

    The first ETF for investors to look at next week is the iShares Global Consumer Staples ETF.

    This ETF has been designed to give investors exposure to companies that produce essential products, including food, tobacco, and household items. As demand for these types of products is generally consistent whatever is happening in the economy, this ETF could prove a top option in the current uncertain environment.

    Among its 100+ holdings are the likes of Coca-Cola, Costco, Diageo, Nestle, Philip Morris, Unilever, Walmart, and Australia’s own, Coles Group Ltd (ASX: COL) and Woolworths Group Ltd (ASX: WOW).

    Vanguard MSCI Index International Shares ETF (ASX: VGS)

    Another ETF for investors to look at when the market reopens next week is the highly popular Vanguard MSCI Index International Shares ETF.

    If diversification is your aim, then it is hard to look beyond the Vanguard MSCI Index International Shares ETF. That’s because this ETF provides investors with access to a massive 1,500+ high quality companies from around the globe.

    The companies you’ll be owning a slice of with this ETF include the likes of Apple, Exxon Mobil, Johnson & Johnson, Mastercard, Meta Platforms, Nvidia, Pfizer, and Walt Disney.

    The post Here are 2 top ETFs for ASX investors next week appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Ishares Global Consumer Staples Etf right now?

    Before you consider Ishares Global Consumer Staples Etf, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Ishares Global Consumer Staples Etf wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of June 1 2022

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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 Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET and iShares Global Consumer Staples ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF. 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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