The Pendal Group Ltd (ASX: PDL) share price is bucking today’s sell-off with its shares rallying on the back of a profit surge.

Shares in the fund manager jumped 6.69% to $5.26 in late morning trade. The gain is even more impressive given that the S&P/ASX 200 Index (ASX: XJO) tumbled 2.2% to a near three-month low as investors dumped risk assets.

All sectors are trading in the red at the time of writing. But the Pendal share price was spared the carnage after it said its 1HFY22 underlying profit after tax [UPAT] increased by 59% over the same time last year to $131.4 million.

Pendal share price surges on profit growth

The group’s underlying earnings per share (EPS) expanded 34% to 34.3 cents and fee revenue improved 31% to $362.6 million.

The strong result was bolstered by the full six-month contribution from US investment management firm Thompson, Siegel & Walmsley (TSW). Pendal acquired the company in 2HFY21.

“We have seen TSW’s value strategies outperform in the past quarter and despite cautious US investor sentiment, TSW’s international strategies have seen inflows,” said chief executive Nick Good.

“The integration of TSW is tracking well… Execution of a coordinated sales strategy has begun, with cross-selling opportunities emerging.”

Expanding margins

Even if TSW was excluded, the group’s base management fee margins were slightly higher. Fee margins increased to 51 basis points (bps) compared to 49 bps in 1HFY21. This is due to the positive shift in Pendal’s revenue mix during the period.

Cost management also helped. Operating expenses may have increased by 20% to $209.6 million, but that’s still below revenue growth.

Most of the increase in expenses was also due to TSW. Otherwise, Pendal’s operating expenses would have risen by a more modest 4%.

Dividend and capital management

If that wasn’t enough to win over investors to the Pendal share price, the group upped its interim dividend by 24% to 21 cents per share. The dividend is on top of the $100 million on-market share buyback that management is currently undertaking.

Speaking on the result, Good added:

Pendal Group has delivered a solid first-half result in a tough environment for asset managers. We delivered healthy growth in revenue, underlying EPS, UPAT, and the interim dividend.

While continuing to invest in our business, we have taken a more disciplined approach during the period, in response to the current market environment and tempered investor confidence.

Lack of guidance isn’t hurting Pendal’s share price

However, if you were hoping for a more substantive outlook and guidance, Pendal will leave you wanting. Good didn’t say much except for a couple of motherhood comments about continuing to manage costs and delivering “investment excellence”.

On the other hand, given how volatile the environment is, you can’t blame management teams for being vague.

Even with today’s big rally, the Pendal share price is still nursing a close to 30% loss over the past year.

The post Pendal share price surges as profit soars 60% appeared first on The Motley Fool Australia.

More reading

• ASX shares are tumbling, but is it an actual stock market crash?
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• ‘Do not panic’: Experts explain how to stay calm and carry on investing amid rising interest rates
• Here are the 3 most heavily traded ASX 200 shares on Monday

Motley Fool contributor Brendon Lau 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 Core Lithium Ltd (ASX: CXO) share price is in the red today despite some promising drilling results.

The ASX lithium explorers shares are currently swapping hands at $1.12, a 2.2% fall. However, in earlier trade, the company’s share price plunged almost 11% to $1.02. For perspective, the  S&P/ASX 200 Index (ASX: XJO) is falling 2% today.

Meanwhile, Core Lithium is not the only ASX lithium share to descend today. The Lake Resources NL (ASX: LKE) share price is falling 4.8%, while Pilbara Minerals Ltd (ASX: PLS) is down 2.34%.

The S&P/ASX 200 Materials Index (ASX: XMJ) is sliding 2.7% in today’s trade, while the S&P/ASX 300 Metals and Mining Index (ASX: XMM) is gravitating 3%.

Let’s take a look at what could be impacting Core Lithium today.

What did Core Lithium announce?

The company has received final results from lithium exploration in 2021 at the Finniss Lithium Project in the Northern Territory.

Core reported “exciting results” from the Penfolds prospect. A highlight for the company was a high-grade intersect of 11m at 1.55% lithium oxide from 131m at drill hole SRC080. This included a zone of 7m at 2.06% lithium oxide.

Drilling also intersected spodumene-bearing pegmatite beyond the current mineral resource estimate at the BP33, Lees and Hang Gong prospects.

Further drilling at the Finniss project will continue in the coming month.

Management commentary

Core Lithium’s managing director Stephen Biggins said:

The highly prospective nature of these new lithium drilling results reflect the confidence Core has in delivering further significant resource growth from the Finniss Project that will add to our life of mine and our capacity to materially increase lithium production from northern Australia in the future to keep up with rapidly growing global demand.

Our prime directive is to deliver first production of high-quality lithium concentrate from the Finniss Project this year in the midst of a very high lithium price and high operating margin environment.

Core Lithium share price snapshot

The Core Lithium share price has exploded 375% over the past 12 months, while it has soared 93% in the year to date.

For perspective, the benchmark ASX 200 has lost 2% over the past year.

Core Lithium has a market capitalisation of about $1.89 billion.

The post Core Lithium share price dips despite ‘exciting results’ appeared first on The Motley Fool Australia.

More reading

• Why is the Novonix share price down 6% on Friday?
• Why is the Core Lithium share price tracing 6% lower on Friday?
• Investing in ASX lithium shares? Here’s what you need to know
• Here are the top 10 ASX shares today
• 3 ASX 200 mining shares that surged more than 5% today

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 AUB Group Ltd (ASX: AUB) share price has returned to trading following the company’s institutional component update.

At the time of writing, shares in the insurance broker network are swapping hands at $18.62, down 16.73%.

AUB shares resume trading

It been a disappointing day for AUB shares, with investors selling their holdings amid the company’s successful equity raise.

In its release, AUB advised it has completed its institutional placement and institutional entitlement offer.

The accelerated pro-rata non-renounceable entitlement offer sees 1 share issued for every 5.2 AUB shares owned. Issued at a price of $19.50 apiece, both the placement and entitlement offer were significantly oversubscribed. The majority of eligible institutional security holders took up their allocated minimum entitlements on the latter.

Approximately 18 million new shares are to be issued under the equity raising, representing 24.1% of the current issued capital.

The newly created shares will be settled on 17 May, and available to trade on the following day.

With the institutional entitlement offer and placement now completed, the retail component will commence on 16 May.

Hoping to raise an additional $47 million, AUB will offer the same terms and ratio of shares to eligible retail shareholders. The Retail Entitlement Offer is expected to close on 27 May.

AUB’s total equity raising (being the placement and entitlement offer) is $350 million.

The company recently entered into a binding agreement with Tysers for a total consideration of around $880 million.

The acquisition will be funded from proceeds of the equity raising, a placement of $176 million (GBP100 million) of AUB shares to the vendor of Tysers, and a new $675 million multi-currency debt facility.

AUB group CEO, Mike Emmett commented:

We are very pleased with the strong support we have received from our institutional shareholders and welcome new investors to AUB as we undertake this important next step in our growth strategy.

Tysers will provide AUB with a direct platform to the Lloyd’s market, assisting AUB to continue our growth while enhancing our value proposition to our brokers and customers.

About the AUB share price

Trading along small and sharp share price movements, AUB shares have fallen by about 6% in the last 12 months. However, in 2022, the company’s share price is down by 25%.

AUB presides a market capitalisation of roughly $1.43 billion, with approximately 74.46 million shares on its books.

The post Here’s why the AUB share price is tumbling 16% today appeared first on The Motley Fool Australia.

More reading

• AUB share price halted amid $880 million acquisition

Motley Fool contributor Aaron Teboneras 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 Austbrokers Holdings 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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Commonwealth Bank of Australia (ASX: CBA) may not be delivering the best returns of the S&P/ASX 200 Index (ASX: XJO) banks in 2022, but it’s certainly outpacing the benchmark index itself.

The CBA share price is following the bulk of the market lower today, down 1.6% to $101 per share in late morning trade. This comes on the back of another day of heavy selling in US markets yesterday (overnight Aussie time), with the S&P 500 closing down 3.2%.

Today’s selling also sees the CBA share price dip into the red for the calendar year, down 1.1%.

While that’s not the result investors would like to see, it’s well ahead of the 8.3% year-to-date loss posted by the ASX 200. And let’s not forget that CommBank also paid out a $1.75 fully franked interim dividend on 30 March.

So why is the big bank outpacing the index?

Rising rates offering tailwinds to financial shares

One of the biggest factors dragging on ASX shares is the realisation that inflation around the Western world is above central banks’ target zones, ushering in a long dormant scenario of rising interest rates.

Higher rates increase the costs of tomorrow’s money. And the spectre of a series of rate hikes has hit high growth tech share the hardest. The S&P/ASX All Technology Index (ASX: XTX), for example, is down 33% in 2022.

But the CBA share price has weathered the storm a lot better, alongside most financials. While still down for the year, the S&P/ASX 200 Financials (ASX: XFJ) has only lost 2.7%.

Part of that resilience is that financial shares are among the few sectors that can benefit from higher interest rates.

“Banks and financials tend to perform well in rate hike cycles, this is because higher interest rates are generally beneficial to banks since they allow them to earn more net interest income,” said eToro market analyst Josh Gilbert.

EY’s banking and capital markets leader, Tim Dring also pointed to higher rates offering a lift to the CBA share price and other bank shares:

While margin compression is likely to continue in the short term, the rising interest rate cycle should ease NIM [net interest margin] pressures and lead to improved profitability for the banks over the medium term.

But it’s not all smooth sailing ahead for the banks. “Ongoing economic risks point to continued uncertainty for the banking sector’s outlook,” Dring added.

And while higher rates do increase the banks’ lending margins, they could also result in an increase in bad debts and slower loan growth moving forward.

CBA share price snapshot

Though it’s just dipped into the red for 2022, the CBA share price remains up 6.2% over the past 12 months. That compares to a 2.9% loss posted by the ASX 200 over that same period.

The post Why is the CBA share price outpacing the ASX 200 in 2022? appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for ASX 200 bank shares amid rising interest rates?
• Is it too late to buy big bank ASX shares?
• Own CBA shares? Here’s what to expect when the bank reports next week
• Top brokers name 3 ASX shares to sell today
• What’s the outlook for the CBA share price in May?

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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S&P/ASX 200 Index (ASX: XJO) tech shares are being slammed on Tuesday after the Nasdaq Composite (NASDAQ: .IXIC) continued to tumble into market crash territory overnight.

The tech-heavy US-based index extended its slump in Monday’s session overseas, recording a 4.29% fall and bringing its losses for the last six weeks to 20.5%.

Seemingly in reaction, the S&P/ASX 200 Information Technology Index (ASX: XIJ) is plunging 1.25% at the time of writing, having sunk by almost 5% in early trading. It’s being dragged down by most of the ASX’s prominent tech shares.

For context, the ASX 200 is recording a 1.63% slip right now.

Let’s take a closer look at what’s going on with the Nasdaq Composite and its impact on ASX 200 tech stocks.

ASX 200 tech shares’ Tuesday tumble

ASX 200 tech shares are suffering after the US tech-heavy index tumbled amid continued concerns about rising interest rates.

The Nasdaq Composite ended yesterday’s session in the red, as did the S&P 500 Index (SP: .INX) and the Dow Jones Industrial Average Index (DJX: .DJI). The latter indexes fell 3.2% and 1.99% respectively on Monday.

Their continued downturn follows the US Federal Reserve’s decision to raise interest rates by 0.5% last week, according to reporting by Reuters.

Nasdaq giant Tesla Inc (NASDAQ: TSLA) was one of the index’s biggest weights overnight, recording a 9% fall.

Back on the ASX on Tuesday, the tech sector is being dragged down by Block Inc (ASX: SQ2). Its share price is tumbling 10.27%.

Meanwhile, stock in NextDC Ltd (ASX: NXT), Computershare Limited (ASX: CPU), Novonix Ltd (ASX: NVX), and Altium Limited (ASX: ALU) are recording drops of 4.6%, 2.6%, 2.2%, and 1.7% respectively.

Though, it’s not all dire among the ASX’s biggest tech stocks.

Shares in Life360 Inc (ASX: 360), Tyro Payments Ltd (ASX: TYR), and Iress Ltd (ASX: IRE) are leading the sector. They’re gaining around 3.9%, 2.4%, and 2.1% respectively.

The Xero Limited (ASX: XRO) share price is also in the green.

The ASX 200 tech sector has plummeted more than 23% since its most recent high in early April. It’s also more than 33% lower than it was at the start of 2022.

The post Technophobia? Why ASX 200 tech shares are getting hammered again appeared first on The Motley Fool Australia.

More reading

• 2 quality ASX shares to buy in this volatility: experts
• Why is the Block share price plunging 11% on Tuesday?
• Unprecedented: Does this event mean we’re now in a bear market?
• 5 things to watch on the ASX 200 on Tuesday
• Xero share price slumps to lowest price since 2020. Broker tips 50% upside

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Block, Inc., Life360, Inc., Tesla, Tyro Payments, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Block, Inc., WiseTech Global, and Xero. 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 Insurance Australia Group Ltd (ASX: IAG) share price is in the green in the past month, but could it go higher?

IAG shares have jumped more than 6% since market open on 11 April and are currently trading at $4.63 apiece. That’s up 0.22% on yesterday’s closing price. For perspective, the S&P/ASX 200 Index (ASX: XJO) is down 2.27% at the time of writing.

Let’s take a look at the outlook for this insurance company.

Could the IAG share price go higher

Wilsons analysts have named IAG as a ‘defensive growth’ share that could be a buy in turbulent times.

In a memo to clients, the team predicted the next couple of months will be edgy as rates rise. Wilsons said:

The narrative has changed slightly over the last month with defensives starting to outperform the market.

Our picks are healthcare, insurance and telco.

IAG was named specifically by Wilsons. Other defensive shares recommended included CSL Limited (ASX: CSL), Healthco Healthcare and Wellness REIT (ASX: HCW), and Telstra Corporation Ltd (ASX: TLS).

The IAG share price climbed 3.65% in the month of April, outperforming the ASX 200 index. As my Foolish colleague Brooke reported recently, IAG offers a dividend reinvestment plan (DRP). This provides shareholders the opportunity to receive IAG dividends as new shares instead of cash.

Share price snapshot

Despite falling 10% in the past year, the IAG share price has jumped more than 8% year to date.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has slumped 3% in the past year.

IAG commands a market capitalisation of around $11.3 billion based on the current share price.

The post The IAG share price has gained 6% in a month. Is this just the beginning? appeared first on The Motley Fool Australia.

More reading

• 4 ‘defensive growth’ ASX shares to buy in turbulent times: Wilsons
• Does IAG have a dividend reinvestment plan?
• What happened to the IAG share price in April?
• How does the IAG dividend compare to QBE?
• The IAG share price has lost 10% since February. Is it an opportunity?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has positions in and has recommended Insurance Australia Group Limited and Telstra Corporation 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.

2022 has been ugly for the stock market, and after a volatile week to start out the month of May, investors came back to Wall Street on Monday without much in the way of confidence. As of 12:30 p.m. ET, the Nasdaq Composite (NASDAQINDEX: ^IXIC) was down another 2.7% after having been down even further earlier in the day.

The rout in technology stocks and other high-growth companies continued on Monday, as investors kept focusing on the potential impact of higher interest rates on long-term growth and economic conditions. However, other financial markets have also seen pressure from the current macroeconomic and geopolitical situation. Cryptocurrencies were a big loser on Monday as well, and as you’ll see in more detail below, those declines had a negative impact on crypto stocks Coinbase Global (NASDAQ: COIN) and MicroStrategy (NASDAQ: MSTR).

Why crypto weighed on the markets

Cryptocurrencies were broadly lower, even among the most popular and highest-profile digital assets. Bitcoin (CRYPTO: BTC) dropped nearly $2,300 to $32,300, while Ethereum (CRYPTO: ETH) was down more than $150 to fall below the $2,400 mark. Losses for smaller digital assets were even more pronounced, with Shiba Inu and Polkadot falling more than 14%.

Part of the problem with the crypto market is that it has been highly correlated to the fortunes of the Nasdaq lately. Because blockchain has substantial technological elements to it, it’s natural for investors to think of it as having similar prospects to other types of cutting-edge technology. With the Nasdaq having so many of those high-growth tech stocks, it makes sense that correlations could be high.

Yet there were also some crypto-specific issues that hit markets over the weekend. In particular, the stablecoin TerraUSD caused ripples across the asset class when it briefly lost its peg to the U.S. dollar. That sent the value of the related Luna cryptocurrency plunging, and it remains down almost 14% Monday afternoon. If investors can’t count on stablecoins being freely exchangeable for their corresponding amount of fiat currency, cryptocurrency markets face a challenge they’ll have to resolve in order to attract more mainstream adoption.

Companies counting on crypto

The ripple effects of cryptocurrency fluctuations weighed on stocks of companies that rely on healthy market conditions for digital assets. Coinbase has become one of the most prominent cryptocurrency exchanges in the global market, but it relies on transaction volume to drive much of its revenue. With sales based on percentages of total trades, adverse market conditions that force crypto traders to cut back on their buying and selling have a direct negative impact on Coinbase’s health. That’s a big part of why the stock is down more than 15% Monday afternoon.

In addition, some companies have turned to Bitcoin and other digital assets as alternatives to U.S. dollar cash holdings. MicroStrategy in particular has become famous for its devotion to Bitcoin, holding 129,218 tokens as of March 31. Today’s losses alone work out to more than $250 million in reduced value for MicroStrategy, and given that the company has taken on leverage to buy more cryptocurrency and has a market capitalization of just $2.7 billion, the volatile fluctuations in Bitcoin’s value create substantial financial risk if crypto prices don’t reverse higher in short order. Shares of MicroStrategy were down 19%.

Many investors have dismissed cryptocurrencies as poor alternatives to other investment assets. However, even if you don’t hold crypto yourself, the market has become large enough that disruptions can have impacts on other financial markets. That makes it important to keep your eyes on the cryptocurrency arena as you try to put together the best portfolio for your needs. 

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

The post Why these 2 Nasdaq crypto stocks are getting crushed today appeared first on The Motley Fool Australia.

More reading

• Why Bitcoin, Ethereum, and Coinbase Jumped Today
• The Betashares Crypto Innovators ETF has dumped 23% in a month. Is it now a bargain?

Dan Caplinger 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 Bitcoin, Coinbase Global, Inc., Terra and Ethereum. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended MicroStrategy. The Motley Fool Australia owns and has recommended Bitcoin, Ethereum and Luna. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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The Flight Centre Travel Group Ltd (ASX: FLT) share price has seen its fair share of ups and downs since the S&P/ASX 200 Index (ASX: XJO) travel share first listed in December 1995.

The biggest down, as you’re likely aware, came in the month following the onset of the global pandemic in early 2020.

But when was the best day ever for the Flight Centre share price?

Flight Centre share price closes for all-time high

That day was 20 August, 2018.

By the time the closing bell rang the Flight Centre share price stood at $69.36, a long way from the current price of $20.13.

Investors at the time were rewarding the company for record full-year financial results for 2018, released the prior week. Those results included all-time high underlying profits before tax of $384.7 million, up 17% from the prior year and 2% higher than Flight Centre’s previous record profits from FY 2014.

The ASX 200 travel share also reported a record total transaction value (TTV) of $21.8 billion for FY 2018. The company paid out a final dividend of $1.07 per share, which brought its full 2018 financial year dividend to $1.67 per share.

Flight Centre has not paid a dividend since the onset of the COVID crisis saw travel grind to a halt in early 2020.

How has the ASX 200 travel share faired recently?

While the Flight Centre share price is well off its all-time highs from August 2018, shares are up 27% over the past 12 months. That compares quite favourably to the 3% loss posted by the ASX 200 since this time last year.

However, some analysts are now cautioning that ASX travel shares look fully valued at current prices under current market conditions.

According to Neil Margolis, lead portfolio manager at Merlon Capital Partners (courtesy of the Australian Financial Review): “While pent-up demand might result in super-profits for travel stocks, most of this is already reflected in the share prices.”

The post When was the best ever day on the Flight Centre share price chart? appeared first on The Motley Fool Australia.

More reading

• Unprecedented: Does this event mean we’re now in a bear market?
• Leading brokers name 3 ASX shares to buy today
• Are ASX 200 travel shares already fully valued in May?
• These are the 10 most shorted ASX shares
• Top brokers name 3 ASX shares to sell next week

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 Flight Centre Travel 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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What a rollercoaster year it has been for the Zip Co Ltd (ASX: ZIP) share price.

From reaching an all-time high of $14.53 around 12 months ago to bottoming out to a multi-year low of 97 cents today.

To save you doing the math, that represents a fall of almost 94% if you invested at the peak. Which means, the Zip share price will need to rocket more than 900% to recover from the above losses.

Although the buy-now pay-later (BNPL) company’s shares have staged a mini comeback in the last hour, they are still 75% down compared to pre-pandemic levels.

What’s going on with Zip shares?

At the time of writing, Zip shares are down by 2.45% to 99.5 cents following turmoil across global markets.

The old age saying, “When America sneezes, Australia catches a cold” couldn’t be more right.

Over the last few days, Wall Street losses have heavily impacted the ASX. The S&P/ASX 200 Index (ASX: XJO) is down over 5% for the past week alone.

Investors have pulled out of their investments over fears about rate hikes kicking off a global economic slowdown.

In particular, the S&P/ASX All Technology Index (ASX: XTX) has been hit hard, down roughly 10% since this time last week.

This has also put a squeeze on other similar companies such as mobile payment provider Block Inc CDI(ASX: SQ2), Splitit Payments Ltd (ASX: SPT), and Humm Group Ltd (ASX: HUM).

The Reserve Bank of Australia (RBA) lifted its official cash rate by 0.25% earlier this month.

Notably, this is the first time the RBA has increased its rates since the Julia Gillard era in November 2010.

While the official cash rate stands at 0.35%, it is widely expected there will be further rate hikes to come.

The RBA is using its tools to curb inflation which has risen 5.1% on an annualised basis.

What this means is that consumers are less likely to spend on discretionary items when interest rates are picking up. The cost of debt such as credit cards as well as personal loans will require extra payments, affecting consumer spending habits.

Zip share price summary

Over the past 12 months, the Zip share price is down 87%, with year to date down more than 77%.

Based on the current Zip share price, the company has a market capitalisation of around $670.08 billion.

The post It’s happened: Zip share price tumbled below $1 for first time since 2018 appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Over 20 million new Zip shares will soon be available to trade. What does this mean for the share price?
• Why is the Zip share price making a partial recovery this afternoon?
• Why ARB, AVZ, Temple & Webster, and Zip shares are sinking
• The Zip share price is plunging 9% today. Here’s why

Motley Fool contributor Aaron Teboneras 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. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. The Motley Fool Australia has recommended Humm 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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ASX growth shares that are increasing revenue, achieving higher profit margins, and growing their scale could be potential investment options to consider.

The current volatility may be opening up the opportunity to look at some businesses which are now at a cheaper value than at the start of 2022.

With that in mind, here are two ASX growth shares:

Lovisa Holdings Ltd (ASX: LOV)

The company describes itself as a “fast fashion” jewellery business. It has around 590 global stores across 22 markets.

Lovisa says it is investing in its structures to support future growth. It’s seeing “strong” digital growth and it’s going to keep investing in its digital operations. The company boasts about having a strong balance sheet, with no debt.

It’s going to keep expanding in its current markets such as the US and Europe. During the first half of FY22, it opened 42 net new stores. HY22 also saw sales growth of 36%. It sees opportunities to expand into new markets.

In the first half of FY22, the ASX growth share’s revenue rose by 48.3%, while gross profit increased 50.5% and net profit after tax (NPAT) jumped 70.3%. Lovisa said it has a strong focus on efficiencies while building structure to support the next stage of growth.

Growth has continued into the second half of FY22. Comparable store sales were up 12.1% in the first eight weeks of the second half, but total sales were up 61.7%.

The Lovisa share price closed is currently $14.97, 25% lower than it started the year.

Baby Bunting Group Ltd (ASX: BBN)

Baby Bunting is a retailer that describes its purpose as to support new and expectant parents in the early years of parenthood.

The company has more than 60 stores. It is aiming for at least 100 stores in Australia and at least 10 stores in New Zealand. In the first half of FY22, it opened four new stores.

Baby Bunting sees private label and exclusive products as a way to attract customers as well as achieve a higher gross profit margin. In the first half of FY22, private label and exclusive products made up 44.5% of total sales.

Online sales are also responsible for a long and growing number of sales. First-half online sales increased by 32.6% to $56.8 million, accounting for 23.8% of total sales.

The company continued to grow and achieve operating leverage. Total sales increased 10%, gross profit increased 15.6%, and pro forma net profit after tax rose by 16.5% to $12.5 million. Its market share continues to grow, according to the company. The company also recently opened a new national distribution centre, helping it with costs and becoming more efficient.

The ASX growth share said it is assessing the broader $5.1 billion baby goods market “for future long-term growth opportunities”. It is also investing in its online offering and expanding its online range. It’s also reviewing its network plan to assess opportunities “given its sustained market share growth”.

Using the last two declared dividends, Baby Bunting has a trailing grossed-up dividend yield of 5.2%.

At the time of writing, the Baby Bunting share price is $4.13, 26% lower than at the start of 2022.

The post Are these 2 top ASX growth shares buys right now? appeared first on The Motley Fool Australia.

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Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Baby Bunting and Lovisa 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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