Is the Temple & Webster Group Ltd (ASX: TPW) share price a big opportunity after the company’s hefty price decline this year?

For readers that haven’t seen it, the Temple & Webster share price has dropped by 60% in 2022 to date.

A quick fall in the share price doesn’t necessarily mean that it’s going to rapidly recover.

However, some brokers think the Temple & Webster share price is now a very attractive opportunity, with price targets that imply significant potential upside over the next year.

Let’s have a look at some of those ratings.

Broker thoughts on the Temple & Webster share price

Credit Suisse currently rates the business as a buy, with a price target of $9.59. That suggests a possible rise of around 120% over the next year on the current price of $4.32. The broker thinks the business can keep growing at a good pace over time.

UBS is another broker that thinks the business is a significant opportunity. It has a buy rating and a price target of $8.20 on the company. That implies a potential rise of around 90%.

Morgan Stanley also has an enticing share price target. This broker rates the business as a buy, with a price target of $9. That suggests a possible rise of around 110%.

The brokers noted a recent trading update by the business.

Is the ASX share still growing?

When the ASX share announced its new website called The Build – where people can buy home improvement products – it also announced a trading update.

It said that in the period of 1 January 2022 to 30 April 2022, its sales had grown by 23% year on year.

With the growing revenue, Temple & Webster is putting that money straight back into the business for more growth, to improve the customer offering, and to increase the company’s operational capabilities.

For example, it said that it’s investing in data, personalisation, augmented reality, artificial intelligence, and logistics.

Temple & Webster says it is leveraging its leadership position to realise scale advantages. What is so good about scale? The company says increased scale provides cost advantages in product sourcing, logistics, and marketing.

By focusing on “exceptional customer service and a great delivery experience” it can drive repeat buying behaviour from customers. The company noted that in the first half of FY22, revenue per active customer grew by 10%, which was the sixth consecutive quarter of growth.

As noted by brokers, Temple & Webster is heavily focused on growth. When it released its HY22 result, the company said:

We will continue to reinvest operating leverage where it makes sense to do so, building strategic moats around the core business while investing into our new growth horizons.

Temple & Webster share price snapshot

Despite dropping heavily over 2022 so far, the Temple & Webster share price has gone up by 2.6% over the last month.

However, it is down 60% over the past 12 months. For comparison, the S&P/ASX 200 Index (ASX: XJO) is down around 5% this year to date and 1% over the past 12 months.

The post Do experts think the Temple & Webster share price is a massive opportunity? appeared first on The Motley Fool Australia.

More reading

• Expert reveals what to do with 4 ASX shares in trouble
• Here’s why I think these 2 ASX growth shares are top buys in May
• Could now be a great time to start investing in ASX shares?
• Why I think the Temple & Webster share price is in the buy zone right now
• 3 quality ASX All Ordinaries shares that defied today’s sell-off

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Temple & Webster Group Ltd. The Motley Fool Australia has recommended Temple & Webster Group 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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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 gives her thoughts on what to do with Appen, Redbubble, Cettire and Temple & Webster shares.

Cut or keep?

The Motley Fool: The Appen Ltd (ASX: APX) share price has halved over the past six months. What would you do with it?

Jun Bei Liu: Appen for me is very difficult to hold. We don’t hold Appen.

MF: Have you held it in the past?

JBL: A long time ago — years ago. In the early stage of the [COVID-19] pandemic, we took the profit because it was just too expensive. 

Every other tech, remember, was underperforming because the pandemic was hurting their supply chain and things, whereas this company was doing super well. So we just felt it was too expensive, the earnings multiple. So we sold it. 

I think this company is very difficult to hold because the earnings keep disappointing. Whether it’s really caused by the COVID disruption or whether it’s just large. Those large tech companies are really cutting back on some of the spends. 

Quite a few articles overseas have talked about all the tech companies now cutting staff. Even those larger venture capital companies in the Silicon Valley have told all their portfolio companies to watch their spending. So I think anyone [who] operates in that whole tech supply chain, is going to experience pretty tough environments. So I think for me, that’s difficult to hold, you’ll be selling it.

We did have a takeover offer [recently]. It didn’t last long — put on the table and then withdrawn. So, yes, there is opportunity for M&A. It is the largest player in that whole space. 

But it’s just hard to invest something for M&A to come through. It just didn’t work, what my kids would call “‘sus”. It just looked… not great. So I think investors would need more fundamental evidence to hold this one.

The Motley Fool: Luxury goods retailer Cettire Ltd (ASX: CTT) has lost almost 90% of its valuation this year. What do you think?

JBL: Unfortunately, this company was listed during the hey times of e-commerce and things. I do think it’s a great little business. It’s got great brands. 

And I do think demand for luxury goods is very defensive. We always see during tough times with a recession or really tough times, luxury good sales always goes up.

MF: Is that right? I would have instinctively thought luxury goods would be the definition of discretionary, but it’s interesting that you say it stays stable in tough times.

JBL: Very strong, very defensive. They’re very stable. 

But look, if you look across Europe, back then there was a lot of Russian spend. So clearly the war’s going to make it tough. So, there might be some differences. And back then, there’s a lot of Chinese consumers always buying things when they go on discount. [But] luxury spend is always really stable and defensive. 

But for this company, the challenge is the COVID. There’s been huge amount of spend by consumers online. Now we’re cycling some of those numbers, all the e-commerce companies are going through such a struggle, just because we’re cycling some really big numbers.

On a longer term view, I think these businesses will do very well. It’s just over the next couple of years, the earnings will have to re-base and all the companies used to make very skinny return on equity. 

All of these numbers have increased significantly during COVID, but these margins have to contract because competition will pick up in the next 12 months when things get tougher. So my view is that space is really hard. I would hold it, but I’m not sure about buying more at this point. The competition for online retail is going to be tough. This is also not to mention, I think, the outlook for Australian consumers. It does look a little bit tougher as well with rising interest rates, rising energy prices, rising cost of living, it’s going to be tough.

MF: The third one is Redbubble Ltd (ASX: RBL), which might be in a similar situation?

JBL: Yeah. I think Redbubble is an identical situation. 

Redbubble even more so because quite a large part of its business was selling [face] masks. I think during the peak of the pandemic, it was something like 20% of its earnings was masks. And clearly that’s going to come off. 

Now the management’s done a good job, trying to diversify into other things. It’s just that, you’re cycling some really strong comparable periods and management just can’t commit to what it looks like. They don’t know what it looks like and the competition will pick up. So that one is a lot harder to really have a high conviction of, because [we] don’t know what the future categories might be.

MF: It’s unfortunate with these marketplace-type companies, the barrier to entry isn’t that high, is it?

JBL: That’s right. So I think what’s important though, for these companies, it’s very important for them to keep reinvesting in brands, because, if you don’t have a brand, you don’t have anything — because anyone can set up an internet website. 

I actually think during this whole pandemic period, I really think that Temple & Webster Group Ltd (ASX: TPW) will come through really strongly. They managed to get to number one in their online furniture, homeware category.

Yes, the margin’s going to come back, but that’s the one I’ll be looking really to buy more of when the share price does become weaker.

The post Expert reveals what to do with 4 ASX shares in trouble appeared first on The Motley Fool Australia.

More reading

• Why A2 Milk, Appen, Magellan, and Tyro shares are dropping today
• ASX 200 midday update: Magellan smashed, Liontown signs Tesla deal
• Appen and PolyNovo tumble after being kicked out of the ASX 200 along with these shares
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Tony Yoo has positions in Appen Ltd, Cettire Limited, REDBUBBLE FPO, and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Appen Ltd, Cettire Limited, REDBUBBLE FPO, and Temple & Webster Group Ltd. The Motley Fool Australia has recommended Cettire Limited and Temple & Webster Group 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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If you’re looking to boost your income portfolio in June, then you may want to look at the shares listed below.

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

Bank of Queensland Limited (ASX: BOQ)

The first ASX dividend share that could be a top option for income investors is big four challenger Bank of Queensland.

This regional bank has been tipped as a buy by analysts at Morgans with an $11.00 price target. This is due to the early success of its transformation program, its above-system growth, and cost synergies from the recent ME Bank acquisition.

As well as decent upside, Morgans is expecting the bank’s shares to provide investors with big dividends in the coming years.

The broker is forecasting fully franked dividends per share of 49 cents in FY 2022 and then 54 cents per share in FY 2023. Based on the current Bank of Queensland share price of $7.51, this will mean yields of 6.5% and 7.2%, respectively.

Telstra Corporation Ltd (ASX: TLS)

Another ASX dividend share that has been rated as a buy is Telstra.

This is due to optimism over the telco giant’s outlook thanks to the successful execution of its transformative T22 strategy and the upcoming growth focused T25 strategy.

Telstra is expecting the latter to support mid-single digit underlying EBITDA and high-teens underlying earnings per share compound annual growth rates (CAGR) from FY21 to FY25.

Ord Minnett is positive on the company and recently put a buy rating and $4.85 price target on the company’s shares. The broker believes that the company is well-placed to achieve the aforementioned growth targets thanks partly to the recently announced mobile plan increases.

The broker continues to expect the telco to pay fully franked dividends per share of 16 cents for FY 2022 and FY 2023. Based on the current Telstra share price of $3.89, this implies yields of 4.1%.

The post Analysts name 2 top ASX 200 dividend shares to buy right now appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for the Telstra share price in June?
• Is the Telstra share price in the buy zone after the telco giant’s mobile plan increases?
• Why did the Bank of Queensland share price fall 7% in May?
• What’s dragging on ASX 200 bank shares like NAB on Thursday?
• Here are the top 10 ASX shares today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended 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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On Monday, the S&P/ASX 200 Index (ASX: XJO) was out of form and dropped into the red. The benchmark index fell 0.45% to 7,206.3 points.

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

ASX 200 expected to edge lower

The Australian share market looks set to edge lower on Tuesday ahead of the key Reserve Bank meeting. According to the latest SPI futures, the ASX 200 is poised to open the day 8 points or 0.1% lower. On Wall Street the Dow Jones edged higher, the S&P 500 rose 0.3%, and the Nasdaq climbed 0.4%.

Reserve Bank meeting

It is the first Tuesday of the month, which means the Reserve Bank of Australia will be meeting this afternoon to decide on the cash rate. According to the latest Westpac Banking Corp (ASX: WBC) weekly economic report, its team are expecting the central bank to increase the cash rate by 40 basis points from 0.35% to 0.75%. It notes that this “would be fully unwinding the emergency rate cuts we saw in 2020 during the Covid crisis.”

Oil prices edge higher

Energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch after oil prices edged higher overnight. According to Bloomberg, the WTI crude oil price is up slightly to US$88 a barrel and the Brent crude oil price has risen 0.1% to US$119.88 a barrel. Oil prices after Saudi Arabia lifted its crude prices for the month of July.

Gold price drops

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a subdued day after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.3% to US$1,844.8 an ounce. A stronger US dollar weighed on the precious metal.

Domino’s rated neutral

The Domino’s Pizza Enterprises Ltd (ASX: DMP) share price could be a hold according to analysts at Goldman Sachs. This morning the broker has responded to the pizza chain operator’s Asian update by retaining its neutral rating and $89.90 price target. Goldman notes that no outlook changes were announced. It continues to target 2,000 stores in Japan, 400 in Taiwan, and 6,650 globally.

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

More reading

• Transurban share price hit by broker downgrade
• Here are the 3 most traded ASX 200 shares on Monday
• 3 ASX 200 energy shares cracking new 52-week highs on Monday
• What’s on the cards for the Beach Energy share price in June?
• Do Novonix shares pay dividends?

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 recommended Dominos Pizza Enterprises 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 200 tech shares are starting the week in the red, following a similar trend to the United States.

The S&P/ASX All Technology Index (ASX: XTX) dropped 1.75% today to finish at 2043.2 points. In comparison, the S&P/ASX 200 Index (ASX: XJO) fell 0.45% today.

Zooming in on the ASX tech sector, we see that Wisetech Global Ltd (ASX: WTC) was 2.33% lower at the close of trade today. The same story played out for Block Inc (ASX: SQ2), Altium Ltd (ASX: ALU) and NEXTDC Ltd (ASX: NXT), down a respective 3.18%, 2.01% and 1.99%.

So why did ASX 200 tech shares have such a bad day?

US tech shares slide

Tech shares in Australia have followed in the footsteps of their US counterparts. The Nasdaq-100 Technology Sector Index (NASDAQ: NDXT) dropped 2.81% in the US on Friday, its most recent day of trading.  

Microsoft Corporation (NASDAQ: MSFT) shares fell 1.66%, while Meta Platforms Inc (NASDAQ: FB) dropped 4.06%. Tesla Inc (NASDAQ: TSLA) shares plummeted a whopping 9.22%, and the Apple Inc (NASDAQ: AAPL) share price shed 3.86%.

Investors in US tech stocks appear to have reacted after high-profile Tesla CEO Elon Musk claimed he had a “super bad” feeling about the economy.

Further to this, the US job market tightened, fuelling speculation of further rate hikes, the Canberra Times reported. Chief ADP economist Nela Richardson was quoted as saying:

The market is trying to funnel its response through what the Fed may or may not do.

Meanwhile, back home, former technology darling Appen Ltd (ASX: APX) was booted out of the ASX 200 index today. The company’s share price dropped 3.28%.

Share price snapshot

The All Technology Index has dropped 24% over the 12 months, while it is trading 32% higher year to date.

The index has shed nearly 10% in the past month, and it has dropped 1.59% in the past week.

The post Why did ASX 200 tech shares fall today? appeared first on The Motley Fool Australia.

More reading

• Why is the Block share price tanking 5% on Monday?
• These are the 10 most shorted ASX shares
• Why Altium, Fortescue, PeopleIn, and REA shares are storming higher
• 3 ASX 200 shares swimming in billions, besides banks and miners
• Why are ASX 200 tech shares having such a cracking Friday?

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium, Apple, Block, Inc., and WiseTech Global. 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 Block, Inc. and WiseTech Global. The Motley Fool Australia has recommended Apple. 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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Investors keep winding up the commodity trade in 2022 with several ASX mining shares surging more than 20% during Australian market hours on Monday.

Despite the S&P/ASX 300 Metals & Mining Index (ASX: XMM) sliding more than 109 basis points today, these three ASX miners outpaced the rest of the pack.

Culpeo Minerals Ltd (ASX: CPO)

Shares in Culpeo Minerals exploded into the green on Monday, clipping a gain of more than 193% to finish the day. Investors bid up the miner’s share price after a company announcement on its Lana Corina Copper Project.

Culpeo advised it has intersected a record 173 metres at 1.05% copper and 50 parts per million of molybdenum. Results also confirmed the mineralisation continues at depth.

“The intersection of 173 metres of copper mineralisation at a grade of 1.05% is the highest-grade intercept to date from the ongoing drilling program,” CEO Max Tuesley said.

Copper has spiked back north in recent weeks and is now more than 5% higher on the month at US$4.41/lbs.

Firetail Resources Ltd (ASX: FTL)

The Firetail share price spiked more than 21% higher on Monday and closed the session at 36.5 cents. Despite no market-sensitive news for the company, investors bid up its share price at pace today.

The price of copper has raced higher in recent weeks as well, helping to drive shareholder returns for the company. Meanwhile, the gold price has stabilised at US$1,855 per troy ounce, after incurring heavy losses in recent weeks.

After making its debut in April, Firetail has traded off its IPO price and slipped 6% into the red this past month of trade.

However, investors appears to be buyers at these price levels, with today’s gain occurring on a trading volume more than three times the four-week average.

Encounter Resources Ltd (ASX: ENR)

Shares in Encounter Resources were also net winners today, securing a 29% lift at the closing bell.

Despite trading down in recent weeks, investors rallied the Encounter Resources share price after an update at its Sandover project in the Northern Territory.

The company said on Friday:

Additional surface sampling and field reconnaissance completed at Sandover in April 2022 confirmed further areas of surface copper oxide mineralisation.

The potential for lithium and other critical metals will be investigated in conjunction with copper exploration activities [at the site].

News of the update have sent Encounter shares well into the green with investors still looking to capture gains as part of the wider commodity and energy trade.

In the last 12 months, the company has secured a 14% gain after spiking more than 16% this year to date.

The post These 3 ASX mining shares surged more than 20% on Monday appeared first on The Motley Fool Australia.

More reading

• Guess which ASX mining share just rocketed 100% on a record find

Motley Fool contributor Zach Bristow 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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Experts are always on the lookout for ASX shares that could be opportunities. June 2022 could be a good month to go looking for some of those potential ideas.

Businesses that are expected to achieve profit growth over the long-term could be good picks. Brokers often like to assign a price target to businesses – that’s where they think the share price could be. The bigger the price target, the more that potential business could rise, if the broker is right.

Companies aren’t necessarily going to do well just because a broker thinks it’s good value, but the long-term could be promising with the plans the companies have.

Let’s look at a couple of these beaten-up ASX shares that could be opportunities.

Accent Group Ltd (ASX: AX1)

This business is one of the largest footwear retailers in Australia. It owns some brands and acts as the distributor for others.

Some of the brands that the business sells include The Athlete’s Foot, CAT, Dr Martens, Glue Store, Hoka, Kappa, Merrell, Skechers, Stylerunner, Trybe, Timberland, and Vans.

The broker UBS is one of the brokers that rates the Accent share price as a buy with a price target of $2.50. That suggests a possible rise of more than 80% over the next year.

UBS thought the recent trading update was better than expected and the profit margin may be improving.

The ASX share noted in its business update that sales performance from late February 2022 had improved compared to the 10% fall of like for like sales in the first eight weeks of the second half of FY22.

Accent also said that it has continued to focus on a full price, full margin sales strategy, which has driven an improved gross profit margin, which was ahead of both expectations and last year.

The company is taking a number of actions to grow profit, including growing its store network and growing online sales.

According to UBS, the Accent share price is valued at 9 times FY23’s estimated earnings with a potential grossed-up dividend yield of 14% in FY23.

City Chic Collective Ltd (ASX: CCX)

City Chic is another ASX share that has seen a significant decline in recent months.

This business owns a variety of brands that are targeted at plus-size women. Australia, the UK and the US are three key target markets for the business with its City Chic, Evans and Avenue businesses.

One of the brokers that really rates City Chic is Macquarie, which has a price target of $6.70 on the business. That implies a possible rise of over 200%, though many other brokers have lower (but still positive) price targets.

Macquarie points out that City Chic’s sales growth remains strong, partly as a result of the company ensuring a good inventory position. The broker thinks the business can keep growing.

At the end of April 2022, the ASX share said that in the second half to date it had achieved total sales growth of 25%, with USA total sales growth of 47%. Global partner sales growth was 465%.

The ASX share pointed out that the plus-size market is forecast to grow by around 7% per annum.

According to Macquarie, the City Chic share price is valued at 12 times FY23’s estimated earnings and it could pay a grossed-up dividend yield of 9.1% in FY23.

The post Are these 2 beaten-up ASX shares too cheap to ignore in June 2022? appeared first on The Motley Fool Australia.

More reading

• Top broker tips Accent share price to deliver 65% upside AND juicy dividends
• 2 excellent ASX dividend shares that experts rate as buys
• Why are ASX 200 retail shares climbing on Friday?
• What’s the outlook for ASX 300 retail shares in June?
• 2 ASX growth shares to buy this month: experts

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

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The Aussie Broadband Ltd (ASX: ABB) share price has slumped this year, but could it have better days ahead?

The broadband provider’s share price has slid 20% year to date. At the close of trade on Monday, the company’s shares finished down 4.77% at $3.79.

So what is the outlook for Aussie Broadband?

Could the Aussie Broadband share price go higher?

Aussie shares climbed 17% from the first trading day of the year to 29 April before plunging dramatically at the start of May. They shed 28% alone on 2 May after the release of the company’s quarterly results.

Despite this, some analysts predict the company’s share price could take a turn for the better.

Ord Minnett recommends shareholders buy Aussie Broadband and has placed a $5.10 price target on it. This is a nearly 34.5% upside on the current share price.

Analysts claim industry data shows the company has increased its market share, as my Foolish colleague James reported.

The team at Jeffries also rates the Aussie Broadband share price as a buy with a $5 price target in early May. However, the broker cut its total broadband subscription forecast from 595,000 to 586,000.

In recent news, Aussie Broadband has opened a new national warehouse in Perth to deliver services faster across Western Australia. Managing director Phillip Britt noted this would save the company time and money:

It’s also cheaper to send items directly from the Perth warehouse to our customers in WA, rather than from our Morwell distribution centre in regional Victoria.

In the third quarter of FY22, Aussie Broadband reported a 47% year-on-year increase in broadband services to 548,911. Total services lifted 42% to 697,083, including voice, mobile and Fetch.

However, the company downgraded the guidance on its full-year earnings to between $27 million and $28 million. Previously, the company had forecast an earnings before interest, tax, depreciation and amortisation (EBITDA) of between $27 million and $30 million.

Share price snapshot

The Aussie Broadband share price has rocketed nearly 36% in the past year, but it is down 5.5% in the past month.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has lost 1.2% in the past year.

Aussie Broadband has a market capitalisation of $945.74 million based on its current share price.

The post Down 20% in 2022, is the Aussie Broadband share price a no-brainer buy? appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• These ASX 200 companies just lost market share to a small-cap rival
• 3 quality ASX All Ordinaries shares that defied today’s sell-off

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Aussie Broadband Limited. The Motley Fool Australia has recommended Aussie Broadband Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Flight Centre Travel Group Ltd (ASX: FLT) share price has struggled over the last 30 days while that of its S&P/ASX 200 Index (ASX: XJO) travel peer Webjet Limited (ASX: WEB) has outperformed.

The Flight Centre share price is currently 1.6% lower than it was this time last month, trading at $20.63.

In that time, stock in Webjet has gained 6.7% to trade at $6.14.

For context, the ASX 200 has traded relatively flat over the last 30 days, gaining just 0.16%.

So, why have the ASX travel shares – which both recently announced their return to profitability – traded in such different directions lately? Let’s take a look.

Is this going wrong for the Flight Centre share price?

There are a few possible reasons behind the differing performances of the Flight Centre share price and that of Webjet.

Firstly, the companies currently have varying short positions.

Flight Centre shares are trading with a 16.2% short position, according to the most recent data available.

That’s fallen by nearly 1% over the last month. However, the dip isn’t nearly enough for the company to shake its title of the ASX’s most shorted share.

Of course, such high short interest means many market participants are effectively betting against the company’s COVID-19 recovery.

Meanwhile, Webjet has a smaller – though, still meaningful – 9.4% short interest.

Thus, more short sellers appear dubious of Flight Centre share price’s future. Could that be due to brokers’ outlook for the respective ASX travel stocks?

What do the experts say?

Back in February, The Motley Fool Australia reported that Goldman Sachs believed Webjet was a better buy than Flight Centre.

The broker saw growth potential in the former’s business to business (B2B) and business to customer (B2C) markets.

And now, an equity analyst from Citi has reportedly expressed similar sentiments.

Citi’s Samuel Seow believes Webjet is the best ASX 200 travel buy while Flight Centre is the worst, The Australian reported.

The analyst is said to like Webjet’s business model and B2B segment. Meanwhile, Flight Centre was reportedly tipped to face headwinds from a slow uptick in Australian international volumes and ‘visiting friends and relatives’ travel.  

Citi reportedly has a $15.55 price target and a ‘sell’ rating on Flight Centres shares. Meanwhile, it’s said to have delivered Webjet’s stock a $6.94 price target and a ‘buy’ rating.

The post Why is the Flight Centre share price trailing Webjet lately? appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Could the current Webjet share price offer a 25% upside?
• Experts name 2 top ASX growth shares to buy in June
• These are the 10 most shorted ASX shares
• The Flight Centre share price is soaring 3% today. Could this be behind its gains?

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Goldman Sachs. The Motley Fool Australia has recommended Flight Centre Travel Group Limited and Webjet Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The silent killer of purchasing power, inflation, has been on full display in recent months. As rapidly ascending prices for goods and services push inflation to multi-decade highs, the remedy of higher interest rates has weighed on ASX shares. Although, a company featuring in the All Ordinaries Index (ASX: XAO) might buck the trend.

Best & Less Group Holdings Ltd (ASX: BST) is a value-oriented clothing retailer in Australia. Shares in the company have struggled since listing on the ASX last year. On a year-to-date basis, the Best & Less share price is down 36%.

However, there are hints that perhaps an inflationary environment can be a positive for companies like Best & Less.

Inflation-fighting within the ASX All Ords

Unlike other ASX-listed retailers, Best & Less focuses on value-conscious consumers. This strategy has proven well for the company over recent years, generating more than $600 million in revenue. But, this could be primed for a boost.

In November last year, data from Facteus indicated a 65% increase in discount store spending compared to the same time last year. Since then, inflation has worsened — hitting a 41-year high of 8.5% in March in the United States. Meanwhile, Australia reached its highest level since 2009 with an annual increase of 5.1%.

Furthermore, US discount giants Dollar Tree Inc (NASDAQ: DLTR) and Dollar General Corp (NYSE: DG) released positive earnings results in May. Both companies enjoyed double-digit increases in their respective share prices following the news.

In an interview with the US’s National Public Radio, Harvard business professor Willy Shih explained the phenomena, stating:

I think it says that a lot of people in this country are feeling the effects of inflation and they are looking for lower prices. And when you’re looking for lower prices, that’s one of the places you go, especially a place like Dollar Tree, where you now know that everything costs $1.25. So if I’m trying to save money, that’s probably a good place to go.

It is possible Best & Less is an ASX All Ords share that could similarly benefit. On 4 May 2022, the company revealed sales were ahead in the fourth quarter compared to the prior corresponding period. If more consumers look to cut household costs, a value apparel option such as Best & Less might see increased spending.

What else?

As my colleague Tristan Harrison covered, Macquarie is expecting Best & Less to dish out a decent dividend. If analysts at the investment bank are right, shareholders could land a dividend that equates to a grossed-up yield of 16%.

The Best & Less share price is currently fetching $2.64 per share.

The post Could this ASX All Ords share be set to benefit from higher living costs? appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler 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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