Thursday is a rough day to be an ASX investor. The benchmark index – the All Ordinaries Index (ASX: XAO) – is currently 1.06% lower, tumbling for the second day in a row, but some shares are bucking the trend.

Today’s slump sees the index lower than where it ended last week and 6.7% lower than it was at the start of the year.

But not all ASX All Ordinaries shares are struggling on Thursday. Let’s take a look at what’s causing these three to outperform.

These ASX All Ordinaries shares are in the green on Thursday

Strike Energy Ltd (ASX: STX)

The Strike Energy share price is defying the All Ordinaries sell off to post an 11.21% gain today. Right now, the company’s stock is swapping hands for 32 cents apiece.

The oil and gas company’s gain comes on the back of multi-rate test results from its South Erregulla gas discovery.

Strike CEO and managing director Stuart Nicholls commented on the results, saying:

This excellent flow testing provides additional confidence that the Kingia gas discovery at South Erregulla is a large, productive source of low-cost, low impurity natural gas, and that it can form the foundation of Project Haber’s globally competitive nitrogen-based urea fertiliser.

Weebit Nano Ltd (ASX: WBT)

The gains exhibited by fellow ASX All Ordinaries share Weebit Nano are harder to explain. Right now, the company’s share price is $2.65, 6.85% higher than its previous close.

There’s been no news from the semiconductor developer to explain its surge. However, it’s worth noting its stock rocketed 7% on Monday before tumbling 9% over the course of Tuesday and Wednesday.

Tabcorp Holdings Limited (ASX: TAH)

Finally, the Tabcorp share price in the green for the first time this week, gaining 4.64% to trade at 95 cents.

Last week, the company split in two with its lottery and Keno business demerging to become ASX-listed The Lottery Corporation Limited (ASX: TLC).

Today, the new company’s shares are trading on a normal settlement basis for the first time after the scheme was officially implemented yesterday.

The post 3 ASX All Ordinaries shares defying the sell-off to surge higher appeared first on The Motley Fool Australia.

More reading

• Weebit Nano share price rockets 7% today. Here’s why.
• Here’s why the Strike Energy share price is zipping 10% higher today
• Why Bubs, IGO, Strike Energy, and Woodside shares are pushing higher
• These were the worst performing ASX 200 shares in May
• What’s dragging on the Tabcorp share price today?

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 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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If you’re looking for dividend shares to buy then you may want to look at the ones below that brokers are recommending.

Here’s what the brokers are saying about these ASX dividend shares:

BHP Group Ltd (ASX: BHP)

The first ASX dividend share to look at is BHP. It is of course one of the world’s largest mining companies.

It could be a top option for income investors thanks to its world class operations across a number of commodities and the huge free cash flow they are generating. This strong cash flow provides the Big Australian with the opportunity to reward shareholders with big dividends and consider M&A activities.

Analysts at Goldman Sachs are positive on the company and have just slapped a buy rating and $51.20 price target on its shares. The broker likes BHP due to its “attractive valuation & FCF, and upside from ~US$20bn Copper growth pipeline.”

In addition, the broker is forecasting fully franked dividend yields of 11% in FY 2022 and 8.9% in FY 2023.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share that could be a buy is banking giant NAB. It could be a top option thanks to its strong position in business banking and the acquisitions of digital bank 86 400 and Citigroup’s Australian consumer business.

The latter are expected to help NAB achieve scale in digital and consumer banking offerings.

The team at Macquarie is positive on NAB and has an outperform rating and $34.00 price target on the company’s shares. Macquarie likes the bank due to its strong balance sheet position and leverage to higher rates.

As for dividends, the broker is forecasting fully franked dividends per share of $1.46 in FY 2022 and $1.50 in FY 2023. Based on the current NAB share price of $31.24, this equates to yields of 4.7% and 4.8%, respectively.

The post 2 top ASX dividend shares to buy according to analysts appeared first on The Motley Fool Australia.

More reading

• What’s dragging on ASX 200 bank shares like NAB on Thursday?
• Top broker names 2 of the best ASX shares to buy in June
• Why is the ‘new’ Woodside share price leaping 6% today?
• Top broker tips BHP share price to jump 12%
• Cashed up with massive dividends: Advisor reveals ASX share to hold for 4 years

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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On a tough day for the S&P/ASX 200 Index (ASX: XJO) so far, ASX bank shares are among those seeing declines today.

The ASX 200 is currently down by 1.1%, while the S&P/ASX Financials Index (ASX: XFJ) is falling by 1.42%.

The big four ASX banks are all in the red at the time of writing. The Commonwealth Bank of Australia (ASX: CBA) share price is currently down 1.58%, Westpac Banking Corp (ASX: WBC) shares are tumbling 0.79%, the National Australia Bank Ltd (ASX: NAB) share price is dropping 0.94%, and the Australia and New Zealand Banking Group Ltd (ASX: ANZ) shares are down 1.38%.

Additionally, the Macquarie Group Ltd (ASX: MQG) share price is falling by 2.67%, and Bank of Queensland Limited (ASX: BOQ) shares are down 1.06%.

What’s going on with ASX 200 bank shares?

There are declines across many sectors on the ASX today as investors continue to wrestle with the effects of supply chain issues, inflation and what this means for interest rates.

While some analysts believe that rising interest rates could be helpful for bank net interest margins (NIM), there is still a lot of competition in the sector.

Additionally, analysis by brokers notes that some banks could face difficulties if financial stress in the commercial property sector kicks up.

Commercial property difficulties?

The Australian has reported on research done by Morgan Stanley which showed that the amount of stressed exposure faced by major banks to the commercial property sector could soar five or six times in a recession, with the GFC being used by the broker as a guide.

According to the broker, the big four ASX banks have a combined $311 billion of exposure to the commercial property sector. They also have a total of $43 billion of exposure to the construction industry, which is currently suffering.

It was reported that Westpac saw 3% of its group exposure in 2009 be classed as stressed, with 0.5% being impaired. However, things were much worse in the commercial sector space – 12.5% of exposures were stressed, including 26% of its exposure to developers.

Although, things are looking much better for Westpac at the moment. In Westpac’s FY22 half-year result, only 2% of the commercial property portfolio was stressed with 0.2% being impaired.

The Australian reported on comments made by the NAB CEO Ross McEwan that noted how vulnerable the construction industry was because of the difficulties relating to fixed-price contracts, supply chain problems, and higher costs. McEwan said:

It’s certainly one of the sectors that we are keeping a close eye on very recently.

A lot of them have been having some difficulties there so that is, as a sector, the most worrying part of our bank when we look across it.

We are yet to see that the economy is having difficulty…but as interest rates start to rise, we have to be conscious that there will be some customers who may have some difficulties.

Foolish takeaway

Time will tell what this means for the big four ASX banks and whether rising interest rates do lead to increased stress or not.

While the share prices of the big four ASX banks have recovered from the COVID lows, only NAB has risen noticeably over the last year, up 16%. Others have seen declines.

The post What’s dragging on ASX 200 bank shares like NAB on Thursday? appeared first on The Motley Fool Australia.

More reading

• 2 top ASX dividend shares to buy according to analysts
• What’s the outlook for the CBA share price in June?
• May wasn’t kind to the ANZ share price. Here’s what happened
• Why did the Westpac share price beat the ASX 200 in May?
• Why did the NAB share price go backwards in May?

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

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The ResMed Inc (ASX: RMD) share price has been having a tough time in 2022.

Since the start of the year, the sleep treatment company’s shares have fallen 22%.

Is the ResMed share price weakness a buying opportunity?

While the decline in the ResMed share price this year has been disappointing, one leading broker appears to believe investors should take advantage of it and buy shares.

According to a recent note out of Citi, its analysts have retained their buy rating but trimmed their price target on the company’s shares to $35.50.

Based on the latest ResMed share price of $28.41, this implies potential upside of 25% for investors over the next 12 months.

What did the broker say?

Citi notes that ResMed has been impacted by supply chain headwinds and has been unable to fully benefit from a major competitor recall.

In light of this and rising interest rates, it has trimmed its estimates and valuation of the ResMed share price. It explained:

We cut FY22-24E EPS by -7% / -5% / -7% on lower revenue expectations. Lower earnings, updated FX, and revised WACC of 7.2% (from 7%) to reflect the higher interest rates expectations result in a new target price of A$35.50 (from A$38.00).

Nevertheless, the broker remains positive. This is due to its attractive valuation and the broker’s belief that ResMed will permanently win market share from the Philips recall.

RMD is trading at PE of ~28x FY24E, below historical avg of ~32x. Maintain Buy. RMD cut its additional device guidance in FY22 by $100m to $200-250m due to the difficulty in sourcing semiconductors as it attempts to fill the void left by the Philips recall (whose device sales were ~US$800m pa).

We forecast $225m in extra sales (from US$360m) in FY22 – we expect this to continue in FY23 where we assume ~US$350m (from US$315m) of extra sales. Despite the short-term impact, we continue to expect ResMed will make a permanent 10% market share gain in devices due to the Philips’ recall.

The post Why the ResMed share price could jump 25% from current levels appeared first on The Motley Fool Australia.

More reading

• How to turn $20,000 into $180,000 in 10 years with ASX shares
• Why this broker says ResMed is an ASX 200 share to buy
• Why is the ResMed share price climbing today?
• Analysts name 2 profitable ASX growth shares with 40%+ upside
• Broker names 2 of the ‘best’ blue chip ASX 200 shares to buy now

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 recommended ResMed. The Motley Fool Australia has recommended ResMed 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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If you’re looking for a few new additions to your portfolio in June, then look no further.

Analysts at Morgans have picked out a number of ASX shares that they class as their best ideas for the month.

Below are two top ASX shares that the broker rates highly this month. They are as follows:

BHP Group Ltd (ASX: BHP)

Morgans thinks this mining giant could be a top option for investors this month. This is due to its strong balance sheet, diverse operations, and belief that it is a low risk option in the sector.

It explained:

We view BHP as relatively low risk given its superior diversification relative to its major global mining peers. The spread of BHP’s operations also supplies some defence against direct Covid-19 impact on earnings contributors. While there are more leveraged plays sensitive to a global recovery scenario, we see BHP as holding an attractive combination of upside sensitivity, balance sheet strength and resilient dividend profile.

Morgans has an add rating and $48.30 price target on BHP’s shares. This compares to the current BHP share price of $45.33.

Treasury Wine Estates Ltd (ASX: TWE)

Another ASX share that could be a top option in June according to Morgans is Treasury Wine. Its analysts believe the wine company’s shares are attractively price, especially given its positive growth outlook.

Morgans commented:

TWE owns much loved iconic wine brands, the jewel in the crown being Penfolds. We rate its management team highly. The company recently reported an impressive 1H22 result despite facing several material headwinds. The foundations are now in place for TWE to deliver strong double-digit growth from 2H22 over the next few years. Trading at a material discount to our valuation and other luxury brand owners, TWE is a key pick for us.

Morgans has an add rating and $13.93 price target on the company’s shares. This compares to the latest Treasury Wine share price of $11.71

The post Top broker names 2 of the best ASX shares to buy in June appeared first on The Motley Fool Australia.

More reading

• Why is the ‘new’ Woodside share price leaping 6% today?
• Top broker tips BHP share price to jump 12%
• Cashed up with massive dividends: Advisor reveals ASX share to hold for 4 years
• 5 things to watch on the ASX 200 on Thursday
• Top brokers name 3 ASX shares to buy 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 recommended Treasury Wine Estates 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 S&P/ASX 200 Index (ASX: XJO) is on course to record a disappointing decline. In afternoon trade, the benchmark index is down 0.95% to 7,165 points.

Four ASX shares that are falling more than most today are listed below. Here’s why they are dropping:

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price is down 5.5% to $3.49. This appears to have been driven by a broker note out of Citi. According to the note, its analysts have retained their sell rating and cut their price target on its shares to $3.65. Citi has reduced its earnings estimates for the coming years on the belief that the company’s costs are going to rise due to its direct sales model transition in North America.

REA Group Limited (ASX: REA)

The REA share price is down 3.5% to $109.35. This follows the release of the property listings company’s investor day update this morning. Investors don’t appear confident in management’s plan to deliver double-digit revenue and earnings growth in the coming years. The latter is despite management anticipating its Indian EBITDA losses to widen in FY 2023 before reducing in subsequent years.

Sayona Mining Ltd (ASX: SYA)

The Sayona Mining share price has dropped 5.5% to 17 cents. Sayona recently released the pre‐feasibility study (PFS) for the North American Lithium (NAL) operation in Canada. That PFS found that the operation has a pre‐tax net present value (NPV) of approximately A$1 billion based on a long run lithium spodumene price of US$1,242 per tonne. Given recent developments in the industry, investors may be doubting the price estimate its valuation is based on.

Zip Co Ltd (ASX: ZIP)

The Zip share price is down a further 5.5% to a new multi-year low of 79 cents. This follows broad weakness in the tech sector, with loss-makers like Zip among the hardest hit. This has led to the S&P/ASX All Technology Index losing 2.1% of its value this afternoon.

The post Why Nanosonics, REA, Sayona Mining, and Zip shares are dropping appeared first on The Motley Fool Australia.

More reading

• Why is the Zip share price sinking yet again on Thursday?
• Which ASX lithium shares are rebounding on Thursday, and which are not?
• Is this the real reason ASX lithium shares cratered on Wednesday?
• Is this a ‘fundamental flaw’ with ASX BNPL shares like Zip
• Why Allkem, Origin, PointsBet, and Zip shares are sinking 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 positions in and has recommended Nanosonics Limited and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Nanosonics Limited. The Motley Fool Australia has recommended REA Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The ETFS Battery Tech & Lithium ETF (ASX: ACDC) share price has been struggling this year, but has its downfall presented a buying opportunity?  

Experts flagged the exchange-traded fund (ETF) as worth looking at earlier this year. Let’s take a look at what the ETF has going for it – and against it – right now.

At the time of writing, shares in the ETFS Battery Tech & Lithium ETF will set an investor back $83.30 apiece.

What’s to like about ETFS Battery Tech & Lithium ETF?

The ETFS Battery Tech & Lithium ETF (ASX: ACDC) could be a good entry point for ASX investors interested in getting on board the lithium train without all the hassle.

That’s according to Saxo Markets strategists Jessica Amir, Redmond Wong, and Charu Chanana. They believe the ETF could help investors get an easy foothold in the decarbonisation movement.

“[I]f stock picking is not for you, and if you believe, like we do, that the electric vehicle industry and the critical minerals [and] commodities will continue to see rising demand, and policy support, and also benefit from the world striving to be carbon neutral by 2050, then you could invest or trade in … ETFS Battery Tech & Lithium ETF,” the strategists wrote in March.

However, this week’s ASX lithium sell-off might have some potential investors wary of the ETF.

As The Motley Fool Australia’s James Mickleboro reported this morning, ASX lithium shares’ Wednesday tumble – generally attributed to Goldman Sachs‘ bearish outlook – might have had a more permanent catalyst.

Instead, Chinese electric vehicle manufacturer, BYD, might have been behind much of yesterday’s sell-off.

The company is reportedly snapping up mines to provide all its lithium needs for the next 10 years. That would, presumably, see demand for the ‘white gold’ fall, potentially taking its value with it.

Though, it’s worth noting that the ETFS Battery Tech & Lithium ETF’s biggest holding is in BYD. It currently makes up 4.6% of the fund’s investments.

Therefore, it could be assumed that the bad news for lithium-producing stocks could be, in some way, good for the ETF.

Additionally, only 22.6% of its holdings are in the materials sector. Thus, lithium producers are a minority of its investments.

Therefore, some ASX investors might still agree with Saxo Markets’ view of the ETFS Battery Tech & Lithium ETF despite this week’s lithium sell-off

The post Down 14% in 2022, is the EFTS Battery Tech & Lithium EFT (ACDC) a buy? appeared first on The Motley Fool Australia.

More reading

• These 2 ASX ETFs are focused on ‘green’ technology
• 2 fantastic ETFs for ASX investors to buy next week
• Does the ETFS Battery Tech & Lithium ETF (ACDC) pay dividends?

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 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 Zip Co Ltd (ASX: ZIP) share price is facing another rocky day on the market today.

The company’s share price is currently trading at 79.3 cents, a 4.79% fall. For perspective, the S&P/ASX 200 Financials Index (ASX: XFJ) is slipping 1.30% at the time of writing.

Let’s take a look at what might be impacting the Zip share price.

Zip share price falls

Zip shares are falling, but they are not alone in the buy now, pay later (BNPL) sector. Block Inc (ASX: SQ2) is slipping 4.4% today, while Sezzle Inc (ASX: SZL) shares are descending 5.77%. Openpay Group Ltd (ASX: OPY) is sliding 2.17%. In contrast, Beforepay Group Ltd (ASX: B4P) is climbing 1%.

The Zip Co share price also plummeted 8.17% on the Frankfurt Stock Exchange in Europe overnight.

Investors in BNPL shares, including Zip, could be reacting to news out of the United States on Tuesday.

Rising interest rates and late payments are a concern for BNPL shares, the Wall Street Journal reported.

The WSJ highlighted late payments or related losses were “piling up” for the biggest players in the industry, naming Zip specifically.

Interest rate hikes could also pose a problem for these BNPL companies, due to their reliance on credit lines, the publication noted.

Commenting on the outlook for BNPL shares, the WSJ added:

Buy-now-pay-later companies boomed when consumers were flush with cash and buying goods at a feverish pace. How they fare in a downturn, when savings evaporate, spending slows and bad debts mount, is untested.

The young industry finds itself in a tricky spot at a time when the economy is slowing and, some fear, headed for a recession.

Zip shares hit a multi-year low today and based on the current share price, are at their lowest level since May 2018. Zip shares fell 9% yesterday amid broader tech sector weakness.

The company has faced multiple broker downgrades following the company’s third-quarter update, due to slowing growth. Despite this, Zip reported 39% higher revenue and 27% more transaction volumes year on year.

Zip share price snapshot

The Zip share price has fallen 88% on the ASX in the past year, while it has dropped 81% in the year to date.

For perspective, the S&P/ASX 200 Index (ASX: XJO) has shed 1% in the past year.

Zip has a market capitalisation of about $545 million based on the current share price.

The post Why is the Zip share price sinking yet again on Thursday? appeared first on The Motley Fool Australia.

More reading

• Is this a ‘fundamental flaw’ with ASX BNPL shares like Zip
• Why Allkem, Origin, PointsBet, and Zip shares are sinking today
• Why Bubs, PolyNovo, Suncorp, and Zip shares are dropping
• ASX 200 midday update: Beach, Santos rise but EML, Zip tumble
• May was another shocker of a month for the Zip share price. Here’s why

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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Shares of Strike Energy Ltd (ASX: STX) have surged more than 10% into the green on Thursday and now trade at 32 cents apiece.

Investors appear to be bidding up the Strike Energy share price in response to a company announcement concerning its South Erregulla gas discovery.

In broad market moves, the S&P/ASX 200 Energy index (XEJ) has also spiked 280 basis points today.

Returns this year to date for both instruments are plotted on the chart below.

What did Strike Energy announce?

The company advised that the multi-rate test it has conducted at its South Erregulla-1 well has delivered positive results “that are reflective of the high-quality gas charged reservoir” observed in the core analysis.

“Testing to date has produced a choke coefficient peak rate of 80 [million standard cubic feet per day] mmscfd and a sustained rate of more than 78 mmscfd on a 78/64” choke with flowing tubing head pressure (FTHP) of 2,590 psi over a 5-hour period,” the company said.

The results indicate that the well could potentially produce “unrestricted rates in excess of 100 mmscfd,” it added.

Strike will now commence preparation for the production test of the South Erregulla-1 over-pressured Wagina gas discovery which will require the mobilisation of a workover rig to isolate and reset the tubing at the Wagina Sandstone interval.

Management commentary

Speaking on the announcement, Strike Energy CEO, Stuart Nicholls said:

This excellent flow testing provides additional confidence that the Kingia gas discovery at South Erregulla is a large, productive source of low-cost, low impurity natural gas, and that it can form the foundation of Project Haber’s globally competitive nitrogen-based urea fertiliser.

In a time where undeveloped sources of gas are nationally and globally short, the significance
of Strike’s Perth Basin success continues to rise.

This year to date, the Strike Energy share price has jumped more than 56% into the green, despite clipping a 7% loss in the past 12 months.

The post Here’s why the Strike Energy share price is zipping 10% higher today appeared first on The Motley Fool Australia.

More reading

• Why Bubs, IGO, Strike Energy, and Woodside shares are pushing higher
• Why Aristocrat, Arafura, Calix, and Strike Energy shares are charging higher
• Here’s why the Strike Energy share price is avoiding the bloodshed today
• Here’s why the Strike Energy share price is leaping 5% today

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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I think there are some great-looking opportunities on the ASX share market this month. If I had $5,000 to invest into some ASX shares, there are some investments I’d choose for the long term.

While some investors may be fearful of volatility, I think there are advantages to investing at times like this. The most obvious one is that investors can buy businesses at lower prices. I like the sound of that.

In my opinion, choosing a good investment at a good price can lead to good returns over time. You never know what share prices are going to do next, but I want to jump on the opportunities when I see them.

With that in mind, I would spend $5,000 like this:

VanEck Morningstar Wide Moat ETF (ASX: MOAT) — $2,500

This is an exchange-traded fund (ETF) that is based on investing in US businesses that are deemed to have competitive advantages — or ‘economic moats’ — that are likely to last for many years into the future.

Economic moats can come in many different forms such as intellectual property, brand power, cost advantages, and so on.

Businesses are only chosen for this ETF’s portfolio if Morningstar analysts believe the economic moat will stay strong for at least the next decade and, more likely than not, the second decade as well.

On top of that, businesses are only picked for the portfolio if they are good value compared to Morningstar’s estimate of fair value.

At the latest disclosure, these are some of the biggest positions in the portfolio: Lockheed Martin, Bristol-Myers Squibb, Altria, Dominion Energy, and Berkshire Hathaway.

I like the idea of this ETF because of the quality across the board that it offers. It also seems to be consistently invested in businesses that are good value because the portfolio changes to the next opportunities.

Lovisa Holdings Ltd (ASX: LOV) – $1,500

Lovisa is a fast-growing ASX share that sells affordable jewellery in multiple countries. The USA is a particularly promising market for the company, which is why it’s working on expanding its store network there.

The business appears to be very scalable, which bodes well for future profitability. In the FY22 half-year result, Lovisa reported that it grew its revenue by 48.3%, while net profit after tax (NPAT) increased by 70.3%.

I think that this ASX share has a compelling future under the new management. There are plenty of other regions that Lovisa can expand to, such as countries in Asia, which will lengthen its growth runway.

Another benefit to the company is that it pays dividends, so shareholders are getting the benefit of the profit generated in the form of cash returns.

I think this ASX share can achieve good compounding for years to come.

Sonic Healthcare Limited (ASX: SHL) – $1,000

Sonic Healthcare is a leading company in the pathology sector. It generates profit from Australia, Europe, and the US – it’s globally diversified.

The company benefits from long-term trends such as aging demographics. This is helping it achieve steadily-rising revenue and profit. I like that the business is quite defensive – people need healthcare whether the economy is booming or stuttering.

Sonic Healthcare is also benefiting from the ongoing level of COVID-19 testing. It has been an important player in helping slow the spread of the pandemic. It has made plenty of cash flow from testing, which the company has been putting towards acquisitions to boost long-term earnings. Canberra Imaging is one example of a recent acquisition.

I’m attracted to the ASX share’s long-term future, even if it hasn’t fallen as much as some other ASX shares in 2022.

The post I’d invest $5,000 into these excellent ASX shares for the long term appeared first on The Motley Fool Australia.

More reading

• 3 top ETFs to today in June
• Analysts name 2 ASX growth shares to buy with major upside potential
• 3 ASX growth shares brokers rate as buys right now
• Is it reasonable to expect share price growth AND reliable dividends from ASX shares?
• 2 ASX shares I’d buy with $1,000

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 Berkshire Hathaway (B shares) and Bristol Myers Squibb. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Dominion Energy, Inc and Lockheed Martin and has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares), Lovisa Holdings Ltd, Sonic Healthcare Limited, and VanEck Vectors Morningstar Wide Moat 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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