• Brokers name 3 exciting small cap ASX shares to buy

    A female stockbroker reviews share price performance in her office with the city shown in the background through her windows

    A female stockbroker reviews share price performance in her office with the city shown in the background through her windows

    Looking for some small cap shares to add to your portfolio? Then have a look at the three listed below.

    Here’s why analysts have named them as buys:

    Airtasker Ltd (ASX: ART)

    The first small cap ASX share to consider is this online marketplace for local services. It has been growing at a rapid rate in recent years and has been tipped to continue this trend in the future by the team at Morgans. This is due to the broker’s belief that the company has a very attractive business model and a significant market opportunity that is in the early stages of ecommerce adoption. Morgans has an add rating and $1.27 price target on the company’s shares.

    MoneyMe Ltd (ASX: MME)

    Another small cap ASX share that is rated as a buy is MoneyMe. It is a financial technology company that leverages artificial intelligence to deliver highly automated credit products and customer experiences. It has also been growing at a solid rate in recent years and appears well-placed for more of the same in the future. Particularly given its recent acquisition of the SocietyOne business for $132 million. Morgans is positive on the company’s future, noting that its diverse product suite now combined with the complementary customer base of SocietyOne has the potential to drive further top line growth. The broker has an add rating and $2.60 price target on its shares.

    PlaySide Studios Limited (ASX: PLY)

    A final small cap ASX share that could be a buy is PlaySide Studios. It is Australia’s largest publicly listed video game developer. The company provides titles in a range of categories, including self-published games based on original intellectual property and games developed in collaboration with studios. The latter includes studios such as Disney, Pixar, Warner Bros, and Nickelodeon. PlaySide has also been dabbling, with big success, with NFTs and announced material work for hire deals with a number of games publishing giants. This went down well with the team at Canaccord Genuity, which has put a buy rating and $1.30 price target on its shares.

    The post Brokers name 3 exciting small cap ASX shares to buy appeared first on The Motley Fool Australia.

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

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Airtasker Limited. 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 Bruce Jackson.

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  • Gambling & explosives: fund reveals 2 ASX shares to buy right now

    A business man in soft-focus holds two fingers in the air in the foreground of the shot as he stands smiling in the background against a clear sky.A business man in soft-focus holds two fingers in the air in the foreground of the shot as he stands smiling in the background against a clear sky.

    With interest rates expected to rise multiple times later this year, high-growth ASX shares for companies that don’t turn a profit are definitely out of favour.

    Current cash flow and earnings have become more important, as investors move away from future to current potential.

    As such, it was interesting to note two stocks that the Investors Mutual Concentrated Australian Share Fund had in focus in its latest memo to clients.

    This ASX share isn’t a gamble, says fund

    Investors Mutual analysts noted that Tabcorp Holdings Limited (ASX: TAH) shares had gained 7.6% during the first quarter.

    But they reckon there are more returns coming.

    “The company delivered a solid result driven by continued positive operating momentum in the core lotteries business.”

    Tabcorp is currently undertaking a separation of its lotteries business.

    “We continue to see long-term value in the lotteries business and believe that post demerger, M&A interest in both the lotteries and wagering businesses could resurface.”

    The share price of Tabcorp is up more than 3% for the year. It has proven resilient against this year’s drop in the general market outside mining and financials.

    The stock closed Wednesday at $5.42.

    The Investors Mutual team isn’t the only one optimistic about the betting company’s fortunes.

    Goldman Sachs Group Inc (NYSE: GS) analysts earlier this month named it as a buy with a price target of $6.20, which is an almost 15% premium to the current level.

    The power of setting your own prices

    The Investors Mutual memo noted that Orica Ltd (ASX: ORI), as “the world’s leading explosives manufacturer”, enjoyed a 16.5% boost in its share price last quarter.

    The team likes the pricing power of Orica during a period of high inflation.

    “Explosive prices have risen for two reasons,” the IM memo read.

    “Firstly, mining volumes have increased due to the higher commodity prices which in turn has led to higher demand for Orica’s explosives. Secondly, supply shortages of explosives have emerged from eastern Europe due to Russia’s invasion of Ukraine.”

    Investors Mutual Concentrated Australian Share Fund remains positive about the company’s future.

    “We continue to hold Orica in the Fund, as the company’s recovery post-COVID is still in its early phases and we remain positive on the company’s capital light growth strategy in the mining software market.”

    The Orica share price finished Wednesday at $16.30.

    Back in February, Investors Mutual director Anton Tagliaferro identified the explosives maker as one of the best examples of current cash flow-positive businesses.

    “As investors begin to appreciate real cash flows generated by companies in the next two to three years, as opposed to hoped-for cash flows in 10 or 20 years’ time.”

    The post Gambling & explosives: fund reveals 2 ASX shares to buy right now appeared first on The Motley Fool Australia.

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

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

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    Motley Fool contributor Tony Yoo 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 Bruce Jackson.

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  • The Cochlear dividend is being paid today. Here’s what you need to know

    a small girl smiles and holds her ears as if listening to a noise in an outdoor setting.a small girl smiles and holds her ears as if listening to a noise in an outdoor setting.

    Cochlear Limited (ASX: COH) shareholders are likely to have something to cheer about today as the company pays out its latest dividend.

    The hearing solutions company is set to reward eligible investors with an unfranked interim dividend of $1.55 per share.

    At Wednesday’s market close, the Cochlear share price finished 1.23% higher at $227.20.

    For context, the S&P/ASX 200 Index (ASX: XJO) also climbed yesterday with a slight gain of 0.05% to 7,569.2 points.

    Let’s look at the details regarding the company’s dividend.

    Cochlear pays interim dividend

    On 22 February, Cochlear reported a robust performance in its half-year results for the 2022 financial year.

    In summary, sales revenue increased 10% to $815 million compared to the prior corresponding period. This was driven by an uneven split between emerging and developed markets.

    On the bottom line, Cochlear recorded a 26% lift in underlying net profit after tax (NPAT) of $158 million. 

    Management noted that the COVID-19 pandemic challenged the results, affecting hospital staffing levels.

    Nonetheless, the board elected to bump up its interim dividend by 35% on the previous year’s first-half distribution of $1.15 per share.

    Based on the current share price, Cochlear is trailing on a forecast dividend yield of 0.62%

    Cochlear share price summary

    Cochlear shares have nudged 5% higher over the last 12 months, buoyed by strong gains after delivering its financial scorecard. The company’s shares are up 4% this year to date.

    The Cochlear share price reached a 52-week low of $178.55 in January but has regained some ground and is now trading around November 2021 levels.

    Cochlear has a price-to-earnings (P/E) ratio of 57.56 and commands a market capitalisation of roughly $14.94 billion.

    The post The Cochlear dividend is being paid today. Here’s what you need to know appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Cochlear right now?

    Before you consider Cochlear, you’ll want to hear this.

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

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

    *Returns as of January 13th 2022

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    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. owns and has recommended Cochlear Ltd. The Motley Fool Australia has recommended Cochlear Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • BHP share price on watch following Q3 update

    A Chinese property developer sits in front of his laptop looking pensive and concerned as the Chinese property market wobbles potentially causing problems for ASX 200 mining shares

    A Chinese property developer sits in front of his laptop looking pensive and concerned as the Chinese property market wobbles potentially causing problems for ASX 200 mining shares

    All eyes will be on the BHP Group Ltd (ASX: BHP) share price on Thursday.

    This follows the release of the mining giant’s third quarter update this morning.

    What happened during the quarter?

    For the three months ended 31 March, BHP delivered iron ore production of 59.7Mt. This was flat quarter on quarter and means that year to date production remains down 10%.

    Management notes that this reflects temporary labour constraints due to COVID-19, train driver shortages, and planned maintenance activities at Western Australia Iron Ore (WAIO). This was partially offset by record production from the MAC hub with the continued ramp up of the South Flank.

    BHP’s copper production came in at 369.7kt, which was up 1% quarter on quarter. This was driven by higher volumes at Olympic Dam following the completion of planned smelter maintenance campaign, which was partially offset by lower volumes at Escondida due to COVID-19 workforce impacts and public road blockades following social unrest. Year to date copper production is now down 10%.

    Nickel production was down 13% quarter on quarter to 18.7kt. This means that year to date nickel production is also down 13%. Temporary labour constraints were also to blame.

    BHP’s metallurgical coal production rebounded during the quarter thanks to lower rainfall and a strong operational performance. It rose 20% quarter on quarter to 10.6Mt, which means year to date production is now down only 2%.

    Elsewhere, energy coal production was down 13% to 2.6Mt and petroleum production reduced 6% to 24.1MMboe.

    Management commentary

    BHP’s Chief Executive Officer, Mike Henry, appear pleased with the quarter, all things considered. He said:

    “BHP delivered safe and reliable production in the third quarter. Our WA iron ore business continues to perform strongly as we navigate the state’s first major COVID-19 wave, and we remain on track to achieve full year volume and cost guidance. Amid record high prices, our Queensland metallurgical coal business delivered strong underlying performance and benefited from better weather in the quarter.

    In copper, Spence production is increasing and the Olympic Dam smelter is performing strongly as it returns to full production following planned maintenance. These gains have been more than offset at Escondida by impacts from COVID-19 and public road blockades in Antofagasta, which are reflected in a revision to overall production guidance.”

    Mr Henry also spoke about inflationary pressures that are impacting the sector. He commented:

    “Market volatility and inflationary pressures have increased further as a result of the Russian invasion of Ukraine. We continue our work to mitigate cost pressures through a sharp focus on operational reliability and cost discipline. While we expect conditions to improve during the course of the 2023 calendar year, we anticipate the skills shortages and overall labour market tightness in Australia and Chile to continue in the period ahead.”

    Outlook

    BHP has reaffirmed its FY 2022 production guidance for iron ore, metallurgical coal, and energy coal. However, it has lowered its copper and nickel production guidance.

    It has also reaffirmed its full year unit cost guidance for WAIO, Escondida, and Queensland Coal, but has increased its guidance for New South Wales Energy Coal. The latter reflects a targeted increase in the proportion of higher quality coal to capture more value from the record high prices for higher quality thermal coal.

    The post BHP share price on watch following Q3 update appeared first on The Motley Fool Australia.

    Should you invest $1,000 in BHP right now?

    Before you consider BHP, you’ll want to hear this.

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

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

    *Returns as of January 13th 2022

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

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  • Is the Rio Tinto share price in the buy zone after its quarterly update?

    Female miner smiling while inspecting a mine site with another miner.

    Female miner smiling while inspecting a mine site with another miner.

    The Rio Tinto Limited (ASX: RIO) share price was out of form on Wednesday.

    The mining giant’s shares fell almost 3% to $118.30.

    Why did the Rio Tinto share price tumble?

    Investors were selling down the Rio Tinto share price in response to the release of the mining giant’s first quarter update.

    As you might have guessed from the market’s reaction, that update was softer than analysts were expecting.

    For example, Goldman Sachs commented: “RIO reported a softer 1Q vs. GSe/consensus, with iron ore and copper both down 15%/5% QoQ respectively.”

    This was due to iron ore tie-in and commissioning activities in the Pilbara continuing to be impacted from labour shortages and equipment issues. Copper production was also impacted by lower mill throughput related to labour shortages.

    One positive, though, is that Rio Tinto has reaffirmed its full year production guidance despite its soft start to the financial year.

    Is this a buying opportunity?

    While Rio Tinto’s first quarter update disappointed Goldman Sachs, its analysts remain positive on the company’s outlook.

    So much so, the broker has retained its buy rating, albeit with a slightly trimmed price target of $135.10.

    Based on the current Rio Tinto share price, this implies a potential return of 14% for investors before dividends.

    Goldman said: “Despite ongoing operational issues and concerns over future growth (Pilbara heritage and replacement mines, Simandou, Oyu Tolgoi, Resolution) and uncertainty over decarbonisation capex, we rate RIO a Buy.”

    The broker’s buy rating is based on Rio Tinto’s attractive valuation (~0.9x NAV), strong iron ore outlook, production growth potential, low emission aluminium exposure, and strong free cash flow. Goldman expects the latter to underpin double digit fully franked dividend yields in FY 2022 and FY 2023.

    All in all, this could make Rio Tinto’s shares worth considering if you’re looking for exposure to the resources sector right now.

    The post Is the Rio Tinto share price in the buy zone after its quarterly update? appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Rio Tinto right now?

    Before you consider Rio Tinto, you’ll want to hear this.

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

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

    *Returns as of January 13th 2022

    More reading

    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 Bruce Jackson.

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  • 2 ASX shares that were dogs last month but good to buy now: expert

    two dogs, a golden one and a black one, together carry a stick in their mouths as the run side by side with contented, happy looks on their faces.two dogs, a golden one and a black one, together carry a stick in their mouths as the run side by side with contented, happy looks on their faces.

    This might feel counter-intuitive, but taking a look at ASX shares that have not performed well in recent times can sometimes be fruitful.

    Those shares are obviously now cheaper, and the business may still be solid with excellent prospects. 

    After all, the stock price might have tanked for external reasons that have nothing to do with the internal operations.

    In a recent memo to clients, the team at Celeste Funds Management highlighted two such examples that they’re still keeping the faith in:

    Astounding record of acquisitions

    PSC Insurance Group Ltd (ASX: PSI) shares lost 8.3% during March as it raised $80 million to fund future acquisitions.

    The dilution may have contributed to the stock price fall, but the Celeste team feels like the extra cash will eventually become a positive.

    “This raising brings net leverage below 2.0x (compared to a stated threshold of 2.0 to 2.5x) and will be focused on Australian and UK commercial broking opportunities,” the memo read.

    “Since January 2021, PSC has completed 12 acquisitions contributing $16 million in EBITDA at an average multiple of 7.5x.”

    This astounding history gives analysts at Celeste much confidence.

    “Given this track record, their solid pipeline of opportunities and a supportive operating environment, we are confident PSC will deploy the capital in an earnings accretive manner.”

    PSC Insurance shares are down 4.7% for the year so far, while handing out a 2.44% dividend yield.

    Other analysts aren’t completely convinced yet, with 3 of the 5 surveyed on CMC Markets rating PSC shares as a hold. The remaining two recommend as a buy.

    Is it better to understock or overstock? 

    There is no sugar-coating this. City Chic Collective Ltd (ASX: CCX) shares have lost half their value in 2022.

    Celeste analysts watched in horror over March as the fashion retail stock lost another 13% that month.

    “Despite delivering strong top line growth, the market recoiled in response to elevated inventory levels in response to global supply chain disruptions, and sentiment remains weak,” the memo read.

    “However, prudent inventory stocking will enable CCX to participate in key sales periods like summer in the Northern Hemisphere, with CCX flagging positive early indications.”

    The alternative to overstocking is understocking and underselling. But this has played havoc with their US rival Torrid Holdings Inc (NYSE: CURV)’s bottom line.

    “Ultimately City Chic continues to deliver a quality product with high demand in a growing target market – evidenced by strong growth in online sales, particularly in its key growth market of USA,” stated Celeste analysts.

    “We believe City Chic is ripe with opportunity despite short-term supply chain issues.”

    The broader fund management community agrees, with 8 of 11 analysts surveyed on CMC Markets rating City Chic shares as a “strong buy”.

    The post 2 ASX shares that were dogs last month but good to buy now: expert appeared first on The Motley Fool Australia.

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

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    Motley Fool contributor Tony Yoo 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 PSC Insurance Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • Brokers love these 2 ASX dividend shares right now

    A heart next to a pink piggy bank and coins.

    A heart next to a pink piggy bank and coins.

    ASX dividend shares could be the place to find opportunities to pay attractive income for investors. There are some very large dividend-paying businesses on the ASX such as BHP Group Ltd (ASX: BHP) and Commonwealth Bank of Australia (ASX: CBA).

    But just because a company pays a dividend, this doesn’t automatically make it worth owning.

    Here are two ASX dividend shares that are liked:

    GQG Partners Inc (ASX: GQG)

    GQG is one of the largest fund managers on the ASX. The US-based manager runs a number of different investment strategies including global shares, international shares, US shares and emerging market shares.

    The business is rated as a buy by the broker Morgans with a price target of $2.15. That implies a potential rise of around 40%. The broker thinks it’s good value and recognises that its quarterly updates continue to show inflows.

    GQG recently released its update for the period ending 31 March 2022. Over the month, it showed that funds under management (FUM) rose from US$89.8 billion to US$92.9 billion. For the three months to 31 March 2022, the ASX dividend share experienced net inflows of US$3.4 billion despite an “extremely challenging macro environment”.

    In FY23, Morgans thinks that GQG is going to pay a dividend yield of 8.4%. In FY22, it could pay a yield of 7.8%.

    Best & Less Group Holdings Ltd (ASX: BST)

    Best & Less describes itself as a leading value apparel specialty retailer with a physical store network of 245 stores and a “fast-growing” online offering. Its aim is to be the number one choice for families buying baby and kids’ value apparel in Australia and New Zealand through two brands: Best & Less in Australia and Postie in New Zealand.

    Despite all of the store closures during the first half of FY22, the company achieved growth with some of its reported financial statistics.

    Like-for-like sales were up by 0.1% and online sales increased by 24%. Its gross profit margin went up by 210 basis points to 50.8%. It achieved its 2021 calendar year prospectus forecasts for earnings before interest, tax, depreciation and amortisation (EBITDA) and net profit after tax (NPAT).

    With that result, the ASX dividend share declared a maiden interim dividend of 11 cents per share.

    The company is focused on executing its growth strategy in the second half, by continuing to grow its market share in ‘baby’ and ‘kids’, improving the womenswear offer, investing in its online capabilities and securing new store sites.

    It’s currently rated as a buy by the broker Macquarie with a price target of $4.10. That implies a potential upside of around 30% over the next year.

    Macquarie believes that the Best & Less share price is valued at under 9 times FY22’s estimated earnings with a projected grossed-up dividend yield for this financial year of 12.4%.

    The post Brokers love these 2 ASX dividend shares right now appeared first on The Motley Fool Australia.

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

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

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

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  • Everyone needs to eat: Expert flags 2 ASX shares to buy now

    a family has an outdoor table set up, laden with food, as they prepare for a meal outside on the grass with their home in the background.a family has an outdoor table set up, laden with food, as they prepare for a meal outside on the grass with their home in the background.

    The market has been up and down this year, but one thing is for certain — uncertainty.

    There is no shortage of guesses — but no one really knows how the war in Ukraine will turn out, nor how the economy and the share market will cope with multiple interest rate rises.

    In such volatile times, it’s not such a bad idea to invest in ASX shares that provide the essentials of life.

    If companies provide products and services people can’t live without, then at least you don’t have to worry about waning demand.

    Here are a couple of such stocks Wilsons investment advisor Peter Moran currently rates as buys:

    ‘Outlook is improving’

    Fruit and vegetable supplier Costa Group Holdings Ltd (ASX: CGC) has seen its shares rise more than 13.7% over the past month.

    Moran isn’t surprised, with his team recently upgrading the stock to “overweight”.

    “The outlook is improving for Australia’s biggest grower and marketer of fresh fruit and vegetables,” he told The Bull.

    “Positive catalysts include increasing table grape exports and higher domestic pricing in the key categories of mushrooms, blueberries and tomatoes.”

    There are some handy foreign tailwinds too.

    “The international business is benefiting from increasing demand from China and from supply issues for competitors based in Chile.”

    Costa Group shares also give out a tidy 2.65% dividend yield.

    It seems Moran is not the only one bullish on Costa. According to CMC Markets, 10 out of 13 analysts rate the stock as either “strong buy” or “moderate buy”.

    ‘Well-positioned to compete’

    As well as eating vegetables and fruit, Australians also need somewhere to live.

    That’s where Moran’s recommendation of Resimac Group Ltd (ASX: RMC) shares comes in.

    “Resimac is one of Australia’s largest non-bank financial lenders,” he said.

    “The company’s [flexible] and attractively-priced loans have resulted in solid loan origination growth in recent years.”

    Believe it or not, Moran rates Resimac as a buy despite expecting a financial downgrade in the short term.

    “The lending environment is competitive and we expect a slight decrease in profitability for the current financial year,” he said.

    “However, Resimac is well-positioned to compete in this environment and we expect profit growth to resume next financial year. We hold an overweight recommendation.”

    Analyst coverage on the $680 million company is sparse. CMC Markets shows just one other fund manager other than Wilsons also rating it as a buy.

    The share price has dipped 11.6% for the year so far.

    The post Everyone needs to eat: Expert flags 2 ASX shares to buy now appeared first on The Motley Fool Australia.

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

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    Motley Fool contributor Tony Yoo 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 COSTA GRP FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • 5 things to watch on the ASX 200 on Thursday

    Business woman watching stocks and trends while thinking

    Business woman watching stocks and trends while thinking

    On Wednesday, the S&P/ASX 200 Index (ASX: XJO) continued its positive run with the smallest of gains. The benchmark index rose slightly to 7,569.2 points.

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

    ASX 200 expected to rise

    The Australian share market looks set to have another positive day despite a mixed night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 25 points or 0.3% higher this morning. On Wall Street, the Dow Jones rose 0.7%, but the S&P 500 dropped 0.1% and the Nasdaq tumbled 1.2%. The latter was hit by a 35% decline by Netflix shares.

    Oil prices flat

    It could be a subdued day for energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices traded largely flat. According to Bloomberg, the WTI crude oil price is unchanged at US$102.56 a barrel and the Brent crude oil price is up slightly to US$107.31 a barrel. Traders appear unsure which direction oil will take given concerns over both supply and demand.

    Zip Q3 update

    The Zip Co Ltd (ASX: Z1P) share price hit a new multi-year low on Thursday. Investors will be hoping the release of the buy now pay later provider’s third quarter update this morning is the catalyst to getting its shares heading in the right direction again. The company’s shares are also due to start trading under the ticker code “ZIP” from today.

    Gold price edges lower

    Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged lower overnight. According to CNBC, the spot gold price is down 0.1% to US$1,958.80 an ounce. Improving bond yields reduced the appeal of the precious metal.

    Megaport’s third quarter update

    The Megaport Ltd (ASX: MP1) share price will be one to watch when the network as a service provider releases its third quarter update. According to a note out of Goldman Sachs, its analysts are expecting Megaport’s second half revenue growth to accelerate. The broker expects revenue growth of 48% for the half, so a strong third quarter will be need to achieve this forecast. Elsewhere, also releasing a third quarter update today is mining giant BHP Group Ltd (ASX: BHP).

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

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

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

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    Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Megaport Ltd and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Megaport Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • 3 high quality ETFs for ASX investors to buy today

    ETF written in gold with dollar signs on coin.

    ETF written in gold with dollar signs on coin.

    If you don’t have the funds to build a truly diverse portfolio, then exchange traded funds (ETFs) could be a quick fix. This is because ETFs allows you to invest in a large number of shares through just a single investment.

    With that in mind, listed below are three ETFs that could be good options for investors. Here’s what you need to know about them:

    BetaShares Asia Technology Tigers ETF (ASX: ASIA)

    The BetaShares Asia Technology Tigers ETF could be a great option if you’re wanting to gain exposure to the growing Asian economy. That’s because this ETF gives investors access to a number of the best tech shares operating in the Asian market. By buying this ETF you’ll be owning a slice of well-known companies such as ecommerce giants Alibaba and JD.com, search engine company Baidu, and WeChat owner Tencent.

    BetaShares Global Energy Companies ETF (ASX: FUEL)

    Another ETF to look at is the BetaShares Global Energy Companies ETF. This ETF provides investors with a way to gain exposure to rising oil prices. This is by allowing investors to own a slice of some of the biggest energy companies in the world. BetaShares notes that these are larger, more geographically diversified, and more vertically integrated than Australian-listed energy companies. Among the fund’s holdings are the likes of BP, Chevron, ExxonMobil, and Royal Dutch Shell.

    Vanguard MSCI Index International Shares ETF (ASX: VGS)

    A final ETF for investors to look at is the Vanguard MSCI Index International Shares ETF. This ETF provides investors with exposure to a massive ~1,500 of the world’s largest listed companies, which could make it a good option for investors seeking to add some diversification to a portfolio. Among the companies you’ll be investing in are giants such as Amazon, Apple, Johnson & Johnson, JP Morgan, Nestle, Procter & Gamble, and Visa.

    The post 3 high quality ETFs for ASX investors to buy today appeared first on The Motley Fool Australia.

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

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

    Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

    *Returns as of January 12th 2022

    More reading

    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. owns and has recommended BetaShares Global Energy Companies ETF – Currency Hedged and Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended BetaShares Asia Technology Tigers ETF and Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

    from The Motley Fool Australia https://ift.tt/sLED8Bn