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

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

Coles share price on watch amid solid sales growth

• Sales up 3.9% over the prior corresponding period to $9.3 billion
• Supermarkets sales up 4.2% to $8,226 million
• Liquor sales up 2.8% to $784 million
• Express sales down 2.1% to $285 million
• Flood event costs of $30 million and COVID costs of $65 million

What happened during the quarter?

For the 12 weeks ended 27 March, Coles reported a 3.9% increase in sales to $9.3 billion. This was driven by solid growth across its supermarkets and liquor businesses, which offset softer sales from the express business.

The release notes that supermarkets sales were elevated in the early part of January as the Omicron variant spread through the community. And while they were then impacted by the floods in New South Wales and Queensland, with supply chain challenges impacting availability and sales, it wasn’t enough to stop Coles’ supermarkets from reporting comparable store sales growth of 3.9%.

Coles also highlights that local shopping trends re-emerged with the contribution from neighbourhood stores greater, as compared to shopping centres and CBD stores, in the third quarter compared to the second quarter.

The Liquor business was also on form, reporting comparable store sales growth of 2.8% for the period. This was driven by growth across all states, despite the impact of the significant flood events and rising Omicron cases in the early part of the quarter limiting social gatherings and thus liquor consumption.

Finally, the Express segment reported a same store sales decline of 0.8%. Management notes that this was driven by COVID-19 isolations. And while traffic flows increased with workers returning to offices and children returning to school later in the quarter, this was then offset by the flood events and global fuel price increases.

How does this compare to expectations

Goldman Sachs was expecting Coles to report comparable sales growth of 3.5% for the supermarkets business and 2% for the liquor business.

Given that the company ultimately reported growth of 3.9% and 2.8%, respectively, this could bode well for the Coles share price today.

Management commentary

Coles CEO, Steven Cain, acknowledged cost of living pressures and revealed that the company will be doing its part to ease the burden. He said:

“Coles Group remains focused on our commitment to deliver trusted value for Australian families amid growing cost of living pressures driven by both local and global supply circumstances. In particular, we have the widest range of great value and sustainable own brand products in Australia.

I want to thank our team members and suppliers for their continued hard work during the quarter to provide the best offer possible despite the impact of widespread flooding and record COVID-19 numbers. I would also like to thank our customers, community partners and state and federal governments for their help and generosity in supporting Coles’ efforts to assist communities impacted by flooding during the quarter.”

Outlook

Positively for the Coles share price, the company revealed that it has started the fourth quarter strongly.

It highlights that it “recorded a solid trading period with no COVID-19 related restrictions on traditional family events such as Easter” and that “availability continues to improve as the supply chain recovers.”

Looking ahead, COVID costs are expected to moderate as public health requirements are eased, but supplier input cost inflation is expected to continue in the fourth quarter and into FY 2023. However, Coles doesn’t appear to be planning to pass these costs on and will “continue to focus on providing trusted value for customers to ease the burden from cost of living pressures.”

The post Coles share price in focus amid solid Q3 sales growth appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Green delivery milestone fails to electrify Coles share price
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• Why is the Coles share price in the green today?
• Analysts name 2 ASX dividend 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. 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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With the market rotating away from hyper-growth technology and medical companies, ‘old school’ sectors are back in favour.

Whether it’s building houses, facilitating e-commerce or selling shoes, business activities that are considered more essential to consumers’ lives are flying high in the face of higher interest rates.

Let’s take a look at 3 examples that experts have rated as “buy” this week:

Who needs shoes? EVERYONE

Bell Potter Securities advisor Christopher Watt sees Accent Group Ltd (ASX: AX1) as nice value at the moment.

The share price has plunged more than 41% for the year so far.

“The stock looks attractive given recent levels of price weakness,” Watt told The Bull.

“Accent owns an impressive portfolio of footwear businesses, including The Athlete’s Foot, Platypus and Timberland.”

He added that Accent is really building “a positive point of difference” in Australian retail.

“The company has more than 500 stores and more than 20 online platforms. It pays fully franked dividends.”

Indeed the stock is handing out almost a 4% yield.

Almost no empty space left

Medallion Financial Group analyst Jean Claude Perrottet currently likes the look of Goodman Group (ASX: GMG).

“This industrial property group is a quality business, with about $68.2 billion in assets under management.”

He cited Goodman’s 98.4% occupancy rate as a testament to the quality of the company.

“Goodman delivered a strong 2022 first half result, with growth in key metrics,” said Perrottet.

“Operating profit of $786.2 million was up 28% on the prior corresponding period. The company has increased earnings per share guidance in fiscal year 2022.”

Goodman is a major beneficiary of the consumer shift to online shopping, leasing out massive warehouse space to retailers.

Morgan Stanley is also a fan, rating Goodman shares as a buy this week with a price target of $27.88.

That’s an 18% premium on Wednesday’s closing price of $23.63.

‘Dominant share’ of US market

Building materials provider James Hardie Industries plc (ASX: JHX) is also a current buy for Bell Potter’s Watt.

“This building products company has a dominant share of the US fibre cement market amid immense exposure to the attractive US housing market.”

The stock price has cooled off significantly in 2022, dropping almost 30% so far.

But in the face of persistent inflation and rising interest rates, Watt likes James Hardie’s ability to set its own prices.

“Strong pricing power enables the company to pass on increasing manufacturing costs, which protects profitability.”

Analysts at Firetrail agree with Watt, saying the exposure to a growing US market could prove fruitful.

“We estimate current North America margins of 29% could increase to 46% by FY27, materially higher than consensus FY27 margins of 34%,” they stated in a memo to clients last week.

“We believe the market is missing a material market share and margin-accretion opportunity which lies ahead of James Hardie as it shifts its product mix towards higher-margin products.”

The post Shoes, shopping, reno: 3 ASX shares experts are buying now appeared first on The Motley Fool Australia.

More reading

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• 2 ASX dividend shares with great yields to beat inflation

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 Accent 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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Commonwealth Bank of Australia (ASX: CBA) is planning to offer home loans with cheaper interest rates for houses that meet certain sustainability and energy-efficiency criteria.

CBA is the largest of the ‘big four’ ASX banks, featuring National Australia Bank Ltd (ASX: NAB), Australia and New Zealand Banking Group Ltd (ASX: ANZ), and Westpac Banking Corp (ASX: WBC).

‘Green home offer’

The bank’s new initiative is called the ‘green home offer’. It offers a 1.99% variable interest rate with a 2.45% comparison rate. However, CBA’s conditions state that the product discount margin on this offer “may vary from time to time”.

CBA said it wants to reward new and existing customers who’re taking steps to reduce their footprint on the environment by investing in their homes, making them more energy efficient.

CBA’s executive general manager of home buying Dr Michael Baumann said:

We expect all residential homes to be built to these standards over the coming years as we move towards a net zero future and by introducing the new Green Home Offer we want to encourage customers to take steps now to protect the environment and their home. We know homes that are well built and energy efficient are good for the environment whilst significantly reducing living costs and improving the wellbeing of homeowners.

How do homes qualify?

There are two options. Either the home is a certified ‘Green Building Council of Australia (GBCA) Green Star Home’ or it meets a number of other criteria including that it’s electrified through the installation of a heat pump hot water system with no gas. It must also meet a minimum requirement for solar power generation, depending on the size of the house.

The GBCA and CBA are looking to raise awareness of this new standard of rating for larger homebuilders. It’s focused on being energy efficient. This includes being powered by renewables, being fully electric, and draught sealed. Homes also need to be well-ventilated with minimal toxins in carpets or paint and be resilient through being water efficient and ‘climate change ready’.

CBA said it wants to be able to provide customers with options that reduce their environmental footprint. It says it has a responsibility to do this because one in four home loans in Australia are with Commonwealth Bank. The bank also has a 10-year green loan for financing the installation of renewables in homes.

CBA share price snapshot

The CBA share price is around 2% higher since the start of 2022. However, it’s down around 5% since 21 April 2022.

In other news from the bank, yesterday CBA announced the transition of its chair. The bank’s non-executive director Paul O’Malley will take up the position in August.

The post Here’s how CBA plans to support greener homes with cheaper mortgages appeared first on The Motley Fool Australia.

More reading

• Is the Westpac share price expensive in April?
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• Own CBA shares? Meet the big bank’s new chair
• Own the Vanguard Australian Shares High Yield ETF? Here’s what you’re invested in
• Are CBA shares a buy? Here’s what analysts say

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

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S&P/ASX 200 Index (ASX: XJO) iron ore shares have seen some big swings up and down over the past 12 months.

This was predominantly driven by some wild moves in iron ore prices. The industrial metal reached US$233 per tonne in May last year before sliding all the way to US$87 per tonne by November.

On Tuesday, iron ore fell 9.7%, dragging ASX 200 iron ore shares down with it. Yesterday, prices rebounded by 2.4% to US$139 per tonne. As you’d expect, that helped boost the prices of the big ASX mining shares.

While the ASX 200 closed down 0.78% yesterday, BHP Group Ltd (ASX: BHP) shares finished the day up 0.8%; the Rio Tinto Ltd (ASX: RIO) share price closed up 0.2%; and Fortescue Metals Group Ltd (ASX: FMG) shares closed 1.7% higher.

With so much of these big companies’ fortunes riding on the price of iron ore, what’s the outlook for the remainder of the year?

Low-cost production equals strong profit margins

For an answer to the outlook for iron ore prices – and the profit margins of ASX 200 iron ore shares – we defer to Commonwealth Bank of Australia director of mining and energy commodities research, Vivek Dhar (courtesy of ABC News).

Commenting on the sharp fall in iron ore prices earlier this week, Dhar said, “Markets are worried that Beijing in particular may be exposed to more severe lockdowns, like what we’ve seen in Shanghai.”

As you’re likely aware, China remains intent on its zero-COVID policy. A policy that’s sent Shanghai – a city with more residents than all of Australia – into extended, crippling lockdowns. The virus is still spreading, and authorities’ lockdown measures could as well.

For that reason, Dhar believes demand for iron ore from China’s steel factories will be weak over the next several months. But he doesn’t expect iron ore prices to plummet back to the November 2021 lows this year.

ASX 200 iron ore shares to generate significant cash

Dhar expects iron ore to trade in the range of US$120 per tonne to US$160 per tonne this year, potentially falling to US$100 towards December. That’s well above the Aussie Government’s own forecast of US$55 per tonne.

And it should see ASX 200 iron ore shares remain well in the profit zone.

According to Dhar (quoted by ABC News):

When it comes to the profitability of Australia’s iron ore sector, it is still very, very strong. We sit very fortunately as the lowest cost producers of iron ore and, together with some Brazilian operations, I think that’s going to be very profitable.

The cash generation is going to be significant.

The post Cash generation among ASX 200 iron ore shares will ‘be significant’ in 2022: expert appeared first on The Motley Fool Australia.

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• Here are the 3 most heavily traded ASX 200 shares on Tuesday

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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There is no doubt 2022 has been a wild ride for investors dabbling in ASX shares.

January saw a deep plunge due to fears about persistent inflation and rising interest rates. Russian tanks rolled into Ukraine in February.

The S&P/ASX 200 Index (ASX: XJO) then made a massive 6.4% gain in March.

And this month, it consolidated those gains, only to fall off a cliff in the final week.

That’s sufficient volatility to turn your hair grey.

Yes, it is stressful seeing your portfolio turn into a sea of red, regain some of those losses, then lose them all again.

But a couple of fund managers reminded investors to stay focused on the long game.

“One-year returns for equity markets can be incredibly volatile. Regular calendar year falls of -10% to -30% are relatively frequent,” said Ophir Funds co-founders Steven Ng and Andrew Mitchell.

“However, as we go out to holding periods of five years, falls become MUCH less frequent. At 10 year periods, they have become practically non-existent and there are no periods of negative 20-year returns.”

‘Transferring money from the impatient to the patient’

Ng and Mitchell mentioned a famous Warren Buffet quote to demonstrate their point: 

“The share market is a device for transferring money from the impatient to the patient.”

The simple fact is that investors need to tolerate short-term price fluctuations as the entry fee for playing.

“Volatility and drawdowns are the price you pay for higher returns from shares over the long term,” their memo to clients read.

“You genuinely can’t have the sweet without the sour.”

What’s the payoff for putting up with “occasional -50% share market falls and more frequent -20% bear markets“?

Ng and Mitchell took the example of $100 invested in 1899 through cash, bonds, or shares.

Cash would have turned that into $8,650 today, while bonds would have done far better, with a current balance of $24,556.

“However, in another galaxy is equities, at $9,994,326!” the duo said.

“Hard to believe but true — more than 400 times the dollar return of bonds over the last 122 years. The shorter-term risk of shares has been handsomely rewarded over the long term.”

Ng and Mitchell were reminded of another quote, this time from Buffett’s right-hand man Charlie Munger:

“If you can’t stomach 50% declines in your investment, you will get the mediocre returns you deserve.”

Setting expectations about timing and risk management

Mitchell and Ng said there’s nothing wrong with putting in risk management practices to reduce the bleeding during volatile times like 2022.

“But expectations must be realistic about what these practices can achieve – they are not a cure-all for avoiding declines in value when markets fall.”

They acknowledged that, for both professionals and amateurs, corrections are unpleasant.

“It is always painful whilst you are going through it, but ultimately it is a necessary ingredient for shares to outperform over the long term and for active managers, such as ourselves, to be able to stand the chance of beating the markets over time.”

And don’t forget, timing the market is a mug’s game.

“We’d all love to be able to time markets and miss these falls, but history (and the data!) suggests this is likely to be nigh on impossible,” read Ng and Mitchell’s memo.

“It is BECAUSE investors have to go through the painstaking drawdowns of the share market that they tend to be handsomely rewarded over the long term.”

The post ‘No risk, no reward’: Exit ASX shares if you can’t stomach volatility, says experts appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Thursday
• Here are the top 10 ASX shares today
• These ASX 200 shares are up more than 10% in the last month
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• Here are the 3 most heavily traded ASX 200 shares on Wednesday

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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By now you likely know that the past few months have been hell for technology stocks.

The S&P/ASX All Technology Index (ASX: XTX) is more than 25% lower than where it started this year, and a whopping 30% down since November.

But some argue that tech businesses with sound financials and reliable earnings streams will inevitably recover those losses — and more.

This is why it was interesting to note 2 ASX tech shares nominated as buys by a pair of experts this week:

‘A significant advance’ for marketplace platform

Online real estate classifieds site Domain Holdings Australia Ltd (ASX: DHG) has suffered brutally, even more so than the All Tech index. 

Its shares are down more than 40% for the year. 

Yikes.

Fat Prophets chief Angus Geddes, however, thinks a positive catalyst is in the works.

“Domain’s pending acquisition of real estate campaign management platform Realbase will accelerate its agency solutions strategy and increase market penetration to about 50% of all Australian transactions.”

Geddes told The Bull the transaction makes sense “strategically and financially”, and gives Domain an opportunity to sell “higher value solutions”. 

“The deal is a significant advance in the evolution of the Domain marketplace strategy.”

According to CMC Markets, 7 out of 13 analysts rate Domain shares as a strong buy.

Revenue continues to climb

Software maker ​​Xero Limited (ASX: XRO) has also been hammered harder than the typical tech stock.

The Xero share price has lost more than 35% so far in 2022.

Medallion Financial Group analyst Jean Claude Perrottet reckons the sell-off has been overdone.

“Xero has generated strong growth since 2006 and now has more than 3 million subscribers,” he said.

“The company reported operating revenue of NZ$505.7 million in its first half result, an increase of 23% on the prior corresponding period.”

Burman Invest chief investment officer Julia Lee said last month that Xero shares would look “very interesting” once they dipped below the $100 mark.

Well, it closed Wednesday at $94.55.

“In our view, the share price offers value as it was recently trading well below its highs,” said Perrottet.

Xero shares are slightly more polarising among professional investors, with 6 out of 11 analysts surveyed on CMC Markets rating it as a strong buy while two warn that it’s a strong sell.

The post 2 ASX tech shares to buy for dirt cheap right now: experts appeared first on The Motley Fool Australia.

More reading

• 2 ASX 200 blue chip shares to buy in May: Analysts
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Motley Fool contributor Tony Yoo owns Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Xero. The Motley Fool Australia owns and has recommended Xero. 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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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) continued its poor run and sank again. The benchmark index fell 0.8% to 7,261.2 points.

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

ASX 200 expected to rebound

The Australian share market looks set to rebound on Thursday following an improved night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 36 points or 0.5% higher this morning. On Wall Street, the Dow Jones rose 0.2%, the S&P 500 climbed 0.2% and the Nasdaq traded flat.

Cochlear acquisition

The Cochlear Limited (ASX: COH) share price will be one to watch today. This follows news that the hearing solutions company is making an acquisition. Cochlear has agreed to pay A$170 million to acquire Oticon Medical. It currently has a base of more than 75,000 hearing implant recipients, which includes cochlear and acoustic implants. While Oticon Medical is expected to add A$75 million to $80 million to annual revenue, the business is currently loss making.

Oil prices push higher

It could be a decent day for energy shares including Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) after oil prices traded higher. According to Bloomberg, the WTI crude oil price is up 0.35% to US$102.06 a barrel and the Brent crude oil price is up to US$105.28 a barrel. This follows data out of the US which revealed that inventories remain tight.

Coles third quarter update

The Coles Group Ltd (ASX: COL) share price could be on the move today when the supermarket giant releases its third quarter update. According to a note out of Goldman Sachs, its analysts expect third quarter sales of $8.7 billion. This will be a 2.4% year on year increase and driven by comparable sales growth of 3.5% in the supermarkets division to $8 billion and 2% comparable sales growth in the liquor division.

Gold price tumbles

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a poor day after the gold price dropped to a two-month low overnight. According to CNBC, the spot gold price is down 0.95% to a two US$1,885.80 an ounce. A strong US dollar weighed on the precious metal.

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

More reading

• Here are the top 10 ASX shares today
• These ASX 200 shares are up more than 10% in the last month
• Green delivery milestone fails to electrify Coles share price
• How might the election outcome impact the outlook for ASX energy shares?
• ASX 200 shares trim losses despite surging inflation news

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 Cochlear Ltd. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. 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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If you’re looking for dividend shares to buy to combat inflation 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:

Adairs Ltd (ASX: ADH)

The first ASX dividend share that could be a top option is Adairs.

It the leading furniture and homewares retailer behind the Focus on Furniture, Mocka, and eponymous Adairs brands.

While the company has been underperforming in FY 2022 due to COVID headwinds, it has been tipped to bounce back strongly by analysts at Morgans. In light of this, the broker believes the market is undervaluing its shares and has put an add rating and $3.50 price target on its shares.

Morgans recently commented: “In FY23, we expect Focus to have bedded down and to have started a strategy of improving store economics while expanding its footprint. We expect the NDC [national distribution centre] to be up and running and delivering efficiencies. We expect Mocka to be making its first steps towards an omni-channel strategy. These factors underpin an expectation of positive earnings growth in FY23 and FY24, which we do not think are reflected in the multiple. ADD.”

As for dividends, the broker is forecasting fully franked dividends of 19 cents per share in FY 2022 and 26 cents per share in FY 2023. Based on the current Adairs share price of $2.79, this will mean yields of 6.8% and 9.3%, respectively, over the next couple of years.

National Australia Bank Ltd (ASX: NAB)

Another ASX dividend share for investors to look at is banking giant NAB.

It could be a top option for investors that are looking to gain exposure to the banking sector. Particularly given its strong position in business banking, the recent acquisition of digital bank 86 400, and the proposed acquisition of Citigroup’s Australian consumer business.

The team at Bell Potter expect the aforementioned acquisitions to allow the bank to “achieve scale in digital and consumer banking offerings.” It is partly for this reason that the broker has a buy rating and $34.50 price target on the bank’s shares at present.

In addition, the broker is forecasting fully franked dividends per share of 136.5 cents in FY 2022 and then 134.5 cents in FY 2023. Based on the current NAB share price of $32.20, this equates to yields of 4.2% and 4.1%, respectively.

The post 2 inflation-busting ASX dividend shares that brokers are tipping as buys appeared first on The Motley Fool Australia.

More reading

• Is the Westpac share price expensive in April?
• Here’s what the 5 biggest companies on the ASX 200 today were worth in 2000
• 2 cheap ASX shares to buy in May: Experts
• Why is the NAB share price beating the other ASX 200 banks in April?
• Beat inflation with these ASX dividend shares that analysts rate as buys

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 ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS 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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The Flight Centre Travel Group (ASX: FLT) share price has been struggling over the past three trading days.

Flight Centre shares have fallen 4.2% since the market close on Thursday 21 April to $21.72. In today’s trade, the Flight Centre share price slid 0.05%. For perspective, the S&P/ASX 200 Index (ASX: XJO) dropped 0.78%.

In recent days, Flight Centre has shared insights into the impact of COVID-19 on the company’s financial performance. Let’s take a look at what Flight Centre had to say.

‘Significant impact’

COVID-19 may “continue to adversely” affect Flight Centre for the foreseeable future, the airline noted in a prospectus for the issue of unsecured notes signed off by CEO Graham Turner on Friday.

Commenting on the ‘financial risk’, the report stated:

The COVID-19 pandemic has resulted in a significant short term impact and is expected to have a very significant medium to long term impact on the issuer’s business and operations and in particular, the demand for its services, which has reduced visibility on future earnings and cash flows, and has led to a material decline in revenues.

Flight Centre noted the high number of cancellations places “significant strain” on the company’s cash flows. Events cited in the report that could impact the tourism industry included wars, nuclear threats, terrorist attacks, floods, earthquakes, COVID-19, SARS, or any other disease.

However, today, Flight Centre presented a much more positive outlook in a Morgans roundtable presentation.

Flight Centre said it is “on the path to recovery”. Customers have been queuing outside Flight Centre shops since COVID-19 restrictions were lifted.

Flight Centre added that visits to friends and relatives are underpinning the international travel rebound. The company added: “Consultant productivity currently well above historic levels – looking to immediately recruit 500 leisure travel advisors globally to meet current and future demand.”

Flight Centre continues to be among the most shorted ASX shares, as my Foolish colleague James noted yesterday. The consensus broker position on Flight Centre is hold, according to a report on nabtrade.

Flight Centre share price snapshot

The Flight Centre share price has soared by 26% over the past year. It has ascended 16% this year to date. For perspective, the benchmark index has returned nearly 4% over the past year. In the past month, Flight Centre shares have jumped by more than 13%.

The company has a market capitalisation of about $4.34 billion.

The post How long will the Flight Centre share price keep getting battered by COVID-19? appeared first on The Motley Fool Australia.

More reading

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• How do you value the Flight Centre share price in April 2022?
• The Flight Centre share price just surged to a 6-month high. Here’s why
• Why are ASX 200 travel shares taking off on Wednesday?
• Here are the 5 best performing ASX travel shares of 2022 so far

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

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Now that we are getting towards the business end of April, it might be a good chance to take stock and check out the Westpac Banking Corp (ASX: WBC) share price.

As a big four ASX 200 bank, Westpac is one of the largest and most widely-held ASX shares on the market.

So as it currently stands, Westpac shares closed on Wednesday trading at $23.45 each, down a nasty 1.88% for the day. This places the Westpac share price 8.26% higher so far in 2022, a significant outperformance of the S&P/ASX 200 Index (ASX: XJO).

But over the past 12 months, Westpac’s performance hasn’t been quite as impressive. Since April 2021, Westpac shares have lost 7.31% of their value. The bank is still well in the red over the past five years, too, having gone backwards by a significant 33% or so over this period.

So that might lead some investors to wonder if the Westpac share price is cheap or expensive right now.

Are Westpac shares cheap compared to the other ASX 200 banks?

Well, let’s see how this ASX 200 bank is being priced compared to its peers. The price-to-earnings (P/E) ratio is a useful metric to employ when comparing the valuations of mature companies in the same sector.

Right now, Westpac shares have a P/E ratio of 17.57, meaning that investors are willing to pay $17.57 for every $1 of earnings the bank brings in. This tells us that, on a raw dollar-to-dollar earnings comparison, investors are valuing Westpac shares at a higher price than Australia and New Zealand Banking Group Ltd (ASX: ANZ). ANZ shares currently trade with a P/E ratio of 13.53.

However, investors are giving Westpac shares an almost identical premium to fellow bank National Australia Bank Ltd (ASX: NAB). NAB currently has a P/E ratio of 17.61, just a tad higher than Westpac’s own.

But Westpac can’t shine a light on Commonwealth Bank of Australia (ASX: CBA) shares. CBA commands a clear premium for ASX bank investors. In CBA’s case, investors are willing to pay $19.80 for every $1 of CBA’s earnings.

So right now, Westpac shares are cheaper than CBA and NAB on a P/E ratio basis but more expensive than ANZ.

The post Is the Westpac share price expensive in April? appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns National Australia Bank Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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