ASX shares have been outperforming many of their global counterparts in 2022, and one firm believes the party will continue for stocks listed down under.

Global investment management firm T. Rowe Price has upped its position in Australian equities this month, moving it to ‘overweight’.

So, what’s got the international investment firm feeling bullish about Australia? Let’s take a look.

Why is this investment house bullish on ASX shares?

The global market is struggling this year, but ASX shares are bucking the trend.

As the chart below depicts, the S&P/ASX 200 Index (ASX: XJO) is outperforming both the S&P 500 (SPX) and the Nasdaq 100 (NDX) in 2022.

And, according to T. Rowe Price, the near future could bring even more gains for ASX investors.

Its bullish sentiment for ASX shares is born from Australia’s location, its pandemic response, recent decisions made by the Reserve Bank of Australia, and the ASX’s weighty materials sector. The firm commented:

By its geography, Australia is, first: isolated from the geopolitical tensions and, second: a beneficiary of the re-allocation of commodity trading activity.

The domestic economy emerged from the last COVID lockdowns on a solid footing: unemployment is down, PMIs [purchasing managers’ index] still in expansionary mode, and business surveys suggest this should continue in the near term.

While elevated, inflation is only slightly higher than the RBA target range, implying a lower burden to the economy relative to other developed economies.

These positive drivers have been seen by the outperformance of the Australian stock markets year to date.

Given optimism in recent earnings revisions, T. Rowe Price believes ASX shares could continue to outperform “in the near term”.

T. Rowe Price is also overweight on Australian government bonds following their recent underperformance. Though, it’s dropped some of its holding in Australian yields, saying they might soon be over-extended.

The firm’s also keeping an eye on business conditions lest they slump on supply and labour shortages.

Finally, it’s wary the RBA’s “dovish” approach could be unsustainable. In fact, the firm warns of potential volatility when the RBA’s stance catches up with market expectations.

T. Rowe Price dumped some of its holdings in Japanese and emerging markets to fund its new position in ASX shares.

The post The future looks bright: Here’s why this investment firm is doubling down on ASX shares in April appeared first on The Motley Fool Australia.

More reading

• Why is the Wesfarmers share price having such a rough trot in April?
• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• ASX 200 midday update: BHP, Megaport, and Zip release Q3 updates

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

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

Tesla (NASDAQ: TSLA) CEO Elon Musk is as polarizing of a figure as they come. On one hand, he has propeled the electric vehicle (EV) industry forward from a doubted concept to become a trend that legacy automakers are trying to ride. But he also receives criticism for actions like his online behavior and making a multi-billion-dollar offering to buy Twitter (NYSE: TWTR).

However, there’s no denying that Tesla is a remarkable company. Tesla stock is up on the year while the Nasdaq Composite is down 13% and virtually every major carmaker to EV newcomer — from Toyota to Rivian Automotive, is down 5% to 66%. Here’s why Tesla continues to defy the Nasdaq’s gravity in 2022, and whether the stock is a good buy now. 

1. Tesla is outperforming the competition

Tesla tends to report its quarterly production and delivery numbers about two to three weeks prior to its earnings report. On April 2, Tesla reported quarterly production of 305,407 units and deliveries of 310,048 units, which was a big jump from Q1 2021 results of 180,338 units produced and 184,800 units delivered. However, the quarter-over-quarter growth marked a major slowdown compared to what investors were used to, as Tesla produced 305,840 units in Q4 2021 and delivered 308,600 units. Tesla attributed the slowdown to supply chain challenges and factory shutdowns. 

However, Tesla’s growth outlook is favorable. The company began production and delivery from its Berlin factory in March and just started production from its Texas factory in April. The opening of the two new factories will alleviate pressure from Tesla’s Shanghai factory and could allow it to keep managing supply chain challenges and the global chip, material, and battery shortage better than its peers.

In its recent investor presentation, Tesla said that it began deliveries of its crossover SUV, the Model Y, from its Texas factory and Germany factory — while also making an effort to move battery cell production in-house and diversify its supply chain and procurement process. 

In sum, Tesla is showing resilience during an industrywide shortage while charting a path toward another record production and delivery year in 2022.

2. Tesla is growing faster than ever

Even with lower Q1 2022 production and delivery figures, it’s worth mentioning that Tesla’s revenue, earnings, and free cash flow growth continue to impress investors.

The company recorded Q1 2022 automotive revenues of $16.86 billion, a year-over-year increase of 87%. In Q1 2022 alone, Tesla produced 36% of the automotive revenue it earned for all of 2021.Tesla cited its increased selling price as one of the reasons for higher revenue growth. 

Despite the higher revenue, Tesla’s operating expenses were about the same at $1.86 billion compared to $1.62 billion in 2021 — just 15% higher despite total revenues being 81% higher. Similarly, Q1 2022 net cash provided by operating activities was 143% higher compared to Q1 2021 but capital expenditures were only 31% higher, while led to free cash flow of $2.23 billion — the second-highest quarterly performance ever. Tesla ended the quarter with $17.51 billion in cash and cash equivalents on its balance sheet. 

3. Tesla is more profitable than ever

One of Tesla’s most impressive stats is its operating margin. Unlike gross margin, which factors in the cost of goods sold, the operating margin also factors in operating expenses like utilities, wages, selling, general, and administrative expenses, sales and marketing, research and development, and other costs that are related to running the business. Tesla notched a record high operating margin of 19.2% in Q1 2022, meaning for every $1 it made in revenue it earned an operating profit of 19.2 cents. For comparison, here are the 2021 operating margins of major automakers, including Tesla.

TSLA Operating Margin (Annual) data by YCharts

Tesla cited higher vehicle deliveries, increased average selling prices, reduced cost of goods sold, lower stock-based compensation, and increased regulatory credit sales as profitability drivers that offset higher raw material costs, commodity, logistics, and shipping costs and an increase in operating expenses. 

In an industry constrained by rising raw material costs, rising parts and components costs, higher shipping and freight costs, and higher labor costs, it is impressive to see Tesla grow its operating margin when other major automakers will likely report lower operating margins in the quarters to come.

Tesla is a phenomenal company but an expensive stock

The investment thesis for Tesla remains intact. And in many ways, it is becoming harder to argue that Tesla isn’t the best global automaker. It has the greatest growth prospects, the best technology, and is ahead of the curve while the competition tries to catch up, it continues to deliver on its promises. Tesla is more profitable than ever and it has its own charging network plus investments in solar energy and energy storage. It also has a lean business model that doesn’t depend on the dealership network. But as Warren Buffett famously said, “you pay a very high price in the stock market for a cheery consensus.” Put another way, great companies are often expansive stocks. And that logic applies perfectly to Tesla.

Tesla’s market cap is $1.08 trillion. It earned adjusted diluted non-GAAP earnings per share (EPS) of $3.22 in Q1 2022. So even if Tesla continues to grow earnings and earn, let’s say $15 in adjusted 2022 EPS, it would still have a forward price to earnings ratio of roughly 70. Tesla stock is by no means cheap. And it shouldn’t be — it’s a really really good business. For risk-tolerant investors who are optimistic about the growth of the EV industry, adding Tesla to a diversified basket of EV stocks isn’t the worst idea so long as it’s understood that Tesla stock is prone to sharp gyrations to the upside and downside. In the last year alone, Tesla stock has been as high as $1,243.49 per share and as low as $546.98 per share. 

As with every business, it’s important to understand what you are buying and why you want to own it. With Tesla, the investment thesis is simple. It’s a bet on the long-term growth of EV adoption via buying the industry leader for a premium price. For some folks, that’s a thesis that makes sense. But for others, the electric car stock may simply be an impressive company that is just too expensive to consider now. 

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

The post 3 reasons Tesla’s monster earnings can help it keep crushing the Nasdaq in 2022 appeared first on The Motley Fool Australia.

More reading

• Why investors are selling Tesla stock ahead of today’s earnings
• Can the Tesla share price really quadruple from here?
• Why Tesla stock popped before earnings
• Why Tesla stock popped on Monday
• Better stock-split buy: Tesla vs. GameStop

Daniel Foelber has the following options: long May 2022 $705 puts on Tesla and short May 2022 $700 puts on Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Tesla and Twitter. 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. 

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

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The Woolworths Group Ltd (ASX: WOW) share price has continued to deliver wealth to investors over the past five years.

Arguably, investing your money in the ASX’s safest and most reliable companies can reap some serious rewards over time.

Below, we calculate how much you would have made if you’d bought $5,000 worth of Woolworths shares five years ago.

How much would your initial investment be worth now?

If you spent $5,000 on Woolworths shares exactly 5 years ago, you would have picked them up for $23.41 apiece. The purchase would deliver approximately 213 shares without topping up during down periods.

Looking at yesterday’s closing price, the Woolworths share price finished at $39.47. This means those 213 shares would now be worth $8,407.11.

When looking at percentage terms, this implies an average yearly return of 10.95%. In comparison, the S&P/ASX 200 Index (ASX: XJO) has given back roughly 5.34% over the same timeframe.

And the Woolworths dividends?

Over the course of the last five years, Woolworths has made a total of 12 dividend payments from 2017 to 2022. Its latest dividend distribution was significantly lower as the Omicron outbreak affected operations during the first half of FY22.

Adding those 12 dividend payments gives us an amount of $5.30 per share. Calculating the number of shares owned against the total dividend payment gives us a figure of $1,128.90.

When putting both the initial investment gains and dividend distribution, an investor would have $9,536.01 worth of Woolworths shares.

As you can see from the above, investing in Woolworths shares would have almost doubled your initial investment.

In comparison, investing the same amount in an ASX 200 index-tracking fund would have netted you a total figure of $6,485.02 (albeit excluding any dividends).

Woolworths share price snapshot

Over the past 12 months, the Woolworths share price has travelled 5% higher and is up 3% year to date.

The company’s shares hit a 52-week low of $33.45 in January before rebounding higher in the following months.

Woolworths presides a market capitalisation of roughly $47.91 billion and has more than 1.21 billion shares on its registry.

The post Wow! Here’s how much $5,000 of Woolworths shares bought 5 years ago would be worth now appeared first on The Motley Fool Australia.

More reading

• Why has the Woolworths share price outperformed Wesfarmers so far in 2022?
• Woolworths shareholders get their dividends today. Here’s the lowdown
• What’s impacting the Woolworths share price on Tuesday?
• Price check: Why did the Woolworths share price push 5% higher in March?
• ASX market beater? Here’s how Coles shares performed during March

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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 Endeavour Group Ltd (ASX: EDV) share price was out of form on Thursday.

The alcohol retailer’s shares tumbled 3.5% to $7.61 following the release of its third quarter trading update.

Is the Endeavour share price in the buy zone?

One leading broker that believes the weakness in the Endeavour share price as a buying opportunity is Goldman Sachs.

According to a note this morning, in response to its third quarter update, the broker has retained its conviction buy rating and lifted its price target to $8.30.

Based on the current Endeavour share price, this implies potential upside of 9.1% for investors over the next 12 months.

And with Goldman expecting a fully franked 2.5% dividend yield in FY 2022 and 3.1% in FY 2023, the total return on offer stretches to approximately 12%.

The broker commented: “We update our TP to A$8.30/sh (vs prior A$8.00/sh, implying 9.1% TP upside) to reflect EDV’s 3Q22 sales update and a deep dive into the Hotels opportunity as the company begins to see accelerated recovery back to pre-COVID levels in 3Q22.”

Why is Goldman bullish?

A couple of the main reasons that Goldman Sachs is bullish on the Endeavour share price are the company’s digital capabilities and customer loyalty. The broker believes these leave it well-placed for growth in the future.

Goldman explained:

“We continue to be bullish on the digital consumer capabilities of EDV with 3Q22 Dan’s members at 6.4m (>4m of which was active in last 6mths) and online penetration remaining at 9.6% (though lower towards end of quarter as reversion back to in store gathered pace).

We continue to believe that EDV is unrivaled in its capability to deliver a seamless omni-channel experience to consumers and can manage well through short-term cost volatilities with a less price-sensitive portfolio and high consumer loyalty. Retain Buy (on CL).”

The post Why this broker says Endeavour shares are a conviction buy appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Why Australian Ethical, BHP, Endeavour, and Megaport shares are tumbling today
• ‘Another period of volatility’: What’s going on with the Endeavour share price today?
• 3 ASX 200 shares smashing 52-week highs on Tuesday
• 3 ASX 200 shares hopping to new 52-week highs 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 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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Fund manager Wilson Asset Management (WAM) has identified two top small-cap ASX shares in its portfolio that could be ideas.

WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE) and WAM Capital Limited (ASX: WAM).

There’s also one called WAM Microcap Limited (ASX: WMI), which focuses on small-cap ASX shares with a market capitalisation under $300 million at acquisition.

WAM says WAM Microcap targets “the most exciting undervalued growth opportunities in the Australian microcap market”.

These are the two small-cap ASX shares the fund manager outlined in its most recent monthly update:

Myer Holdings Ltd (ASX: MYR)

WAM noted that Myer operates 58 department stores across Australia.

Last month, Myer announced its FY22 half-year earnings, which were reportedly better than the market had been expecting.

The fund manager pointed out that the company grew sales by 8.5% to $1.52 billion year-on-year, despite spending 23% of in-store trading days under COVID-19 lockdowns.

Myer’s half-year net profit after tax (NPAT) of $32.3 million increased 55.2% year-on-year after adjusting for the government JobKeeper allowance.

WAM believes that the small-cap ASX share’s in-store sales will continue to recover as economies reopen and foot traffic returns to CBDs.

The fund manager is positive on Myer’s medium-term outlook and believes that the company can continue to recover and generate double-digit earnings growth over the next few years.

Objective Corporation Limited (ASX: OCL)

Objective Corporation is an Australian-based business that provides “mission-critical” software providers to the public sector, working with more than 1,000 government organisations.

Last month, the company announced plans to acquire Atlanta-based software company Simflofy and expand into North America. Simflofy provides more than 100 customers with software solutions targeted to all levels of the United States government, financial services, insurance and Fortune 500 companies.

WAM expects the acquisition will add to the small-cap ASX share’s earnings while addressing the strong demand for ‘federated’ information technology governance structures.

The fund manager believes that the ASX share has a positive outlook with a strong balance sheet which provides opportunities for more acquisitions that will add to earnings.

The post Leading fund manager names these 2 small-cap ASX shares as buys appeared first on The Motley Fool Australia.

More reading

• Why is the Myer (ASX:MYR) share price slipping today?
• The next ASX share ready to join the 20-bagger club: expert

Motley Fool contributor Tristan Harrison owns WAM MICRO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Objective Corporation 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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The Wesfarmers Ltd (ASX: WES) share price has gone down more than 2% in April. That compares to a 1.4% gain for the S&P/ASX 200 Index (ASX: XJO).

However, before considering why this might have happened, it may be worth noting that this underperformance is only looking at one month of returns.

Over the past five years, Wesfarmers shares have risen by around 60%, while the ASX 200 has risen by just under 30%.

So, what’s going on with this underperformance in April?

What could be impacting the Wesfarmers share price?

It is being widely reported that local and global inflation is elevated. This has led to expectations that the Reserve Bank of Australia (RBA) is going to start increasing interest rates in June 2022.

As reported by Reuters and other media outlets, the Westpac-Melbourne Institute index of consumer sentiment showed a decline for a fifth straight month because of rising inflation and the potential for higher interest rates, hurting spending intentions.

Reuters reported that the “survey suggested the government’s budget in March had a limited impact on the national mood, even though it contained pre-election tax breaks and cuts to fuel excise”.

Westpac chief economist Bill Evans was quoted as saying: “There is further evidence that interest rates, inflation and weather continued to unnerve consumers in the current survey.”

The worst decline in sentiment occurred with households that had a home loan.

However, Westpac also pointed out that mortgage borrowers have been accumulating a savings buffer during COVID-19 in mortgage offset accounts, with balances rising to 2.5% of disposable income over FY21 compared to around 1% in earlier years. Due to that, the median excess payment buffer is 21 months, according to Westpac, up from 10 months before the pandemic.

However, Westpac has also noted that, by looking at RBA data, it is unsure how much of the buffer is available to the most vulnerable borrower groups. A fifth of variable-rate borrowers would face a 40% lift in average repayments if the RBA rate were to increase by 200 basis points, according to Westpac.

How is the company planning to handle inflation for consumers?

When Wesfarmers released its FY22 half-year result, it said that overall economic conditions in Australia remain favourable, supported by strong employment and high levels of accumulated household savings.

It said it is actively managing increasing inflationary pressure and will leverage its scale to mitigate the impact of rising costs.

Wesfarmers said its retail businesses will increase their focus on price leadership and are “well-positioned to provide customers with great value on everyday products as rising cost-of-living pressures impact household budgets”.

COVID-19 continues to impact the business. It said that it’s experiencing stock availability impacts. Supply chain disruptions, elevated transport costs, and constraints in the domestic labour market are expected to continue in the second half.

Is the Wesfarmers share price an opportunity?

Many brokers are unconvinced.

The broker Citi is ‘neutral’ on Wesfarmers, with a price target of just $50. That implies the Wesfarmers share price — which is currently $49.35 — may be almost flat over the next year.

Credit Suisse is also ‘neutral’, but the price target is $55.19. That suggests a possible rise of more than 10%.

On Citi’s numbers, the Wesfarmers share price is valued at 24 times FY22’s estimated earnings with a grossed-up dividend yield of 5.4%.

The post Why is the Wesfarmers share price having such a rough trot in April? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• ASX 200 midday update: BHP, Megaport, and Zip release Q3 updates
• What is the Betashares Geared Australian Equity Fund and is it worth buying?

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 owns and has recommended Wesfarmers 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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Are you looking for dividend shares to buy? If you are, then you may want to look at the shares listed below that have been named as buys by analysts.

Here’s why these ASX 200 dividend shares could be in the buy zone:

Super Retail Group Ltd (ASX: SUL)

The first ASX 200 dividend share that could be in the buy zone is Super Retail. It is the retail conglomerate behind the BCF, Macpac, Rebel, and Supercheap Auto brands.

Analysts at Citi are positive on the company and recently noted that the Federal Budget could be a boost for its brands. In light of this, it believes recent weakness in the Super Retail share price could be a buying opportunity.

Citi has put a buy rating and $14.80 price target on the company’s shares. The broker is also expecting generous yields in the near term and has forecasts fully franked dividends of 63 cents per share in FY 2022 and 62 cents per share FY 2023.

Based on the latest Super Retail share price of $10.82, this will mean yields of ~5.8% for investors.

Telstra Corporation Ltd (ASX: TLS)

Another ASX 200 dividend share for investors to look at is telco giant, Telstra.

Following years of earnings declines and dividend cuts brought about by the rollout of the NBN, Telstra’s outlook has arguably become the best it has been in over a decade.

The key to its positive outlook is successful execution of its T22 strategy and the new T25 strategy. The latter sees management targeting solid and sustainable growth in the coming years.

Morgans is very positive on the telco giant and has an add rating and $4.56 price target on its shares.

It is also expecting fully franked dividends per share of 16 cents in FY 2022 and FY 2023. Based on the current Telstra share price of $4.04, this will mean yields of 4% for investors.

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

More reading

• Here are the 3 most heavily traded ASX 200 shares on Thursday
• After going backwards in 2022, could the Telstra share price be set to dial up some gains this quarter?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Here are the ASX retail share winners and losers of the last quarter
• Do experts think the Telstra share price is good value right 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. owns and has recommended Super Retail Group Limited. The Motley Fool Australia owns and has recommended Super Retail Group Limited and Telstra Corporation Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Thursday, the S&P/ASX 200 Index (ASX: XJO) was on form again and pushed higher. The benchmark index rose 0.3% to 7,592.8 points.

Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:

ASX 200 expected to sink

The Australian share market looks set to end its winning streak following a poor night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 63 points or 0.8% lower this morning. In the US, the Dow Jones dropped 1%, the S&P 500 was down 1.5%, and the Nasdaq sank 2.1% after the US Federal Reserve hinted at a big rate hike next month.

Oil prices rise

Energy producers including Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a decent finish to the week after oil prices pushed higher. According to Bloomberg, the WTI crude oil price is up 1.2% to US$103.39 a barrel and the Brent crude oil price is up 1.1% to US$107.97 a barrel.

Endeavour remains a buy

The Endeavour Group Ltd (ASX: EDV) share price remains great value according to Goldman Sachs. In response to the alcohol retailer’s quarterly update, the broker reiterated its conviction buy rating and lifting its price target to $8.30. Goldman said: “We continue to believe that EDV is unrivaled in its capability to deliver a seamless omni-channel experience to consumers and can manage well through short-term cost volatilities with a less price-sensitive portfolio and high consumer loyalty.”

Gold price falls

Gold miners Newcrest Mining Ltd (ASX: NCM) and St Barbara Ltd (ASX: SBM) could have a subdued finish to the week after the gold price edged lower. According to CNBC, the spot gold price is down slightly to US$1,954.7 an ounce. Traders were selling gold after treasury yields jumped.

Bega Cheese downgraded

The Bega Cheese Ltd (ASX: BGA) share price could have a difficult finish to the week. This morning Goldman Sachs downgraded the food company’s shares to a sell rating with a $5.15 price target. The broker explained: “While our call is largely around the full valuation, we are concerned about the headwinds facing the Australian Dairy Industry and the potential impact on future earnings.”

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

More reading

• Here are the top 10 ASX shares today
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why Australian Ethical, BHP, Endeavour, and Megaport shares are tumbling today
• ASX 200 midday update: BHP, Megaport, and Zip release Q3 updates
• ‘Another period of volatility’: What’s going on with the Endeavour share price 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 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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If you’re interested in adding some S&P/ASX 200 Index (ASX: XJO) shares to your portfolio, then the three listed below could be top options.

These ASX 200 shares have been named as buys with meaningful upside potential. Here’s what you need to know about them:

Seek Limited (ASX: SEK)

The first ASX 200 share that could be a buy is this leading job listings company. Seek appears well-positioned for growth thanks to its leadership position in the ANZ market, strong pricing power, and exposure to the region’s recovery from the COVID-19 pandemic.

Morgan Stanley is a fan of Seek. Its analysts currently have an overweight rating and $36.00 price target on its shares. It expects Seek to benefit from the tight labour market and higher than normal rates of job churn.

TechnologyOne Ltd (ASX: TNE)

Another ASX 200 share to look at is enterprise software provider TechnologyOne. It is currently transitioning to become a software-as-a-service (SaaS) focused business. Pleasingly, management has a lot of confidence in the transition and is aiming to almost double its annual recurring revenue (ARR) to $500 million by FY 2026.

The team at Goldman Sachs is very positive on Technology One. So much so, this week the broker initiated coverage on the company’s shares with a buy rating and $14.00 price target. Goldman believes the risks are to the upside for TechnologyOne’s ARR target.

Westpac Banking Corp (ASX: WBC)

A final ASX 200 share that could be in the buy zone is Westpac. Australia’s oldest bank has seen its shares underperform peers materially over the last six months. This is unwarranted according to analysts at Morgans, which see “considerable value” in the bank’s shares. Especially given its “expectation of significant cost out by FY24F.”

Morgans has an add rating and $29.50 price target on the bank’s shares.

The post Analysts name 3 ASX 200 shares to buy now appeared first on The Motley Fool Australia.

More reading

• Westpac share price lifts despite $12 million ASIC fine
• Goldman Sachs has just slapped buy ratings on these ASX tech shares
• Leading brokers name 3 ASX shares to buy today
• 2 ASX 200 dividend giants named as buys by brokers
• Does Westpac have a dividend reinvestment plan?

Motley Fool contributor James Mickleboro owns NEXTDC Limited and SEEK 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 SEEK 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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Today, the S&P/ASX 200 Index (ASX: XJO) moved closer to its all-time high of 7,632 points as the market rallied for the fifth day in a row. At the end of the session, the benchmark index finished 0.31% higher at 7,592.8 points.

Positive sentiment was alive and well inside the Aussie share market today. Nearly 70% of shares in the ASX 200 closed the day higher. The biggest gains could be found across the industrials and real estate sectors.

On the flip side, it was a difficult day for tech and mining companies. The hardest-hit share out of the entire bunch was cloud interconnectivity company Megaport Ltd (ASX: MP1), falling 21%.

However, the question is: which shares delivered the biggest returns to investors on the ASX today? Here are the top ten stocks that came through for investors:

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Challenger Ltd (ASX: CGF) was the biggest gainer today. Shares in the financial services company appreciated by 9.81% following the release of its quarterly update. Find out more about Challenger here.

Following closely behind today was supply chain equipment pooling company, Brambles Ltd (ASX: BXB). A relatively positive quarterly trading update left investors pleased, translating into a 7.98% rise in shares by the end of the day. Uncover the latest Brambles details here.

Today’s top 10 biggest gains were made in these ASX shares:

ASX-listed company	Share price	Price change
Challenger Ltd (ASX: CGF)	$7.50	9.81%
Brambles Ltd (ASX: BXB)	$10.82	7.98%
Lendlease Group (ASX: LLC)	$12.06	5.05%
Viva Energy Group Ltd (ASX: VEA)	$2.72	4.62%
Cochlear Ltd (ASX: COH)	$236.16	3.94%
Qantas Airways Ltd (ASX: QAN)	$5.64	3.87%
AMP Ltd (ASX: AMP)	$1.085	3.83%
Ramsay Health Care Ltd (ASX: RHC)	$82.99	3.74%
Zimplats Holdings Ltd (ASX: ZIM)	$33.51	3.71%
Centuria Capital Group (ASX: CNI)	$2.84	3.27%

Our top 10 ASX shares today countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

The post Here are the top 10 ASX shares today appeared first on The Motley Fool Australia.

More reading

• Why Betmakers, Brambles, Challenger, and Stockland shares are charging higher
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• 3 ASX 200 stocks smashing 52-week highs today
• Here’s why the Brambles share price is soaring 7% today
• ASX 200 midday update: BHP, Megaport, and Zip release Q3 updates

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Cochlear Ltd. and MEGAPORT FPO. The Motley Fool Australia has recommended Challenger Limited, Cochlear Ltd., MEGAPORT FPO, and Ramsay Health Care 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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