Step One Clothing Ltd (ASX: STP) shares are catching the eye on Wednesday morning.
At the time of writing, the ASX small cap stock is up a massive 25% to $1.82.
What’s going on with this ASX small cap stock?
Investors have been buying the direct-to-consumer online underwear retailer’s shares this morning after it released a strong trading update.
This will no doubt be a welcome relief to shareholders that have endured some hard times since Step One’s IPO in 2021.
After listing at $1.53 per share in November 2021, the company’s shares climbed as high as $3.00 in the first few weeks. However, it wasn’t too long until its shares were down in the low 20s, losing over 90% of their value from top to bottom.
Investors were selling the ASX small cap stock down following a sudden deterioration in its performance caused by challenging trading conditions.
However, it seems that the company has found its legs again and is predicting strong growth in FY 2024.
Strong FY 2024 growth
According to a trading update released this morning, it expects to report revenue of $84 million in FY 2024. This is up 29% on FY 2023’s revenue and 16.3% on what it recorded in FY 2022.
Getting investors even more excited, though, was its earnings growth. Management expects its earnings before interest, tax, depreciation, and amortisation (EBITDA) to increase at the even quicker rate of 42% year on year to $17 million.
This is now higher than the prospectus forecast of $15.1 million for FY 2022, which it previously failed to achieve. Better late than never.
No further financial information was provided by the ASX small cap stock. So, investors will have to wait and see what the above means for net profit and dividends when it releases its full-year results next month. This release is expected to be made on 21 August.
Step One’s founder and CEO, Greg Taylor, was pleased with the company’s performance in FY 2024 and highlights its expanding customer base. He said:
I am pleased to report another period of profitable growth for Step One. Our high-quality sustainable innerwear products, in-house marketing capabilities and brand ownership continue to resonate well with customers. With a strong financial position, we are well positioned to continue expanding our customer base, establish new retail partnerships and grow our brand presence globally. I remain very confident that Step One is in a strong position to continue its profitable growth.
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The interview, which was published Tuesday, took place at Mar-a-Lago in late June, before the debate that was a disaster for his opponent, President Joe Biden, and before Trump survived an assassination attempt.
During the interview, Trump recounted an interaction he had with Cook back in 2019, when Trump announced tariffs of 25% on imports from China.
After Bloomberg reported that Apple asked for a waiver for parts made in China that were used in Mac Pro computers, Trump publicly dismissed the idea.
"Apple will not be given Tariff wavers, or relief, for Mac Pro parts that are made in China," Trump said in a Twitter, now X, post. "Make them in the USA, no Tariffs!"
In the recent interview with Bloomberg, Trump said he backed down after Cook reached out to him directly to meet. Trump said it was "impressive" and that he told him to come meet him.
"He said to me, 'I need help, you have tariffs of 25% and 50% [on Apple products imported from China],'" Trump remembered, according to Bloomberg. "He said, 'It would really hurt our business. It would destroy our business, potentially.'"
Trump said that he countered Cook by pressing Apple to manufacture in the US.
"I said, 'I'm gonna do something for you guys,'" Trump said, "'but you have to build in this country.'"
Representatives for Trump and Apple did not immediately respond to requests for comment from Business Insider.
Months later Apple announced it would begin construction on an Austin campus, though Bloomberg noted plans to build the campus were announced a year earlier, and it's unlikely Trump was responsible for getting it built.
While they maintained a good working relationship during the Trump presidency, it hasn't been all love between the two billionaires. Cook appeared to distance himself following the January 6 Capitol riot. He called the riot "sad and shameful" and said he thought those responsible needed to be held accountable.
Still, Trump has previously called Cook a "great executive because he calls me and others don't" when there is a problem.
"Others go out and hire very expensive consultants," Trump said in 2019, CNBC reported. "Tim Cook calls Donald Trump directly."
Sam Altman and a photo of the iconic block of Lombard St, which is near Altman's $27 million mansion
JASON REDMOND/AFP via Getty Images//Tayfun Coskun/Anadolu via Getty Images
Sam Altman's $27 million mansion is riddled with defects, a lawsuit claims.
The lawsuit also claims developer Troon Pacific knew of significant issues before selling the home.
Altman had to deal with sewage spills, water leaks, and mold, per the suit.
Sam Altman is not pleased with his $27 million mansion.
A recent lawsuit filed in San Francisco Superior Court on behalf of a home on 950 Lombard St. — which public records indicate is connected to the OpenAI CEO — accuses local developer Troon Pacific of overselling one of San Francisco's most expensive homes.
The complaint alleges that developers did not disclose that the house was riddled with construction flaws. It also claims that the CEO of Troon Pacific was "aware of pervasive and significant defects" with the home but sold it to Altman anyway.
The San Francisco Chronicle was the first to report on the lawsuit, and the SF Standard reported on Altman's connection to the home.
The OpenAI CEO suffered multiple incidents at the home, including raw sewage being dumped at the side of his home, "a crushed sewer pipe running from the laundry system that created a back-up and spillage," and multiple water leaks, the lawsuit says.
In August, a flood intruded the "entire subfloor of the lower level" of the home, causing widespread mold, the complaint stated. The lawsuit said it would cost $4 million to repair the home.
Per the complaint, the water source was the highly advertised infinity pool, which had a "poor and substandard waterproofing design and installation."
"In sum, owner was misled into buying a $27,000,000 'lemon'," the lawsuit states.
The flashy San Francisco mansion has been featured in multiple news and magazine articles. It includes a Batcave-like garage with an automobile turntable and views as far as Alcatraz Island.
"This coyote moved into my house and scratches on the door outside," Altman told Time in a December interview. "It's very cute, but it's very annoying at night."
Representatives for Altman, 950 Lombard LLC, and Troon Pacific did not immediately respond to a request for comment.
The Core Lithium Ltd (ASX: CXO) share price is surging higher today.
Shares in the All Ordinaries Index (ASX: XAO) lithium stock closed yesterday trading for 11 cents. In morning trade on Wednesday, shares are swapping hands for 12.5 cents apiece, up 13.6% at the time of writing.
This comes following the release of the lithium miner’s quarterly update covering the three months to 30 June.
Read on for the highlights.
Record quarterly shipments boost Core Lithium share price
Investors are bidding up the Core Lithium share price after the miner reported it had achieved record quarterly shipments of 33,027 dry metric tonnes (dmt) of spodumene concentrate.
The Spodumene concentrate, at 4.8% grade was sold at an average price of US$1,078/dmt. That’s 16.5% higher than the prior quarter, which management said reflected “the marginal increase” in spodumene concentrate price over the three-month period.
As expected, spodumene concentrate production declined by 18% to 20,563dmt as the Core’s Run-of-Mine (ROM) stockpiles are now fully depleted, with all processing activities completed as planned.
The company’s operational sites are now being maintained in a state of readiness until such time as market conditions (lithium prices) improve.
The miner reiterated its revised FY 2024 guidance for production of 95,020dmt and operating costs of $1,396/dmt.
The quarter just past also saw Paul Brown take over as CEO, commencing on 4 June.
As at 30 June, Core Lithium had $87.6 million in cash.
What did management say?
Commenting on the results lifting the Core Lithium share price today, Brown said:
We are pleased that we have managed a difficult FY24 with several positive achievements to carry forward into FY25. The June quarter saw record quarterly spodumene concentrate shipments and our lowest quarterly operating costs.
Brown added:
With the suspension of operations and the site moving to care and maintenance, the Company has significantly reduced its cost base across the business…
Looking ahead, we intend to put Finniss in a position where it can restart as a longer life lower cost operation and restore shareholder value through sensible exploration and potential corporate opportunities.
The miner also said that discussions with interested parties are continuing regarding the potential sale of 5,178 wmt of spodumene concentrate in FY25.
Core said its FY 2025 exploration will be focussed on advancing and testing targets with the potential to host lithium deposits “of meaningful scale” within trucking distance of its Finniss lithium processing plant.
The company’s FY 2025 exploration program also includes advancing gold, uranium, niobium, and REE prospects within its Central Australian tenement holdings outside the Finniss region.
Core Lithium share price snapshot
With today’s intraday gains factored in, the Core Lithium share price remains down 87% over 12 months.
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Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Westpac Banking Corp (ASX: WBC) shares and the rest of the big four banks have delivered very strong returns for investors over the past 12 months.
Over the period, Westpac shares are up over 30%, ANZ Group Holdings Ltd (ASX: ANZ) shares are up over 20%, Commonwealth Bank of Australia (ASX: CBA) shares are up 30%, and National Australia Bank Ltd (ASX: NAB) shares are up almost 40%.
While this is great news for shareholders, one leading broker believes now could be the time to take profit and move on.
What is the broker saying about Westpac and other bank shares?
Bell Potter has been busy running the rule over the big four banks. It believes they are expensive now and investors should be underweight with their exposure to the sector before a correction comes. It explains:
The ASX 200 banks index has outperformed the broader index over the past 12 months, generating total returns of 40% (vs the market of 16%). In our view, the banks are too expensive at current levels. Our recommendation is an underweight to the banks as we expect the sector is due a correction without a significant change to the earnings outlook.
Why are they expensive?
The broker highlights that the big four banks look overvalued when compared to global peers. This is even after factoring in the resilient Australian economy and strong historical performances. It adds:
Australian banks appear overvalued compared to global peers. Despite their strong historical performance and the resilience of the Australian economy and housing market, their current Return on Equity (ROE) figures do not justify the elevated Price/Book (P/B) ratios. The current ROE, often in the low-to-mid-teens, seems insufficient to support P/B ratios that are considerably higher than those of global peers with superior ROEs.
One key example is US banking giant JP Morgan (NYSE: JPM), which is performing stronger than Commonwealth Bank but trades at a sharp discount. Bell Potter explains:
For instance, consider JP Morgan (JPM), a high-quality US bank. JPM currently generates an ROE of ~15% and trades on a P/B of 1.7x. In contrast, CBA generates an ROE of ~13% but trades on a P/B of 2.7x. Given the current fundamentals, we struggle to reconcile this 60% premium for CBA over JPM (and other global banks).
Historically expensive
Westpac and the big four bank shares are not just expensive compared to global peers, but also compared to their own historical multiples according to the broker.
It highlights that their valuations imply strong earnings growth is coming. However, the market is actually forecasting earnings to be going backwards in FY 2025. Bell Potter’s analysts explain:
In our view, bank sector valuations are expensive. Most valuation metrics point to elevated prices. The sector forward Price/Earnings (P/E), Price/Book (P/B) and P/E Rel Market all point to the banks being overvalued. P/E, P/B and PE Rel are all above their long-term averages.
For cyclicals, an elevated P/E ratio can sometimes be attributed to temporarily depressed forward “E” (earnings) due to the earnings cycle. However, we would argue that earnings are not weak or cyclically low. The elevated P/B ratio indicates that current market prices may exceed the underlying value of these banks. Above-average multiples could be justified if earnings growth is expected to be above average, but consensus has earnings going backwards in FY25 and low single growth in FY26.
Overall, it seems that now could be a good time to take some profit off the table.
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JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended JPMorgan Chase. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
It has been a great day to have ASX gold shares in your investment portfolio.
In morning trade, the gold sector is charging higher with solid gains being seen across the board.
Here’s a summary of how some ASX gold miners are performing today:
The Bellevue Gold Ltd (ASX: BGL) share price is up 3%.
The Evolution Mining Ltd(ASX: EVN) share price is up 1.5%.
The Newmont Corporation(ASX: NEM) share price is up 2.5%.
The Northern Star Resources Ltd (ASX: NST) share price is up 3%.
The Ramelius Resources Ltd (ASX: RMS) share price is up 2.5%.
The Regis Resources Ltd (ASX: RRL) share price is up 3%.
This has driven the S&P/ASX All Ords Gold index 2.6% higher this morning.
Why are ASX gold shares rising?
Investors have been bidding gold stocks higher today after the price of the gold price stormed to a record high overnight.
According to CNBC, the spot gold price settled up 1.6% at an all-time closing high of US$2,467.8 an ounce. And during the session, the precious metal hit a new intraday record high of US$2,474.5 an ounce.
This was driven by optimism over the outlook for interest rates after June’s softer US inflation data and some recently dovish comments from the US Federal Reserve Chair, Jerome Powell.
In fact, the share market is so confident that rates are going lower that they are now pricing in a 100% probability of a rate cut in September according to the CME FedWatch tool.
Is it too late to invest?
UBS analyst Joni Teves doesn’t believe that it is too late to invest. Teves commented:
Interest to ‘buy-the-dip’ remained prevalent among investors amid strong sentiment towards gold, which is likely why the market was quick to rally on soft U.S. data prints and dovish Fed expectations. With the market sitting just above the psychological $2400 level, we think risks are skewed to the upside. We think positioning remains lean and there’s space for investors to build gold exposure.
And as I mentioned here earlier this, Bell Potter believes that Capricorn Metals Ltd (ASX: CMM) shares are cheap at current levels.
It has a buy rating and $6.53 price target on the ASX gold share. It explained:
CMM’s management team has a track record of capital efficient project funding, development, commissioning and operation. In our view, FY25 and FY26 should benefit from higher revenue and EPS increases by 32% and 6% respectively. CMM is a sector leading gold producer with a strong balance sheet, a management team with an excellent track record of delivery and clear organic growth options to lift group production to 270kozpa.
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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 Scott Phillips.
I love finding ASX growth shares that have the capability to deliver impressive financial growth in their results, leading to pleasing share price growth.
It’s easy enough to identify highly-followed businesses with fairly (or very) expensive valuations that reflect their potential growth for the foreseeable future, such as Xero Ltd (ASX: XRO) and WiseTech Global Ltd (ASX: WTC).
Investors may be able to outperform the market if we can find stocks that represent growth at a reasonable price (GARP). In other words, the valuation is appealing for how much earnings growth they may be able to deliver in the next few years.
With that in mind, I believe these three ASX growth shares are very compelling to buy this month.
This company works in multiple countries, enabling increased product and economic circularity. One of its main offerings is collecting and refurbishing old electronics.
Close The Loop is a key partner of HP, which has a publicly stated goal of achieving 75% circularity for its products and packaging by 2030. HP ships approximately 40 million PCs annually, with an estimated 300 million HP PCs in the current market, in addition to its various printers and other products.
Close The Loop is the first provider to be appointed as ‘HP Platinum Global Certified Renew Partner’. There is significant potential here.
The ASX growth share hopes to work with other original equipment manufacturers (OEMs) in the future, which could unlock further growth for the business. A new IT refurbishment plant in Mexico will be running by October 2024.
The ASX growth share will also construct a second TonerPlas line after the government awarded $2.2 million in funding. Tonerplas is an additive that increases the longevity of asphalt, which is formulated from a mixture of post-consumer soft plastics and print toner.
According to Commsec, the company is expected to grow its earnings per share (EPS) by 23% between FY24 and FY26. It’s valued at under 7x FY24’s forecast earnings.
This ASX growth share is a multinational franchisee operator of KFC outlets in Australia, the Netherlands and Germany.
KFC is a strong brand, and Collins Foods is benefiting from the continuing growth of KFC outlet numbers. In the FY24 result, the ASX share increased revenue by 10.4%, and underlying net profit after tax (NPAT) increased by 15.6%.
During the HY24 period, the company added nine new builds in Australia, bringing the total to 279, and 11 restaurants in the Netherlands (eight acquired and three new builds).
If the Australian and European KFC networks keep growing, then its scale benefits and margins can continue improving. I liked that underlying profit rose faster than revenue, displaying operating leverage.
The forecast on Commsec suggests EPS could grow to 65.8 cents by FY26 (with 21% EPS growth in FY26). This puts it at just 13x FY26’s estimated profit.
This ASX growth share provides corporate travel management services. Although the business is facing an uncertain economic environment at the moment, management is confident in the longer term.
From FY25, Corporate Travel aims to grow its revenue by 10% per annum over the next 10 years, partly through winning $1 billion in new clients each year. Any acquisitions made would be in addition to this growth.
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Motley Fool contributor Tristan Harrison has positions in Close The Loop and Collins Foods. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Close The Loop, Corporate Travel Management, WiseTech Global, and Xero. The Motley Fool Australia has positions in and has recommended Corporate Travel Management, WiseTech Global, and Xero. The Motley Fool Australia has recommended Close The Loop and Collins Foods. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
The first ASX 200 retirement share that could be a top option for investors right now is CSL. It is a biotechnology giant with operations spanning plasma therapies, vaccines, and kidney disease treatments.
Morgans sees value in its shares at current levels and highlights that they are trading at a discount to long-term averages. The broker has an add rating and $315.35 price target on its shares. It commented:
While shares have struggled of late, we continue to view CSL as a key portfolio holding and sector pick, offering double-digit recovery in earnings growth as plasma collections increase, new products get approved and influenza vaccine uptake increases around ongoing concerns about respiratory viruses, with shares trading at 25x, a substantial discount (20%) to its long-term average.
And while Morgans’ price target isn’t far off now, it is worth noting that analysts at Macquarie are even more positive. They have an outperform rating and $330.00 price target on its shares. And with the broker tipping strong earnings growth over the coming years, it sees scope for its shares to rise to $500 within three years.
Another ASX 200 share that could be a good option for a retirement portfolio is insurance giant QBE Insurance.
Goldman Sachs thinks highly of the company and feels that trading conditions are very favourable right now. So much so, it recently put a buy rating and $20.50 price target on its shares. This implies potential upside of 20% for investors over the next 12 months.
It believes that the company is well-placed thanks to the commercial rate cycle. It said:
QBE is a global commercial insurer with three main geographical operations across Australia Pacific, International (encompassing Europe) and North America. We are Buy-rated on QBE because 1) QBE has the strongest exposure to the commercial rate cycle. 2) QBE’s achieved rate increases continue to be strong & ahead of loss cost inflation. 3) North America on a pathway to improved profitability. 4) Valuation not demanding. 5) Strong ROE.
Another positive is that the broker is expecting QBE to provide investors with good dividend yields in the near term. It is forecasting yields of 5.25% in FY 2024 and then 5.6% in FY 2025.
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Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL, Goldman Sachs Group, and Macquarie Group. The Motley Fool Australia has positions in and has recommended Macquarie Group. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Donald Trump has tried to distance himself from the Heritage Foundation's "Project 2025," a road map for ultra-conservative activists to enshrine their agenda during the next presidency.
Charlie Neibergall; Evan Vucci/AP Photo; Alyssa Powell/BI
Former President Donald Trump is trying to distance himself from the Heritage Foundation's Project 2025.
Project 2025 is a map for ultra-conservative activists to enshrine their agenda should Trump win.
While Trump's ties to the project are deeper than he admits, the playbook can go ahead without him.
Former President Donald Trump is attempting to distance himself from Project 2025, a political road map created by The Heritage Foundation that lays out steps Republican activists can take during the next presidency to enshrine extreme conservative policies into law and, critics argue, erode the US government's checks and balances.
But while Trump's ties to the project are deeper than he admits, some experts on political extremism and pro-democracy activistssay one real cause for concern is how the ideology behind the playbook can — and is — moving ahead with orwithout him.
The architects of the plan will continue to try to push forward its policy goals through the courts and Congress no matter who is elected — and even without Trump's complete endorsement, issues central to the playbook are already incorporated into his platform.
What does Project 2025 say?
Among the four pillars of Project 2025 is an over 900-page playbook for conservative activists to follow in the first 180 days of the next Republican administration to "bring quick relief to Americans suffering from the Left's devastating policies."
The plan includes a wish list of right-wing ideological outcomes, including banning pornography and imprisoning its creators, mass deportations, a ban on abortion medications, firings in the federal branch and cutting some federal agencies outright to "deconstruct the administrative state," and generally pursuing policies to promote "marriage, work, motherhood, fatherhood, and nuclear families."
It would also enable an inclined president to take total control of the Justice Department to weaponize it against their enemies, slash climate protections, and eliminate the Department of Education, which oversees the public school system, among other initiatives "to bend or break the bureaucracy to the presidential will."
Through its website, the project is gathering applications for jobs across each federal agency to pass along to the next Republican administration — from the Department of Agriculture to the Federal Reserve — that can be used as leverage to advance its agenda in the event of a second Trump presidency.
Many roles would be immediately ready to be filled with loyal followers, while other jobs would be cut entirely. Historian and authoritarianism expert Ruth Ben-Ghiat, who is critical of both Trump and Project 2025, argued in a recent Substack article that such cuts would result in "more influence for the 'inner sanctum' of sycophants and extremists who, as in regimes everywhere, are the real source of power."
How Project 2025 'runs on autopilot'
According to some critics, among the unique concerns about Project 2025 is the fact that, while the overall objectives would be easiest to achieve under a conservative administration like Trump's, some of the policy goals laid out in the plan don't require the direct involvement of the presidency at all.
Angelo Carusone, president of the nonprofit journalism watchdog Media Matters for America, told Business Insider that, though Project 2025 is focused on action at the federal level, it also lays out specific goals that can be advanced by local and state governments, or ruled upon by sympathetic judges.
The Supreme Court, for example, in a series of rulings this term, eroded the power of the executive branch by rolling back the power of administrative positions in the executive branch while strengthening the presidency itself. The rulings — made by a polarized, conservative-majority court — align with Project 2025 policy goals to deconstruct the administrative state and strengthen the "presidential will."
Ben-Ghiat noted in a recent Substack that "it's as though these jurists made their decisions with Project 2025 in one hand and an autocrat's playbook in the other."
"And so that's how it sort of runs on autopilot and just moves," Carusone told BI.
Some members of Congress have already embraced policies that makeup portions of Project 2025's agenda.
Rep. Thomas Massie of Kentucky has repeatedly introduced measures to abolish the Education Department. Rep. Marjorie Taylor Greene of Georgia in 2022 introduced a measure to make it a felony for physicians to provide gender-affirming care to children and prevent federal healthcare facilities from providing such care.
Ohio Sen. JD Vance — now Trump's pick for the vice presidential ticket — told Newsweek the project has "some good ideas." He has previously supported abortion bans without exception for rape and incest, and in June voted against a bill that would have cemented access to in vitro fertilization (IVF).
With even partial control of the legislative and judicial branches, Carusone noted, even if Trump doesn't win in November, the goals behind Project 2025 can still be pushed forward.
"So you don't need Trump's thumb on the scale, or even his direction, because it's going to move on its own," Carusone said.
Trump's close ties to Project 2025
The former president's proposed policies for his hypothetical second term, Agenda 47, include numerous areas of overlap with Project 2025. Among them are the defunding of the Education Department, instructing federal agencies to end programs that promote sex and gender transition at any age, and the niche promiseto reissue Executive Order 13957, which made federal employees easier to fire.
The independent outlet Popular Information first reported that 31 of the 38 people who wrote and edited Project 2025 had been either appointed or nominated to positions in Trump's first administration or his transition team.
A CNN review found over 140 Trump administration members had contributed to Project 2025. The Washington Post described The Heritage Foundation as a "revolving door for Trump officials."
After The Heritage Foundation created its "Mandate for Leadership" ahead of Trump's firstterm, the conservative group proudly announced that Trump applied 64% of its policy recommendations in the first two years of his presidency, CBS News reported. The recommendations included leaving the Paris Climate Accords, ramping up military spending, and increasing offshore drilling.
In February, Politico reported that Russell Vought, a Project 2025 consultant and president of the conservative think tank The Center for Renewing America, included "Christian nationalism" as among the top priorities for a second Trump term.
Vought, the outlet reported, was the director of the Office of Management and Budget during Trump's first term and is a likely pick for his Chief of Staff if he's elected again.
What Trump said about Project 2025 — and its leaders about him
"I have no idea who is behind it," Trump wrote July 5 on Truth Social. "I disagree with some of the things they're saying and some of the things they're saying are absolutely ridiculous and abysmal. Anything they do, I wish them luck, but I have nothing to do with them."
Danielle Alvarez, a Trump spokesperson, told Business Insider that Agenda 47 and President Trump's RNC Platform are the only policies endorsed by President Trump for a second term, adding that "Team Biden and the DNC are LYING and fear-mongering because they have NOTHING else to offer the American people."
Though he denies knowing anything about the project, the playbook mentions Trump's name more than 300 times.
Kevin Roberts, the president of The Heritage Foundation, noted in a July 10 episode of "The Vince Coglianese Show" that there's a "tremendous" amount of overlap between Trump's Agenda 47 and Project 2025 — and the standard Republican platform more generally.
Roberts said there were "no hard feelings from any of us at Project 2025" about Trump's statement denouncing their agenda, saying "he's making a political tactical decision there" in response to a swath of bad press about the playbook's extreme policies.
"I think what you're going to see is the beginning of a golden era of conservative reform," Roberts added. "Not just because of President Trump, although he deserves most of the credit, but because the rest of the conservative movement has realized this is the moment if we have the leader and the plan that we're able to begin to undo all of the wreckage of the radical left of the last several decades."
The ASX stock Step One Clothing Ltd (ASX: STP) has all the factors needed to continue beating the market, in my eyes. I think the ASX dividend share could be an excellent investment opportunity.
Step One describes itself as a “leading direct-to-consumer online retailer for innerwear.” It offers an “exclusive range of high-quality, organically grown and certified, sustainable, and ethically manufactured innerwear that suits a broad range of body types.”
The Step One Clothing stock price has increased more than 40% in the year to date, as shown in the chart below. That compares to a rise of 5% for the S&P/ASX 200 Index (ASX: XJO) in 2024.
However, the business has dropped around 25% since 12 April 2024, making it significantly cheaper and giving investors an opportunity to invest at a much better valuation. Let’s explore.
Strong revenue growth
One of the main things that can drive a business significantly higher is the speed of revenue growth.
If its revenue can rise by more than 10% per year over the long term, it gives the earnings and share price a good chance of growing at a compound annual growth rate (CAGR) of at least 10% per year, too.
Step One Clothing reported in the FY24 first-half result that its total revenue increased by 25.5% to $45.1 million. It also added 182,000 new customers in the HY24 period.
One compelling thing about the business is that it’s delivering rapid growth in overseas markets.
Australia only saw 8.9% revenue growth to $26.2 million, but the United Kingdom experienced 38% revenue growth to $14.6 million, while United States revenue jumped 256% to $4.1 million.
There’s no guarantee it will continue ramping up sales in the UK and US in the short term, but the ASX dividend stock’s progress is very promising. It can expand into other countries like Canada in the future.
Improving profit margins
For a business to become successful, I believe it needs to grow more than just revenue. It should also grow profit.
It’s particularly beneficial for shareholders if profit margins can rise. Investors usually value businesses based on the profit generated, so if margins rise, then profit can soar faster than revenue.
While total HY24 revenue rose 25.5%, the net profit after tax (NPAT) increased by 34.7%, thanks to the NPAT margin improving by approximately 5.1 percentage points to 27%.
In my eyes, the company has a very promising future if margins keep increasing.
Excellent dividends
The company has been very generous to shareholders in terms of dividend payouts. In recent results, the ASX stock has provided shareholders with payments, which equate to a dividend payout ratio of 100%.
Step One Clothing said of the HY24 result:
The company’s funding level following this dividend distribution is deemed sufficient to support future expansion and ensure ongoing financial stability. The company is targeting a full year payout ratio of 100% of NPAT.
The dividend is fully franked to the maximum extent possible, demonstrating the board’s commitment to aligning the interests of its investors with the company’s financial success.
According to the forecasts on Commsec, at the current Step One share price, it could pay a grossed-up dividend yield of 6.4% in FY25 and 6.9% in FY26.
Should you invest $1,000 in Step One Clothing right now?
Before you buy Step One Clothing shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Step One Clothing wasn’t one of them.
The online investing service heâs 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 may be better buys…
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 no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
