Exchange-traded funds (ETFs) can be very effective ways of investing. Some ETFs are based on an index like the S&P/ASX 200 Index (ASX: XJO). But others are focused on specific sectors.

There are some leading ETFs to think about in April. Here are two top ETF contenders:

Betashares Global Cybersecurity ETF (ASX: HACK)

As the name says, this ETF is about the global cybersecurity sector.

Cybercrime continues to rise, which could drive demand for cybersecurity higher over the years.

As reported by the Australian government, here in Australia cybercrime is increasing:

The pandemic has significantly increased Australian dependence on the internet – to work remotely, to access services and information, and to communicate and continue our daily lives. This dependence has increased the attack surface and generated more opportunities for malicious cyber actors to exploit vulnerable targets in Australia.

Over the 2020–21 financial year, the ACSC received over 67,500 cybercrime reports, an increase of nearly 13% from the previous financial year… A higher proportion of cyber security incidents this financial year was categorised by the ACSC as ‘substantial’ in impact. This change is due in part to an increased reporting of attacks by cybercriminals on larger organisations.

There are a total of 41 businesses in this portfolio that are involved in some way to protect against cybercrime.

Examples of portfolio businesses include Crowdstrike, Cloudflare, Palo Alto Networks, Zscaler, Cisco Systems, Splunk, Akamai Technologies, Booz Allen Hamilton, Mandiant and Infosys.

It has an annual management fee of 0.67%.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This ETF has holdings that are chosen by analysts at Morningstar.

VanEck, the ETF provider, notes that the investment strategy has a focus on quality US companies that Morningstar believes possess sustainable competitive advantages or ‘wide economic moats’.

Those competitive advantages are expected to be maintained for at least the next decade or two.

But target companies must be trading at attractive prices relative to Morningstar’s estimate of fair value to be added to the portfolio. So, over time, the portfolio holdings can significantly change if a company loses its competitive advantage or if it doesn’t look like good value any more.

The latest portfolio update dated 24 March 2022 showed that these are the top 10 largest holdings: Compass Minerals, Mercado Libre, Amazon, Western Union, Emerson Electric, Intel, Medtronic, Merck & co, Zimmer Biomet and Wells Fargo.

Despite getting access to Morningstar’s “rigorous equity research process”, this ETF comes with an annual management cost of 0.49%.

The post Are these 2 top ETFs buys in April? appeared first on The Motley Fool Australia.

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• 3 top ASX ETFs for growth investors
• Potential opportunities: 2 compelling ASX shares
• Are these 2 top ASX growth shares buys right now?
• Have you seen these exciting ETFs that are listed on the ASX?
• 3 highly rated ETFs for ASX investors to check out this week

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. owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia owns and has recommended BETA CYBER ETF UNITS. The Motley Fool Australia has recommended VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It’s nearly April 2022. Could some of the leading ASX tech shares be contenders to consider next month?

Technology businesses have the capability of achieving good profit margins and pleasing growth.

These two ASX tech shares may be ones to consider in April:

Adore Beauty Group Ltd (ASX: ABY)

Adore Beauty is the leading online retailer of beauty products in Australia. It sells thousands of products from hundreds of brands. It’s scaling quickly in the $1.3 billion online beauty and personal care category, which is itself growing quickly.

In its FY22 half-year result, the company reported that revenue grew by 18% to $113.1 million and the gross profit margin increased by 0.6 percentage points to 33.1%.

The company is re-investing in strategic initiatives to drive sustainable, long-term growth. The success of this investing is coming through in the growth of customers. Active customers rose 13% year on year to 876,000, while returning customers surged 56%.

One focus is its content engagement strategy and loyalty, supporting engagement and retention. It’s investing in its “owned” channels with media and content that support customers’ discovery and fulfilment, such as podcasts. This reduces the reliance on competitive paid channels, which are showing “price volatility”.

However, the Adore Beauty share price has fallen almost 50% in 2022.

Morgan Stanley currently rates the ASX tech share as a buy, with a price target of $4.

VanEck Video Gaming and Esports ETF (ASX: ESPO)

This is an exchange-traded fund (ETF) that gives investors exposure to the global video gaming and e-sports industry.

It is globally-focused with several countries having a weighting of over 1%: the US (42.6%), Japan (22.7%), China (18%), Singapore (4%), South Korea (3.9%), France (2.9%), Sweden (2.2%), Taiwan (2.1%), and Poland (1.5%).

However, there are gaming audiences and billions of players worldwide, not just where the businesses are listed. There are now reportedly more than 2.7 billion active gamers worldwide. E-sports is now achieving huge audiences, comparable to the size of the Olympics and FIFA World Cup.

Readers may have heard of some of the game makers in the ASX tech share’s portfolio: Tencent, Nintendo, Activision Blizzard, Electronic Arts, Bandai Namco, Zynga, Take-Two Interactive, and Ubisoft. There are a total of 26 positions in the portfolio.

Between 2016 and 2023, global games revenue is expected to double to around US$200 billion. Since 2015, video gaming has achieved average annual revenue growth of 12%.

By 2023, the competitive video gaming audience is expected to reach 646 million people globally, driven in part by the rising population of digital natives. VanEck said that with an active, engaged and relatively young demographic, the stage is set for sustainable long-term growth for the global video gaming sector.

The ETF has an annual management fee of 0.55%.

The post Are these 2 ASX tech shares great buys in April 2022? appeared first on The Motley Fool Australia.

More reading

• 3 top ASX ETFs for growth investors
• Analysts name 2 excellent ASX growth shares to buy and hold
• 2 retailer ASX shares ready to make you rich: experts
• 2 ASX growth shares experts think have exciting futures
• 135% upside? Adore Beauty (ASX:ABY) insiders pounce on beaten-up shares

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 recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and VanEck Vectors ETF Trust – VanEck Vectors Video Gaming and eSports ETF. 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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A message from our CIO, Scott Phillips: “G’day Fools. If you’re like us, you’re dismayed by the events taking place in Ukraine. It is an unnecessary humanitarian tragedy. Times like these remind us that money is important, but other things are far more valuable. And yet the financial markets remain open, shares are trading, and our readers and members are looking to us for guidance. So we’ll do our best to continue to serve you, while also hoping for a swift and peaceful end to the war in Ukraine.”

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The Woodside Petroleum Limited (ASX: WPL) share price has risen significantly in 2022. Since the start of the year, Woodside shares have increased by almost 50%.

But after such a steep rise, is the petroleum giant still an opportunity, or has it run too hard?

Oil price jump

The oil price has risen substantially amid the Russian invasion of Ukraine. Russia is, or was, one of the largest exporters of oil before the war.

However, Russia has been heavily sanctioned because of the attack on its neighbour.

Those sanctions may not be lifted any time soon, with several regions of Ukraine still being a warzone.

The United Kingdom foreign secretary Liz Truss recently told British media that Russian sanctions would only be removed once Russia had agreed to a complete ceasefire and fully withdrawn from Ukraine. It would also need to not commit any further aggression, or those sanctions would return.

The oil price remains high, and drivers around the world are paying a much higher price when they refill their vehicle with fuel.

Is the Woodside share price a buy?

The broker Citi currently rates Woodside as ‘neutral’, with a price target of $29.35. That implies a reduction of over 10% over the next year, if the broker ends up being right.

Citi thinks that the average Brent oil price will be around US$90 per barrel in 2022. The broker is expecting a strong year of profit in FY22 for Woodside.

At the current Woodside share price, Citi values it at around 9x FY22’s estimated earnings.

However, the broker UBS rates the petroleum business as a buy, though the price target is only $29. So, that also implies a potential downside over the next 12 months. UBS thinks that the Woodside share price is taking into account the high oil price.

FY21 result

The company recently reported its result for the 12 months to December 2021. The numbers reflected a significant recovery from the COVID-impacted year of 2020.

Net profit after tax (NPAT) rose by 149% to $1.98 billion, while underlying NPAT soared 262% to $1.62 billion.

Annual sales volume was 111.1 million barrels of oil equivalent, with a realised price of $60.30 per barrel. That compared to a unit cost production of $5.30 per barrel.

The full-year dividend was $1.35 per share, up 255%.

Woodside share price snapshot

At the current Woodside share price, the company has a market capitalisation of $33 billion according to the ASX.

The post Is the Woodside Petroleum (ASX:WPL) share price a buy today? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
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• Woodside (ASX:WPL) share price climbs as oil extends rally. What’s next?
• 5 things to watch on the ASX 200 on Thursday
• The Woodside (ASX:WPL) dividend is being paid today. Here’s what you need to know

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 Bruce Jackson.

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Could the Coles Group Ltd (ASX: COL) share price be an opportunity for investment income?

Coles is one of the biggest businesses in the S&P/ASX 200 Index (ASX: XJO) with a market capitalisation of around $24 billion according to the ASX.

The ASX share runs a few different businesses. It has 800 full-service supermarkets around Australia. As well, Coles Express is one of Australia’s leading fuel and convenience retailers, with 700 sites across Australia. Coles’ liquor segment has 900 stores across different brands including Liquorland, Vintage Cellars, First Choice Liquor, and First Choice Liquor Market.

In the recent FY22 half-year result, Coles’ board decided to pay an interim dividend per share of 33 cents. This was the same as the dividend the company paid in the prior corresponding period.

Is the Coles share price a buy?

The brokers at Macquarie think that the supermarket business is a buy, with a price target of $19.70. That implies a potential upside of around 10% over the next year.

Macquarie likes Coles in the consumer staples space. It thinks Coles is going to pay a grossed-up dividend yield of 4.9% in FY22 and 5.3% in FY23.

However, there are some complications and issues for Coles to work through including inflation from food suppliers, increased operational expenses, and difficulties with the supply chain.

How has the ASX share performed recently?

The FY22 half-year result showed that its financial numbers were almost flat.

Half-year sales revenue grew by 1% to $20.6 billion, while net profit after tax (NPAT) dropped 2% to $549 million. Profit changes can be a key influence on the Coles share price.

However, over two years, supermarket sales had grown by 8.6%, liquor sales went up 18.2%, and Coles Express sales had gone up 1.1%.

Coles said that its earnings had been impacted by higher COVID-19 disruption costs, related travel restrictions on Coles Express earnings, and transformation project costs.

However, ‘smarter selling’ benefits of more than $100 million were achieved in the first half of FY22. The company said that it’s on track to deliver over $200 million of benefits in FY22.

The company is working on several ways to improve efficiencies and profitability. For example, it has introduced measures to reduce loss in-store through the use of artificial intelligence with dynamic markdowns.

E-commerce efficiency is benefiting through the introduction of an automated fraud detection tool to reduce loss and a continued focus on reducing costs to serve through improved picking efficiencies and delivery van optimisation.

The supermarket company’s partnership with grocery technology player Ocado is expected to help with automated fulfilment, as well as last-mile solutions.

Coles share price valuation

According to Macquarie, the Coles share price is valued at 23x FY22’s estimated earnings and 22x FY23’s estimated earnings.

The post Is the Coles (ASX:COL) share price a top buy for dividends? appeared first on The Motley Fool Australia.

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• 2 ASX dividend shares to buy for this year and beyond: experts

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 COLESGROUP DEF SET. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Harvey Norman Holdings Limited (ASX: HVN) share price has performed well on the S&P/ASX 200 Index (ASX: XJO).

This month, the multi-national retailer’s shares accelerated to a 6-month high of $5.62 following the company’s half year results.

At Friday’s market close, Harvey Norman shares finished at $5.58, up 2.20%.

Why are investors paying attention to Harvey Norman shares?

It appears investors are buying up Harvey Norman shares after a positive broker note, as well as trading ex-dividend this week.

Investors need to buy Harvey Norman shares before market close on Wednesday to be eligible for the interim dividend. The ex-dividend date is on Thursday 31 March.

It’s worth noting though that historically when a company reaches its ex-dividend day, its shares tend to fall in proportion to the dividend paid out. This is because investors tend to sell off the company’s shares after securing the dividend.

In addition, the team at Goldman Sachs believes Harvey Norman shares are trading at attractive levels.

Its analysts retained a 12-month price target of $6 per share, which represents an upside of 6.7%

When can Harvey Norman shareholders expect payment?

For those who are eligible for the Harvey Norman dividend, shareholders will receive a payment of 20 cents per share on 2 May. This is the same amount the company paid to shareholders in the previous corresponding period (H1 FY21).

The $249.20 million interim dividend is fully franked which means shareholders will receive tax credits from this.

Harvey Norman share price snapshot

Since the beginning of 2022, the Harvey Norman share price has shot up around 13% in value. In comparison, the benchmark index is down 0.5% over the same timeframe.

Harvey Norman commands a market capitalisation of roughly $6.95 billion and has a trailing dividend yield of 6.27%.

The post Hoping to bag the Harvey Norman (ASX:HVN) dividend? Here’s what you need to do this week appeared first on The Motley Fool Australia.

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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Harvey Norman Holdings Ltd. The Motley Fool Australia owns and has recommended Harvey Norman Holdings 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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Some of the ASX’s leading growth shares are trading at attractive value, according to Australia’s top brokers.

Businesses that are growing their revenue at a fast pace over the long term have the potential to become much bigger over many years, thanks to the power of compounding.

These two ASX shares are rated as buys by brokers.

EML Payments Ltd (ASX: EML)

EML describes itself as an innovative payment solutions platform. Whenever money is in motion, its technology can power that payment process so that money can be moved quickly, conveniently and securely.

It’s currently rated as a buy by the broker UBS with a price target of $4.55. That implies an upside of more than 50% over the next year. UBS likes the longer-term growth potential of the recent announcement with Up Spain.

EML Payments has entered the employee benefits market in Europe, covering meal vouchers and employee benefit solutions. The initial move is a multi-year agreement with Up Spain. Europe represents 35% of the employee benefits market worth over $88 billion, of which Up Spain is one of the three biggest providers in Spain. This program is due to go live in FY23.

The ASX growth share will work to have this contract act as the basis for potential future growth in this segment within Spain and, in time, countries outside of Spain. Up Spain is a subsidiary of Up Group, which offers employee benefits and incentive programs across 28 countries including France, Germany, Italy and Poland.

In the first half of FY22, EML reported revenue growth of 20% to $114.4 million. FY22 total revenue is expected to be between $230 million to $250 million.

Temple & Webster Group Ltd (ASX: TPW)

Temple & Webster is a leading online retailer of homewares and furniture. It wants to become the biggest player in the sector, online or offline.

The company is also looking to expand in the ‘home improvement’ sector. That includes products like tools and equipment, garden and landscaping, paint and supplies, window furnishings, flooring, plumbing fixtures and so on. It’s a $16 billion market opportunity in that less than 5% of the home improvement sector has moved online.

The Temple & Webster share price has dropped 37% since the start of 2022. However, its revenue continues to grow quickly. FY22 half-year revenue grew 46%. In the second half of FY22 to 6 February 2022, revenue was up another 26%.

The ASX growth share is re-investing heavily for growth in marketing, technology development, product range and the overall customer experience to keep growing the business.

Increased scale will help with profitability, including cost advantages in product sourcing, logistics and marketing.

Over the long term, the company is expecting more of a structural shift to online shopping for its core furniture and homewares market.

Further, the company is going to invest in its ‘next horizon’ growth businesses, such as international expansion.

The post 2 high-growth ASX shares to buy today: brokers appeared first on The Motley Fool Australia.

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• Why is the EML Payments (ASX:EML) share price being shorted so much lately?
• 7 small-cap ASX shares that have been oversold: Wilsons
• These are the 10 most shorted ASX shares
• Has the bottom been and gone for EML (ASX:EML) shares?

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. owns and has recommended EML Payments and Temple & Webster Group Ltd. The Motley Fool Australia owns and has recommended EML Payments. The Motley Fool Australia has recommended Temple & Webster Group 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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The PointsBet Holdings Ltd (ASX: PBH) share price has come under significant pressure this year.

Since the start of 2022, the sports betting company’s shares have lost 48% of their value.

What’s going on?

Investors have been selling down the PointsBet share price this year amid concerns over rising competition, marketing costs, and cash burn across the sports betting industry.

However, the team at Goldman Sachs appear to believe this could be a buying opportunity for investors.

Goldman has just held its 2022 Digital Evolution of Global Gaming Virtual Conference. This saw the broker host a panel spanning listed sports betting companies, private players, and industry experts.

Goldman notes: “Near-term, panelists acknowledged the major negative shift in investor sentiment over the past year, but most were equally bullish on the growth ahead and pointed to rationalizing promotions.”

The broker also highlights three key takeaways from the conference which could be positives for the PointsBet share price. It explained:

“1) positive momentum in legalization in the US and internationally with potential for California to launch in 2023 and most states proposing lower tax/licensing requirements than the current average; 2) confidence from multiple operators surrounding the upcoming Ontario launch, which spans both OSB and iGaming for a population equivalent to roughly the fifth largest US state; and 3) improving visitation at brick and mortar locations through March as highlighted by PENN, offering read-across to other casino names and broader leisure trends even in the face of geopolitical conflict and inflation.”

Is the weakness in the PointsBet share price a buying opportunity?

According to the note, the broker believes the PointsBet share price offers material upside potential for investors. Its analysts have a buy rating and $6.74 price target on the company’s shares.

Based on the current PointsBet share price, this suggests the company’s shares could rise 80% over the next 12 months.

Goldman said: “We reiterate our Buy ratings on ENT, PENN, PBH, and GENI where we see compelling valuation after the recent pullback with significant exposure to rapid growth and a rationalizing promotional environment.”

The post ‘Compelling valuation’: Broker tips PointsBet (ASX:PBH) share price to rise 80% appeared first on The Motley Fool Australia.

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• Beaten-up: Are these 2 top ASX growth shares turnaround buys?
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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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Endeavour Group Ltd (ASX: EDV) shares will be one to watch this morning.

This follows the release of a broker note out of Goldman Sachs which spoke positively about the alcohol retailer.

What did Goldman say about Endeavour shares?

Goldman Sachs has been looking over food & beverage (F&B) and home retailers and Endeavour came out with a glowing report card.

According to the note, the broker has initiated coverage on the alcohol retailer with a conviction buy rating and $8.00 price target.

Based on the current Endeavour share price of $7.12, this implies potential upside of 12.5% over the next 12 months.

In addition, the broker is forecasting fully franked dividends per share of 20.6 cents in FY 2022. If we add this 2.9% dividend yield into the equation, this brings the potential total return to almost 15.5%.

What did the broker say?

Goldman has named three key reasons for its positive view on Endeavour shares.

The first is its significant advantage in scaled consumer assets and loyalty which the broker believes gives the company an omni-channel strategy edge.

It commented: “Given it is a pureplay alcohol retailer, we find it extraordinary that it has the breadth and depth of consumer assets that can rival a top staples grocery retailer. To quote some numbers, Dan’s, ~50% of EDV.AX’s sales and with only 251 stores nationally, has 6.3m members as of 1H22 and ~3.9m are active. This compares to Coles’s Flybuys, Australia’s second largest grocery retailer, with 6.3m active households in FY21.”

Another reason to be positive is its leadership position in the market.

Goldman explained: “EDV’s Retail division has ~38.5% market share of Australia’s Liquor retail market, 1.75x next player Metcash at 22%. Given the complexity of the portfolio with high number of SKU and specialist skills required for procurement, it will be difficult for incoming competitors to build scaled competition quickly. In addition, the company has two other avenues of sizeable alternative revenue growth that are margin-accretive to the retail business – Pinnacle Brands and Hotels.”

Finally, the third reason for Goldman’s positive rating on the Endeavour share price is its limited exposure to global supply chain disruption and cost inflation.

The broker said: “As we look at global commodity inflation, we expect alcohol production to be largely protected. EDV does have approximately ~A$250m exposure to Euro as part of Pinnacle portfolio, but this is ~2/3 hedged from a currency risk perspective, and we expect products to be substitutable should there be global supply disruptions.”

The post Top broker puts conviction buy rating on Endeavour (ASX:EDV) shares appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
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• 2 compelling blue chip ASX shares to buy: top fund manager
• Up 10% in a month, why the Endeavour (ASX:EDV) share price has still ‘got legs’: fundie

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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It’s easy to be a bull in uncertain times.

But if you want to be realistic, you seek out a professional investor who is honest enough to acknowledge that we’re navigating through turbulence.

Then ask her or him which ASX shares they have recently added to their portfolio.

FNArena founder Rudi Filapek-Vandyck is one such expert.

“This is not the time to be overly bullish or overly confident about what lies ahead,” he told Switzer TV Investing.

“The price action in the share market doesn’t accurately reflect the risks and the threats that are ahead of us.”

Filapek-Vandyck revealed 3 ASX shares he’s personally bought to take him through an anxious year:

‘Undeservedly cheap’

Jobs classifieds site Seek Limited (ASX: SEK) had lost a quarter of its value from last November to this month. It has recovered somewhat in the last few days to be 11.27% down for 2022.

Filapek-Vandyck owns the stock and reckons the market has overreacted.

“Almost every analyst that covers the company thinks it’s undeservedly cheap here,” he said.

“So there’s a lot of conviction out there that Seek will do well and has not been treated well.”

If the business goes well, some analysts think it could hit $40 in the future.

Patience is key though, according to Filapek-Vandyck.

“That potential may not necessarily come tomorrow because at this point in time, the market is very much besotted with energy stocks and mining stocks,” he said.

“At some point, the attention will shift to the industrials.”

Filapek-Vandyck speculated that rotation might happen in August when the next set of financial results is released.

“They did it in February, and the result was much better than anyone expected. But the problem in February was there was absolutely no attention for stocks like Seek.”

‘Sturdy and reliable’ market leader

Another stock Filapek-Vandyck nominated as “solid, promising, sturdy and reliable” as Seek was IDP Education Ltd (ASX: IEL).

“Crisis, like with COVID-19 and lockdowns, makes the strong companies stronger,” he said.

“And this is a market leader in global English language tests.”

These tests, called International English Language Testing System (IELTS), is a standardised test that students need to pass if they want to gain admission to a foreign university.

Overseas student placement is big business, and will only accelerate coming out of the pandemic.

“This company is gradually transforming into the monopolist for that type of test globally.”

IDP shares have risen 568% over the past 5 years and 25% over the last 12 months.

Former darling will ‘find its mojo again’

CSL Limited (ASX: CSL) rewarded investors handsomely for decades until the coronavirus pandemic hit.

The stock price, unfortunately, is still down more than 21% from its pre-COVID high.

“I recently bought some extra shares in CSL,” said Filapek-Vandyck.

“The business model was disrupted because of COVID… If I look forward to the next 2 to 3 years, I see an environment where CSL will again come to the fore.”

Beyond the current commodities rally CSL will “find its mojo again”, he added.

“If we’re getting an environment where earnings forecasts are falling and companies are issuing profit warnings,… you want to go to the reliability and the safety of CSL.”

The post 3 ASX shares I own myself that will rise again soon: expert appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• Top brokers name 3 ASX shares to buy next week
• 2 blue chip ASX 200 shares analysts are urging investors to buy
• Do CSL shares deserve a spot in the ASX ‘hall of fame’?
• Why has Macquarie downgraded these 2 ASX shares?

Motley Fool contributor Tony Yoo owns CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. and Idp Education Pty Ltd. 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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There are many divergent views about what the share market might do in the next 12 months.

Some experts are expecting a global recession, while others are convinced the bull market will resume after a short pause.

So really there is only one certainty: uncertainty.

In that case, the team at Wilsons reckons avoiding loss-making companies is the way to go.

“The prospect of higher interest rates makes both debt and equity funding more expensive. Critical, as loss-making businesses typically require external funding,” its memo to clients read.

“The double whammy for loss-making companies is the impact of higher bond yields, which lowers the valuation of long-dated growth cash flows.”

Considering this, Wilsons analysts dug up the most profitable businesses out of their Wilsons Conviction Insights list.

The set represents their best small-cap ideas on a 12-month view to consider at the moment:

Profitable small-caps that are looking good

Not only are these 4 Wilsons picks profitable, but 3 of them also give out dividends:

• Collins Foods Ltd (ASX: CKF): 3% 12-month forward dividend yield
• Ridley Corporation Ltd (ASX: RIC): 4% 12-month forward dividend yield
• Readytech Holdings Ltd (ASX: RDY)
• City Chic Collective Ltd (ASX: CCX): 1% 12-month forward dividend yield

Of that group, Readytech and City Chic held the most buy conviction for Wilsons analysts.

Technology services provider has “strong cash flow” and an “undemanding valuation”, the memo stated.

“Easy 2H earnings guidance to achieve top-end of revenue guidance.”

The Readyteach share price has plunged 18.4% for the year so far.

City Chic stocks have had an even worse time, falling more than 38% in 2022 and almost 50% since November.

Wilsons analysts are keeping the faith with the fashion retailer though.

“Inventory and, therefore, balance sheet risk has increased. We believe the inventory will clear over an expected strong summer in the northern hemisphere.”

The Wilsons team admitted Collins Foods has had its work cut out in recent times.

“KFC franchise owner has been impacted by macro-related news [from] QLD/NSW floods, EU exposure with Russia/Ukraine, and chicken shortages have weighed on the share price,” read the memo. 

“Key peer Restaurant Brands New Zealand Limited (ASX: RBD)’s poor margin performance has also weighed on the stock. We think this news is captured in the 40% fall in the share price.”

The Collins Foods share price has shed almost 25% for the year so far.

The post 4 small-cap ASX shares with the best 12-month outlook: experts appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Collins Foods Limited and Readytech Holdings Ltd. The Motley Fool Australia has recommended Collins Foods Limited and Readytech Holdings 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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