While the S&P/ASX 200 Index (ASX: XJO) has struggled to hold ground, the South32 Ltd (ASX: S32) share price has been surging ahead.

The mining outfit shares have zoomed by more than 25% since this time last month. A stark contrast when compared to the benchmark index which has shed around 1% over the same timeframe.

Let’s take a look at what is driving these gains for South32 shares.

South32 benefits from rising commodity prices

Investors have been buying up South32 shares in 2022 as the aluminium price has charged higher in recent times.

The geopolitical tensions between Ukraine and Russia have led to a general lift across the board in commodities prices.

When looking in particular at South32’s main export, aluminium is currently fetching for US$3.85 per kilogram. That represents a gain of 23.38% in the past month, and just 8% off its all-time high of US$4.06 achieved yesterday.

In addition, the company reported a strong performance across key metrics in its FY22 half-year results.

Finishing the period with a net cash of US$975 million, the board opted to considerably bump up its dividend to shareholders.

A fully-franked interim dividend of US 8.7 cents per share was declared, reflecting a massive 621% increase from H1 FY21.

Management noted that the latest dividend equates to a payout ratio of 40% of cash earnings, in line with its dividend policy.

With the South32 share price set to trade ex-dividend on Thursday 10 March, investors might want to jump in.

South32 will pay the interim dividend to eligible shareholders approximately 4 weeks away on 7 April.

It is also worth noting that there is a capital management program that has been active since FY18. This returns excess capital efficiently through an on-market share buyback.

The board further expanded its capital management program by US$110 million to US$2.1 billion, leaving US$302 million to be returned by 2 September 2022.

South32 share price snapshot

It has been a strong 12 months for South32 shares, climbing by more than 80%. In 2022 alone, its share price is up almost by 30%, reflecting positive investor sentiment in the company.

Based on today’s price, South32 presides a market capitalisation of roughly $24.07 billion and has approximately 4.65 billion on issue.

The post Here’s why the South32 (ASX:S32) share price has soared 25% in a month appeared first on The Motley Fool Australia.

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• Why Core Lithium, MVP, Rio Tinto, and South32 shares are rising today
• ASX 200 (ASX:XJO) midday update: Rio Tinto, South32 storm higher, PointsBet sinks

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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At lunch on Tuesday, the S&P/ASX 200 Index (ASX: XJO) is having a subdued day. The benchmark index is down 0.1% to 7,033.5 points.

Here’s what is happening on the ASX 200 today:

St Barbara shares rise on takeover speculation

The St Barbara Ltd (ASX: SBM) share price is storming higher today after being tipped as a takeover target. According to the AFR, the beaten down gold miner’s Gwalia underground mine and processing plant is believed to be of interest to nearby gold miners. These include Northern Star Resources Ltd (ASX: NST) and Ramelius Resources Limited (ASX: RMS).

CSL share price higher on TGA news

The CSL Limited (ASX: CSL) share price is pushing higher today. This appears to have been driven by reports that the TGA has approved a super flu jab by its Seqirus business for children as young as two years old. The Flucelvax Quad vaccine was the first cell-based seasonal influenza vaccine offered in Australia when it was first approved in 2021.

Magellan shares rated as a sell

The Magellan Financial Group Ltd (ASX: MFG) share price could still have room to sink further according to analysts at UBS. This morning the broker retained its sell rating and cut its price target down to $13.50. It has concerns over long term structural fund outflows in the retail channel and emerging risks in infrastructure outflows.

Best and worst ASX 200 performers

The best performer on the ASX 200 on Tuesday has been the St Barbara share price with a 7% gain. This follows speculation that it could be a takeover target. The worst performer on the index has been the BlueScope Steel Limited (ASX: BSL) share price with a 6% decline on no news.

The post ASX 200 (ASX:XJO) midday update: CSL and St Barbara charge higher appeared first on The Motley Fool Australia.

More reading

• Here’s why the St Barbara (ASX:SBM) share price is leaping 8% on Tuesday
• 5 things to watch on the ASX 200 on Tuesday
• Here are the top 10 ASX shares today
• WAM boss urges cashed-up ASX 200 companies to buy, invest or pay dividends
• Why is the Fortescue (ASX:FMG) share price having such a stellar start to the week?

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 CSL Ltd. 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 Tennant Minerals Ltd (ASX: TMS) share price is heading for the sky.

The ASX resource minnow closed last Thursday at 4.9 cents before entering a trading halt.

The explorer exited that trading halt today following the announcement of a “spectacular copper intersection” at its Bluebird Prospect in the Northern Territory. The news comes after the price of copper hit a multi-year high last week.

Investors reacted to the news by driving the Tennant Minerals share price to 6.8 cents, up 38.78% for the day at the time of writing. However, it climbed as high as 8.3 cents in early trade, a gain of 69% on its previous close. This comes even as the All Ordinaries Index (ASX: XAO) dips into the red.

What exploration results were announced?

In this morning’s release, the resource explorer reported the results from the first three of five diamond drill holes in a 1,048-metre program within its 100% owned Barkly Project at Bluebird.

The Tennant Minerals share price looks to be getting a big boost from the report that all five of those holes intersected “intense hematite alteration with visible copper mineralisation including malachite and/or chalcocite (copper sulphide), as well as native copper in two deeper step-out holes”.

Tennant said the results from one hole (BBDD009) confirm the entire 50-metre mineralised zone holds “significant” copper and gold mineralisation. It highlighted the following copper-gold, and silver intersections from that drill hole:

— 50.0 metres at 2.70% copper and 0.52 grams per tonne of gold (0.4% Cu cut-off) from 158 metres (downhole)

• including 24.0m @ 5.01% Cu and 1.01 g/t Au (0.8% Cu cut-off) from 159m
• including 5.0m @ 7.28% Cu and 1.29 g/t Au, 291 g/t Ag (5.0% Cu cut-off) from 165m
• including 4.3m @ 14.7% Cu and 3.10 g/t Au (5.0% Cu cut-off) from 176.6m

Commenting on the drill results sending the Tennant Minerals share price rocketing today, chairman Matthew Driscoll said:

BBDD0009 is the first hole drilled to test the Bluebird copper-gold zone below previous drilling, and to return a 50-metre intersection of high-grade copper with gold, that approximates true-width, is a spectacular result.

Adding to the excitement is that like BBDD0009, the remaining two holes of the current diamond drilling program also intersected thick widths of visible copper mineralisation, including native copper.

The results suggest we could be on top of a very exciting copper-gold discovery improving with depth, and we will be accelerating our drilling and exploration programs as a matter of priority to test that potential.

The explorer said it intends to commence follow-up diamond drilling later this month.

Tennant Minerals share price snapshot

With today’s intraday gains factored in, the Tennant Minerals share price is up an impressive 91% so far in 2022. That compares to a year-to-date loss of 6% posted by the All Ords.

The post Tennant Minerals (ASX:TMS) share price explodes 39% on ‘spectacular’ find appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: CSL and St Barbara charge higher
• Here’s why the St Barbara (ASX:SBM) share price is leaping 8% on Tuesday
• The price of nickel is soaring and these ASX mining shares are cashing in
• Altium (ASX:ALU) share price hinges on this key detail, top brokers say
• Here’s why the APA (ASX:APA) share price could be a top dividend share

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 St Barbara Ltd (ASX: SBM) share price is taking off today despite only silence from the company.

The gold miner’s gains come as the price of the metal lifts. Perhaps a more compelling explanation for the stock’s surge, however, is the emergence of reports claiming it could be a takeover target.

At the time of writing, the St Barbara share price is $1.53, 7.75% higher than its previous close.

For context, the S&P/ASX 200 Index (ASX: XJO) is down 0.2% right now. Meanwhile, the All Ordinaries Index (ASX: XAO) has slipped 0.4%.

Let’s take a closer look at what might be going on with the gold miner’s stock on Tuesday.

What’s boosting the St Barbara share price today?

St Barbara’s stock is storming higher amid rising gold prices and rumours it could be a takeover target.

Gold futures are up 0.24% on Tuesday morning AEDT, trading at US$2,000.60 an ounce, according to CNBC.

Reports that the St Barbara share price’s sluggish recent performance has placed it in prime takeover territory could also be bolstering the stock’s performance today.

Overnight, the Australian Financial Review (AFR) reported that bankers are looking to the gold miner and its Western Australian assets as a future merger and acquisition target.

The company’s Leonora Operations – housing the Gwalia Gold Mine – could be a shining beacon to other gold producers in the area.

These include Northern Star Resources (ASX: NST) and Ramelius Resources Limited (ASX: RMS), according to the AFR.

However, the publication claims St Barbara’s Simberi Operations – located in Papua New Guinea – might be a dead weight for acquisition talk.

Despite today’s gains, the St Barbara share price is still in the long-term red.

It has fallen 22% over the last 12 months while many of its gold mining peers have recorded gains.

The post Here’s why the St Barbara (ASX:SBM) share price is leaping 8% on Tuesday appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
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• Why Australian Ethical, Domino’s, Scentre, and St Barbara shares are falling
• Profits down: St Barbara (ASX:SBM) share price slides 5% on half-year results

Motley Fool contributor Brooke Cooper 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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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 war in Ukraine.”

____________________ 

ASX mining shares with an interest in nickel are rising today amid a surge in the price of the key commodity. The nickel price is booming on global markets amid supply concerns over the Russian invasion of Ukraine.

Four ASX nickel shares include Nickel Mines Ltd (ASX: NIC), Mincor Resources NL (ASX: MCR), Panoramic Resources Ltd (ASX: PAN), and IGO Ltd (ASX: IGO).

Let’s take a look at how these nickel shares are performing.

Nickel prices explode

The Nickel Mines share price has surged 18% since market close on 24 February. Over the same period, Mincor shares have gained 19%, Panoramic Resources has rocketed 37%, and IGO Resources has soared 24%.

These ASX mining shares are seeing steep climbs amid skyrocketing nickel prices. Nickel rocketed 90% to all-time highs on commodity markets on Monday, according to reports on NABtrade.

The nickel price is surging amid supply concerns due to economic sanctions being imposed on Russia. A report from Reuters, cited by NAB, said:

Russia supplies around 10% of the world’s nickel, and investors fear that Western sanctions against Russia could disrupt air and sea shipments of commodities produced and exported by Russia.

The nickel price hit $55,000 a tonne earlier in the trading session on the London Metal Exchange. At the time of writing, it is up nearly 73% to $50,300 a tonne.

Panoramic recently provided an update on its drilling at the company’s Savannah Nickel Project in Western Australia. Drilling at the mine identified a new zone of semi-massive mineralisation. Commenting on the news, CEO Victor Rajasooriar said:

Pleasingly, in our first hole, we have intersected an unexpected splay which has the potential to add additional metal to our mining inventory

This morning, Mincor Resources released a copy of a company presentation at the Euroz Hartleys Conference on Rottnest Island. Mincor described its Cassini mine as Australia’s “newest high-grade underground nickel operation” on the cusp of production.

The company said demand for clean nickel will rise with the increasing electric vehicle uptake. Mincor presented figures showing annual passenger EV sales could hit 20 million by 2025 and more than 70 million by 2040.

Share price snapshot

The Nickel Mines share price has surged 29% in the past year while Mincor has gained 124%. Panoramic has rocketed 146%, while IGO has shot up 110%.

Year to date, the Nickel Mines share price is up 19%. Meanwhile, Mincor has gained 28%, Panoramic is 20% higher, and IGO has increased by 17%.

For perspective, the benchmark S&P/ASX 200 Index (ASX: XJO) has returned around 5% over the past year.

The post The price of nickel is soaring and these ASX mining shares are cashing in appeared first on The Motley Fool Australia.

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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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Shares in Altium Limited (ASX: ALU) are inching higher in early trade on Tuesday and are now changing hands at $3.28 apiece.

After a splendid year on the chart in 2021, the story has been different in the new year for Altium. The ASX tech basket has copped a hammering as growth stocks undergo a 3-month long correction amid shifting yield spreads and a more risk-off environment.

As such, Altium has faltered over 28% since trading recommenced on January 4 and is now sitting at 3-month lows after sliding a further 6% this past month.

One broker is still bullish on Altium however, retaining a long-term view for the company’s outlook. Analysts at Jefferies reckon the growth story hinges on one key detail, and reckon there’s plenty of juice left to squeeze in this case.

Key investments are key for Altium

Analysts at investment bank Jefferies reckon that Altium has a high probability of succeeding in the enterprise market, which could inflect positively on the share price.

Despite mixed results at the company’s first half result, the broker was constructive on management’s language around the need to invest in enterprise and cloud-sales capacity.

It thinks this is sound reasoning and offers an attractive growth story should the company successfully convert on its objectives.

In fact, Jefferies now thinks Altium could well hit its target of US$500 million in sales in FY26 now that the roadmap is clearer post-COVID. It also reckons the stock is fairly priced considering all of this.

The broker rates Altium a buy and values the company at $42.61 per share which implies an upside potential of 32% at the time of writing.

Meanwhile, analysts at rival investment bank Citi are a little more cautious, and also believe investment in the enterprise segment is integral to Altium’s success.

However, Citi also believes this may be more difficult than first expected and may take longer than anticipated, as is often the case.

Not only that, but the firm believes earnings will take a slight hit as Altium ramps up its investment spend, thus eating into profit and investor earnings.

As such, it trimmed its FY22–24 EBITDA forecasts by approximately 3% to adjust for the increased investment spend and higher costs.

Altium share price snapshot

In the last 12 months, the Altium share price has soared. However, since headwinds in 2022, it has levelled off to a gain of 23% in that time, as shown below.

Things have been difficult this year and shares are down 28% this year to date. During the past month of trading, shares have collapsed another 6%.

The post Altium (ASX:ALU) share price hinges on this key detail, top brokers say appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium. 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 APA Group (ASX: APA) share price could be a leading ASX dividend share idea for income.

What does APA do?

APA says that it has 15,000 kilometres of natural gas pipelines connecting sources of supply and markets across mainland Australia.

It operates and maintains networks connecting 1.4 million Australian homes and businesses to natural gas. It owns or has interests in gas storage facilities, gas-fired power stations and renewable energy generation (wind and solar farms).

In total it owns or manages and operates a portfolio of assets of around $22 billion and delivers half the nation’s natural gas usage.

ASX dividend share credentials

One of the first things that investors may want to know about is the dividend yield.

In FY21, APA paid a distribution of $0.51 per unit. That equates to a trailing yield of 5.2%.

But the business is expecting to grow the distribution by another 3.9% in FY22 to $0.53 per unit. That translates into a forward yield of 5.4% at the current APA share price.

But there’s more to APA’s distribution than just the yield. It has grown its distribution every single year for more than a decade and a half. That’s one of the longest growth streaks on the ASX.

How does it keep growing its distribution?

The business funds its distribution from its cash flow.

In the recent FY22 half-year result, the free cash flow increased by 22.6% to $515.1 million thanks to higher earnings before interest, tax, depreciation and amortisation (EBITDA), lower interest costs and lower tax payments.

The ASX dividend share grows its cash flow by expanding its asset base and finishing projects.

APA currently has an organic growth pipeline that now exceeds $1.4 billion. In gas infrastructure, that includes the East Coast grid expansion, the Northern Goldfields interconnect and the Kurri Kuri lateral pipeline.

The business is also working on some electricity and renewables projects such as the Gruyere hybrid energy microgrid and Mica Creek solar farm.

Another investment that could have an influence on the APA share price is Basslink. The Basslink is the cable that connects Tasmania with the mainland. The business has bought 100% of Basslink’s senior secured debt at a discount to the face value.

APA intends to work with the receivers and managers, as well as Hydro Tasmania and the State of Tasmania, to put Basslink on a stable footing and convert it into a regulated asset. APA says that this provides a platform for further growth in adjacent energy opportunities.

Is hydrogen part of APA’s future?

APA is working on future energy technologies, playing its part in Australia’s energy transition. The Parmelia gas pipeline hydrogen project proposes a 100% hydrogen conversion of a section of the existing pipeline in WA. Phase 2 is underway, with lab testing of the pipeline materials in gaseous hydrogen conditions.

It’s also doing a feasibility study into the development of a large-scale renewable hydrogen project in Central Queensland with exports to Japan.

APA share price target

Ord Minnett currently has a price target on APA of $10.50, though the rating is currently a ‘hold’. The broker thinks that coal power plant closures will mean that gas will continue to play an important part in the overall system.

The post Here’s why the APA (ASX:APA) share price could be a top dividend share appeared first on The Motley Fool Australia.

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

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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.

Monday brought continued uncertainty to Wall Street, and major market benchmarks fell sharply as investors tried to figure out what the future might bring. Between soaring consumer prices, the prospect for rising interest rates, and energy markets facing another round of disruptions, market participants haven’t had a clear course to follow. By 12:45 p.m. ET, that sent the Dow Jones Industrial Average (DJINDICES: ^DJI) down 667 points to 32,948. The S&P 500 (SNPINDEX: ^GSPC) fell 95 points to 4,234, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) dropped 282 points to 13,031.

It was nearly two years ago that Warren Buffett faced harsh criticism for choosing to sell out of airline stocks at the beginning of the COVID-19 pandemic. The removal of United Airlines Holdings (NASDAQ: UAL), Southwest Airlines (NYSE: LUV), Delta Air Lines (NYSE: DAL), and American Airlines Group (NASDAQ: AAL) from the list of holdings at Berkshire Hathaway (NYSE: BRK.A) (NYSE: BRK.B) struck many as being akin to panic selling, especially when airline shares moved sharply higher soon thereafter. Now, though, airlines are still struggling, and their path forward is far from certain. 

The fall, rise, and fall of airline stocks

Before the pandemic began, investors were generally well disposed to airline stocks. An impressive run of profitable years had suggested that the industry had finally found a business model that would work.

The pandemic put a stop to that optimism. Shares of airline stocks plunged 50% to 60% or more from the beginning of 2020 over the course of three months. Most airlines used bailouts to help them survive financially.

But the development and distribution of effective vaccines seemed to put an end point on the trouble for airlines. By spring of 2021, Southwest shares were back above pre-pandemic levels, while other major airlines had trimmed their losses substantially.

Now, though, airlines appear to be back in dire straits. United is down more than 60% from where it started 2020, while American has fallen by more than half. Delta and Southwest are down about 45% and 30%, respectively. Today alone, the four stocks are down between 7% and 11%.

New challenges in the skies

Problems are lining up for airlines in new and troubling combinations:

• Traffic volumes had only begun to get back to pre-pandemic levels, as pent-up demand for travel largely overcame lingering worries about new COVID-19 variants. Prospects for broader global reopening had looked better. Yet with geopolitical risks having entered the picture, those favorable trends might well reverse themselves.
• One thing that had kept airlines as healthy as they were at the beginning of the pandemic was that energy prices fell to levels not seen in decades. In two years, energy prices returned to more normal levels. Now, the possibility of oil market disruptions related to Russia and its attack on Ukraine have sent oil prices to their highest levels in more than a decade. With jet fuel being a major cost for airlines, the news wasn’t welcome.

Buffett’s sale hinged on the idea that the industry might never look the same as it did before the pandemic. With new communication methods making in-person travel less vital, even a partial reduction in demand would require a dramatic response from airlines. Indeed, with much weaker balance sheets for many airlines and the prospects of renewed bailout support seeming dimmer, Buffett’s concerns might well turn out to have been correct.

Know your thesis

Buffett thinks long term, and it’s always premature to judge long-term decisions based on how stocks move in a month, quarter, or even year. Airlines might well turn out OK from here, but it’s clear that they’ve faced many of the ongoing uncertainties that prompted Buffett to seek greener pastures elsewhere. 

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

The post Could Warren Buffett’s airline sales turn out to be right after all? appeared first on The Motley Fool Australia.

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• 4 reasons why top broker says Woolworths (ASX:WOW) shares are a buy right now
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• Here’s why the Lovisa (ASX:LOV) share price is sliding 5% today
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Dan Caplinger owns Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Berkshire Hathaway (B shares). The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Delta Air Lines and has recommended the following options: long January 2023 $200 calls on Berkshire Hathaway (B shares), short January 2023 $200 puts on Berkshire Hathaway (B shares), and short January 2023 $265 calls on Berkshire Hathaway (B shares). The Motley Fool Australia has recommended Berkshire Hathaway (B shares). 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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Shares in retail conglomerate Woolworths Group Ltd (ASX: WOW) are up nearly 2% in early trading on Tuesday, fetching $35.25 a share at the time of writing.

It’s been a mixed bag for Woolworths so far in 2022, with its shares dropping 7% in the red after a shaky start to the year.

This has effectively erased the bulk of gains earned over the last 12 months. The Woolworths share price is now around 2% in the green during that time.

Below is a chart of the retailer’s recent performance against the S&P ASX 200 Index (ASX: XJO).

However, one broker is seeing past the short-term noise and is urging its clients to buy Woolworths with an upside potential of around 14% as at today’s opening price. JP Morgan outlines four reasons for buying Woolies shares in its investment analysis on the company.

Is Woolworths a buy?

Analysts at JP Morgan tip Woolworths to have a bumper year in 2022.

The broker’s analysis centres around Woolworths’ core operations that, it says, held strongly during the pandemic or have firmly recovered from its effects.

The first buying factor boils down to growth in key segments like food (fresh and perishable) and operating cash flows, JP Morgan says.

“Food LFL [like for like] sales growth supported by local, online and ongoing execution capabilities, as Woolworths continues to execute across its strategy of convenience, fresh and range,” analysts say.

“Operating leverage, falling COVID-19 costs and lower labour inflation are supports for EBIT margin expansion.”

Secondly, the Everyday Needs segment is performing well and is a key differentiator to Woolworths’ earnings and, therefore, the investment case, the broker says.

“The Everyday Needs ecosystem leverages and extends the competitive advantages of the Food business, while adding to [its] earnings growth.”

Thirdly, Big W, the company’s chain of discount department stores, has apparently shown a strong turnaround and “has been a positive”, according to the broker.

That’s important to consider, analysts say, seeing as department stores across the country were severely impacted by COVID-19 lockdowns. It seems Big W has passed the broker’s litmus test for “further opportunity due to DC [distribution centre] and store network optimisation”.

Finally, JP Morgan believes Woolworths is at the tip of the spear when it comes to its online platform, suggesting the group has a better offering in the post-COVID world.

Analysts believe this could put Woolworths in an above-market growth position, tipping its online penetration could easily more than triple in FY22.

“We view Woolworths’ market-leading online platform favourably and see sustained levels of high online penetration post-COVID. After a period of normalisation, we expect online penetration to continue to grow to ~14% over the next five years (versus 4.2% in CY19),” the broker concluded.

JP Morgan rates Woolworths a buy and values the company at $39.50 per share, suggesting a potential for decent upside should its thesis play out.

Woolworths share price snapshot

In the last 12 months, the Woolworths share price is up around 2%, however, is down 7.2% this year to date.

During the past 30 days of trading, Woolies shares have risen around 2% but are down marginally over the past week. With these returns, Woolworths is trailing the broad index’s performance this year.

The post 4 reasons why top broker says Woolworths (ASX:WOW) shares are a buy right now appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow 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 VanEck Gold Miners ETF (ASX: GDX) has significantly outperformed Australia’s benchmark index in 2022 so far.

It has gained an impressive 20.5% since the start of this year, compared to the S&P/ASX 200 Index‘s (ASX: XJO) 7.3% tumble.

It has also outperformed the S&P/ASX All Ords Gold Index (ASX: XGD) by around 9%.

Right now, a slice of the VanEck Gold Miners ETF will set an investor back $52.40.

So, what stocks has the exchange traded fund (ETF) snapped up to outperform the broader market and the gold sector in 2022? Let’s take a look.

Here’s what makes up VanEck Gold Miners ETF’s portfolio

As the name suggests, the VanEck Gold Miners ETF is made up of stocks involved in the gold mining industry.

Its biggest holding is Newmont Corporation (NYSE: NEM) shares. Stock in the US$61.7 billion gold miner make up 17% of the ETF’s portfolio, as of 4 March.

Its second largest investment is Barrick Gold Corp (NYSE: GOLD), making up 12%.

Franco Nevada Corp (NYSE: FNV), Agnico Eagle Mines Ltd (NYSE: AEM), and Wheaton Precious Metals Corp (NYSE: WPM) each make up between 6% and 9% of the ETF’s holdings.

One Aussie gold miner has managed to squeeze into a crowning position in the VanEck Gold Miners ETF. Newcrest Mining Ltd (ASX: NCM) shares represent 4.6% of its portfolio.

It also owns Northern Star Resources Ltd (ASX: NST), Evolution Mining Ltd (ASX: EVN) – they sit at 2.5% and 1.9% of its holdings respectively.

Less than 1% of its holdings are dedicated to ASX gold miners Perseus Mining Limited (ASX: PRU), Silver Lake Resources Limited (ASX: SLR), Regis Resources Limited (ASX: RRL), Gold Road Resources Ltd (ASX: GOR), Capricorn Metals Ltd (ASX: CMM), Ramelius Resources Limited (ASX: RMS), and West African Resources Ltd (ASX: WAF).

The post Own the VanEck Gold Miners ETF (ASX:GDX)? Here’s what you’re invested in appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper 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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