The Flight Centre Travel Group Ltd (ASX: FLT) share price hit a 3-month high after reaching $21.27 today.

Unfortunately, its fresh new high was short-lived as the travel agent’s shares have since given back their gains.

The Flight Centre share price finished the session today at $20.69, down 1.48%.

Flight Centre shares rocket on reopening of tourism industry

With the reopening of the Australian international border for fully-vaccinated tourists on 21 February, the Flight Centre share price has soared.

The announcement made on 7 February by the Morrison Government sent Flight Centre shares 7.8% higher on the day. This was followed by another 6.71% gain on 8 February, meaning the shares climbed 15% over the two days.

While the number of COVID-19 cases is dwindling, the world is starting to move to a post-pandemic phase.

Countries such as Denmark and Sweden have completely removed COVID-19 restrictions and accepted life with the virus.

In other parts of the world like Ireland and South Africa, most travel-related restrictions have been dissolved. Flight Centre has a global travel agent network that extends throughout Australia, New Zealand, the US, Canada, India, Hong Kong, the UK, Ireland, and South Africa.

The British government has ended the mask mandate and vaccine passports. Fully vaccinated travellers are no longer required to take a test on or before arrival. This means that passengers can freely travel to the country, encouraging a resurgence in the tourism industry.

What does it all mean for Flight Centre?

The clearer visibility surrounding the resumption of travel could lead to Flight Centre achieving better financial numbers for FY22.

Late last year, the company highlighted a return in leisure and corporate profitability. Corporate transaction numbers were at 50% of pre-COVID levels, representing around 40% of Flight Centre’s total transaction value (TTV).

The business has become a much leaner and more efficient cost base model compared to pre-COVID. This is expected to translate to bumper profits in the long term.

Looking ahead, Flight Centre is scheduled to report its FY22 half-year results on 24 February.

Flight Centre share price summary

It’s been a rollercoaster 12 months for Flight Centre investors, with its share price up 40% over the period.

When looking at this time last month, the travel agent’s share price has risen by 16% due to positive investor sentiment.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has shed 1.6% over the same time frame.

On valuation grounds, Flight Centre has a market capitalisation of about $4.19 billion, with approximately 199.63 million shares outstanding.

The post The Flight Centre (ASX:FLT) share price just surged to a 3-month high. Here’s why appeared first on The Motley Fool Australia.

More reading

• Why are ASX travel shares taking flight today?
• These are the 10 most shorted ASX shares
• Why has the Flight Centre (ASX:FLT) share price lifted off 16% in a week?
• These were the best performing ASX 200 shares last week
• Is the Flight Centre (ASX:FLT) share price potential recovery as big as it seems?

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 recommended Flight Centre Travel Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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It has been another disappointing day for the Zip Co Ltd (ASX: Z1P) share price.

On Thursday, the buy now pay later (BNPL) provider’s shares tumbled to a new 52-week low of $2.64.

This latest decline means the Zip share price is now down almost 80% over the last 12 months.

What’s going on with the Zip share price?

Investors have been selling down the Zip share price amid weakness in the tech sector (and particularly in the BNPL category).

In addition, there are concerns that near term trading conditions could be challenging. These concerns heightened following the release of PayPal’s recent quarterly update. A note out of Citi highlights the latter.

Citi commented: “PayPal’s commentary [was] in-line with our view that near-term conditions are challenging with PayPal calling out a weaker than expected start to 2022 due to slower ecommerce, pull back in spending by lower-income consumers and strong comps.”

In light of this, Citi has warned that Zip’s third quarter update could be weaker than the market is expecting. The broker also highlights that there is a danger than bad debts could worsen in the US due to inflationary pressures and unwinding stimulus.

It added: “We see potential for Zip’s 3Q update to be weaker than expected (we are -3% below IBES consensus revenue for FY22e). From a bad debt/credit quality perspective, Sezzle’s recent quarterly update does suggest that credit quality in the US is stable, however one factor to consider is whether higher inflation and unwind of stimulus could impact Zip’s US bad debts in 2H22e.”

Can its shares keep falling?

While it is impossible to say whether the Zip share price will keep falling, it is worth noting that even bearish analysts have price targets materially ahead of where it trades today.

For example, Macquarie has an underperform rating and $3.40 price target on its shares and Citi has a neutral rating and $3.65 price target. This implies potential upside of ~30% for investors.

The post Down 80% in a year: Can the Zip (ASX:Z1P) share price sink any lower? appeared first on The Motley Fool Australia.

More reading

• How did ASX tech shares perform today?
• The Zip (ASX:Z1P) share price hit another 52-week low this week. Is now the time to buy?
• These are the 10 most shorted ASX shares
• Why these 2 All Ordinaries BNPL shares are plunging to 52-week lows
• Why AGL, Magellan, Xero, and Zip shares are sinking

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 ZIPCOLTD FPO. 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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ASX dividend shares are known as being capable of being able to pay higher levels of income than what someone could get from a bond or banking savings account.

However, there are a group of businesses that are expected to pay a much higher-than-average level of dividends to investors.

Companies have the ability to decide what level of shareholder payout to dish out. But share prices are volatile and up to the market to decide.

Here are two ASX dividend shares that have the potential to pay bigger dividends:

Inghams Group Ltd (ASX: ING)

Inghams is the largest integrated poultry producer across Australia and New Zealand. It’s over a century old, though it hasn’t been on the ASX for that long.

People always need to eat food of some sort, so there is generally a fairly consistent level of demand for Inghams’ products.

However, the last few months have seen imbalance between supply and demand with product shortages. The rapid spread of the Omicron variant led to staff shortages and also impacted the Australian supply chain, operations, logistics and sales performance. Omicron was also impacting suppliers and customers. This disrupted production and distribution capability, as well as hurting sales.

Over the last five months, the Inghams share price has dropped more than 10%. However, this offers prospective investors with a higher potential yield. It’s working on a number of initiatives to improve its operations and profitability in the coming years.

How big will the dividend yield be? Citi thinks the grossed-up dividend yield will be 6.1% in FY22 and almost 8% in FY23.

BHP Group Ltd (ASX: BHP)

BHP is an ASX dividend share which has built a reputation as a dividend payer. It’s currently the biggest dividend payer in Australia and one of the biggest in the world.

The S&P/ASX 200 Index (ASX: XJO) resources business just unveiled a 77% increase in its underlying earnings per share (EPS) to US$2.11. This helped grow the interim dividend by 49% to US$1.50 per share.

BHP was boosted by higher commodity prices for all of its operations compared to the prior year, including iron ore, copper, nickel, coal and oil.

The ASX dividend share remains positive on the outlook for long-term global economic growth and commodity demand.

BHP says that population growth, the infrastructure of decarbonisation and rising living standards are all expected to drive demand for energy, metals and fertilisers for “decades to come”.

How big will the BHP dividends be in the coming years?

Credit Suisse, which is currently ‘neutral’ on the business, has a price target of $44 on BHP. The FY22 grossed-up dividend yield is expected by the broker to be 10.7% and 10.1% in FY23.

The post 2 ASX dividend shares with BIG yields appeared first on The Motley Fool Australia.

More reading

• Own BHP (ASX:BHP) shares? Here’s how the ASX 200 miner is battling COVID
• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report
• 2 ASX dividend shares that could provide steady passive income
• Is BHP (ASX:BHP) the best ASX dividend share?
• 5 things to watch on the ASX 200 on Thursday

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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The ASX share market has been on a bit of a rollercoaster ride recently, with investors spooked by the prospect of central banks raising interest rates.

This retraction in sentiment has been especially pronounced among the tech sector, as investors become less willing to pay high multiples for future earnings.

Many companies grouped under the tech umbrella have suffered heavy selling. However, one fund manager believes one ASX share has been wrongly assigned to the ‘losing bucket’ in an elevated interest rate environment.

On the contrary, EML Payments Ltd (ASX: EML) is anticipated to benefit in a world with higher interest rates.

We sat down with TAMIM Asset Management’s head of Australian equity strategy, Ron Shamgar, to make sense of this.

How will this ASX share benefit from higher rates?

Yesterday, the payment solutions company released its results for the first half of FY22. Despite EML’s gross debit volume (GDV) growing 206% and revenue increasing 20% from the prior corresponding period, the market dumped the ASX share by 4%.

The EML Payments share price has performed in line with other battered tech names so far this year. Since the start of 2022, shares in the payment technology company have tumbled around 11%. Though, the market might be overlooking EML’s built-in rate hedge.

Shamgar highlighted a point in the company’s presentation, saying:

Every 1% interest rate rise across the UK, the European region, and the US adds an incremental $15 million of EBIT to EML. Now, they did break it down into more detail. But basically, there are a few more nuances to it, but because they use sponsoring banks in North America, they don’t really benefit until rates get to around 2%.

So, therefore, the 1% rate rise doesn’t apply to the $2.7 billion [in stored float], it applies to a smaller amount, which works out to be $15 million of EBIT, which is what they articulated.

Furthermore, the fund manager spotlighted EML Payments as “the biggest beneficiary in the small-cap space” from higher rates.

Ironically, with rates going higher — because we have inflation — investors have been selling off tech stocks. Yet a company like EML has been put in that tech bucket, but they’re actually going to make lots more profits if rates go up. So inflation and rates are actually meaning that their business is more valuable… It’s contrarian to what many investors think.

Could more acquisitions be on the cards?

EML Payments has significantly grown its business in the last couple of years through acquisition. This approach has come with positives and negatives. The major negative has been the Central Bank of Ireland taking issue with EML’s PFS Card Services (Ireland) Limited (PCSIL) operations.

The dust appears to be settling on the PCSIL ordeal, letting the company move forward with its next chapter. Could that entail more acquisitions on the horizon for this ASX share?

EML is building sort of a truly global payments business and they’re thinking three to four years ahead. They are seeing where payments are going and where the biggest growth areas are. Open banking is obviously a massive opportunity that’s got, sort of, unlimited upside.

Shamgar added:

To me, I don’t think they’ll do any other acquisitions this calendar year, I think they’ll focus on showing the market that the acquisitions that they have made are going well. And then maybe next year, they look to do maybe some other deals.

But again, it will have to be something that they don’t want to buy something for the sake of it. They’re going to buy something because it’s going to give them access to certain customers or other certain capabilities that they don’t currently have, or new geography, for example.

In afternoon trade, shares in ASX-listed EML Payments are fetching $2.86 apiece, down 1.38%.

The post Don’t fear the rise! One ASX share that’s ready for an interest rate hike appeared first on The Motley Fool Australia.

More reading

• EML (ASX:EML) share price sinks 9% despite record-breaking product demand
• Is the EML (ASX:EML) share price the most undervalued growth opportunity?
• Down almost 20% in 2022, is the EML share price now too good to ignore?
• 2 fast-growing ASX shares rated as buys in this correction
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Motley Fool contributor Mitchell Lawler owns EML Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended EML Payments. The Motley Fool Australia owns and has recommended EML Payments. 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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Qantas Airways Limited (ASX: QAN) shares were badly hit when COVID-19 all but shut down domestic and international flights.

As borders have slowly been reopening, Qantas shares have also recovered. Though they remain down some 25% from the pre-pandemic levels in early 2020.

With international travel remaining tricky and subject to change on the whims of foreign governments, Qantas has seen its domestic numbers return faster than overseas travellers.

This has also seen the airline’s subsidiary, QantasLink expanding its domestic routes. And, as the Motley Fool reported earlier this month, that drew the ire of Regional Express Holdings Ltd (ASX: REX). But Rex isn’t sitting on its laurels.

Rex has big expansion plans

The smaller airline carved its niche in the industry with a fleet of propeller planes, servicing rural Australia where the major airlines have less of a presence.

But it’s got bigger plans in mind.

Last year the airline began competing more directly with Qantas when it began flying major routes, like Melbourne-Sydney and Melbourne-Adelaide, with a fleet of six Boeing 737s.

Now, as Bloomberg reports, Rex Chairman Lim Kim Hai says he intends to increase that fleet “to as many as 30 by adding a plane every two to three months”.

Speaking at the Singapore Airshow, Lim said: “That’s a very good medium-term objective. There’s a lot to be said for economies of scale”.

COVID-19 restrictions hit Rex hard as well, but the regional carrier has more than recovered. While Qantas shares remain down 25% from pre-pandemic levels, the Rex share price is up approximately 30%.

And Lim said an uptick in recent bookings indicate travel numbers may have hit bottom.

“I’m just starting to see in the last six or seven days a turnaround. Significant enough for me to believe that probably the bottom has been reached,” he said.

How have Qantas shares been tracking?

As domestic borders have reopened, save Western Australia, and international travel is scheduled to resume next Monday, 21 February, Qantas shares have benefitted.

So far in 2022, the Qantas share price is up 5.5%. The Rex share price is up by 2.1%. That compares to a 3.8% loss posted by the S&P/ASX 200 Index (ASX: XJO).

The post Own Qantas (ASX:QAN) shares? Here’s how Rex plans to turn up the heat appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares to buy before the market rockets up again
• Why are ASX travel shares taking flight today?
• Border drama: Qantas (ASX:QAN) faces continued challenges on ‘kangaroo route’
• Qantas (ASX:QAN) share price slips amid Bonza plans to launch ‘something very different to the market’
• ‘Deeply unfair’: Here’s why some Qantas (ASX:QAN) customers are seeing red

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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Altium Limited (ASX: ALU) shares will be in focus next week when it releases its half year results.

Ahead of the release, let’s take a look to see what the market is expecting from the electronic design software company.

What is the market expecting from Altium?

According to a recent note out of Bell Potter, its analysts are anticipating a solid half year update from Altium.

The broker is forecasting strong revenue and operating earnings growth on a like for like basis. In fact, it suspects the company could be tracking slightly ahead of its FY 2022 revenue guidance range based on its usual 45%/55% split between the first and second halves.

Bell Potter explained: “We are expecting a strong 1HFY22 result for Altium with forecast revenue and EBITDA growth of 24% and 29% respectively. (Note these forecasts are on a like-for-like basis and exclude TASKING which was sold in 2HFY21.)”

“Our 1HFY22 revenue forecast of US$99.4m is c.45% of our FY22 forecast of US$218.4m – which is slightly ahead of the US$209-217m guidance range – so we are assuming a relatively normal 45%/55% split in 1H/2HFY22 revenue for the company,” it added.

As for earnings, the broker is being conservative and is forecasting an EBITDA margin of 35%, which leaves some upside risk.

It commented: “Our 1HFY22 EBITDA forecast of US$34.8m equates to an EBITDA margin of 35.0% which is below our FY22 forecast of 36.5% so there is some conservatism in our 1HFY22 margin forecast.”

Are Altium shares in the buy zone?

Bell Potter sees value in Altium shares at the current level. The note reveals that the broker has a buy rating and $40.00 price target on them at present.

This suggests that there is 14% upside for investors over the next 12 months based on its current share price of $35.05.

The post Own Altium (ASX:ALU) shares? Here’s what to expect from its half year results appeared first on The Motley Fool Australia.

More reading

• 3 ASX shares I missed that haunt me to this day
• How did ASX tech shares perform today?
• 2 quality ASX tech shares for investors after the selloff
• What are brokers expecting for ASX tech shares this earnings season?
• 3 buy-rated ASX 200 shares with plenty of upside potential

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 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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On Wednesday, we looked at three ASX shares that brokers have given buy ratings to this week. Unfortunately, not all shares are in favour with brokers right now.

Three ASX shares that have just been given sell ratings by brokers are listed below. Here’s why they are bearish on them:

Fortescue Metals Group Limited (ASX: FMG)

According to a note out of Credit Suisse, its analysts have retained their underperform rating and $14.00 price target on this mining giant’s shares. Although Fortescue delivered a half year result in line with its expectations, it can’t find a way to justify its current valuation. Especially given its belief that robust demand for Fortescue’s low grade iron ore will be short lived. The Fortescue share price is trading at $20.70 on Thursday.

Pro Medicus Limited (ASX: PME)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating and slashed their price target on this health imaging technology company’s shares to $44.80. Its analysts believe there is a risk that Pro Medicus’ growth could taper beyond FY 2022. If this happens, it feels the market will be unable to justify the sky high multiples that its shares trade on. The Pro Medicus share price has fallen heavily today and now trades at $45.64.

Seek Limited (ASX: SEK)

Another note out of Goldman Sachs reveals that its analysts have retained their sell rating but lifted their price target on this job listings company’s shares to $29.10. While Seek posted a half year result that was well ahead of the broker’s estimates and upgraded its guidance, it isn’t enough for a more positive rating. Goldman has concerns about how volume, depth, and pricing interplay through FY 2023 as the labour market starts to normalise. The Seek share price is now trading below this price target at $28.92.

The post Top brokers name 3 ASX shares to sell today appeared first on The Motley Fool Australia.

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• Broker warns that Fortescue (ASX:FMG) share price could fall 30%
• Is BHP (ASX:BHP) the best ASX dividend share?
• Why BHP, Fortescue, Netwealth, and Santos shares are falling
• Why has the Fortescue (ASX:FMG) dividend tumbled 40%?
• Pro Medicus (ASX:PME) share price surges 8% on historic results

Motley Fool contributor James Mickleboro owns SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Pro Medicus Ltd. The Motley Fool Australia owns and has recommended Pro Medicus 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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It’s a good day for the S&P/ASX 200 Index (ASX: XJO) and these heavyweights are making the most of it.

Right now, the ASX 200 is up 0.55%, boosting back towards a recovery from its disastrous January performance.

But not all of the index’s constituents have suffered in 2022. In fact, these three shares are trading at their highest price in at least 12 months.

These ASX 200 giants are hitting new 12-month highs

Woodside Petroleum Limited (ASX: WPL)

The Woodside Petroleum share price surged 4.9% earlier today to trade at its new 52-week high of $27.95.

Its gains come after the oil producer reported its after-tax profits increased 262% over the first half of financial year 2022 to reach around US$1.6 billion.

In turn, the company’s interim dividend was boosted 255% higher than that of the previous first half, coming to US$1.05.

Woodside’s profits soared alongside its realised oil price, which came in at US$60.30 last half.

Computershare Limited (ASX: CPU)

There’s no such clear reason behind Computershare’s gains today.

The ASX 200 technology company’s shares gained 1.55% earlier today to reach a new 52-week high of $23.49.

Right now, the Computershare share price is 15% higher than it was at the start of 2022 despite January’s ASX tech sell-off.

Vicinity Centres (ASX: VCX)

Finally, the Vicinity Centres share price also hit a new 52-week high of $1.93 today, gaining 3.4% in the process.

While there’s been no word from the retail-focused real estate investment trust (REIT) today, it did release its half-year results yesterday to the market’s delight.

Its net profit after tax (NPAT) for the period came to $650 million – more than $1 billion higher than that of the prior comparable period.

That’s despite Vicinity CEO and managing director Grant Kelley saying the period was “challenging” for the REIT as COVID-19‘s Omicron variant impacted its retail partners.

The ASX 200 REIT’s share price gained 11% after releasing its earnings on Wednesday.

The post 3 ASX 200 shares hitting 52-week highs today appeared first on The Motley Fool Australia.

More reading

• ASX 200 energy shares to become ‘cash machines’: broker
• Why Challenger, CSL, NRW, and Woodside shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report
• Woodside (ASX:WPL) share price hits 52-week high after tripling full year earnings
• 5 things to watch on the ASX 200 on Thursday

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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S&P/ASX 200 Index (ASX: XJO) energy shares have been off to a strong start in the new year.

While the broader ASX 200 is down 3.5% in 2022, the S&P/ASX 200 Energy Index (ASX: XEJ) has gained 8.9%.

That energy index is comprised of big name ASX 200 energy shares like Santos Ltd (ASX: STO), up 7.2% so far this year.

Then there’s competing ASX 200 energy share Woodside Petroleum Limited (ASX: WPL), which has gained 22.5% since the opening bell on 4 January.

And the Beach Energy Ltd (ASX: BPT) share price has leapt 13.1% higher in that same time, giving it a current market cap of $3.3 billion.

ASX 200 energy shares to become ‘cash machines’

Earlier today Woodside released its full year results. And they didn’t disappoint.

Among the highlights, the ASX 200 energy share reported a 262% increase in underlying net profit after tax (NPAT) to US$1.62 billion. The company also paid a fully franked final dividend of US$1.05 per share, up 255% year on year.

Shaw and Partners called the results a “watershed moment” for the Aussie energy sector, with expectations that fossil fuels will be part of the energy mix for a long time yet as the world transitions to renewable sources.

According to Shaw and Partners (quoted by The Australian):

Over the past several years, the chorus of investors demanding returns from the sector has grown louder. The US Shale sector has responded, the Super Major have responded, howver the Australian listed companies have been caught in no man’s land.

Woodside’s CY21 today is the first time I can remember since CY14 that an Australain Oil & Gas company has so comprehensively beaten consensus estimates and at the same time provided a return to shareholders.

The broker said that companies in the sector, like ASX 200 energy shares, “are going to become cash machines, in the same way cigarette companies did post advertising restrictions in the 1970s”.

Shaw and Partners expects this won’t be the last time Woodside reports a double-digit yield and beats earnings expectation.

US and European energy shares also undergoing ‘tectonic shift’

The same tide that’s lifting ASX 200 energy shares is at work across the globe, as energy prices continue to surge.

Travis Stice, CEO of US shale driller Diamondback Energy said (quoted by Bloomberg), “Eighteen months ago, we were in a global apocalypse for the energy sector, and now you’re talking about out-sized returns. We should all pause and recognize the tectonic shift.”

Shell CEO Ben van Beurden added, “We are struggling as an industry to keep up with supply. Partly, that is because of the fact that during the lean years, we’ve all been very disciplined in cash preservation and in our investment decisions.”

With the tectonic shift still underway and the energy industry struggling to meet demand, ASX 200 energy shares look set for some healthy tailwinds.

The post ASX 200 energy shares to become ‘cash machines’: broker appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 shares hitting 52-week highs today
• Why Challenger, CSL, NRW, and Woodside shares are pushing higher
• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report
• Woodside (ASX:WPL) share price hits 52-week high after tripling full year earnings
• 5 things to watch on the ASX 200 on Thursday

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 S&P/ASX 200 Index (ASX: XJO) has faded from its intraday highs but remains in positive territory. In afternoon trade, the benchmark index is up 0.15% to 7,295.8 points.

Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

Block Inc (ASX: SQ2)

The Block share price is down 5% to $151.00. This follows a similarly sharp decline for the payments company’s US-listed shares overnight. Investors continue to sell down fintech and buy now pay later shares. This appears to be on valuation concerns amid the prospect of interest rate increases coming sooner than anticipated.

Domain Holdings Australia Ltd (ASX: DHG)

The Domain share price is down 7% to $4.33. Investors have been selling this property listings company’s shares following the release of its half year results. This is despite Domain delivering a 27.9% increase in revenue to $175.3 million and a 34.2% jump in net profit to $26.1 million. However, an increase to its full year costs expectations could be weighing on its shares.

Telstra Corporation Ltd (ASX: TLS)

The Telstra share price is down 4% to $3.90. This is despite the telco giant delivering underlying earnings growth during the first half. Telstra posted a 4.4% decline in revenue to $10.5 billion but a 5.1% increase in underlying EBITDA to $3.5 billion. These earnings came in ahead of what analysts at Goldman Sachs were expecting. Some investors appear to have been expecting even better.

Wesfarmers Ltd (ASX: WES)

The Wesfarmers share price is down over 7% to $50.89 following the release of a disappointing half year result. The conglomerate reported broadly flat revenue but a 14.2% decline in net profit after tax to $1.2 billion. This was driven largely by the loss of ~34,000 store trading days due to COVID related closures. Investors may also have concerns with management’s plan to support customers in a more inflationary environment, rather than pass costs on.

The post Why Block, Domain, Telstra, and Wesfarmers shares are dropping appeared first on The Motley Fool Australia.

More reading

• Wesfarmers (ASX:WES) share price plunges 6% as Omicron takes its toll
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• ASX 200 (ASX:XJO) midday update: Telstra, Wesfarmers, and Woodside report
• Wesfarmers (ASX:WES) share price on watch after ‘most disrupted period’ since COVID onset
• Hold the phone! Telstra (ASX:TLS) delivers solid underlying growth and declares 8cps dividend

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 Block, Inc. The Motley Fool Australia owns and has recommended Telstra Corporation Limited and Wesfarmers Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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