Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Capital H Management founder and chief executive Harley Grosser reveals a pair of small-cap ASX shares his funds are loving at the moment.

Investment style

The Motley Fool: How would you describe your fund to a potential client?

Harley Grosser: Capital H is a small- and micro-cap specialist. We have two funds at Capital H, both of which are small-cap focused. 

Inception Fund is our flagship fund. The focus is on investing in undervalued quality growing companies with good quality management teams. And we take high-conviction positions in that fund and generated comfortably north of 30% per annum after fees now for the almost 4 years it’s been running.

The active fund is our second fund. We started that in March of last year and the strategy there is to focus on finding companies that we can add value to i.e. being active in. So there’s various ways we can do that, but generally, it’s in a friendly activist style. That’s our fund that we allocate any investment positions that we think we can be active in the company to add value for shareholders.

Biggest convictions

MF: What are your two biggest holdings?

HG: I thought I’d give you one of each — largest holding in each fund.

So Inception Fund’s largest holding is Environmental Group Ltd (ASX: EGL). It’s actually been listed on the ASX since the 1970s, so it’s been around for a long time. 

We just think that its time has come. A bit of a cliche, but we think that’s true.

So EGL’s portfolio businesses are involved in, basically, protection of the environment — things like improving air quality, reducing carbon emissions and removing waste. So of those core businesses, we think they’ll do around $4 million of EBIT this year, which we think is positive. 

It is a growing cash flow positive business, but what’s most exciting for EGL is their PFAS removal technology. 

We actually got out to visit their plant in Melbourne earlier this year. They released their first order of trial results late last year in December, which the market viewed as very positive. And on the site visit, I think we were most impressed just by the simplicity of the technology, which we think improves their odds of successful commercialisation.

Then most importantly, the management team is A grade. They’ve done it before at Tox Free — a lot of the institutional fund managers know of [chief executive] Jason [Dixon] and his team, and the stock looks good value to us. So we’d expect it to do well this year.

MF: It was listed in the 1970s?

HG: It actually listed in 1977. It was founded, I think, in the 1920s.

It’s funny how often that happens in micro caps though. Companies list a long time ago, then they reinvent themselves. They go nowhere then it’s sort of their time. 

For a company that focuses on improving the quality of the environment in a number of different ways, it’s pretty easy to see that now is kind of their time.

MF: And the biggest holding in the active fund?

HG: So the biggest position in the active fund is a company called ARC Funds Ltd (ASX: ARC). For this one, I do need to disclose I’m the managing director. We sit on the board.

So ARC Funds are a listed multi-affiliate boutique funds management group. So think like Pinnacle Investment Management Group Ltd (ASX: PNI), but a smaller version. 

We take equity stakes in emerging funds management talent, and then we provide them with the infrastructure, the services and the distribution that they need to succeed to build these successful growing profitable funds management businesses. 

We actually released on the ASX this morning an update that Magnum Funds, which our fixed income manager had secured $35 million of commitments for, it’s soon to be launched [as an] active ETF. 

And our other manager, Merewether, launched their fund in November last year. [It] has raised about $5 million of funds and has performed very strongly over the last few months, which was a pretty rough few months for equity investors. 

We’ve got an exciting pipeline there of new managers and products — and we think it should be, if we do our job right, it should be a good year.

The post 2 ASX shares loved by expert who averages 30% return per year appeared first on The Motley Fool Australia.

More reading

• Analysts tip these ASX shares to offer huge fully franked dividend yields
• 5 things to watch on the ASX 200 on Tuesday
• 2 quality ASX tech shares for investors after the selloff
• Why are ASX 200 bank shares getting so much love today?
• What to expect when Cochlear (ASX:COH) releases its half year results

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 PINNACLE FPO. The Motley Fool Australia owns and has recommended PINNACLE FPO. 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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Although the outlook for interest rates is becoming increasingly positive, it is still likely to be some time until rates are at a sufficient level for income investors.

In light of this, ASX dividend shares could be the best option for them for a little while to come. But which dividend shares could be top options?

Two to consider are listed below. Here’s what you need to know about them:

Adairs Ltd (ASX: ADH)

The first ASX dividend share to look at is this furniture and homewares retailer. Its shares are trading far closer to their 52-week low than high right now after a disappointing first half trading update.

However, it is worth noting that this was driven by COVID lockdowns, which led to Adairs losing almost a third of its trading days during the half. On a like for like basis and adjusted for closures, its sales were up 2.7% year on year.

The team at Morgans don’t believe now is the time to throw in the towel. The broker believes the sell down of Adairs shares was overdone and has created a buying opportunity. So much so, it has put an add rating and $3.70 price target on its shares.

As for dividends, it is forecasting fully franked dividends of 19 cents per share in FY 2022 and 26 cents per share in FY 2023. Based on the current Adairs share price of $3.11, this will mean yields of 6.1% and 8.4%, respectively.

South32 Ltd (ASX: S32)

Another ASX dividend share to look at is this mining giant. It has been tipped to generate strong free cash flow and reward shareholders handsomely in the coming years.

This is being underpinned by its exposure to a number of in-demand commodities such as aluminium and the recent acquisition of a stake in the Sierra Gorda copper mine in Chile.

Analysts at Goldman Sachs expect this to allow South32 to pay fully franked dividends that equate to yields of greater than 10% over the next five years.

The broker also sees decent upside for the South32 share price. It has a conviction buy rating and $5.00 price target on the miner’s shares. This compares to the current South32 share price of $4.53.

The post Analysts tip these ASX shares to offer huge fully franked dividend yields appeared first on The Motley Fool Australia.

More reading

• 2 quality ASX dividend shares to buy next week
• Here are the 3 most heavily traded ASX 200 shares this Friday
• Why Motley Fool analyst Drew Flowers thinks now is a great time to furnish your portfolio with Adairs (ASX:ADH) shares
• These 3 ASX energy shares just hit 52-week highs
• Why is the South32 (ASX:S32) share price surging to all-time highs today?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended ADAIRS FPO. The Motley Fool Australia owns and has recommended ADAIRS FPO. 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 Monday, the S&P/ASX 200 Index (ASX: XJO) overcame a tough start to record a decent gain. The benchmark index rose 0.4% to 7,243.9 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 futures pointing lower

The Australian share market is expected to open the day sharply lower this morning following a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 105 points or 1.5% lower. In late trade on Wall Street, the Dow Jones is down 1.2%, the S&P 500 is down 1.1%, and the Nasdaq has fallen 0.8%.

BHP half year results

The BHP Group Ltd (ASX: BHP) share price will be in focus on Tuesday when it releases its half year results. According to a note out of Morgans, its analysts are forecasting underlying EBITDA of US$17,371 million and a US$1.26 cents per share interim dividend. Elsewhere, according to CommSec, the market consensus is for a net profit after tax of US$9.8 billion.

Oil prices rise again

Energy producers such as Beach Energy Ltd (ASX: BPT) and Woodside Petroleum Limited (ASX: WPL) could have a good day after oil prices pushed higher again. According to Bloomberg, the WTI crude oil price is up 2.45% to US$95.38 a barrel and the Brent crude oil price has risen 2% to US$96.37 a barrel. Ukraine-Russia tensions are supporting the oil price.

Gold price higher

Those tensions are also supporting the gold price, which bodes well for gold miners Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) on Tuesday. According to CNBC, the spot gold price is up 1.7% to US$1,873.40 an ounce. This means the precious metal is trading near three-month highs.

SEEK half year results

The SEEK Limited (ASX: SEK) share price will also be on watch today when it releases its half year results. According to a note out of Morgans, its analysts are expecting the job listings giant to report revenue of $534 million and EBITDA of $260 million. This is 10% and 13%, respectively, ahead of the market consensus estimate.

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

More reading

• Why are ASX 200 bank shares getting so much love today?
• Here are the top 10 ASX shares today
• These are some of the top performing ASX 200 value shares of the past year
• The week ahead: Russia, Ukraine, inflation, interest rates and unemployment: Scott Phillips on Nine’s Late News
• Strap yourself in: Why ASX 200 shares could continue their wild ride in 2022

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

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If you’re looking to take advantage of recent weakness in the tech sector, then it could be worth taking a look at the two shares listed below.

Here’s what you need to know about these tech shares:

Altium Limited (ASX: ALU)

The first ASX tech share to look at is Altium. It is the printed circuit board (PCB) design software provider behind the popular Altium Designer and cloud-based Altium 365 platforms.

PCBs are found inside almost all electronic devices. So, with the Internet of Things and artificial intelligence markets underpinning an explosion in electronic devices globally (an estimated 127 devices hook up to the internet for the first time every second), demand for Altium’s best in class platform looks set to increase strongly in the future.

Management appears confident this will be the case. In fact, it is aiming to more than double its revenue to US$500 million by 2025.

The team at Bell Potter is positive on Altium’s outlook. This led to the broker upgrading the company’s shares to a buy rating with a $40.00 price target last week.

Its analysts “forecast continued strong revenue growth in the high teen percentages in FY23 and FY24 and >20% EBITDA growth in each of these periods on the back of anticipated further margin expansion.”

VanEck Vectors Video Gaming and eSports ETF (ASX: ESPO)

Another tech option to consider is the VanEck Vectors Video Gaming and eSports ETF. This ETF gives investors access to a portfolio of the largest companies involved in video game development, eSports, and related hardware and software globally.

The fund manager highlights that these companies are in a position to benefit from the increasing popularity of video games and eSports. And when it says popular, it means popular. VanEck estimates that there are 2.7 billion active gamers in the world. This is more than Netflix subscriptions and active Apple devices.

Among the ETF’s major holdings are graphics processing units (GPU) giant Nvidia and games developers Take-Two Interactive (GTA, Red Dead), Electronic Arts (FIFA, Sims, Apex Legends), and Roblox.

The post 2 quality ASX tech shares for investors after the selloff appeared first on The Motley Fool Australia.

More reading

• What are brokers expecting for ASX tech shares this earnings season?
• 3 buy-rated ASX 200 shares with plenty of upside potential
• Why this broker just upgraded Altium (ASX:ALU) shares to a buy rating
• 2 ASX 200 shares that could be top buys for growth
• 2 fantastic ASX growth shares to buy now

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Altium. The Motley Fool Australia has recommended 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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ASX 200 bank shares forged ahead today. The National Australia Bank Ltd (ASX: NAB) share price hiked 1.98% while Macquarie Group Ltd (ASX: MQG) climbed 0.49%.

Meanwhile, Bank of Queensland Ltd (ASX: BOQ) shares gained 1.95% and Australia and New Zealand Banking Group Ltd (ASX: ANZ) closed up 1.37%.

Let’s take a look at why ASX 200 bank shares had such a good Valentines Day?

ASX 200 bank shares rise

While all ASX 200 bank shares finished ahead today, there were two standout performers.

The Westpac Banking Corp (ASX: WBC) share price jumped 4.83% and Bendigo and Adelaide Bank Ltd (ASX: BEN) leapt 4.43%.

Westpac’s share price stormed ahead on news it had bought back 167.5 million of its shares, worth $3.5 billion. A share buyback can improve shareholder returns because the company’s profits are spread across fewer shares.

Meanwhile, the Bendigo and Adelaide Bank share price lifted after it reported a nearly 32% jump in statutory net profit in its half-year results.

For perspective, the S&P/ASX 200 Financials Index (ASX: XFJ) also finished higher today, up 1.54% at market close.

What’s behind the bank share surge today?

Helping ASX 200 bank shares could be news of the major banks raising their home loan rates. ANZ, NAB, and Westpac all upped their fixed home loan rates in the past week, personal finance website savings.com.au reported. Meanwhile, Bank of Queensland has reportedly bumped up its variable rates.

Continuing speculation about measures to curtail rising inflation also could be helping ASX 200 bank shares. As my Foolish colleague Bernd reported last week, central banks, including the US Federal Reserve, are looking to raise rates to keep inflation in check. Analysts also expect the Reserve Bank of Australia could lift its official cash rate.

Rising interest rates tend to help the ASX 200 banks due to larger lending margins. However, on the flip side, higher rates can also depress new lending in mortgage markets.

Investors may also be turning to value shares such as banks, energy, and the utilities sector amid the tech sell-off. As Motley Fool Australia reported last week, ASX value shares have been outperforming growth shares, including technology shares, this year amid potential interest rate hikes.

The post Why are ASX 200 bank shares getting so much love today? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX shares today
• These are some of the top performing ASX 200 value shares of the past year
• The week ahead: Russia, Ukraine, inflation, interest rates and unemployment: Scott Phillips on Nine’s Late News
• Strap yourself in: Why ASX 200 shares could continue their wild ride in 2022
• These 3 ASX 200 shares are topping the volume charts on Monday

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 Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Macquarie Group Limited and Westpac Banking Corporation. 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 Cochlear Limited (ASX: COH) share price will be one to watch next week.

On 22 February, the hearing solutions company is scheduled to release its half year results.

Ahead of the release, let’s take a look to see what the market is expecting from Cochlear.

What should you expect from Cochlear?

The market is expecting a mildly positive half year result from Cochlear next week. According to a note out of Citi, the market consensus estimate is for a net profit of $127.6 million.

This is up marginally on the prior corresponding period when the company reported a net profit of $125.3 million.

However, Citi is expecting Cochlear to outperform the market’s expectations. It is forecasting a first half net profit of $140.9 million, representing growth of 12.5% over the prior corresponding period.

If Cochlear were to achieve Citi’s estimate, it would mean it is on course to deliver on its guidance in FY 2022. At its annual general meeting, management reaffirmed its FY 2022 guidance for underlying net profit growth of between 12% and 20%.

Management advised that this is expected to be underpinned by market growth, with a continuing recovery in surgery rates across many countries more affected by COVID.

What are others saying?

While it hasn’t provided a first half estimate, the team at Goldman Sachs expects a full year result in August ahead of guidance.

It commented: “We forecast $288m NPAT (17.7% margin) in FY22, which remains above COH guidance of $265-285m.”

Though, the broker has warned that while COVID headwinds are easing, “it is possible there is some persistent hesitancy amongst a proportion of its target market in DMs (aged 70+).” Therefore, investors may want to listen out for any commentary on that front.

All in all, the result could be one of the more interesting ones this season.

The post What to expect when Cochlear (ASX:COH) releases its half year results appeared first on The Motley Fool Australia.

More reading

• 2 medical tech ASX shares for turbulent times
• Can the Cochlear (ASX:COH) share price live up to analyst expectations?
• Do this now to be filthy rich later: expert
• 3 buy-rated ASX shares that just hit 52-week lows
• Why is the Cochlear (ASX:COH) share price tumbling 5% on Thursday?

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 Cochlear Ltd. The Motley Fool Australia has recommended Cochlear 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 A2 Milk Company Ltd (ASX: A2M) share price has plenty of potential upside. That’s according to one of the leading brokers in Australia.

Citi has put a price target on the business that implies that A2 Milk shares could rise by around 40% over the next year.

Whilst the company has gone through a lot of volatility over the last couple of years, management and the broker feel that things are now looking more promising.

The latest from A2 Milk

At the company’s annual general meeting (AGM), it acknowledged that FY21 was a disappointing result, with net profit after tax plunging 79.1% to $80.7 million. COVID-19 caused significant disruption and also led to excess inventory. This was partly caused by a reduction of the Chinese birth rate.

The A2 Milk share price has fallen 47% over the last year alone.

However, the company has taken a number of key actions to try to start a recovery.

It ‘recognised’ stock write-downs and deliberately slowed down sales in the fourth quarter of FY21, together with other planned initiatives, to reduce inventory levels and rebalance English label IMF pricing across channels

Another thing that A2 Milk did was swap older distributor inventory with more recent stock to improve on-shelf product freshness.

The infant formula company has increased its marketing to drive customer demand.

A2 Milk has also done some restructuring and hiring, with new talent and a re-focusing on the key business opportunities.

Citi likes the initiatives that the business has worked hard on improving its inventory position and notes the tactics it’s employing to turn things around.

Long-term ambitions

A2 Milk said that it has an ambition to grow sales to over NZ$2 billion and improve margins. This could be quite helpful for the A2 Milk share price.

It wants to regain half of the English label revenue from FY20 to FY21, through a channel recovery after COVID-19 impacts fade and also the execution of its English label strategy to gain market share.

A2 Milk also wants to double its Chinese label market share from 2.5% to 5%.

The ASX share also has plans to grow in other dairy and nutritional products to China through innovation and distribution growth. Other plans include growing in existing markets and two to three new markets as well as growth in milk and adjacent categories.

In terms of the earnings before interest, tax, depreciation and amortisation (EBITDA) margin, it’s targeting a margin “probably in the ‘teens’ in the medium-term due to expected market conditions, investment and innovation.”

Then, in the longer-term, the EBITDA margin is going to possibly be in the “low-to-mid-20s” subject to a higher-than-expected market recovery, English label channel growth and share gains.

A2 Milk share price target

Citi has a price target of $7.30. As already mentioned, that suggests the shares could rise by around 40% over the next year, if the broker ends up being right.

The post The A2 Milk (ASX:A2M) share price has 40% upside – broker appeared first on The Motley Fool Australia.

More reading

• Why opening borders might not be the good news A2 Milk (ASX:A2M) shareholders have been hoping for
• The A2 Milk (ASX:A2M) share price has hit multi-year lows in 2022. Is now the time to catch the cream?
• Why has the A2 Milk (ASX:A2M) share price spilled 5% in a month?
• Can the beaten down A2 Milk (ASX:A2M) share price get back to $10?
• Here are the top 10 ASX shares today

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 recommended A2 Milk. 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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All eyes will be on the Transurban Group (ASX: TCL) share price on Thursday when the company releases its earnings for the first half of financial year 2022.

While there will be plenty to cover in the company’s report, here are some of the key happenings to look out for.

As of Monday’s close, the Transurban share price is $12.83, down 0.7% on the day.

Here’s what could drive the Transurban share price on Thursday

The Transurban share price could be in for a wild ride later this week as it reports on a period that brought many ups and downs.

While the company hasn’t provided guidance for financial year 2022, it stated it plans to pay dividends in line with its free cash, excluding capital releases.

As The Motley Fool Australia reported last month, some brokers think Transurban will start to increase its dividends from financial year 2022 after cutting them with the onset of COVID-19.

Morgans is predicting the company to pay out 35 cents a share this financial year and 55.3 cents in financial year 2023.

For comparison, it handed investors 36.5 cents per share in financial year 2021 and 59 cents in financial year 2019.

What else could be included in the company’s earnings?

Over the six months ended 31 December, Transurban made a transformational acquisition and suffered through significant lockdowns. But that’s not all.

After it flagged ongoing issues with the West Gate Tunnel project in its most recent full-year results, the company announced it had been hit with another $1.7 billion bill from the project in December.

Of course, that could put a dampener on its half-year results.

Additionally, Transurban shareholders may be a little anxious as the company prepares to reveal the full impact of lockdowns caused by Australia’s Delta outbreak.  

It’s previously stated the September quarter saw its traffic volume 12% lower than that of the previous comparable period and 34% lower than that of 2019.

Finally, during the half-year just been, Sydney Transport Partners – 50% owned by Transurban ­– acquired the remaining 49% stake in Sydney’s WestConnex for $11.1 billion.

That will undoubtedly form a talking point in the company’s half-year report.

The post Own Transurban (ASX:TCL) shares? Here’s what to watch when the company reports this week appeared first on The Motley Fool Australia.

More reading

• 2 growing ASX dividend shares analysts rate as buys
• Here’s why Transurban (ASX:TCL) shares could be in for some investor TLC
• Morgans names 4 more of the best ASX shares to buy in February
• Broker names 2 ASX 200 dividend shares to buy in February
• Why has the Transurban (ASX:TCL) share price tumbled 12% so far in 2022?

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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Today, the S&P/ASX 200 Index (ASX: XJO) shook off a feeling of unease amid tensions between Russia and Ukraine. At the end of the session, the benchmark index finished 0.37% higher at 7,243.9 points.

While a majority of the top 200 finished in the negative, a handful of solid performers came to the rescue. The energy sector was the best of the bunch, getting a boost from higher oil prices and a booming half-year result from Beach Energy Ltd (ASX: BPT). A positive showing from banks and gold miners added to the winnings for shareholders today.

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

Top 10 ASX shares countdown today

Looking at the top 200 listed companies, Beach Energy was the biggest gainer today. Shares in the oil and gas company rallied bolted 9.43% higher after it revealed a 66% increase in profits. The solid half was backed up by Beach Energy maintaining its guidance for FY22. Find out more about Beach Energy here.

The next biggest gaining ASX share today was Evolution Mining Ltd (ASX: EVN). The gold mining company’s share price surged 7.9% to the upside amid strength in the precious metal. Uncover the latest Evolution Mining details here.

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

ASX-listed company	Share price	Price change
Beach Energy Ltd (ASX: BPT)	$1.625	9.43%
Evolution Mining Ltd (ASX: EVN)	$3.96	7.90%
Mercury NZ Ltd (ASX: MCY)	$5.55	7.35%
Whitehaven Coal Ltd (ASX: WHC)	$3.16	6.76%
Northern Star Resources Ltd (ASX: NST)	$9.00	5.88%
JB Hi-Fi Ltd (ASX: JBH)	$51.71	5.42%
Westpac Banking Corp (ASX: WBC)	$23.88	4.83%
AGL Energy Ltd (ASX: AGL)	$7.16	4.68%
Bendigo and Adelaide Bank Ltd (ASX: BEN)	$9.67	4.43%
Yancoal Australia Ltd (ASX: YAL)	$3.32	4.40%

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

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

More reading

• The week ahead: Russia, Ukraine, inflation, interest rates and unemployment: Scott Phillips on Nine’s Late News
• Why are ASX 200 gold shares rocketing today?
• These 3 ASX 200 shares are topping the volume charts on Monday
• Power surge! These 2 ASX 200 utilities shares are storming higher today
• Here’s how rich Lynas Rare Earths (ASX:LYC) shares have made ASX 200 investors over the past 2 years

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia owns and has recommended Bendigo and Adelaide Bank Limited. The Motley Fool Australia has recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If 2020 and 2021 were the year of ASX growth shares, then 2022 could well be the year of value shares. That’s certainly shaping up as a viable scenario, judging by the kinds of shares investors have propelled higher and lower over the year so far.

We all know that ASX growth shares like Block Inc CDI (ASX: SQ2), Zip Co Ltd (ASX: Z1P) and Xero Limited (ASX: XRO) have had a rough couple of months. But which ASX value shares have been performing well over the past year or so?

Let’s look at some contenders.

So, perhaps surprisingly for some investors, ASX bank shares have been some of the best value shares over the past year. In particular, National Australia Bank Ltd. (ASX: NAB) and Commonwealth Bank of Australia (ASX: CBA). On today’s pricing, CBA remains up by more than 15.5% over the past 12 months. NAB has fared even better, up around 19.2%. With the latest round of earnings reports out of the way for these banks, investors have voted with their feet and rewarded these two companies for their recent performances.

But it doesn’t end there.

Some of the best performing ASX value shares revealed

Telstra Corporation Ltd (ASX: TLS) is another value share that has continued to reward investors. This ASX 200 telco has bested both NAB and CBA’s performance since February 2021, and has given back a return of 23%. Throw in the dividends, and Telstra has arguably been a pretty fantastic value share to own.

To a lesser extent, so has Woodside Petroleum Limited (ASX: WPL). Woodside shares have appreciated a very pleasing 29.5% or so just over the past six months. However, its 12-month performance isn’t quite as impressive at a solid 8.6%.

But not all value shares have rewarded shareholders. The Transurban Group (ASX: TCL) share price has virtually gone nowhere over the past year. And Woolworths Group Ltd (ASX: WOW) shares have lost around 3% over that same period.

Miners BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) have also been fairly lacklustre compared to some of the companies above. BHP shares are up around 5.9% over the past 12 months, while Rio has managed 1.55%.

All of the shares discussed today are major constituents of the S&P/ASX 200 Value Index. This index fishes value shares out of the entire ASX 200 Index. This is done using three factors: book value compared with share price, price-to-earnings (P/E) ratio and price-to-sales (P/S) ratio. If value shares continue to generate interest from ASX investors in 2022, expect to hear a lot more about those metrics going forward!

The post These are some of the top performing ASX 200 value shares of the past year appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns National Australia Bank Limited and Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and has recommended Block, Inc., Xero, and ZIPCOLTD FPO. The Motley Fool Australia owns and has recommended Telstra Corporation Limited and Xero. 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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