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.

Ethereum (CRYPTO: ETH) went live in 2015, becoming the world’s first cryptocurrency powered by a programmable blockchain. In simple terms, that means the platform is more than a decentralized payments system.

Ethereum’s programmability makes it possible for developers to write code and build self-executing computer programs (smart contracts) on the platform. And those smart contracts form the core of decentralized applications (dApps), including decentralized finance (DeFi) products.

Why does that matter? Like all crypto transactions, DeFi products are secured by cryptography, meaning a network of decentralized miners (or validators) verify transactions, eliminating the need for central oversight. In turn, that makes it possible to lend, borrow, and earn on cryptocurrency without involving banks. And by eliminating those intermediaries, DeFi applications promise to improve access and reduce costs associated with financial services.

For instance, you could earn a 3.06% annual percentage yield (APY) by lending USD Coin to the Compound protocol right now. That’s significantly higher than the interest rate you would earn in a traditional savings account. Powered by that value proposition, Ethereum’s price has skyrocketed over 1,000,000% since hitting an all-time low in October 2015.

Today, Ethereum is the most popular DeFi ecosystem by a wide margin, with $164 billion invested in products on the blockchain. To that end, it still looks like a smart long-term investment, but given Ethereum’s current market value of $491 billion, it probably offers less upside than other cryptocurrencies. For instance, Avalanche (CRYPTO: AVAX) has a market value of just $22 billion. Here’s why this cryptocurrency could make you richer in the long run.

Avalanche: Faster and cheaper

Similar to Ethereum, the Avalanche blockchain supports smart contracts. The key difference is the speed and scalability of the platform. Avalanche is powered by Snow consensus protocols, a type of proof of stake in which transactions are verified through random sampling, rather than by obtaining verification from every validator.

That technical detail makes Avalanche very fast. In fact, Avalanche brands itself as the fastest smart-contract platform in the blockchain industry, as measured by time to finality. For context, Ethereum can process 14 transactions per second (TPS), and each of those transactions are finalized in approximately six minutes (i.e. irreversibly added to the blockchain). But Avalanche can handle 4,500 TPS and it achieves finality in less than two seconds.

So what? Scalability is a significant problem for many blockchains. With a throughput of just 14 TPS, Ethereum is prone to bottlenecks, which result in slower transaction times and higher transaction fees, not to mention irritated users. Avalanche solves that problem, and that has made the platform popular with developers.

Case in point: Despite launching in September 2020, Avalanche is already the fifth-largest DeFi ecosystem, with $13.1 billion invested in products on its blockchain. Also noteworthy, Avalanche already supports 78 DeFi protocols (i.e. smart contracts) — that’s more than fourth-place Solana and third-place Terra combined. Looking ahead, Avalanche is well-positioned to maintain that momentum, simply because DeFi is becoming more popular. But there’s still one more point worth discussing.

Developers can build smart contracts on the Avalanche blockchain using Solidity, the same programming language used to build smart contracts on Ethereum. That compatibility means Ethereum dApps and DeFi products can be deployed on Avalanche, which happens to offer faster speeds and lower fees. In fact, deploying a smart contract on Avalanche costs 90% less than it does on Ethereum. To that end, Avalanche has been called the “Ethereum killer.”

The bull case

DeFi products aren’t free. In exchange for their services, miners and validators collect transaction fees from users, paid in the form of the blockchain’s native cryptocurrency. In other words, as DeFi applications on the Avalanche blockchain become more popular, more investors will have to buy Avalanche cryptocurrency, sending its price higher. 

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

The post Missed out on Ethereum? Here’s a possible alternative appeared first on The Motley Fool Australia.

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Trevor Jennewine has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Ethereum. 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.

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

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While Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH) still remain the largest and the most popular cryptocurrencies by far, there is one challenger rising worth recognising.

According to DeVere Group chief executive Nigel Green, Solana (CRYPTO: SOL) is “likely” to outperform both of its big brothers next year.

“I’m confident that a key one to watch in 2022 is Solana, currently the fifth largest crypto by market cap,” he said.

“It started off the year trading at around US$2, now it’s changing hands on the deVere Crypto app for about US$200.”

If you had bought $1,000 of Solana on January 1, you’d now be sitting on about $130,000.

But Green reckons it’s not done yet.

“2022 will be Solana’s breakout year.”

Solana is actually used for a real purpose

Green attributed Solana’s instant popularity to its “masterful technology and its cost-effectiveness”.

Like Ethereum, Solana’s blockchain network implements smart contracts.

“Solana is a blockchain platform that has superior high transaction speeds, processing over 2,500 transactions per second — main rival Ether’s is 15 — and at a lower cost and without compromising decentralisation,” he said.

“This revolutionary tech will ultimately change the way almost all business and financial services are delivered in the future.”

A “growing number” of decentralised finance (defi) apps are shifting from Ether to Solana, according to Green.

“They’re also attracted by the considerably cheaper fees compared to Ether, whose prices have exploded in recent months.”

It has its issues, for sure

It hasn’t all been smooth-sailing this year for Solana though.

Back in September, the network went offline for about 17 hours. The Solana Status social media account at the time explained that the system crashed trying to process 400,000 transactions per second.

According to Green, such incidents are merely growing pains and that it doesn’t impact the long-term outlook.

While Green declined to nominate a price target, back in October he predicted Solana would reach US$250 ($355) by the end of this year. It was trading around $270 on Tuesday.

“In-the-know investors are watching it with interest,” he said.

“There’s no reason why it shouldn’t again outperform headline grabbers Bitcoin and Ethereum next year if the current momentum continues.”

The post This crypto will outperform both Bitcoin and Ethereum in 2022: expert appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo owns shares of Bitcoin, Ethereum, and Solana. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns and recommends Bitcoin and Ethereum. 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 Sky Network Television Limited (ASX: SKT) is flying higher, up 12.13% to $1.895 per share.

Below we take a look at the New Zealand satellite pay-TV provider’s guidance update for the 2022 financial year (FY22) that looks to be driving ASX investor interest.

What guidance update was provided for FY22?

The Sky Network share price is heading skywards after the company raised its guidance for FY22. The midpoint guidance for earnings before interest, taxes, depreciation and amortisation (EBITDA) improved by 27% while net profit after tax (NPAT) was raised by 96%.

The improved guidance comes following what Sky labelled a “rigorous cost review and consideration” by its Board.

The review saw operating cost estimates slashed by $35 million, with $9 million of one-off savings and $26 million in recurring savings.

With costs revised down, Sky Network increased its EBITDA guidance from $115–130 million up to $150–160 million. It raised NPAT guidance from the previously announced $17.5­–27.5 million up to $40–48 million.

The Sky Network share price could also be getting a lift from the company’s bullish longer-term outlook, with Sky targeting additional recurring savings in FY23 “and beyond” via other transformative initiatives.

The company said that the sale of its Mt Wellington properties was not included in the guidance. While this is progressing, the terms have yet to be finalised.

Commenting on the revised guidance, Sky Network’s CEO Sophie Moloney said:

Our firm strategic focus is on growing revenues and reducing operating costs, particularly against the background of the step-up in rights costs to secure the sports and entertainment content that matters to our customers. We’ve sought to uncover opportunities that are starting to reset Sky’s cost base, leveraging the learnings from operating in a Covid-impacted environment as well as challenging the way we operate our business across every area of spend.

Sky Network share price snapshot

The Sky Network share price is up 22% since this time last year, outpacing the 10% gains posted by the All Ordinaries Index (ASX: XAO) during that same period.

Over the past month, Sky Network’s shares have gained 5%.

The post Sky Network (ASX:SKT) share price soars 12% on guidance upgrade appeared first on The Motley Fool Australia.

More reading

• Here’s why the Recce (ASX:RCE) share price is rocketing 12% today
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• Why Ethereum, Dogecoin, and Solana Fell This Morning
• What’s going on with the Bapcor (ASX:BAP) share price and is it a buy?

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 Recce Pharmaceuticals Ltd (ASX: RCE) share price is soaring today. This comes after the pharmaceutical company provided an update on its clinical trial for the treatment of burn wound infections.

At the time of writing, the Recce share price is up 12.21% to 96.5 cents. In comparison, the All Ordinaries (ASX: XAO) is up 0.51% to 7,567.7 points.

What did Recce announce?

The Recce share price is surging after the company reported positive results for its broad-spectrum antibiotic Recce 327 drug.

The phase I/II study assessed the safety and efficacy of Recce 327 against infectious bacteria on burn wounds in patients.

As such, investigators reviewed the findings and noted a visible infection reduction within the first 24 hours of treatment. Patients with acute infected wounds completely recovered, requiring no further treatment. Investigators adopted a shorter five-day treatment protocol for these patients.

Those who had more severe surface area wounds were given a seven-day timeframe, resulting in a similar outcome.

Initially, the trial had been scheduled to run over the 14 days. Two cohorts of patients would either receive Recce 327 daily or three times per week.

Recce advised that the study is ongoing, with further patient enrolment expected by early 2022.

Once the trial is completed, clinicians will review the results and decide upon the best standards of care for future programs. In addition, burn wound specialists will oversee the delivery of Recce 327 via a spray-on formulation.

The trial is being sponsored by the Western Australian government’s Department of Health. It is taking place at the Fiona Stanley Hospital (Burns Unit) in Perth.

Commenting on the results fuelling the Recce share price today, CEO James Graham said:

We are pleased with the progress of our lead compound, R327, in patients harbouring serious burn wound infections. This initial update builds upon strong pre-clinical data demonstrating fast and efficient killing activity against common and problematic bacterial strains, and we are excited for the potential of R327 in the clinic. We look forward to updating shareholders of further human clinical data points as this trial progresses.

Recce share price summary

Despite today’s euphoric rise, the Recce share price has had a disappointing 12 months, falling by around 20%. When looking at year-to-date, it is hovering around 9% lower.

Based on today’s price, Recce presides a market capitalisation of roughly $149.45 million, with approximately 173.79 million shares on issue.

The post Here’s why the Recce (ASX:RCE) share price is rocketing 12% today appeared first on The Motley Fool Australia.

More reading

• Zip (ASX:Z1P) share price jumps 9% after hitting $10 billion milestone in November
• Why is the Metcash (ASX:MTS) share price smashing Coles this year?
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Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. 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 Zip Co Ltd (ASX: Z1P) share price has been a very strong performer on Tuesday.

In morning trade, the buy now pay later (BNPL) provider’s shares are up

Why is the Zip share price rocketing higher?

The catalyst for the rise in the Zip share price today has been the release of an update on its performance in November.

As you might have guessed from the Zip share price performance, the company’s strong growth continued last month.

According to the release, Zip delivered record monthly transaction volume of $906.5 million during November. This represents an increase of 52% or $310.5 million over the prior corresponding period.

Based on November’s performance, the company’s transaction volume is now annualising at over $10 billion.

What were the drivers of this growth?

The release explains that this result was driven by an 86% lift in transaction numbers to a record of 7.5 million and a 71% jump in customer numbers to 9.2 million.

In respect to its customer numbers, this comprises 5.5 million is the USA (up 92%), 2.9 million in the ANZ region (up 27%), 0.2 million in the UK (up 564%), and 0.6 million in Expansion markets. The latter will soon include the Singapore market, where Zip has signed an exclusive agreement with Singtel to support its launch and leverage the Singtel Dash App.

Zip’s Managing Director and Global CEO, Larry Diamond, commented: “November was a very strong month for the Company, and shows the tremendous growth achieved since this time last year with many markets processing BNPL payments for the first time – the Company is now processing annualised volume of more than $10b. Zip now has one of the largest BNPL footprints geographically with the aim of servicing its global merchants and partners in a simple and easy format.”

Zip share price underperformance

Mr Diamond also addressed the underperformance of the Zip share price this year. As I highlighted here, the company’s shares were down 22% year to date to a 52-week low on Monday.

The CEO commented: “Management and the Board would also like to acknowledge the significant volatility in equity markets, the impact to technology and fintech valuations and is taking this very seriously. We enter CY 2022 with strong momentum, in a solid financial position, with continued focus on execution, unit economics and global synergies.”

“We have bolstered the global executive team to better handle both regional and functional execution, and remain driven as ever to achieve the best long term outcomes for our customers, merchants and shareholders. A significant portion of the management team and the employees’ assets and remuneration is tied to the share price, and feels these gyrations alongside our loyal investor base,” he added.

The post Zip (ASX:Z1P) share price jumps 9% after hitting $10 billion milestone in November appeared first on The Motley Fool Australia.

More reading

• Why did ASX BNPL shares get hammered today?
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• ASX 200 (ASX:XJO) midday update: Metcash jumps, Kogan and Zip sink
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of 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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The Metcash Limited (ASX: MTS) share price has substantially outperformed Coles Group Ltd (ASX: COL) in 2021.

In the calendar year to date, Metcash has gone up 26% whilst Coles has actually declined almost 3%.

Despite being a much smaller business, Metcash is more diversified. It has three different pillars: food, liquor and hardware.

In food, it’s the largest supplier to independent supermarkets in Australia, namely IGA and Foodland.

Metcash is the second largest player in the liquor market, it supplies around 90% of independent liquor stores in Australia including Cellarbrations, The Bottle-O, IGA Liquor, Duncans and Thirsty Camel.

With its hardware division, it’s the second largest player in the Australian hardware market. Its hardware network now has more than 700 stores across the brands Mitre 10, Home Timber & Hardware and recently Total Tools.

Direction of sales and profit

Investors often like to look at the most recent performance of a business to indicate where the share price could, or should, be trading. The Coles share price and Metcash share price may be influenced by what the respective businesses have most recently announced.

Coles said in its FY22 first quarter that its total sales were up 1.5% year on year, with supermarket sales up 1.8%.

In the first four weeks of the Coles second quarter, supermarket comparable sales were “broadly in-line”, Express volumes were being impacted but expected to make a recovery in the second half as mobility increases.

Looking at Metcash, it just reported its FY22 first half, where overall revenue was up 1.3%. Excluding the loss of 7-Eleven, food sales were down just 0.2%. Liquor sales were up 6.6% and hardware sales were up 17.9%.

Hardware is the profit driver of the business at the moment. Hardware earnings before interest and tax (EBIT) jumped 53.3%, or $34.4 million, to $98.9 million. Metcash’s underlying EBIT increased 13.9% to $231.2 million, so hardware played a significant role in growing profit.

Continuing growth for Metcash

Whilst Coles mentioned in its update that sales were broadly flat in October, Metcash is seeing continuing “strong sales” growth.

In the first five weeks of its FY22, total food sales were up 2.3%, liquor sales were up 7.6% and hardware sales were up 20.1%.

Investors may be factoring in that elevated level of growth into their thoughts about the Metcash share price.

Are Metcash shares good value?

The analysts at Macquarie Group Ltd (ASX: MQG) think that Metcash is a buy, with a price target of $4.70 after seeing the half-year result and how strongly the hardware division performed.

Macquarie notes the ongoing initiatives that Metcash is doing, including investing in e-commerce. But inflation and COVID-19 effects on the supply chain could be problematic.

Based on Macquarie’s projections, the Metcash share price is valued at 15x FY22’s estimated earnings with a grossed-up dividend yield of 6.5% for FY22.

The post Why is the Metcash (ASX:MTS) share price smashing Coles this year? 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 shares of and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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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.

What happened?

Prices for Ethereum (CRYPTO: ETH), Dogecoin (CRYPTO: DOGE), and Solana (CRYPTO: SOL) were all tumbling Monday morning, following in the wake of Bitcoin‘s (CRYPTO: BTC) shift downward late last week. 

As of 11:08 a.m. ET, Ethereum was off by 2.8%, Dogecoin had lost 14.3%, and Solana had fallen 13.7%.

So what?

The cryptocurrency market has been in a freefall since Friday when Bitcoin’s price fell by more than 20%. As of this writing, Bitcoin was changing hands at $48,928, down 28.5% from the all-time high of $68,493 it hit just last month. That’s a fairly massive drop. 

Cryptocurrency investors may be concerned that the Federal Reserve is considering tightening its monetary policy in light of rising inflation. On top of that, both the Omicron variant and the ongoing Delta surge are boosting uncertainty about how long it will be before life will get back to something more like the pre-pandemic normal. 

Traders have generally been fleeing the tech sector as well as they look for safer places to put their money. 

There’s still a fair amount of economic uncertainty right now that may be fueling investor concerns. On Friday, the U.S. reported lower job growth than expected, and over the weekend Goldman Sachs cut its 2022 U.S. gross domestic product growth forecast from 4.2% down to 3.8%. 

The prices of other cryptocurrencies often follow the movements of Bitcoin — when the leading token tumbles, others typically follow suit. That appears to be happening Monday with the prices of Ethereum, Dogecoin, and Solana falling. 

With Monday’s drop, Ethereum, Dogecoin, and Solana are down 7.8%, 33.4%, and 27.5% over the past three months, respectively. 

Now what?

By 2 p.m., Ethereum had bounced back and was up about 1% over the past 24 hours, Solana was near break-even, and Dogecoin was up about 2.9%. The coins were rising again as Bitcoin’s price rose by about 0.6%. 

Cryptocurrencies are prone to volatility and the initial price drop of these coins, and subsequent rise in the afternoon, is a perfect example of that. 

Long-term investors should understand that the cryptocurrency market could experience more volatility, but it doesn’t mean that these coins are a bad investment. It just means that it may be a bumpy ride on the way to bigger gains.

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

The post Why Ethereum, Dogecoin, and Solana Fell This Morning appeared first on The Motley Fool Australia.

More reading

• Crypto investors missing millions after 2 Aussie exchanges collapse
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• Crypto market crash: The latest on Solana, Cardano, Ripple, and Terra
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• You could’ve made $1 million investing less than $1,500 in these 3 cryptocurrencies

Chris Neiger has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Bitcoin and Ethereum. The Motley Fool has a disclosure policy.

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

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The Bapcor Ltd (ASX: BAP) share price is heading in the right direction at last on Tuesday.

In morning trade, the auto parts retailer’s shares are up 5% to $6.74.

Though, despite today’s solid gain, the Bapcor share price is still down 18% since this time last month.

What’s going on with the Bapcor share price?

Investors have been selling down the Bapcor share price in recent weeks following the announcement of the retirement of its long serving Managing Director and CEO, Darryl Abotomey.

Late last month the company announced that Mr Abotomey would be leaving at the end of February but remain available until the end of June to assist with an orderly transition.

But since the release of that announcement, there was “a marked deterioration in the relationship between the Board and the CEO, such that Mr Abotomey’s position as MD and CEO has become untenable.”

This led to the Bapcor Board electing to bring forward his retirement end date as CEO and director of Bapcor immediately. The company will now look for “a more contemporary leadership and management approach to drive the Company’s growth while also ensuring consistent with changing stakeholders’ expectations.”

The reaction

The Motley Fool’s Analyst, Ryan Newman, has weighed in on recent developments and the company’s future.

He commented: “I would suggest that Darryl Abotomey did a great job of growing the business, from its IPO until now. One thing I have been concerned about, and could be reflected in the “changing stakeholders’ expectations”, is the company’s lack of focus on the changing car parc, in relation to the eventual shift towards electric vehicles.”

Newman notes that the “shift has been slow in Australia, but simply must happen.”  And while it shouldn’t impact the business in the short term, these “strategic shifts absolutely take time.”

In light of this, Newman hopes that an electric vehicle focus will be something that will be “addressed by new management.”

Is this a buying opportunity?

The team at Credit Suisse believe the recent weakness in the Bapcor share price is a buying opportunity. This morning the broker retained its outperform rating, albeit with a trimmed price target of $7.90.

Based on the current Bapcor share price, this implies potential upside of 17% for investors over the next 12 months.

Although Credit Suisse acknowledges that CEO exit has caused significant disruption, it appears confident the company can overcome this and continue its growth.

The post What’s going on with the Bapcor (ASX:BAP) share price and is it a buy? appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Bapcor. 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 Qantas Airways Ltd (ASX: QAN) share price is lifting in early trade, up 4.42% to $5.20 per share at the time of writing.

That will come as welcome news to shareholders who’ve watched shares drop 14.9% over the past month as at this morning’s opening.

The Qantas share price came under renewed pressure from high jet fuel costs, a sluggish reopening of Australia’s state and international borders, and the emergence of the Omicron COVID variant out of South Africa seeing some travel restrictions reinstated.

While the airline remains bullish about the global reopening and the return of international passengers, it’s also turning its attention to the growing demand for air freight.

The growth in Aussie e-commerce, a trend kicked into high gear by the pandemic, shows little sign of reversing. And people ordering their holiday gifts online expect to see them delivered rapidly.

What are the airline’s freight plans?

Qantas is planning to convert 2 of its Airbus 330 planes to carry freight rather than people, with completion expected in 2023.

As 9 News reports, 1 of the planes will be used to deliver parcels for Australia Post while the other will deliver contents internationally.

With the Christmas crunch already here, Qantas will bring a third freight aircraft online this week for Australia Post to deliver gifts around the country.

According to Qantas CEO Alan Joyce (as quoted by 9News):

People are now used to and they expect that when they order something online, it’s there within a day or two. Qantas is getting itself ready for that demand… By Christmas, three Qantas A321 freighters will be in operation for Australia Post…

The converted A330 aircraft for Australia Post will be able to carry around 50 tonnes of cargo each flight, more than double the capacity of other freighters operating for the national postal service.

Once the 2 converted aircraft join the fleet, Qantas will operate 25 dedicated cargo planes.

Qantas share price snapshot

The Qantas share price is down 7% over the past full year. That compares to a 12 month gain of 9% posted by the S&P/ASX 200 Index (ASX: XJO).

Since the 20 March 2020 pandemic lows, Qantas shares have soared 117%.

The post Qantas (ASX:QAN) share price lifts as airline expands freight capacity 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 James Hardie Industries Plc (ASX: JHX) finished the day in the green on Monday and nudged past their record high to close at $56.39. Meanwhile, the James Hardie share price has started Tuesday’s trading session in the green and is currently up 0.14%.

James Hardie has been on the upward trajectory these past 2 months, with shares bouncing off a low of $47.91 in mid-October. Let’s take a closer look.

Why’s James Hardie trading at all time highs?

Whilst it’s been relatively quiet out of the fibre cement manufacturer’s camp lately, it hasn’t stopped investors queuing up to secure a spot in the company.

Although, the S&P/ASX 200 Materials Index (XMJ) has also bounced off its previous lows in November with authority.

As we walked through the month, the index finished up more than 8% in the green, indicating strengths in the broad sector.

Aside from this, James Hardie is a quality company that has a “really long term growth trajectory and that it’ll do just fine regardless of what bond yields do in the short term”, according to Sage Capital.

The firm reckons that James Hardie covers its bases due to positioning in the fibre cement industry, whilst it continuously adds market penetration.

Part of its strong positioning in the industry is due to its intellectual property that is used in manufacturing fibre cement, Sage says.

Add in its exposure to the US – which is far more expansive than the Australian residential construction market – and there is a recipe for success, the firm believes.

The team at the Macquarie also liked James Hardie’s recent first half results, which it called a robust set of numbers.

It noted the company’s “raised guidance is a positive, particularly set against clear growth investment in [operating expenditure] opex and additional plans to add capacity to the network (including the EU)”.

Meanwhile fellow brokers Morgan Stanley, Jefferies and RBC Capital Markets are each bullish on the shares too.

Each firm values James Hardie at $62, $70 and $64 respectively, implying an average upside potential of around 16% at the time of writing.  

Investors appear to be feeling the same way. For instance, volume of trading on the company’s shares was 103% of its 4-week average volume yesterday.

James Hardie share price snapshot

In the last 12 months, the James Hardie share price has climbed 50% after rallying a further 48% this year to date.

In the past month, James Hardie is up 3% and its shares have climbed 3% in the past week as well.

These results are well ahead of the benchmark S&P/ASX 200 Index (ASX: XJO)’s return of around 10% in that time.

The post Why is the James Hardie (ASX:JHX) share price trading at all time highs? appeared first on The Motley Fool Australia.

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The author has no positions 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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