The S&P/ASX 200 Index (ASX: XJO) is having a pretty poor start to the trading week so far this Monday. At the time of writing, the ASX 200 is down by 0.14% at 7,269.4 points after sliding as low as 7,180 points this morning. But one ASX exchange-traded fund (ETF) is making that loss look paltry. That would be the BetaShares Crude Oil Index ETF (ASX: OOO).

OOO units are today down a nasty 5.64% to $5.86 each after closing at $6.25 a unit last Friday. So why such a steep loss for this ASX ETF? Well, to answer that, we first have to examine what kind of investments make up this particular ETF. Like all ETFs, OOO holds underlying securities that make up its fund. But unlike most ETFs, OOO doesn’t actually hold shares.

Instead, this ETF holds futures contracts that are tied to the raw price of crude oil. In this way, it is designed to give investors exposure to the movements in the oil price, hedged to Australian dollars. It holds no shares in any other investment, including those of actual oil companies.

This fund has given investors quite the rise in recent times. As of 31 October, OOO units were up an impressive 131.9% over the past 12 months, including distribution returns. However, OOO has also given investors a negative return of 21.92% per annum on average over the past 3 years up to that date.

So, what’s happened to the BetaShares Crude Oil Index ETF today?

BetaShares Crude Oil Index ETF slips in spilled oil

Well, it’s hard to know with absolute certainty. But it is possible that today’s steep falls are the result of what has happened to the global energy market in the last few days. As my Fool colleague James reported this morning, the global oil market suffered a nasty sell-off on Friday night (our time). As we reported, Friday saw WTI crude oil fall 13.05% to US$68.15 a barrel. And the Brent crude oil price dropped 11.55% to US$72.72 a barrel.

These steep drops are likely a result of the emergence of the Omicron variant, which has spooked investors around the world. Once again, the prospect of more COVID lockdowns, restrictions and shutdowns are looming, it seems.

Since OOO invests in oil futures contracts, the value of said contracts has likely plummeted with these sharp drops in oil pricing. This is the most likely reason why OOO units have dropped more than 5% so far this Monday.

The BetaShares Crude Oil Index ETF charges a management fee of 0.69% per annum.

The post Here’s why the BetaShares Crude Oil Index ETF (ASX:OOO) is sliding 5% today appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Omicron hits Flight Centre, Domino’s jumps
• 5 things to watch on the ASX 200 on Monday
• These were the best performing ASX 200 shares last week
• These were the worst performing ASX 200 shares last week
• Here are the top 10 ASX shares today

Motley Fool contributor Sebastian Bowen 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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Well, if you can believe it, we’re only a few days away from the start of December 2021. Amid the market gyrations that seem to have kicked off this week, it might be a good time to see how some of the ASX’s blue-chip shares typically travel during the silly season. So today, we’re checking out the Wesfarmers Ltd (ASX: WES) share price, and how it has performed in Decembers’ past.

Wesfarmers is one of the oldest blue-chip shares on the S&P/ASX 200 Index (ASX: XJO). It has been around in some form since 1914. Today, it can be called a conglomerate, considering its ownership of such a wide stable of retailing brands. It owns the Bunnings Warehouse chain of course, but also has Target, OfficeWorks, Geeks2U and Kmart. And that’s just its retailing side. Wesfarmers also continues to run its mining, gas and chemical manufacturing divisions, as well as its own clothing line (Workwear).

Last year in 2020, Wesfarmers indeed had a very pleasing Christmas run. It started December last year at roughly $49.45 a share, but by Christmas Eve, it had finished up at $51.10 a share, a rise of 3.34%.

So, do we see this pattern extend to just beyond 2020?

Wesfarmers share price: A Christmas journey

Well, not exactly. Back in late 2019, Wesfarmers shares started December at $42.41 each. But by Christmas Eve 2019, the shares had slipped slightly to $41.79 – a fall of 1.46%.

The prior year in 2018 saw a different outcome again. That year saw Wesfarmers start December at a share price of $31.59 a share… exactly where it ended up on Christmas Eve. So a very flat buildup to Christmas indeed for that year.

Going back to 2017 now (seems like a long time ago these days), and we see a different pattern play out yet again. That year had Wesfarmers begin the silly season at approximately $31.37 a share. By the ‘night before Christmas’, the shares had closed at $31.58. That’s a small gain of 0.67%.

So long story short, there doesn’t seem to be a consistent trading pattern for Wesfarmers shares in the leadup to Christmas. Last year we had a solid gain, the year before a solid loss, then a flat year, preceded by a small gain before that.

Perhaps the lesson we can take here is that no one knows what Wesfarmers shares will do this Christmas. Humans are always good at finding patterns, even when they don’t exist. Wesfarmers’ annual Christmas pilgrimage is a great example.

Wesfarmers is (at the time of writing) trading at a share price of $58.63 a share, up 0.09% for the day so far. At that Wesfarmers share price, this ASX 200 blue chip has a market capitalisation of $66.47 billion, with a dividend yield of 3.04%.

The post How does the Wesfarmers (ASX:WES) share price typically perform in the lead up to Christmas? appeared first on The Motley Fool Australia.

More reading

• This sector could be a $50 trillion investment opportunity: expert
• Wesfarmers (ASX:WES) plans for e-commerce to fuel Bunnings growth
• What is the Wesfarmers (ASX:WES) dividend worth in November?
• ASX retail shares in focus as CBA forecasts bumper Black Friday weekend
• How much is the Wesfarmers (ASX:WES) dividend expected to grow in FY22?

Motley Fool contributor Sebastian Bowen 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 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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In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) has bounced back from a very poor start and is trading only slightly lower. At the time of writing, the benchmark index is down 0.2% to 7,265.8 points.

Four ASX shares that are not letting that hold them back are listed below. Here’s why they are pushing higher:

Domino’s Pizza Enterprises Ltd (ASX: DMP)

The Domino’s share price is up 5% to $131.56. Investors have been buying this pizza chain operator’s shares on Monday despite there being no news out of it. However, the prospect of some European countries locking down because of the Omicron variant of COVID-19 appears to be boosting investor sentiment. Domino’s was a big winner from previous lockdowns.

Healius Ltd (ASX: HLS)

The Healius share price is up 3% to $4.90. This gain appears to have been driven again by news of the new Omicron variant. Healius has been benefiting greatly from elevated demand for COVID testing services. This new variant of concern could underpin strong testing volumes for some time to come.

Kogan.com Ltd (ASX: KGN)

The Kogan share price is up 3.5% to $8.29. Investors may be buying this ecommerce company’s shares on the belief that it could benefit if Omicron forces Australia into another lockdown. In addition, bargain hunters may be swooping in today following another selloff of its shares last week following a disappointing update.

Vulcan Energy Resources Ltd (ASX: VUL)

The Vulcan share price is up 3.5% to $10.59. This morning Vulcan announced that it has signed a binding lithium hydroxide offtake agreement with auto giant Stellantis. It is the world’s fourth largest automaker and the name behind brands including Alfa Romeo, Chrysler, Citroen, Fiat, Jeep, Maserati, and Peugeot. Vulcan will supply Stellantis with a minimum of 81,000 tonnes and a maximum of 99,000 tonnes of battery grade lithium hydroxide over a five-year period from 2026.

The post Why Domino’s, Healius, Kogan, and Vulcan shares are pushing higher appeared first on The Motley Fool Australia.

More reading

• ASX 200 healthcare shares jump amid Omicron fears
• ASX 200 (ASX:XJO) midday update: Omicron hits Flight Centre, Domino’s jumps
• Vulcan (ASX:VUL) share price falls 6% despite auto giant agreement
• These are the 10 most shorted ASX shares
• The Kogan (ASX:KGN) share price just hit another 52-week low, its fourth this week. Can it fall any further?

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 Kogan.com ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Dominos Pizza Enterprises 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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S&P/ASX 200 Index (ASX: XJO) healthcare shares are widely gaining today.

Together, the 12 ASX 200-listed healthcare shares are up an average of 0.6%, with 7 in the green and 5 in the red.

This comes as the broader index is under pressure amid fears the new Omicron COVID-19 variant could derail the global economic recovery and Australia’s own nascent reopening plans. At time of writing the ASX 200 is down 0.4%, having recovered from earlier losses of 1.2%.

Today’s top 3 ASX 200 healthcare share performers

Leading the ASX 200 healthcare shares higher is Ansell Limited (ASX: ANN).

At time of writing, the Ansell share price is up 3.7% to $33.07 per share. Ansell provides health and safety protection solutions. And with the rise of the new Omicron variant, it may be the company’s strong focus on gloves that’s seeing investors hit the buy button.

Coming in at number 2 today, is Healius Ltd (ASX: HLS). The Healius share price is up 2.7% to $4.88 per share. Healius has a large network of pathology laboratories, collection centres, medical centres, day hospitals and imaging sites throughout Australia.

Also well into the green today, and coming in as the third best ASX 200 healthcare share performer, is Sonic Healthcare Limited (ASX: SHL). The Sonic share price is up 2.48% to $42.63 per share. Sonic is a global pathology provider with a significant footprint in diagnostic imaging within Australia.

With investors jittery about emerging COVID variants, all 3 shares are handily outperforming the index today.

What’s the deal with Omicron?

The new COVID variant officially received its Greek designation over the weekend. Last week, it still held the more obscure label of B.1.1.529. But the World Health Organization’s (WHO) decision to label the variant gives some credence to its potential to throw a spanner into the world’s grand reopening and economic recovery plans.

The virus appears to have mutated in South Africa and has already spread into parts of Europe, Asia, and the United States. Two cases have been reported in Australia. The travellers, returning from Africa, tested positive and have been quarantined.

There’s no evidence yet that Omicron is more deadly than Delta, but early research indicates it may be more transmissible.

Australia has joined a growing list of nations to temporarily ban travel from South Africa and neighbouring nations.

While this has seen ASX 200 travel shares hammered over the past 2 trading days, many ASX 200 healthcare shares, like the 3 listed above, have seen increased investor interest.

How have these 3 ASX 200 healthcare shares been performing this year?

The Sonic Healthcare share price has gained more than 29% in 2021.

Healius shares just edge out these gains, up 30% year-to-date.

Ansell has been trending lower since July. Despite today’s bounce, shares in the ASX 200 healthcare company are down 5% this calendar year.

The post ASX 200 healthcare shares jump amid Omicron fears appeared first on The Motley Fool Australia.

More reading

• ASX 200 (ASX:XJO) midday update: Omicron hits Flight Centre, Domino’s jumps
• Why a leading broker is bullish on these 3 ASX shares
• Analysts name 3 ASX shares to buy now
• Top brokers name 3 ASX shares to buy today
• 2 ASX 200 shares that could be top buys for growth

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 Ansell Ltd. and Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The AMP Ltd (ASX: AMP) share price has been the talk of the town in recent years.

It tumbled as allegations of misconduct were hurled at – and admitted to by –the financial services provider during the Financial Services Royal Commission in 2018.

Since its highest close in March 2018, the AMP share price has tumbled 81% to trade at $1.01 at the time of writing.

So, what might AMP have to do to boost its stock into recovery mode? The Motley Fool Australia analyst, Ed Vesely sat down with our chief investment officer, Scott Phillips last month to discuss just that.

The entirety of the pair’s chat can be found here, and evaluations of plenty of other stocks can be found on The Motley Fool Australia’s YouTube channel, here.

Otherwise, readers can find a breakdown of their conversation below.

A quick note before we start: Vesely and Phillips discussed AMP more than a month ago. Some of the specifics may have changed in the time since but the fundamentals remain valid.

The good and the bad of AMP shares

The Motley Fool Australia’s analysts often chat with Phillips about both the good and the bad of a stock.

However, Vesely only had a few positives to note about AMP and its share price.

Firstly, the company’s stock is cheap. Though, that doesn’t mean it’s good value. It’s also a renowned brand with strong historical appeal.

Another thing Vesely likes about AMP is its banking division. The company’s bank provides a significant portion of AMP’s revenue and a large share of its profits.

That’s just about all the company is doing right, according to Vesely, who noted:

I think that tells you how good AMP bank is, but I think it also tells you how poorly the rest of the business has actually performed.

The rest of AMP’s business is made up of its wealth management division, AMP Capital, and its New Zealand business.

The wealth management section – which includes its financial advisory services, platform administration, and managed investment products – was the division that copped the most heat during the Royal Commission.

Now, AMP’s investment management firm, AMP Capital has involved itself in AMP’s current troubles. Vesely stated:

The source of the problem for AMP [is it’s] got the investment management side of things trying to push their products through the investment advisory network, which has been, of course, AMP aligned and AMP focused.

Additionally, it’s not just in recent years that AMP has been underperforming.

Between 1999 and 2017, AMP’s revenue dipped by 33%.

Vesely also stated that since 2018, AMP’s revenue has dropped another 80%.

So, what can AMP do to right its slump?

Still, there might be a way to boost AMP’s shares back into the green. Here’s what Vesely said:

This is a company that financially, operationally, and I suppose from a branding perspective, is really on its knees right now…

He noted that there is potential that AMP’s management team and its relatively new CEO, Alexis George can improve the company’s business. However, Vesely warned:

There’s a very real chance that investment outflows in the business will continue to go in the wrong direction…

He also stated that new competition from advisors like Hub24 Ltd (ASX: HUB) could be dire for AMP: 

[Investors] can use those platforms, they’re independent, they can provide fearless advice and say: ‘this is what we do, we don’t have any products or any managed funds to sell you’, so that’s a good thing and I think that’s becoming more and more attractive, and if the likes of AMP have to compete on price now, and they’ve got all that baggage with the history through the Royal Commission, I think it’s going to be a hard stop for a number of years yet.

Finally, Vesely had some potentially contentious advice for AMP:

I personally think, Scott, and maybe many people won’t agree, I think that the most value that shareholders can get out of the business today would be if management decide to actually sell off each of the segments, including AMP Bank. They should actually return that capital to shareholders and just wind it up… I just think that there’s probably a lot more potential for each of these businesses to be operating under different names.

The opinions expressed in this article were as at 8 October 2021 and may change over time.

The post What is the AMP (ASX:AMP) share price looking like? Motley Fool Analyst Ed Vesely weighs in appeared first on The Motley Fool Australia.

More reading

• AMP (ASX:AMP) share price on watch after revealing $325 million impairment charge
• How is the AMP (ASX:AMP) share price performing against the financial sector in 2021?
• These 3 ASX 200 shares are topping the volume charts on Monday
• ASX 200 (ASX:XJO) midday update: Lithium miners jump, Flight Centre tumbles
• AMP (ASX:AMP) share price lifts as company retains control of office fund

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. Motley Fool contributor Edward Vesely 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 Hub24 Ltd. The Motley Fool Australia has recommended Hub24 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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Shares in Tuas Ltd (ASX: TUA) jumped from the open following a company announcement. The Tuas share price is currently 5.81% higher at $1.64.

Tuas has been catching bids today after announcing its subsidiary, TPG Singapore, has been awarded additional 5G network spectrum by Singaporean authorities.

Why is the Tuas share price charging higher?

Tuas announced that in the recent “quantity stage” of the 2.1 GHz spectrum auction conducted by the Singaporean authorities, TPG Singapore was provisionally awarded 10 MHz of spectrum in the 2.1 GHz band for a price of $31.72 million.

The total spectrum will be awarded in 2 paired lots of 5 MHz. An assignment stage of the auction is yet to occur, per the release. This will determine the position of the lots within the spectrum band.

Moreover, the licence of the 2.1 GHz spectrum is 15 years in duration. Providers require the licence for standalone 5G network use. TPG Singapore “intends to move quickly to commence rolling out 5G equipment to make use of this spectrum.”

Tuas is the 100% owner of TPG Singapore. That’s after the latter was spun off from TGG Telecom Ltd when it merged with Vodafone Hutchison Australia.

The announcement comes amid the Tuas share price climbing 90% in the past 3 months. It reached a 52-week high, before blowing off some froth and settling at its current price.

This upward swing has some experts constructive on Tuas. For instance, portfolio manager at Wilson Asset Management Tobias Yao was recently quoted as saying, “The reason we like TPG Singapore is the fact that we think the value offering is very, very attractive.”

Yao added that Wilson Asset Management expects Tuas to gain market share in Singapore and expand into other parts of Southeast Asia.

Speaking on today’s announcement, Richard Tan, CEO of TPG Singapore, said:

We are delighted that we were able to secure this important 5G band which is well supported by the global device ecosystem. Our customers can look forward to very competitively priced 5G services when we embark on our network upgrade, commencing in the first half of 2022.

Tuas share price snapshot

In the past 12 months, the Tuas share price has gained 140%. It has rallied 118% just this year to date.

Over the past month, Tuas shares are up 12% and have started the week on a positive note.

Tuas shareholders are well ahead of the S&P/ASX 200 Index (ASX: XJO) return of around 10% in the past year.

The post Tuas (ASX:TUA) share price jumps 5% on acquisition news appeared first on The Motley Fool Australia.

More reading

• Experts say Tuas (ASX:TUA) share price is a buy even after its 50% surge

The author Zach Bristow 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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The Fortescue Metals Group Limited (ASX: FMG) share price is currently up around 2%. This is on the day on a high level of ASX share market volatility relating to the Omicron COVID-19 variant.

Despite the volatility, there is some company-specific news about Fortescue today.

Fortescue links up with a digital auction platform

According to reporting by the Australian Financial Review, the large iron ore miner is planning to sell some of its iron ore through the GLX Connect platform, which is a commodity trading service.

This is the same platform that has enabled Pilbara Minerals Ltd (ASX: PLS) to achieve some very high prices for sale of its lithium.

If the deal goes ahead, then Fortescue will also become a shareholder in GLX Digital, the owner of the auction platform. The iron ore miner will initially get less than 1% of the shares, but could get more as it conducts auctions on the platform.

One of the attractions of GLX Connect is that it empowers the seller by allowing it to design and manage its own auction terms. It also allows the seller to “manage counter-party risk by choosing who is invited to participate in auctions.”

The participants in the auction are supposedly attracted to the precise terms, including the volume and delivery schedules.

The AFR reported that access to the platform will cost Fortescue US$100,000 a year for three years, though the deal hasn’t been signed yet.

However, at least to start with, Fortescue is only going to sell a small amount on the platform.

Time will tell whether this has an impact on the Fortescue share price over the longer-term.

A spokesman for the iron ore miner said to the AFR:

Fortescue is exploring the potential to trial new platforms to complement our existing sales and marketing channels. The majority of Fortescue’s products will continue to be sold via existing contractual seaborne arrangements, as well as our portside sales entity FMG Trading Shanghai.

Other initiatives to get a better price

It was also reported that Fortescue is now selling at least six different iron ore products, with one of those being a higher grade offering. When the Iron Bridge project is finished, that is expected to lead to another, higher quality product.

The AFR reported that Fortescue is working at Chinese ports to sell smaller volumes of iron ore to new, smaller customers that may not want to buy the same volume as Chinese steel mills. Some of these deals are being done in Chinese currency, rather than US dollars.

Is the Fortescue share price good value?

Opinions are mixed on the business. One of the latest opinions comes from Credit Suisse, which is ‘neutral’ on the business but the price target is $13.50 – approximately 20% lower than today. The broker is expecting the iron ore price to hit a low in December.

Then there’s Morgan Stanley which rates Fortescue as a sell/underweight with a price target of just $12.50 on concerns of a lower iron ore price and a bigger discount for Fortescue’s lower grade iron.

One of the most positive brokers about the business is Macquarie Group Ltd (ASX: MQG) with a buy/outperform rating and a price target of $21.

The post Could this help Fortescue (ASX:FMG) mitigate the risks of falling iron ore prices? appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• When might Fortescue (ASX:FMG) Future Industries become profitable?
• These were the best performing ASX 200 shares last week
• Is the Fortescue (ASX:FMG) dividend really worth 28% in November?
• Here are the top 10 ASX shares today

Motley Fool contributor Tristan Harrison owns shares of Fortescue Metals Group 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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The PayGroup Ltd (ASX: PYG) share price was well into the green in early morning trade, up 2.2%. It’s since given up those gains and is currently down 2.2%

PayGroup shares may be getting impacted by the wider Omicron variant led market selloff, which is seeing the All Ordinaries Index (ASX: XAO) down 0.6% at time of writing.

Below, we take a look at the Software as a Service (SaaS) company’s half year results for the 6 months ended 30 September (1HFY22).

What half year results were reported?

The PayGroup share price is wobbling despite the company reporting an 83% increase in statutory revenue of $12.8 million.

New contracts signed reached a record $9.6 million, up 78% on the prior corresponding period.

Normalised earnings before interest, taxes, depreciation and amortisation (EBITDA) of $1.5 million, excluding one-off expenses and acquisition costs, slipped from $1.8 million in 1HFY21. PayGroup said that this figure incorporates continued investment in its platform capabilities for future growth.

The company said that it is currently servicing more than 2,500 enterprise customers.

Commenting on the half year results, PayGroup’s managing director Mark Samlal said:

Our strong operational performance and continued investment in our platform underpins our ability to scale the payroll business, expand margins and execute on key monetisation opportunities going forward.

We have made significant progress to date and are excited by the organic opportunities in FY22 and beyond. This is reflected in the growth of our current pipeline, which is 6 times larger than 12 months ago. We are highly confident that we have the right foundations in place and remain focused on delivering on key organic opportunities to drive sustainable long-term growth.

Samlal also reaffirmed the company’s guidance. “We have affirmed FY22 ARR [annual recurring revenue] guidance of at least $37 million and provided FY22 statutory revenue guidance of $26 million, which represents more than 95% of the exit ARR announced at FY21,” he said.

PayGroup share price snapshot

The PayGroup share price has struggled in 2021, down 28%. That compares to 10% year-to-date gain posted by the All Ords.

Over the past month, PayGroup shares are down 16%.

The post PayGroup (ASX:PYG) share price wobbling on half year revenue surge appeared first on The Motley Fool Australia.

More reading

• Leading brokers name 3 ASX shares to buy today
• With the IAG (ASX:IAG) share price trading around decade-lows, is now the time to buy?
• Succession: What’s happening with the search for the next Westpac (ASX:WBC) boss?
• Here’s why this top broker is tipping 40% upside for the AGL (ASX:AGL) share price
• ASX 200 (ASX:XJO) midday update: Omicron hits Flight Centre, Domino’s jumps

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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With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Adairs Ltd (ASX: ADH)

According to a note out of Morgans, its analysts have retained their add rating and lifted their price target on this homewares retailer’s shares to $4.80. The broker notes that Adairs is acquiring Focus on Furniture for $80 million. Morgans is pleased with the purchase and expects it to complement its core business and provide network expansion opportunities. All in all, the broker feels Adairs’ shares are cheap at the current level, particularly given the company’s attractive growth and dividend profile. The Adairs share price is trading at $3.66 today.

Aristocrat Leisure Limited (ASX: ALL)

A note out of UBS reveals that its analysts have retained their buy rating and $53.60 price target on this gaming technology company’s shares. UBS has been looking at Aristocrat’s market position and notes that it is outperforming other gaming machine manufacturers significantly with four of the top five premium cabinets in the market. This bodes well for its future growth. The Aristocrat share price is fetching $44.72 this afternoon.

Siteminder Ltd (ASX: SDR)

Analysts at Ord Minnett have commenced coverage on this hotel commerce platform provider’s shares with a buy rating and $7.36 price target. According to the note, the broker is a fan of the company and its evolution towards offering a range of global solutions to the hotel market. All in all, the broker believes Siteminder is well-placed to deliver strong revenue growth over the coming years. The Siteminder share price is trading at $6.08 on Monday afternoon.

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

More reading

• Top brokers name 3 ASX shares to buy next week
• 2 ASX dividend shares expected to pay BIG income
• Could ASX 200 retail shares deliver some dividend surprises in 2022?
• Why Adairs, EML, Fisher & Paykel Healthcare, and NRW are storming higher
• ASX retail shares in focus as CBA forecasts bumper Black Friday weekend

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 ADAIRS FPO. The Motley Fool Australia owns shares of 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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The Insurance Australia Group Ltd (ASX: IAG) share price is being hammered by investors recently. The insurance giant is navigating its way through challenging market conditions caused by the COVID-19 pandemic.

At midday on Monday, IAG shares are swapping hands for $4.40, a drop of 0.57%. In the past month alone, IAG shares have fallen by nearly 11%, weighed down by negative investor sentiment.

What’s happened with IAG shares?

There are a couple of possible catalysts as to why the IAG share price has failed to produce decent gains over the last 12 months.

In its recent trading update, the company revealed a rise in net natural perils claim costs. It blames severe storm and hail activity experienced in October, mainly across South Australia and Victoria.

As such, the insurer is estimating the net natural perils claim costs for FY22 to be around $1,045 million. This is a significant increase from the previous assumption of $765 million.

Following the $280 million setback, IAG has been forced to downgrade its FY22 insurance margin guidance range between 10% to 12%. Previously, the insurance margin level was in the 13.5% to 15.5% range.

In addition, the Australian Securities and Investments Commission (ASIC) has commenced civil penalty proceedings in the Federal Court of Australia.

The allegations relate to IAG’s failure to pass on the full discount to a large number of NRMA home, motor, caravan and boat insurance customers between March 2014 and September 2019.

It’s worth noting that IAG self-reported the issue to ASIC following a review it conducted in 2019. Since then, IAG has embarked on a remediation program for the affected policyholders. More than 80% of the impacted customers have been provided refunds.

What do the brokers think?

A number of brokers have rated the company with comparable price points since IAG released its business update on 2 August.

Leading Australian investment firm Morgans cut its 12-month IAG share price target by 5% to $5.36. Following suit, Macquarie had a similar stance, reducing its rating by 5.3% to $5.40.

However, Citi had a slightly improved outlook compared to the other brokers, slashing just 2.6% to $5.60.

About the IAG share price

Looking at the last 12 months, the IAG share price is down more than 17%, with year to date hovering 6.38% below. It’s worth noting, however, the company’s shares have lost about 50% of their value since July 2019.

In contrast, the S&P/ASX 200 Index (ASX: XJO) has gained around 10% from this time last year and in 2021. The benchmark index also reached a record high of 7,632.8 points in mid-August.

This shows that the ASX 200 has outperformed IAG shares. The ASX 200 historically tracks about 6% higher each year.

Based on valuation metrics, IAG has a market capitalisation of around $10.89 billion, with approximately 2.47 billion shares on issue.

The post With the IAG (ASX:IAG) share price trading around decade-lows, is now the time to buy? appeared first on The Motley Fool Australia.

More reading

• November hasn’t been a great month so far for the IAG (ASX:IAG) share price
• Is the IAG (ASX:IAG) share price set to outperform? Here’s what Motley Fool Australia analyst Drew Flowers says
• Why is the IAG (ASX:IAG) share price rising for the first time in 7 days?
• Could the IAG (ASX:IAG) share price be heading even lower?
• Here’s why the IAG (ASX:IAG) share price is down 16% in a month

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 owns shares of and has recommended Insurance Australia 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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