Once again, a large number of broker notes hit the wires last week. Some of these notes were positive and some were bearish.

Three sell ratings that investors might want to hear about are summarised below. Here’s why top brokers think investors ought to sell these shares next week:

A2 Milk Company Ltd (ASX: A2M)

According to a note out of Macquarie, its analysts have retained their underperform rating and cut their price target on this infant formula company’s shares to $5.20. Macquarie made the move following the release of the company’s investor update. Its analysts highlight that A2 Milk’s medium term outlook is very weak. It also notes that there is still significant risk and uncertainty with management’s growth targets. The A2 Milk share price ended the week at $6.25.

Coles Group Ltd (ASX: COL)

Analysts at UBS have retained their sell rating and $16.50 price target on this supermarket giant’s shares. This follows the release of the supermarket operator’s first quarter sales update. Although Coles delivered a better than expected update, it isn’t enough for a change of rating. UBS believes the outlook for food retailing in Australia is deteriorating. The Coles share price was fetching $17.14 at Friday’s close.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Goldman Sachs reveals that its analysts have retained their sell rating and cut their price target on this mining giant’s shares to $11.00. Goldman was disappointed with Fortescue’s performance during the first quarter. Not only did the miner fall short of the broker’s shipments estimates, its price realisation and product mix were well under its expectations. In light of this and its belief that its shares are still overvalued, Goldman isn’t in a rush to change its rating. The Fortescue share price ended the week at $13.93. Though, it is worth noting that not everyone is bearish. See here for a bullish view.

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

More reading

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• Brokers rate these 2 ASX dividend shares as top buys today
• Is the Fortescue (ASX:FMG) share price a buying opportunity?
• Fortescue (ASX:FMG) share price wobbles as crackdown hits iron ore prices
• Leading broker tips Fortescue (ASX:FMG) share price to sink to $11

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 owns shares of and has recommended COLESGROUP DEF SET. 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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By now, most ASX investors would know that the S&P/ASX 200 Index (ASX: XJO) has enjoyed a pretty successful year in 2021 so far. The ASX 200 is now up roughly 9.6% year to date (as of Friday’s market close). But what might be a little more surprising for most investors is how much better the Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has performed over the year.

Year to date, ANZ shares are up a very robust 23.96%. That’s more than double the broader market.

So what’s behind this surprising outperformance?

Well, to understand that, let’s go back to last year. 2020 was a shocking year for ANZ shares. This ASX bank ended up going backwards over the calendar year by approximately 11.8%. In stark contrast, the ASX 200 ended up losing just 1.45% in 2020.

Last year also saw ANZ slash its cherished dividend payments. This ASX bank ended up only paying out 60 cents per share in dividends over 2020, a massive drop from the $1.60 it shelled out in 2019.

So it’s not hard to see why investors shunned ANZ shares in 2020.

ANZ share price rises after dividends restored?

This year has seen ANZ’s dividend bona fides restored somewhat. In July, ANZ paid out its interim dividend for 2021, which came to 70 cents per share, fully franked. That’s more than what ANZ paid out over all of the previous year. Just this week, ANZ also announced its upcoming final dividend will be worth 72 cents per share (also fully franked). That’s getting pretty close to its 2019 levels.

Since ANZ underperformed the ASX 200 by such a large margin in 2020, it’s perhaps not too surprising to see it bounce back stronger in 2021 so far, especially with such an enthusiastic return to paying out healthy dividends.

But one final thing to note. While ANZ’s performance has smashed the market, it’s actually pretty poor for an ASX bank share. In contrast to ANZ’s year-to-date performance, Commonwealth Bank of Australia (ASX: CBA) has appreciated by 27.5% over the same period. National Australia Bank Ltd (ASX: NAB) shares have gained 27% gain, while Westpac Banking Corp (ASX: WBC) takes the major bank cake with gains of 32.5% in 2021 so far.

Sorry to rain on your parade with that, ANZ shareholders!

At ANZ’s last share price, this ASX bank has a dividend yield of 3.73%.

The post The ANZ share price is up 24% so far in 2021. Here’s why appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Leading broker says ANZ (ASX:ANZ) share price is a buy
• 5 things to watch on the ASX 200 on Friday
• ASX 200 (ASX:XJO) midday update: ANZ result impresses, Fortescue higher
• ANZ (ASX:ANZ) share price higher after beating expectations in FY21

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank 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 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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Last week saw a number of broker notes hitting the wires once again. Three buy ratings that investors might want to be aware of are summarised below.

Here’s why brokers think investors ought to buy them next week:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

According to a note out of Morgans, its analysts have retained their add rating but trimmed their price target on this banking giant’s shares to $31.00. This follows the release of a stronger than expected full year profit in FY 2021. And while the broker was disappointed with a contraction in ANZ’s home loan lending during the second half, it isn’t enough to dampen its overall positive view. Morgans believes ANZ is well placed to benefit from structural tailwinds in Institutional banking. The ANZ share price ended the week at $28.14.

Fortescue Metals Group Limited (ASX: FMG)

A note out of Citi reveals that its analysts have retained their buy rating and $18.50 price target on this mining giant’s shares. This follows the release of the company’s quarterly update last week. Citi was pleased with the update and notes that Fortescue’s production and costs were in line with expectations and its guidance is unchanged. The Fortescue share price was fetching $13.93 at Friday’s close.

PointsBet Holdings Ltd (ASX: PBH)

Analysts at Bell Potter have retained their buy rating but trimmed their price target on this sports betting company’s shares to $12.50. According to the note, the broker thought PointsBet’s quarterly update was solid. It notes that the company delivered strong double digit percentage growth in each of its key metrics. However, the broker concedes that the loss of market share in the US took the shine off the update. Its analysts believe this was driven by competitors significantly increasing their marketing spend ahead of the commencement of the NFL season. Nevertheless, Bell Potter remains positive on the company’s long term outlook and has held firm with its buy rating. The PointsBet share price ended the week at $8.25.

The post Top brokers name 3 ASX shares to buy next week appeared first on The Motley Fool Australia.

More reading

• Is the Fortescue (ASX:FMG) share price a buying opportunity?
• These were the worst performing ASX 200 shares last week
• Fortescue (ASX:FMG) share price wobbles as crackdown hits iron ore prices
• Leading broker says ANZ (ASX:ANZ) share price is a buy
• Brokers name 3 ASX shares to buy 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 shares of and has recommended Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings 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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When it comes to choosing ASX dividend shares for income, investors are spoilt for choice. Almost every share in the ASX 200 pays a dividend, after all. As such, sometimes it can be helpful to hear the opinions of some expert investors on this most important of matters.

So, here are 2 ASX dividend shares rated as ‘buys’ today by ASX brokers.

2 ASX dividend shares brokers rate as buys

Coles Group Ltd (ASX: COL)

Since its spin off from Wesfarmers Ltd (ASX: WES) a few years ago, Coles has amassed a reputation as a strong dividend-paying share. Coles managed to grow its dividend payouts over 2020 – a rare feat on the ASX 200 considering the impact of the COVID-19 pandemic. In 2021, Coles has kept the growth train on the tracks, giving investors 61 cents per share (fully franked, of course) worth of dividends, a nice increase on 2020’s 57.5 cents.

One broker who is bullish on coles is Morgans. As my Fool colleague James covered last week, Morgans currently rates Coles shares as an add, with a 12-month share price target of $19.80. That implies a future potential upside of roughly 15% on recent pricing.

Morgans likes Coles’ valuation relative to its arch-rival Woolworths Group Ltd (ASX: WOW), as well as its strong dividend payouts. At recent Coles share pricing, this gives the company a dividend yield of 3.55%.

Telstra Corporation Ltd (ASX: TLS)

Telstra is another ASX dividend share to check out today. Like Coles, Telstra already has a strong reputation as an ASX dividend heavyweight. Although some investors still might not have forgiven this telco for its infamous dividend cut back in 2017, Telstra has managed to keep its payouts very steady since then.

It paid out 16 cents in dividends over 2020 and 2021, and looks set to continue this pattern next year. Though the Telstra share price has rallied by close to 30% in 2021 so far, these raw dividend payouts still give Telstra shares a yield of 4.19% on recent pricing.

Investment bank Goldman Sachs is exceptionally bullish on Telstra shares. Goldman currently rates Telstra as a buy, with a 12-month share price target of $4.40. That implies a future potential upside of ~15% on recent pricing. Goldman likes what Telstra’s recent acquisition of the Pacific-based telco Digicel will do for its returns, with relatively low risk.

It also reckons Telstra will continue to reward shareholders with healthy dividends as well as potential share buybacks.

The post Brokers rate these 2 ASX dividend shares as top buys today appeared first on The Motley Fool Australia.

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Motley Fool contributor Sebastian Bowen owns shares of Telstra Corporation 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 owns shares of and has recommended COLESGROUP DEF SET and Telstra Corporation 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 Vanguard MSCI Index International Shares ETF (ASX: VGS) might be one of the leading ways to passively invest on the ASX.

If readers haven’t heard of this one before, it’s an exchange-traded fund (ETF) provided by Vanguard – one of the world’s leading asset managers. Vanguard aims to make its investment products as cheap as possible.

This particular ETF is providing exposure to the global share market from the developed world.

Here are three reasons to consider this investment:

Diversification

Having an investment that is diversified means that investment poses less risks to investors when it comes to geographic, industry or specific business risk.

This ETF has characteristics that may tick those boxes nicely.

Geographically, it’s invested in many countries. Whilst the US makes up around 69% of the portfolio, these other places make up at least 0.3% of the portfolio as well: Japan, the UK, Canada, France, Switzerland, Germany, the Netherlands, Sweden, Hong Kong, Denmark, Spain, Italy, Singapore, Finland and Belgium.

Looking at the sector allocation, there is a healthy mix between industries, with IT getting the biggest weighting at 22.9% of the portfolio. Arguably, IT may offer the most growth for investors over time. Other sectors with a position of at least 5% includes: financials, health care, consumer discretionary, industrials, communication services and consumer staples.

In terms of the specific company risk, the Vanguard MSCI Index International Shares ETF has a total of just over 1,500 holdings, give it three times as many holdings as iShares S&P 500 ETF (ASX: IVV) and five times as many holdings as Vanguard Australian Shares Index ETF (ASX: VAS).

Portfolio is regularly changing

There has been a global share market for many decades, but the names in the biggest 100 positions have regularly changed over that time. Some businesses can fall by the wayside, so it can be useful to update a portfolio as the years go by.

However, an ETF like this one periodically and systematically changes its positions so that it matches the global benchmark index.

There is a much lower risk that this ETF will become outdated, because the newer and growing businesses are taking the places of the ones losing ground.

Now there are names at the top like Apple, Microsoft, Apple, Amazon.com, Facebook, Tesla, Nvidia and Visa. The list of the biggest names used to be names like Exxon Mobil, General Electric, Walmart and Intel.

Cheap management fee

A key factor for how much an investment portfolio can grow over time is how much is lost to fees, expenses and taxes. The less that is subtracted from the portfolio value, the more that it can be compounded over time.

Vanguard MSCI Index International Shares ETF has an annual management fee of just 0.18% per annum.

It’s this low fee that has helped the ETF deliver an average net return per annum of 15.3% over the last five years. However, past performance is not a reliable indicator of future performance.

The post Here’s why Vanguard MSCI Index International Shares ETF (ASX:VGS) could be a top passive investment idea 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. owns shares of and has recommended Vanguard MSCI Index International Shares ETF. The Motley Fool Australia has recommended Vanguard MSCI Index International Shares ETF and iShares Trust – iShares Core S&P 500 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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The weekend can be a good time to evaluate quality ASX shares when there isn’t all the ‘noise’ of the daily market action.

Some businesses are growing at an attractive rate and this could lead to satisfying compounding results over time.

Here are two that might be contenders:

ELMO Software Ltd (ASX: ELO)

ELMO is one of the globally, fast-growing software businesses on the ASX. It provides a number of different modules relating to HR, payroll and people.

The company is reporting double digit growth each quarter. In the first quarter of FY22, annual recurring revenue (ARR) grew 61% to $88.5 million, with organic ARR growth of 35%. Actual revenue increased 52% to $20.7 million for the quarter and cash receipts grew 78% to $27.7 million.

Whilst ELMO’s core mid-market software continues to grow well and it’s returning to pre-COVID growth, the small business market product from the acquired Breathe UK business is also growing well. Breathe saw growth of 55% year on year.

During the last quarter, the ELMO mid-market solution was launched into the UK and Breathe was launched into Australia. The ASX share has three pillars to its expansion strategy: segment expansion, module expansion and geographic expansion.

ELMO says that it has strong momentum entering the second quarter with a positive macroeconomic backdrop and with small and medium businesses adopting cloud-based solutions to manage a flexible workforce.

In FY22, the business is expecting ARR to end at $105 million to $111 million, revenue to grow to between $90.5 million to $95.5 million and earnings before interest, tax, depreciation and amortisation (EBITDA) of between $1 million to $6 million.

Audinate Group Ltd (ASX: AD8)

Audinate is a business that is trying to improve the AV sector with its Dante audio over IP networking solution which it says is the world leader and used extensively in the professional live sound, commercial installation, broadcast, public address and recording industries. It replaces analogue cables with a single ethernet cable.

The ASX share recently gave a trading update for the first quarter of FY22, which showed a record amount of revenue. The revenue generated was US$7.6 million, an increase of 46.1% year on year. This record was achieved during a period when factory closures in both Malaysia and China limited further revenue growth.

Audinate is benefiting from record demand, with the backlog of orders for chips, cards and modules amounting to US$14.8 million at the end of the quarter.

Management explained that this growth from a pre-COVID backlog levels of around US$2.5 million reflects original equipment manufacturer (OEM) customers placing orders further into the future and strong underlying growth in demand.

However, the component shortage is expected to impact the second half of FY21. It’s panning to bring forward the next generation Booklyn product by the fourth quarter of FY22, with customers expected to be able to incorporate it into their products with little or no re-design. It will use a next generation chip which is not dependent on the capacity constrained chip foundry from its supplier.

The ASX share is focusing on accelerating its product transitions to platforms with improved supply outlook and alternative part availability.

It’s still expecting FY22 US dollar revenue growth, though not in the pre-COVID historical range.

The post 2 quality ASX shares to research this weekend 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. owns shares of and has recommended AUDINATEGL FPO and Elmo Software. The Motley Fool Australia owns shares of and has recommended AUDINATEGL FPO and Elmo Software. 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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Compelling ASX dividend shares might be worth looking at during November 2021.

Interest rates are still expected to stay low for years, which could make the investment income from these businesses attractive to think about.

Not every business that pays a dividend has a history of consistency, but these two do:

Washington H. Soul Pattinson and Co. Ltd (ASX: SOL)

Soul Patts is the ASX dividend share with the longest dividend growth record on the ASX. The investment conglomerate has increased its dividend every year since 2000.

It has a diversified portfolio, which helps it lower exposure risk to any particular industry or investment. Some of sectors that it’s invested in includes telecommunications, building products, resources, property, agriculture, financial services and listed investment companies (LICs).

In terms of actual businesses it is invested in, they include: TPG Telecom Ltd (ASX: TPG), Brickworks Limited (ASX: BKW), Ampcontrol, Pengana Capital Group Ltd (ASX: PCG), Pengana International Equities Ltd (ASX: PIA), Bki Investment Co Ltd (ASX: BKI) and Round Oak.

The business receives investment income each year from its portfolio. This allows Soul Patts to pay out that steadily-growing dividend whilst re-investing for more opportunities.

After the recent merger with Milton, there are a number of areas that the ASX dividend share is looking for more opportunities: global shares, health and ageing, the energy transition, agriculture, financial services and education. The Milton merger will give it more than $2 billion of additional liquidity as well as additional debt capacity at a low cost.

At the current Soul Patts share price, it has a grossed-up dividend yield of 2.7%

Charter Hall Long WALE REIT (ASX: CLW)

This is one of the larger real estate investment trusts (REITs) on the ASX with a market capitalisation of around $3 billion according to the ASX.

It owns a portfolio of different properties across different sectors. The one thing that all the properties have in common is that the REIT aims to have a long rental tenancy with them.

Some of the sectors it’s invested in includes social infrastructure, office, industrial, diversified long weighted average lease expiry (WALE), convenience retail, hospitality and agri-logistics.

After its latest transaction, this business is expected to have a WALE of 12.6 years with a weighted average rent review (WARR) of 2.9%.

It has many high-quality tenants including Endeavour Group Ltd (ASX: EDV), various federal and state government entities, Telstra Corporation Ltd (ASX: TLS), BP, Inghams Group Ltd (ASX: ING), Coles Group Ltd (ASX: COL), David Jones and Metcash Limited (ASX: MTS).

The ASX dividend share’s property portfolio has an occupancy rate of 98.4%. Combined with the long WALE, this business has a high level of income visibility.

It aims to pay investors a distribution payout ratio of 100%, which results in a relatively high yield.

At the moment, Charter Hall Long WALE REIT is rated as a buy by the broker Morgan Stanley, with a price target of $5.51.

Based on Morgan Stanley’s projections, the REIT will pay a yield of 6.3% for FY22.

The post 2 ASX dividend shares that could be buys in November 2021 appeared first on The Motley Fool Australia.

More reading

• Why has the Soul Patts (ASX:SOL) share price tumbled 16% in a month?
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• Can the Brickworks (ASX:BKW) share price hit $30 by Christmas?
• 2 ASX dividend shares with large yields and consistent payouts
• Own Brickworks (ASX:BKW) shares? Here’s what you’re invested in

Motley Fool contributor Tristan Harrison owns shares of Pengana International Equities Limited and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Brickworks. The Motley Fool Australia owns shares of and has recommended Brickworks, COLESGROUP DEF SET, Telstra Corporation Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended TPG Telecom 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 tech sector is home to a number of companies growing at a quick rate.

Three that have been standout performers recently are listed below. Here’s why they could be in the buy zone:

Adore Beauty Group Limited (ASX: ABY)

The first tech share to consider is Australia’s leading online beauty retailer – Adore Beauty. It has been growing at a strong rate in recent years thanks to the strength of its brand and the shift online. Pleasingly, after delivering a 48% increase in revenue to $179.3 million in FY 2021, the company has started the new financial year in a positive fashion. Earlier this month, Adore Beauty reported first quarter revenue of $63.8 million, up 25% on the prior corresponding period. Even if you annualise this, it is still only a fraction of the Australian beauty and personal care (BPC) market, which is estimated to be worth $11.2 billion. This gives it a long runway for growth over the next decade.

UBS is a fan of the company. It recently reaffirmed its buy rating and $6.00 price target.

NEXTDC Ltd (ASX: NXT)

Another tech share to look at is NEXTDC. It is one of the Asia-Pacific region’s leading data centre operators. NEXTDC has been growing at a consistently strong rate for years thanks to the structural shift to the cloud. This has led to increasing demand for capacity in its growing network of world class data centres across Australia. FY 2022 will be no exception, with management guiding to full year EBITDA growth of 19% to 22%.

Citi currently has a buy rating and $15.40 price target on the company’s shares.

Xero Limited (ASX: XRO)

A final ASX tech share to consider is Xero. As with the others, this leading provider of a cloud-based business and accounting solution to small and medium sized businesses has been growing at a strong rate in recent years. Gone are the days of spreadsheets and notebooks, accounting is moving rapidly to the cloud and Xero is reaping the rewards thanks to its high quality platform. In addition to its core offering, Xero has an app store offering countless third party apps that make running a business easier. Xero clips the ticket on purchases through the app store, much like Apple does with its own store for iOS devices.

Goldman Sachs believes the app store could be a key driver of growth in the future, along with its ongoing global expansion. In light of this, it is very bullish and has a buy rating and $165.00 price target on its shares.

The post 3 explosive ASX tech shares to buy in November appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• The Xero (ASX:XRO) share price is holding up ASX tech shares today
• Top brokers name 3 ASX shares to buy next week
• 3 reasons why the Adore Beauty (ASX:ABY) share price could be a buy
• 2 ASX shares that could be strong buys

Motley Fool contributor James Mickleboro owns shares of NEXTDC Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool Australia has recommended Adore Beauty 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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Exchange-traded funds (ETFs) can be a great and easy way of increasing an ASX share portfolio’s diversification. Whilst there are many top companies on the ASX boards, the reality is that the world of investing is far more than just Australian companies. So with that in mind, here are 2 ASX ETFs that offer the opportunity for quality diversification for any ASX share portfolio today.

2 ASX ETFs for a diversified ASX share portfolio today

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

This ETF from VanEck holds a concentrated portfolio of US shares that are picked by Morningstar for the quality of their ‘moat’. A moat is a concept first defined by the great Warren Buffett. It speaks to a company’s intrinsic competitive advantage. If a company possesses a significant and permanent competitive advantage over its competitors, it acts as a ‘moat’ around a castle, preventing enemies from plundering it.

At the present time, this ETF holds such companies as Google-owner Alphabet Inc (NASDAQ: GOOG)(NASDAQ: GOOGL), Kellogg Company (NYSE: K), Microsoft Corporation (NASDAQ: MSFT) and Salesforce.com Inc (NYSE: CRM). Not the sort of companies available on the ASX.

This strategy of picking these ‘wide-moat companies’ seems to be working well for this ETF recently. Since its inception in 2015, MOAT has returned an average performance of 20.48% per annum. It charges a management fee of 0.49% per annum.

BetaShares Nasdaq 100 ETF (ASX: NDQ)

Another ETF to look at today is this offering from provider BetaShares. NDQ tracks the world-famous Nasdaq 100 Index over in the United States. The Nasdaq tends to house the newer, ‘cooler’ companies on the ASX.

Amongst its largest holdings, you will find the tech giants like Apple Inc (NASDAQ: AAPL), Microsoft, Alphabet and Facebook Inc (NASDAQ: FB). You’ll also get shares like PayPal Holdings Inc (NASDAQ: PYPL), Adobe Inc (NASDAQ: ADBE) and Netflix Inc (NASDAQ: NFLX).

Again, the ASX 200 is very lightweight when it comes to these kinds of technology leaders. As such, this ETF could help fill that gap in an ASX-dominated share portfolio quite nicely. It’s also got some healthy performance history to back it up. Since its ASX inception in 2015, NDQ has averaged a return of 22.41% per annum. It charges a management fee of 0.48% per annum.

The post 2 ETFs worth considering for a diversified ASX share portfolio today appeared first on The Motley Fool Australia.

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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Motley Fool contributor Sebastian Bowen owns shares of Alphabet (A shares), Facebook, Kellogg, and VanEck Vectors Morningstar Wide Moat ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended Alphabet (A shares), Alphabet (C shares), Apple, BETANASDAQ ETF UNITS, Facebook, Microsoft, Netflix, PayPal Holdings, and Salesforce.com. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adobe Inc. and has recommended the following options: long January 2022 $75 calls on PayPal Holdings, long March 2023 $120 calls on Apple, and short March 2023 $130 calls on Apple. The Motley Fool Australia owns shares of and has recommended BETANASDAQ ETF UNITS. The Motley Fool Australia has recommended Adobe Inc., Alphabet (A shares), Alphabet (C shares), Apple, Facebook, Netflix, PayPal Holdings, Salesforce.com, and VanEck Vectors Morningstar Wide Moat 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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Might the Fortescue Metals Group Limited (ASX: FMG) share price be worth considering after falling by 44% in three months.

The iron ore mining giant recently revealed its FY22 first quarter to the market which included a number of updates.

After looking at those updates, brokers then had their say on the Fortescue share price.

Iron ore operations

Fortescue revealed that its first quarter iron ore shipments of 45.6 million tonnes (mt) were 3% higher than the first quarter of FY21, which was a record for a first quarter.

The business experienced average revenue of US$118 per dry metric tonne (dmt), representing a revenue realisation of 73% of the average Platts 62% CFR Index and contractual realisation of 77%.

Looking at the costs, the C1 cost was US$15.25 per wet metric tonne (wmt), which was in line with the previous quarter. However, it was 20% higher year on year due to a higher exchange rate, cost growth (including diesel and labour rates), integration of the new mining hub at Eliwana and mine plan driven cost escalation.

Its guidance for FY22 shipments, C1 cost and capital expenditure remained unchanged. As a reminder, the iron ore shipments are guided to be between 180mt to 185mt, C1 cost guidance is between US$15 per wmt to US$15.50 per wmt and capital expenditure is expected to be between US$2.8 billion to US$3.2 billion.

The Iron Bridge project is scheduled for first production for December 2022. The forecast capital investment is unchanged at US$3.3 billion to US$3.5 billion, with Fortescue’s share being between US$2.5 billion to US$2.7 billion.

Fortescue Future Industries (FFI)

The green arm of Fortescue is getting a lot of the headlines and attention at the moment. It has a goal of taking a global leadership position in the renewable energy and green products industry and has a vision to make green hydrogen the most globally traded seaborne commodity in the world. At the moment, brokers like Ord Minnett do not attach any value of FFI to the Fortescue share price.

It is a key enabler of Fortescue’s decarbonisation strategy, including Fortescue’s recently announced target of achieving net zero scope 3 emissions by 2040. To reduce scope 3 emissions, FFI’s plan is to develop projects and technologies that reduce emissions during the process of iron and steel making, and work with current and prospective customers to use technology and supply green hydrogen and ammonia from FFI.

FFI also announced the construction of a global green energy manufacturing centre in Gladstone, Queensland. The first stage development is an electrolyser factory with an initial capacity of two gigawatts.

Fortescue Future Industries also made a partnership with Incitec Pivot Ltd (ASX: IPL) to conduct a feasibility study to convert the Gibson Island ammonia production facility in Queensland to run on green, renewable hydrogen.

Finally, it acquired a 60% equity interest in the Dutch-based High-yield Energy Technologies (HyET) Group.

Broker opinions on the Fortescue share price

There are some polar opposite opinions on Fortescue.

For example, Morgan Stanley thinks Fortescue is still a sell/’underweight’ despite the decline. The price target is $12.50. A core part of that estimate relates to the broker’s thoughts that Fortescue’s iron ore could be discounted compared to higher grade ore. The broker puts the Fortescue share price at 9x FY23’s estimated earnings.

Meanwhile, there’s a broker like Ord Minnett that has a price target of $22 on Fortescue, with a belief that China is going to recover from the current problems it’s having. Based on this broker’s projections, the Fortescue share price is valued at 8x FY23’s estimated earnings.

The post Is the Fortescue (ASX:FMG) share price a buying opportunity? appeared first on The Motley Fool Australia.

More reading

• Fortescue (ASX:FMG) share price wobbles as crackdown hits iron ore prices
• Leading broker tips Fortescue (ASX:FMG) share price to sink to $11
• ASX 200 (ASX:XJO) midday update: ANZ result impresses, Fortescue higher
• Fortescue (ASX:FMG) share price rises on record Q1 shipments
• Is green hydrogen the future for Fortescue (ASX:FMG) shareholders?

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 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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