The fund manager Wilson Asset Management (WAM) has told investors about two ASX shares that it has in its portfolio.

WAM operates several listed investment companies (LICs). Some, like WAM Leaders Ltd (ASX: WLE), focus on larger companies.

There’s also one called WAM Capital Limited (ASX: WAM) which targets “the most compelling undervalued growth opportunities in the Australian market.”

The WAM Capital portfolio has delivered an investment return of 16.7% per annum since inception in August 1999, before fees, expenses and taxes. This gross return outperformed the S&P/ASX All Ordinaries Accumulation Index return of 8.8% per annum over the same timeframe.

These are the two ASX shares that WAM Capital outlined in its most recent monthly update:

Carsales.Com Ltd (ASX: CAR)

Carsales owns and operates the biggest online automotive classified business in Australia. If someone wants to buy a vehicle, then there’s a good chance they may use a Carsales digital offering to research or find it. The website reportedly has a monthly unique audience of 4.35 million. There are 29.5 million monthly sessions by users.

Readers may have heard of carsales.com.au, but it also has a similar website for bikes, boats, construction vehicles, caravan camping sales, trucks, tyres and farm machinery.

The ASX share is increasingly becoming a global player in the auto world. It operates leading auto websites in countries with sizeable populations such as South Korea, Brazil, Chile, Mexico and Argentina.

WAM noted that Carsales’ FY21 result showed a 10% increase in adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) to $254 million. Carsales also achieved the highest annual growth in net profit after tax (NPAT) in seven years. Adjusted net profit rose 11% to $153 million and reported net profit grew 9% to $131 million.

The fund manager said that car buyers and sellers in Australia, South Korea and Brazil used its sites at record levels as the COVID-19 pandemic accelerated the shift to buying and selling cars online.

The classifieds business also announced the 49% acquisition of Trader Interactive, a US-based marketplace business that has a leading position in the recreational vehicle, powersports, commercial truck and equipment markets. This acquisition was founded through a combination of debt and a $600 million fully underwritten pro-rata accelerated renounceable entitlement offer.

City Chic Collective Ltd (ASX: CCX)

City Chic was the other ASX share that WAM named in its portfolio. This business is a global retailer that sells plus-size clothes, footwear and accessories for women. It has a store network in Australia and New Zealand, whilst also selling a large amount of products online.

WAM pointed out that it achieved “strong” sales and customer growth in FY21. Sales increased 33%, customers rose 61% and customer website traffic grew 68% year on year.

The fund manager stated that this result reflected the company’s expanded online product offering and the acquisition of local UK leader Evans, which gave it entry into the UK plus-size market.

The ASX share’s diversified global footprint has minimised the impact of lockdown enforced store closures in Australia, with 44% of sales recorded outside of Australia and New Zealand, according to WAM.

In the fund manager’s eyes, City Chic is well positioned to expand its market share and benefit from the strength of the Australian and global consumer.

The post Wilson Asset Management (WAM) thinks these 2 top ASX shares are a buy 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 has recommended carsales.com 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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Ask A Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In this edition, Tribeca Investment Partners Alpha Plus portfolio manager Jun Bei Liu unveils 2 best ASX shares to buy now and why she regrets selling Xero.

Hottest ASX shares

MF: What are the 2 best stock buys right now?

JBL: oOh!Media Ltd (ASX: OML) is one. This is a little bit smaller and speculative. 

I think it’s attractive because, yes, their share price had a bit of a rally post-result but, again, this is another reopening play that you would put into your portfolio. Outdoor advertising has been hit very, very hard. Especially for OML, they have big exposure to the airports. The billboards in the airports. And that has been very challenging for them, but now the company has very strong balance sheets and what we have seen is that the advertising has picked up significantly across TV, across radio, across pretty much every medium aside from outdoor.

Our view is that outdoor being a premium asset in the media, traditional media category, it will return in a sharp way. We actually have seen that, when domestic travel picked up before the latest lockdown. We saw those numbers pick up significantly. Yeah, to us, this company will rip as soon as all the travelling, even domestic travel, starts opening up. Its earnings are well placed to grow very strongly.

Another great thing is that the outdoor market has gone through quite a significant consolidation. OML now is the largest player in that space and it’s trading at the cheapest, compared to its global peers. Just on that basis, we really think that it’s not going to remain that cheap for long.

MF: And the second pick?

JBL: Let’s go Ramsay Health Care Limited (ASX: RHC). 

Ramsay is one that, again, I’m picking companies that have a reopening trait to them. Simply because their earnings will grow better than other companies that didn’t get impacted. Ramsay, obviously private hospitals, and elective surgery at the moment is being suspended — it’s having an earnings impact. However, remember, this is infrastructure-like, private hospital assets.

It used to trade at such a big premium to the market, at a premium to the other healthcare businesses. Now it trades just over 20 times [forward P/E ratio]. The rest of the healthcare sector trades at over 40. 

And this is a business, structurally, things are looking better, not looking at the pandemic. Simply because if you look at the private health insurance membership, it started growing for the first time in decades. People are becoming more health-conscious because of the pandemic, so that should generally flow through to a very healthy chain of private hospital growth every year.

At the same time, private hospitals have gone through an efficiency program, trying to take out costs. So when revenue does return, we will see nice top-line growth and nice margin expansion in the next 12 to 18 months.

MF: I didn’t realise private health take-up has increased this year. That’s a reversal of the long-term trend.

JBL: Yeah. It’s reversed. And they’ve been sustainably higher — every month we’ve seen very positive growth coming through. That’s very positive for the industry. 

Remember the old days when they were positive. They used to put on 5% to 7% [premium increases] per year, and then the private hospitals put up their prices 7% a year. It’s very healthy for that whole ecosystem.

The ASX share for a comfortable night’s sleep

MF: If the market closed tomorrow for 5 years, which stock would you want to hold?

JBL: Easy. Ramsay would be sitting in there. I think even CSL Limited (ASX: CSL) would be sitting in that case, as well, but CSL’s expensive. Ramsay would be, absolutely. 

Hospitals have still got to run no matter what happens. The pandemic is the only [event] that actually hurt the private hospitals. Otherwise, hospitals would be running year in, year out.

Looking back

MF: Is there a move that you regret from the past? For example, a missed opportunity or buying a stock at the wrong timing or price.

JBL: It happens all the time. I think I have a selective memory. I just normally blank them out. 

When Xero Limited (ASX: XRO) was sold off in March, we bought. We stepped up and we bought a lot of Xero in March. I think it went to like $90-something dollars, and then it rallied back to like $130. 

At $130, $140, I was like, “Nah, we’re done. I need to take profit and put into other things”.

And, of course, the share price keeps moving. I do regret, for a high quality company, I do regret not holding onto it. 

But you know what? I probably put into something that will equally outperform meaningfully.

This is always the hardest thing for investors, knowing when to sell — because your behavioural biases come in. 

The post 2 ASX shares that won’t stay cheap: fund manager appeared first on The Motley Fool Australia.

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• Is the CSL (ASX:CSL) share price too expensive right now?
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Motley Fool contributor Tony Yoo owns shares of CSL Ltd. and Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. and Xero. The Motley Fool Australia owns shares of and has recommended Xero. The Motley Fool Australia has recommended Ramsay Health Care Limited and oOh!Media Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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The Fortescue Metals Group Limited (ASX: FMG) share price has flipped from high ascender to swift decliner in mere months. Unfortunately for shareholders, more steel production curbs are being imposed in China. This continues to weigh on the weakening price per tonne of iron ore.

The iron ore producer’s shares closed on Tuesday at $18.08. This means the Fortescue Metals share price has shaved off 31.25% over the past 7 weeks.

Let’s take a look at what is impacting the company.

What’s weighing on the Fortescue Metals share price?

Policies stronger than steel

What was once booming is now bending back down at the peril of China’s production curbs. Iron ore prices fell another 4.5% yesterday to a 10 month low of US$123.84 a tonne. It seems investors are growing increasingly anxious over the drastic plunge in the commodity’s price.

Since July, the iron ore price has been in free fall, tumbling 46% from record highs of US$230 a tonne to today’s current price.

Certainly, the heat on iron ore producers is only getting hotter. According to reports, China’s steel-producing province Yunnan has instructed steel mills to ensure crude steel output decreases in 2021. Meanwhile, government documentation noted that part of September’s planned production would be delayed to November and December.

The steel mills of Yunnan province are responsible for approximately 2.3% of China’s total crude steel production.

On top of this, investors are remaining wary of the looming potential increase in global supply. Brazilian iron ore miner, Vale, recently shared its production forecasts at a conference with analysts. Vale expects to produce 370 million tonnes in 2022, increasing from the 343 million tonnes this year.

If supply was to increase out of pace with demand, this could potentially weaken iron ore prices further, likely dampening the Fortescue Metals share price.

Analysts revise outlook

The not-so-optimistic road ahead has led some analysts to step down their price targets for iron ore. For example, analysts from Westpac Banking Corp (ASX: WBC) have recently shifted year-end forecasts from US$175 per tonne to US$125.

Similarly, Commonwealth Bank of Australia (ASX: CBA) mining and energy economist Vivek Dhar foresees further woes. The economist is forecasting the iron ore price to fall to US$100 by the fourth quarter of 2022.

If these estimates eventuated the Fortescue Metals share price could also be under pressure in the near and medium-term.

The post The Fortescue (ASX:FMG) share price is down 31% in 7 weeks. What’s next? appeared first on The Motley Fool Australia.

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• How have these ASX 200 iron ore shares performed since reporting results?
• Fortescue (ASX:FMG) share price struggles amid new production curbs in China
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Mitchell Lawler owns shares of Commonwealth Bank of Australia. 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 savings accounts and term deposits offering very low interest rates, the share market arguably remains the best place to earn a passive income.

But which ASX dividend shares should you consider buying? Two that are rated highly are listed below. Here’s what you need to know:

Charter Hall Social Infrastructure REIT (ASX: CQE)

The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT. It is a real estate investment trust focused on social infrastructure properties. These include properties such as childcare centres and government sites.

Charter Hall Social Infrastructure REIT was on form in FY 2021. It reported a 103% increase in statutory profit to $174.1 million thanks to a strong operating performance and further increases in its property valuations.

This allowed the company to increase its distribution to 19.71 cents per share. This comprises a distribution of 15.7 cents and a special distribution of 4 cents.

Looking ahead, management has provided guidance for a distribution of 16.7 cents per share, which represents a 6.4% increase year on year. Based on the current Charter Hall Social Infrastructure REIT share price of $3.72, this will mean a yield of 4.5% for investors.

Goldman Sachs is very positive on the company. It has a buy rating and $3.81 price target on its shares. It notes the company has the balance sheet capacity to make significant acquisitions, which are not included in its guidance.

Westpac Banking Corp (ASX: WBC)

Another ASX dividend share to consider is Westpac. Thanks to Australia’s solid economic recovery from the pandemic, a thriving housing market, and its material cost reduction plans, Westpac’s outlook has been improving greatly.

All in all, this has analysts forecasting solid dividend growth from Australia’s oldest bank in the coming years.

For example, the team at Citi has pencilled in dividends per share of $1.16 in FY 2021 and then $1.30 in FY 2022. Based on the current Westpac share price of $25.72, this will mean fully franked yields of 4.5% and 5%, respectively.

The broker also sees decent upside for its shares. Citi currently has a buy rating and $30.00 price target on Westpac’s shares at present.

The post 2 high quality ASX dividend shares to buy appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro owns shares of Westpac Banking Corporation. 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 BHP Group Ltd (ASX: BHP) share price has been among the worst performers on the S&P/ASX 200 Index (ASX: XJO) over the last month.

During this time the mining giant’s shares have lost 20% of their value.

Is the weakness in the BHP share price a buying opportunity?

The good news for investors looking for options in the resources sector is that the team at Macquarie Group Ltd (ASX: MQG) believe the BHP share price is in the buy zone after this decline.

According to a note out of the investment bank this week, its analysts have retained their outperform rating and lifted their price target on the company’s shares to $55.00.

Based on the latest BHP share price of $41.73, this price target implies potential upside of 32% over the next 12 months before dividends.

And if you include the $3.60 per share fully franked dividend that Macquarie expects BHP to pay in FY 2022, this potential return increases to ~41%.

What did the broker say?

Macquarie’s most recent note focuses on the Jansen potash project, which has just been formally approved by management.

The broker believes this is just the start of a much larger commitment to the potash market. Which is a positive in Macquarie’s eyes. This is due to its positive view on the outlook for potash demand and pricing over the medium term.

Outside this, the broker has recently upgraded its oil and gas forecasts on the belief that prices will be supported by a longer than expected economic cycle.

And while its analysts acknowledge that BHP is merging its oil and gas operations with Woodside Petroleum Limited (ASX: WPL), it remains relevant as shareholders will own a slice of the new entity.

Overall, the broker doesn’t appear concerned by the recent pullback in iron ore prices and continues to forecast strong free cash flow and dividends in the coming years.

For this reason, it believes the BHP share price is good value at the current level.

The post The BHP (ASX:BHP) share price is worth $55 according to Macquarie appeared first on The Motley Fool Australia.

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• September is not being kind to the BHP (ASX:BHP) share price

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 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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Pilbara Minerals Ltd (ASX: PLS) may need to watch out, there are plans for another lithium share to hit the ASX called Green Technology Metals.

Pilbara is one of the biggest lithium miners on the ASX with a market capitalisation of $6.45 billion. It has been an extraordinary 12 months for the company – it has risen by just over 600%.

It isn’t the only one. Another of the other major lithium miners is Orocobre Limited (ASX: ORE), which has gone up 257% in the last year. Orocobre now has a market capitalisation of $5.86 billion.

But there are other, smaller players wanting to cash in on the huge rush for lithium and lithium companies.

Last week my colleague Brooke Cooper covered 10 upcoming ASX floats in the battery and electrification sector. Some of those included Li-S Energy Limited, Dalaroo Metals Ltd, Recharge Metals Limited and C29 Metals.

However, there’s another potential lithium player wanting to join Pilbara Minerals and others on the ASX with an initial public offering (IPO).

Green Technology Metals

According to reporting by the Australian Financial Review, the new prospective ASX lithium share is called Green Technology Metals, which is planning to raise up to $24 million in an IPO.

This offer is going to be priced at $0.25 per share and the business will list with a market capitalisation of up to $49.4 million.

What is it going to use the money for?  

The business currently plans to use that capital to fund its exploration drilling and also buy 80% of the Ontario Lithium Project in the Quebec region of Canada according to the AFR.

But that isn’t the company’s sole asset. It also has deposits called Root and Wisa.

It was reported that all of the company’s tenements have “lithium bearing pegmatites within the ‘Goldilocks Lithium Zone’ and numerous mapped pegmatites untested at depth and 1 kilometre to 5km strike extensions, partially covered.”

Leadership

There is actually a Pilbara Minerals connection with the current leadership team. The Pilbara Minerals co-founder John Young is reportedly involved with Green Technology Metals as its chair. The AFR also reported that Luke Cox will be the CEO, who is a geologist and former mine manager. Other members of the board include Cameron Henry and Patrick Murphy.

It will be interesting to see how the company performs if and when it makes it onto the ASX to become part of the listed lithium sector.

The post Look out Pilbara Minerals (ASX:PLS). Another new lithium share is about to hit the ASX 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 has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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On Tuesday the S&P/ASX 200 Index (ASX: XJO) fought back from an early decline to finish the day marginally higher. The benchmark index rose 0.15% to 7,437.3 points.

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

ASX 200 expected to fall

The Australian share market is expected to drop on Wednesday. According to the latest SPI futures, the ASX 200 is expected to open the day 34 points or 0.45% lower this morning. This follows a disappointing night of trade on Wall Street, which saw the Dow Jones fall 0.85%, the S&P 500 drop 0.6%, and the Nasdaq fall 0.45%.

South32 shares given buy rating

The South32 Ltd (ASX: S32) share price could still be in the buy zone despite rallying 36% higher in 2021. According to a note out of Goldman Sachs, it has retained its conviction buy rating and lifted its price target on the mining giant’s shares to $3.80. The broker made the move on higher coal prices. It also likes South32 due to its exposure to aluminium.

Oil prices mixed

Energy producers Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) will be on watch after a mixed night for oil prices. According to Bloomberg, the WTI crude oil price is down 0.1% to US$70.37 a barrel and the Brent crude oil price is up 0.1% to US$73.58 a barrel. This is despite another tropical storm expected to hit US production areas this week.

Shares going ex-dividend

The shares of contractor CIMIC Group Ltd (ASX: CIM) and horticulture company Costa Group Holdings Ltd (ASX: CGC) could trade lower this morning when they go ex-dividend. CIMIC is paying shareholders a partially franked 42 cents per share dividend, whereas Costa is paying its shareholders a 4 cents per share fully franked dividend. Both dividends will be paid on 7 October.

Gold price rises

Gold miners Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Limited (ASX: NCM) could have a good day after the gold price pushed higher. According to CNBC, the spot gold price is up 0.7% to US$1,807.10 an ounce. The gold price pushed higher after US inflation data fell short of expectations.

The post 5 things to watch on the ASX 200 on Wednesday 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 owns shares of and has recommended COSTA GRP 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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If you’re looking for S&P/ASX 200 Index (ASX: XJO) shares to buy, then you may want to consider the two listed below.

Here’s why these ASX 200 shares have been named as buys:

Goodman Group (ASX: GMG)

The first ASX 200 share to consider is Goodman Group. It is an integrated property company with operations across the world. It currently has $57.9 billion of assets under management, 363 properties, and over 1,600 customers.

The team at Bell Potter are positive on the company and are forecasting solid growth over the coming years.

In response to its results last month, Bell Potter commented: “GMG’s FY21 EPS was +2% above guidance and +1%/+0.5% above consensus/Citi, with the beat vs our estimate driven by higher investment income and lower interest expense/tax. FY22 EPS guidance was introduced at 10% growth or 72.2c, -2% below consensus and -3.5% below our prior estimate. However, we see upside to guidance and the share price, and re-iterate our Buy rating.”

The broker has a buy rating and $26.00 price target on its shares. This compares to the current Goodman share price of $22.51.

Orocobre Limited (ASX: ORE)

Another ASX 200 share to consider is this lithium miner. It could be a top option for investors looking for exposure to the clean energy/electric vehicle thematic.

Analysts at Citi remain very bullish on the company’s shares despite their strong gain this year.

Citi commented: “While we acknowledge the strong Orocobre share price performance (almost doubled YTD), we believe ORE is well positioned to capitalise on current positive macro dynamics of lithium markets via 1) strong growth pipeline with sufficient balance sheet headroom (total available liquidity of US$511m) to pursue projects in parallel and 2) improving product mix with 50% of FY22 Olaroz production to be battery grade, CY22 commissioning of Naraha hydroxide plant and Mt Cattlin leveraged to strong spot spodumene pricing.”

Citi has a buy rating and $10.50 price target on the lithium miner’s shares. As a comparison, the Orocobre share price closed the day at $9.56.

The post 2 ASX 200 (ASX:XJO) shares that analysts love appeared first on The Motley Fool Australia.

More reading

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Motley Fool contributor James Mickleboro owns shares of Orocobre 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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Could the Corporate Travel Management Ltd (ASX: CTD) share price be worth considering? It has already risen by 28% in the 2021 calendar year to date.

What has been driving the Corporate Travel share price?

COVID-19 has had an outsized impact on ASX travel shares since early 2020.

Corporate Travel saw its shares drop around 75% from the middle of January 2020 to the bottom of the COVID-19 crash.

There was a large decline of demand and volume in 2020 because of the travel restrictions and various COVID impacts.

But now the business is starting to see a recovery.

The business reported that it saw a rapid return to positive underlying earnings before interest, tax, depreciation and amortisation (EBITDA) in the fourth quarter of the 2021 financial year, led by the company’s increasing exposure to North America and Europe which are seeing a return of corporate travel.

The regions of North America and Europe currently generate close to 80% of group revenue, compared to 72% of pre-COVID pro forma 2019 revenue.

The Corporate Travel share price has risen around 3% since the release of the FY21 result. FY21 total transaction value (TTV) was down 65% compared to FY20 (where at least half the year was unaffected by COVID-19). Underlying net profit after tax (NPAT) fell 218% to a loss of $33 million, whilst statutory net profit sank 445% to a loss of $57.8 million

Corporate Travel disclosed that whilst the total FY21 underlying EBITDA was a loss of $7.2 million for the full year, it actually generated $13.6 million of positive EBITDA, which was $19.1 million stronger than the previous quarter.

Management are so confident about the recovery of the business, its cash flow and balance sheet that it’s targeting a return to dividend payments in the 2022 calendar year.

The ASX travel share believes it will be a much larger business when COVID travel restrictions end, particularly after its acquisition of Travel & Transport last year.

FY22 outlook

At the end of FY21, Corporate Travel had $99 million of cash. It continues to assess potential acquisition opportunities that would support its global strategy.

In the first quarter of FY22, Corporate Travel is expecting continued positive underlying EBITDA, despite typically being the softest quarter. July delivered a record revenue result since the onset of COVID-19.

Corporate Travel is expecting growing EBITDA in the second quarter of FY22 as the northern hemisphere returns to offices after the summer holiday period.

The FY22 second half is expected to be generate more of the financial year’s profit because of the rapid recovery in the northern hemisphere. It’s also expecting the lucrative trans-Atlantic travel as well as regional Europe travel to open further. Vaccinations should also allow for a more predictable and “sustainably strong” Australian domestic travel environment.

Is the Corporate Travel share price a buy?

The broker Citi thinks it is worth looking at, rating it as a buy. Citi’s price target for Corporate Travel shares is $26.06, which suggests that the Corporate Travel share price could rise by around 20% over the next 12 months.

One of the positives for the broker was its increasing market share in key markets.

On Citi’s numbers, Corporate Travel shares are valued at 22x FY23’s estimated earnings.

The post Is the Corporate Travel (ASX:CTD) share price a buy right now? appeared first on The Motley Fool Australia.

More reading

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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 Corporate Travel Management 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 S&P/ASX 200 Index (ASX: XJO) went up by 0.2% today to 7,443 points.

Here are some of the highlights from the ASX:

Brambles Limited (ASX: BXB)

The Brambles share price was the worst performer in the ASX 200 today, falling by over 9%.

It gave an investor briefing presentation yesterday after the market had closed. Today was the first time investors were able to react to that update.

The logistics company outlined how it was expecting its revenue and underlying profit to grow over the next few financial years. It said that in FY22 it’s expecting revenue to grew by between 5% to 6%, whilst underlying profit was expected to increase by only 1% to 2%.

The FY22 profit growth includes the spending of around $50 million on short-term “transformational costs”. It also said that its underlying effective tax rate is expected to increase by around 1.5 percentage points, driven by the expected impact of increases in the US, UK and Spanish tax rates.

This transformation is then expected to drive sustained high single digit underlying profit growth from FY23 onwards for the ASX 200 share. Profit is expected to be driven by mid single-digit sales growth with pricing initiatives and volume growth across all segments support underlying profit growth and earnings leverage. FY24 and FY25 are expected to have no short-term transformation costs.

FY22 free cashflow is expected to be an outflow of around US$200 million because of the reversal of US$215 million of FY21 timing benefits. Excluding those timing benefits, free cash flow generation in the year is expected to fully fund the capital expenditure (including transformation investments) and dividends.

Zip Co Ltd (ASX: Z1P)

Another business in the ASX 200 that saw a decline was Zip, its share price dropped around 2.5% after releasing an investor presentation.

The buy now, pay later business outlined to investors how it had performed in FY21 and its plans for the future.

It told investors that it’s going to launch savings accounts and rewards for people utilising Zip. The company said that its ‘Zip Card’ will make the in-store shopping experience easier and it would come with rewards such as up to 3% cashback every time the card is used in-store.

Another headline-grabber was the news that Zip will allow people to buy, hold, sell and pay with crypto. This will also come with ‘crypto rewards’ for paying with crypto.

Zip also plans to help shoppers with its shopping assistant, which will enable people to find discounts and find better deals.

Another area that Zip is working on is long duration payments. In the presentation it showed an example of six-month and twelve-month options for paying.

Westpac Banking Corp (ASX: WBC) and Kina Securities Ltd (ASX: KSL)

ASX 200 bank Westpac saw its share price rise 0.3% today, whilst the Kina Securities share price fell 5.6%.

Westpac has been trying to sell two of its Pacific businesses to Kina. Specifically, the big four bank had entered into an agreement to sell Westpac Fiji and its 89.91% stake of Westpac Bank PNG to Kina.

But, the Papua New Guinea Independent Consumer and Competition Commission (ICCC) has released a final determination, confirming that it has denied authorisation for the sale.

Kina disclosed that the ICCC isn’t convinced the sale won’t substantially lessen competition in the PNG markets. The ICCC also said that it wasn’t convinced the sale would benefit the public.

Kina said it’s assessing the implications of the decision and is considering its options. Westpac stated it will continue to operate these businesses while it reviews the impact on the sale to Kina Bank.

The post ASX 200 rises, Zip falls, Brambles sinks 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 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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