The S&P/ASX 200 Index (ASX: XJO) has followed the lead of U.S. markets and started the week on a very positive note. In late morning trade the benchmark index is up 1.2% to 5,456.3 points.

Four shares that have climbed more than most today are listed below. Here’s why they are charging higher:

The Advance Nanotek Ltd (ASX: ANO) share price is up 14% to $5.36 after the release of a trading update. The advanced materials company revealed that it expects its net profit before tax to be approximately $8.4 million in FY 2020. This will be 2.5 times greater than FY 2019’s profit before tax. The company also advised that sunscreen manufacturing has recommenced in the United States. And although manufacturing is occurring at smaller volumes, it anticipates sales volumes to return to normal.

The Macquarie Group Ltd (ASX: MQG) share price is up almost 5% to $110.22. This gain may have been driven by a broker note out of Morgan Stanley. This morning the broker retained its overweight rating and lifted the price target on the investment bank’s shares to $120.00. This offset a downgrade by Credit Suisse to neutral with a $107.50 price target.

The Tyro Payments Ltd (ASX: TYR) share price has jumped over 8% to $3.67. This follows the release of its weekly trading update. According to the release, Tyro’s transaction values have continued to recover. During the week ending May 8, its transaction value was $315 million. This is down 23% on the prior corresponding period. A week earlier, its transaction value was down 27%.

The Zip Co Ltd (ASX: Z1P) share price has stormed a further 8.5% higher to $3.55. Investors have been buying the buy now pay later provider’s shares since the release of a strong trading update last week. During April, Zip Co’s monthly revenue increased 81% on the prior corresponding period to $15.1 million. The company also reported an 86% lift in monthly transaction volume to $181.6 million and net bad debts of 1.99%.

More reading

• How Macquarie Group is vying to unseat CBA
• ASX 200 Weekly Wrap: New ASX bull run continues
• These are the 10 most shorted ASX shares
• 5 things to watch on the ASX 200 on Monday
• Which is the cheapest ASX bank stock on the market?

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 Advance NanoTek Limited, Tyro Payments, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Macquarie Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why Advance Nanotek, Macquarie, Tyro, & Zip Co shares are charging higher appeared first on Motley Fool Australia.

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It’s fair to say it’s been a disappointing start to the year for ASX retail shares. Many of the biggest retailers have shed billions in value and watched their shares plummet lower in 2020.

But with the government looking to ease COVID-19 restrictions and the economy picking up again, are ASX retail shares back in the buy zone?

Which ASX retail shares are worth buying today?

I think in these uncertain times it’s not as simple as just buying across the sector. That’s particularly the case with retail which varies greatly and will be impacted in different ways in 2020.

I think some of the electronics retailers like JB Hi-Fi Limited (ASX: JBH) and Harvey Norman Holdings Limited (ASX: HVN) could be in the buy zone.

JB Hi-Fi shares are down 8.06% in 2020, while the Harvey Norman share price has slumped 26.46% this year (at the time of writing). JB Hi-Fi has been one of the outperforming ASX retail shares thanks to increased home electronics sales.

More Aussies are working from home due to the current restrictions. As a result, JB Hi-Fi has seen a surge in computer monitor and other work-related sales in 2020, while Harvey Norman has lagged its rival given its more diversified product areas.

That being said, if you’re after an income boost this year, Harvey Norman could be an option. The ASX retail share is yielding 10.89%, but I do think that may be slashed as a result of reduced earnings in 2020.

One other option in the retail sector may be Scentre Group (ASX: SCG). Scentre is an Australia real estate investment trust (A-REIT) that operates the Westfield shopping centres across Australia and New Zealand.

Scentre shares have been smashed in 2020 and are trading 43.30% lower in 2020. That could mean Scentre shares are a bargain to be snapped up, in anticipation of shopping centres seeing increased traffic this year upon re-opening. Scentre is a top ASX retail dividend share with a tidy 8.41% dividend yield on offer right now.

Foolish takeaway

There are many ASX retail shares that could be in the buy zone right now. Given the uncertainty ahead, I wouldn’t rely solely on price-to-earnings (P/E) ratios or dividend yields at the moment. The key is to buy and hold companies with strong balance sheets and stable tenants that can weather the current storm.

More reading

• These are the 10 most shorted ASX shares
• 3 ASX shares to buy as a beginner
• Top brokers name 3 ASX 200 shares to buy next week
• Top broker urging you to buy this ASX 200 retail stock next week
• ASX shares and investing trends that could boom post COVID-19

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre Group. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Are ASX retail shares undervalued today? appeared first on Motley Fool Australia.

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