It is fair to say that the last few years have been very disappointing for the AMP Ltd (ASX: AMP) share price.

Unfortunately for its long-suffering shareholders, so far in 2021, things have been equally bad for the financial services company’s shares.

Since the start of the year, the AMP share price is down 29%. This stretches its five-year decline to a sizeable 80%.

To put that into context, this means that a $10,000 investment in AMP’s shares in 2016 would be worth just $2,000 today.

Why is the AMP share price underperforming again in 2021?

Investors have been selling down the AMP share price this year following its disappointing performance in FY 2020.

For the 12 months ended 31 December, weakness across all four of its business units led to AMP reporting a 32.8% decline in underlying profit to $295 million.

In addition to this, the company revealed that its assets under management (AUM) fell 8% for its Australian wealth management business and 7% for its AMP Capital business. Management blamed some of this weakness on the Australian Government’s early release of super program.

Another factor that has been weighing on the AMP share price was the collapse of takeover talks between it and Ares Management for the AMP Capital private markets business. The company is now embarking on a demerger, which the market appears somewhat undecided on.

Is this a buying opportunity?

At present, none of Australia’s leading brokers have buy ratings on the company’s shares. This appears to have been driven by significant uncertainties hanging over the company and its future plans.

Though, it is worth noting that Ord Minnett currently has a hold rating and $1.35 price target on its shares. Based on the current AMP share price of $1.11, this implies potential upside of almost 22% over the next 12 months.

The post It hasn’t been a great 2021 so far for the AMP (ASX:AMP) share price appeared first on The Motley Fool Australia.

More reading

• ASX 200 rises, Macquarie up, Rural Funds launches capital raising
• ASX 200 midday update: Zip rockets, AMP asset sale
• Is the Macquarie (ASX:MQG) share price a buy for dividends?
• AMP (ASX:AMP) share price in focus after Macquarie (ASX:MQG) asset sale agreement
• The AMP (ASX:AMP) share price is down 27% in 2021

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

from The Motley Fool Australia https://ift.tt/3kbIeun

The S&P/ASX 200 Index (ASX: XJO) was hit hard by a resurging COVID-19 outbreak in Sydney last week. The index  gave up gains early in the week as the virus took hold in Sydney, extending the damaging economic lockdowns by at least another week.

Tech shares led Friday’s sell off, which saw the ASX 200 lose close to 1%, and erase the mild gains it had built up on Wednesday and Thursday.

Friday’s downward move set the tone for the whole week. ASX tech shares dragged the ASX 200 down for the five trading days, with companies like Xero Limited (ASX: XRO), Afterpay Ltd (ASX: APT), Appen Ltd (ASX: APX) and WiseTech Global Ltd (ASX: WTC) all lost value to varying degrees. Afterpay fared rather well, only dipping 0.66%. In contrast, Appen was one of the worst ASX tech performers, shedding a nasty 9%.

ASX tech shares lead market sell off, blue chips close behind

But it wasn’t only ASX tech shares feeling the pain. All four of the major ASX banks lost value as well, with Australia and New Zealand Banking Group Ltd (ASX: ANZ) copping the worst of it with a 1.7% loss for the week. Other ASX blue chips weren’t helping. Wesfarmers Ltd (ASX: WES) was also down 1.7% over the week, as was Macquarie Group Ltd (ASX: MQG). Telstra Corporation Ltd (ASX: TLS) also lost a touch more than 1%.

In contrast, Woolworths Group Ltd (ASX: WOW), its recent spin-off Endeavour Group Ltd (ASX: EDV) and Coles Group Ltd (ASX: COL) all had a positive week, putting a stopper in the ASX 200’s overall losses. The big ASX miners also helped. BHP Group Ltd (ASX: BHP) firmed close to 2% over the week, while Fortescue Metals Group Limited (ASX: FMG) put on 1.2%. Woodside Petroleum Limited (ASX: WPL) managed a 2.14% gain as well.

Some other ASX winners included Sydney Airport Holdings Pty Ltd (ASX: SYD), which jumped 35% at one point on Monday after a takeover bid was lobbed its way (more on that later). Challenger Ltd (ASX: CGF) also benefitted similarly, rising 14% at one point. Except the news that got investors hot under the collar with the latter was a group of institutional investors fighting over a large stake of its shares.

How did the markets end the week?

As we’ve flagged, it wasn’t a great week for ASX shares.

Monday started things off with a mild gain of 0.09%. Tuesday saw the ASX go into reverse, with a loss of 0.73%. But Wednesday and Thursday saw the strongest days for the share market, with back to back gains of 0.9% and 0.2% respectively.

But it was Friday’s loss of 0.93% that really set the tone for the week, and sealed the loss.  Overall, the index started the week out at 7,308.6 points and ended it at 7,273.3 points – a fall of 0.48%.

Meanwhile, the All Ordinaries Index (ASX: XAO) also had a rather disappointing week. The All Ords started out at 7,587.1 points and finished up at 7,545.3 points – meaning it fared even worse than the ASX 200 with a loss of 0.55%.

Which ASX 200 shares were the biggest winners and losers?

It’s now time for our salacious Foolish gossip pages section, where we look at the ASX 200’s best winners and poorest losers of the week gone by. So get the coffee brewing as we, as always, start with the losers:

Worst ASX 200 losers	% loss for the week
Polynovo Ltd (ASX: PNV)	(13.4%)
Nine Entertainment Co Holdings Ltd (ASX: NEC)	(10.8%)
Clinuvel Pharmaceuticals Ltd (ASX: CUV)	(10.1%)
Appen Ltd (ASX: APX)	(9%)

Healthcare company Polynovo was the ASX 200 wooden spooner last week, with a hefty 13.4% slide in value. Despite the size of this drop, there really wasn’t too much to report on for Polynovo last week. Looking at it another way though, and Polynovo has been on a downwards slide for a few months now. So perhaps this is just the latest chapter in that story.

Media company Nine also had a week to forget. There wasn’t any major news out of Nine last week either. But perhaps the fine that the Australian consumer watchdog levied against Nine last Friday was still bumming investors out here.

Close behind Nine was pharma company Clinuvel. Again there wasn’t much to report from the company last week. However, as my Fool colleague James noted on Monday, Clinuvel’s CEO Philippe Wolgen has been selling some shares lately, which may have gotten investors a little pessimistic on this one.

And finally, ASX tech company Appen was another poor performer. This may have been caused by the general market distaste for ASX tech shares last week. Another thing that might have been at play here was news of a major shareholder selling out of its position in recent weeks, not too long after the investor started buying into Appen. Not exactly confidence-building stuff.

Now with the losers out of the way, let’s check out some of last week’s ASX 200 winners:

Best ASX 200 gainers	% gain for the week
Sydney Airport Holdings Pty Ltd (ASX: SYD)	33%
Resolute Mining Limited (ASX: RSG)	13.9%
Perenti Global Ltd (ASX: PRN)	13.2%
A2 Milk Company Ltd (ASX: A2M)	10.4%

As we discussed earlier, Sydney Airport was the winning ASX 200 share last week. This dramatic boost in valuation came after a consortium of infrastructure investors approached Sydney Airport with an $8.25 per share all-cash takeover offer. The Airport hasn’t announced a final position on the offer, but has noted that its valuation has been ‘temporarily’ affected by the pandemic.

Gold miner Resolute was another winner last week. Gold prices have recently climbed back above US$1,800 per ounce, so this might be why investors were bidding up Resolute, despite no other major news out of the company.

Engineering company Perenti was also in demand. We can probably point to a new contract Perenti has signed with nickel company Panoramic Resources Ltd (ASX: PAN) here. It will be worth around $280 million over four years for Perenti.

And finally, we have what is turning into a bit of a recovery story with A2 Milk. This embattled dairy company was up 10.4% last week to $7.20 per share. Since bottoming out at $5.04 back in May, A2 is now up more than 40%. Saying that, it remains down more than 38% year to date. The catalyst for this latest move appears to be a proposed acquisition of 75% of New Zealand’s Mataura Valley Milk which the company flagged last week.

A wrap of the ASX 200 blue-chip shares

Just before we go, here is a look at how the major ASX 200 blue-chip shares are faring as we commence yet another week in paradise:

ASX 200 company	Last share price	Trailing P/E ratio	Trailing Dividend Yield	52-week high	52-week low
CSL Limited (ASX: CSL)	$275.47	35.39	1.02%	$320.42	$242
Commonwealth Bank of Australia (ASX: CBA)	$98.59	21.93	2.52%	$106.57	$62.64
Westpac Banking Corp (ASX: WBC)	$25.37	21.71	3.51%	$27.12	$16
Australia and New Zealand Banking Group Ltd (ASX: ANZ)	$27.85	16.87	3.77%	$29.64	$16.40
National Australia Bank Ltd (ASX: NAB)	$26.08	20.02	3.45%	$27.84	$16.56
Macquarie Group Ltd (ASX: MQG)	$154.19	18.7	3.05%	$162.06	$118.36
Fortescue Metals Group Limited (ASX: FMG)	$23.87	8.68	10.35%	$26.40	$14.51
BHP Group Ltd (ASX: BHP)	$49.48	27	4.18%	$51.82	$33.73
Rio Tinto Limited (ASX: RIO)	$125.40	15.67	4.9%	$132.94	$90.04
Newcrest Mining Ltd (ASX: NCM)	$25.71	16.09	1.7%	$38.15	$23.08
Woodside Petroleum Limited (ASX: WPL)	$23.44	–	2.2%	$27.60	$16.80
Telstra Corporation Ltd (ASX: TLS)	$3.75	25.16	4.27%	$3.79	$2.66
Woolworths Group Ltd (ASX: WOW)	$38.07	33.98	2.65%	$44.06	$35.96
Wesfarmers Ltd (ASX: WES)	$58	34.98	2.84%	$59.60	$43.50
Coles Group Ltd (ASX: COL)	$16.85	21.43	3.59%	$19.26	$15.28
Transurban Group (ASX: TCL)	$14.42	–	2.53%	$15.64	$12.36
Sydney Airport Holdings Pty Ltd (ASX: SYD)	$7.75	–	–	$8.04	$4.99
Afterpay Ltd (ASX: APT)	$117.51	–	–	$160.05	$65.31

And finally, here is the lay of the land for some leading market indicators:

• S&P/ASX 200 Index (XJO) at 7,273.6 points.
• All Ordinaries Index (XAO) at 7,545.3 points.
• Dow Jones Industrial Average Index (DJX: .DJI) at 34,870 points after rising 1.3% on Friday night (our time).
• Bitcoin (CRYPTO: BTC) going for US$33,931 per coin.
• Gold (spot) swapping hands for US$1,808 per troy ounce.
• Iron ore asking US$214 per tonne.
• Crude oil (Brent) trading at US$75.55 per barrel.
• Australian dollar buying 74.85 US cents.
• 10-year Australian Government bonds yielding 1.36% per annum.

That’s all folks. See you next week!

The post ASX 200 Weekly Wrap: COVID wobbles ASX as shares retreat appeared first on The Motley Fool Australia.

More reading

• 3 ASX 200 blue chip shares analysts rate highly
• Is it a good time now to buy Sydney Airport (ASX:SYD) shares?
• Get ready: There’s a massive buying opportunity coming
• 2 excellent ASX growth shares that could be buys
• 5 things to watch on the ASX 200 on Monday

Motley Fool contributor Sebastian Bowen owns shares of National Australia Bank Limited, Newcrest Mining Limited, and Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended AFTERPAY T FPO, Appen Ltd, CSL Ltd., POLYNOVO FPO, WiseTech Global, and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO, Appen Ltd, COLESGROUP DEF SET, Challenger Limited, Macquarie Group Limited, Telstra Corporation Limited, Wesfarmers Limited, WiseTech Global, and Xero. 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.

from The Motley Fool Australia https://ift.tt/2TZB8hV

Investors that are looking to bolster their portfolio with some blue chip ASX 200 shares may want to look at the three listed below.

Here’s why these blue chip ASX 200 shares are highly rated:

BHP Group Ltd (ASX: BHP)

The Big Australian could be a top blue chip option if you’re not averse to investing in the mining sector. This is due to BHP’s world class, low cost, and diverse operations and favourable commodity prices. In respect to the latter, with iron ore and oil prices rising strongly over the last 12 months, BHP appears well-positioned to deliver a bumper full year result in August. And with its balance sheet looking robust, this could lead to surplus cash being returned to shareholders through dividends and buybacks.

Macquarie is very positive on BHP and expects the mining giant to report a record second half result next month. The broker currently has an outperform rating and $63.00 price target on BHP’s shares.

CSL Limited (ASX: CSL)

Another blue chip ASX 200 share to look at is CSL. It is one of the world’s leading biotechnology companies and the name behind the CSL Behring and Seqirus businesses. While COVID-19 has been weighing on plasma collections and could be a headwind in the near term, increased demand for seasonal flu vaccines looks set to offset some of this. After which, CSL appears well-placed for long term growth thanks to strong demand for immunoglobulins and its lucrative research and development pipeline.

UBS is positive on CSL and currently has a buy rating and $330.00 price target on its shares.

SEEK Limited (ASX: SEK)

A final blue chip ASX 200 share to look at is SEEK. It is the dominant job listings company in the ANZ market and has a number of growing international operations. It appears well-placed for growth in the near term thanks to its strong market position and the positive outlook for Australia’s unemployment level. With unemployment tipped to fall materially in the coming years, this appears supportive of increasing job advertisement volumes.

Macquarie is a fan of SEEK. It recently upgraded the company’s shares to an outperform rating with a $40.00 price target.

The post 3 ASX 200 blue chip shares analysts rate highly appeared first on The Motley Fool Australia.

More reading

• Up 36%, why the BHP (ASX:BHP) share price has beaten the ASX 200 in the last year
• 3 blue chip ASX 200 shares named as buys
• Is the CSL (ASX:CSL) vaccine business under threat?
• It’s been a disappointing 2021 so far for the CSL (ASX:CSL) share price
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor James Mickleboro owns shares of SEEK Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and has recommended CSL Ltd. The Motley Fool Australia has recommended SEEK Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3r0Lv18

The S&P/ASX 200 Health Care index (ASX: XHJ) is where some of the most well-known Australian healthcare shares can be found. But only one can come out on top.  

Here are the 5 ASX 200 healthcare shares that bested the rest in the 2021 financial year.

5 best performing ASX 200 healthcare shares

Shareholders of these companies get ready to pat yourselves on the back.

Pro Medicus Limited (ASX: PME)

The Pro Medicus share price beat those of all other ASX 200 healthcare shares, gaining almost 122% in the 2021 financial year. Shares in the healthcare imaging software provider started the financial year trading for $26.46 and by its end, they were swapping hands for $58.72.

In January, Pro Medicus signed a 7-year contract with Intermountain Healthcare in Salt Lake City, the United States. Over the 4 days following the news, the Pro Medicus share price gained 38%. It then finished the financial year off strong by gaining 41% in its last 7 weeks.

The last time the market heard news from Pro Medicus was in May when the company’s subsidary signed a deal with The University of Vermont Health Network.

Healius Ltd (ASX: HLS)

The Healius share price ended the 2021 financial year 49% higher than when it began. Shares in the company lifted from $3.05 to $4.63 over the 12 months.

Healius is a healthcare company focused on pathology and imaging. It also has three up-and-coming business segments – dental, IVF, and day hospitals.

Healius started FY21 with a positive trading update, then released a healthy yearly earnings update in August, but chose not to pay a dividend.

In October 2020, it sold its medical centres business to BGH Capital for $483 million, which the company put towards an on-market buyback.

Cochlear Limited (ASX: COH)

The Cochlear share price gained 33% in the 12 months ended 30 June 2021. That saw its share price go from $188.93 to $251.67.

Cochlear is a manufacturer and distributor of hearing devices.

COVID-19 saw Cochlear started the financial year by reporting a drop in profits and settling a patent infringement case brought against it for $75 million.

Fortunately, despite the company staying extremely quiet thereafter, the Cochlear share price managed to recover over the 12-month period.

Sonic Healthcare Limited (ASX: SHL)

The Sonic share price made it be one of the ASX 200’s winning healthcare shares after gaining more than 26% over the 2021 financial year. On 30 June 2020, the Sonic share price was $30.43. Exactly 12 months later it was $38.40.

Sonic is a pathology provider with business in Australia, New Zealand, Europe, and the US.

Sonic stayed relatively quiet over the 2021 financial year. The last time the market heard news from Sonic was on 17 June. Then, it announced it had agreed to acquire Canberra Imaging Group for an unspecified cost.

Resmed CDI (ASX: RMD)

Last, but certainly not least, was the Resmed share price, which gained almost 20% over the 12 months ended 30 June 2021. Having started the 2021 financial year trading for $27.55, Resmed shares ended it swapping hands for $32.76.

Resmed works with respiratory medical devices. It focuses on the treatment of sleep apnoea.

The final day of the 2021 financial year saw the Resmed share price hit a new all-time high. It came despite silence from the company.

In fact, aside from several quarterly results, the market hasn’t heard any price-sensitive news from the ASX 200 healthcare company since July 2019.

Perhaps the boost was spurred by its major competitors’ decision to recall 3.5 million ventilation devices designed to treat sleep apnoea.

The post The 5 best ASX 200 healthcare shares of financial year 2021 appeared first on The Motley Fool Australia.

More reading

• Are these 2 high-flying ASX shares buys?
• 3 ASX 200 shares named as buys
• Here’s how some of the top ASX SaaS shares performed in FY21
• The Healius (ASX:HLS) share price hit a new 5-year high today
• Leading broker names 3 blue chip ASX shares to buy

Motley Fool contributor Brooke Cooper 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 Cochlear Ltd. and Pro Medicus Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended ResMed. The Motley Fool Australia owns shares of and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Cochlear Ltd., ResMed Inc., 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.

from The Motley Fool Australia https://ift.tt/3hviTtK

Could this be a good time to be thinking about the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price?

Since the start of July 2021, the Sydney Airport share price has gone up by 34%.

What’s going on with the Sydney Airport share price?

On 5 July 2021, Sydney Airport announced that it had received a non-binding proposal to acquire the business from a consortium of infrastructure investors at an indicative cash price of $8.25 per share.

The consortium comprises entities like IFM Investors, QSuper and Global Infrastructure Management.

In an initial response to the proposal, which is subject to a number of conditions, Sydney Airport has appointed Barrenjoey and UBS as its financial advisers and Allens as its legal adviser.

The Sydney Airport boards have commenced an assessment of the proposal.

Sydney Airport also said:

The Sydney Airport Boards note that Sydney Airport is a world class airport and one of Australia’s most important infrastructure assets. Sydney Airport is Australia’s largest airport and is the gateway to international travel in and out of Australia.

The indicative proposal has been made during a global pandemic which has deeply affected the aviation industry and the Sydney Airport security price. The indicative price is below where Sydney Airport’s security price traded before the pandemic. The boards are undertaking the value of the airport given its long-term remaining concession and the expected short-term impact of the pandemic. The boards will update securityholders accordingly.

Another bid?

According to reporting by the Australian Financial Review, it’s possible that a consortium led by Macquarie Group Ltd (ASX: MQG) could try to put in a counter offer to this IFM-led bid.

The global investment bank has reportedly been communicating with potential partners such as superannuation funds and funds managed by Macquarie Infrastructure & Real Assets (MIRA).

It was also reported by the AFR that Macquarie could use some of its own money for the deal.

The potential offer “deliberations” are still at an early stage and there is no guarantee that a formal offer will come from this. One option, according to the reporting, was that Macquarie may want to be part of the IFM consortium.

Is the Sydney Airport share price worth looking at?

The brokers at Macquarie have a price target on Sydney Airport of $8.50, but the rating is ‘neutral’ though an increased offer is possible.

Credit Suisse’s price target is $7.70 and it also has a ‘neutral’ rating on Sydney Airport. It notes there are still hurdles to pass, which means the indicative offer isn’t guaranteed to turn into a binding offer.

Morgan Stanley also sees the potential problems for proposal to be carried out, such as the potential need for the sale of ownership holdings of other airports in Australia.

The post Is it a good time now to buy Sydney Airport (ASX:SYD) shares? appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• The ASX shares with the most to lose from a delayed COVID reopening
• Here are 3 of the ASX 200’s most heavily traded shares today
• Why the Sydney Airport (ASX:SYD) share price flew higher again today
• Expert says more ASX shares to follow Sydney Airport (ASX:SYD) takeover trend

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 Macquarie Group Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/2Vnxqio

As the COVID-19 resurgence refused to wane in Sydney, the S&P/ASX 200 Index (ASX: XJO) tumbled 1.4% from early Thursday morning to Friday’s close.

The strong post-pandemic ‘reopening’ trade since the start of the year seemed to have halted abruptly as strict social restrictions were applied on Friday to Australia’s largest city.

“The bottom line is equities appear to [be] rattled by the worsening COVID picture both locally and overseas,” said Shaw and Partners portfolio manager James Gerrish on Friday morning.

The problem is that the ‘reflation’ rally this year has run too far, Gerrish wrote in his Market Matters newsletter.

“We believe equities are being priced for a strong local and global economic recovery — and history tells us stocks generally don’t like surprises.”

Markets get wobbly when too many investors go the same way

Gerrish explained that when a particular theme becomes excessively popular, markets can become violent.

“Both the reflation & recovery trade has soared in 2021 but when too many investors are pointing in the same direction, volatility can spike aggressively (e.g. the US VIX kicked up over +20% last night).”

There is now a hint that growth shares are ready to take back the spotlight from value stocks.

“Bond yields are rapidly surrendering their strong early year gains providing a strong outperformance tailwind from growth stocks over value.”

But don’t go mad for those growth shares just yet. Gerrish reckons a tempting buying opportunity is on the horizon.

ASX 200 is due for a correction

While he was cautious in not advising investors to sell off and build up their cash reserves, Gerrish suspected a correction was coming.

The ASX 200 was at 7,273.3 points after close of trade on Friday. The index has gained 8.8% since the start of the year, and more than 22.8% in the past 12 months.

“A ~5% pullback towards the 7000 area would only represent a test of the lower side of the markets’ well-established uptrend,” said Gerrish.

“While an 8% pullback to test the medium-term trend line would be even more appetising.”

So be patient, keen investors.

“Our ‘gut feel’ is we will get the opportunity to accumulate stocks in at least one of these areas in the coming weeks/months.”

The post Get ready: There’s a massive buying opportunity coming appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Monday
• These were the worst performing ASX 200 shares last week
• It has been a big past year for the ANZ (ASX:ANZ) share price
• These were the best performing ASX 200 shares last week
• These 3 ASX 200 shares were the most heavily traded today

Motley Fool contributor Tony Yoo 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.

from The Motley Fool Australia https://ift.tt/3ASsiDd

If you’re looking for some growth shares to add to your portfolio, then you might want to look at the ones below.

Here’s what you need to know about these highly rated ASX growth shares:

Kogan.com Ltd (ASX: KGN)

The first growth share to look at is Kogan. It is the ecommerce company behind the Kogan, Dick Smith online, and Mighty Ape brands. It also has a number of complementary businesses such as Kogan Mobile, Kogan Internet, and Kogan Money.

The last 12 months have been very mixed for Kogan. After smashing expectations with meteoric sales and profit growth this time last year, inventory issues undid a lot of this and are set to weigh heavily on its full year results in August.

While this is disappointing, it is worth remembering that these issues are only expected to be temporary. In light of this, investors may want to focus on its strong long term growth prospects thanks to its leading market position and the structural shift online.

Credit Suisse believes the weakness in the Kogan share price this year could be a buying opportunity. It currently has an outperform rating and $17.93 price target on its shares.

WiseTech Global Ltd (ASX: WTC)

Another ASX growth share to look at is WiseTech Global. It is the logistics solutions company behind the popular CargoWise One platform. This platform allows users to execute complex logistics transactions and manage freight operations from a single, easy to use platform.

It has been a very positive performer in FY 2021 despite the pandemic. For example, strong demand led to its first half revenue increasing 16% to $238.7 million and its EBITDA rising 43% to $62.5 million.

Pleasingly, management expects its second half performance to be just as strong and is guiding to full year revenue growth of 9% to 19% and EBITDA growth of 30% to 50%. And despite this growth, WiseTech Global’s revenue will still be only a fraction of the broader Supply Chain Management Expenditure market which is valued at US$15.2 billion.

Morgan Stanley is bullish on WiseTech Global. Its analysts currently have an overweight rating and $35.00 price target on its shares.

The post 2 excellent ASX growth shares that could be buys appeared first on The Motley Fool Australia.

More reading

• Here’s how some of the top ASX SaaS shares performed in FY21
• Here’s why the Kogan (ASX:KGN) share price is falling on Friday
• Why Magellan, Origin, Piedmont Lithium, & WiseTech Global are dropping
• ASX 200 midday update: Zip rockets, AMP asset sale
• 3 stellar ASX 200 growth shares that could be buys in July

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 and WiseTech Global. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd and WiseTech Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3i2fVfa

The Vanguard MSCI Index International Shares ETF (ASX: VGS) could be a good option to consider for the long-term.

The exchange-traded fund (ETF) offers a few different things that investors may want to look for.

It’s offered by Vanguard, which has a goal of trying to provide as low cost investment options for investors as it can.

This particular investment option may tick some of the boxes.

Here are a few different reasons why it could be worth considering:

Global diversification

The investment objective of this ETF is to track the return of the MSCI World ex-Australia Index.

It provides exposure to many of the world’s largest companies listed in major developed countries.

There are many different countries represented in the holdings including the US, Japan, the UK, Canada, France, Germany, Switzerland, the Netherlands, Sweden, Hong Kong, Italy, Spain, Denmark, Finland, Singapore, Belgium, Norway, Israel and Ireland.

It can be helpful at mitigating country-specific risk when it’s invested in so many regions, although the US allocation is still at a hefty 68%.

High quality holdings across different sectors

Vanguard is able to share some portfolio characteristics statistics. It says that the return on equity (ROE) ratio was 15.9% and the earnings growth rate was currently 12% as at 31 March 2021.

Some, or many, of the world’s strongest businesses can be found in this portfolio. The biggest 10 weightings are: Apple, Microsoft, Alphabet, Amazon.com, Facebook, JPMorgan Chase, Tesla, Johnson & Johnson, NVIDIA and Berkshire Hathaway.

It has a total of around 1,500 holdings, so there is substantial diversification.

In terms of sector allocation, the biggest weighting is to information technology (21.4%).

Vanguard MSCI Index International Shares ETF’s low management fees

Vanguard’s owners are the investors themselves. The investment management outfit shares the profit with investors by lowering the management costs as much as it can.

Whilst not the lowest on the ASX, the annual cost is lower than many other ETFs out there at 0.18% per annum.

Historical returns

Past performance is not an indicator of future performance.

However, the longer-term returns of the ETF have been double digit numbers.

Over the past three years, Vanguard MSCI Index International Shares ETF has delivered an average return per annum of 13.7%. Over the last five years it has delivered an average return per annum of 12.9%.

A substantial amount of that return was capital growth, though there are distributions paid too. According to Vanguard, the equity yield as at 31 May 2021 was 1.6%.

The post Why Vanguard MSCI Index International Shares ETF (ASX:VGS) could be a good long-term buy appeared first on The Motley Fool Australia.

More reading

• 2 highly rated international ETFs for ASX investors
• 3 high quality ETFs for ASX investors

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 Vanguard MSCI Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3yGw1Sq

On Friday the S&P/ASX 200 Index (ASX: XJO) was out of form and sank notably lower. The benchmark index fell 0.9% to 7,273.3 points.

Will the market be able to bounce back from this on Monday? Here are five things to watch:

ASX 200 expected to rebound

The Australian share market is expected to start the week with a big gain. According to the latest SPI futures, the ASX 200 is poised to open the day 75 points or 1% higher. This follows a very positive end to the week on Wall Street, which saw the Dow Jones rise 1.3%, the S&P 500 climb 1.1%, and the Nasdaq storm 1% higher.

Oil prices rise

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could start the week strongly after oil prices stormed higher. According to Bloomberg, the WTI crude oil price is up 2.2% to US$74.56 a barrel and the Brent crude oil price has risen 1.4% to US$75.55 a barrel. Traders were buying oil after US inventories declined.

Tech shares could rise

It could be a good start to the week for tech shares such as Afterpay Ltd (ASX: APT) and Xero Limited (ASX: XRO). This follows a solid night of trade on the Nasdaq index on Friday night, which saw the tech-heavy index hit a new record high. As the local tech sector tends to follow the Nasdaq’s lead, this could may bode well for today’s session.

Gold price rises

Gold miners including Newcrest Mining Limited (ASX: NCM) and Northern Star Resources Ltd (ASX: NST) could be on the rise today after the gold price pushed higher on Friday night. According to CNBC, the spot gold price rose 0.6% to US$1,810.6 an ounce. The gold price had its best week in seven amid concerns over the Delta strain of COVID-19.

Viva Energy given buy rating

The Viva Energy Group Ltd (ASX: VEA) share price could be good value according to analysts at Goldman Sachs. This morning the broker has responded to the fuel company’s market update by reaffirming its buy rating and $2.70 price target. Goldman said: “Viva 2Q21 was a strong beat vs GS’ above consensus 2Q21, 1H21 and 2021 forecast, which we expect to drive upgrades to consensus 2021 earnings. A return to ordinary dividends is increasingly probable in 1H21 and we forecast A2.9cps in the half.”

The post 5 things to watch on the ASX 200 on Monday appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• It has been a big past year for the ANZ (ASX:ANZ) share price
• These were the best performing ASX 200 shares last week
• These 3 ASX 200 shares were the most heavily traded today
• ASX 200 drops, Audinate booms, Humm falls

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 AFTERPAY T FPO and Xero. The Motley Fool Australia owns shares of and has recommended AFTERPAY T FPO and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

from The Motley Fool Australia https://ift.tt/3i2OHVV

Are you interested in boosting your income portfolio with some new additions? Then below are two options to consider.

Here’s why these ASX dividend shares have been rated as buys:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

ANZ could be an ASX dividend share to consider. This is due to the increasingly positive outlook for the big four banks thanks to improving trading conditions and cost reductions. The latter sees the bank aiming to reduce its cost base to $8 billion by 2022.

In respect to improving trading conditions, you only need to look at ANZ’s recent half year results to see this. During the first half of FY 2021, ANZ reported a statutory profit after tax of $2,943 million and cash earnings from continuing operations of $2,990 million. This was up 45% and 28%, respectively, on the second half of FY 2020.

One broker that is positive on ANZ is Morgans. Its analysts currently have an add rating and $34.50 price target on its shares. It is forecasting fully franked dividends of 145 cents per share in FY 2021 and then 163 cents per share in FY 2022. Based on the latest ANZ share price of $27.85, this represents yields of 5.2% and 5.85%, respectively.

Scentre Group (ASX: SCG)

Another ASX dividend share that has been recently tipped as a buy is Scentre. This is due to its strong position in the retail market, improving trading conditions, and its exposure to inflation.

In respect to the latter, Goldman Sachs notes that Australian inflation expectations are currently at their highest level since 2015. This is a big positive for Scentre due to the company being far more positively leveraged to inflation than any other Australian real estate investment trust under the broker’s coverage.

Goldman estimates that 70%+ of its base rental income is subject to inflation-linked escalation, which bodes well in the current environment. The broker also highlights that higher inflation aids the profitability of its retailer tenancy base, which benefits from fixed cost leverage.

Its analysts have a buy rating and $3.46 price target on the company’s shares. Goldman is also forecasting dividends of 14 cents per share in FY 2021 and then 17 cents per share in FY 2022. Based on the latest Scentre share price of $2.86, will mean yields of 4.9% and 5.9%, respectively.

The post 2 buy-rated ASX dividend shares with generous yields appeared first on The Motley Fool Australia.

More reading

• It has been a big past year for the ANZ (ASX:ANZ) share price
• NAB (ASX:NAB) share price up following prediction of no rate hike until 2024
• ANZ (ASX:ANZ) share price takes the cake among big four bank shares
• 2 highly-rated ASX dividend shares for income investors in July
• Forget CBA! Here are the 5 best performing ASX bank shares of FY21

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has 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.

from The Motley Fool Australia https://ift.tt/3husKjw