The Australia and New Zealand Banking Group Ltd (ASX: ANZ) share price has risen by around 6% over the last six months.

Could there be more on the way?

ANZ’s most recent result

For the first half of the 2021 calendar year, Australia was almost entirely COVID-19 free. The economy was recovering and ANZ was reporting a resurgence of profit.

In the first six months of ANZ’s 2021 financial year to 31 March 2021, the big four ASX bank generated $2.94 billion of statutory profit after tax, which was an increase of 45% compared to the second half of FY20. Continuing operations cash profit increased 28% to $2.99 billion.

However, underlying profit (excluding credit impairment, tax and large items) fell 4% to $4.87 billion.

ANZ noted that improving credit conditions resulted in a release of almost $500 million during the half. While the pandemic hasn’t resulted in large credit losses to date, it still has almost $4.3 billion in reserve if conditions get worse.

Management said that lower revenue in its institutional business were largely expected due to the impact of falling interest rates as well as the normalisation of its market revenue after an exceptionally strong 2020.

The recovery of the headline profit allowed the ANZ board to increase the half-year dividend from $0.35 to $0.70 per share.

The ANZ share price fell 3.5% in the week after the release of this result.

Capital management

ANZ revealed in July 2021 that it intended to buy back up to $1.5 billion of shares on market as part of its capital management plan.

The ANZ Chair Paul O’Sullivan said:

Despite the very real challenges being experienced by many of our customers, we have the financial strength to continue to support our customers, while also returning surplus capital to shareholders. After reviewing options, we consider an on-market buy-back to be the most prudent, fairest and flexible method to return capital in the current environment.

Our capital position may allow future capital returns to be considered, however we will continue to focus on balanced and prudent outcomes for all stakeholders.

Is the ANZ share price worth looking at?

Morgans says that ANZ is a buy, with a price target of $34.50. That suggests the bank could rise by more than 20% over the next 12 months if the broker is right. The broker thinks there could be more capital returns to shareholders in time.

However, Morgan Stanley only thinks that ANZ shares are a hold with a price target of $28 whilst noting that the bank’s capital position was a lot stronger. On Morgan Stanley’s numbers, ANZ is valued at 15x FY22’s estimated earnings.

The post The ANZ share price has gained 6% in the last 6 months appeared first on The Motley Fool Australia.

More reading

• 2 buy-rated ASX dividend shares for income investors
• ANZ (ASX:ANZ) share buyback, what does it mean for you?
• Is the ANZ (ASX:ANZ) share price a buy right now?
• Here’s what has been moving the ANZ (ASX:ANZ) share price in August 2021
• What’s moving the ASX 200 Index (ASX:XJO) on Monday?

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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If you’re wanting to invest in the small side of the Australian share market, then the two small caps listed below could be worth a closer look.

They are growing quickly and could have very bright futures ahead of them.

Here’s why these small cap ASX shares could be worth adding to your watchlist:

BlueBet Holdings Ltd (ASX: BBT)

The first small cap ASX share to watch is BlueBet. It is a mobile-first online wagering provider. It allows users to bet on all Australian and international racing and sports through its website and app. BlueBet has been growing very strongly thanks to the increasing popularity of mobile sports betting.

This led to the company doubling its customer numbers over the last 12 months, which has underpinned strong wagering turnover growth.

The good news is that the company is only really getting started. And positively, management appears confident it is well positioned to substantially grow its current ~1.2% share of the market in Australia. It has also been making inroads into the massive US market which is just beginning to open up.

Damstra Holdings Ltd (ASX: DTC)

Another small cap ASX share to watch is Damstra. It is a growing integrated workplace management solutions provider which provides a cloud-based workplace management platform that is used by businesses globally.

Damstra’s platform allows users to track, manage, and protect their workers and assets. Demand has been growing strongly in recent years and has continued in FY 2021.

For example, last week the company released its full year results and revealed a 63% increase in annual recurring revenue (ARR) to $34.5 million. This was driven by a 74% increase in user numbers to 737,000.

And while no guidance was given for the year ahead, management spoke positively about the future. It notes that it has multiple growth options that are being driven via tailored strategies and routes to market.

The post 2 growing small cap ASX shares appeared first on The Motley Fool Australia.

More reading

• Damstra (ASX:DTC) share price slumps 5% despite revenue surge
• 3 small cap ASX shares investors should watch very closely
• The Damstra Holdings (ASX:DTC) share price is up 50% in a month!
• Top brokers name 3 ASX shares to buy today
• Why Accent, Bluebet, IAG, & Megaport shares are tumbling lower

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 Damstra Holdings Ltd. The Motley Fool Australia owns shares of and has recommended Damstra Holdings Ltd. The Motley Fool Australia has recommended BlueBet 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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The Woodside Petroleum Limited (ASX: WPL) share price has moved mostly sideways since the beginning of the year, down 10%.

Undoubtedly, COVID-19 has weighed heavily on oil prices as the world attempts to restart the economy.

Woodside deals in the energy industry, supplying oil and liquified natural gas (LNG) to its customers. The spot price of oil and LNG contracts heavily affects the company’s share price.

At one point in 2020, the spot price of oil went into negative territory, a first in the history books. However, the commodity has since somewhat recovered.

The West Texas Intermediate (WTI) is currently fetching US$68.41 per barrel, up 1.47% for today. In addition, its more expensive brother, Brent crude, is trading for $72.11, up 1.46%.

WTI is sourced from oil fields in the United States and is lighter due to its low density and low sulphur content. Brent crude on the other hand is sourced from the North Sea between the Shetland Islands and Norway, and is popular to refine into diesel fuel and gasoline.

What would have happened to your Woodside investment in 10 years?

If you had invested $1,000 in Woodside shares in 2011, you would have bought them for around $35.48 each. This would have given you approximately 28 shares.

Looking at today’s closing price, Woodside shares are trading at $20.28. This means those 28 shares would now be worth a paltry $567.84 (28 shares x $20.28). When considering percentage terms, this implies a decline of around 43%, or a yearly average loss of 5.50%.

This is a mammoth fall, particularly considering the S&P/ASX 200 Index (ASX: XJO) has headed the other way with an average of 5.96% per annum over the last 10 years.

Are Woodside shares a buy?

Since the release of Woodside’s FY21 half-year result, a few brokers have weighed in on the company’s share price.

Swiss investment firm UBS cut its price target for Woodside shares by 5% to $24.80. Citi followed suit to also reduce its rating by 11% to $21.55. The most recent broker note came from Macquarie, which has initiated a bullish price of $27.60 for the energy producer’s shares.

Based on the current Woodside share price, Macquarie’s 12-month price target implies an upside of roughly 36%.

Over the past 12 months, Woodside shares have failed to make any significant movements, up 8%. Year-to-date, however, the company’s shares are down about 3%.

Woodside commands a market capitalisation of roughly $21.2 billion, with 963 million shares on its registry.

The post If you invested $1,000 in Woodside (ASX:WPL) shares a decade ago, here’s what it would be worth now appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Friday
• 5 things to watch on the ASX 200 on Thursday
• It hasn’t been a great month so far for the Woodside (ASX:WPL) share price
• Energy sector leading the ASX 200 shares on Tuesday
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Aaron Teboneras owns shares of Woodside Petroleum Ltd. 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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Are you interested in adding some ASX growth shares to your portfolio in September? If you are, you may want to look at the ones listed below that have recently been named as buys.

Here’s what you need to know about them:

Breville Group Ltd (ASX: BRG)

The first ASX growth share to look at is Breville. It is the leading appliance manufacturer behind a number of popular brands. Breville was on form again in FY 2021 and recently reported a 24.7% increase in revenue to $1,187.7 million and a 39.6% jump in earnings before interest and tax (EBIT) to $136.4 million. The latter was ahead of management’s upgraded EBIT guidance of $136 million.

In response to its results, UBS retained its buy rating and $35.70 price target on its shares. It appears confident its solid growth can continue for some time to come.

IDP Education Ltd (ASX: IEL)

Another ASX growth share to look at is IDP Education. It is a provider of international student placement services and English language testing services. For obvious reasons, the company’s operations have been hit hard by the pandemic. However, its language testing business has been particularly resilient and appears exceptionally well-positioned for growth over the long term thanks to market share gains and acquisitions.

Goldman Sachs is very positive on the company’s prospects. Last week it put a buy rating and $34.00 price target on its shares. Goldman is forecasting a compound annual growth rate (CAGR) of a 69% for its earnings over the next three years.

Nitro Software Ltd (ASX: NTO)

A final growth share to look at is Nitro Software. It is a software company that is aiming to drive digital transformation in organisations around the world. Its key solution is the Nitro Productivity Suite, which provides integrated PDF productivity and electronic signature tools to customers. Demand has been growing rapidly in recent years and has continued in FY 2021. For example, Nitro has just released its half year results and reported a 56% increase in annual recurring revenue (ARR) to $33.8 million.

Morgan Stanley was pleased with its half year results. In response, the broker retained overweight rating and $3.70 price target on Nitro’s shares.

The post 3 excellent ASX growth shares to buy in September appeared first on The Motley Fool Australia.

More reading

• IDP Education (ASX:IEL) share price tipped by broker to jump 17%
• Here are the 3 heaviest trading ASX 200 shares this Thursday
• IDP Education (ASX:IEL) share price higher despite 36% FY21 profit decline
• 2 rapidly growing ASX shares rated as buys
• Nitro Software (ASX:NTO) share price flat after 1H21 results

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 Idp Education Pty Ltd. The Motley Fool Australia has recommended Nitro Software 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 Afterpay Ltd (ASX: APT) share price has finished the trading week with more of a fizzle than a bang.

Afterpay shares slid well into the red in the latter part of the week after the buy now, pay later (BNPL) company reported its FY21 earnings on Wednesday.

At the market close today, the Afterpay share price was trading down 1.71% at $130.16. This was just 0.5% higher than last Friday’s closing price.

The main takeaway from the company’s FY21 report included a 13% decrease in earnings before interest, tax, depreciation and amortisation (EBITDA) and a statutory after-tax loss of around $160 million.

This was despite a 90% year on year growth in sales revenue and almost 80% gain in total income.

What did Afterpay’s co-CEO say?

Afterpay co-founder/CEO Nick Molnar defended the statutory loss on Bloomberg TV on Wednesday, saying many non-cash items were essentially one-offs. This included the revaluation of the company’s minority interest in a UK entity.

Molnar added that it was unsurprising to see a minor slowdown in customer growth in Australia versus other markets, given the company’s maturity in the ANZ market in FY21. In contrast, Afterpay saw more than 100% customer growth in its US segment over the past 12 months.

Moreover, he said Afterpay continued to see “top-line” revenue growth as “frequency does continue to accelerate” in the Australian market, in addition to its other segments.

What about the Square Inc deal?

Regarding Square Inc’s impending acquisition of Afterpay, Molnar said the focus was to “align values and principles”, with Square starting from the same fundamentals as Afterpay.

The BNPL company’s top executive said the prospects were “really exciting”. This included the ability to “leverage millions of retailers” (Square’s sellers) and more than 70 million users on Square’s cash app, to accelerate its growth in North America and the globe.

However, Molnar added that Afterpay’s push was as much of a marketing play as it was in retail, as the company sent “over a million leads a day” to its retail partners over the last year.

According to Molnar, this differentiated the company as not just a “payments infrastructure” provider. It was also a “marketing engine” to the hard to reach Millennial and Gen Z consumers.

Afterpay share price snapshot

The Afterpay share price has had a choppy year to date, posting a gain of 10% since January 1. Despite this, Afterpay shares have climbed 43% into the green over the last 12 months.

This result has outpaced the S&P/ASX 200 index (ASX: XJO)’s return of around 23% over the last year.

The post Afterpay (ASX:APT) share price slips as CEO spruiks company’s new direction appeared first on The Motley Fool Australia.

More reading

• How does Afterpay (ASX:APT) earnings result compare to Zip?
• ASX 200 rises, WiseTech soars, Zip drops
• Got Afterpay (ASX:APT) shares? Here’s what to look out for in FY22
• How does the Afterpay (ASX:APT) result compare with broker expectations?
• ASX 200 midday update: WiseTech rockets, Afterpay & Zip report

The author Zach Bristow has no positions 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. The Motley Fool Australia owns shares of and has recommended AFTERPAY T 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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Week four of reporting season was jam-packed with another large number of results. Some good, some bad.

Among the best results of the week were the three listed below. Here’s what happened:

Nanosonics Ltd (ASX: NAN)

The Nanosonics share price was a strong performer last week after investors responded very positively to its full year results release. For the 12 months ended 30 June, the infection prevention specialist reported a 3% increase in revenue to $103.1 million and a 15% decline in net profit after tax to $8.6 million. While this may not initially look impressive, its profits were actually significantly ahead of estimates. This was driven by a strong recovery in the second half. Pleasingly, management expects its recovery to continue in FY 2022. It is guiding to double-digit revenue growth in FY 2022. But arguably getting investors the most excited was the announcement of another new product – Nanosonics Coris. This new platform, which is expected to be launched in calendar year 2023, is for cleaning flexible endoscopes.

Sonic Healthcare Limited (ASX: SHL)

The Sonic share price edged higher last week the release of its exceptionally strong full year results. For the 12 months ended 30 June, the healthcare company delivered a 28% increase in revenue to $8.8 billion and a 149% lift in net profit to $1.3 billion. This was driven largely by strong demand for COVID-19 testing services. However, its base business (non-COVID testing operations) also contributed, delivering a 6% increase in revenue for the period.

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price was on fire last week after it smashed its earnings guidance in FY 2021. The logistics solutions platform provider reported an 18% increase in revenue to $507.5 million and a 63% jump in EBITDA to $206.7 million. This compares to its upgraded guidance for revenue of $470 million to $510 million and EBITDA of $165 million to $190 million. Pleasingly, more strong growth is expected in FY 2022. Management is guiding to EBITDA growth of 26% to 38% for the year ahead.

The post 3 top ASX results from week four of reporting season appeared first on The Motley Fool Australia.

More reading

• These were the best performing ASX 200 shares last week
• Sonic Healthcare (ASX:SHL) share price hits record high at $43.43
• Top brokers name 3 ASX shares to sell today
• ASX 200 rises, WiseTech soars, Zip drops
• Top broker gives its verdict on the Nanosonics (ASX:NAN) 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. owns shares of and has recommended Nanosonics Limited and WiseTech Global. The Motley Fool Australia owns shares of and has recommended Nanosonics Limited and WiseTech Global. The Motley Fool Australia has recommended Sonic Healthcare Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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If you’re an income investor on the lookout for dividend options, then you may want to look at the two listed below.

Here’s what you need to know about them:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

The first ASX dividend share for income investors to look at is banking giant ANZ.

Thanks to its positive outlook due to improving trading conditions and cost reductions, it could be a top option for income investors. In respect to the latter, ANZ aiming to reduce its cost base materially to $8 billion in the near future.

Another positive is its strong capital position. At the end of the third quarter, ANZ’s CET1 ratio stood at 12.2%. This is significantly higher than APRA’s unquestionably strong benchmark of 10.5%, giving the bank plenty of opportunities to return funds to shareholders. For example, ANZ’s recently announced $1.5 billion share buyback is only expected to reduce its CET1 ratio by 35 basis points.

Analysts at Morgans are bullish on the bank. They currently have an add rating and $34.50 price target on ANZ’s shares.

In addition, the broker is forecasting fully franked dividends of 145 cents per share in FY 2021 and then 165 cents per share in FY 2022. Based on the latest ANZ share price of $28.32, this represents yields of 5.1% and 5.8%, respectively.

Transurban Group (ASX: TCL)

Another ASX dividend share to look at is this toll road operator.

Transurban has a world class portfolio of important toll roads throughout Australia and North America. These include the CityLink in Melbourne, Cross City Tunnel in Sydney, and the AirportlinkM7 in Brisbane.

Lockdowns have inevitably hit the company hard. But with the vaccine rollout going well, it may not be long until its roads are full of traffic again.

Ord Minnett remains very positive on the company. Its analysts currently have a buy rating and $15.50 price target on its shares.

As for dividends, the broker is forecasting dividends of 36.5 cents per share in FY 2022 and then 48.4 cents per share in FY 2023. Based on the current Transurban share price of $14.08, this will mean yields of 2.6% and 3.5%, respectively.

The post 2 buy-rated ASX dividend shares for income investors appeared first on The Motley Fool Australia.

More reading

• ANZ (ASX:ANZ) share buyback, what does it mean for you?
• 2 quality ASX dividend shares rated as buys this month
• Is the ANZ (ASX:ANZ) share price a buy right now?
• Here’s what has been moving the ANZ (ASX:ANZ) share price in August 2021
• What’s moving the ASX 200 Index (ASX:XJO) on Monday?

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.

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The BHP Group Ltd (ASX: BHP) share price has registered modest gains over the past few years. This comes despite the world’s second-largest miner suffering a few hiccups along the way.

Nonetheless, BHP shares have created wealth for investors who bought and held their shares over the long term.

What’s happening with BHP in 2021?

Since the start of the year, the BHP share price has posted a return of just over 5%.

The mining giant’s shares took a massive hit last week following the release of the company’s full-year results, tanking 15%.

BHP recorded a strong underlying performance for the period. However, investors were unimpressed by the miner’s scorecard and merger plans with Woodside Petroleum Limited (ASX: WPL).

The hype around BHP shares quickly fell from a near-record high of $53 to a 6-month low of $43.88.

In addition, the spot price for iron ore fell heavily from mid-July to US$139.50 per tonne, adding to BHP’s woes. Although, it’s worth noting there has been an uptick in the steel-making ingredient prices over the last few days.

How much would you have if you invested $1,000 10 years ago?

If you invested $1,000 into BHP shares in 2011, you would have picked them up for approximately $35.47 apiece. This equates to about 28 shares without reinvesting the dividends.

Fast-forward to today, the closing BHP share price is at $44.70. This means those 28 shares would be worth $1,251.60 (28 shares x $44.70).

When looking at percentage terms, this is a 25.16% increase or an average yearly return of 2.27%. In comparison, the S&P/ASX 200 Index (ASX: XJO) has given back roughly 5.96% over the same timeframe.

Is the BHP share price a buy?

A couple of brokers rated the company with varying price points after providing its full-year results to the market.

Australian investment bank Macquarie cut its 12-month price target by 3.3% to $58 for BHP shares. This implies an upside of around 30% based on the current BHP share price of $44.70.

More in line with the present value of BHP shares, Morgans raised its rating by 0.9% to $45.90.

BHP commands a market capitalisation of roughly $132.3 billion, making it the third largest company on the ASX.

The post If you invested $1,000 in BHP (ASX:BHP) shares a decade ago, here’s what it would be worth now appeared first on The Motley Fool Australia.

More reading

• BHP (ASX:BHP) share price flat despite rebound in iron ore prices
• BHP (ASX:BHP) share price lifts despite credit downgrade risk
• BHP (ASX:BHP) share price free falls in August, analysts say iron ore pressures will persist
• How do BHP (ASX:BHP) earnings compare to Woodside Petroleum’s?
• Pilbara Minerals (ASX:PLS) share price bounces back, up 8% on Monday

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia 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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It was a good week for the S&P/ASX 200 Index (ASX: XJO) last week. The benchmark index rose 27.4 points or 0.4% over the five days to end the period at 7,488.3 points.

While a good number of shares climbed higher with the market, some climbed more than most. Here’s why these were the best performers on the ASX 200 last week:

WiseTech Global Ltd (ASX: WTC)

The WiseTech share price was the best performer on the ASX 200 last week with a massive 29.3% gain. Investors were scrambling to buy the logistics solutions company’s shares following the release of its full year results for FY 2021. For the 12 months ended 30 June, WiseTech reported an 18% increase in revenue to $507.5 million and a 63% jump in EBITDA to $206.7 million. This compares favourably to its guidance for full year revenue of $470 million to $510 million and EBITDA of $165 million to $190 million. Looking ahead, management’s guidance for FY 2022 is EBITDA growth of 26% to 38% in FY 2022.

Blackmores Limited (ASX: BKL)

The Blackmores share price wasn’t far behind with a 28.4% gain last week. This was driven by the release of the health supplements company’s full year results. For the 12 months ended 30 June, Blackmores reported a 1.3% increase in revenue to $575.9 million and a 51.7% jump in underlying net profit after tax to $25.4 million. This went down well with analysts at Credit Suisse. In response, the broker upgraded its shares to a buy rating with a $100.00 price target.

Clinuvel Pharmaceuticals Limited (ASX: CUV)

The Clinuvel share price was a very strong performer last week and rose 25.8%. Investors were buying the biopharmaceutical company’s shares after a leading broker responded positively to its full year results. In respect to the latter, in FY 2021 Clinuvel reported a 43% increase in revenue to $48.5 million and a 63.5% jump in net profit after tax to $24.7 million. This led to analysts at Jefferies upgrading the company’s shares to a buy rating with a $36.80 price target.

Flight Centre Travel Group Ltd (ASX: FLT)

The Flight Centre share price was on form and charged 22.9% higher over the five days. This was despite the travel agent posting another large loss in FY 2021. For the 12 months ended 30 June, the company reported a 74.2% decline in total transaction value (TTV) to $3,945 million and an underlying loss after tax of $364 million. However, the company’s outlook gave its shares a major boost. Management advised that it believes Flight Centre can reach profitability in FY 2022.

The post These were the best performing ASX 200 shares last week appeared first on The Motley Fool Australia.

More reading

• These were the worst performing ASX 200 shares last week
• It has been a great week for the Webjet (ASX:WEB) share price
• ASX 200 flat, Wesfarmers drops, Nextdc declines
• Is the Flight Centre (ASX:FLT) share price good value?
• These 3 ASX 200 shares were flying around the share market this Friday

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 WiseTech Global. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and WiseTech Global. The Motley Fool Australia has recommended Flight Centre Travel 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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There are a few quality ASX shares that could be worth looking at this weekend.

Businesses that are growing quickly and have long-term growth plans may be ones to consider. Companies in the tech space or have international growth potential could be able to produce good returns over time.

Here are two ASX shares to think about:

Adore Beauty Group Ltd (ASX: ABY)

This business is a large beauty focused e-commerce website that sells over 10,000 products from more than 260 brands. It currently operates in Australia and New Zealand. The Adore Beauty share price has fallen 6.5% over the last two weeks.

The ASX tech share is going to report its result next week. It’s expecting to report a lot of revenue growth. The guidance is for revenue to grow between 43% to 47%.

When Adore Beauty released its FY21 third quarter, it said that it continues to see a structural shift in consumer behaviour towards online retail, based on continued strong retention of customers acquired during the COVID-19 lockdown.

In that third quarter, it delivered revenue of $39.4 million, which was an increase of 47% on the third quarter of FY20.

The FY21 growth, in percentage terms, is expected to be more than FY20’s growth rate.

Adore Beauty says it continues to invest with discipline to drive revenue growth and expand its online leadership position.

The beauty and personal care market in Australia is worth $11.2 billion and is expected to grow at a compound annual growth rate of 26% to 2024. Online sales only make up 11.4% of this market, a lower rate compared to markets like the US and the UK.

Management are expecting operating leverage as it gets bigger because of the largely fixed nature of its cost base.

Magellan Financial Group Ltd (ASX: MFG)

The Magellan share price has fallen 16% over the last month. This is a large funds management business that predominately invests in global shares on behalf of investors. But it also has strategies focused on infrastructure businesses and Australian shares too.

The ASX share diversified its business further in FY21 by making a few external investments into businesses such as Barrenjoey, FinClear and Guzman y Gomez. It was the start-up expenses of investment bank Barrenjoey that caused the Magellan’s FY21 statutory profit to fall 33% to $265.2 million.

However, the core business continues to see profit and profitability rise. Magellan’s average funds under management increased by 9% to $103.7 billion. This helped profit before tax and performance fees of the funds management business rise by 10% to $526.6 million.

Magellan launched a number of other funds and strategic initiatives that may help grow FUM further. Those included the MFG core series, the Magellan sustainable fund and the Magellan FuturePay (retirement) product.

The fund manager’s FUM had grown to $117 billion by the end of July 2021.

Magellan is currently rated as a buy by the broker Morgans with a price target of $54.85. Using the broker’s projections, it is valued at 16x FY23’s estimated earnings with a partially franked dividend yield of 5.8%.

The post 2 quality ASX shares to look at this weekend appeared first on The Motley Fool Australia.

More reading

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• Analysts rate these ASX tech shares as buys
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Motley Fool contributor Tristan Harrison owns shares of Magellan Financial Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. 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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