With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

Three top ASX shares that leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

Beach Energy Ltd (ASX: BPT)

According to a note out of Macquarie, its analysts have retained their outperform rating and lifted the price target on this energy producer’s shares to $2.10. While the broker acknowledges that there are risks relating to its Western flank oil production at the moment, it overlooks this due to the long term potential of its growing gas business. In addition, the broker notes that arbitration has ruled in favour of Beach Energy and guaranteed higher prices at the Otway Gas project for the next three years. The Beach Energy share price is fetching $1.76 on Monday afternoon.

DEXUS Property Group (ASX: DXS)

A note out of Morgan Stanley reveals that its analysts have upgraded this property company’s shares to an overweight rating with an improved price target of $11.70. According to the note, the broker believes that demand for office space won’t fall as much as feared and suspects that rental weakness could be bottoming now. Looking ahead, it feels that signs of improvement could lead to a re-rating of its shares to higher multiples. The DEXUS share price is trading at $10.29 on Monday.

Goodman Group (ASX: GMG)

Another note out of Macquarie reveals that its analysts have retained their outperform rating and $20.39 price target on this commercial property company’s shares. According to the note, the broker has been looking at its US operations. It notes that there are significant developments planned in the market which have a lot of potential. Outside this, the broker appears to believe Goodman is well-placed for growth and feels that the risks to its earnings are to the upside right now. The Goodman share price is fetching $19.03 this afternoon.

More reading

• ASX 200 edges higher, Origin crunched, Mineral Resources falls
• The Monadelphous (ASX:MND) share price surges as Rio Tinto (ASX:RIO) overhang lifts
• ASX 200 down 0.2%: Origin sinks on earnings downgrade, gold miners charge higher
• 3 ASX shares to buy for the real estate explosion
• 5 things to watch on the ASX 200 on Thursday

Motley Fool contributor James Mickleboro 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Bloomberg is reporting that Amazon (NASDAQ: AMZN), the king of e-commerce, is getting more aggressive with its physical retail investments. Sources told the news outlet the company plans to open 28 new Amazon Fresh stores across the U.S. this year, adding to its 11 current locations. Amazon Fresh is a supermarket concept that, according to the company, offers high-quality food at low prices with an integrated offline and online experience.

Should investors in grocery companies like Kroger (NYSE: KR), Walmart (NYSE: WMT), and Sprouts Farmers Market (NASDAQ: SFM) be worried about Amazon’s new brick-and-mortar venture? Let’s take a look.

The Amazon Fresh concept

To elaborate, this is a new grocery store concept that is trying to create a seamless offline and online experience by bringing Amazon’s e-commerce expertise to physical locations. The stores offer free same-day grocery delivery for Amazon Prime members, integration with Alexa to manage shopping lists, and for those who shop in person, the ability to skip checkout lines by using Amazon Dash Cart. All in all, it looks like a standard supermarket with some technology layered on top that could potentially improve the shopping experience for customers.

Amazon’s currently open supermarkets are located in California and Illinois. If these and the planned new stores are successful, you can expect their numbers to grow significantly over the next few years.

Which companies could this hurt?

Whenever Amazon or any company with a lot of capital enters a new business or niche, it is important to look at what other businesses it could impact. With Amazon Fresh, this means others supermarkets. Every grocery chain, including Kroger, Sprouts Farmers Market, and Grocery Outlet (NASDAQ: GO), as well as general merchandise retailers such as Walmart and Target (NYSE: TGT), will be watching to see if Amazon Fresh gains traction with consumers.

The most vulnerable companies to Amazon Fresh would be cost- and health-focused supermarkets like Sprouts Farmers Market, Trader Joe’s, and local food co-ops. These outlets target health-conscious consumers looking for something beyond the standard grocery experience, which is exactly the audience Amazon appears to be going after first with this supermarket concept.

Why investors shouldn’t worry

Amazon entering the brick-and-mortar grocery business is not something to scoff at. However, investors should remember that grocery represents a gigantic market with an estimated 38,000 stores and $700 billion spent on groceries in the U.S. each year. So even if the company opens 1,000 Amazon Fresh locations over the next decade, that would leave plenty of market share for the incumbent grocers.

Lastly, Amazon has a history of poor performance when experimenting with physical retail concepts. Its acquisition of Whole Foods in 2017 didn’t disrupt the market like many expected. In fact, many people would argue the Whole Foods experience has gotten worse since the chain was acquired by Amazon since it seems like stores are optimized for delivery and fulfillment — to the detriment of the in-store experience. Its other test concepts like Amazon Go and Amazon 4-Star haven’t gotten much traction (at least, not yet). That could change with Amazon Fresh, but if history is any guide, investors shouldn’t rush to sell their grocery store stocks just because Amazon has designs on becoming a competitor. 

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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• Analyst: Amazon still has a 70% upside potential over three years
• The stock that I’d hold for the next 5 years: fundie
• Tesla and Palantir were some of the most popular US shares last week

Brett Schafer owns shares of Sprouts Farmers Markets. John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and recommends the following options: long January 2022 $1920 calls on Amazon and short January 2022 $1940 calls on Amazon. The Motley Fool Australia has recommended Amazon. 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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In 2021, the Westpac Banking Corp (ASX: WBC) share price has performed better than any of the other big four banks. Since the beginning of January, its value has appreciated by a tidy 29.3%.

In comparison, Australia and New Zealand Banking GrpLtd (ASX: ANZ) is up 25.2%, National Australia Bank Ltd. (ASX: NAB) is 16.6% higher, and the Commonwealth Bank of Australia (ASX: CBA) share price is only 5.8% greater.

Today, at the time of writing, the Westpac share price is up 0.2%. By contrast, the S&P/ASX 200 Index (ASX: XJO) is 0.34% higher.

Let’s take a closer look at some of the major stories this year that have had a material impact on the Westpac share price.

What’s affected the Westpac share price in 2021?

First quarter FY21 results

After revealing an approximate 200% growth in net profits after tax for the quarter, compared to the previous reporting period at the end of FY20, the Westpac share price jumped 5%. Profits grew because of an impairment benefit of $501 million from improved credit quality, stronger economic outcomes and a better economic outlook.

In the report, the bank reported cash earnings of nearly $2 billion – up 54% excluding notable items. Notable items included provisions for AUSTRAC proceedings, refunds, payments, costs and litigation, write-down of intangibles and asset sales and revaluations.

Of course, it should be noted Westpac’s revenues and profit margins in FY20 were severely impacted by the economic effects of the COVID-19 pandemic. By the time of the update, Westpac reported consumer delinquencies over 90 days, and mortgage deferrals were down compared to the previous quarter.

Bullish broker ratings

Another factor influencing the strong growth in the Westpac share price are the buy ratings placed on the bank by leading stockbrokers.

Citi, JP Morgan, and Goldman Sachs all have buy ratings on Australia’s second-largest bank by market capitalisation. JP Morgan expects the Westpac share price to hit a 52-week high of $27.50.

Projected dividend yield

CommSec is projecting Westpac to pay a fully franked dividend of $1.09 per share. In FY20, Westpac only paid a dividend of 31 cents per share.

JP Morgan is even more optimistic. The broker expects Westpac to pay an even larger dividend of $1.32 per share. If that were the case, it would be excellent news for the Westpac share price.

APRA finishes investigation into Westpac

In early March, the Australian Prudential Regulation Authority (APRA) announced it was closing its 3-month investigation into the bank over allegations it had breached anti-money laundering and counter-terrorism laws. The government authority found no evidence the bank had breached these laws. The news saw a lift in the Westpac share price.

It did, however, impose several restrictions on the bank. These include a court enforceable undertaking to implement an integrated risk governance remediation plan and a $1 billion operational risk capital add-on.

New Zealand demerger

In response to enquiries by the Reserve Bank of New Zealand (RBNZ) over risk governance and liquidity risk management, Westpac announced it was looking into possibly demerging its New Zealand arm from its main operations.

Goldman Sachs reviewed the impacts of a potential demerger and still set a price target of $25.94. That’s 2.16% higher than the current Westpac share price.

More reading

• Commonwealth Bank (ASX:CBA) CEO hits out at Afterpay and BNPL providers
• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• 2 ASX dividend shares with generous yields in 2021
• Which big 4 ASX bank is going to pay the biggest dividend in FY21?
• This underperforming ASX large cap is sitting on a ~10% dividend yield

Motley Fool contributor Marc Sidarous 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 CV Check Ltd (ASX: CV1) share price has been a disappointing performer on Monday.

In afternoon trade, the screening and verification services provider’s shares are down 7% to 13 cents.

This is actually a big improvement from earlier in the day. During morning trade the CV Check share price was down as much as 18% to 11.5 cents.

Why is the CV Check share price crashing lower?

Investors have been selling CV Check shares on Monday after the release of a surprise announcement this morning relating to its leadership.

According to the release, the company’s CEO and Executive Director, Rod Sherwood, has announced his resignation for personal reasons and has immediately stood down from regular duties.

However, Mr Sherwood will remain available to assist CV Check through the transition period, if necessary.

In the meantime, the company’s Independent Chair, Mr Ivan Gustavino, will be acting as Executive Chair whilst the company undertakes a widespread search for a CEO to take it on the next stage of its journey.

What now?

Mr Sherwood believes that the company is in ideal shape and primed for growth, making now an opportune time to step away.

He said: “I am immensely proud to have led The Company over the past four and a half years. Having just completed the Bright transaction, the Company is now in ideal shape, with record revenues, primed for growth with exciting new opportunities available and $14.8m in cash as at the end of March.”

“The next few months will offer the CV1 group a time for an inward focus as the CVCheck and Bright businesses get to know each other and successfully integrate and align. This is a time for change and renewal, which affords the ideal opportunity for me to step away from the business and allow CV1 group time to search for a new CEO who will lead it into the promising future I know lies ahead. I will, of course, be available to assist the Company through the transition, if required.”

Mr Gustavino spoke positively about the outgoing CEO’s tenure and the company’s outlook.

He said: “Rod has served The Company for almost 10 years, putting a great deal of energy and effort into steering the Company to an ideal position for future growth. He departs with the great thanks and best wishes of all in the Company. The board is confident it has the management structure and organisational resilience to continue our record of organic growth whilst the Board recruits a new CEO.”

More reading

• Why the CV Check (ASX:CV1) share price will be on watch this morning

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended CV Check 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 Province Resources Ltd (ASX: PRL) share price is storming higher today as the company announced a new, global green hydrogen project.

Shares in the small-cap natural resources company have been surging higher in recent times, reaching an all-time high of 20 cents this morning.

Currently, the Province Resources share price is sitting at 18 cents, up 24.14% on Friday’s close.

Green hydrogen

Dubbed the ‘fuel of the future’, green hydrogen has been part of a global thematic that has “seen billions of dollars of invested capital” flow into the industry. According to an ABC report, the estimated potential demand for imported hydrogen in China, Japan, South Korea and Singapore alone could reach $9.5 billion by 2030.

Nonetheless, as the article explains, hydrogen still has caveats. Hydrogen is so small that it can escape through solid steel, meaning new piping systems would have to be developed. Moreover, it is one of the most flammable gases on the planet.

Total Eren partnership

Returning from its trading halt today, Province Resources announced that it had signed an agreement with France-based company Total Eren. Signed on 16 April, the binding memorandum of understanding (MoU) is to perform a feasibility study in the view of potentially developing a major green hydrogen project.

The project, earmarked for the Gascoyne region of Western Australia, will be equally owned by the two companies. However, it is conditional on the feasibility study which will be completed in approximately 4 months.

The project will be developed in two stages totalling up to 8 Giga Watts in installed renewable energy capacity. 

From the management

Commenting on the news, Province Resources managing director David Frances said:

Given the recent drive by state and federal governments to quickly develop and advance the green hydrogen industry in Australia, I am confident this project will be of strategic national importance.

Province is excited to have a global renewable energy leader such as Total Eren as a partner with the technical and financial capability to help Province deliver this project as part of the backbone of the nation’s hydrogen strategy.

So what

Total Eren is an independent power producer from renewable energy sources with more than 3.3 Giga Watts of renewable energy plants worldwide. In Australia, the company owns Victoria’s largest solar farm.

Regarding the news, the Province Resources share price has flown higher, gaining an impressive 24.14% at the time of writing.

More reading

• Why the Province Resources (ASX:PRL) share price is up 12%
• Province Resources (ASX:PRL) share price slides despite hitting next project milestone

Motley Fool contributor Daniel Ewing 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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Seven Group Holdings Ltd (ASX: SVW) shares entered into a trading halt today after the company announced a $500 million capital raising. At Friday’s close, the Seven share price was changing hands at $23.43.

The company has advised its shares are expected to remain in a trading halt until Wednesday 21 April or until an announcement regarding the capital raise.  

Why the Seven Group share price will be one to watch 

The Seven share price will be in focus when it resumes trading. This comes following the group’s announcement it is pursuing a $500 million capital raising via an institutional placement and share purchase plan. The reasons provided by Seven for the capital raising are to allow for greater balance sheet flexibility and reduce the company’s net debt position to support portfolio growth opportunities across key verticals.  

Seven will be using proceeds of the cap raise to reduce overall debt from $2.6 billion to $2.1 billion, facilitating the retirement of more costly facilities that bear interest rates of 5.60%. 

The new shares will be issued at $22.50 per share, a 4.0% discount to its closing price of $23.43 on 16 April. 

It will be interesting to see whether or not the small discount will affect the Seven Group share price when it resumes trading on Wednesday. 

Seven Group overview

Investors often immediately think of Chanel Seven or Seven West Media Ltd (ASX: SWM) when thinking about Seven Group shares. Seven Group owns 40% of Seven West Media, alongside a number of businesses in the industrial and energy sectors. 

The company owns 100% of WestTrac, a leading Caterpillar dealer which supports Australia’s rich iron ore and thermal coal regions. WestTrac’s key customers include ASX iron ore majors BHP Group Ltd (ASX: BHP), Fortescue Metals Group Limited (ASX: FMG) and Rio Tinto Limited (ASX: RIO). WestTrac delivered an 8% increase in 1H21 revenues to $1,847 million, contributing a significant 78% of the group’s total revenues. 

Seven Group also owns 100% of Coats Hire, the largest nationwide industrial and general equipment hire company. Social distancing and prolonged lockdowns in Victoria impacted construction activity across the east coast, largely driving a 6% decline in 1H21 revenues to $469 million. 

Seven maintains a 23% shareholding of Boral Limited (ASX: BLD), an international building products and construction materials company. Boral recently received an overweight rating from Morgan Stanley after the company completed the sale of its joint venture business for US$1.05 billion. Seven believes there is a strong five-year infrastructure investment growth outlook, with Boral poised to capture demand. 

What also makes Seven an interesting conglomerate is its 28.5% ownership of Beach Energy Ltd (ASX: BPT). Lower oil prices saw Beach Energy’s revenue fall 22% in the first half. Seven has highlighted that OPEC+ supply uncertainty will continue to subdue oil prices as demand recovery ramps up. 

The Seven Group share price has had a flat year-to-date performance but has more than doubled since its March 2020 lows. Its shares are currently not too far off their February all-time record highs of $24.25. 

More reading

• Seven (ASX:SWM) share price is up today despite ‘secret loan’ revelations
• 3 ASX shares this top fund managers thinks are buys
• ASX 200 shares going ex-dividend this week 

Motley Fool contributor Kerry Sun 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 Magnis Energy Technology Ltd (ASX: MNS) share price is bouncing today after news the company’s subsidiary has fully funded its lithium-ion plant. 

Magnis announced that its subsidiary Imperium3 New York (iM3NY) has wrangled together US$85 million to fast-track the development of its lithium-ion battery plant.

Magnis also announced it has increased its investment in iM3NY. At a cost of US$23.6 million, it has increased its stake in the company from around 50% to approximately 63%.

The Magnis Energy share price reached an intraday high of 49 cents on the news, representing a gain of 13%, but it has since dropped back to 41 cents, down 3.53% on the previous session’s closing price.

Let’s look closer at the announcement the company made this morning.

Lithium-ion plant now fully funded for gigawatt production

The funding announced today means iM3NY can begin fast-tracking the production of its New York-based lithium-ion plant to gigawatt scale.

iM3NY expects the plant to be completed and capable of generating over 1 gigawatt-hour of high-grade lithium-ion battery cells each year by early 2022.

The plant will produce lithuim-ion batteries using iM3NY’s exclusive North American technology license agreement with Charge CCCV LLC (C4V), which means the plant will be the only one in North America able to produce the same battery.

Its first-generation batteries will use C4V’s patented bio mineralisation technology, combined with its proprietary bi-mineralised lithium mixed metal phosphate process.

According to the company, this will enable iM3NY to produce higher capacity, safer, longer cycling and lower cost batteries compared to all others on the market.

Currently, iM3NY is part of the US Department of Defence’s supply chain and supports the electrification of several large US companies.

The company believes the technology will allow it to grow quickly into international markets.

Magnis Energy’s chair Frank Poullas stated in today’s release that, due to its “aggressive future expansion plans” iM3NY is investigating its potential to list on a US stock market.

Funding sources

The US$85 million of funding has come from a number of sources.

$MNS‘ #iM3NY project is fully funded for Gigawatt scale production, securing US$85M 🔋🗽@im3_ny is in the right place at the right time to capture the enormous growth about to hit the globe for #lithium-ion #batteries. #Ausbiz $MNS.ax#ASX-announcement: https://t.co/8nJRVL2UWt pic.twitter.com/D9fNnTdchT

— Magnis Energy Technologies (@magnisenergytec) April 18, 2021

https://platform.twitter.com/widgets.js

The largest is Riverstone Credit Partners, which provided a US$50 million senior-secured term loan.

The other US$35 million came from equity funding, US$23.6 million of which was through Magnis Energy’s investment in the company.

Along with the funding announced today, iM3NY has US$230 million of manufacturing assets in place.

Further, Empire State Development has offered iM3NY performance-based incentives totalling US$7.5 million. These include a US$4 million Upstate Revitalization Initiative grant and US$3.5 million Excelsior Jobs Program tax credits.

Commentary from management

Pullas said today’s news comes after 2 years working to finalise the funding:

With offtake agreements signed and a focus on producing greener lithium-ion batteries, we are in a great position to take advantage of the huge growth being experienced in this sector.

iM3NY’s chair Dr Shailesh Upreti also commented on today’s news:

We now have the funds to turn our project in Endicott, NY into something special. We believe we are in the right place at the right time to capture the enormous growth about to hit the globe for lithium-ion batteries and being in the world’s largest economy with one of the country’s largest near-term battery plants bodes well for future growth plans.  

Magnis Energy share price snapshot

The Magnis Energy share price is have a roaring year so far on the ASX.

Currently, Magnis Energy shares are up 121% year to date and a massive 770% over the last 12 months.

Magnis Energy has a market capitalisation of around $356 million, with approximately 838 million shares outstanding.

More reading

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• Here’s why the Centuria (ASX:CNI) share price is up today

Motley Fool contributor Brooke Cooper 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 Betmakers Technology Group Ltd (ASX: BET) share price is falling today after a volatile past week. 

With no fresh news from the company this morning, the Betmakers share price has fallen 3.8% to $1.25 per share at the time of writing.

Let’s take a closer look.

A quick take on Betmakers

Betmakers develops and provides data and analytic products. The company operates in two segments: content and integrity, and wholesale wagering products.

The content and integrity segment assists racing bodies and rights holders in producing and distributing race content, including services such as barrier technology, official price calculation, vision, and pricing distribution.

Its wholesale wagering products segment, which derives the majority of its revenue, provides a variety of racing data and analytical tools consisting of basic race data. This includes the usual suspects: pricing, runners, and form, as well as analytical tools to consume and leverage the data, and wagering tools such as platforms and the Global Tote.

Geographically, it derives a majority of revenue from Australia.

The losses behind the Betmakers share price gains

The Betmakers share price has risen 537% over the past 12 months, spurred on by significant increases to Australia’s already booming gambling market during the COVID-19 pandemic. 

Betmakers has been well-positioned to benefit from Australia’s gambling habits shifting online during COVID-19 lockdowns as a gambling operator specialises in data analytics and a highly technological approach.

According to research from the Australian National University, Australia has one of the highest rates of gambling losses in the world. The COVID-19 pandemic, while not leading to national increases in the overall number of people gambling, did lead to huge increases in gambling expenditure by key demographics.

Victoria’s gambling losses rose by 35% during the state’s enforced lockdown. Australia-wide, male gamblers spent almost 25% more per month after the COVID-19 lockdowns than before them.

In its second-quarter FY21 activities update released in February, Betmakers reported cash receipts for the first half of FY21 of $7.9 million, up 130%.

While Australia’s gambling losses have been rising consistently over the past few years – Australians lose more than $24 billion a year or about $923 per person – the Betmakers share price was flat for most of the previous five years. Its gains are based largely on 2021 alone.

In September 2019, it was trading at just 9 cents per share, and it had a strong 7-month period to rise to more than 50 cents by August 2020. But since January this year, the Betmakers share price has already more than doubled to its current value.

Betmakers current performance

Despite today’s falls, the Betmakers share price is up 22% in the past month and almost 80% in 2021 so far. It’s also beaten its consumer cyclical sector by more than 480%.

More reading

• What happened with the Betmakers (ASX:BET) share price this week?
• Why AVZ, Betmakers, Santos, & South32 shares are storming higher
• Why the BetMakers (ASX:BET) share price is worth watching

Lucas Radbourne-Pugh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Betmakers Technology Group Ltd. The Motley Fool Australia has recommended Betmakers Technology Group 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 ASX earnings upgrade cycle is the best we’ve had in decades and we may yet see a new raft of ASX shares lifting their profit predictions for the year ahead.

Already we have seen a wide range of companies upgrading their profit expectations as they emerge from COVID-19.

This has been happening for several months. The analysts at Macquarie Group Ltd (ASX: MQG) believes the trend is the best in recent memory.

More ASX earnings upgrades to come

“Net-earnings revisions have been positive for the last 7 months plus the first half of April,” said the broker.

“This is a longer string of positive revisions than at any time during the commodity boom.

“Forward earnings are already up 23% from the low in August 2020, and we think earnings could rise another 15-20% over the next year.”

ASX shares that have upgraded earnings expectations

Some of the ASX large caps that have posted some of the best upward earnings revisions in recent times include the James Hardie Industries plc (ASX: JHX) share price and BlueScope Steel Limited (ASX: BSL) share price.

Their efforts have been well rewarded as their share prices are at record or multi-year highs!

Other ASX large cap shares that have also increased their earnings estimates include the Cochlear Limited (ASX: COH) share price and Brambles Limited (ASX: BXB) share price.

The next group of ASX shares to beat market expectations

The bigger question facing investors is which ASX share could be next in line to better consensus expectations.

The experts at Macquarie have identified several on its “buy” list that they think are cum-upgrade.

Among resources shares, the broker picked the Woodside Petroleum Limited (ASX: WPL) share price and South32 Ltd (ASX: S32).

Others include the Nine Entertainment Co Holdings Ltd (ASX: NEC) share price, Woolworths Group Ltd (ASX: WOW) share price and Reliance Worldwide Corporation Ltd (ASX: RWC) share price.

Beware the potential down-graders

On the flipside, the broker also identified ASX shares that could get hit with an earnings downgrade.

Three in particularly stand out as Macquarie has slapped them with an “underperform”, or “sell”, rating.

These are Zip Co Ltd (ASX: Z1P) share price, Tyro Payments Ltd (ASX: TYR) share price and InvoCare Limited (ASX: IVC) share price.

“We continue to favour reflation trades, with an overweight in resources and a preference for value,” added Macquarie.

“We still think US bond yields are too low, with US fiscal spend and the Fed eventually signalling the tapering of QE being potential catalysts for higher yields.”

More reading

• These are the 10 most shorted shares on the ASX
• Commonwealth Bank (ASX:CBA) CEO hits out at Afterpay and BNPL providers
• ASX 200 Weekly Wrap: ASX 200 hits new post-COVID high
• Why ASX mining shares are likely to jump this morning
• 5 things to watch on the ASX 200 on Monday

Brendon Lau owns shares of BlueScope Steel Limited, James Hardie Industries plc, Reliance Worldwide Corporation Ltd, South32 Ltd, and Woolworths Limited. Connect with me on Twitter @brenlau.

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tyro Payments. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Cochlear Ltd., Reliance Worldwide Limited, and ZIPCOLTD FPO. The Motley Fool Australia owns shares of Woolworths Limited. The Motley Fool Australia has recommended Cochlear Ltd., InvoCare Limited, and Reliance Worldwide 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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This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

Apple‘s (NASDAQ: AAPL) iPhone 12 quickly climbed the charts to become the best-selling 5G smartphone in October last year despite being on sale for just a few days of that month. Fresh data from market research firm Counterpoint Research indicates that Apple’s iPhone 12 lineup has remained in hot demand ever since.

Some updated reporting from Counterpoint reveals that Apple produced six of the top 10 best-selling smartphones for the month of January 2021. The iPhone 12, the iPhone 12 Pro Max, the iPhone 12 Pro, and the iPhone 11 were the top four best-selling smartphones that month. The iPhone 12 mini and the 2020 iPhone SE also made the list. What’s more, a closer look at the list tells us that Apple’s domination of the 5G smartphone space continues. Here’s why.

The iPhone 12 is leaving others behind in 5G

China’s Xiaomi and South Korean smartphone giant Samsung were the other two manufacturers whose devices made it to the top 10 list. Xiaomi’s Redmi 9A and Redmi 9 were the fifth and sixth best-selling smartphones in January, but what’s worth noting is that they are way cheaper than Apple’s offerings.

The Redmi 9A can be bought for just $120 in the U.S. Customers can buy the device for around 89 pounds in the U.K., and for less than 100 euros in Germany. The Redmi 9 is slightly more expensive with its price hovering around $150 in the U.S. The 5G variant of the Redmi Note 9, however, starts at $290 for the Chinese version. Samsung’s Galaxy A21S and Galaxy A31 are the two smartphones that completed January’s top 10 list, and they are priced at around $200 in the U.S.

The cheapest Apple device on the list is the 2020 iPhone SE, which starts at $399 in the U.S. The iPhone 12, which tops the list, starts at $799, while the second-ranked iPhone 12 Pro Max begins at $1,099. The iPhone 12 Pro is ranked third. This makes it clear that Apple is enjoying solid pricing power as customers are preferring the more expensive iPhone 12 models — all of which are 5G-enabled.

That’s not surprising as Apple has hit the sweet spot as far as pricing the iPhone 12 series is concerned. Samsung’s latest Galaxy S21, for instance, starts at almost $800, which is equal to the starting price of the regular iPhone 12. But Apple gives customers on a budget the option to buy a 5G-enabled smartphone for $699 in the form of the iPhone 12 mini.

Another factor that could be playing in Apple’s favor is the higher average selling price (ASP) of 5G smartphones.

IDC estimates that the ASP of a 5G smartphone stood at $600 last year, and a similar level can be expected in 2021. The increasing proportion of 5G as a percentage of overall smartphone shipments is pushing the industry’s ASPs higher. IDC forecasts that the ASP of a smartphone will now be $363 this year as compared to the earlier forecast of $349.

Customers’ preference for Apple’s iPhone 12 when it comes to paying a premium for 5G devices also reflects in the company’s improved market share. The company held 23.4% of the overall smartphone market at the end of the fourth quarter of 2020, a sharp increase over just 11.8% in the third quarter. This sharp spike clearly shows how the iPhone 12 launch has impacted Apple’s positioning in the 5G era.

The Apple juggernaut will keep rolling on

Hundreds of millions of iPhone users are reportedly in an upgrade window that has triggered a “supercycle.” Supply chain checks indicate that Apple is making substantially more devices than usual this year to cater to that installed base, and that’s translating into an impressive sales performance.

Given the pricing power Apple is enjoying in the 5G era, it is not surprising to see why the company is expected to set new sales records this year. Daniel Ives of Wedbush is forecasting 250 million units in iPhone sales this year, and the momentum could spill over to 2022.

Apple supplier Taiwan Semiconductor Manufacturing, or TSMC, is expected to start the volume production of the A15 chip that will likely go into this year’s iPhone by the end of May. For comparison, the A14 chip used in the iPhone 12 went into production in June last year. Additionally, the smartphone giant is expected to place initial orders for 100 million units of this year’s iPhone lineup, a 25% increase over last year.

Meanwhile, 5G smartphone shipments are expected to more than double in 2021 to 540 million units. Shipments are expected to exceed more than a billion units by 2025, according to IDC. With the way Apple’s sales are flourishing amid the advent of 5G smartphones, it could consistently clock strong shipment growth in the coming years and remain a top 5G stock for the long run.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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Harsh Chauhan has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and Taiwan Semiconductor Manufacturing and recommends the following options: short March 2023 $130 calls on Apple and long March 2023 $120 calls on Apple. The Motley Fool Australia has recommended Apple. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Apple’s iPhone 12 shows its 5G dominance appeared first on The Motley Fool Australia.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

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