Most weeks, the Commonwealth Bank of Australia (ASX: CBA) CommSec brokering platform tells us the ASX and international shares (usually just US shares) that are the most popular with its Australian customers.

CommSec is one of the most popular share trading platforms in the country. As such, its data can be an insightful view into the mind of the average Aussie investor.

My Fool colleague, James Mickleboro, has earlier today already looked at the most popular ASX shares last week.

So here are the top 10 United States shares CommSec customers were buying last week. This week’s data covers 1-5 March. 

Most traded US shares on the ASX

1. Tesla Inc (NASDAQ: TSLA) – representing 7.3% of total trades with an 81%/19% buy-to-sell ratio.
2. Nio Inc (NYSE: NIO) – representing 2.9% of total trades with a 71%/29% buy-to-sell ratio.
3. Apple Inc (NASDAQ: AAPL) – representing 2.7% of total trades with a 74%/26% buy-to-sell ratio.
4. GameStop Corp (NYSE: GME) – representing 1.8% of total trades with a 68%/32% buy-to-sell ratio.
5. Palantir Technologies Inc (NYSE: PLTR) – representing 1.8% of total trades with an 81%/19% buy-to-sell ratio
6. ARK Innovation ETF (NYSE: ARKK)
7. Churchill Capital Corp IV (NYSE: CCIV)
8. Square Inc (NASDAQ: SQ)
   
9. NVIDIA Corp (NASDAQ: NVDA)
10. PayPal Holdings Inc (NASDAQ: PYPL)

What can we learn from these trades?

Tech shares continue to dominate this list, despite the well-publicised sell-off in this sector over the past few weeks (last week in particular). It’s interesting to see Aussie investors still buying up companies (for the most part) like Tesla and Nio, despite heavy losses. To illustrate, Tesla is down almost 34% over the past month, while Nio shares have lost 44%. Data miner Palantir is another one to watch. It’s down a hefty 42% over the past month as well.

There still seems to be some heavy appetite for risk out there as well, with the notorious GameStop once again making an appearance. You might have thought that investors would leave this one alone, since it cratered by more than 83% between 29 January and 4 February. Then again, perhaps not, considering GameStop is up 332% since 23 February.

We’ve also discussed the growing popularity of ARK Invest exchange-traded funds before. The ARK Innovation ETF evidently remains popular, despite this fund selling off dramatically in recent weeks (it’s down 29.5% since 12 February).

I’m looking forward to next week’s numbers – especially so if this US tech sell-off continues over the next week. It will be interesting to see if the ‘net buyer’ mentality holds if that’s the case!

More reading

• Goldman Sachs CEO: GameStop share price and the Reddit phenomenon
• Can ASX bank shares keep rallying after hitting 52-week highs?
• The tech-heavy Nasdaq is now in a correction!
• Why Tesla Stock Fell Further on Monday
• Subreddit ASX Bets is gambling these 4 ASX shares will follow in GameStop’s footsteps

Sebastian Bowen owns shares of Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple, NVIDIA, PayPal Holdings, Square, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Palantir Technologies Inc and recommends the following options: short March 2023 $130 calls on Apple, long March 2023 $120 calls on Apple, and long January 2022 $75 calls on PayPal Holdings. The Motley Fool Australia has recommended Apple, NVIDIA, and PayPal Holdings. 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 selloff in the tech sector has been very disappointing for investors. However, every cloud has its silver lining. In this case, the cheaper prices is the silver lining.

Two ASX tech shares that are trading significantly lower than their 52-week highs are listed below. Here’s why now could be an opportune time to make a patient long term investment in their shares:

Altium Limited (ASX: ALU)

The first ASX tech share to look at is this printed circuit board (PCB) focused electronic design software provider. Especially with the Altium share price now down 36% from its 52-week high.

Altium appears well-positioned for long term growth thanks to its industry-leading platform and a number of tailwinds which are underpinning ever-increasing demand for electronic design software. These tailwinds include the rapidly growing artificial intelligence and internet of things markets, which are leading to a proliferation of electronic devices globally.

One broker that believes the recent weakness in the Altium share price is a buying opportunity is Citi. Last month its analysts upgraded the company’s shares to a buy rating with a $33.50 price target.

Appen Ltd (ASX: APX)

Another ASX tech share to look at is Appen. The shares of the global leader in the development of high-quality, human annotated datasets for machine learning and artificial intelligence have come under significant pressure in recent months. This has been caused by both the selloff in the tech sector and its underperformance due to COVID-19.

The selling has been so severe that the Appen share price is down 61% from its 52-week high.

However, with artificial intelligence and machine learning expected to grow in importance over the next decade, demand for its services looks set to increase as well. This could mean the selling has been overdone.

One broker that appears to believe this is the case is Ord Minnett. It recently upgraded Appen’s shares to a buy rating with a $24.75 price target. It is positive on its long term growth and notes that its shares are trading on undemanding multiples.

More reading

• ASX tech correction? 10 of the worst-hit shares
• ASX All Technology Index teetering on verge of a bear market
• 5 things to watch on the ASX 200 on Tuesday
• ASX 200 up 1.6%: Appen rebounds, ALS acquires Investiga, Woolworths upgraded
• ASX 200 sinks, Xero reveals acquisition, ARB driven higher

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 recommends Altium. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Appen Ltd. 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 CSL Ltd (ASX: CSL) share price is treading into green territory today. A sight that is foreign, after a week of red days on the market for the biotech giant. Coincidentally, CSL’s Chief Executive Officer, Paul Perreault addressed the AFR’s Business Summit this afternoon.

At the close of trade today, the CSL share price is 1.69% higher at just over $250 a share.

CEO’s Business Summit comments

Anytime a CEO gives a public address, it can give valuable insights into the company’s current operations. Mr Perreault joined other distinguished speakers, including Qantas Airways Limited (ASX: QAN) CEO, Alan Joyce; and Commonwealth Bank of Australia (ASX: CBA) CEO, Matt Comyn.

Mr Perreault emphasised the key to recovering from COVID-19 is through investments.

We have to invest in things that will bring scale to things we operate but also bring scale beyond our borders. The government has to understand that and try to help with that, especially with innovation.

In addition to these comments, the CEO went on to explain the situation in the US, “Some small businesses have disappeared, and will not come back. Some larger businesses are doing okay, but there will be some businesses that will struggle to come out of this economic climate.” CSL’s US staff are described to be drained, along with the rest of the public due to the situation.

Mr Perreault detailed that the focus for CEOs must remain on their people.

CSL share price and recent developments

The CSL share price has been in free fall over recent weeks but has also been suffering a longer-term decline as well. Since late February, the company’s value has dropped a staggering 15%. Even more unsettling, the biotech has wiped nearly 22% off its market capitalisation since November 2020.

Recent news of the EU interfering with Australia’s supply of the AstraZeneca vaccine hasn’t done much for the price either. Despite CSL being Australia’s local manufacturing partner for the vaccine, the possible additional reliance on CSL has not been reflected in the share price.

More reading

• IOUpay and Zip were among the most traded ASX shares last week
• How the CSL (ASX:CSL) share price weakness exposes its dividend strength
• ASX 200 Weekly Wrap: ASX finishes higher, despite tech selloff
• How to turn $20,000 into $300,000 in 10 years with ASX shares
• Outsourced AstraZeneca blockade not an issue for local COVID vaccine rollout

Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of CSL Ltd. 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 certainly has not been a good month to own ASX tech shares. As we reported this morning, the S&P/ASX All Technology Index (ASX: XTX) is way past being in a technical ‘correction’ (a drop of 10% from the most recent high). In fact, it is now on the edge of being in an actual bear market (a drop of 20%-plus), since it has fallen more than 18% since 10 February.

The phrase ‘bear market’ hasn’t been in play on the ASX for almost a year now, so this is certainly a dramatic turn of fortune.

So which ASX tech shares have been hardest hit over the past month? 

10 of the hardest-hit ASX tech shares

1. Limeade Inc (ASX: LME) – Limeade is one of the worst-hit ASX tech shares, down around 43% from where it was a month ago. Limeade had a shocker last Monday in particular when investors made their feelings known about the company’s full-year earnings results.
2. Nuix Ltd (ASX: NXL) – Nuix has also had a disastrous month, falling more than 42% since 9 February, despite rocketing close to 17% today. This company remains more than 30% down from its December 2020 IPO.
3. Tesserent Ltd (ASX: TNT) – Network security company Tesserent has lost around 32% of its valuation over the past month. This appears to have been accelerated by a poor reaction to this company’s half-year earnings back on 1 March as well.
4. Afterpay Ltd (ASX: APT) – As a leading ASX growth share and a rocket of a performer for years now, Afterpay was always going to be caught up in any kind of growth or tech sell-off. And lo and behold, it came to pass. Afterpay shares are down just a tad over 30% over the past month.
5. Splitit Ltd (ASX: SPT) – Buy now, pay later (BNPL) player Splitit has had a rough month, losing 28.28% of its value since 9 February. BNPL companies (see above) have been especially hard-hit in this tech sell-off, and Splitit is no exception. As we reported this morning, trading volumes have been especially high this week.
6. Damstra Holdings Ltd (ASX: DTC) – Damstra shares have been on a slide for a few months now, but the past month has seen sellers step on the gas, sending the shares down almost 28%. Earnings may have played a role here, given Damstra reported an after-tax loss of $5.5 million last month.
7. Appen Ltd (ASX: APX) – WAAAXer Appen has seen its shares lose about 27% of their value since 9 February. Again, earnings didn’t give investors a lot of confidence, but Appen has also been out of favour for months now since peaking in August last year.
8. ELMO Software Ltd (ASX: ELO) – Elmo shares are down close to 25% over the past month. Earnings weren’t a factor here, so we can probably put this one down to general unenthusiasm for ASX tech shares. Interestingly though, Elmo insiders have been buying shares lately, as we reported last week.
9. Bigtincan Holdings Ltd (ASX: BTH) – Bigtincan has also copped a beating, down close to 25% over the month. This software-as-a-service (SaaS) company reported a seemingly strong set of earnings numbers last month, but that hasn’t been enough to stop investors from hitting the sell button since then.
10. Zip Co Ltd (ASX: Z1P) – Zip is more of a bonus inclusion today. This BNPL company is ‘only’ down 8.8% over the past month, which doesn’t seem too shabby compared to the ASX tech shares above. But if we go from 16 February rather than 9, we can see that Zip is down 37.5% from those highs. Ouch!

More reading

• 2 ASX tech shares to buy after the selloff
• Why did the Openpay (ASX:OPY) share price slide today?
• IOUpay and Zip were among the most traded ASX shares last week
• Credit Suisse just rated the Afterpay (ASX:APT) share price as ‘outperform’
• Why Adairs, Afterpay, IAG, & Livetiles shares are sinking

Sebastian Bowen 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 BIGTINCAN FPO, Damstra Holdings Ltd, and Elmo Software. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO, Appen Ltd, Limeade, Inc., and ZIPCOLTD FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. recommends Nuix Pty Ltd. The Motley Fool Australia has recommended BIGTINCAN FPO, Damstra Holdings Ltd, Elmo Software, and Nuix Pty 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 Openpay Group Ltd (ASX: OPY) share price plunged this afternoon. At close of trade, Openpay shares are sitting at $2.49 apiece, down 4.96%.

What was weighing on the Openpay share price today?

In addition to the broader tech share sell-off, the Australian Financial Review recently reported that the buy now, pay later (BNPL) providers have drawn up new standards to regulate the industry. Under the new regulations, credit checks will be more stringent.

This action follows a 2019 senate query into BNPL with the intention to protect customers. With big players like Afterpay Ltd (ASX: APT) involved in the mix, it’s no wonder that the Australian Securities and Investments Commission (ASIC) and Reserve Bank are throwing in 2 cents about the new rules.

ASIC believes that too many customers are being charged late fees. The Reserve Bank thinks that the fee merchants charge is too high. 

The uncertainty over how these new standards will impact BNPL players could also be contributing to the negative sentiment.

What else is Openpay up to?

According to its first half FY21 update, Openpay has commenced a launch in the US. The Openpay US leg ‘Opy’ is taking shape in San Diego, California. The company is also planning to expand into the healthcare and automative industries in the UK.

The company also has major new merchants on board, with Ford Australia agreeing to offer Openpay payment options in addition to Kogan.com Ltd (ASX: KGN). 

Openpay also made note of the new regulatory environment in its latest earnings report. The company states that “Openpay is a code compliant member of the Australian Finance Industry Association (AFIA). It is expected that the AFIA Buy Now Pay Later Code of Practice will commence in March 2021.”

Considering that the code of practice is so new, it’s difficult for the market to form an opinion on the impact it will have on business.

Openpay share price snapshot

The Openpay share price has fallen 24% over the past three weeks.

At the current price, the Openpay market capitalisation is $275.4 million. There are 108 million shares outstanding.

More reading

• IOUpay and Zip were among the most traded ASX shares last week
• Credit Suisse just rated the Afterpay (ASX:APT) share price as ‘outperform’
• Why Adairs, Afterpay, IAG, & Livetiles shares are sinking
• ASX 200 up 0.7%: Vocus jumps on takeover update, Afterpay crashes 9%
• The tech-heavy Nasdaq is now in a correction!

Gretchen Kennedy owns shares of Kogan.com ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and Kogan.com ltd. The Motley Fool Australia has recommended Kogan.com 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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S&P/ASX 200 Index (ASX: XJO) investors are increasingly worried about rising inflation. But you shouldn’t lose any sleep over it. At least, not yet.

Inflation, which was stubbornly absent over recent years, has been ticking up. Which shouldn’t come as any surprise.

Not with global central banks ramping their quantitative easing (QE) programs to record levels and holding real interest rates near or below zero. All while developed nations are pouring trillions of dollars into their economies to prime them for their post COVID recoveries.

The latest mammoth stimulus package is set to launch in the United States. This after the US Senate passed President Joe Biden’s US$1.9 trillion (AU$2.4 trillion) pandemic-relief bill.

Analysts have widely pointed the finger at this huge fiscal spending program for sending the yields on 10-year US Treasuries to a pre-pandemic 1.6%. But is this cause for share market investors to panic?

Janet Yellen confident on inflation control

Former Federal Reserve Chair and current US Treasury Secretary Janet Yellen stresses that developed nations had been trying to stoke inflation before the pandemic, when inflation was lower than desired.

Speaking on MSNBC, Yellen dismissed concerns that the new US stimulus package would drive inflation beyond target levels. She added, “If it turns out to be inflationary, there are tools to deal with that.”

Tech shares hit as value and recovery shares gain

Rising yields combined with a glimmering light beckoning at the end of the pandemic tunnel has hit high growth tech shares hard, while value shares and recovery stocks have gone the other way.

Yesterday (overnight Aussie time) the Dow Jones Industrial Average (INDEXDJX: .DJI) closed for a record high. This as the tech laden Nasdaq-100 (INDEXNASDAQ: NDX) fell 3% by closing and officially entered correction territory (down more than 10%).

The same shift is playing out on the ASX. The S&P/ASX All Technology Index (ASX: XTX) down 1% today, is now down more than 17% since its 10 February high. In that same time the wider ASX 200 is only down 1%.

A share market attitude adjustment

Mike Bailey, director of research at FBB Capital Partners explains the diverging paths we’re currently seeing between big tech shares and value shares. According to Bailey (quoted by Bloomberg):

Investors are feeling better about the recovery and looking to own improving fundamentals within large caps outside of tech and growth where valuations are more reasonable. The focus on better fundamentals at a reasonable price may be driving the Dow to new highs…

It feels like an attitude adjustment for tech and growth stocks. Investors have decided that these Covid winners just got too expensive and now it’s time for a valuation haircut.

Separately, Bloomberg notes that, “Equity strategists are as bullish as ever, despite all the nervousness among investors about sky-high valuations and rising rates.”

Abby Joseph Cohen is a senior investment strategist at Goldman Sachs. Speaking to Bloomberg TV, she said that while some shares may drop due to higher inflation and interest rates, other sectors will see strong rallies.

We are seeing this very significant rotation. We are seeing some movement now in those sectors that do better when we come out of lockdown, and the good news on the vaccine will be helpful.

Mislav Matejka, a strategist at JPMorgan Chase & Co, said that “airlines, hotels and auto suppliers are attractive, and investors should consider shorting online retail and technology”.

ASX airline and hotel shares

If Matejka is right, then ASX 200 listed Qantas Airways Ltd (ASX: QAN) shares could be looking attractive.

The Qantas share price is up 2% today and up 5% in the past 5 days. By comparison the ASX All Tech index is down 6% over the past 5 days.

Pure ASX 200 listed hotel plays are harder to come by. But The Star Entertainment Group Ltd (ASX: SGR) comes pretty close. The company operates 3 hotel and casino complexes in Australia.

Star Entertainment shares are up 4% today and Star’s share price is up 7% in the past 4 days.

More reading

• Legal action against ex Qantas (ASX:QAN) executive leaves share price on watch
• Is it time to buy these 2 ASX travel shares?
• Top brokers name 3 ASX shares to sell next week
• Crown (ASX:CWN) share price facing double Royal Commission trouble
• Why analysts are backing these 2 ASX travel shares

Motley Fool contributor Bernd Struben 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 Nuheara Ltd (ASX: NUH) share price opened 13% up today after the smart hearing technology company announced its IQbuds2 PRO (PRO) product has received US FDA registration.

The PRO is a hearing aid designed to provide high levels of hearing enhancement and amplification with up-to-date hearing technology.

The Nuheara share price has dropped since this morning but remains more than 2% higher than yesterday’s close.

More about Nuheara’s hearing aids

The PRO is the second product delivered from Nuheara’s IQbuds2 hardware platform. It is designed for those with moderate hearing challenges.

It’s expected to be launched in the US later this year, extending the company’s reach in the global US$9 billion per annum hearing aid market. The North American market alone is worth US$3.37 billion.

Nuheara advised that, as with all hearing aids with air conductions and wireless technology, the PRO is exempt from clinical trials. This means the product can go straight to market in the US.

IQbuds2 MAX (MAX) was the first product to be developed from Nuheara’s hardware platform. MAX is designed to meet the needs of those with mild hearing challenges.

Commentary from management

CEO of Nuheara Justin Miller said the development of the PRO and MAX are significant in making hearing health more accessible and affordable.

Over many years the business has invested tens of millions of dollars in our proprietary hearing technology platform. The IQbuds² PRO as a hearing aid device represents further opportunities to expand Nuheara’s leadership position in both hardware and software of hearing health devices. This registration effectively enables Nuheara to meet the varied hearing needs of a growing base of underserved customers with a wider spectrum of hearing loss.

Nuheara share price snapshot

The Nuheara share price is currently at 4.5 cents, up 2.27% from yesterday’s close. It is down 8% year to date but up 95% over the last 12 months.

Nuheara has a market capitalisation of $75.8 million and approximately 1.7 billion shares outstanding.

More reading

• IAG (ASX:IAG) share price takes wild ride on Greensill fears
• Here’s why the NAB (ASX:NAB) share price just hit a 52-week high
• Latest broker ASX buy ideas for 2021
• Here’s why the First Graphene (ASX:FGR) share price is rebounding today
• Brokers raise ratings on these 2 ASX shares this afternoon

Motley Fool contributor Brooke Cooper has no position in any of the shares 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 Insurance Australia Group Ltd (ASX: IAG) share price is on a roller coaster today. Shares in the insurer crashed 10.6% to a 5-year low of $4.30 before being placed in a trading halt. Since resuming trade, the share price is at $4.6o, almost 5% down on yesterday’s close.

In contrast, the S&P/ASX 200 Index is up 0.47%.

Let’s take a closer look at what is weighing on the IAG share price.

IAG and Greensill’s insolvency

As previously reported, Greensill was a supply-chain debt provider. Its business model was to provide funds to suppliers awaiting accounts receivable in the form of a loan to the purchasing business.

As with the 2008 financial crisis, Greensill collateralised these debts into securities and sold them to investors. Greensill became too reliant on a few companies and when COVID-19 hit, many loanees were unable to repay their debts.

According to the Australian Financial Review (AFR), BCC (an insurer IAG had a 50% stake in) sold policies to Greensill in 2019 covering the bonds. However, as IAG clarified in an announcement to the ASX, “it has no net insurance exposure to trade credit policies including those sold through BCC to Greensill entities.”

IAG sold BCC in April 2019 to Tokio Marine Management (TMM) and completed the transaction by July. IAG informed the market TMM retained the risk for all policies during this period – including Greensill. Both BCC and IAG refused to renew their policies with Greensill this year. Greensill admitted in court the move was catastrophic. That was the catalyst for its insolvency.

Before IAG released its statement today, investors were panicking. Many believed IAG may be liable for the bad debts owed to Greensill. Fearing the worst, owners sold off their holdings in the insurer. IAG then placed its shares into a trading halt.

When IAG informed the market no such liabilities existed, many came flocking back on the resumption of trade.

Simply put, as more investors were selling IAG shares than buying, the price collapsed. When more investors began purchasing IAG shares than offloading, the price increased. In economics, this is known as the laws of supply and demand.

IAG share price snapshot

Today aside, IAG’s share price has been sliding for the past year. One year ago, the insurer’s share price was $6.36. At today’s price, this calculates as a 27% loss in value. In fact, in mid-2018, the IAG share price was around the $8.80 mark.

IAG has a current market capitalisation of $11.7 billion.

More reading

• Why Adairs, Afterpay, IAG, & Livetiles shares are sinking
• The QBE (ASX:QBE) share price jumps to 2021 high on broker upgrades
• ASX 200 Weekly Wrap: ASX cools on earnings reality check
• These were the best performing ASX 200 shares last week
• ASX 200 up 0.35%: CBA half year update, IAG impresses, Zip shoots higher

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 National Australia Bank Ltd (ASX: NAB) share price continued its positive run and pushed higher again on Tuesday.

In fact, at one stage on Tuesday, the banking giant’s shares hit a 52-week high of $27.10.

When the NAB share price hit that level, it meant it was up an impressive 56% over the last six months.

Why did the NAB share price hit a 52-week high?

Investors have been buying NAB shares since the release of its first quarter update last month.

That update revealed that the bank has returned to profit growth, with cash earnings rising 1% over the prior corresponding period (which was COVID-free) to $1.65 billion.

This result was all the more impressive when you compare it to NAB’s most recent quarters.

According to the update, NAB advised that its first quarter cash earnings (excluding large notable items) improved 47% on the quarterly average it achieved during the second half of FY 2020.

Another positive was that its expenses fell 1% over the prior corresponding period thanks to productivity benefits and lower restructuring related costs. Looking ahead, management advised that it continues to target FY 2021 expense growth of between 0% to 2%.

What else is supporting its shares?

Also giving the NAB share price a lift was the response to its first quarter update by brokers.

Brokers such as UBS and Credit Suisse responded by putting buy ratings and $27.00 price targets on its shares.

But the most bullish broker was Goldman Sachs. It has a conviction buy rating and $28.93 price target. Which, based on the current NAB share price of $26.65, implies potential upside of ~8.5% over the next 12 months.

And if you include the $1.10 per share fully franked dividend that Goldman expects NAB to pay in FY 2021, this potential return stretches to almost 13%.

In light of this, don’t be surprised if the NAB share price hits new 52-week highs in the coming weeks.

More reading

• Can ASX bank shares keep rallying after hitting 52-week highs?
• ANZ (ASX:ANZ) share price outperforms on broker “buy” upgrade
• The ANZ (ASX:ANZ) share price just hit a 52-week high
• The big four banks offer these juicy dividend yields to ASX investors
• Is the NAB (ASX:NAB) share price a buy right now?

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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There’s a rotation underfoot on the ASX share market that will make picking 2021 winners a little more challenging, but the latest broker buys could offer clues on which ASX shares you should buy now.

Some stocks that have rallied right through the pandemic aren’t faring quite as well in the past few weeks.

The rotation from COVID-19 winners to losers is expected to continue even as experts are forecasting more gains for the S&P/ASX 200 Index (Index:^AXJO).

Latest ASX shares upgraded to “buy”

You don’t want to be buying the wrong shares as the market repositions itself for the next leg of the bull market.

But one stock that could put a smile on your face is the Pacific Smiles Group Ltd (ASX: PSQ) share price. Wilsons upgraded the dental practice to “overweight” as it looked at the impact of the group opening 20 new offices a year from 10 to 12 offices.

“Scale benefits in corporate dentistry are less about margin expansion and more about structural advantages,” said the broker.

“We conclude that PSQ’s scale-up agenda is feasible without a material change in capital structure nor any variation in dividend policy.”

Wilsons’ 12-month price target on the Pacific Smiles share price is $2.95 a share.

Right port of call

Meanwhile, the Qube Holdings Ltd (ASX: QUB) share price is another worth putting on your “buy” list, according to Jarden.

The broker looked at container movements across our nation’s ports and believes shares in the New South Wales logistics group is cheap.

Container volumes at the NSW port jumped by 14.9% in January 2021 compared to the same time last year.

Container recovery more promising than it looks

While the start of 2020 was marred by bushfires and the drought, its encouraging to see that this January’s figures were still 7.6% ahead of January 2019.

“Strong organic volume growth in January presents upside risk to Qube’s growth outlook for 2H21e, as future months begin to be inflated by cycling low, COVID-19 impacted bases,” said Wilsons.

“We think the stock remains catalyst rich, and that earnings will be supported as industry volumes should continue to normalise post-COVID.”

The broker’s 12-month price target on the Qube share price is $3.60 a share.

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Motley Fool contributor Brendon Lau 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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