The Regional Express Holdings Ltd (ASX: REX) share price is soaring today on news the airline will start its Sydney-Melbourne route in March 2021, with promotional fares going on sale starting today. 

At the time of writing, the Rex share price has risen 3.25% to $1.595.

Rex opens up Golden Triangle route

Rex announced yesterday that its first 3 Boeing 737-800s would take off between Sydney and Melbourne on 1 March 2021.

To celebrate the launch of that route, the company is offering 100,000 promotional fares, available today. The special fare price for the Sydney-Melbourne service will start at $79 from 2 December 2020, for travel within 12 months.

The regional airline is also expanding its service to include Brisbane, taking on the major airlines head-to-head on the so-called ‘golden triangle’ of Sydney-Melbourne-Brisbane. The routes are collectively known as ‘the golden triangle’ as they are the busiest domestic routes in Australia. 

Rex plans to deploy its other two Boeing 737-800 jets to expand that service to Brisbane by Easter.

The airline says it will offer all the usual perks of a full service carrier including 8 business class seats. All fares include checked baggage allowance, food, pre-assigned seating and online check-in.

Lounge access and on-board Wi-Fi will be free for business class, whilst economy passengers can access these options for a small fee.

Competition heats up for low-cost carriers

The new routes will pit Rex’s business head-to-head with other low-cost airlines operating the domestic route.

Rex’s prices are cheaper than a Virgin Airlines (which is currently delisted from the ASX) flight at a similar time slot. The prices are more in line with Qantas Airways Limited (ASX: QAN)’s budget offshoot Jetstar, which  announced ‘the biggest airfare sale of the year’ two weeks ago. Jetstar’s popular ‘Return for Free’ sale went live on 17 November, with 400,000 return trips across 51 domestic routes up for grabs.

Rex’s new routes will also compete with the post-administration Virgin 2.0, which plans to target ‘value-conscious’ customers after a strategic review of its business-class offering, inflight Wi-Fi and entertainment.

About the Rex share price in 2020

The Rex share price has gained 35% this year. In March, the share price dropped more than 60% after the COVID-19 lockdown closed most of Australia’s state borders. The share price has since recovered to today’s level.

Rex was severely affected by the lockdowns and received $62 million in government aid. It also signed a deal with the private Asian investment company PAG for $150 million to fund its expansion, which could see PAG eventually own half of Rex.

Rex currently commands a market cap of $170 million.

More reading

• Flight Centre and Mesoblast were among the most traded shares on the ASX last week
• Which ASX travel shares performed the best in November? 
• Qantas (ASX:QAN) axes 2,000 jobs
• Top brokers name 3 ASX shares to buy next week
• Is the Qantas (ASX:QAN) share price heading to $7.00?

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

The post REX Airlines (ASX:REX) share price flies as promotional fares go on sale appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Juc4tP

At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) has given back its early gains and is dropping lower. The benchmark index is currently down 0.2% to 6,576.6 points.

Here’s what has been happening on the market today:

Zip delivers record November.

The Zip Co Ltd (ASX: Z1P) share price is trading lower despite revealing a record performance during November. The buy now pay later provider delivered record transaction value of $577.1 million for the month. This is up 44% on October and more than 100% year on year. Based on this, Zip’s transaction value is now annualising at almost $7 billion. Management advised that this was driven by a 157% increase in monthly transaction numbers and a 104% year on year increase in customer numbers to 5.3 million.

Mesoblast rockets.

The Mesoblast limited (ASX: MSB) share price jumped as much as 19% higher this morning after the release of an announcement relating to its remestemcel-L product. That announcement revealed that the United States Food and Drug Administration (FDA) has granted Fast Track designation for remestemcel-L in the treatment of acute respiratory distress syndrome (ARDS) due to COVID-19 infection.

Westpac general insurance sale.

The Westpac Banking Corp (ASX: WBC) share price is edging lower today despite announcing the sale of its Westpac General Insurance and Westpac General Insurance Services businesses to Allianz for $725 million. The two parties have also entered into an exclusive 20-year agreement for the distribution of general insurance products to Westpac’s customers. Management notes that the sale will add around 12 bps to Westpac’s common equity Tier 1 capital ratio.

Best and worst ASX 200 performers.

The best performer on the ASX 200 at lunch is the Sandfire Resources Ltd (ASX: SFR) share price with an 8.5% gain. This morning Morgan Stanley retained its overweight rating and $6.60 price target on its shares. It was pleased with its T3 progress. The worst performer has been the Worley Ltd (ASX: WOR) share price with a 3% decline on no news.

More reading

• Westpac (ASX:WBC) share price edges higher on $725 million general insurance sale
• Zip (ASX:Z1P) share price higher after record November performance
• Meet the most unpopular ASX large cap stock according to analysts
• Mesoblast (ASX:MSB) share price jumps 19% on FDA update
• Banks rejoice: House prices to return to 2019 levels

James Mickleboro owns shares of Westpac Banking. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of ZIPCOLTD FPO. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post ASX 200 down 0.2%: Zip’s November update, Mesoblast jumps, Westpac’s asset sale appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/37p5wFg

The Westpac Banking Corp (ASX: WBC) share price is trading higher on Wednesday following the release of a positive announcement.

In morning trade, the banking giant’s shares are up 0.5% to $20.30.

What did Westpac announce?

This morning Westpac announced that it will sell its Westpac General Insurance and Westpac General Insurance Services businesses to Allianz for $725 million.

The two parties have also entered into an exclusive 20-year agreement for the distribution of general insurance products to Westpac’s customers.

According to the release, the sale price represents a multiple of 1.3x FY 2020 gross written premium and is estimated to result in a small post-tax gain on sale in FY 2021.

Management advised that the sale of its General Insurance business adds around 12 bps to Westpac’s common equity Tier 1 capital ratio.

In addition to this, the transaction includes contingent payments subject to integration milestones and business performance over the next five years. There are also ongoing payments in accordance with the distribution agreement.

Management notes that this new distribution arrangement expands its existing partnership with Allianz, which has seen Westpac distribute a range of Allianz’s products to customers including Auto, Travel, Boat, and Business insurance since 2015.

Westpac’s Chief Executive Officer, Peter King, believes the agreement was a significant milestone in the quest to build a simpler, stronger bank.

He commented: “This transaction is another step in simplifying our business while continuing to help customers with their general insurance needs.”

“General Insurance products are important for many Australians and we are pleased to be entering a long-term partnership with a global insurance expert to continue to help customers protect the things they value,” Mr King said.

Westpac will retain responsibility for certain pre-completion matters and provide protection to Allianz via a combination of provisions, warranties, and indemnities.

The bank is expecting the transaction to complete in the second half of 2021. Though, it remains subject to various regulatory approvals.

More reading

• Banks rejoice: House prices to return to 2019 levels
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 rises on Tuesday
• Westpac (ASX:WBC) share price gaining ground despite slap by regulator
• CBA (ASX:CBA) and the ASX banks just had an amazing month

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

The post Westpac (ASX:WBC) share price edges higher on $725 million general insurance sale appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2JqH0LU

It has been a rollercoaster ride for the Treasury Wine Estates Ltd (ASX: TWE) share price after Chinese authorities slapped a brutal tariff on Australian wine exports. With the Treasury Wine share price being down almost 50% year to date, here’s what the big brokers think following the major news this week. 

Provisional measure implemented on Australian wine imports into China 

The provisional measure states that, commencing 28 November 2020, a deposit at a rate of 169.3% will be applied to the imported value of Treasury’s wine in containers of two-litres or less. The provisional measure can remain in place until 28 August 2021 at the latest. The final determination of the anti-dumping investigation will determine if the measure will be maintained, adjusted or removed. 

Treasury Wine response 

In FY20, China represented approximately 30% of Treasury Wine’s earnings. The company has been forced to come up with measures to mitigate the effects of the tariffs including redirecting products to other markets, accelerating marketing in other jurisdictions to drive demand and reducing global overhead costs. 

Big broker updates on Treasury Wine share price

Brokers are divided between the fallout of Chinese sales and the opportunity for Treasury Wine to pivot its business into the rest of Asia, Europe and the United States. 

Citigroup Inc (NYSE: C) lowered its Treasury Wine share price target from $10.40 to $8.20 with a sell rating. The broker warns that China’s aggressive stance towards Australian wine imports will have a negative and long-lasting impact on the company and sector. While the broker noted there could be upside from North America operations, it regards the investment case as too risky. 

Credit Suisse Group (NYSE: CS) upgraded the company from neutral to outperform and raised its price target from $8.50 to $11.00. In stark contrast to Citi, it believes that given the recent Treasury Wine share price falls, the worst is now behind the company and the tariffs are temporary. 

Macquarie Group Ltd (ASX: MQG) retains a neutral rating and a $10.60 price target. There was no change in the broker’s rating or target after reviewing the news of China’s move. Whilst Macquarie believes there is an opportunity for Treasury to pivot to the rest of Asia, and US operations remain sound, the broker is concerned about downside risks to margins and sales. 

Morgan Stanley (NYSE: MS) lowered its Treasury Wine share price target from $11.00 to $10.00. It lowered the price target but retains an overweight rating for now, albeit extremely cautious, because of the company’s balance sheet strength and pivot options. 

More reading

• Leading brokers name 3 ASX shares to sell today
• Why healthcare, tech and consumer staples shares underperformed the ASX 200 in November
• ASX 200 drops on Monday
• Leading brokers name 3 ASX shares to buy today
• Why Kathmandu, Resolute, Select Harvests, & Treasury Wine Estates are dropping lower

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

The post What big brokers think of the Treasury Wine (ASX:TWE) share price now appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/36qCc1O

The Downer EDI Ltd (ASX: DOW) share price is lifting today on news the company has inked a deal to sell its Laundries business. At the time of writing, the Downer share price is up 0.76% at $5.32.

Downer is an integrated services company that operates primarily in Australia and New Zealand. The multi-functional company has three divisions: infrastructure, mining and rail. These industries move into market sectors such as minerals and metals, oil and gas, power, transport, telecommunications, water and property.

What’s driving the Downer share price higher today?

The Downer share price is moving higher today after entering an agreement with private equity firm, Adamantem Capital.

Downer said it was selling a 70% stake in its Laundries business for approximately $155 million. It advised that Adamantem would proceed with the purchase on a cash and debt free basis.

Once the transaction is completed, Downer will recognise its remaining 30% interest as an equity accounted investment. The company took ownership of the Laundries business in 2017 when it acquired an 88% holding in Spotless Group Holdings for $1.3 billion.

Downer previously attempted to offload the business to South Pacific Laundry just last month, and Alsco in October. However, competition regulator, the Australian Competition and Consumer Commission (ACCC), expressed concerns over both of the deals, leading to two failed takeovers.

The sale is subject to certain conditions being met, along with the ACCC and various customer approvals. It is expected that the deal will be finalised by the end of March 2021.

Management commentary

Downer chief executive Grant Fenn welcomed the sale, saying:

The sale of 70% of Laundries achieves the objective of removing one of the most capital-intensive businesses from the Downer balance sheet. Laundries continues to perform well as it recovers from the COVID-19 lockdowns in New Zealand and Victoria, and by retaining a 30% interest we will participate in this ongoing recovery.

Adamantem managing director Chris Adams added:

We intend to invest to grow the business for the benefit of the 1,900 loyal employees and numerous longstanding customers. We look forward to partnering closely with Downer and the management team and to take advantage of the exciting opportunities that lie ahead.

About the Downer share price

After falling more than 30% since the beginning of the year, the Downer share price has been regaining ground. From the start of November, the Downer share price is up 18% and the highest it has been since March. Although the company is still a long way off its 52-week high of $8.94 high reached in January.

More reading

• ASX stock winners from the $23 billion Victorian state budget
• Revealed: Shares that’ll shoot up with a COVID-19 recovery
• Why the Downer (ASX:DOW) share price is outperforming today
• Why the Downer EDI (ASX:DOW) share price has dropped today

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

The post Why the Downer (ASX:DOW) share price is climbing higher today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2JxbnA6

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.

Online sales for Cyber Monday landed in record territory in 2020, up more than 15% year over year, according to data gathered by Adobe Inc (NASDAQ: ADBE) Analytics. Sales climbed to a record-setting $10.8 billion, marking the biggest online shopping day ever in the U.S.  

Adobe’s data tracks e-commerce transactions from 80 of the top 100 online retailers in the U.S. to arrive at its conclusions.

Buy online, pick up in store also took on increased importance this year as consumers sought to avoid crowds amid the pandemic. Curbside pickup on Cyber Monday jumped 30% versus last year.

“Throughout the remainder of the holiday season, we expect to see record sales continue and curbside pickup to gain even more momentum as shoppers avoid crowds and potential shipping delays,” said Taylor Schreiner, a director at Adobe Digital Insights.

Not all the news was good. Digital sales fell short of Adobe’s initial forecast of $12.7 billion. The prediction had been revised lower in recent days, as it became clear that holiday shopping began much earlier in 2020 than in previous years. As a result, Adobe trimmed its digital sales forecast for this year’s holiday season to $184 billion, up roughly 30% compared with last year. That’s down from its original forecast of $189 billion.

Many online retailers began offering holiday bargains starting as early as October in response to the Amazon.com Inc‘s (NASDAQ: AMZN) belated Prime Day sale and the pandemic. These factors likely helped downplay the overall importance of Black Friday and Cyber Monday in the holiday shopping season.

Adobe’s data echoes the results released by some of the predominant players in the e-commerce arena. Amazon said that sales by independent businesses on its platform soared 60% year over year to a record $4.8 billion. For the same period, Shopify Inc (NYSE: SHOP) said merchants generated sales of $5.1 billion, up 76% during the holiday weekend. 

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

More reading

• 2 reasons Amazon will keep taking ad sales from Google
• Shopify reports record-setting Black Friday sales
• Forget eBay, Shopify is a better e-commerce stock
• How the biggest companies are the worst investments
• 10 most searched shares in Australia

Danny Vena owns shares of Adobe Systems, Amazon, and Shopify. 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 Adobe Systems, Amazon, and Shopify 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 Adobe Systems and Amazon. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Cyber Monday sales hit a record $10.8 billion appeared first on Motley Fool Australia.

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

from Motley Fool Australia https://ift.tt/2VlYlIl

The Zip Co Ltd (ASX: Z1P) share price is edging higher this morning following the release of an update on its performance in November.

At the time of writing, the buy now pay later provider’s shares are up 0.5% to $6.06.

How did Zip perform in November?

Zip’s update reveals that it continues to deliver record results across all regions.

This led to the company recording record transaction value of $577.1 million in November, up 44% on October and more than 100% year on year. Based on this, Zip’s transaction value is now annualising at almost $7 billion.

This strong growth was driven by a 157% increase in monthly transaction numbers and a 104% year on year increase in customer numbers to 5.3 million. A total of 464,000 customers were added during November.

No details were provided in respect to Zip’s bad debts or arrears.

How is it performing in different regions?

The company’s US business was arguably the star of the show in November.

It reported a 12% month on month increase in customer numbers to 2.8 million and a 65% month on month lift in transaction volume to $264.2 million.

In the ANZ region, Zip reported a 9% month on month lift in customer numbers to 2.5 million and a 30% month on month increase in transaction volume to $312.9 million.

Both regions delivered 50% increases in transactions during November in comparison to October.

“Extremely pleased.”

Managing Director and CEO, Larry Diamond, said: “We are extremely pleased with the BFCM [Black Friday – Cyber Monday] results and more broadly the entire month of November. Through our deep merchant relationships, we were able to secure a number of unique deals & offers which were delivered to our highly engaged customer base.”

“We saw a continued shift to online with strong buying in consumer electronics, appliances, gaming, gifts and apparel categories. Zip finished FY20 on $3.2bn in transaction volume (on a pro forma basis) and already by November, we are run-rating at approximately $7bn.”

“November was clearly a stand-out month for the Company processing over $570m, and are seeing continued momentum as we close out the calendar year. Zip is well on its way to becoming the first payment choice everywhere and every day,” he concluded.

More reading

• Flight Centre and Mesoblast were among the most traded shares on the ASX last week
• ASX 200 drops 0.5%: Treasury Wine sinks, Zip flat after AGM update, Bega Cheese rises
• Zip (ASX:Z1P) share price climbs higher following AGM update
• 5 things to watch on the ASX 200 on Monday
• 5 things to watch on the ASX 200 next week

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

The post Zip (ASX:Z1P) share price higher after record November performance appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2I4ztBS

The West African Resources Ltd (ASX: WAF) share price is surging almost 8% higher this morning after the company announced high grades and extensive visible gold have been intercepted in the deep diamond drilling at its Sanbrado Gold Project in Burkina Faso. At the time of writing, the West African Resources share price is trading at 99 cents, having closed at 92 cents in yesterday’s session.

Details of the gold find

The gold miner says that the deep diamond drilling beneath reserves at its M1 South site has returned high grade results including:

• 6 million ounces at an average grade of 20.5 g/t gold from 1211.5 metres, including 0.5 million at 167 g/t gold
• 6.5 million ounces at an average of 16.1 g/t gold from 1230 metres, including 0.5 million at 124 g/t gold

West African says the intercepts were all made greater than 900 metres below surface, and more than 400 metres beneath current probable ore reserves. This find has strengthened the potential to extend the M1 South underground mine life.

Reporting to be postponed to first-quarter

Commenting on the find, West African executive chairman, Richard Hyde, says that the company’s reporting will be delayed to include the latest find. He said:

The new results are along strike from TAN20-DD235 which returned 7m at 20 g/t gold in Q3 this year. Two drill holes are in progress at 330 metres and 980 metres respectively, and need to be completed and assayed before resources can be updated for M1 South.

Reporting of resources, reserves and the life of mine production profile for Sanbrado originally scheduled for release in Q4 2020, will now be released in Q1 2021 to allow the current drilling program to be completed and any further results to be included.

How did the West African Resources share price perform in 2020

The mining company has poured 45,400 ounces of gold in the three months to the end of September from its flagship Sanbrado project – a 40% increase over the prior quarter. 

Earlier this month, West African also announced it has repaid $35 million of its $245 million debt facility to Taurus Funds Management in order to save on interest costs.

The West African Resources share price has increased by more than 120% this year, driven by results from the Sanbrado drilling. The share price reached its 52-week high of $1.23 in October. 

West African currently commands a market capitalisation of around $813 million.

More reading

• 3 reasons why I’d buy high-yielding dividend shares today for passive income
• Meet the most unpopular ASX large cap stock according to analysts
• Mesoblast (ASX:MSB) share price jumps 19% on FDA update
• Why the Telix (ASX:TLX) share price is up 9% to a new record high today
• Spirit Technology (ASX:ST1) share price on watch after cyber security acquisition

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

The post West African Resources (ASX:WAF) share price jumps 8% on gold strike appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/39xX1u7

High-yielding dividend shares could offer a generous passive income relative to other mainstream assets. Low interest rates mean that the returns on cash and bonds are low, while high house prices may limit yields on property.

Furthermore, high-yielding dividend shares may offer opportunities for income growth over the long run as the economy’s performance improves. Their high yields may also suggest that they offer good value for money after the 2020 stock market crash.

High-yielding dividend shares can offer a generous passive income

With interest rates currently at low levels, there are more limited opportunities to make a passive income than there have been in the past. Previously, many investors have relied on cash or bonds to provide an income. However, they currently offer very disappointing returns in many cases. In fact, it may prove difficult to obtain an income return that is above inflation from those asset classes.

Furthermore, relatively high house prices mean that the yields on property may be low. Alongside the risk of buying property directly, such as difficulties diversifying, and the large amount of capital it requires, buying high-yielding dividend shares for a passive income could be a more attractive opportunity.

Dividend growth opportunities

As well as a generous passive income today, high-yielding dividend shares could produce growth opportunities in the coming years. The economic outlook is currently challenging, which may mean that dividend growth is somewhat limited in the near term. However, over the long run, the prospects for the world economy could improve.

Fiscal and monetary policy stimulus in many of the world’s major economies could have a positive impact on the operating environment for many businesses. This may mean that they pay larger dividends to their shareholders, thereby increasing their income investing appeal relative to other mainstream assets. This could make them increasingly popular among a broader range of investors, and could contribute to capital appreciation over the coming years.

Low valuations may lead to high capital returns

High-yielding dividend shares could offer more than just a passive income. Their high yields suggest, in many cases, that they offer wide margins of safety. Investor sentiment has improved significantly since earlier this year. However, some stocks trade at low prices, which could mean that they offer recovery potential in the coming years as market conditions and investor confidence towards risky assets improves.

Certainly, there are risks ahead for high-yielding dividend shares. Brexit and the coronavirus pandemic may mean that investor sentiment is weak and share prices fall in the near term. However, with a lack of income opportunities available elsewhere and the stock market having a solid track record of recovering from even its very worst declines, the total returns on offer from dividend stocks could be relatively attractive over the long run.

More reading

• West African Resources (ASX:WAF) share price jumps 8% on gold strike
• Meet the most unpopular ASX large cap stock according to analysts
• Mesoblast (ASX:MSB) share price jumps 19% on FDA update
• Why the Telix (ASX:TLX) share price is up 9% to a new record high today
• Spirit Technology (ASX:ST1) share price on watch after cyber security acquisition

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

The post 3 reasons why I’d buy high-yielding dividend shares today for passive income appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3fYmpue

Australia has the dubious honour of having the most unpopular listed stock exchange operator in the world in the eyes of analysts.

I am referring to the ASX Ltd (ASX: ASX) share price, which is lagging behind its peers.

But that hasn’t won it any friends among stock analysts, especially after its latest screw up that shut down the exchange two weeks ago.

Worst rated ASX stock on the ASX 200

Even with the underperforming ASX share price, stock analysts believe the stock is still too expensive, reported Bloomberg.

There are zero sell-side analyst willing to recommend the ASX as a “buy” and 11 “sell” ratings. This makes the stock the lowest ranked stock by consensus rating on the S&P/ASX 200 Index (Index:^AXJO)!

If that wasn’t embarrassing enough, Bloomberg also pointed out that the ASX share price is also ranked the lowest among global security and commodity exchanges.

ASX under pressure

ASX’s chief executive Dominic Stevens hasn’t had a good run as he investigates the second major outage under his four years stint at the helm

The ASX traced last month’s outage that shut the bourse for the entire day, save for the first 20-odd minutes of trade, to a software bug.

Stevens told the Australian Financial Review that heads will roll if he finds any executives responsible for the crippling oversight.

I wonder if Stevens is sweating after his counterpart at the Tokyo Stock Exchange resigned this week after a similar issue.

The humiliating screw-up could force the ASX to spend extra on infrastructure at a time when analysts are concerned about earnings growth and its sky-high valuation.

ASX share price lags international peers

To be sure, the ASX isn’t the only stock exchange that has suffered embarrassing glitches. Besides the Tokyo Stock Exchange, Bloomberg points out that the New Zealand Stock exchange went offline for four days following a cyber attack and that the Euronext and Mexican market operators suffered shutdowns in October.

The ASX share price is underperforming its peers though. The stock dipped 1.5% since the start of 2020.

In contrast, the Japan Exchange Group Inc (TYO: 8697) share price surged 39%, the NZX Ltd (NZE: NZX) share price rallied 35% and the Euronext NV (EPA: ENX) share price is up around 23%.

More room to fall

Even though the ASX share price has fallen behind, it’s the most expensive of its peers as it trades on a forward price-earnings multiple of 31 times.

The multiple is even richer than the 20.5 times that the ASX 200 is trading on.

The ASX share price is priced for perfection. Pity experts don’t feel the same way about its performance.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 rises on Tuesday
• CBA (ASX:CBA) and the ASX banks just had an amazing month
• Why the Afterpay (ASX:APT) share price and these ASX stocks could get a boost next week
• Fund managers are snapping up these ASX stocks at a record pace

Motley Fool contributor Brendon Lau has no position in any of the stocks mentioned. Connect with me on Twitter @brenlau.

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

The post Meet the most unpopular ASX large cap stock according to analysts appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/33BRLlg