• Why the Accent (ASX:AX1) share price will be on watch this morning

    shoes asx share price represented by white shoes against pink and blue background

    Accent Group Ltd (ASX: AX1) shares will be on watch this morning as the company provided a trading update after yesterday’s market close. At Thursday’s closing bell, the Accent share price finished the day 1.26% lower at $2.35. It will be interesting to see which way the shoe retailer’s shares move today after investors digest the company’s latest results.

    How did Accent perform for H1 FY21?

    The Accent share price will be in focus this morning following the company’s release of a strong performance update for the first half of FY21.

    For the period ending 27 December, Accent reported favourable trading conditions particularly in the last two months.

    The company revealed that total sales jumped 12.3% and like-for-like (LFL) sales grew 7.4% in November and December. Overall, LFL sales delivered a 2.7% lift over the first half period. When factoring out the closure of Auckland, Victoria, and Adelaide stores, LFL sales growth recorded a 12.3% increase.

    In addition, digital sales for the group set a record, up 110% to $108.1 million compared to the prior period. This segment reflected 22.3% of the entire group’s sales.

    As a result, Accent advised group earnings before interest, tax, depreciation and amortisation (EBITDA) will be between $95 million and $98 million. This reflects robust growth of around 40% to 45% on the prior comparable period.

    In the release, Accent went on to mention that it continues to maintain disciplined cost controls to protect its balance sheet. The company also advised that rental reductions and government wage subsidies helped drive the first half’s positive results. 

    Due to the continuing uncertainty surrounding COVID-19, however, the retailer did not provide guidance for its second-half year result.

    Management commentary

    Accent Group CEO Mr Daniel Agostinelli touched on the company’s effort, saying:

    I am delighted with the way our team has executed through the all-important November cyber events and the lead up to Christmas. Our strong focus and capability in digital, combined with operational excellence in merchandise and store execution has delivered a strong, trading led result.

    The Company’s store network and best in class digital fulfilment capability, allowed us to fulfill significant volumes of online Christmas customer orders placed up until 22 December in time for Christmas Day.

    Accent share price snapshot

    Since March, the Accent share price has rebounded from its COVID-19 lows of 55.5 cents. It’s also worth noting that Accent shares are currently trading just shy of their $2.41 all-time high reached on Wednesday this week.

    Based on the current Accent share price, the company commands a market capitalisation of around $1.27 billion.

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    Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. 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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  • 2 top ASX growth shares to buy in January

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    Looking to add a few growth shares to your portfolio this month? Then you might want to get better acquainted with the ones listed below.

    The two shares listed below have been growing strongly and have been tipped to continue doing so in the future. Here’s what you need to know about them:

    ResMed Inc. (ASX: RMD)

    The first growth share to look at is ResMed. It is a medical device company with a focus on sleep treatment products and ventilators.

    ResMed has been growing at a consistently strong rate over the last decade and looks well-placed to continue this positive form. This is due to its world-class, cloud-connected hardware and software solutions, and its huge addressable market.

    In respect to the latter, management currently estimates that there are 936 million people with sleep apnoea globally, with the majority of these sufferers undiagnosed. In addition to this, the company notes that there are 380 million people who suffer from chronic obstructive pulmonary disease (COPD) and over 340 million people living with asthma. These are all people whose lives could be improved with ResMed’s products in the future.

    One broker that is very positive on the company’s future is Credit Suisse. It has an outperform rating and $31.00 price target on its shares.

    Zip Co Ltd (ASX: Z1P)

    Another growth share to look at is Zip. It is a leading buy now pay later provider with operations across several key markets such as Australia, the United Kingdom, and the United States.

    Thanks to the growing popularity of the payment method with consumers and merchants, the decline in credit card usage, and its international expansion, Zip has been growing its customer and sales numbers at a rapid rate.

    For example, for the month of October, Zip delivered a 104% increase in transaction volume of $401.1 million from its 4.8 million customers. This annualises to $4.8 billion, which is a big lift on FY 2020’s numbers.

    The company has been tipped to continue this strong growth in the future. This is thanks to positive industry tailwinds, the shift to online shopping, and new product launches. The latter includes Zip Business and its Tap & Zip product.

    Analysts at Morgans are very positive on its outlook. They currently have an add rating and lofty $9.80 price target on its shares. 

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  • Why the Creso Pharma (ASX:CPH) share price rocketed 47% higher

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    The market may have surged higher on Thursday but that was nothing compared to the gain made by the Creso Pharma Ltd (ASX: CPH) share price.

    The cannabis company’s shares rocketed a whopping 47% higher to 26 cents.

    Why did the Creso Pharma share price rocket higher?

    Investors were buying the company’s shares on Thursday after the Democrats won the Georgia Senate run-off, effectively handing control of the Senate to them.

    This could be good news for Creso Pharma and other cannabis companies because of President elect Joe Biden’s policies.

    During the election campaign, Biden’s team showed their support for cannabis decriminalisation, with Chuck Schumer stating that legalisation would be a major priority in a Democratic controlled Senate.

    Given that the Senate is now controlled by the Democrats, there could soon be meaningful cannabis policy reforms. And this could come sooner than you might expect, given concerns that the Republicans could take back a seat next year at the mid terms.

    Forbes commented: “Make no mistake, the window for reform is likely a short one. While the Republican party rank and file are in majority support of legalization, GOP leadership in Congress, and Mitch McConnell in particular, has been no supporter of legalization.”

    “Historically, the party in control of the White House tends to lose seats during a mid-term election, particularly when they Control all branches of the federal government. Democrats must govern under the assumption that Republicans will take back at least one chamber of Congress in the 2022 midterm elections. If they retake the Senate and Mitch McConnell reassumes his role as Majority Leader, any hope of significant cannabis reform will likely go out the window.”

    This bodes well for Creso Pharma and goes some way to explaining why its shares smoked the market yesterday.

    Though, it is worth remembering that the company is just one of a growing number of companies looking to take advantage of potential changes to legislation.

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  • 2 quality ASX dividend shares to buy

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    Are you looking for some dividend shares for your portfolio? Then check out the two ASX shares listed below.

    Both have been tipped as buys and look set to provide attractive dividend yields in 2021:

    Charter Hall Social Infrastructure REIT (ASX: CQE)

    The first ASX dividend share to look at is the Charter Hall Social Infrastructure REIT. It is the largest Australian ASX-listed real estate investment trust that invests in social infrastructure properties.

    Charter Hall Social Infrastructure REIT targets ongoing capital growth by focusing on assets in strategic locations with specialist use, limited competition, low substitution risk, and high underlying land values. It expects this to drive high tenant retention rates over the long term.

    Goldman Sachs is a fan of Charter Hall Social Infrastructure REIT and has a conviction buy rating and $3.35 price target on its shares. The broker is expecting a 15 cents per share dividend in FY 2021. Based on the latest Charter Hall Social Infrastructure REIT share price, this represents a 4.7% yield.

    Lendlease Group (ASX: LLC)

    Lendlease is a global property and infrastructure company that Goldman Sachs also likes.

    While it was a disappointing performer in FY 2020 and reported a loss of $310 million, its outlook has improved greatly since then. This is thanks to the divestment of its struggling engineering business and the launch of a major new strategy.

    The latter is shifting its earnings mix and business model favourably and looks to have positioned it perfectly for long term growth.

    Goldman Sachs is a fan of this new strategy and expects its shares to rerate to higher multiples if it executes it successfully. The broker has a buy rating and $16.65 price target on the company’s shares.

    It is also forecasting a 37.7 cents per share dividend in FY 2021. Based on the current Lendlease share price, this equates to a 2.9% yield. After which, a yield of 5.3% is expected in FY 2022.

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  • 5 things to watch on the ASX 200 on Friday

    ASX 200 shares

    On Thursday the S&P/ASX 200 Index (ASX: XJO) was back on form and stormed higher thanks to strong gains in the banking and resources sectors. The benchmark index jumped 1.6% to 6,712 points.

    Will the market be able to build on this on Friday? Here are five things to watch:

    ASX 200 poised to rise.

    The Australian share market looks set to push higher on Friday. According to the latest SPI futures, the ASX 200 is poised to open the day 11 points or 0.2% higher. This follows another very strong night of trade on Wall Street which in late trade sees the Dow Jones up 0.7%, the S&P 500 up 1.45%, and the Nasdaq up a sizeable 2.4% to a record high.

    Tech shares on watch.

    It could be a great day of trade for Afterpay Ltd (ASX: APT), Xero Limited (ASX: XRO), and other tech shares after their US counterparts surged higher. In late trade on Wall Street, the technology-focused Nasdaq index is up a massive 2.4% and above the 13,000 points mark for the first time in its history. Investors were buying shares after Congress confirmed the election of Joe Biden as president and traders looked beyond the unrest in Washington.

    Oil prices continue to rise.

    It could be another positive day for energy producers such as Beach Energy Ltd (ASX: BPT) and Oil Search Ltd (ASX: OSH) after oil prices rose again. According to Bloomberg, the WTI crude oil price is up 0.4% to US$50.832 a barrel and the Brent crude oil price is up 0.1% to US$54.37 a barrel. Traders have been buying oil this week following a surprise production cut by Saudi Arabia.

    Iron ore rises again.

    Mining giants BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) were very strong performers on Thursday and stormed to record highs. All eyes will be on their shares again on Friday after the iron ore price continued to rise. The spot iron ore price rose 1.8% to US$171.69 a tonne overnight.

    Gold price recovers.

    Gold miners including Evolution Mining Ltd (ASX: EVN) and Newcrest Mining Ltd (ASX: NCM) could have a better day after the gold price recovered slightly. According to CNBC, the spot gold price has risen 0.35% to US$1,915.80 an ounce. It is still down meaningfully since this time last week.

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

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  • ASX 200 rose 1.6%

    ASX 200

    The S&P/ASX 200 Index (ASX: XJO) went up by 1.6% today to 6,712 points.

    There were incredible scenes in the US after the Capitol building was stormed. But eventually Congress certified Joe Biden as the next president.

    Here are some of the highlights from the ASX:

    Strong share price movements

    The strongest performer within the ASX 200 today was Rio Tinto Limited (ASX: RIO), its share price went higher by 8.6%. The BHP Group Ltd (ASX: BHP) share price rose by more than 6%.

    Another of the strongest performers was Janus Henderson Group (ASX: JHG), the share price went up around 8%.

    Oil producer Santos Ltd (ASX: STO) saw its share price rise 7.4% after yesterday’s oil price cut from Saudi Arabia.

    The IGO Ltd (ASX: IGO) share price went up another 7.4% today after an increase yesterday.

    Lynas Rare Earths Ltd (ASX: LYC) was another of the top performers within the ASX 200, the Lynas share price grew by 7.25%.

    But there were also some heavy movements in the red as well. Tech names were sold off. At the bottom was the Xero Limited (ASX: XRO) share price which fell 5%. The Afterpay Ltd (ASX: APT) share price dropped just over 4% and the Altium Limited (ASX: ALU) share price also fell around 4%. Rounding out the worst five performers in the ASX 200, the Charter Hall Group (ASX: CHC) share price dropped 5% and the Silver Lake Resources Limited. (ASX: SLR) share price dropped 4.25%.

    Outside of the ASX 200, there were some other strong performers. The Contact Energy Limited (ASX: CEN) share price went up 14%, the EBOS Group Ltd (ASX: EBO) share price went up 7.5% and the Meridian Energy Ltd (ASX: MEZ) share price also grew 7.5%.

    Zebit Inc (ASX: ZBT) sales

    Zebit announced its FY20 fourth quarter and total FY20 sales numbers.

    The ASX share announced that it had delivered record FY20 net sales of US$88.1 million, which was higher than FY19.

    FY20 fourth quarter net sales of US$44.8 million beat the prior corresponding period by 35.2%, or US$11.6 million.

    In December 2020 net sales were US$21.3 million, which was a 55.4% increase compared to December 2019.

    Zebit said that it executed 8 new business to business acquisition partnerships that accounted for 28,800 registered users in the fourth quarter of FY20. The company finished with 792,000 registered users at the end of the year.

    Zebit CEO Marc Schneider said: “The strength of Zebit’s performance through the fourth quarter is a bellwether for the increasing demographic of consumers who value and repeatedly use the company’s e-commerce services. We expect strong growth in 2021 as we expand our reach in helping the increasing number of Americans living paycheck to paycheck purchase everyday products that many of us take for granted. In addition to its primary e-commerce sales channel, as physical retail stores reopen, Zebit will also enable consumers to continue to finance purchases in physical retailers through sales of electronic gift certificates on our platform that can be redeemed in brick and mortar.”

    The Zebit share price went up 12.6% today.

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

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  • 3 ASX mining shares hitting 52-week highs today

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    The S&P/ASX 200 Index (ASX: XJO) had a cracking day today, with the benchmark index closing 1.59% higher.

    However, these 3 resource companies had an even better time, smashing through to set new 52-week highs.

    Here’s the latest for these 3 rallying resource shares.

    Which mining shares are rocketing?

    Pilbara Minerals Ltd (ASX: PLS)

    The Pilbara Minerals share price was up 7% to $1.07. This comes after the shares surged 7.49% yesterday when the lithium producer revealed its second quarter shipments to the market.

    As shown in the release, spodumene concentrate shipments had reached record levels for the December quarter. Pilbara advised that this was due to the improved demand conditions and an upward trend in lithium chemicals pricing in China.

    The concentrate shipped for the December quarter was 38% higher than the previous quarter.

    Lynas Rare Earths Ltd (ASX: LYC)

    The Lynas share price was up 7.24% for the day, hitting $4.59. Despite no recent news coming out from the company, the share continues to climb.

    The rare earths supplier could be benefitting from the ongoing trade tensions with China. Coincidentally, Lynas is the only major rare earths producer outside of China, making it attractive during such political instability.

    Yet, UBS downgraded Lynas to “neutral” in December. The broker suggests that the future electric vehicle demand has been built into the share price.

    Fortescue Metals Group Ltd (ASX: FMG)

    The Fortescue share price was up 3.47% to $25.92. The iron ore producer continues to benefit from the high commodity price. Today iron ore prices increased once again to $166.76 per tonne.

    Supply issues for other iron ore producing competitors, paired with China’s growing demand have helped Fortescue’s share price increase 143.61% over the last 12 months alone.

    In a December article from The Australian Financial Review, the Department of Industry, Science, Energy and Resources stated that it expected the price driving factors to persist for a further 6 months at minimum.

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    Motley Fool contributor Mitchell Lawler owns shares of Lynas Limited. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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  • 2 fantastic ASX growth shares that could beat the market in 2021

    Are you looking for growth shares with the potential to beat the market in 2021? Then you might want to take a look at the ones listed below.

    They have been tipped as buys and for big things in 2021. Here’s what you need to know:

    Adore Beauty Group Limited (ASX: ABY)

    The first growth share to look at is Adore Beauty. It is a recently listed online retailer which sells beauty and personal care products. It currently has over 590,000 Active Customers across the ANZ region on its platform and is expecting to generate revenue of $158.2 million in 2020. This will be a 76% increase on 2019’s sales.

    Pleasingly, this revenue is still only scratching at the surface of an ANZ beauty and personal care products market that was worth $10.9 billion in 2019. This gives the company a long runway for growth over the next decade.

    Morgan Stanley is a fan of the company and appears very positive on its future. The broker recently put an overweight rating and $8.35 price target on the company’s shares. It believes the company will benefit from the shift to online shopping, which is accelerating because of the pandemic.

    Pushpay Holdings Group Ltd (ASX: PPH)

    Another growth share to look at is Pushpay. It is a leading donor management and community engagement platform provider for the faith sector. 

    As with Adore Beauty, it has a significant runway for growth over the next decade. In FY 2020, Pushpay delivered a 32% increase in revenue to US$129.8 million. Whereas it now has a long term aim of growing its share of the US medium to large church market to 50%. This represents a US$1 billion opportunity, which is almost eight times greater than FY 2020’s revenue.

    The US$87.5 million acquisition of church management system provider Church Community Builder is expected to play a key role in the company achieving this target. This acquisition has bolstered its offering and led to the launch of ChurchStaq.

    Churchstaq is the combination of its Pushpay and Church Community Builder software. It brings together digital giving, donor development, church apps, and church management software (ChMS) to deliver a fully integrated engagement platform.

    Goldman Sachs sees a lot of promise in the platform and believes Pushpay is well-placed for growth. It has a conviction buy rating and ~$2.59 price target on its shares.

    Where to invest $1,000 right now

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    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 PUSHPAY FPO NZX. The Motley Fool Australia has recommended PUSHPAY FPO NZX. 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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  • Which 2 ASX shares have rocketed up more than 200% in 6 months?

    Two boys with cardboard rockets strapped to their backs, indicating two ASX companies with rocketing share prices

    Two ASX shares have done particularly well over the last 6 months, with their share prices tripling during that period.

    The Redbubble Ltd (ASX: RBL) share price rose from $1.94 in early July 2020, to its current price of $6.20 – a gain of 219%.

    The Chalice Mining (ASX: CHN) share price, meanwhile, did even better and quadrupled in value in that period. Its share price rose from $1.05 in July 2020, to the current share price of $4.48 – that’s a return of more than 325%.

    Let’s take a look at what’s been driving their share prices up.

    Redbubble

    Redbubble, like many other online ASX retailers, has been one of the big beneficiaries of the COVID-19 lockdown in 2020 as more people changed their shopping habits to online.

    As a result, the Redbubble share price has been one of 2020’s top performers on the ASX.

    The boost in its share price over the last 6 months has been underpinned by the company’s acceleration in revenues in the second-half of FY20.

    The company reported a surge of 132% in revenues. Meanwhile, its operating earnings before interest, tax, depreciation and amortisation (EBITDA) increased from $6.3 million in FY19, to $15.3 million in FY20.

    At its annual general meeting (AGM) in October, the company said its focus in FY20 had been on artists onboarding, intellectual property protection, and search engine optimisation (SEO) improvements.

    Redbubble says that its main focus this year will be on active outreach to high-value artists, and aligning more of its brands to customers.

    Chalice Mining

    The strong performance in the Chalice Mining share price has been on the back of metals discoveries at its Julimar Nickel-Copper Project in Western Australia, as well as its Pyramid Hills Gold Project in Victoria. 

    In November, the company updated the market of its drilling progress at Julimar, saying that deposits found mean that the mine is emerging as a “globally significant deposit of critical metals in Western Australia.”

    In its Pyramid Hills gold mine, the company also revealed significant gold deposits from its drilling program. The company said it identified several higher-grade primary gold zones, and planned to extensively extend the drill program around the area.

    The drilling projects are continuing at both mines.

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    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. 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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  • 2 explosive ASX tech shares to buy in January

    man holding light bulb next to growing piles of coins

    A new month is here, so what better time to look to see if there are any additions you could make to your portfolio to take it to the next level.

    If you’re interested in the tech sector, then you might want to take a look at the shares listed below.

    Bigtincan Holdings Ltd (ASX: BTH)

    The first tech share to look at is Bigtincan. Its sales enablement software platform provides businesses with the information, content, and tools to sell more effectively. Demand for the company’s platform has been growing strongly in recent years and continued to do so during the pandemic. This led to it recording strong recurring revenue growth in FY 2020.

    Pleaisngly, this strong form has continued in FY 2021. Management is expecting annualised recurring revenue (ARR) to be in the range of $49 million to $53 million this year. This represents a 37% to 48% increase year on year.

    One broker that is positive on the company is Canaccord Genuity. It has been pleased with its positive start to FY 2021 and put a buy rating and $1.40 price target on its shares.

    ELMO Software Ltd (ASX: ELO)

    Another growing tech share to look at is ELMO. It is a cloud-based human resources and payroll software company that provides businesses with a unified platform to streamline processes such as employee administration, recruitment, and payroll.

    Like Bigtincan, ELMO has been a strong performer during the pandemic and looks well-placed to continue this trend in the future. Especially given the strong demand it is experiencing for its platform and management’s penchant for making earnings accretive acquisitions.

    One of those acquisitions was the recent $32 million acquisition of UK-based Breathe. This acquisition is expected to provide ELMO with market expansion and cross sell opportunities.

    Morgan Stanley is a fan of ELMO and believes it is well-placed for growth. The broker has an overweight rating and $9.30 price target on its shares at present.

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    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 BIGTINCAN FPO and Elmo Software. The Motley Fool Australia has recommended BIGTINCAN FPO and Elmo Software. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

    The post 2 explosive ASX tech shares to buy in January appeared first on The Motley Fool Australia.

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