The SelfWealth Ltd (ASX: SWF) share price hit a new all-time high of $0.60 today after the company released its quarterly report for the period ending June 2020. The SelfWealth share price is currently up by 13.46% to sit at $0.59 per share.

What were the highlights from SelfWealth’s quarterly report?

SelfWealth has seen 6 consecutive months of record trade volumes, after recording a 112% increase in quarter on quarter trading volume of 340,000 for the June period. In addition, the budget broker saw a 44% quarter on quarter increase in ‘active traders’ over the last 3 months, with 46,445 customers using the platform.

The June quarter also saw SelfWealth report its first ever positive cash flow of $809,000. In addition, the broker also reported a 101% increase in quarter on quarter revenue of $4.18 million for the June period. The influx of new clients and share market rally has seen the total securities held on SelfWealth’s holder identification number (HIN) rise to $2.52 billion at the end of June.  

The company’s management attributed the growth to large numbers of investors entering the share market as a result of the coronavirus pandemic changing investor behaviour. SelfWealth cited ultra low interest rates and the digitisation of investments markets as key factors in drawing in new users.

The company also provided an update on its US equity trading platform, which is expected to launch later in the year.

What does SelfWealth do?

SelfWealth is a budget platform that offers retail investors a flat fee of $9.95 for every trade on the ASX. In addition, the company also offers auxiliary services such as a community sharemarket forum and a premium forum for $20 per month.

In early March, the company completed a $3 million capital raise, with funds being used to build and maintain growth in the business, develop its platform technology and new product initiatives. By offering low-cost brokerage fees and adapting to the digitisation of investment markets, SelfWealth aims to attract new investors, particularly those from the younger demographics.

Foolish takeaway

The SelfWealth share price has more than tripled for the year. At the time of writing, the company’s share price is trading 13% higher after hitting a new all-time high earlier of $0.60 per share.

More reading

• Have $10,000 to invest? I’d pick these ASX shares
• Are Afterpay shares the next Visa?
• Kogan and 1 other ASX share to buy and hold beyond 2025
• ASX 200 falls 0.7%, Qantas and Afterpay make a partnership
• 2 ASX shares I would buy for growth and income

Motley Fool contributor Nikhil Gangaram 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 SelfWealth share price surges to all-time high on quarterly report appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3gtHnA7

US stocks are outperforming ASX shares in the COVID-19 rebound and Australian investors are hopping onboard this trend.

While the S&P/ASX 200 Index (Index:^AXJO) performed remarkably well during the coronavirus meltdown, US equities have raced ahead, particularly the tech-laden Nasdaq Composite (INDEXNASDAQ: .IXIC).

Aussies are joining in the party as US tech stocks are among the favourite their picks in the month of June, according to investment platform eToro.

Racing to the top

Electric car icon Tesla Inc (NASDAQ: TSLA) tops the list of US stocks being snapped up by Aussie investors last month – at least that’s the case for eToro’s clients.

The stock recently reached a record high despite its founder Elon Mask’s attempt to talk it down by questioning its lofty valuation.

“Tesla’s share price was up more than 22 per cent in June as it went on to breach $1,000, smashing its record high,” said eTora analyst Josh Gilbert.

“The electric vehicle giant is the world’s most valuable carmaker and can put its recent success down to improved sales in China.

“A recent email leaked from Tesla CEO Elon Musk saw the share price surge more than 8 per cent in June, as Musk showed optimism the company could break even in the second quarter.”

Other popular stocks include some of the FANG stocks such as Facebook, Inc. Common Stock (NASDAQ: FB), which is ranked number five, and Amazon.com, Inc. (NASDAQ: AMZN), ranked seventh.

Taking big risks

However, there are a few interesting US stocks among the top 10 list. One that stands out for me is car rental company Hertz Global Holdings Inc (NYSE: HTZ), which is trading under bankruptcy protection.

The pandemic forced the overindebted group to its knees and the outlook isn’t so good as international travel looks to be off the agenda for a while yet.

But investors have been happy to buy the stock despite the very real risk that they will lose everything. The flood of liquidity from central banks may be one reason why retail investors are clambering to climb the risk curve with greater gusto than professionals.

Other interesting stocks on the list include aircraft maker Boeing Co (NYSE: BA) and carrier American Airlines Group Inc (NASDAQ: AAL). Perhaps Aussie investors are looking for an alternative to Qantas Airways Limited (ASX: QAN).

Foolish takeaway

Investing in blue-chip US stocks is one way to gain diversification in your portfolio as long as you know what you are doing and can spend the time doing your homework.

But there are real concerns about overstretched valuations for some of the more popular US names. While sometimes it can pay to run with the crowd, those that are happy to follow the herd will need to be nimble.

If the tide turns, and that’s a question of “when” not “if”, stocks that have climbed the highest have the farthest to fall.

Those looking for stocks with solid fundamentals even during these trying times might want to read this free report from the experts at the Motley Fool.

Click on the free link below to find out more.

More reading

• Is the Ramsay Health Care share price a buy?
• Why the Mesoblast share price is leading the ASX 200 on Monday
• Afterpay share price pushes higher on Qantas partnership
• Cochlear and these ASX 200 shares could be fantastic buy and hold investments
• The latest ASX 200 stocks crashing on broker downgrades

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors.

Brendon Lau 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 Amazon, Facebook, and Tesla and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Amazon and Facebook. 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 The most popular US shares that Aussies are buying includes a few surprising names appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2O0zPZE

The JB Hi-Fi Limited (ASX: JBH) share price has been amongst the ASX 200 retail shares rocketing higher in 2020.

While fears over the coronavirus pandemic sparked the February/March bear market, strong government stimulus measures, together with a surge in online shopping, have sparked the recovery for many retail shares.

In fact, the JB Hi-Fi share price has rocketed 14.3% higher this year and is sitting just shy of its all-time high.

While that seems logical given strong sales in early 2020, let’s rewind the clock. If you had told me in February that ASX retail shares were going to outperform in 2020, there’s no way I would have believed you.

Afterall, this was when we were seeing more voluntary administrations in the sector including big names like Jeanswest. So, is the recent ASX retail rally a flash in the pan or is it time to invest?

Why ASX 200 retail shares are surging

JB Hi-Fi is definitely something of a special case. The nature of COVID-19 restrictions has meant more Aussies have been forced to work from home. This triggered a spending spree on home electronics and accessories, therefore boosting sales.

However, JB Hi-Fi isn’t the only ASX retail share that’s been climbing recently. Although being down for the year, the Super Retail Group Ltd (ASX: SUL) share price has rocketed nearly 140% since 19 March.

That’s despite the group’s brands, which include Supercheap Auto, Macpac, BCF and Rebel Sport, having no obvious relationship with the work from home trend.

I think one big contributing factor here has been the government stimulus measures. Many Aussies have been receiving JobKeeper or JobSeeker and piling that cash into the economy. This has been good news for some retailers which have seen sales grow accordingly.

Will the strong share price growth continue?

The big question right now is what happens in September? That’s when many of the big stimulus measures are set to drop away and expose the economy to reality.

I believe there could be a lot of companies having been propped up over the last few months that may seriously struggle once the government stimulus dries up. 

It’s hard to see where potential share price growth will come from for the rest of the year. If we do see a ‘V-shaped’ recovery, then that could be the spark ASX retail shares need to climb higher.

However, according to an article by a leading fundie published in yesterday’s AFR, even ASX supermarket shares like Coles Group Ltd (ASX: COL) are set to struggle. The reason given was that it is likely the double digit growth recently experienced by many retailers has ‘pulled forward’ future growth. If this really is the case, it suggests the strong sales performances we have witnessed among some retailers in the COVID-19 environment are unsustainable longer term.

Foolish takeaway

There’s no doubt some ASX 200 retail shares have delivered for investors in 2020.  However, I think there are signs that the short-term gains may not be sustainable as a long-term trend.

I’m personally not looking to buy in at current prices with the looming uncertainty surrounding September/October this year. While supermarket shares and even some other areas of retail could offer defensive earnings, I’m not sure there’s great value in buying at current prices.

More reading

• ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000
• These are 10 most shorted shares on the ASX
• 5 ASX shares rated as strong buys by brokers
• 3 top ASX dividend shares I would buy next week
• 2 ASX dividend shares with yields over 6%

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. The Motley Fool Australia owns shares of COLESGROUP DEF SET. 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 Are ASX 200 retail shares like JB Hi-Fi overvalued? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3f3AchT

The Woodside Petroleum Limited (ASX: WPL) share price has plunged 37% lower in 2020, but how does it stack up against its peers?

What do I need to know about Woodside?

Woodside is the largest Australian natural gas producer and a leader in the ASX energy sector. It hasn’t been the best year for oil and gas investors, with the Woodside share price plummeting to to $21.61 per share from highs of around $35 in January.

The coronavirus pandemic has hit ASX shares hard, however, the ongoing oil price war has arguably had a larger impact on ASX energy shares. While tensions between OPEC+ and Russia appear to be easing, the Woodside share price doesn’t look like it is bouncing back anytime soon.

The brinkmanship shown from leading world oil producers has created a supply glut and even briefly sent oil prices negative. These depressed prices don’t bode well for Woodside’s profitability or share price growth in FY 2020.

According to the ASX, Woodside has 954.36 million shares on issue, which currently gives the company a market capitalisation of $20.6 billion. While impressive, that’s a long way shy of its 2 January valuation of $32.9 billion.

The Woodside share price currently trades at a price to earnings (P/E) ratio of 40.76 with a dividend yield of 6.32%. It’s not easy to say whether an ASX share is good value in isolation, so let’s take a look at some other ASX energy shares right now.

How do Woodside compare to its competitors?

	Woodside Petroleum Limited (ASX: WPL)	Santos Limited (ASX: STO)	Oil Search Limited (ASX: OSH)
2020 share price change	-37.91%	-37.28%	-56.23%
Market capitalisation	$20.6 billion	$10.9 billion	$6.6 billion
P/E ratio	40.7	11.3	11.1
Dividend yield	6.3%	3.1%	4.3%

Table: Author’s own. Source: Google Finance, ASX.com.au

Is the Woodside share price good value?

The table above paints a pretty dire picture of the ASX energy sector right now. Despite tough times, Woodside has almost double the market capitalisation of Santos and more than triple that of Oil Search.

While the Woodside share price is yielding 6.3% right now, I wouldn’t bank on that dividend given the tough conditions facing the sector right now.

The company’s shares are also trading at a P/E ratio nearly 4 times higher than its peers. That to me says that the Woodside share price is a touch overvalued, or at the very least, not a cheap buy at its current valuation.

More reading

• ASX 200 Weekly Wrap: Afterpay, Tech push ASX 200 back above 6,000
• 5 things to watch on the ASX 200 on Monday
• Here’s how to play China’s V-shaped growth story
• 5 things to watch on the ASX 200 on Friday
• Is the Oil Search share price worth buying?

Motley Fool contributor Ken Hall 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 Is the Woodside share price a better buy than its ASX energy peers? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2Der7on

The Ramsay Health Care Limited (ASX: RHC) share price jumped 3.6% higher last week but is it a good buy in the ASX healthcare sector?

What does Ramsay Health Care do?

Ramsay Health Care is a private healthcare provider with operations across Australia, Europe and Asia. The company was founded in Australia in 1964 and now employs more than 77,000 staff. Ramsay delivers a range of health care from primary care through to highly complex surgery, mental health care and rehabilitation.

What’s been happening in the last few months?

It’s been a big 6 months for the Ramsay Health Care share price and the company’s investors. The ASX healthcare provider was one of the harder hit shares in the February/March bear market, falling 42.2% in the space of a month to a 52-week low of $46.12 per share. 

The coronavirus pandemic spooked investors generally but many sold out of the healthcare sector in particular. Fears of hospitals being overrun with COVID-19 patients had many nervous that Ramsay would struggle to maintain operations in 2020.

This hasn’t proven to be the case, however, and the Ramsay Health Care share price has since bounced back to $66.41 per share. But us long-term investors can’t afford to look exclusively in the rear-vision mirror. So, what else could make Ramsay a good value buy this year?

How strong are the company’s financials?

Ramsay Health Care released its half-year earnings on 27 February for the year ended 31 December 2019. All in all, I thought it was a solid result from the ASX healthcare share. Group revenue climbed 22.5% to $6.3 billion. This was led by strong results from its Australia/Asia, United Kingdom and Continental Europe segments. 

Earnings before interest, tax, depreciation, amortisation and restructuring/rent costs (EBITDAR) surged 17.4% to $1.1 billion. Meanwhile, net profit after tax climbed 3.4% on a like for like basis to $273.6 million. These figures were excluding the contributions of Capio AB, the Swedish healthcare company acquired by Ramsay in 2018.

How does the Ramsay Health Care share price compare to its peers?

Despite a recent recovery, the Ramsay Health Care share price remains down 7.8% in 2020 but is still outperforming the S&P/ASX 200 Index (ASX: XJO). The company’s shares currently trade at a price to earnings (P/E) ratio of 25.7 with a 2.30% dividend yield. 

By itself, that’s not necessarily a bad thing, particularly given the potential for short-term growth in healthcare demand. In terms of its peers, the Healius Ltd (ASX: HLS) share price trades at a P/E of 19.0 with a 1.9% dividend yield.

All in all, I think the Ramsay Health Care share price is probably neither cheap nor overvalued right now. Despite some strong tailwinds, the healthcare industry could easily come under pressure in 2020. I personally don’t think I’ll be buying in unless this ASX health care share falls further.

More reading

• The most popular US shares that Aussies are buying includes a few surprising names
• Why the Mesoblast share price is leading the ASX 200 on Monday
• Cochlear and these ASX 200 shares could be fantastic buy and hold investments
• The latest ASX 200 stocks crashing on broker downgrades
• Analysis: Is the Polynovo share price good value?

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Ramsay Health Care 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 Is the Ramsay Health Care share price a buy? appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2D4rwtl

With so many shares to choose from on the ASX, it can be hard to decide which ones to buy.

The good news is that brokers across the country are doing a lot of the hard work for you.

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

Cleanaway Waste Management Ltd (ASX: CWY)

According to a note out of Morgan Stanley, its analysts have commenced coverage on this waste management company’s shares with an overweight rating and $2.45 price target. The broker believes that Cleanaway’s vertical integration and large collections business gives it an edge over the competition. And while it sees some short term pain during the pandemic, it is very positive on its long term growth prospects in a lucrative market. It also sees opportunities for consolidation in the industry. I agree with Morgan Stanley and would be a buyer of its shares.

Lovisa Holdings Ltd (ASX: LOV)

Analysts at Morgans have retained their add rating but trimmed the price target on this jewellery retailer’s shares to $8.14. According to the note, the broker wasn’t surprised to see Lovisa’s sales fall heavily in the second half. And although it expects its sales recovery to take time due to its reliance on foot traffic, it still sees a lot of value in its shares at the current level. Especially given its expansion opportunities. I would have to agree with Morgans and feel the Lovisa share price is good value at present.

Reject Shop Ltd (ASX: TRS)

Another note out of Morgan Stanley reveals that its analysts have upgraded this discount retailer’s shares from an underweight rating to an overweight rating and lifted the price target on them materially to $10.00. According to the note, the broker believes Reject Shop has a big opportunity in a fragmented market. And while it acknowledges that its performance has underwhelmed in the past, it is optimistic that its new simplified strategy will be that start of something positive. While I think Morgan Stanley makes some good points, I think the Reject Shop share price looks expensive at over 50x estimated FY 2021 earnings.

More reading

• How to turn $20,000 into over $200,000 in 10 years with ASX shares
• Lovisa share price up 5% as retailer provides business update
• Why Lovisa, PointsBet, Transurban, & WiseTech shares are racing higher
• Lovisa share price on watch after full year sales update
• 3 ASX cleantech shares to consider buying 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. 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 Leading brokers name 3 ASX shares to buy today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2NYy7rA

WAM Leaders Ltd (ASX: WLE) has cemented its place as a top ASX dividend share after announcing a dividend increase for the FY20 final dividend. The WAM Leaders share price is up 5%.

Overview of WAM Leaders

WAM Leaders is a listed investment company (LIC) that actively invests in large cap ASX shares.

It’s operated by Geoff Wilson’s Wilson Asset Management (WAM) with the lead portfolio manager being Matthew Haupt. It was launched in May 2016.

FY20 details

The full report wasn’t released today, but WAM Leaders announced a number of key aspects about its FY20 result.

The ASX dividend share stated that its investment portfolio had significantly outperformed during FY20. In the 12 months to 30 June 2020 the investment portfolio outperformed the S&P/ASX Accumulation Index by 10.4% with a positive return of 2.7%. The benchmark fell 7.7%.

Since inception in May 2016 the WAM Leaders investment portfolio has increased 10.2% per annum, outperforming the index by 3.7% per annum.

WAM Leaders attributed its investment approach as the reason for the outperformance. It focuses on large companies with “compelling fundamentals, a robust macroeconomic thematic and a catalyst to drive the share price higher”.

A 15% dividend increase

The ASX dividend share’s board has declared a fully franked final dividend of 3.25 cents per share, bringing the FY20 full year dividend to 6.5 cents per share. The FY20 annual dividend is 15% bigger than the FY19 total.

WAM Leaders funds its dividend from the investment profits that it makes. Building up the profit reserve is important to pay for future dividends.

At 30 June 2020 the company had an estimated profit reserve of 15.6 cents per share before the payment of the fully franked final dividend of 3.25 cents per share. This represents 2.4 years of dividend coverage at the current level.

The ASX dividend share’s board said it’s committed to paying an increasing stream of fully franked dividends to shareholders as long as it has sufficient profit reserves, franking credits and it makes sense to do so.

Since inception the LIC has paid 16.9 cents per share in fully franked dividends. It has grown its dividend each year since FY17 when it first started paying a dividend.

Top holdings at 30 June 2020

A LIC’s return is dictated by the performance of its holdings.

At the end of FY20 its biggest holdings, in order, were: National Australia Bank Ltd (ASX: NAB), CSL Limited (ASX: CSL), BHP Group Ltd (ASX: BHP), QBE Insurance Group Ltd (ASX: QBE), Westpac Banking Corp (ASX: WBC), Commonwealth Bank of Australia (ASX: CBA), Santos Ltd (ASX: STO), Woolworths Group Ltd (ASX: WOW), Wesfarmers Ltd (ASX: WES), Australia and New Zealand Banking Group (ASX: ANZ), Telstra Corporation Ltd (ASX: TLS) Rio Tinto Limited (ASX: RIO), Star Entertainment Group Ltd (ASX: SGR), Downer EDI Limited (ASX: DOW) and Transurban Group (ASX: TCL).  

Many of the above names are similar to the biggest names on the ASX. It may be noteworthy that NAB is the biggest holding whilst the ANZ position is smaller than Wesfarmers and Woolworths. Star and Downer are two other interesting investments that aren’t in the ASX 20.

Foolish takeaway

The ASX dividend share has been an impressive performer during FY20. Plenty of WAM Leaders’ positions that I mentioned above probably won’t be giving shareholders a dividend increase due to COVID-19. So I think it’s impressive that WAM Leaders is increasing the income for shareholders.

At the current WAM Leaders share price of $1.14 it offers a grossed-up dividend yield of 8.1%.

More reading

• Why Electro Optic Systems, Mayne Pharma, Tyro, & WAM Leaders are racing higher
• 3 of the best ASX dividend shares for income
• 3 dividend shares I’d buy to boost my income
• If I won the lottery I’d buy these 6 ASX shares

Tristan Harrison 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 owns shares of and has recommended Telstra Limited. The Motley Fool Australia owns shares of Transurban Group and Wesfarmers 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 ASX dividend share WAM Leaders announces a great FY20 dividend appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/38t7nZA