The Carsales.Com Ltd (ASX: CAR) share price is up almost 5% this morning following its latest market trading update. The Carsales share price has rallied strongly since late March, regaining most of its losses during the first wave of the coronavirus pandemic.

Update on impending FY 2020 results

Carsales’ adjusted total revenue is predicted to be flat and in the range of $419 million to $423 million for FY 2020. That compares with total revenue of $418 million for FY 2019. Adjusted revenue included $26 million of revenue billed but not charged due to the COVID-19 support package. Reported revenue, when this figure is not included, would actually result in growth of between -5% to -6%.

Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) is, however, expected to show modest growth for FY 2020. Carsales estimates that it will be in the range of $228 million to $232 million. If achieved, that would be growth in the range of 5% to 6% for the full financial year.

Lead and traffic volumes improving in Australia, but inventory declines

Carsales pleasingly reported that lead volumes and traffic for Australia continue to improve, since its last market update. The easing of social distancing measures is definitely helping in this respect. Lead volumes for the period between 22 April and 16 June were reported to have grown strongly over the prior corresponding period in 2019.

Total inventory has, however, actually declined over the prior 6-week period. Carsales noted that Australian dealers are facing difficulties with regards to acquiring new and used car stock. This is due do the challenging current environment.

However, on a positive note, there has been a significant reduction in the time required to sell its stock. This is due to the reduction of social distancing restrictions. Many people are now looking to add an additional car to their household to avoid using public transport.

Korea performs well, Brazil remains challenged

In Korea, Carsales’ ownership in SKEncar (a secondhand vehicle company) continues to perform well. Inventory, listing volumes and traffic are pleasingly all up.

Brazil, however, is a different story. This is due to the escalation of the COVID-19 outbreak over there.

Will the Carsales share price continue its rise?

The company’s share price has regained most of the losses that it suffered during the initial phase of the outbreak. It is now trading at $17.76  after being as low as $10.47 in late March.

Where Carsales shares continue to from here will be interesting, in any case. 

This market update appears to be reasonably solid considering the challenging market conditions. However, its share price is not looking as cheap as it was back in March.

More reading

• Why a2 Milk, Carsales, Fisher & Paykel Healthcare, & Starpharma are surging higher
• Here are 2 top ASX tech shares for your portfolio
• Is the SEEK share price a buy right now?
• Here’s why automotive shares could boom post-COVID-19
• The one sector that could experience a V-shape COVID-19 recovery

Motley Fool contributor Phil Harpur owns shares of carsales.com Limited. The Motley Fool Australia has recommended carsales.com 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.

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In late morning trade the S&P/ASX 200 Index (ASX: XJO) is on course to record another solid gain. At the time of writing the benchmark index is up 0.45% to 5,969.9 points.

Four shares that have not been able to follow the market higher today are listed below. Here’s why they are tumbling lower:

The G8 Education Ltd (ASX: GEM) share price is down 1% to 94 cents on the day of its annual general meeting. The childcare centre operator advised that its booked occupancy is currently ~65%, with physical attendance of ~53%. The lower attendance rate is due to some parents continuing to choose to keep their children at home despite having a booking at a centre.

The InvoCare Limited (ASX: IVC) share price has fallen 3% to $11.05. Investors have been selling the funeral company’s shares in response to a broker note out of Macquarie. According to the note, the broker has downgraded InvoCare’s shares to an underperform rating with a lowered price target of $10.20. Macquarie believes the company is losing market share and could fall short of earnings expectations.

The Megaport Ltd (ASX: MP1) share price has dropped 4.5% to $13.38. This follows the sell down of shares by a substantial shareholder. According to the release, Digital Realty has sold 7.7 million Megaport shares for an average of $13.36 per share. This represents a total consideration of approximately $103 million. Digital Realty retains 2 million shares and has advised that it remains committed to its strategic partnership.

The Webjet Limited ASX: WEB) share price is down 2% to $4.02. Investors appear to be taking profit after the online travel agent’s shares rocketed higher on Tuesday. However, as I pointed out here earlier, Webjet now has a market capitalisation greater than its pre-pandemic level. As such, its shares may not be as cheap as you think despite their heavy decline this year.

More reading

• Is the Webjet share price going to crash lower?
• ASX 200 jumps almost 4%, Webjet share price soars
• 3 ASX 200 shares to buy for income and growth
• Leading brokers name 3 ASX 200 shares to sell today
• ASX 200 falls 2%, ASX travel shares drop heavily

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 MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended InvoCare Limited and MEGAPORT FPO. 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.

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The AGL Energy Limited (ASX: AGL) share price has been under pressure in 2020.

While the S&P/ASX 200 Index (ASX: XJO) is down 11.1% this year, AGL’s value has plummeted 16% to $17.25 per share at the time of writing.

ASX energy companies have been hit hard by the coronavirus pandemic and recent bear market, but could AGL be in the buy zone?

Why AGL Energy shares have slumped lower this year

AGL is currently trading at just $17.25 but started the year at $20.58. The oil price war between OPEC+ and Russia hit ASX energy shares hard in February.

However, AGL isn’t a large oil producer compared to its energy peers like Santos Ltd (ASX: STO). The Santos share price has fallen 33.4% in 2020 which probably reflects the higher oil exposure compared to AGL.

In contrast, AGL is one of the largest ASX-listed investors in renewable energy. AGL has strong interests in renewables which could be a real bonus as Australia looks to kickstart its economy.

Fellow ASX energy share Origin Energy Ltd (ASX: ORG) is down 29.8% this year, which means AGL seems to be outperforming its peers with its 16% drop.

But given the non-cyclical nature of earnings, could AGL shares actually be undervalued?

Is $1,000 worth of shares a smart investment?

Despite relatively strong performance compared to its ASX energy peers, AGL is still underperforming the ASX 200 benchmark index.

However, I think AGL shares still have strong potential to outperform in 2020. If we are set for tough economic times this year, that could mean AGL is a good buy for income.

If earnings remain solid in August, that could bode well for further share price growth towards the end of the year.

Of course, if the sector bounces back then arguably Origin may be better value given its strong declines.

Foolish takeaway

It’s very hard for even the best investors to pick good value ASX shares right now. AGL shares have underperformed so far this year but could be a cheap buy if you’re buying and holding for the long-term.

More reading

• 3 reasons to buy ASX 200 shares right now
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 jumps almost 4%, Webjet share price soars
• Top brokers just upgraded these ASX 200 shares today
• 3 ASX 200 shares to buy for income and growth

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.

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Investing $1,000 every other month may not seem like it has the potential to change your life, but you’d be wrong.

The Australian share market has provided investors with an average total return of 9.2% per annum over the last 30 years.

This means that if you had invested $1,000 every other month and earned the market return, you would have grown your wealth to just under $930,000 today.

This is good for two reasons. Imagine you started investing these funds when you were 20. Now you would be 50 years old and have a share portfolio worth almost one million dollars.

If you were to now rotate your portfolio into high yield income shares that collectively offer a yield of 5%, you would generate $46,500 of income each year from these investments. That could arguably be enough for some people to quit the day job and start living a life of leisure if they have paid off their mortgage already.

Overall, I believe this demonstrates why investing on a regular basis and with a long term view can be a very rewarding endeavour and something you’ll be very thankful for in the future.

With that in mind, here are three shares that I think would be great options for a $1,000 investment today:

a2 Milk Company Ltd (ASX: A2M)

I think a2 Milk Company could be a great option for that first $1,000 investment. Although the company has been growing at a very strong rate over the last few years, I’m confident it still has a long runway for growth. Especially given the increasing demand for its infant formula products. In addition to this, I believe a2 Milk Company could accelerate its growth with new product launches and acquisitions in the near future.

Altium Limited (ASX: ALU)

This award-winning printed circuit board (PCB) design software provider could be another ASX share to buy. It has also been growing at a rapid rate over the last few years. This has been driven by the proliferation of electronic devices globally which has led to increasing demand for its software. Pleasingly, with the Internet of Things boom still accelerating, I think the future looks very bright for Altium.

IDP Education Ltd (ASX: IEL)

A final option to consider investing $1,000 into is IDP Education. It is a leading provider of international student placement services and English language testing services. Although its near term growth will inevitably be impacted by the pandemic, I expect it to rebound strongly once the crisis passes. Outside this, I believe its long term outlook is very positive due to its sizeable opportunity, strong market position, and growing software business.

More reading

• Why these ASX shares could help you beat the market
• 3 ASX shares to buy and hold for the next decade
• Is the Altium share price the steal of the century?
• Leading brokers name 3 ASX 200 shares to buy right now
• Why Appen, Healius, IDP Education, & Propel shares are racing 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 Altium and Idp Education Pty Ltd. The Motley Fool Australia owns shares of A2 Milk. 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.

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It’s hard to know whether to buy or sell ASX 200 shares right now. The S&P/ASX 200 Index (ASX: XJO) has been volatile in recent days as investors worry about the recent bull run.

But despite the share market heating up, now is not the time to panic.

Here are a few things that I think are worth considering if you’re nervous about buying right now.

3 reasons to buy ASX 200 shares right now

The first thing to remember is why you’re investing in the first place. While it could be to make a quick buck, it’s most likely to build long-term wealth and enjoy a nice retirement.

That means that stepping out of the market while ASX 200 shares are volatile may not be the best strategy.

For instance, many investors missed out on huge winners like Afterpay Ltd (ASX: APT) because they cashed out of the market.

There are many Aussie companies that have shed billions in value this year. That could present some great buying opportunities right now.

The coronavirus pandemic hit global markets hard and ASX 200 shares like Woodside Petroleum Limited (ASX: WPL) have crashed lower in 2020.

That leads me to my second point: market timing.

In the long-run, it’s just not possible to time the market correctly. It’s easy to say that but not follow through, especially in a bear market. However, if you’re investing for the long-term, you should drown out the noise.

Consistently investing in ASX 200 shares is the best way to achieve long-term returns. That means you can invest for your time horizon in the decades ahead and not worry about current movements.

Transaction costs and taxes are two factors that can deplete your after-tax returns which investors often forget.

A final reason to invest in ASX 200 shares right now is that there aren’t many other good options available.

Interest rates are at record lows which means savings accounts and bonds don’t offer much yield.

Aussie property tends to be very expensive which means shares are really one of the few high-yield options available right now.

Foolish takeaway

These are just a few reasons to buy ASX 200 shares in the current market rather than not investing at all and holding cash.

More reading

• Is $1,000 invested in AGL Energy shares a smart investment?
• Will the Afterpay share price hit $100 in 2020?
• Why Afterpay and these ASX shares just stormed to new highs
• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 jumps almost 4%, Webjet share price soars

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.

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If you’re looking for a source of income from dividend shares, then I think Commonwealth Bank of Australia (ASX: CBA) is a great option to consider.

I believe it is the highest quality bank on the Australian share market and expect its shares to provide investors with a very generous yield in 2021 (even after factoring in a dividend cut).

However, given that a lot of investors already have meaningful exposure to the banks, it might not be suitable for everyone.

In light of this, I have picked out three ASX dividend shares which I think would be quality alternatives to the banks. They are as follows:

Aventus Group (ASX: AVN)

I think Aventus could be a good dividend option. It is a retail property company specialising in large format retail parks across Australia. Aventus’ rental income has a reasonably high weighting towards everyday needs, with homewares, electrical, furniture, bedding and hardware making up the balance. I think this is a good and robust mix and leaves it well-placed for growth over the coming years. In respect to its distribution, Goldman Sachs recently forecast a ~17.3 cents per unit distribution in FY 2021. This equates to a forward ~7.9% distribution yield.

Dicker Data Ltd (ASX: DDR)

Another dividend share to consider buying instead of the banks is Dicker Data. It is a leading distributor of information technology products. It has delivered consistently solid earnings and dividend growth over the last few years thanks to its strong market position, growing demand, and the addition of new vendors. The good news is that I remain confident that this growth can continue over the coming years. And based on the high levels of insider buying it continues to report, its management team does as well. This year Dicker Data intends to pay a 35.5 cents per share. This represents a fully franked ~5% yield.

Wesfarmers Ltd (ASX: WES)

Lastly, I think this conglomerate is a dividend share to buy. Wesfarmers is the company behind brands such as Bunnings, Kmart, Target, online retailer Catch, and Officeworks. In addition to its retail exposure, the company owns a number of businesses in the chemicals and industrials industries. It also has a hefty cash balance which I suspect could be used to make earnings accretive acquisitions in the near term. Combined, I believe Wesfarmers is well-placed to grow its earnings and dividends at a solid rate over the coming years. At present I estimate that its shares offer a forward fully franked ~3.5% dividend yield.

More reading

• 3 high yield ASX dividend shares for income investors
• ASX 200 jumps 3%: CBA rebounds, Afterpay hits a new record high
• Why I would buy Wesfarmers and these ASX dividend shares
• Can ASX big banks generate an attractive sustainable dividend yield from FY21?
• 2 of the best ASX dividend shares for retirees to buy today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Dicker Data Limited. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended AVENTUS RE UNIT. 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.

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The Webjet Limited (ASX: WEB) share price was on fire on Tuesday and rocketed materially higher.

The online travel agent’s shares jumped over 11% to finish the day at $4.10.

Despite this strong gain, the Webjet share price is still down over 57% since the start of the year.

Does this make Webjet shares a bargain buy?

Unfortunately, at the current level I think Webjet is far from a bargain buy. In fact, I believe it shares are very expensive despite their significant decline.

As I mentioned here previously, at the start of the year when nobody had heard of COVID-19, Webjet’s market capitalisation stood at just under $1.3 billion.

A market capitalisation is essentially the value of the company. It represents the total number of shares on issue multiplied by the share price of the time. At that point Webjet had a total of ~135.6 million shares outstanding and a share price of $9.49.

How much do you think Webjet’s market capitalisation is today?

Given that its shares price is down 57% since the start of the year, you might expect that its market capitalisation would be down by the same amount to $559 million. But it isn’t.

Webjet actually has a market capitalisation of approximately $1.4 billion.

Yes, you read that correctly. Despite the tourism industry grinding to a halt during the pandemic and the next year or two looking incredibly uncertain, investors are giving Webjet a higher valuation.

How is this possible? This appears to have been caused by investors not taking into account Webjet’s highly dilutive capital raising.

This capital raising means there are now a total of ~339 million shares outstanding. Which, when multiplied by the current share price, equates to a market capitalisation ~$100 million higher than its pre-pandemic valuation.

Short interest building.

In light of this, I can’t say I’m surprised that short sellers have begun to target Webjet. Short sellers are investors that profit when a share price declines.

On Monday, Webjet had 9.2% of its shares held short, making it one of the 10 most shorted shares on the ASX.

In light of the above, although I am a big fan of Webjet and its brands, I think it is a very risky share to own at the current level.

More reading

• ASX 200 jumps almost 4%, Webjet share price soars
• ASX 200 falls 2%, ASX travel shares drop heavily
• These 5 ASX shares were last week’s best performers
• Is the Webjet share price ridiculously cheap?
• ASX winners and losers from last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. 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.

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The Afterpay Ltd (ASX: APT) share price has rocketed 93% higher since the start of the year to $56.52.

That would be impressive growth at the best of times, let alone after a steep bear market. Afterpay shares slumped as low as $8.01 before rocketing more than 600% higher in the last three months.

It’s been a wild ride for long-term Afterpay shareholders in recent years. In fact, the Afterpay share price was trading at just $2.95 in June 2017.

But could Afterpay repeat the trick and double again in 2020?

Why the Afterpay share price could surge higher

It’s fair to say investors panicked as coronavirus restrictions took hold in February. Shares in the buy now, pay later company plummeted lower before rocketing even higher than where they started.

Afterpay has a $15.1 billion market capitalisation right now. This means the Aussie payments company could leapfrog into the ASX 50 by the end of the year.

$100 per share seems like a long way from the current Afterpay share price of $56.52. However, Afterpay has proven time and again that it can deliver strong growth to shareholders.

The group’s retail merchant networks continue to grow and bad debts are staying low. Successful expansions into the United States and the United Kingdom have also been strong growth factors.

But there’s no such thing as a sure thing in ASX shares, particularly in this market. I’m expecting there to be more volatility on the way, especially as government stimulus measures are wound back.

If we see another strong earnings result, then the Afterpay share price could surge towards $100 per share. However, any slight wobble could send the company’s shares into another slump.

Foolish takeaway

The Afterpay share price has already delivered strong returns for long-term shareholders. But now it’s always a question of, ‘is it too late to buy?’.

I think there’s still strong growth potential for Afterpay despite increasing competition at home and abroad.

I wouldn’t say $56.52 per share is a cheap buy, but if earnings continue to grow then who knows how high it could go.

More reading

• Why Afterpay and these ASX shares just stormed to new highs
• ASX 200 jumps almost 4%, Webjet share price soars
• ASX tech shares are soaring – these are my top 3 today
• The Zip Co share price is up 500%. Too late to invest?
• Why Afterpay, Super Retail, Uniti, & Viva Energy are charging higher

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of AFTERPAY T FPO. 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.

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