With the Sydney Airport Holdings Pty Ltd (ASX: SYD) share price down 3.1% this week, and flat in afternoon trading today, is now a good time to buy some shares?

Like many investors, I’ve been keeping a keen eye on Sydney Airport since the share price crashed 48% in February and March during the COVID-19 market rout.

Now, it’s regained 26% since the 19 March low. But with domestic and international travel restrictions gutting its revenues, the share price rebound has significantly lagged the average within the S&P/ASX 200 Index (ASX: XJO).

Sydney Airport’s share price remains down 31% year-to-date. The ASX 200, edging higher after losing ground this morning, is down 9%.

What does Sydney Airport do?

Sydney Airport Holdings owns a 100% interest in Sydney Airport, offering an international gateway connecting to more than 90 other airports around the world.

Headquartered in Sydney, the company provides aeronautical, retail, property, car rental, and parking and ground transport services through its 2 main business units: Aviation (Sydney Airport) and Leasing & Advertising Opportunities.

Sydney Airport shares began trading on the ASX in 2002.

Why Sydney Airport is looking more attractive at today’s share price

If you merely look at the immediate picture, Sydney Airport’s share price might seem overvalued, rather than beaten down.

From a short-term perspective, the company’s September 2020 traffic performance report tells you all you need to know.

Sydney Airport reported 132,000 passengers in September. That’s down a gut churning 96.4% on September 2019 numbers. International passenger numbers plunged the most, down 97.5%. But the domestic number, down 95.7%, wasn’t much brighter.

Despite one-way travel from New Zealand to New South Wales, the Australian Capital Territory and the Northern Territory kicking off on 16 October, the company expects the downturn in passenger traffic to “persist until further government travel restrictions are eased”.

And that will almost certainly be the case.

Moving forward

Domestic traffic through Sydney Airport will likely gradually increase over the coming months, presuming Australia can keep the coronavirus in sharp check. Two-way international travel to a few other nations with minimal to no infectious cases may follow sometime next year.

This tells me Sydney Airport’s revenue likely won’t recover to its January 2020 levels for some time yet.

And with most investors focused on shorter-term share price gains, Sydney Airport’s share price likely won’t rebound to its 17 January level of $8.81 per share (or higher) any time soon either.

But here’s the thing. Unless the coronavirus (or some new version thereof) continues to plague the world without an effective vaccine or treatment, passengers will return to Sydney Airport.

As the head of Tourism Australia, Phillipa Harrison told the Australian Financial Review (AFR):

All the portents are good for us going forward – market research indicates people want to come here when they can travel again, and (travel) agents want to deepen their knowledge of selling Australia…

This isn’t something that will transpire in a matter of weeks, or even months. But given time, Sydney Airport’s current share price of $5.81 may well look like a bargain.

More reading

• What do you do when your ASX 200 shares are falling?
• ASX 200 flat: Afterpay impresses, Coles beats expectations, & HUB24 in a trading halt
• The RBA says the recession could be over. What does it mean for your ASX shares?
• 5 things to watch on the ASX 200 on Wednesday
• The ASX 200 sank almost 2% today

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. 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 After sliding 3% this week, is Sydney Airport’s (ASX:SYD) share price a buy? appeared first on Motley Fool Australia.

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The quarter ended 30 September 2020 was a volatile period for ASX gold shares, with the rising gold price being offset by the surging Aussie dollar. This saw many ASX gold shares push higher into record territory, followed by a sharp pullback.

The gold price has taken a breather around the US$1,900 level but the upcoming US election and anticipated US fiscal stimulus package could be the catalyst to push gold higher. 

Before we look forward, let’s take a look back at how ASX gold shares performed in the latest quarter. 

Newcrest Mining Limited (ASX: NCM) 

Newcrest could be considered the ‘gold’ standard amongst ASX gold shares, boasting some of the largest reserves, lowest production costs and a suite of technical capabilities. Its FY20 report revealed a solid performance with the company producing 2.2 million ounces of gold at an all-in sustaining cost (AISC) of US$862 per ounce.

Underlying profit of $750 million was 34% higher than the prior period primarily driven by a higher realised gold price and higher copper production at its flagship Cadia, Lihir and Telfer mines, which account for more than 75% of the group’s total gold production. These benefits were partially offset by the lower gold sales driven by lower production and higher operating costs at Cadia and Lihir. 

Despite a highly profitable and operationally sound quarter, the Newcrest share price went full circle to hit a record all-time high of $38.00 before a sharp pullback to bring its quarterly returns to around breakeven. This coincided with the Aussie dollar rally, which weakened profitability for the gold miners. 

Newcrest appears to be making a significant effort in investing for the future with a free cash flow of negative $621 million, which includes payments for the following: 

• $1.3 billion to acquire Red Chris mine and increase exposure to Fruta del Norte mine
• $273 million on major capital projects 
• $113 million on exploration. 

Overall, Newcrest cements its position as one of the largest and most efficient gold producers in the world. The company has successfully navigated the operational challenges of COVID-19 and looks to have an exciting pipeline of growth projects to maintain its operational performance for the medium to long term

Saracen Mineral Holdings Limited (ASX: SAR) and Northern Star Ltd (ASX: NST) 

While it didn’t occur in the last quarter, this article wouldn’t be complete without mentioning the fact that Saracen and Northern Star announced one of the biggest mergers in the ASX gold space in early October. Post-completion, Saracen shareholders will own 36% of the merged group while Northern Star shareholders will own 64%. 

The merger is a logical combination of highly complementary assets given the proximity of each other’s mines and joint ventures. In 2019, Saracen and Northern Star became 50/50 joint owners of the KCGM mine in the world-class geological district of Kalgoorlie, WA. The merger will consolidate the ownership of KCGM and respective Kalgoorlie district operations into one company for the first time in its history.

Given the proximity of the group’s operations in Kalgoorlie and Yandal, WA, it believes that the merger will unlock between $1.5 billion to $2 billion in synergies from combined strategic, corporate, mining and processing synergies. In the case of KCGM, the mine represents the biggest producing asset for the group with the highest reserves. Consolidating its ownership will streamline its operations, drive efficiency, and accelerate growth options. 

The announcement saw the Saracen and Northern Star share prices rocket some 15% in the trading sessions that followed. The transaction is subject to approval by Saracen shareholders and the Supreme Court of WA. However, an indicative completion date has been set for February 2021. While its difficult to gauge where the Saracen and Northern Star share prices will go in the meantime, this is no doubt one of the most exciting mergers to take place for ASX gold shares.

Evolution Mining Ltd (ASX: EVN)

Evolution is in many ways the quiet achiever among the ASX gold shares. It’s one of the top 3 largest gold-producing companies in Australia behind Newcrest and Northern Star. It doesn’t quite grow as fast as Northern Star or Saracen, but possesses a very low AISC comparable to that of Newcrest.

For the 3 months ended 30 September, Evolution’s gold production came in at 170,021 ounces, which was a 22% reduction on the prior quarter. This was made up of:

• Cowal production of 51,774 ounces
• Ernest Henry production of 24,569 ounces
• Red Lake production of 26,638 ounces
• Mungari production of 35,370 ounces
• Mt Rawdon production of 20,024 ounces
• Mt Carlton production of 11,646 ounces.

This production was achieved with an AISC of $1,198 per ounce, up from $1,088 per ounce in the previous quarter.

All operations generated positive net mine cash flow during the quarter, with mine operating cash flow and net mine cash flow of A$272.3 million and A$183.4 million, respectively. Mine capital investment for the period was A$88.1 million. As at 30 September 2020, Evolution had cash in the bank of $369.7 million and bank debt of $550 million.

As shown in the table below, Evolution provided a strong 3-year outlook with increased production and lower AISC. Its growth will be driven by its Cowal and Red lake sites. The Red Lake gold operation in Ontario, Canada, is in its early days with significant mineral resource and potential to optimise into a large, long-life mining operation.

3-year outlook	FY21	FY22	FY23
Production (oz)	670,000–730,000	700,000–770,000	790,000–850,000
AISC ($/oz)2	1,240–1,300	1,220–1,280	1,125–1,185
Sustaining Capex ($/M)	112.5–137.5	110.0–135.0	95.0–120.0
Major Capital ($M)	260.0–290.0	250.0–280.0	220.0–260.0
Discovery ($M)	75.0–100.0	70.0–100.0	70.0–100.0

Table: author’s own, Data source: Evolution Mining FY20 report

Foolish takeaway

The gold price is sitting at a cool US$1,900 but fiscal stimulus not just in the US but globally could see the gold price grinding higher. Gold is directly tied to stimulus as the metal is inflation driven. As the government prints more money and devalues currency, the gold price is pushed up.

ASX gold shares have achieved operational excellence in recent years. The shares discussed above all possess different priorities –from focusing on cost efficiencies such as Newcrest and Evolution, or growth and M&A such as Saracen and Northern Star.

In my opinion, gold is at a crossroads and investors should pay close attention to what the sector does next.  

More reading

• 5 things to watch on the ASX 200 on Wednesday
• ASX 200 down 1.2%: Blackmores jumps, Bendigo and Adelaide Bank’s update, Zip sinks
• Northern Star (ASX:NST) share price edges lower despite positive update
• Why the Evolution Mining (ASX:EVN) share price is dropping lower
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Lina Lim 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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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.

The past seven months have been a wild ride for stocks. In March, the market crashed as a result of the coronavirus outbreak. Then, stocks recovered, only to encounter a major sell-off in early September. In fact, the stock market has bounced around a lot in October, and as we inch closer and closer to the upcoming presidential election, we could see even more turbulence.

As an investor, that puts you in a tough spot, so if you’re worried about managing your portfolio during these trying times, here’s one solution worth considering: dollar-cost averaging. It’s a strategy that investing legend Warren Buffett has long advocated, and it’s a good bet for navigating a volatile market like the one we’re in.

How dollar-cost averaging works

The concept of dollar-cost averaging is simple: Pick some stocks, figure out how much you can afford to invest, and then commit to buying shares at preset intervals. For example, say you decide you want to buy Netflix Inc (NASDAQ: NFLX) and can dedicate $200 every two weeks toward its shares. (Technically, $200 isn’t enough to buy a full share of Netflix right now, but you can buy fractional shares instead.) In that case, you’d buy Netflix every other week, regardless of the price it’s trading at on the day you purchase your shares.

The idea behind dollar-cost averaging is that while you might overpay for shares some weeks, you’ll also underpay other weeks. All told, things should all work out in your favor so that you’re ultimately paying a lower price per share all in.

Dollar-cost averaging is a far safer bet than aiming to time the market during periods of volatility, because in doing so, you might miss out on great buying opportunities and risk getting stuck with a higher share price overall. Remember, the stock market is unpredictable on a good week, but when we’re in the midst of election season, it can be even wilder. And at a time like that, being consistent is crucial.

Of course, if you want to take Buffett’s advice even further, employ dollar-cost averaging to buy shares of S&P 500 Index (SP: .INX) index funds. That way, you get exposure to the broader market and aren’t putting all of your money into a single stock. Buffett has stated many times over that index funds are a great way for the average investor to grow wealth, so if you don’t want to do the legwork involved in vetting individual stocks, index funds are the way to go.

Take Buffett’s advice

A man with the investing track record of Buffett is someone to take seriously. If you’re looking to invest in the coming weeks, it pays to employ dollar-cost averaging rather than attempt to time the market in an effort to score the lowest stock prices. Investors who try timing the market often get burned, and given the way stocks could swing in the near term, a stable, steady approach is not only a safer bet, but most likely a more lucrative one as well.

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

More reading

• Why the Tinybeans (ASX:TNY) share price is jumping 16% today
• Why the DroneShield (ASX:DRO) share price is edging higher today
• The ARB (ASX:ARB) share price is up 70% in 2020: Is it too late to invest?
• Why Redbubble, Kogan, Marley Spoon and 1 other ASX share are surging
• Top brokers name 3 ASX shares to buy today

Maurie Backman owns shares of Netflix. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Netflix. The Motley Fool Australia has recommended Netflix. 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 Warren Buffett has this advice for investing in a volatile market appeared first on Motley Fool Australia.

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

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Family photo sharing app Tinybeans Group Ltd‘s (ASX: TNY) shares have risen by 15.87% so far in today’s trading. At the time of writing, the Tinybeans share price is trading at $1.46 after closing yesterday’s session at $1.26. Today’s moves follow an announcement by the company this morning that it hired two new executives in its United States operations. The hires reinforce the importance to the company’s business model of the US market, which is where 92% of its revenue comes from.

According to the release, leading US executives, Andrea Cutright and Kathy Mayor, will join the company as non-executive directors commencing immediately. Both Ms. Cutright and Ms. Mayor have substantial experience in digital marketing – the exact skillset Tinybeans needs to increase its footprint in the market.

Tinybeans in a nutshell

Tinybeans was founded in Sydney in 2012 by Stephen O’Young. It’s a family photo sharing app that helps parents capture and organise their children’s life using photos, video, and written messages. 

One big selling point for the app is that it has privacy features that allow parents to retain legal ownership of their content, unlike other larger social media sites. According to the company, it has a user base of more than 4.65 million people spanning over 200 countries. The app is available in both Android and iOS.

Despite this wide user base, Tinybeans’ revenue is predominantly generated in two countries – the US and Australia. As mentioned, the US makes up 92% of the company’s revenue, while Australia contributes most of the remainder. The company employs both a premium subscription and advertising revenue model.

How healthy is Tinybeans financially?

In the company’s release of its Q1 FY21 update last week, it reported that revenue jumped to $2.5 million, a 123% increase on the prior corresponding period. The record result was achieved by Tinybeans’ premium subscription base growing above 22,000 members, with total registered users surpassing a record 4.65 million. 

Additionally, the company achieved big advertising contract wins this year with Amazon.com, Inc. (NASDAQ: AMZN), Penguin Random House, General Mills, Inc. (NYSE: GIS) and Alphabet Inc‘s (NASDAQ: GOOGL) (NASDAQ: GOOG) YouTube Kids. It already has Walt Disney Co‘s (NYSE: DIS) Disney+ as a client on its books. 

The company uses little debt and has a strong debt to equity ratio of 8.5%, compared to 30.5% in its sector. Its cash position at $5.2 million is strong, which also makes the company relatively liquid compared to the sector. 

About the Tinybeans share price

The Tinybeans share price has been an impressive performer since the beginning of August, delivering a gain of over 80% for shareholders. Year to date, however, the Tinybeans share price has declined by over 34% due to the loss in advertising revenue as COVID-19 disrupted its major advertisers. 

Tinybeans will be hoping that the hiring of experienced executives today will help the company secure more advertising contracts and grow its user base in the US. 

More reading

• Why is the Tinybeans (ASX:TNY) share price edging higher today?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. dsunarto 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 Alphabet (A shares), Alphabet (C shares), Amazon, and Walt Disney. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Tinybeans Group Ltd and recommends the following options: long January 2021 $60 calls on Walt Disney, short January 2022 $1940 calls on Amazon, and long January 2022 $1920 calls on Amazon. The Motley Fool Australia has recommended Alphabet (A shares), Alphabet (C shares), Amazon, Tinybeans Group Ltd, and Walt Disney. 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 DroneShield Ltd (ASX: DRO) share price is edging higher today following the release of its quarterly report for FY21.

Most of the day, the defence contractor’s shares were flat. However, they have since lifted up 2.94% to 18 cents at the time of writing.

What does DroneShield do?

A global leader in drone security technology, DroneShield designs and develops detection systems that use specialised technology to protect people, organisations and critical infrastructure from drones.

Its multi-layered drone countermeasures include detection and disruption products which are much needed in the current environment.

Business update

For the period ending 30 September, DroneShield reported a robust result, despite COVID-19 impacts on areas of the business.

Multiple orders from a range of European, United States, Australian and other customers have contributed to $5.2 million in orders. A majority of these contracts is expected to be fulfilled in the current quarter.

Shipments and payments were affected in the short-term by COVID-19, with $0.4 million in operational cash inflows. In October alone, $0.8 million has been received thus far, doubling the prior quarter.

The company’s pipeline is estimated to be around $100 million, underpinned by substantial United States government business. This includes the first research and development project to enhance the existing DroneSentry-C2 command-and-control system.

In addition, DroneShield has been shortlisted for a major-state-wide prison contract in the United States. The value is said to be worth around $15 million and will be announced between Q4 FY20 and Q1 FY21.

The company ended the quarter with a cash balance of $17.3 million.

Outlook

As international tensions rise, DroneShield is seeing countries increase their defence budgets to accommodate the threat of war. Its products have been used in more than 100 countries around the world through its wide distribution network.

The company said it was not dependant on any one customer for success, and continues to diversify product and service offerings into new markets.

DroneShield share price summary

The DroneShield share price has been slowly recovering from the fallout of COVID-19. After hitting a low of 8.4 cents in March, the company is tracking on an upward trajectory. With a market capitalisation of $67.9 million, DroneShield has room to grow and cement itself as a leading defence contractor.

More reading

• 3 ASX trends to watch in budget week
• Why the Droneshield (ASX:DRO) share price has rocketed higher
• Which shares to buy now with $10,000

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.

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One of the best performers on the S&P/ASX 200 Index (ASX: XJO) in 2020 has been the ARB Corporation Limited (ASX: ARB) share price.

Since the start of the year, the 4×4 accessories manufacturer’s shares have risen a massive 70%.

Why is the ARB share price rocketing higher in 2020?

Investors have been buying ARB’s shares this year following its positive performance in FY 2020 and its strong start to the new financial year.

In FY 2020, ARB reported a 4.6% increase in total revenue to $467 million and a 0.3% lift in net profit to $57.3 million. This was despite its sales being materially impacted during April and May at the height of the pandemic.

Pleasingly, the company bounced back quickly from this and recently released a strong first quarter update for FY 2021.

ARB has achieved unaudited sales revenue growth of 17.7% for the first quarter. This compares to 5% growth during the first quarter of FY 2020.

Things were even better in respect to its profits, with the company’s profit before tax during the first quarter coming in at $29.7 million.

While no comparison was given for the first quarter of FY 2020, it is almost certainly a significant increase on the prior corresponding period. After all, during the entire first half of the previous financial year, ARB recorded a profit before tax of $34.4 million.

This means the company has already achieved 86% of FY 2020’s first half profit before tax after just one quarter.

And although management advised that there is too much uncertainty for it to provide guidance, it appears confident that a strong first half profit result is coming.

It commented: “While the short to medium term outlook for the Company is positive, the future economic environment remains very uncertain and no guidance can be given for the remainder of the financial year.”

Should you invest?

I think ARB is a quality company, but at 32x estimated FY 2021, I feel its shares are a little on the expensive side now. Especially given the uncertainty around how sustainable its sales growth is at present.

In light of this, I would suggest investors keep their powder dry and wait for a better entry point.

More reading

• Why Domino’s (ASX:DMP) and this ASX share just surged to record highs
• If you LOVE a Bunnings sanga, you might LOVE the stock…
• ASX 200 down 0.2%: Big four banks drop, CIMIC jumps, CSL slides lower
• Why ARB, CIMIC, Janus Henderson, & Netwealth shares are charging higher
• Why ARB, Accent, Bigtincan, & Transurban shares are dropping lower today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended ARB 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 The ARB (ASX:ARB) share price is up 70% in 2020: Is it too late to invest? appeared first on Motley Fool Australia.

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ASX shares involved with online shopping and delivery have seen a brutal sell down in their share prices recently. This has been, in part, due to a rash of negative commentary from fund managers in relation to valuations. In particular, concern has mounted as to whether companies like this will be able to sustain their current levels of sales performance once the economy has normalised again.

Since March, we have seen a boom in the share prices of many pure-play online companies, as well as traditional bricks and mortar businesses operating a successful online presence. For example, Catch.com.au, a subsidiary of Wesfarmers Ltd (ASX: WES), has reported gross transaction value increasing almost 50% since acquisition. Nonetheless, it is undeniable that consumers have been somewhat forced into online shopping by the pandemic.

Fund managers concerned for share prices

Last week, Chris Tynan of DNR Capital commented on the valuation of e-commerce companies. This was at the end of the week when MyDeal.com.au Ltd (ASX: MYD) saw its share price shoot up by more than 80% on its ASX initial public offering (IPO). Mr Tynan said:

You’ve got some of the strongest retail investor interest I’ve ever seen and tangible FOMO [fear of missing out] in the market, so IPOs are getting away today that wouldn’t be touched with a 10-foot pole a year ago.

At the same time, Kogan.com Ltd (ASX: KGN) had seen its share price fall by 15.5% in the previous four days trading. Similarly, Redbubble Ltd (ASX: RBL) had witnessed its share price crash by 22% over the same time, while the Marley Spoon AG (ASX: MMM) share price collapsed by 26%.

There has also been a strong indication of profit taking amongst fund managers in particular. Ben Clark, portfolio manager at TMS Capital said:

What we’re seeing is the fundies and maybe the long-short funds starting to look at getting out of the ‘COVID winners’ and pick up stocks that’ve been hammered by COVID…So I think there’s more of a rotation going on. We’re getting close to vaccine announcements, and that’s probably going to be the catalyst for that trade to keep going.

The return to favour

Nevertheless, all of these companies, as well as fellow e-commerce growth engine Temple & Webster Group Ltd (ASX: TPW) appear to have regained the favour of investors as all have seen positive movements in their share prices today. 

Temple & Webster has seen the most explosive growth of all of them during today’s trade so far. At the time of writing, the Temple & Webster share price has risen by nearly 11% to $10.90 . This is largely due to a continuing high level of sales growth, even though most of the country is now out of lockdown. 

The Redbubble share price is second with an impressive 10.61% increase at the time of writing. The company recently reported outstanding year-on-year growth for Q1FY21. This included a 114% increase in total revenue, as well as a 1550% increase in earnings before interest and taxes (EBIT).

Marley Spoon is coming in third place today with a very respectable 5.2% increase in its share price. Marley Spoon, the meals home delivery company, has recently completed a $56 million placement to fund global growth. In addition, the company reported a 163% increase in sales revenue versus the previous corresponding period, with growth in the United States being a major contributor.

The Kogan share price is currently fourth in the group, with a rise of 3.5% at the time of writing. Kogan appears to be a favourite of investors with the company’s share price rocketing upwards by 185% in year-to-date trading. While there has been no recent news from Kogan, it did report very strong results in FY20.

Foolish takeaway

After taking flight for a short time, investors are piling back into profitable and growing e-commerce companies. Many of these companies have still reported strong growth and sales, even though many markets are commencing the return to normalisation. Added to this is the international growth of some, such as Marley Spoon. Nonetheless, there is still a lot of uncertainty in this space which should become clearer over the next few months.

More reading

• Temple & Webster (ASX:TPW) share price barnstorms back with 11% rise
• 3 explosive ASX growth shares to buy with $3,000
• Is it bad news that the Temple & Webster (ASX:TPW) share price lost 26% over a week?
• How did ASX retail shares perform in the latest quarter?
• Why Adore Beauty, Adairs, Marley Spoon, & Resolute shares are dropping lower

Daryl Mather has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Temple & Webster Group Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of Wesfarmers Limited. The Motley Fool Australia has recommended Temple & Webster Group 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.

The post Why Redbubble, Kogan, Marley Spoon and 1 other ASX share are surging appeared first on Motley Fool Australia.

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Many of Australia’s top brokers have been busy adjusting their financial models again, leading to the release of a large number of broker notes this week.

Three broker buy ratings that have caught my eye are summarised below. Here’s why brokers think these ASX shares are in the buy zone:

Australia and New Zealand Banking GrpLtd (ASX: ANZ)

According to a note out of Credit Suisse, its analysts have retained their outperform rating and $26.20 price target on this banking giant’s shares after it announced a $528 million hit to earnings from large notable items. The broker was surprised by the additional remediation, as it thought ANZ was further along with the process. In light of these notable items, the broker has cut its final dividend forecast down to 33 cents per share. Nevertheless, it still appears to see a lot of value in its shares at the current level and retains its outperform rating. I agree that ANZ is a buy. Though, with its results being released tomorrow, it might be best to keep your powder dry until after their release.

Bravura Solutions Ltd (ASX: BVS)

Analysts at Goldman Sachs have retained their buy rating but trimmed the price target on this fintech company’s shares to $4.50 following the announcement of a long term contract win and the release of an updated FY 2021 outlook. Goldman believes that Bravura’s deal pipeline is strong, but fears timing delays could weigh on its earnings in the short term. In light of this, it has trimmed its earnings forecasts slightly. Nevertheless, it remains positive on the future and expects its shift to relatively more SaaS income to result in a re-rating of the stock eventually. I agree with Goldman Sachs and would be a buyer of its shares.

Cochlear Limited (ASX: COH)

A note out of the Macquarie equities desk reveals that its analysts have retained their outperform rating and $241.00 price target on this hearing solutions company’s shares. The broker has undertaken industry research and surveyed audiologists with a speciality in cochlear implants. It found that demand levels have been improving and Cochlear is gaining market share. This appears to position the company to rebound strongly from the pandemic. I think Macquarie is spot on and Cochlear is a great option.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• ANZ (ASX:ANZ) share price on watch after revealing $528 million earnings hit
• Why is the Bravura (ASX:BVS) share price dropping today?
• Is the ANZ (ASX:ANZ) share price a buy today?
• ASX 200 Weekly Wrap: ASX snaps winning streak… just

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 Bravura Solutions Ltd and Cochlear Ltd. The Motley Fool Australia has recommended Bravura Solutions Ltd and Cochlear 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.

The post Top brokers name 3 ASX shares to buy today appeared first on Motley Fool Australia.

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Why do I think you should focus on Macquarie Group Ltd (ASX: MQG) shares in the next market crash? Let me explain.

Macquarie Group is an ASX banking share, often described as the ‘fifth ASX bank’ behind the big four like Commonwealth Bank of Australia (ASX: CBA) and Westpac Banking Corp (ASX: WBC). Yes, Macquarie does offer many of the banking services that the big four do, like savings accounts, term deposits, mortgages and personal and business loans. However, these activities make up a relatively small portion of Macquarie’s total earnings (around 14% in FY2020).

Macquarie is more of an ‘investment bank’ than a retail bank like CBA or Westpac. Most of its earnings these days come from ‘annuity-style’ businesses like funds management, and institutional investing services like access to financial hedging and commodity trading. It also has a ‘Macquarie Capital’ division, which assists companies with processes like listing on share markets and with mergers and acquisitions.

Also unlike the other ASX banks, Macquarie benefits from massive geographic diversification of its earnings base. In FY2020, only 33% of its earnings came from the Australian market, with 25% coming from the Americas and 29% from Europe, the Middle East and Africa.

Why buy Macquarie shares in a crash?

So, considering all of these factors, why am I keen on buying Macquarie shares in a market crash or a bear market?

Macquarie (like most banks and financial institutions) is a very cyclical business. It tends to make money hand over fist during good economic times, but struggles in the not-so-good times.

This means that its share price tends to reflect this reality. As an example, the broader S&P/ASX 200 Index (ASX: XJO) fell 36.5% between 20 February and 23 March this year. It also rose 35% between 23 March and 9 June.

In comparison, the Macquarie share price fell 52.5% between 20 February and 23 March, and rose 72.73% between 23 March and 9 June. That’s what you can expect from growth-orientated shares in a bear market and subsequent bull market – underperformance followed by overperformance compared with the broader market.

Now Macquarie is a high-quality business that has been around for decades. It survived the 2008-09 global financial crisis intact and has even taken steps to fire-harden its earnings base against future financial shocks by focusing more on its annuity-style businesses in recent years. As such, I think this is a great company to focus on in any future downturns.

Foolish takeaway

If Macquarie can survive the GFC, I think it can survive anything. As such, I can’t envisage a scenario where Macquarie is in real trouble, or at risk of bankruptcy, in a downturn.

Therefore, I think this is a stock you should seriously put on your watchlist in time for the next crash. At $131.39 a share (at the time of writing), the shares don’t look too cheap today in my view. However, picking them up in March for around $70 would have been a great buy. Keep that in mind next time investors sell off this top-notch bank.

More reading

• How annuity style businesses will drive Macquarie (ASX:MQG)’s future in a post COVID-19 economy
• The Magellan (ASX:MFG) share price fell 4% last week. Here’s why.
• ASX 200 Weekly Wrap: ASX snaps winning streak… just
• Coca-Cola Amatil (ASX:CCL) share price jumps on M&A speculation
• CSL (ASX:CSL) share price and 2 other ASX stocks among latest broker “buy” ideas

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Macquarie Group 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 Why I think Macquarie (ASX:MQG) shares are a buy in the next ASX market crash appeared first on Motley Fool Australia.

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In afternoon trade on Wednesday the S&P/ASX 200 Index (ASX: XJO) has bounced back from a morning decline and is edging ever so slightly higher. At the time of writing, the benchmark index is up a few points to 6,054.1 points.

Four shares that are climbing more than most today are listed below. Here’s why they are charging higher:

Afterpay Ltd (ASX: APT)

The Afterpay share price has jumped 6% higher to $101.93 following the release of its first quarter update. For the three months ended 30 September, Afterpay delivered a 115% increase in underlying sales to a record of $4.1 billion. A key driver of this growth was another sizeable increase in active customers across all its markets. Afterpay ended the period with 11.2 million active customers, up 98% on the prior corresponding period.

Blackmores Limited (ASX: BKL)

The Blackmores share price has surged 12% higher to $71.40. Investors have been buying the health supplements company’s shares since the release of its annual general meeting update this week. One broker that liked what it saw was Credit Suisse. This morning its analysts upgraded Blackmores’ shares to a neutral rating from underperform.

Coles Group Ltd (ASX: COL)

The Coles share price has risen 2.5% to $17.65. The catalyst for this was the release of a stronger than expected first quarter update. During the quarter, Coles achieved a 10.5% increase in total sales to $9.6 billion. This was higher than even the bullish analysts at Goldman Sachs were expecting. They had forecast total first quarter sales of $9,365 million, up 7.7% on the prior corresponding period. Pleasingly, all three of the company’s segments performed positively and delivered strong comparable store sales growth.

Super Retail Group Ltd (ASX: SUL)

The Super Retail share price has stormed 5% higher to $11.73. This follows the release of a trading update this morning. That update reveals that Super Retail has had a sensational start to the new financial year. According to the release, during the first 17 weeks of FY 2021, it delivered 25% growth in both total and like-for-like sales. This was despite the impact of COVID-19 restrictions, including lockdowns in Melbourne and Auckland.

More reading

• ASX 200 flat: Afterpay impresses, Coles beats expectations, & HUB24 in a trading halt
• Why Resmed, Coles, Afterpay and one other have made early share price gains
• Coles (ASX:COL) share price on watch after beating Q1 expectations
• How ASX shares like Afterpay (ASX:APT) push for explosive growth
• Afterpay (ASX:APT) share price on watch after stellar Q1 growth

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Blackmores Limited and Super Retail Group Limited. The Motley Fool Australia owns shares of AFTERPAY T FPO and 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 Why Afterpay, Blackmores, Coles, & Super Retail shares are charging higher appeared first on Motley Fool Australia.

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