The S&P/ASX 200 Index (Index:^AXJO) is set to tumble this morning but there’s a group of ASX stocks that could buck the downtrend.

The Brent crude oil price staged a late turnaround last night after Libya’s ceased production from its top oil field, according to Bloomberg.

The Brent price jumped 1% to US$41.18 a barrel after falling below US$40 a barrel earlier in the trading session.

Why ASX energy stocks can outperform

This could set the Santos Ltd (ASX: STO) share price, Woodside Petroleum Limited (ASX: WPL) share price and Oil Search Limited (ASX: OSH) share price on a positive footing.

If so, the sector will stand in contrast to the expected broad-based weakness on the ASX as US and European share markets fell overnight.

The weakness stems from concerns that risk assets are overbought with investor optimism running ahead of the COVID-19 reality.

What’s supporting the oil price

But it isn’t only the shutdown of Libya’s main oil field that’s supporting crude. Demand for gasoline is also rising as some major US cities, such as New Jersey end their lockdowns.

The latest data from the Energy Information Administration showed gasoline consumption increased for a second week, reported Bloomberg.

However, other crude products such as diesel and jet fuel declined with the former down 20% and the latter crashing 80% from this time last year.

Diesel rains on gasoline’s parade

No surprises as diesel is tied to industrial production, which is still scraping the floor due to the coronavirus shutdown.

Meanwhile, airlines are still largely grounded and are likely to stay that way for a long while. This is why refineries are switching to producing more diesel.

But some experts believe that low diesel prices will cap any rally in gasoline because refineries cannot limit the production of diesel without negatively impacting on gasoline output.

Oil headwinds aren’t abating

Further, the expended supply curbs by Saudi Arabia is expected to end this month, and that means rising inventories of crude is likely to overwhelm any increase in demand from consumers.

The price of crude is also at a level where US shale oil producers can profitably restart pumping again, assuming that oil stabilises around current levels.  

The oil market is walking a tightrope and its easy to see how the unstable Libyan regime can send prices swinging wildly.

If ASX energy stocks don’t find support when the market opens, it will probably be because the outlook for the market remains too difficult to predict.

More reading

• Why you can’t afford not to invest in ASX 200 shares in 2020
• Is the Woodside Petroleum share price cheap today?
• 5 things to watch on the ASX 200 on Wednesday
• Why you should be buying the dip in ASX gold stocks
• Why the CSL share price continues to trail the ASX 200

Motley Fool contributor Brendon Lau 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 company that looks likely to profit from the current high gold price is ASX gold miner Silver Lake Resources Limited. (ASX: SLR). On Friday last week, Silver Lake announced an astounding assay result from its recent exploration drive.

Taken from its Deflector Operation in Western Australia, the significant results included an amazing 7 metres at 98.7 grams per tonne. Silver Lake also disclosed an additional 2.6 metres at over 100 g/t. The company’s high grade assays combined with the high gold price make Silver Lake shares a “buy” in my estimation.

For contrast, exploration company Bellevue Gold Ltd (ASX: BGL) is currently a market darling, in part due to its high grade ore bodies. This includes tonnages at 11.8 g/t and 22.0 g/t, albeit for a higher number of gold ounces.

Economics of gold mining

It is often the case that the gold price falls as equities rise, as investors try to reduce the losses across a portfolio. Most gold large caps fell in share price as the stock market rose last week, despite months of good news.  

The ability of a gold mining company to generate good profits on a regular basis reflects two things. Their all in sustaining costs (AISC) and their ability to hedge the market. For example, for the quarter ended 31 March 2020, Newcrest Mining Limited (ASX: NCM) had an ASIC of $827 and a margin of $742. This implies a gold sales price of $1,569 when the spot price was near $2,500. 

With a high grade deposit, Silver Lake is likely to have a very low AISC value. This means it can withstand a large drop in the gold price and still remain very profitable. 

Will the gold price stay high?

The gold price remains at all time highs in US dollars, although it has fallen in recent weeks in Australian dollars. This is because of the high exchange rate. Our successful management of the COVID-19 pandemic, coupled with surging demand for iron ore from our suppliers, has rekindled investor faith in the Aussie dollar.

I think the gold price will remain at high levels. Unlimited quantitative easing, low interest rates and the increasing tensions internationally and domestically for the US will likely see more new money flowing into gold across ETFs and mining shares.

Regardless of the gold price, the point remains. Silver Lake is likely to have a very profitable mining operation due to the high grades of gold, balanced with high grades of copper. 

Foolish takeaway

Australian gold miners are a high productivity sector with very sophisticated sales and hedging practices. The drilling results at Silver Lake are very positive and in my opinion we will see the Silver Lake share price escalate as it edges closer to production. I believe now is a good time to buy into this company for a good medium-term gain. 

More reading

• ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points
• 5 things to watch on the ASX 200 on Tuesday
• These were the worst performers on the ASX 200 last week
• 5 things to watch on the ASX 200 on Friday
• Why the Nufarm share price is crashing lower today

Motley Fool contributor Daryl Mather owns shares of Bellevue Gold Ltd. 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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The Woodside Petroleum Limited (ASX: WPL) share price rocketed 5.52% higher yesterday, but is the Aussie oil and gas giant in the buy zone?

Why is the Woodside Petroleum share price climbing?

Woodside is Australia’s largest operator of oil and gas production. This means when oil prices move, the Woodside share price usually isn’t far behind.

The prospect of easing lockdowns around the world boosted oil prices higher on Tuesday. US West Texas Intermediate (WTI) crude futures climbed 1.3% to US$38.69 per barrel while Brent crude futures climbed 1.4% to $41.36 per barrel.

This is largely due to an anticipated increase in demand. When the coronavirus lockdowns kicked off, oil prices plummeted lower. With air travel slowing to a trickle and many businesses shutting their doors, there was limited demand for oil.

That supply-shock was coupled with an oil price war between Saudi Arabia and Russia which led to a glut of production. 

However, the Woodside share price rocketed higher yesterday as the tides begin to turn in global markets.

Is Woodside a cheap buy today?

Shares in the Aussie oil and gas producer closed up 5.52% at $24.65 on Tuesday.

However, the Woodside share price is still down steeply from the start of the year.

I think we will see more volatility in ASX energy shares over the coming months. Woodside is trading at a price to earnings (P/E) ratio of 46.7 right now, but what about its relative value?

Santos Ltd (ASX: STO) is probably the closest listed competitor to Woodside.

The Santos share price rocketed 7.30% yesterday and is trading at a P/E ratio of just 13.3 times.

That could mean that Woodside is massively overvalued right now.

Foolish takeaway

I’m not much of an oil and gas investor myself. At a surface level, the Santos share price does look cheaper than the Woodside share price.

However, there are subtle differences that can cause huge valuation changes so it may not be as clear cut as it seems.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• Why you should be buying the dip in ASX gold stocks
• Why the CSL share price continues to trail the ASX 200
• The ASX bank dividend recovery may be better than what the market thinks
• ASX 200 jumps 2.4%, unloved shares keep rising

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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The Kogan.com Ltd (ASX:KGN) share price had a good week last week. It leapt 12% on Thursday after the company released a June trading update. By the end of the week, it had settled lower to remain 10% up for the week. This company is squarely in the line-of-sight of Amazon.com, Inc. (NASDAQ: AMZN) as it continues its growth in the Australian market.

The question every investor should be asking is: can they survive it?

Current performance

The June release painted a picture of a company doing well and growing rapidly. Comparing the fourth quarter to date against the same period last year, the company announced significant improvements in performance. 

The company now boasts over 2 million active customers. It grew gross sales by 100% and, at the same time, grew gross profit by more than 130%. This supports recent reports across buy now, pay later companies showing increases in transactions and users while in lockdown. This is despite Amazon.com already existing in the marketplace. 

Kogan.com also recently announced the purchase of furniture retailer Matt Blatt. The company is planning to relaunch it purely online. Throughout the short history of Kogan.com, it has shown a great understanding of online retail. In 2016 the company purchased electronics retailer Dick Smith, successfully relaunching it as an online retailer.

On my figures, Kogan.com has increased its sales revenues by, on average, around 14% every year during the past three years. This has enabled the company to grow its earnings-per-share by around 65% a year. 

Can Kogan.com compete with Amazon?

Kogan.com has a few competitive advantages. First and foremost, as a company with own-brand products, Kogan.com sells products on Amazon. Second, the company has always had a ‘best price’ guarantee. While Amazon is known for efficient and, often criticised, work practices, Kogan is proudly miserly. Even to the point of running a paperless office. 

Moreover, just as Amazon built the high margin Amazon Web Services to subsidise the entire business. Kogan.com has also grown additional verticals in the financial and telecommunications sectors. The company has services in mobile telephone coverage, nbn services, insurance, home loans and even cars. The company is adept at partnering with industry leaders. 

Foolish takeaway

At least within Australia, I can see Kogan.com holding their own against Amazon or whoever the next challenger is going to be. The company deserves a place on your watchlist at the very least. Given the rate the company is growing its sales and earnings per share, I believe this is a share price with a lot of growth ahead of it.

More reading

• The Kogan share price makes it 5 times bigger than Myer
• Why I’d buy Appen and these ASX growth shares for the 2020s
• How I would invest $50,000 into ASX shares right now
• Could these ASX shares be the future dividend stars that make you rich?
• What ASX shares should you invest in during a bull market?

John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. 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 and recommends Amazon and recommends the following options: short January 2022 $1940 calls on Amazon and long January 2022 $1920 calls on Amazon. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia has recommended Amazon. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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There are a lot of different types of investors out there.

There are investors that have a focus on dividends, others that are looking for growth, and some investors are searching for shares which they feel are undervalued.

Whichever type of investor you are, I feel one of the shares listed below will appeal to you. Here’s why I think they are in the buy zone:

Commonwealth Bank of Australia (ASX: CBA)

Investors in search of income might want to take a look at Commonwealth Bank. Although its shares have been on fire in recent weeks, they are still down 21% from their high. I think this leaves them trading at a very attractive level for a long term and patient investment. Times may be hard for the banks right now, but I’m optimistic the worst is behind them. And although I expect another dividend cut in FY 2021, I’m confident this is the bottom of the cycle. Furthermore, even if the bank were to cut its dividend to ~$3.70 per share next year (which I expect), it would still be a generous fully franked 5.1% dividend yield.

ResMed Inc. (ASX: RMD)

If you’re looking for growth shares then I think ResMed is worth considering. It is a medical device company which is exposed to the proliferation of sleep apnoea. I believe ResMed is perfectly positioned to capture the rising demand for sleep treatment products this is causing. This is thanks to its leading CPAP masks and machines and its growing software businesses – Brightree and MatrixCare. All in all, I believe ResMed can grow its earnings and a strong rate over the next decade and beyond.

Freedom Foods Group Ltd (ASX: FNP)

I think Freedom Foods could be a good option for value investors. Its shares have fallen heavily over the last couple of weeks after a surprisingly disappointing trading update. That update revealed that a number of sales channels had been impacted greatly by the pandemic. However, I believe this weakness will be short-lived and expect its sales to rebound quickly. This view is shared by analysts at Goldman Sachs who are forecasting earnings per share of 20 cents in FY 2021 and then 30 cents in FY 2022. This means Freedom Foods’ shares are changing hands at under 20x FY 2021 earnings and approximately 13x FY 2022 earnings.  

More reading

• Is the CBA share price a buy right now?
• The ASX bank dividend recovery may be better than what the market thinks
• Will ASX 200 shares hit a record high in June?
• ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points
• Could these sensational ASX shares help you beat the market?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Freedom Foods Group Limited and ResMed Inc. 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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Pointsbet Holdings Ltd (ASX: PBH) share price

Pointsbet is an online bookmaker with operations in Australia and the United States. The company offers innovative products that facilitate betting on horse racing and other sports. 

The Pointsbet share price has risen significantly from the lows we saw in March. Contributing to this rise was a trading update released by the company on 27 May. The announcement reminded investors that both AFL and Rugby League would soon be recommencing. Also included was advice that Pointsbet had entered into an agreement with Fox Sports to become the media provider’s AFL betting partner. According to Pointsbet, this was part of ‘an opportunistic approach to targeting media assets to deliver efficient client acquisition and increased betting volumes’. Pointsbet also has an existing deal covering Tier 1 horse racing with Channel Seven. 

What’s next for Pointsbet?

Pointsbet is not short on ambition. Also included in the May update was the company’s assertion that it ‘aims to provide more markets on the major Australian and US sports than any other bookmaker’. Given the company’s recent success, it is easy to believe that Pointsbet will deliver on its aspirations.

Another feather in the company’s cap is that it is operating in the lucrative US market and already seeing considerable success. Over 30% of the US population now has access to legal sports betting. Despite the fact that sports were recently suspended due to COVID-19 restrictions, Pointsbet reached 22,716 US clients in Q3 of the 2020 financial year. It’s total active clients across Australia and the US now totals 106,046. This represents a growth of 64% on the prior corresponding period. 

While Pointsbet is a relative newcomer to the betting industry, I believe it shows significant growth potential due to its position in the US and its unique betting markets. This potential is highlighted by the fact that the company’s market cap currently sits at $906 million. Compare this to the market cap of fellow gambling provider Tabcorp Holdings Limited (ASX: TAH) which sits at $7.36 billion. Pointsbet shows room for enormous growth as it increases its market share.

The Pointsbet share price is up 221% since this time last year, hitting a record high of $7.17 yesterday.

Sezzle Inc (ASX: SZL) share price

Sezzle is a financial technology company based in the US. This company works with a platform similar to ASX market darling Afterpay Ltd (ASX: APT). That is, it offers buy now, pay later (BNPL) solutions to consumers. 

Like other companies in the BNPL sector, the Sezzle share price has been performing well. This can be partially attributed to the fact that more consumers have moved to online shopping during lockdown restrictions. Sezzle is a significant player in the industry with 1.3 million active customers. Its platform is available through 14,900 merchants and its app has been downloaded around 600,000 times.

While Sezzle’s popularity does not presently match that of Afterpay’s, I believe it shows great potential, especially as a possible takeover target. If the BNPL industry consolidates, it’s very possible that Sezzle will get bought up by one of the major players. Alternatively, the company may continue to grow independently with the aim of rivaling Afterpay. Given the fact Sezzle is headquartered in the US and already actively targeting the US$460 billion Canadian retail market, I feel this is definitely possible. 

The Sezzle share price is up over 770% from its 52-week low of $0.35 and is currently sitting at $3.05 per share. The company also reached a new, all time high of $3.25 in yesterday’s trade. 

Foolish takeaway

Despite their recent gains, I still feel that both both the Sezzle and Pointsbet share prices offer considerable upside potential. Pointsbet is looking to leverage its huge growth potential in the lucrative US sports betting market while it expands its market share in Australia. Sezzle looks set to continue growing as it increases the number of merchants offering its platform along with its number of users. Is it time to invest? This writer believes yes.

More reading

• Why I would buy Afterpay and these exciting ASX tech shares
• Will ASX 200 shares hit a record high in June?
• ASX shares could be the best way to grow your wealth in 2020
• 10 ASX 200 shares that are fit for the Queen
• 3 ASX shares for a stress-free life

Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of AFTERPAY T FPO and Pointsbet Holdings Ltd. The Motley Fool Australia has recommended Pointsbet Holdings Ltd and Sezzle Inc. 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 to add a few dividend shares to your portfolio this week, then I think the ones listed below are worth considering.

Here’s why I think these dividend shares are in the buy zone:

Dicker Data Ltd (ASX: DDR)

The first ASX dividend share to consider investing in is Dicker Data. It is an Australia owned and operated distributor of IT hardware, software, cloud, and Internet of Things solutions. Thanks to a growing number of vendor agreements and strong demand for IT products, Dicker Data has delivered robust earnings and dividend growth over the last few years.

Pleasingly, this trend looks likely to continue in FY 2020. So much so, the company is confident enough to provide dividend guidance of 35.5 cents per share this year. This equates to a 31% increase year on year and represents a fully franked forward 4.6% dividend yield.

Sydney Airport Holdings Pty Ltd (ASX: SYD)

While I wouldn’t be buying Sydney Airport’s shares if you want dividends in 2020, if you can afford to be patient it could be a great option. Australia’s busiest airport isn’t very busy at all right now. The pandemic has led to severe travel restrictions both domestically and internationally. However, the good news is that the domestic market is on the verge of starting its recovery.

Last week Qantas Airways Limited (ASX: QAN) revealed that it is preparing to increase its capacity to upwards of 40% of pre-pandemic levels by the end of July. I expect this to be a big boost to Sydney Airport and could put it in a position to pay a decent dividend in FY 2021. I estimate that it could pay as much as 27 cents per share to shareholders next year, before increasing it to 37 cents per share in FY 2022. This represents a 3.8% yield and a 5.25% yield, respectively.

More reading

• ASX 200 Weekly Wrap: ASX bulls crash through 6,000 points
• Forget term deposits and buy these high yield ASX dividend shares
• How to turn $20,000 into $275,000 in 10 years with ASX 200 shares
• ASX 200 down 0.35%: UBS upgrades NAB and Westpac, Qantas soars again
• Why Kogan, NAB, Qantas, & Sydney Airport shares are racing higher

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. 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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