If you are fortunate enough to have $4,000 to invest in the share market, then I would consider investing it across the four top ASX shares listed below.

I believe each of them has the potential to generate market beating returns over the next few years due to their solid business models and positive outlooks.

Here’s why I would invest $1,000 into all four of them:

Appen Ltd (ASX: APX)

Appen is a provider of human annotated dataset development services to some of the world’s biggest tech companies such as Facebook and Microsoft. As the company services machine learning and artificial intelligence markets (which are expected to grow rapidly over the next decade), I believe it is well placed to continue growing its earnings at strong rate for the many years to come.

Commonwealth Bank of Australia (ASX: CBA)

The shares of Australia’s largest bank have fallen very heavily over the last three months. While this decline is not completely unwarranted, I think the selling has been overdone and has left its shares trading at a very attractive price. Times may be hard for the bank right now, but the headwinds it is facing will ease eventually and its outlook will improve. In light of this, I think it is worth being patient and buying its shares with a long term view.

CSL Limited (ASX: CSL)

This global biotherapeutics company could be a great place to invest. I believe it is well-positioned to continue its positive form over the next decade due to its leading therapies, growing plasma collection network, and lucrative research and development (R&D) pipeline. CSL currently has a wide range of therapies under development which have the potential to generate significant revenues in the coming years.

Kogan.com Ltd (ASX: KGN)

A final option to consider is Kogan. I think the ecommerce company could be a market beater over the next 10 years. This is thanks to the continued shift to online shopping by consumers and the growing popularity of its offering. This has been evident during the pandemic, with Kogan reported explosive sales and earnings growth in March and April.

More reading

• The smartest ASX shares to buy if you have $2,000
• How can the ASX 200 soar with rising unemployment?
• ASX 200 down 0.9%: CBA reveals $1.5bn COVID19 provision & gold miners charge higher
• Why CBA, CSR, Fortescue, & Northern Star shares are pushing higher
• Commonwealth Bank reveals $1.5 billion COVID-19 provision with Q3 result

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 CSL Ltd. The Motley Fool Australia owns shares of and has recommended Kogan.com ltd. The Motley Fool Australia owns shares of Appen 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 4 top ASX shares to invest $4,000 into immediately 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 shares are in the buy zone:

Altium Limited (ASX: ALU)

According to a note out of Morgan Stanley, its analysts have retained their overweight rating and $40.00 price target on the electronic design software company’s shares. The broker notes that Altium expects to fall short of its US$200 million revenue target in FY 2020 because of the pandemic’s impact on smaller businesses. Morgan Stanley isn’t concerned by this and suggests investors should focus on the long term. It feels Altium remains well-positioned to deliver on its 100,000 subscriber target by 2025. I agree with Morgan Stanley and would be a buyer of its shares.

Premier Investments Limited (ASX: PMV)

A note out of UBS reveals that its analysts have retained their buy rating but cut the price target on this retail company’s shares to $17.15. The broker made the move after reducing its earnings estimates for FY 2021 due to the current uncertainty in the retail market. However, UBS remains positive on Premier Investments and believes it is likely to come out of the pandemic in a stronger position. I think UBS is spot on and the Smiggle and Peter Alexander owner would be a good option for investors.

Zip Co Ltd (ASX: Z1P)

Another note out of UBS reveals that its analysts have retained their buy rating and lifted the price target on this buy now pay later company’s shares to $3.70. It believes that Zip Co’s recent update shows that the company is able to perform strongly during the current crisis. It notes that it has been able to grow and manage its credit risk effectively during April. It also sees the easing of restrictions as a positive for Zip Co in the coming months. I would have to agree with this view as well and would be a buyer of its shares with a long term focus.

More reading

• LNG spot price surge benefits ASX 200 shares
• The smartest ASX shares to buy if you have $2,000
• ASX gold shares steady: Can gold provide your portfolio with defensive and safe returns?
• Is $1,000 of A2 Milk shares a good investment?
• How can the ASX 200 soar with rising unemployment?

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 ZIPCOLTD FPO. The Motley Fool Australia owns shares of and has recommended Premier Investments Limited. The Motley Fool Australia owns shares of Altium. 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 200 shares to buy right now appeared first on Motley Fool Australia.

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The past month has seen the LNG spot price surge by ~15%. The spot price had fallen by 25% from 2 January until 15 April as demand fell in the wake of the COVID-19 pandemic. The sudden rise is due to lowering global supply for a couple of reasons.

First, producers are showing evidence of curtailing output, which stands to reason. If you have a limited supply to sell over time then you would want to get the best average price possible. Still, others are seeing supply drop as a direct consequence of social distancing protocols in order to keep workers safe. 

Second, an explosion occurred at Enbridge’s Texas Eastern Natural Gas system in Kentucky on 4 May. This is a network of 9,100 miles of piping that stretches from Texas to New York and moves 20% of America’s natural gas. The company temporarily shut down all 3 major pipelines. Within days, most gas flows had been successfully rerouted.  

Impacts to the S&P/ASX 200 Index (ASX: XJO)

In the 24 hour period from 4 May, the date of the incident, the following share prices spiked. Woodside Petroleum Limited (ASX: WPL) rose by 4.4%, Origin Energy Ltd (ASX: ORG) rose by 5.5%, Santos Ltd (ASX: STO) rose by 5% and Oil Search Limited (ASX: OSH) rose by 3.14%.

Woodside is not as exposed to a falling LNG spot price as only 80% of forecast 2020 production is on fixed-price contracts. Santos also has recently announced that 70% of its production is on fixed-price contracts.

However, both Oil Search and Origin Energy have recently reported revenue reductions due to the low regional gas price. Both of these companies stand to gain earnings due to the rising LNG price. Nevertheless, the market treats all oil and gas companies the same. As can be seen above, all saw an immediate uptick in their share prices on news of the Enbridge pipeline explosion. 

Of these 2, I have been very impressed by the strategic vision of Origin Energy. The company has taken a range of far-reaching actions to reduce operational costs, both in the short and medium-term. Origin also has utility revenues as the nation’s number 1 gas retailer. 

For those with a memory of the market in 2008, it is fair to say this time things are different. Unlike in 2008, this is not a liquidity crunch. Central banks the world over have poured money into bonds to keep interest rates down, allowing capital-intensive companies such as these to secure reasonably priced debt. 

Foolish takeaway

All of the oil and gas producers in the ASX energy sector are likely to see share prices rise as the LNG spot price rises. However, I believe Origin is the most likely to turn an LNG spot price surge into greater earnings.

The combination of disciplined cost-cutting, strategic action and defensive revenues mark Origin as a good investment in my view.

More reading

• Top brokers name 3 ASX 200 shares to buy right now
• The smartest ASX shares to buy if you have $2,000
• ASX gold shares steady: Can gold provide your portfolio with defensive and safe returns?
• Is $1,000 of A2 Milk shares a good investment?
• How can the ASX 200 soar with rising unemployment?

Motley Fool contributor Daryl Mather 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 LNG spot price surge benefits ASX 200 shares appeared first on Motley Fool Australia.

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