I think that ASX shares with international exposure could be a good way to produce both growth and income for investors who want to diversify their portfolio.

When you look at the ASX there seems to plenty of shares that fit into one of two categories. They are either domestically-focused businesses with low growth and (usually) a high dividend yield like miners or banks such as Commonwealth Bank of Australia (ASX: CBA). Or there are growth shares that are highly priced with international growth plans such as Afterpay Ltd (ASX: APT).

I believe there are some ASX shares that can give a decent income whilst also giving exposure to great international shares with good growth. Here are three of those ideas:

Share 1: Magellan Global Trust (ASX: MGG)

This is a listed investment trust (LIT) which invests in the best businesses in the world. Magellan Global Trust can turn some of the capital return growth that it makes into distributions to shareholders. The ASX share targets a 4% distribution yield, so that’s the income part covered.

The shares that it’s invested in have strong economic moats. Some of the shares it’s invested in are: Alibaba, Alphabet, Atmos Energy, Facebook, Mastercard, Microsoft, Reckitt Benckiser, Tencent, Visa and Xcel Energy.

Since inception in October 2017, its net portfolio performance (after fees) has been 12.5% per annum, outperforming the MSCI World Net Total Return Index (AUD) by 1.5% per annum. Those numbers are to the end of May 2020, which includes the COVID-19 sell-off.

Over time, the best businesses in the world can act like compound growth machines. A benefit of Magellan Global Trust is that it can invest anywhere in the world, it’s not limited to a particular country or weighting with its share investments.

Share 2: PM Capital Global Opportunities Fund Ltd (ASX: PGF)

This is a listed investment company (LIC) which looks to invest in businesses which are good value.

Some of the shares that it currently owns include European homebuilder Cairn Homes, Bank of America, Visa, MGM China, KKR & Co, Siemens and Freeport-McMoRan Copper.

The ASX share currently has a grossed-up dividend yield of 6.3%. Part of the reason why the yield is quite high is because the current share price of $0.90 is at a 23% discount to the net tangible assets (NTA) at 19 June 2020, which was the latest weekly NTA disclosure. I think that represents great value. PM Capital aims to grow the dividend over time. I believe that’s an attractive feature and will help close the NTA discount.

Some of the shares that the LIC owns has been sold off heavily due to COVID-19. At them moment its net performance is only showing a return of 8.1% per annum since inception. But I believe today’s share price offers very compelling value.

Share 3: WAM Global Limited (ASX: WGB)

WAM Global is the international version of WAM Capital Limited (ASX: WAM). It looks for undervalued growth companies listed overseas which could deliver good returns.

The investment team at Wilson Asset Management are happy to change the portfolio as conditions change. At the moment some of the biggest holdings are: Tencent, Amazon, Activision, Auto Zone, CME Group, Costco, Dollar General, Hasbro, Hello Fresh, Intuit, Logitech and Microsoft.

The ASX share currently has an annualised grossed-up yield of 4.5%. This yield will probably grow in time, just like it has at the other WAM LICs.

One of the things that I like about WAM Global is that it isn’t afraid to go to fairly high levels of cash during volatile periods. Cash is good for protection and opportunities. At the end of May 2020 it had a cash weighting of 14.8%.

It’s currently trading at a 17.3% discount to the 31 May 2020 NTA.

Foolish takeaway

I like each of these shares for what international diversification they offer. I think all of them are trading at good value, particularly PM Capital Global Opportunities Fund which is valued at a large NTA discount. 

More reading

• Ramsay Health Care and 1 other ASX share I would buy for both growth and income
• If I won the lottery I’d buy these 6 ASX shares
• How I would build a balanced portfolio worth $100,000 with 10 ASX shares
• Got $20,000? These are the ASX shares I’d buy during COVID-19
• Have $1,000? You should pick one of these 8 ASX shares

Motley Fool contributor Tristan Harrison owns shares of MAGLOBTRST UNITS and PM Capital Global Opportunities Fund Ltd. 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 wanting to add some dividend shares to your portfolio, then you might want to consider the three listed below.

All three of these dividend shares offer generous yields and trade at attractive levels. Here’s why I like them:

BHP Group Ltd (ASX: BHP)

I think BHP would be a great dividend share to buy if you’re not averse to investing in the resources sector. Thanks to favourable commodity prices, I believe BHP is well-positioned to deliver strong free cash flows over the coming years. And given how robust its balance sheet is at present, I suspect the majority of this free cash flow will be returned to shareholders. I estimate that the mining giant’s shares currently offer investors with a forward fully franked ~5% dividend yield.

Dicker Data Ltd (ASX: DDR)

Another dividend share to consider buying is this wholesale distributor of computer hardware and software. Dicker Data has really caught the eye over the last few years after consistently growing its earnings and dividends at a solid rate. This has been driven by a combination of new vendor agreements, industry tailwinds, and solid demand. Pleasingly, its strong form has continued in FY 2020 and the company is well-placed to deliver a bumper profit result. As a result of this, the company intends to increase its dividend by 31% to 35.5 cents per share. This represents a 5% fully franked dividend yield.

National Australia Bank Ltd (ASX: NAB)

A final option for investors to consider buying is this banking giant. While times are certainly hard for the bank right now and a rise in bad debts seems inevitable, I’m optimistic that this is more than priced into its shares. In light of this, and on the belief that the worst is now behind the bank, I think it could be an opportune time to pick up its shares. Especially if you’re looking for dividend. I estimate that NAB’s shares offer a generous fully franked 5.2% FY 2021 dividend yield at present.

More reading

• Qantas share price on watch as it launches a $2bn cap raise
• You don’t have to time the market to get rich with ASX shares
• Why I would buy these outstanding ASX 50 shares right now
• Australian businesses are running out of cash
• This top fund manager believes dividend yields are going to 0%. Where should you invest?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Scentre Group (ASX: SCG) share price has had a very rough trot in recent months. As 1 of the ASX’s largest owners and operators of shopping centres, Scentre was hit extremely hard by the coronavirus pandemic and associated economic shutdowns.

Scentre shares started 2020 at $3.85 and went all the way up to $4.04 in January. But when the extent of the economic impacts from the coronavirus pandemic became clear in March, Scentre shares dropped like a stone. The company touched a post-demerger low of $1.35 on 24 March. The Scentre share price has recovered somewhat since, but it’s ‘only’ trading for $2.14 today (at the time of writing). That’s a nice 59% bounce off of the March low but still, 88% below it’s 2020 high watermark.

But I think Scentre could potentially return to the levels we were seeing in February. That would deliver a further 88% upside to the current Scentre share price.

A bull case for Scentre shares

Scentre owns the Westfield brand of shopping centres in Australia and New Zealand. It received these centres from the demerger of the old Westfield Group back in 2014. Unibail-Rodamco-Westfield (ASX: URW) took Westfield’s international assets.

As a REIT  (real estate investment trust), Scentre makes its crust from collecting rental income from shops that occupy its shopping centres. This is problematic when shops are forced to close and customers stop visiting them altogether, exactly what happened in March and April.

So there’s no doubt that Scentre is going to have a rough fiscal year in FY2020. But I’m very bullish going forward.

Why? Well, signs are pointing to a remarkable resurgence in ASX retailing fortunes. As my fellow Fool contributor, Matthew Donald reported last week, Australian retail sales were up 16.3% in May to $4.03 billion, the largest month-on-month rise in 38 years according to the Australian Bureau of Statistics. If these trends continue, I think it points to a bright future for Scentre and the resumption of healthy dividend distributions.

I think the government assistance (like jobKeeper and JobSeeker payments) for Australians during the crisis is helping to boost retail sales.

We should (in my opinion) see this effect continue until the government starts winding down assistance. And hopefully, at this point the economy be in a recovery mode. Once we see Scentre’s numbers for the quarter ending 30 June 2020 and beyond, I think there is a strong chance that Scentre shares will be re-rated by the market, perhaps even back up to the $4 mark.

More reading

• Here are 3 ASX 200 shares with dividend yields over 8%
• Here are 3 Australian share market trends to watch this week
• ASX share price winners and losers of last week
• 3 ASX shares I think are super cheap right now
• The next ASX sector at risk of cutting dividends

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Scentre Group. 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 Woolworths Group Ltd (ASX: WOW) share price is trading flat for 2020 and could be a potential bargain for long-term investors, in my view.

Despite experiencing unprecedented demand during the coronavirus pandemic, the supermarket giant’s share price has struggled to gain traction as costs mount.

Rising costs blocking surging sales

Earlier this week, Woolworths released a trading update that detailed the company’s 4th quarter performance to date. Woolworths reported food sales in Australia were up 8.6% for the quarter, while sales in New Zealand jumped more than 15%. Sales at Big W also surged 27.8% in the 10 weeks to 14 June as shoppers returned, while the company’s Endeavour drinks business saw sales grow another 21% for the same period.

However, despite continued record growth in sales during the pandemic, Woolworths has also seen a jump in costs. As a result, the company revised its earnings before interest and tax to a range between $3.2 billion and $3.25 billion, below analyst estimates of $3.32 billion.

Woolworths cited $275 million in extra costs due to precautionary procedures imposed by the pandemic such as more cleaning, labour and extra warehouse space. In addition, the company plans to spend approximately $780 million on 2 automated distribution centres in Sydney and also revealed $500 million in underpaid wages that have added to costs.

Analysts mixed on outlook

A recent article in the Australian Financial Review highlighted the mixed consensus among equity analysts on the future of the Woolworths share price. According to the article, analysts from Goldman Sachs revised their net profit target for 2020 down by 6.4%, while also lowering their share price target for Woolworths to $35.90.

Analysts from broker UBS also estimated that Woolworths will see a 5% to 6% fall in earnings between 2020 and 2022. However, despite the forecasted fall in earnings, analysts believe that the supermarket giant will emerge from the pandemic stronger and retained a ‘buy’ recommendation on the company.

Should you buy?

The Woolworths share price opened the year at around $36 dollars and despite volatility finds itself trading around the same price in late June. The coronavirus pandemic saw unprecedented demand and also changed the shopping behaviour of many consumers. As a result, despite the potential windfall, Woolworths has had to invest heavily in adapting to this new consumer behaviour.

Recently, renewed predictions of a ‘second wave’ of coronavirus infections have reignited fears amongst consumers. This has resulted in some of the panic buying that was documented earlier this year, forcing Woolworths and other supermarkets to impose buying limits on certain items. In the short-term, panic buying could continue to fuel growth in sales.

In my opinion, Woolworths could be a bargain buy for the long-term is the company’s investment in streamlined supply-chains and better online services, both of which could see the supermarket giant adapt faster to changing consumer behaviours.  

More reading

• You don’t have to time the market to get rich with ASX shares
• ASX 200 finishes higher, Afterpay hits new record
• The latest ASX 200 stocks to be slapped with a broker downgrade
• This top fund manager believes dividend yields are going to 0%. Where should you invest?
• Top brokers name 3 ASX 200 shares to buy today

Motley Fool contributor Nikhil Gangaram has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Woolworths 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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The Accent Group Ltd (ASX: AX1) share price is surging today, up 10.29% at the time of writing. Accent shares opened at $1.41 this morning after closing at $1.36 yesterday, but have surged to $1.50 a share in afternoon trading. The shares are now up more than 170% since the lows of 56 cents we saw in March.

Why the Accent share price is galloping higher

The catalyst for today’s move appears to be an ASX release from the company this morning before the market opened. In this release, Accent gave notice that it is expecting FY20 earnings before interest, tax, depreciation and amortisation (EBITDA) to be “around 10% above” the $108.9 million that was seen in FY19.

The company also reported that as of the week ending 21 June, total FY20 sales are sitting at $923 million.

Pleasingly for Accent, digital sales for the company between April and June 2020 were up 150%. As Accent closed all of their physical stores on 27 March, reopening on 11 May in Australia and 22 May in New Zealand, these numbers are very encouraging for shareholders. The company also reported digital sales made up 23% of total sales in the month of June so far (up to 21 June).

Also noted were strong sales in New Zealand, Western Australia, South Australia, Queensland and regional areas. These areas have apparently rebounded much stronger than Sydney and Melbourne metropolitan sales.

Accent Group CEO, Daniel Agostinelli had this to say on the numbers:

“The strong trading performance over the last 2 months driven by digital has been well ahead of expectations. It is clear that there has been a seismic and most likely enduring shift in consumer behaviour. With 18 websites and our leading digital capability, Accent Group is capitalising on this trend. Through this period Accent has attracted many new customers online who have never shopped with us before. We will continue to drive digital growth as the number one priority in our company.”

Accent also praised the positive impact of the government’s JobKeeper program throughout the coronavirus situation. The program enabled Accent to scale its staff down and back up efficiently during the lockdown period.

Despite today’s positive share price movements, Accent shares are still 18% below the levels they started 2020 at and around 30% its February highs.

More reading

• ASX retailers beware! Amazon.com is gearing up for its next major attack
• Why Accent, CSL, Kogan, & Redbubble shares are pushing higher
• Here are 3 Australian share market trends to watch this week
• Why these ASX retail shares surged over 25% in the past 2 weeks

Motley Fool contributor Sebastian Bowen has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. 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 been a bad morning for ASX shares today as the S&P/ASX 200 Index (INDEXASX: XJO) has fallen 1.9% lower to 5,851.4 points.

It can be hard to keep a cool head while both domestic and international share markets are crashing lower. However, I like to think of today’s drop as a discount sale on some of my favourite companies.

Here are a few ASX companies that I’ve got my eye on if we see another share market crash in 2020.

ASX shares I’d like to buy in the next market crash

Transurban Group (ASX: TCL) is one blue-chip share at the top of my list.

Transurban is one of the world’s largest infrastructure investors with an extensive portfolio of toll roads across Australia and North America.

Despite its share price slumping in the recent bear market, there could be a silver lining for Transurban. The coronavirus restrictions have forced a rethink of commuting which could see more Aussies turn to toll roads in 2020.

If we see another COVID-19-related share market crash, I think the Transurban share price could be caught up in it. If there’s a tidy discount on offer, I might buy-in if I think it’s at a bargain.

But Transurban isn’t the only ASX share I’d have my eye on in a share market crash. While Transurban might be a speculative play, buying AGL Energy Limited (ASX: AGL) could be a good defensive option.

The Aussie energy generator and retailer could see its earnings hold up better than some in 2020. The energy sector is generally non-cyclical, given the demand for energy is largely uncorrelated with the state of the economy.

While I think the AGL share price is unlikely to rocket higher in 2020, it could be a good option to buy in a share market crash. Of course, it’s worth investing in all ASX shares with a long-term view, but AGL could be a solid buy.

It already boasts a strong market share in the Aussie energy market and is one of the leading investors in renewable energy. If you’re bullish on the role of renewables in Australia for the long-term then maybe AGL is worth a look.

More reading

• Is the Transurban share price a good buy right now?
• ASX retailers beware! Amazon.com is gearing up for its next major attack
• Can 5G help push the Telstra share price higher by 2021?
• Qantas share price on watch as it launches a $2bn cap raise
• You don’t have to time the market to get rich with ASX shares

Motley Fool contributor Ken Hall has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of Transurban Group. 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 Tesoro Resources Ltd (ASX: TSO) share price is storming higher today as investors react to promising assay results.

At the time of writing, Tesoro shares have jumped 15.87% to 7.3 cents apiece after surging by as much as 26.98% in early morning trade.

Tesoro Resources is a gold explorer with a strategy of acquiring, exploring and developing mining projects in the Coastal Cordillera region of Chile.

Tesoro’s cornerstone project is its 70%-owned El Zorro Gold Project. The project covers more than 10,000 hectares and is located in northern Chile. Tesoro has the rights to acquire up to 80% of the El Zorro project.

What’s moving the Tesoro share price?

This morning, Tesoro announced it has received surface assay results for controlled outcrop channel sampling conducted at the Buzzard Prospect at El Zorro.

According to the release, the sampling has identified a large gold-bearing vein system over an area approximately 1,100 metres long and 750 metres wide. Individual veins exhibit gold mineralisation for over 250 metres of strike.

Significant results include:

• 3 metres at 5.23 grams per tonne (g/t) gold;
• 6 metres at 7.06g/t gold;
• 1 metre at 2.55g/t gold; and
• 3 metres at 1.16g/t gold.

“The early stage results from Buzzard further demonstrate the potential of the El Zorro gold system with gold now identified over 5km of strike at multiple prospects,” said managing director, Zeff Reeves.

“The Buzzard vein system is extensive, and these results have highlighted large-scale potential, which will require additional work to further understand,” Mr Reeves added.

Tesoro has now received final assays for 200 samples related to first pass channel and rock chip sampling from the Buzzard Prospect. 

The company advised that additional work is required to further delineate surface gold mineralisation at Buzzard. This will involve follow up mapping, sampling, and trenching in order to delineate potential drill targets.

Ternera drilling

The Buzzard Prospect is located around 2 kilometres south of the main Ternera Prospect.

Tesoro noted today it has nearly completed the drill planning and preparation for an infill and extensional drill program at Ternera. Accordingly, two drill rigs are being mobilised and drill pads are currently being installed.

The program, scheduled to commence in July, is designed to further define and expand the Ternera deposit. 

With a share price of 7.3 at the time of writing, Tesoro’s market capitalisation currently stands at around $32 million. If you’d rather stick to investing in larger and more liquid shares, check out the top ASX growth shares in the report below.

More reading

• Are these small cap ASX tech shares future stars?
• 2 ASX tech shares to buy and hold beyond 2025
• 3 top international ASX shares for growth and income
• 3 quality ASX shares offering shareholders generous dividends
• Why the Scentre share price could rise 88% in 2020

Motley Fool contributor Cathryn Goh 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 oil price fell again overnight. So far this week it has lost 5.8%. This fall has sent ripples through the Australian share market and the world’s oil companies. The market has been very optimistic about the return of fuel demand. Nevertheless, we are still a long way from a return to normal demand. In addition, the natural gas market has also seen constriction in pricing due to a number of factors. 

As always, this has inadvertently created some really strong buying opportunities for investors.

Why is the oil price falling?

U.S. crude oil inventories currently sit at 540.7 million barrels. This is higher than the 5-year average for this time of year and a resumption in demand levels is far slower than anticipated. The US Energy Information Administration has announced a build in crude inventories by 1.2 million barrels for the week ending 12 June. In addition, a 1.4-million-barrel increase for the week ending 19 June. 

Within the US, a major market for gasoline and distillate, fears exist for a second wave of the coronavirus. However, it is uncertain whether it will attempt at a full shutdown again. Regardless, the resumption of international air travel, a major user, is still a long way off. Today’s announcement of the layoff of 6,000 workers by Qantas Airways Limited (ASX: QAN) underlines that point.

Aussie oil companies

All 4 major Australian oil and gas producers have seen their share prices fall from last Friday’s close. In particular Oil Search Limited (ASX: OSH) has slid by 9.43%. Oil Search has been doing a tremendous job fighting for survival in the current economy.

It has already cut its capital expenditure by 40%, yet it remains exposed due to its net debt of $2.9 billion. In a recent retail capital raising it was not able to fill all of its share purchases. The company raised $79.5 million out of an expected $80 million. The last reported breakeven costs for Oil Search were $32 per barrel of oil equivalent (BOE). This is a means of measuring liquefied natural gas (LNG) and oil.

Woodside Petroleum Limited (ASX: WPL) has seen its share price fall by 4.9% thus far, Origin Energy Ltd (ASX: ORG) by 5.7%, and Santos Ltd (ASX: STO) share price has fallen by 5.5%.

While I like all 3 of these companies, I lean towards Origin Energy under the current conditions.

Origin is targeting a breakeven cost of <US$24 BOE in its H1 earnings report. The company has agreed to acquire a 20% stake in Octopus Energy in the UK for $507 million. This includes exclusive Australian access to the Octopus software, Kraken. This will extend its competitive cost position, with targeted cost savings of $70–80 million by FY22 and $100–150 million by FY24.

Origin is currently trading at a price to earnings (P/E) ratio of 10.1 and its share price is still 31% down year to date. 

Foolish takeaway

I think the Origin share price is an absolute bargain today. The recent falls due to the sliding oil price have made it even more attractive. Unlike the other companies mentioned, Origin is both a producer and a retailer. The company is totally focussed on reducing breakeven costs and has taken innovative steps in this area. While the oil and LNG prices are likely to be depressed for the foreseeable future, Origin is well-placed to operate in a low margin environment. 

More reading

• ASX 200 down 1.8%: CSL announces new acquisition, Qantas to raise $1.9bn
• Why Evolution, IDP Education, Oil Search, & Webjet shares are dropping lower
• Qantas share price on watch as it launches a $2bn cap raise
• 5 things to watch on the ASX 200 on Thursday
• This top fund manager believes dividend yields are going to 0%. Where should you invest?

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.

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The Bapcor Ltd (ASX: BAP) share price has tumbled lower on Thursday despite the release of a positive trading update. The announcement, which was released prior to the market’s open on Thursday morning, included updated profit guidance for the 2020 financial year. At the time of writing, the Bapcor share price was down 2.38% to $5.75 following the news.

What was included in the announcement?

Bapcor announced that the impact of coronavirus restrictions on its business were not as severe as originally anticipated. The company had experienced higher than expected demand, especially across its retail and Burson Trade segments in Australia. Additionally, most of Bapcor’s other businesses were recovering more quickly than anticipated and were returning to the level of demand seen prior to the pandemic.  

According to the announcement, Bapcor’s retail segment experienced strong demand in May and June. Same store sales for Autobarn increased over 45% when compared with the same period in 2019. This came after same store sales fell by 3% in April. Bapcor reported that this sales growth was experienced across both company-owned and franchised stores. For the full year to June 2020, Bapcor estimates that Autobarn’s same store sales will increase by around 8%.

The company further reported that Burson Trade experienced strong demand across May and June. Its same store sales growth is expected to be around 10% up on the year prior. This follows a 10% year-on-year fall in same store sales for April. For the full year, the company expects Burson same store sales growth to be around 5%.

The segments of Bapcor that were most heavily affected by coronavirus were New Zealand, Thailand, and specialist wholesale. However, the company reported that these segments are also now recovering from the impacts of coronavirus restrictions.

According to Bapcor, the current strong demand in retail and Burson Trade includes an element of stimulus-induced discretionary spending. 

Bapcor’s outlook

Following strong performance over the past two months, Bapcor predicted that net profit after tax for the 2020 financial year would be in the range of $84 – $88 million. This prediction was subject to normal, year-end audit procedures. It also excludes significant items relating to major acquisitions as well as transition costs associated with the company’s new distribution centre in Melbourne.

The company also announced “Future demand is anticipated to moderate as we enter the new financial year in an environment of economic uncertainty and as government stimulus reduces”.

About the Bapcor share price

The Bapcor share price is up 101% from its 52-week low of $2.85. However, it has fallen 10% since the beginning of the year. So why hasn’t the automotive giant’s share price risen on the back of today’s largely positive news from the company? The Bapcor share price did actually rally in early trade today, reaching a high of $5.94. This was followed by a sharp fall and then an additional brief rally before a gradual tapering off to its current price of $5.75 (at the time of writing). My opinion is that today’s announcement, whilst positive overall, was pretty much in line with investors’ expectations. And because the wider market is falling lower today, the news from Bapcor was not startling enough to garner sufficient buying to offset the general selloff.  

More reading

• Australian businesses are running out of cash
• Bapcor and 1 other quality ASX share to add to your portfolio
• Coronavirus second wave potential could drive investment portfolio changes
• 3 long-term ASX 200 shares I’d buy right now
• Top fund manager reveals some of the best ASX shares to own

Motley Fool contributor Chris Chitty has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Bapcor. 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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On Wednesday I looked at three ASX shares that brokers have given buy ratings to this week.

Unfortunately, not all shares are in favour with them right now. Three ASX 200 shares that have just been given sell ratings by brokers are listed below.

Here’s why these brokers are bearish on them:

IGO Ltd (ASX: IGO)

According to a note out of Ord Minnett, its analysts have resumed coverage on this nickel miner’s shares with a sell rating and $3.70 price target. The broker made the move largely on valuation grounds. It feels its shares are expensive at this level and could come under significant pressure if its guidance for FY 2021 disappoints. The IGO share price is currently trading notably higher than this price target at $4.92.

Magellan Financial Group Ltd (ASX: MFG)

A note out of Credit Suisse reveals that its analysts have retained their underperform rating and $47.00 price target on this fund manager’s shares. It continues to have a problem with its valuation and notes that its shares are the most expensive under coverage in the sector. And while its funds have performed positively, it doesn’t believe this is enough to justify the premium its shares are trading at. Magellan’s shares are changing hands for $56.95 this afternoon.

Sonic Healthcare Limited (ASX: SHL)

Analysts at UBS have retained their sell rating and lifted the price target on this healthcare company’s shares to $26.75 following its trading update. According to the note, the broker has lifted its forecasts to account for a better than expected second half. Nevertheless, this isn’t enough to force a change of rating and UBS continues with its sell rating. Sonic’s shares are trading at $30.19 at the time of writing.

More reading

• 5 things to watch on the ASX 200 on Thursday
• ASX 200 down 0.2%: Afterpay hits record high, TPG Telecom merger vote
• Why Afterpay, APA, Evolution, & Sonic shares are storming higher
• Sonic Healthcare share price pushes higher on FY 2020 guidance update
• Renewed US-China trade war puts these ASX 200 stocks in the firing line

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Sonic Healthcare 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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