At lunch on Wednesday the S&P/ASX 200 Index (ASX: XJO) has given back its morning gains and dropped into the red. The benchmark index is currently down 0.1% to 5,935.3 points.

Here’s what has been happening on the market today:

Carsales update.

The Carsales.Com Ltd (ASX: CAR) share price has been a strong performer on Wednesday. Investors have responded positively to the release of a business update by the auto listings company which included guidance for the full year. Carsales expects to report adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) in the range of $228 million to $232 million in FY 2020. This will be a 5% to 6% increase on FY 2019’s adjusted EBITDA.

Bank shares acting as a drag.

The big four banks have been acting as a major drag on the ASX 200 on Wednesday. At lunch, all four banks are trading lower despite there being no news out of the group. I suspect that investors may be taking a bit of profit off the table after strong gains on Tuesday. The worst performer in the big four has been the Australia and New Zealand Banking GrpLtd (ASX: ANZ) share price with a 1.5% decline.

CSL exec to join BHP

The CSL Limited (ASX: CSL) share price is pushing higher today despite announcing the exit of its chief financial officer. David Lamont, who has been in the role since January 2016, will leave the biotherapeutics company in October and join mining giant BHP Group Ltd (ASX: BHP). Mr Lamont will replace Peter Beaven as the Big Australian’s chief financial officer on 1 December 2020.

Best and worst ASX 200 shares.

The best performer on the ASX 200 on Wednesday has been the A2 Milk Company Ltd (ASX: A2M) share price with a gain of almost 7%. On Tuesday UBS retained its buy rating and ~$20.64 price target on the company’s shares. The worst performer has been the Mayne Pharma Group Ltd (ASX: MYX) share price with a 4.5% decline. Next week the pharmaceutical company will be kicked out of the ASX 200.

More reading

• Why a2 Milk, Carsales, Fisher & Paykel Healthcare, & Starpharma are surging higher
• Carsales share price up 5% following solid trade update
• Is $1,000 invested in AGL Energy shares a smart investment?
• How to become wealthy by investing $1,000 into ASX shares
• 3 reasons to buy ASX 200 shares right now

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 A2 Milk. The Motley Fool Australia has recommended carsales.com Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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After a strong start to the day, the S&P/ASX 200 Index (ASX: XJO) is currently fighting hard to stay in positive territory. In late morning trade the benchmark index is up slightly to 5,944.4 points.

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

The A2 Milk Company Ltd (ASX: A2M) share price has jumped 6.5% to $18.90. This may be in response to a broker note out of UBS on Tuesday. According to the note, the broker has retained its buy rating and NZ$22.00 (A$20.64) price target on the infant formula company’s shares. It believes there is some upside risk to its earnings guidance for FY 2020.

The Carsales.Com Ltd (ASX: CAR) share price has stormed almost 5% higher to $17.77. This follows the release of a business update by the auto listings company this morning. That update revealed that Carsales expects to report adjusted earnings before interest, tax, depreciation, and amortisation (EBITDA) in the range of $228 million to $232 million in FY 2020. This represents a 5% to 6% year on year increase in adjusted EBITDA.

The Fisher & Paykel Healthcare Corp Ltd (ASX: FPH) share price is up 5% to $27.59. This gain appears to have been driven by a broker note out of Macquarie this morning. According to the note, the broker has upgraded the medical device company’s shares to an outperform rating. It believes current trading conditions bodes well for the company’s earnings growth in the near term.

The Starpharma Holdings Limited (ASX: SPL) share price has surged 7.5% higher to $1.14. Investors have been buying the company’s shares after it revealed the results of its first radiotherapeutic candidate. DEP lutetium showed highly statistically significant anticancer activity, tumour regressions, and 100% survival in a human prostate cancer model.

More reading

• Carsales share price up 5% following solid trade update
• How to become wealthy by investing $1,000 into ASX shares
• Here are 2 top ASX tech shares for your portfolio
• Why these ASX shares could help you beat the market
• Is the SEEK share price a buy right now?

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 Starpharma Holdings Limited. The Motley Fool Australia owns shares of A2 Milk. The Motley Fool Australia has recommended carsales.com Limited and Starpharma Holdings 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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There are some ASX shares where it takes years for the investment thesis to play out. There are other ASX shares that could be worth buying for what may happen in 12 months or less.

No-one can truly tell you what’s going to happen tomorrow or next week with the share market. But I think 12 months is a long enough time period where your investment idea can prove you right through two reporting seasons, perhaps it only needs one result to prove you right.

With that in mind, here are three ASX shares that I think could produce good growth over the next 12 months:

Share 1: Costa Group Holdings Ltd (ASX: CGC)

Costa is Australia’s largest agricultural businesses. It grows tomatoes, avocadoes, mushrooms, berries and citrus fruit.

The last couple of years have been very tough for Costa. There’s the COVID-19 global pandemic happening right now. Bushfires were a worry during last summer, a fire caused some damage at one of Costa’s farms. The agricultural ASX share has had to deal with the terrible drought. Fruit flies were an issue for its citrus division.

Can it get any worse after all of those issues in such a short time? Hopefully not.

Food prices are rising and this should help Costa a lot. It largely costs Costa the same to grow produce whether food prices are cheaper or a bit more expensive – so higher revenue is mostly just extra profit.

I think the higher food prices could have a very helpful effect on Costa over the next 12 months. The drought ending would also be very good if it keeps raining in those dry hard-hit areas.

Share 2: Sydney Airport Holdings Pty Ltd (ASX: SYD)

Sydney Airport is one of those ASX travel shares that has suffered enormously because of the limitations of travellers coming to Australia. Domestic travel has also suffered a big hit. In April 2020 the airport operator saw total passengers decline by 97.5% to 92,000. International passengers were down 96.9% to 43,000 and domestic travellers were down 97.9% to 49,000.

However, the Sydney Airport share price is recovering as Australia’s domestic travel restrictions lift. Since 3 April 2020 the Sydney Airport share price has risen around 21%. But there’s still a long way to go before international travel restrictions improve. But there is some promising news regarding the treatment of COVID-19 with an existing drug seemingly helping some suffering COVID-19 patients recover. 

Share 3: Macquarie Group Ltd (ASX: MQG)

Macquarie is by far my favourite large ASX bank share. There are two key reasons why.

Commonwealth Bank of Australia (ASX: CBA), Westpac Banking Corp (ASX: WBC), Australia and New Zealand Banking Group (ASX: ANZ) and National Australia Bank Ltd (ASX: NAB) are all heavily focused on Australia and New Zealand. Macquarie generates about two thirds of its earnings outside of the local region. I think that’s good international diversification.

The second reason is that the big four ASX banks generate most of their earnings from loans. Macquarie has a loan book too, but its earnings are more evenly spread across other divisions. For example, it’s one of the world’s biggest infrastructure asset managers. It also offers numerous investment banking services such as its involvement with initial public offerings, capital raisings, acquisitions and so on.

I like that Macquarie can pivot towards whatever sector or region it thinks is a growth area. A focus for the ASX share right now is renewable energy.  

I think that Macquarie’s share price can continue to rise into 2021 as the world economy heads towards normality again, or at least a new normal.

Foolish takeaway

I think these three ASX shares could produce solid returns over the next 12 months. If I had to pick one of three, I’d go for Macquarie. I think it’s a high-quality business that has very good management and is also focused on shareholder returns with a good dividend yield.

More reading

• Why Afterpay and these ASX shares just stormed to new highs
• Why I would buy CSL and these ASX blue chip shares
• 2 quality ASX 200 shares to buy for long-term growth
• Why I would buy Wesfarmers and these ASX dividend shares
• ASX 200 falls 2%, ASX travel shares drop heavily

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended COSTA GRP FPO and 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.

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

Update on impending FY 2020 results

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

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

Lead and traffic volumes improving in Australia, but inventory declines

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

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

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

Korea performs well, Brazil remains challenged

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

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

Will the Carsales share price continue its rise?

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

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

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

More reading

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

Motley Fool contributor Phil Harpur owns shares of carsales.com Limited. The Motley Fool Australia has recommended carsales.com Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

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

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

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

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

More reading

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

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of MEGAPORT FPO. The Motley Fool Australia owns shares of and has recommended Webjet Ltd. The Motley Fool Australia has recommended InvoCare Limited and MEGAPORT FPO. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why G8 Education, InvoCare, Megaport, & Webjet shares are tumbling lower appeared first on Motley Fool Australia.

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

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

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

Why AGL Energy shares have slumped lower this year

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

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

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

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

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

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

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

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

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

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

Foolish takeaway

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

More reading

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

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

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

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

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

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

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

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

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

a2 Milk Company Ltd (ASX: A2M)

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

Altium Limited (ASX: ALU)

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

IDP Education Ltd (ASX: IEL)

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

More reading

• Why these ASX shares could help you beat the market
• 3 ASX shares to buy and hold for the next decade
• Is the Altium share price the steal of the century?
• Leading brokers name 3 ASX 200 shares to buy right now
• Why Appen, Healius, IDP Education, & Propel shares are racing higher

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Altium and Idp Education Pty Ltd. The Motley Fool Australia owns shares of A2 Milk. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

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

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

3 reasons to buy ASX 200 shares right now

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

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

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

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

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

That leads me to my second point: market timing.

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

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

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

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

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

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

Foolish takeaway

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

More reading

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

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

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