If you’re a growth investor, then you might want to take a look at the growth shares listed below.

I believe each of these companies are well positioned to grow their earnings at an above-average rate for many years to come. Which could potentially lead to their shares outperforming the market over the long term.

Here’s why I would invest $3,000 into these ASX growth shares once the dust settles on today’s market selloff:

Aristocrat Leisure Limited (ASX: ALL)

The first growth share I would suggest you consider buying is Aristocrat Leisure. While the gaming technology company is best known for designing and manufacturing many of the poker machines you’ll find in Crown Resorts Ltd (ASX: CWN) and countless casinos across the world, there is more to it than first meets the eye. Aristocrat Leisure also has a very lucrative digital business which is generating significant recurring revenues from its millions of daily active users. I believe this side of the business will be a key driver of growth over the next decade and expect it to become the biggest earner in the near future. 

Cochlear Limited (ASX: COH)

Another growth share to consider buying is Cochlear. I’m a big fan of the hearing solutions company due to the quality of its products, its strong long term growth prospects, and its high level of investment in research and development. I believe the latter will help keep its technology at the front of the pack and underpin solid earnings growth over the next decade and beyond. Another positive is its sizeable current market opportunity. The company estimates that less than 10% of people who would benefit from an implantable hearing solution are treated.

IDP Education Ltd (ASX: IEL)

A third growth share to consider investing $3,000 into is IDP Education. It is a provider of international student placement services and English language testing services. Over the last few years IDP Education has been growing at a rapid rate. And while its near term growth will inevitably be impacted by the pandemic, I expect it to accelerate again once the crisis passes. This could make it well worth considering a patient and long-term focused investment in its shares.

More reading

• 3 ASX shares to buy now with $10,000
• Can this ASX dividend share afford its 11% yield?
• 3 safe and strong ASX 50 shares to buy right now
• 3 quality ASX 200 shares to buy and hold until at least 2030
• 10 ASX 200 shares that are fit for the Queen

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

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The National Australia Bank Ltd (ASX: NAB) share price slumped 5.4% lower yesterday but is the ASX bank now in the buy zone?

Why the NAB share price slumped lower yesterday

Alongside the NAB shares sliding in yesterday’s trade, the S&P/ASX 200 Index (ASX: XJO) dropped 3.1%. The benchmark ASX 200 index closed at 5,960.60 points.

I don’t think there was a fundamental shift behind yesterday’s ASX bank move although, according to reporting in the Australian Financial Review (AFR), not all investors are bullish on the ASX banks in 2020.

It’s worth noting the NAB share price opened up 5.1% on Tuesday and led the ASX 200 higher. 

Yesterday’s slump could simply be investors closing out positions and netting some tidy gains. After all, NAB’s value has rocketed 37.4% since bottoming out in the bear market on 23 March.

Is NAB a cheap ASX bank share to buy today?

After NAB’s price fall yesterday, it’s now down more than 33% from its 52-week high of $30 per share.

NAB does have a large business banking segment which does create some headaches for investors. I think whether NAB is cheap depends on how you view the business’s recovery in 2020 and 2021.

Restrictions are starting to ease which is good news for the economy and corporate earnings. If NAB’s debtors continue to pay their loans then the Aussie bank’s earnings could surprise the market in October or November.

However, there’s plenty of uncertainty remaining in the economy. One of the big question marks is how the removal of the current government stimulus measures will impact on the Aussie economy.

I think there could still be long-term value in the NAB share price at $19.07 per share. The ASX banks have historically been strong dividend shares and I think that will continue in 2021 and beyond.

Foolish takeaway

Yes, the NAB share price slumped lower yesterday but the trend in the past few months has been upward. That could mean there’s a chance to buy for a good price if you’re a buy and hold investor looking at the decades ahead.

More reading

• ASX 200 to sink lower after Wall Street crashes on second wave concerns
• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops 3%, Webjet share price sinks
• These ASX 200 stocks just got downgraded by top brokers
• These ASX shares are the best way to invest overseas

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.

The post Is this why the NAB share price could be cheap today? appeared first on Motley Fool Australia.

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

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

The good times are over for the Dow Jones Industrial Average (DJINDICES: ^DJI). The Dow was down 4.3% at 11:50 a.m. EDT Thursday as the possibility of a second wave of the novel coronavirus spooked investors.

Confirmed cases of the virus are surging in some places around the U.S. following the easing of lockdown measures and the reopening of the economy. In Texas, more than 2,500 cases were confirmed on June 10, setting a record for the state. Florida, California, and nearly a dozen other states are also seeing an increase in cases.

Apple (NASDAQ: AAPL) outperformed the Dow thanks to some analyst price-target bumps, but shares were still down amid the broad sell-off. Disney (NYSE: DIS) stock was hit much harder. The company is preparing to reopen its U.S. parks in a highly uncertain environment.

Apple outperforms on analyst optimism

Apple couldn’t fully escape the steep sell-off in the major stock indices on Thursday, but a trio of analyst price target bumps helped limit the damage. Apple stock was down just 1.4% by late morning, making it one of the best-performing Dow components.

Wells Fargo chimed in on Thursday morning, raising its price target on Apple stock from $315 to $385. The bank based its optimism on mobile phone registration data for April and May in China, which showed a recovery in smartphone demand. Apple’s total revenue from China was down 7.5% in the quarter ended March 28.

Bank of America also got in on the action, reiterating a buy rating on Apple stock and raising its price target from $340 to $390. BofA expects a quick recovery in demand in emerging markets, strong App Store sales in China, and gross margin improvements due to a mix shift toward pricier iPhones. However, the bank sees U.S.-China trade tensions and a lengthening iPhone replacement cycle as two risks facing the tech giant.

Lastly, HSBC upgraded Apple stock from reduce to hold, raising its price target from $225 to $295. The upgrade was based on the expectation that Apple will have a successful launch of 5G iPhones later this year.

How well Apple’s new iPhones sell this year will depend partly on the state of the U.S. economy. While the situation is improving following the easing of lockdown measures across the country, a potential second wave of the novel coronavirus could dampen that recovery. If consumers aren’t keen on shelling out for an expensive new smartphone amid a recession, Apple stock may have a rough road ahead.

Disney slumps as second wave fears mount

Few companies are more exposed to risk in a second wave of the virus than Disney. The stock was down 5.8% by late Thursday morning as investors chewed on the idea that the pandemic is far from over.

Disney is planning to begin a phased reopening of its Disney World Resort in Florida on July 11. The company has also unveiled plans to begin reopening its Disneyland Resort in California on July 9. Under the plan, which still requires government approval, various portions of the resort will reopen on dates ranging from July 9 to July 23. Capacity will be significantly limited, and a new theme park reservation system will be in place.

The big question: How many guests, especially those who need to fly in from other parts of the country, will return to the company’s properties amid a pandemic? This question is complicated by the potential for a second wave of the virus, which could make people less likely to make the trip. Disney may be facing a long period of depressed attendance, and it may take a successful vaccine for the company’s parks business to fully recover.

Disney stock has surged from its March low on optimism surrounding the company’s reopening of its properties. That optimism seems to be fading as cases of the virus surge in some parts of the country.

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

More reading

• ASX investors brace to ride the next wave of “irrational exuberance”
• Here’s why it’s vital your ASX shares have a moat
• Should ASX 200 investors want share buybacks or dividends?

Timothy Green owns shares of Bank of America. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Apple and Walt Disney and recommends the following options: long January 2021 $60 calls on Walt Disney and short July 2020 $115 calls on Walt Disney. The Motley Fool Australia has recommended Apple and Walt Disney. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Dow Jones Tumbles 1,200 Points on Virus Fears; Apple Stock Outperforms; Disney Stock Plunges appeared first on Motley Fool Australia.

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

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The S&P/ASX 200 Index (ASX: XJO) looks set to sink lower again on Friday after Wall Street had its worst day of trade since March.

At the time of writing, SPI futures are pointing to the ASX 200 falling a sizeable 181 points or 3.05% at the market open this morning.

What happened on Wall Street?

U.S. investors were heading to the exits in their droves last night after concerns over a second wave of coronavirus spooked the market.

According to CNBC, the U.S. topped two million coronavirus cases after the virus began to spread more quickly in states that aggressively reopened their economies. These include states such as Texas, Arizona, and North Carolina.

Texas, which was one of the first states to ease lockdown restrictions, has been hit particularly hard. The state has reported three consecutive days of record-breaking hospitalisation numbers.

Evercore ISI macro research analyst, Dennis DeBusschere, appears concerned that a second wave could put economic and company growth expectations at risk.

In a note, courtesy of CNBC, DeBusschere said: “With TX, AZ, CA new cases and hospitalizations increasing and investors concerned that recent protest will fuel a wave of infections, the risk of persistently weak economic and earnings growth has increased. S&P fair value estimates are falling as a result.”

And while the U.S. Federal Reserve is supporting the market with its monetary policy, he warned that the Fed cannot “offset a severe COVID second wave.”

This ultimately led to the Dow Jones Industrial Average crashing 1861.82 points or 6.9% lower on Thursday. This was the Dow’s fourth-worst point loss ever and puts it on course to record its worst weekly decline since mid-March.

Elsewhere, the S&P 500 fell a sizeable 5.9% and the technology-focused Nasdaq index sank 5.3% lower.

Almost all shares were sold off.

While 11 out of 11 sectors traded lower for the day, some areas of the market fell more than most.

Banks, travel companies, and energy shares were particularly poor performers. The latter was driven by a sharp decline in oil prices amid concerns that a second wave could cause another decline in demand.

This could mean it will be another tough day of trade for the likes of Commonwealth Bank of Australia (ASX: CBA), Santos Ltd (ASX: STO), and Webjet Limited (ASX: WEB) on Friday.

More reading

• 5 things to watch on the ASX 200 on Friday
• ASX 200 drops 3%, Webjet share price sinks
• These ASX 200 stocks just got downgraded by top brokers
• 3 of the best ASX 200 blue chip shares to buy today
• Why the Webjet share price isn’t a bargain buy

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet 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 ASX 200 to sink lower after Wall Street crashes on second wave concerns appeared first on Motley Fool Australia.

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On Thursday the S&P/ASX 200 Index (ASX: XJO) ended its winning streak and sunk notably lower. The benchmark index fell a disappointing 3.05% to 5,960.6 points.

Will the market be able to bounce back from this on Friday? Here are five things to watch:

ASX 200 expected to extend its decline.

It looks set to be another bleak day of trade for the ASX 200 after Wall Street crashed lower overnight. According to the latest SPI futures, the benchmark index is expected to sink 185 points or 3.1% lower at the open. On Wall Street the Dow Jones dropped 6.9%, the S&P 500 fell 5.9%, and the Nasdaq sank 5.3%.

Wall Street sell off.

U.S. stocks have just had their worst day in three months after a spike in coronavirus cases in the United States led to concerns over a second wave. Very few shares were spared during last night’s selloff. Airlines, travel shares, banks, and retailers were sold off. This could put further pressure on the likes of Australia and New Zealand Banking GrpLtd (ASX: ANZ) and Webjet Limited (ASX: WEB) today.

Oil prices tumble lower.

Energy producers such as Santos Ltd (ASX: STO) and Woodside Petroleum Limited (ASX: WPL) could come under significant pressure after oil prices crashed lower overnight. According to Bloomberg, the WTI crude oil price dropped 9% to US$36.05 a barrel and the Brent crude oil price crashed 8.5% to US$38.17 a barrel.

Gold price pushes higher.

Gold miners including Newcrest Mining Limited (ASX: NCM) and Saracen Mineral Holdings Limited (ASX: SAR) could be pushing higher today after the market crash sent the gold price jumping higher. According to CNBC, the spot gold price rose 0.85% to US$1,735.20 an ounce.

JB Hi-Fi shares given neutral rating.

The JB Hi-Fi Limited (ASX: JBH) share price could be fully valued according to analysts at Goldman Sachs. Although the broker was impressed with the retailer’s trading update on Thursday, it has only lifted its price target to $39.30. So, with its shares closing the day at $40.22, Goldman has held firm with its neutral rating.

More reading

• ASX 200 to sink lower after Wall Street crashes on second wave concerns
• ASX 200 drops 3%, Webjet share price sinks
• These ASX 200 stocks just got downgraded by top brokers
• Why the Webjet share price isn’t a bargain buy
• These ASX shares are the best way to invest overseas

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Webjet 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 5 things to watch on the ASX 200 on Friday appeared first on Motley Fool Australia.

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