In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a disappointing decline. At the time of writing, the benchmark index is down 0.5% to 7,783.9 points.

Four ASX shares that are not letting that hold them back today are listed below. Here’s why they are rising:

Core Lithium Ltd (ASX: CXO)

The Core Lithium share price is up 15% to 10.5 cents. Investors have been buying the lithium miner’s shares after it exceeded its FY 2024 production guidance. Over the 12 months, Core produced 95,020 dry metric tonnes (dmt) of spodumene concentrate and shipped 97,423 dmt. This led to Core Lithium reporting an unaudited cash balance of $87.6 million at 30 June, which is up from $80.4 million at the end of March. However, revenue will now dry up with all activities suspended at the Finniss operation. And while restart assessments are underway, management said that the resumption of activities “would only occur when we are confident the lithium market conditions support such a decision.”

Encounter Resources Ltd (ASX: ENR)

The Encounter Resources share price is up almost 21% to 88 cents. This has been driven by the release of drilling results from the Aileron project in Western Australia. The niobium explorer revealed that aircore drilling has intersected further shallow, high-grade mineralisation at the West Arunta-based project. Encounter Resources’ executive chairman, Will Robinson, commented: “Aircore drilling is defining new belts of shallow niobium-REE carbonatite hosted mineralisation in the West Arunta. Highly enriched, near surface mineralisation has now been intersected at both the Crean and Emily targets which are located on separate structures at Aileron, over 10km apart.”

RED 5 Limited (ASX: RED)

The Red 5 share price is up 8.5% to 40.7 cents. This morning, this gold miner announced that it has entered into a restructured hedge facility and security package, repaid all outstanding loans, and restructured the hedging from the legacy Silver Lake Resources Limited (ASX: SLR) common terms deed. In addition, it advised that preliminary group sales for the fourth quarter were 110,818 ounces of gold. This brought full year sales to 455,259 ounces of gold.

Regis Resources Ltd (ASX: RRL)

The Regis Resources share price is up 2.5% to $1.82. This follows the release of the gold miner’s fourth quarter and full year update. In respect to the latter, Regis Resources achieved production of 417,700 ounces of gold for FY 2024. This was within its group production guidance range for the period. Management also revealed that it achieved a record $109 million increase in its quarterly cash and bullion balance. This took its cash and bullion balance to its highest ever level of $295 million.

The post Why Core Lithium, Encounter Resources, Red 5, and Regis Resources shares are storming higher appeared first on The Motley Fool Australia.

More reading

• This ASX mining share is surging 26% on ‘high-grade’ drilling results
• Core Lithium share price leaps 9% as results catch short sellers by surprise
• 2 ASX 200 gold stocks racing higher on record results
• Why did the Core Lithium share price crash 90% in FY 2024
• Guess which 2 ASX All Ordinaries shares were the best and worst performers of FY24?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

Share prices of Tesla (NASDAQ: TSLA) are up roughly 21% in five days since it was reported that second-quarter vehicle deliveries beat Wall Street’s expectations. However, the electric vehicle (EV) manufacturer’s longer-term downward trend remains in effect as it grapples with high interest rates, competition, and other macroeconomic factors.

Could the second-quarter deliveries indicate a sustainable recovery, or will Tesla continue fading out? Let’s explore what the next five years could have in store for this innovative EV leader.

Second-quarter deliveries beat expectations — or did they?

Tesla investors don’t have to wait until earnings (expected to be released this month) to get updated on the company’s performance. Management typically releases production and delivery data along with other vehicle manufacturers on a quarterly basis (it used to be released monthly). And the much-anticipated second-quarter numbers were no exception.

With 443,956 cars delivered in the second quarter, Tesla beat Wall Street’s consensus forecast of 439,000. But this is still down 4.8% from the prior-year period and represents the second consecutive quarter of declining deliveries after a 13% year-over-year drop in the first quarter.

The better-than-expected delivery numbers sparked a double-digit percentage rally in the stock price, but the automaker is not out of the woods yet. The extent of the weakness could be revealed when the company releases its full quarterly report.

Several key problems might come up. First is pricing. Automakers can drive volume growth by lowering prices. But this can come at the expense of revenue per car sold and margins. For Tesla, this could pose a big problem because its previously high margins are the main thing differentiating it from its uninspiring mass-market rivals.

In the first quarter, its operating margins fell from 11.4% to 5.5%. And continued declines could turn the company into just another automaker.

Musk to the rescue?

With a price-to-sales (P/S) multiple of 6.33, its stock trades at a significant premium over the typical large U.S. automaker. For context, Ford Motor Company and General Motors trade for a P/S of just 0.3 and 0.36, respectively. And if Tesla becomes just another car company, it could lose much of its $560 billion valuation. Shareholders are betting that CEO Elon Musk won’t let this happen.

Fresh off securing an equity-based pay package worth $44.9 billion, Musk is incentivized to do everything possible to boost the stock price. He seems to be downplaying the automotive opportunity in favor of new growth drivers like robotics and artificial intelligence (AI).

The company is working on Dojo, a supercomputer designed to help train its machine-learning models for full self-driving (FSD). While Tesla isn’t the only company tackling this effort, it has some advantages because of the vast amount of user data it can gather from its customers with FSD software installed in their cars. Musk says its robotaxi will be revealed on Aug. 8, along with its next-gen vehicle platform.

If the robotaxis are consumer-ready, they could unlock a new nonautomotive revenue stream for Tesla, while putting it in a prime position to explore other AI uses like warehouse automation or possibly even humanoid robots over the next five years and beyond.

Is the stock a buy?

Tesla has once again become a highly speculative company. If current trends continue, its previously high-margin EV business could become commodified over the next five years amid rising competition and lower pricing power. This isn’t enough to justify the stock’s forward price-to-earnings (P/E) ratio of 57 compared to the Nasdaq Composite’s average P/E of 32.

Investors who buy the stock now are betting on Elon Musk and his ability to transform the company into more than just an automaker through AI and robotics. This is a tall order. And the controversial executive has a track record of overpromising and underdelivering.

With that said, Musk has rescued Tesla from the brink on several occasions, so there is good reason for the market to have some faith in him. The stock looks like a hold pending more information.

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

The post Where will Tesla stock be in 5 years? appeared first on The Motley Fool Australia.

More reading

• ASX lithium shares: Screaming bargains or falling knives?
• 2 EV trends Tesla and Rivian investors should understand now
• Why Tesla shares kept rallying today
• Why Tesla stock continued to surge higher today
• Why Tesla stock popped ahead of second-quarter deliveries

Will Ebiefung has no position in any of the stocks mentioned.  The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended General Motors and has recommended the following options: long January 2025 $25 calls on General Motors. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Investors in S&P/ASX 200 Index (ASX: XJO) energy shares will want to keep a close eye on the latest supply and demand dynamics unfolding in Australia’s gas markets.

The big Aussie energy producers have struggled this year amid concerns a potential over supply of crude oil could see Brent crude prices averaging less than US$80 per barrel in the second half of 2024. Brent is currently trading for US$86 per barrel.

A bit over midway through 2024, Santos Ltd (ASX: STO) is the only one of the big three ASX 200 energy shares in the green, with shares up 2.6% year to date.

Woodside Energy Group Ltd (ASX: WDS) shares are down 8.5% over this period, while the Beach Energy Ltd (ASX: BPT) share price has dropped 8.2%.

While the outlook for crude supply and demand remains uncertain, it’s looking increasingly likely that domestic demand for gas will outstrip supply as soon as 2027.

Here’s what we know.

ASX 200 energy shares may be tapped to increase supplies

As you’re likely aware, Australia ranks among the world’s top LNG exporters, following the United States and Qatar.

But more of that export gas may have to be diverted to ensure sufficient domestic supplies. And more supplies will need to be brought online to avoid looming shortfalls. That’s according to the Australian Competition and Consumer Commission’s latest gas enquiry report.

According to the ACCC:

While there is forecast to be an overall surplus next year, there is a risk of a shortfall in the third quarter when demand for energy is typically higher due to demand for heating in winter. The risk has reduced with the extended operation of Eraring Power Station.

The report notes that the Australian Capital Territory, New South Wales, South Australia, Tasmania and Victoria will all depend on gas piped in from Queensland to avoid local shortfalls in the second and third quarters of 2025. And from 2029, Queensland will also require new sources of supply.

The ACCC said this emphasised “the need for sufficient gas pipeline and storage capacity, in addition to gas production”.

And in an indication that ASX 200 energy shares could be encouraged to increase production and bring new gas project online, the ACCC noted:

Forecasts indicate that the east coast gas market may experience gas supply shortfalls as early as 2027 unless new sources of supply are made available. This predicted shortfall is likely to take place one year earlier than what previous reports have forecast.

The report pointed to “delays in new gas projects” and higher-than-expected gas consumption to generate power as driving the looming gas crunch.

The post ASX 200 energy shares eyeing ACCC gas crunch warning appeared first on The Motley Fool Australia.

More reading

• What happened with the Woodside share price in FY 2024?
• 5 things to watch on the ASX 200 on Monday
• Here’s how the ASX 200 market sectors stacked up last week
• Best 5 ASX 200 energy shares for price growth in FY24
• Santos share price goes red as takeover rumours turn into hot air

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Now that we’ve rolled into the new financial year, Westpac Banking Corp (ASX: WBC) shares continue to show strength.

Westpac was a standout on the ASX last financial year. In the last 12 months, its share price has surged by 30% and currently trades at $27.16.

Meanwhile, the S&P/ASX 200 index (ASX: XJO) has delivered single-digit returns in the same time. Westpac consequently outpaced the benchmark’s return by a wide margin.

So, did you miss out by not buying Westpac shares in FY24? And what’s in store for the bank moving forward? Here’s a look.

Westpac shares perform in FY24

Westpac shares gained in FY24 amid general market strength and positive reaction to its operating results.

The bank’s half-year results in May showed a 16% decrease in net profit to $3.3 billion and a seven-basis-point contraction in net interest margin (NIM) to 1.9%.

Despite this year-over-year decline in income, investors weren’t swayed.

They welcomed the 7.1% increase in the interim dividend to 75 cents per share, alongside a fully franked special dividend of 15 cents per share.

Westpac also authorised another $1 billion under its share buyback program.

These are shareholder-friendly moves that saw Westpac climb past its previous 52-week highs and climax at $27.89 apiece on 8 May. The banking stock has since pulled back from this mark.

What’s in store for Westpac?

The bank has some big plans ahead. According to my colleague Tristan, Westpac’s UNITE program is projected to cost an estimated $1.8 billion in FY24 and then $2 billion annually from FY25 to FY28.

It aims to improve customer service, increase shareholder returns, and “close the cost-to-income ratio gap to peers”.

Analysts, meanwhile, hold diverse views on Westpac’s FY25 outlook. While concerns persist about its exposure to the Australian housing market, others commend its strong capital position and proactive dividend policies.

Goldman Sachs maintains a neutral rating on Westpac shares with a $23.71 price target. The broker cites valuation concerns as its reasoning despite a favourable earnings outlook. Westpac currently trades at a price-to-earnings ratio (P/E) of 15 times.

Morgans also rates Westpac a hold, searching for a price target of $24.15 per share. Meanwhile, the consensus of analyst estimates rates it a sell, according to CommSec.

Key takeaways

Westpac shareholders finished FY24 with a smile after the stock’s good performance. However, long-term investors are thinking beyond the year-to-year movements in a stock’s price or the market in general.

The key is to think about what’s to come instead of relying solely on historical performance. Historical performance is never a guarantee of future results.

As Warren Buffett puts it: “The investor of today does not get paid for yesterday’s growth”.

Westpac shares might have had a great run in FY24 – but you should never rely on past results and always conduct your own due diligence.

The post Did you buy Westpac shares in FY24? Here’s the recap appeared first on The Motley Fool Australia.

More reading

• ASX 200 bank shares ‘don’t appear overly expensive’ compared to global peers: UBS
• What is the outlook for ASX 200 dividend shares in FY25?
• These were the five best ASX bank shares to own in FY24
• Retirement planning guide: 710,000 Aussies to retire over next 5 years
• Here’s when Westpac says the RBA will cut interest rates after last week’s inflation data

Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Are you on track with your retirement planning journey? As we enter a new financial year, our super contributions are worth checking to ensure we’re prepared.

Superannuation plays a crucial role in Aussies’ retirement savings strategy. Exploring average contributions across different age groups gives us valuable insights into retirement readiness.

In this article, I examine the average annual super contributions for individuals aged 45-49, 50-54, and 55-59. Please note that the averages used below are my calculations using FY22 data from the Australian Taxation Office (ATO).

Average annual contributions by age group

Based on the data, the average superannuation contributions for different age groups are as follows.

Age group	Employer	Personal	Other	Total
40-44	$7,306	$954	$309	$8,569
45-49	$7,418	$1,500	$456	$9,374
50-54	$7,264	$2,495	$671	$10,430
55-59	$6,897	$5,027	$879	$12,803

Ages 45 to 49: Increasing awareness of retirement planning

For individuals aged 45-49, the total average annual contribution for FY22 was $9,374, which included employer contributions of $7,418 and personal contributions of $1,500.

There has been an increase in personal contributions compared to the 40-44 age group, indicating growing awareness and proactive steps towards retirement planning.

Age 50 to 54: Heightened focus on retirement

The average annual contribution for this age group rises to $10,430. This includes employer contributions of $7,264, personal contributions of $2,495, and other contributions of $671.

It is worth noting that at this stage, contributions from employers have started to fall, reflecting changes in employment status and the transition to retirement. On the other hand, individuals are exploring various avenues to boost their superannuation, including salary sacrifice and other voluntary contributions.

Age 55 to 59: Intensive retirement preparation

For this older age group, the average annual contribution significantly increased to $12,803, including employer contributions of $6,897 and personal and other contributions of $5,027 and $879, respectively.

Reduced employer contributions could be due to various factors, such as changes in employment status or reduced working hours as individuals transition towards retirement.

The high total contributions reflect a comprehensive approach to retirement savings, combining employer, personal, and other contributions to build a robust retirement fund.

Are you increasing personal contributions enough?

An increasing number of people are making additional personal contributions to their superannuation through salary sacrifice, showing they understand the importance of saving more for retirement.

As the table below demonstrates, not only are more individuals making personal contributions as they get older, but the average amount of these contributions is also increasing.

Age group	% of people making personal contribution	Average annual personal contribution
40-44	10%	$9,099
45-49	13%	$11,462
50-54	17%	$15,109
55-59	21%	$23,884

The significant increase in personal contributions, especially through salary sacrifice, highlights a proactive approach to retirement savings. For instance, 21% of individuals aged 55-59 are making personal contributions, with an average contribution of $23,884.

While employer contributions form the bulk of superannuation savings, personal contributions are becoming increasingly important. This shift underscores the importance of individual efforts in securing a comfortable retirement.

Foolish takeaway

The average annual super contributions for individuals by age group highlight a growing focus on retirement savings. Many individuals are now taking proactive steps to bolster their superannuation through personal contributions, which tend to grow with age.

The post What is the average annual superannuation contribution for 45, 50, and 55? appeared first on The Motley Fool Australia.

More reading

• Why Core Lithium, Encounter Resources, Red 5, and Regis Resources shares are storming higher
• Where will Tesla stock be in 5 years?
• ASX 200 energy shares eyeing ACCC gas crunch warning
• Did you buy Westpac shares in FY24? Here’s the recap
• Could Nvidia stock help you become a millionaire?

Motley Fool contributor Kate Lee has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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

Nvidia (NASDAQ: NVDA) has reached record highs over the last year as it has become the poster child for a boom in the artificial intelligence (AI) market. Since the start of 2023, the chipmaker’s stock has skyrocketed 174%, while quarterly revenue and operating income have climbed 93% and 149%. Wall Street has rallied behind Nvidia as it has achieved a majority market share in AI graphics processing units (GPUs) just as demand for the chips has soared.

Uncertainty about how long Nvidia can keep up its bull run weighed on its stock toward the end of June and the start of July when it fell as low as $118 per share after hitting a high of $135 per share just days before. However, its share price rebounded on July 3, rising 4% as the slump proved temporary.

Meanwhile, the company still has plenty to be bullish about. Nvidia has years of dominance in the chip market under its belt, suggesting its role in AI is unlikely to dissipate any time soon. The chipmaker also has new product launches in the works that will likely continue to boost sales and earnings to retain its lead in the retail chip market.

Here’s why Nvidia stock could help you become a millionaire over the long term.

Nvidia has a long history of success in the chip market

Nvidia initially made a name for itself by carving out a dominating role in video games. The company was one of the first to begin selling chips to the consumer market, with gamers using its GPUs to build high-powered gaming PCs. Nvidia’s success in the industry has seen its desktop GPU market share rise from 65% in 2014 to 88% in the first quarter of 2024.

A lead in gaming chips perfectly positioned the company to gain a dominant role in data-center GPUs and, eventually, AI. In fact, according to IoT Analytics, Nvidia is responsible for more than 90% of the data-center GPU market. Many of these data centers have become crucial to the development of the AI market, powering platforms like Amazon Web Services, Microsoft‘s Azure, and OpenAI’s ChatGPT.

Nvidia has managed to retain its dominance in GPUs in different sectors across tech despite the persistence of companies like Advanced Micro Devices and Intel. For instance, while Nvidia has added more than 20 points to its desktop GPU market share over the last decade, AMD’s has actually fallen from 33% to 12%. Meanwhile, Intel briefly had a 4% share in Q1 2023, which has since dwindled to 0%.

The best is yet to come

We’re only about a year into the recent boom in AI, suggesting developers have barely scratched the surface of what’s possible with the generative technology. As the market progresses, chip demand is only likely to continue rising. Meanwhile, Nvidia is leveraging its lead to steer the industry in its favor and challenge its competitors.

In 2024, Nvidia transitioned to a yearly release schedule for new chips when a two-year cycle was previously the market standard. The shift forced AMD and Intel to follow suit. As a result, Nvidia is gearing up to launch its Blackwell line chips, the company’s next generation of AI training processors. CEO Jensen Huang noted at the announcement, “The Blackwell architecture platform will likely be the most successful product in our history and even in the entire computer history.”

A leading reason for Nvidia’s success is the software platform accompanying its AI chips, which it calls its Compute Unified Device Architecture (CUDA). Developers worldwide have grown accustomed to this ecosystem, with switching akin to how a user of Apple‘s iPhone might feel about switching to a Samsung phone. Consequently, Nvidia’s competitors will likely face an uphill battle trying to gain traction in AI.

Data by YCharts.

Moreover, the data in the table above shows the significant financial lead Nvidia has achieved over its competitors. Since last July, Nvidia’s operating income and free cash flow have skyrocketed far higher than AMD or Intel’s, indicating Nvidia is far more capable of continuing to invest in its business and retain its market dominance.

Despite recent growth, Nvidia’s price/earnings-to-growth (PEG) ratio sits at less than one, indicating its stock remains a value. Alongside nearly unrivaled dominance in the budding AI market, Nivida is a screaming buy this July and a stock that could make you a millionaire with the right investment. 

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

The post Could Nvidia stock help you become a millionaire? appeared first on The Motley Fool Australia.

More reading

• Is Nvidia stock going to $144?
• Nvidia’s stock is up 160% in 2024, but is it a bubble waiting to pop?
• Can Nvidia stock cross $1,000 again after the stock split?
• One day, Nvidia stock will go down. Here’s how to keep it from hurting your portfolio
• Where will Nvidia stock be in 10 years?

John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Dani Cook has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Intel and has recommended the following options: long January 2025 $45 calls on Intel, long January 2026 $395 calls on Microsoft, short August 2024 $35 calls on Intel, and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Advanced Micro Devices, Amazon, Apple, Microsoft, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

S&P/ASX 200 Index (ASX: XJO) coal stocks could be set for more outperformance, as a dearth of wind Down Under led to a resurgence in coal-fired power in the June quarter.

While the coal miners are putting in a mixed performance today, they’ve broadly been a tear over the past year.

What kind of a tear?

Well, over the past 12 months, the ASX 200 has gained 11.3%.

Here’s how these ASX 200 coal stocks have performed over this same period (excluding some very juicy dividend payouts):

• New Hope Corp Ltd (ASX: NHC) shares are up 5.4%
• Whitehaven Coal Ltd (ASX: WHC) shares are up 35.5%
• Stanmore Resources Ltd (ASX: SMR) shares are up 59.3%
• Yancoal Australia Ltd (ASX: YAL)* shares are up 54.9%

(*Note: Yancoal is not an ASX 200 coal stock just yet. But with its market cap now at $9.7 billion, compared to $3.5 billion for Stanmore, I expect it will join the benchmark index in an upcoming quarterly rebalance.)

More turbines, less wind power

Despite the construction of more windmills, the June quarter saw a big decline in wind-driven electricity delivered to the Aussie market.

According to UNSW senior research associate Dylan McConnell (courtesy of The Australian Financial Review), wind power generation across the National Electricity Market (NEM) plunged 19.8% over the quarter just past.

But in good news for ASX 200 coal stocks, if not for Australia’s net zero ambitions, coal power went the other way, up 6.5%.

Commenting on the uptick in coal-fired electricity, Global Power Energy’s Geoff Eldridge said:

Coal and gas outputs have generally increased, reflecting a continued reliance on traditional energy sources to maintain grid reliability. Meanwhile, renewable energy sources such as utility wind and utility solar have faced declines due to seasonal challenges.

Independent consultant Matthew Rennie added, “Renewables are neither being built as quickly as we need them to be nor is transmission being constructed as quickly as required.”

What are the experts saying about ASX 200 coal stocks?

With renewable sources lagging in the race to provide reliable baseload power in Australia and much of the developing world continuing to roll out new coal-fired power plants, the demand picture for thermal coal remains solid over the medium term.

ASX 200 coal stocks are also likely to see strong ongoing demand for the higher-quality coking or metallurgical coal they dig from the ground.

In fact, Morgan Stanley lists metallurgical coal as its top commodity pick. According to the AFR, the broker forecasts coking coal prices will hit US$290 per tonne by the end of 2024, up 15% from current levels.

That bullish forecast is based on an expected rebound in demand from India, the world’s most populous nation. However, supply disruptions have also occurred, as several major coal mines — including Anglo American‘s (LSE: AAL) Grosvenor metallurgical coal mine in Queensland — have been shuttered following underground fires.

Morgan Stanley has an overweight rating on Yancoal and Whitehaven shares.

Glenmore Asset Management portfolio manager Robert Gregory is also bullish on the outlook for ASX 200 coal stocks and some of the smaller miners.

According to Gregory:

The really attractive part about all these coal stocks is that even at a reasonably low point in the price cycle, they’re still generating very material profits and paying dividends.

So the set-up is really positive in that when we get a recovery in coal prices, which I think is inevitable at some stage, then they’re poised to produce some very good earnings and hopefully get a re-rating as well.

The post ASX 200 coal stocks in focus as wind power fades to a breeze appeared first on The Motley Fool Australia.

More reading

• Here’s how the ASX 200 market sectors stacked up last week
• Best 5 ASX 200 energy shares for price growth in FY24
• Here are the top 10 ASX 200 shares today
• 3 high-flying ASX 200 stocks leading the charge into FY 2025
• 5 things to watch on the ASX 200 on Friday

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

With the new financial year underway, Australian investors are wondering whether now is the right time to buy ASX shares.

It was a great year for global stock markets, especially in the technology sector, driven by the race to develop artificial intelligence (AI).

Investors can gain exposure to ASX and international shares through two highly diversified exchange-traded funds (ETFs). The first is the iShares Global 100 ETF (ASX: IOO) for exposure to international stocks, and the second is the Vanguard Australian Shares Index ETF (ASX: VAS).

The question remains: Is now the right time to buy, or should you hold off? Here’s what the experts think.

Lazard’s insights: a compass for investors

Lazard Asset Management’s midyear commentary is a gold mine of investment wisdom.

In what is sound advice, chief strategist Richard Temple recommends investors maintain a long-term perspective when buying ASX shares despite potential short-term volatility.

Specifically, Temple highlights the technology sector’s resilience and growth potential, which are driven by large tailwinds from AI.

However, Temple also cautions that the AI industry’s rapid growth may not be sustained without producing strong returns on investment.

In my view, the tech-AI juggernaut can only be sustained if the customers buying these goods and services realise a return on investment.

Put simply, CEOs and CFOs of large companies will not just continue to pour money into AI investments if there is no evidence that the capital deployment is paying off.

Lazard further suggests that, while the U.S. markets might face limited upside due to high valuation levels, international and Australian markets – where IOO and VAS are significant players â€“ could see more robust growth.

Non-US markets are trading on much less demanding valuation multiples and are likely to benefit from accelerating growth while US growth decelerates. Moreover, non-US companies typically are more exposed to floating-rate debt, which should benefit them disproportionately as the ECB and other non-US central banks ease before the Fed.

Performance highlights of ASX and global shares

After a challenging start, the year turned out to be excellent for purchasing ASX shares. This trend was also observed with their global counterparts, especially in the US.

The performance of the IOO and VAS ETFs highlights this. Below, you can see each’s performance, including a brief explanation of each fund’s advantage. (Keep in mind this is not an endorsement for these ETFs, or to buy any ASX shares in them):

1. iShares Global 100 ETF:
   • Diversification: IOO offers exposure to top global companies, ensuring participation in global growth dynamics beyond the Australian market.
   • Tech-Heavy Portfolio: With significant stakes in technology, IOO could be positioned to benefit from tech sector growth, which is especially pertinent as digital transformation accelerates.
2. Vanguard Australian Shares Index ETF:
   • Broad Exposure: VAS tracks the S&P/ASX 300 Index (ASX: XKO), offering a comprehensive slice of the Australian market.
   • FY24 Performance: VAS reported a solid 7.4% capital growth and a 3.9% distribution return, culminating in a total return of 11.3% for the year, excluding franking credits.

Investing in ETFs like IOO and VAS lets you buy ASX shares in one portfolio. For IOO, the tech-heavy focus is a double-edged sword; rapid growth potential exists, but so does volatility in market downturns.

Meanwhile, VAS provides a stable reflection of the Australian economy, which is valuable for those seeking domestic exposure. However, it’s important to note that the ASX indices are heavily weighted to resources/mining and banking.

Lazard’s final thoughts: buy now or wait?

According to Lazard’s market commentary, investors should brace for continued volatility and recognise long-term growth opportunities.

The emphasis is on staying invested rather than trying to buy ASX shares and time the market, a strategy that aligns with the historical performance of ETFs like IOO and VAS. This also avoids tax issues with rapidly buying and selling ASX shares.

Strategist Temple says that the market’s view is “shifting to lower short-term interest rates and reduced earnings on cash” and that many investors are hesitant to buy riskier assets “at or near record-high market levels”.

My view is that the best approach is to allocate capital away from cash to riskier assets while identifying those “risky” assets that are less correlated to the most expensive parts of the global equity market (e.g., tech and AI leaders) and instead invest in areas of the market that have more unrecognised upside going forward.

Buy ASX shares for the long-term

The decision to buy ASX shares now or later ultimately hinges on your risk tolerance, investment horizon, and financial goals. ETFs like IOO and VAS could offer robust pathways to growth, albeit with inherent market risks.

Regardless, considering a long-term investment approach is key if you’re inclined towards long-term gains. As such, Temple says market timing is less important.

Overall, the lesson of history is that owning equities over time is among the best investment options, but it is important to be fully invested through the cycle and to not try to time the markets. In fact, one recent analysis indicated that over the 20 years from 2003 to 2022, investors who missed the 10 strongest up-days in the US equity market forfeited over half of the total return from the entire investment period.

As always, remember your own personal risk tolerances and consult professional advice when necessary.

The post Should I buy ASX shares now or wait? See what Lazard says appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

CSL Ltd (ASX: CSL) shares could be a great option for growth investors right now.

That’s what one leading broker is saying, describing the biotherapeutics giant as representing “healthy growth at a reasonable price.”

What is the broker saying about CSL shares?

According to a note out of Bell Potter, its analysts believe that the relative underperformance of CSL shares since 2020 has created an attractive buying opportunity for investors.

This is because it believes CSL has now broken through its COVID headwinds and is about to enter a period of strong and sustainable growth. It said:

CSL presents an attractive buying opportunity. CSL has been in a holding pattern since 2020, and for good reason. COVID hit the business with higher collection costs for plasma, depressing margins. We anticipate the start of a margin recovery phase for CSL, driving above-market earnings growth over the next few years.

Despite the above, the broker highlights that its shares are still trading on a lower than normal price to earnings (PE) ratio and at a discount to peers Cochlear Ltd (ASX: COH) and Fisher & Paykel Healthcare (ASX: FPH) on growth-adjusted multiples. Bell Potter explains:

CSL trades at a 12-month forward PE of ~28x, representing a discount to its 10-year average of ~31x and a substantial discount to its 5 year average of ~35x. With consensus expecting mid-teen earnings growth over the next few years, CSL trades on a PEG ratio of 1.7x, which looks attractive vs large cap peers COH and FPH that trade on PEG ratios of 3.7x and 2.5x respectively. Given the company’s proven quality and growth prospects, we believe significant upside remains.

More reasons to be positive

Another reason to be positive according to the broker is CSL’s significant investment in research and development (R&D) each year. It sees scope for its R&D to underpin stronger than expected earnings growth. It adds:

CSL’s annual investment of US$1.3 billion to US$1.4 billion in R&D fuels a robust pipeline of new products, solidifying its position as a market leader in innovation. Successful launches of these products can drive earnings growth, which is not fully reflected in consensus.

Finally, Bell Potter also highlights that the company’s margins could be better than many expect in the near future. It feels this could also force consensus earnings upgrades. The broker adds:

We believe CSL has the potential to improve margins faster than anticipated, suggesting the next few years could be marked by earnings upgrades.

In light of the above, Bell Potter thinks that now is the time to snap up CSL shares for the long term.

The post CSL shares: ‘Healthy growth at a reasonable price’ appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL and Cochlear. The Motley Fool Australia has recommended CSL and Cochlear. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

As the S&P/ASX 200 Index (ASX: XJO) drifts almost 1% lower over the last month of trade, one ASX 200 stock is separating itself from the pack in FY25.

HMC Capital Ltd (ASX: HMC), an alternative asset manager traditionally known for its holdings in real estate and finance, has announced a strategic acquisition today.

While the announcement isn’t market-sensitive, it builds on the momentum the ASX 200 stock established in FY24. As discussed in my recent analysis, HMC Capital was one of the top-performing Australian real estate investment trusts (REITs) last financial year.

Here’s a closer look at the upcoming transaction’s details.

ASX 200 stock pivoting to energy

HMC announced on Monday it has committed to an investment of up to $50 million over three years into StorEnergy Pty Ltd, a battery storage company.

The move extends the ASX 200 stock’s recent entry into the renewable energy market. Traditionally, the company – which manages more than $12.5 billion of client assets – has expertise in real estate assets. As such, this is quite the leap sideways.

However, as part of its Energy Transition platform, HMC aims to “assemble a 15GW development portfolio across the energy value chain…”

This includes renewable energies such as wind, solar, battery, and bio-fuels, it says.

According to the ASX 200 stock, StorEnergy develops and operates “utility-scale battery energy storage systems (BESS)”.

It currently holds a 1.4GW development portfolio valued at approximately $2 billion. These projects are reportedly near existing grid infrastructure, which HMC thinks could be an advantage.

The investment includes an initial tranche of an unspecified amount, with additional commitments planned over the next three years depending on various milestones.

Following the investment, the ASX 200 stock will own a majority stake in StorEnergy. It is expected to close by early July 2024.

What did management say?

Looking ahead, HMC says it is preparing a campaign to raise a potential $2 billion for its Energy Transition Platform.

Regarding this current investment, HMC’s head of Energy Transition, Angela Karl, expressed optimism about the partnership with StorEnerg. Karl highlighted synergies and the asset’s “potential to be scaled significantly” as part of HMC’s growth plans.

CEO and managing director David Di Pilla highlighted the strategic significance of the investment, noting:

Our investment in StorEnergy represents an exciting step in the establishment of HMC Capital’s Energy Transition platform, something we have both the ambition and capability to develop into the National Champion for Australia’s decarbonisation.

HMC share price snapshot

HMC has started the new year in the green. The ASX 200 stock is up 0.48% at $7.29 at the time of writing and has lifted more than 50% in the past 12 months.

The post Which ASX 200 stock is breaking into battery tech with $50 million? appeared first on The Motley Fool Australia.

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Motley Fool contributor Zach Bristow has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.