Qantas Airways Ltd (ASX: QAN) has captured the attention of ASX investors as its share price has rallied more than 14% this year to date.
It closed the session slightly in the red yesterday at $6.11 apiece, not too far from its 52-week closing high of $6.30 in May.
Brokers are also bullish on the Qantas share price, with the consensus rating it a strong buy, according to CommSec. There are no sell ratings on the stock.
So, what’s driving this excitement? Let’s dive in.
Why is the Qantas share price soaring?
There have been numerous catalysts thrusting the Qantas share price higher in recent weeks. Goldman Sachs placed a buy rating on the airliner in a June note, with a price target of $8.05.
This target suggests a potential upside of over 31% from today’s share price. For context, if you invested $20,000 in Qantas shares today, and the broker’s projections are correct, the investment could grow to around $26,220.
It’s hard to ignore the investor sentiment either. The airliner was valued at $5.08 apiece just 3 months ago.
Experts say that Qantas’ potential earnings growth has improved compared to pre-COVID levels, yet this isn’t reflected in its current valuation.
For instance, Goldman Sachs notes that its FY 2024/2025 profit before tax (PBT) projections are 51% and 61% ahead of pre-COVID levels, respectively. This in itself may be one driver.
But, at the same time, the Qantas share price is also trading at a price-to-earnings (P/E) ratio of 6.7, much lower than the average P/E of 9.1 for its regional and US peers, Goldman says. It is also far lower than the iShares Core S&P/ASX 200 ETF (ASX: IOZ) P/E of 18.4. This ETF tracks the benchmark index.
Despite this 63% discount to the benchmark ETF, its earnings projections for the next two years are far ahead of FY 2019. To me, it remains attractively valued.
This suggests that the market has yet to fully recognise Qantas’ growth potential and might indicate that the share price is undervalued.
Promising future for Qantas
On Wednesday, the company announced it was buying the remaining 49% stake in online travel player TrpADeal.
For the stake, it paid $211 million. It had acquired the other 51% of the business two years ago. The rationale, it says, is to “deepen synergies”. It says the deal could provide up to $50 million in annual cost synergies, whilst expanding the airline’s customer network.
In my view, a positive outlook from management â especially regarding dividends â could further lift the Qantas share price.
The airline has announced an increase in its on-market share buyback by up to $400 million. On top of this, over FY 2025-2027, Goldman expects total capital returns of $1.6 billion, including $1.2 billion in dividends.
If Qantas hits the projected EPS of 96 cents in FY 2025 and the P/E ratio increases to match its peers, the share price could reach above $8 per share in my view.
Given the combination of operational efficiency, strong earnings forecasts, and dividend potential, the Qantas share price looks set for a bright future. Broker estimates support that Qantas shares could end FY 2025 above $8.
Should you invest $1,000 in Qantas Airways Limited right now?
Before you buy Qantas Airways Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Qantas Airways Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
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 positions in and has recommended Goldman Sachs Group. 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.
On Thursday, the S&P/ASX 200 Index (ASX: XJO) was back on form and charged 0.45% higher to 7,749.7 points.
Will the market be able to build on this on Friday and end the week on a high? Here are five things to watch:
ASX 200 to edge lower
The Australian share market looks set to end the week with a small decline despite a decent session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 9 points or 0.1% lower this morning. On Wall Street, the Dow Jones was down 0.2%, but the S&P 500 rose 0.2% and the NASDAQ pushed 0.35% higher.
Oil prices fall
It could be a subdued session for ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) after oil prices fell overnight. According to Bloomberg, the WTI crude oil price is down 0.7% to US$77.96 a barrel and the Brent crude oil price is down 0.55% to US$82.13 a barrel. This may have been driven by profit taking after solid gains this week.
Sell Reece shares
The Reece Ltd (ASX: REH) share price could be overvalued according to analysts at Goldman Sachs. According to a note, the broker has initiated coverage on the plumbing parts company’s shares with a sell rating and $23.35 price target. This implies potential downside of 12% for investors. The broker said: “REH is trading in excess of its historical average premium to the S&P ASX200 (0.6x standard deviations above its 5yr average). Compared to its peer set, REH is also trading above its historic premiums despite lagging the peer set on metrics such as EBIT margins and EBIT growth (note we forecast a 5% EBIT CAGR for REH, in line with Visible Alpha consensus).”
Gold price tumbles
ASX 200 gold shares such as Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a tough finish to the week after the gold price tumbled overnight. According to CNBC, the spot gold price is down 1.5% to US$2,318.8 an ounce. This was despite the release of cooler-than-expected U.S. producer price data. Analysts are attributing the price drop to profit-taking.
Deterra Royalties announces $276 million acquisition
Deterra Royalties Ltd (ASX: DRR) shares will be on watch today after the ASX mining stock announced that Trident Royalties has accepted its 49 pence or 144 million pounds (A$276 million) cash offer. Trident Royalties is a diversified mining royalty company based in the UK. It owns a portfolio of 21 royalties and royalty-like offtake contracts providing exposure to base, precious, bulk and battery metals. This includes lithium, gold, silver, copper, zinc, mineral sands, and iron ore.
Should you invest $1,000 in Beach Energy Limited right now?
Before you buy Beach Energy Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Beach Energy Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
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 positions in and has recommended Goldman Sachs Group. 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.
Although Telix Pharmaceuticals Ltd (ASX: TLX) shares have been on fire over the last 12 months, they have recently pulled back.
For example, since peaking at a record high of $19.06 earlier this month, the radiopharmaceuticals company’s shares have pulled back by approximately 14% to $16.46.
This hasn’t gone unnoticed by analysts at Bell Potter. So much so, the broker believes that investors should be taking advantage of this weakness to snap up the company’s shares.
What is the broker saying about Telix Pharmaceuticals shares?
According to the note, the broker has upgraded the company’s shares to a buy rating with a $19.00 price target.
Based on where Telix Pharmaceuticals shares currently trade, this implies potential upside of 15.5% for investors over the next 12 months.
Bell Potter believes the pullback is related to its plan to raise funds through a Nasdaq IPO, which is currently taking place. But it feels that smart investors will see this as an opportunity to pick up shares before some potentially positive news is released. It said:
Following the launch of the offer in early June, the stock is trading 14% below its recent high ($19.06) which is likely to be at least in part attributable to an overhang from the raise. The pullback represents an opportunity to buy the stock ahead of an exciting period of news flow over the second half of the CY24 which will include potential FDA approvals for Zircaix and Pixclara.
Clinical programs
The broker highlights that the company is making significant progress with its clinical programs and the funds raised from the Nasdaq listing will accelerate this. It commented:
The clinical trial risk associated with the readout of ProstACT Select is now behind the company. Commencement of enrolment in ProstACT Global in the US is expected to commence next quarter and this will be one of several clinical programs in prostate cancer across both therapy and imaging. The company will also move forward with the development of TLX592 (being its alpha emitter).
It also notes that STARLITE II data is expected in the coming months. It adds:
In renal cancer, the company is expected to readout data from STARLITE II in 2H24. Subject to these results, the renal cancer therapy program will become the third therapeutic candidate behind TLX591 (prostate) and TLX101 (Gliioblastoma). As each of these programs begins to readout data in the coming periods, there is a very significant potential for further value accretion. We highlight this potential with a brief summary of recent transactions in the space, noting that the therapies drive these transactions rather than imaging assets.
All in all, Bell Potter appears to believe these are promising times for Telix Pharmaceuticals shares and its shareholders.
Should you invest $1,000 in Telix Pharmaceuticals right now?
Before you buy Telix Pharmaceuticals shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Telix Pharmaceuticals wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
Motley Fool contributor James Mickleboro has positions in Telix Pharmaceuticals. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Telix Pharmaceuticals. The Motley Fool Australia has recommended Telix Pharmaceuticals. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Peter Lynch is renowned for his success as a mutual fund manager at Fidelity Investments and for his straightforward and practical investment philosophy.
Lynch’s approach emphasises thorough research, a long-term perspective, and an understanding of the businesses behind the stocks.
Here are three critical pieces of investment advice from the investing legend that can help investors navigate the complexities of the stock market.
If you like these Peter Lynch principles, don’t forget to check out my recent article about 3 investing mistakes as well.
Water the flowers, cut the weeds
Imagine reviewing your stock portfolio. Undoubtedly, there are stocks that haven’t performed as well as expected when you initially invested in them.
It’s intriguing how human psychology works. We often hold onto our losses more tightly than we celebrate gains elsewhere. This is known as ‘loss aversion’. Sometimes, we add to the losers, hoping that will lower the poor-performing stock’s average purchasing price.
In the contract, Lynch advises you to focus on the winners in your portfolio. In Lynch’s metaphor, flowers represent high-quality companies with solid fundamentals, growth potential, and a competitive edge in their industry. These companies are likely to thrive over the long term and generate significant returns for investors.
After all, it is those handful of stocks with oversized gains that will lift your portfolio’s overall performance, offsetting losses from some underperforming stocks.
Your portfolio could include Pro Medicus Limited (ASX: PME) or Washington H Soul Pattinson & Company Ltd (ASX: SOL). Make sure the winners keep on winning by adding them whenever appropriate share prices become available.
Invest in what you know
I think this must be one of Peter Lynch’s most famous pieces of advice. Lynch recommended investing in companies and industries that you understand. Lynch believes investors can have a significant advantage when investing in familiar industries. By doing this, they can make the most out of their knowledge and expertise gained from day-to-day jobs.
Let’s say you work in the medical imaging industry and notice your company is upgrading its systems to improve operational efficiency. If it happens to be products offered by Pro Medicus, you might be lucky enough to be one of the early investors of this fantastic growth stock.
As an insider of the industry, you would be able to understand the company’s products, market position, and competitive advantages over its competitors. And all of these can be valuable information when assessing your next investment ideas.
Do your homework
Once you find a candidate for your next investment, it is crucial to continue studying this company in depth. Just having an idea is insufficient. Lynch’s investment strategy centres around thorough research.
Lynch believed in digging deep into a company’s financial statements, understanding how it makes money and the quality of management. Another famous investor, Warren Buffett, likes to read everything available about a potential candidate company before making an investment decision.
For example, before investing in a company, Lynch recommended studying its annual reports, quarterly earnings releases, and industry publications. By understanding the company’s financial health, growth prospects, and potential risks, investors can better evaluate whether it aligns with their investment goals and risk tolerance.
Foolish takeaway
Peter Lynch’s timeless advice resonates with both novice and seasoned investors alike.
Investors can build a robust portfolio that stands the test of time by focusing on quality, leveraging their own expertise, and conducting thorough research.
Should you invest $1,000 in Pro Medicus Limited right now?
Before you buy Pro Medicus Limited shares, consider this:
Motley Fool investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Pro Medicus Limited wasn’t one of them.
The online investing service heâs run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
And right now, Scott thinks there are 5 stocks that may be better buys…
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 positions in and has recommended Pro Medicus and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Pro Medicus. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
Anthony Michael Hall has spent most of his life in front of the camera, and he has the stories to prove it.
Some of them are downright enviable. He hung out with comedy legends Chevy Chase and John Candy while filming his first starring role in "National Lampoon's Vacation," became the muse of 1980s auteur John Hughes with "The Breakfast Club" and "Sixteen Candles," and was the youngest "Saturday Night Live" cast member ever after joining the show at 17.
But some of them are less so. Hall's 1986 film "Out of Bounds," his attempt at becoming a dramatic leading man, was a flop. He was part of what's regarded as one of the worst "Saturday Night Live" seasons of all time. Hard-partying forced him to step away from Hollywood.
It's enough stories for a lifetime — and all of that happened by his mid-20s.
Now 56 and with the dreaded transition from teen star to adult actor decades behind him, Hall has added many more memorable roles to his credits: he played Bill Gates in the 1999 TV movie "Pirates of Silicon Valley," popped up in Christopher Nolan's "The Dark Knight," and went toe-to-toe with Michael Myers in "Halloween Kills." Soon, he'll add another to the list: a sleazy politician who gets on Jessica Alba's bad side in the Netflix action movie "Trigger Warning," out June 21.
For the latest interview in Business Insider's "Role Play" series, Hall opens up about his partying days, why he turned down the lead role in Stanley Kubrick's "Full Metal Jacket," and his plan to make a "Succession"-like comedy series with his good friend Robert Downey Jr.
On hitting puberty during reshoots of 'National Lampoon's Vacation' and meeting John Candy
Anthony Michael Hall in "National Lampoon's Vacation."
Warner Bros./National Lampoon's Vacation"
"National Lampoon's Vacation" was your first movie, and the ending was reshot. As a kid, was it strange to do a reshoot?
We did the reshoot for "Vacation" six or nine months later. The funny thing is that puberty had fully kicked in for me. I'm literally seven inches taller. So if you look at the movie closely, you'll see that my hair is darker, and I got taller and skinnier. The first day on set for the reshoot, I see Chevy, and he sees that I have one or two giant pimples, and he goes, "If you're going blind, you're doing it right." He was just messing with me because, seeing how I looked, he guessed I had started masturbating. Chevy was like that.
And the other thing was I learned John Candy was going to be part of the reshoots. I used to watch "SCTV," so I loved him, and one of the sketches he used to do was the Schmenge brothers with Eugene Levy, they were Polish variety show hosts. So I brought that to John's attention, and he said, "We're going to make you an honorary Schmenge, Michael," he would talk to me like his Schmenge character. That's how cool he was. He really was like Uncle Buck.
On doing 10 auditions for 'Sixteen Candles' and casting John Cusack himself
John Cusack, Hall, and Darren Harris in "Sixteen Candles."
Universal
Is it true you did 10 auditions for the Ted role in "Sixteen Candles"?
I think so. It was in that range.
Was John Hughes at all of them?
I believe he was at all of them. As well as Jackie Burch, the casting director. But the thing was that with every successive round of audition, they would add more executives from the studio showing up.
So you would feel good if the room filled up more and more.
Exactly. I felt I was getting closer to landing the job because they kept asking me to come back and do the same scenes, and there would be more and more people.
Do you think you and John clicked through that process, or was it not until filming started?
I think it was actually through the audition. Because I felt like he was rooting for me.
Is it true that you were the one who cast John Cusack for the role of Bryce, one of Ted's geek friends?
Yes. And that was at John Hughes' direction. He literally said that to me one day. He said, "They are going to be your buddies in the movie, so I want you to cast them." I was stunned. I was a 15-year-old kid. I couldn't believe he said that. So I cast John and Darren Harris.
Hall, Ally Sheedy, Judd Nelson, Emilio Estevez, and Molly Ringwald in "The Breakfast Club."
Universal Pictures
By the time "The Breakfast Club" came out, you were one of the biggest teen stars in Hollywood. What was that like for you?
I was excited and stunned. I think when it started to kick in for me was even before that, it was when we had screenings of "Sixteen Candles." I remember John was doing post-production on "Sixteen Candles," and he wanted to show it to me. I went to the Waldorf Astoria with my father to see John, and he showed it to us on VHS in his beautiful penthouse suite. I remember tripping out because I was watching the movie, and I really laughed and thought it was funny. That marks the beginning of when I felt something was starting for me.
By the time "The Breakfast Club" came around, he had called me at home. This is six or eight months later because he did "Sixteen Candles," "The Breakfast Club," and "Weird Science" consecutively. My parents gave me the phone, and he just told me about the movie and my part, and that's how I got involved with that. We would always call each other and talk over the phone, just as friends.
On wild nights out while making 'Weird Science' and starring on 'SNL' simultaneously
Anthony Michael Hall and Ilan Mitchell-Smith in "Weird Science."
Universal
We have to talk about 1984 to 1986 because that is a defining moment in your life and career. You were on "Saturday Night Live" as the youngest cast member ever at 17 years old. You were finishing up "Weird Science," and were looking to do your first dramatic role with "Out of Bounds" after declining to play the lead in Hughes' "Ferris Bueller's Day Off."
You were living in the Chateau Marmont with a giant billboard of "Weird Science" right outside your window. You were flying back to New York weekly for "SNL." And, on either coast, you were partying with the likes of Robert Downey Jr. and Mike Tyson. What the heck was life like for you then?
Dude, it's like you were there the way you just described that! That was startling. No, it was incredible for me. I remember taking a meeting to do "Out of Bounds," and at that point, I felt personally I was riding the crest of these three John Hughes movies, and I was loving it, but part of me wanted to move forward, and that's why I chose that film. It was a chance to step in a new direction after three comedies. And, yes, I was going back and forth to New York to do "SNL" because my deal for the 1985 season was not like the other cast members — I only did like 13 or 14 episodes while everyone else did 20-22. It was a whirlwind.
Anthony Michael Hall in "Out of Bounds."
Columbia Pictures
A whirlwind for sure. Looking back, did you burn both ends of the candle?
It was a lot to deal with, absolutely. And we're talking about the age of 15 to 20. I'd done all those films and "SNL," and truthfully, yeah, those were my partying days. I grew up in Manhattan, so it wasn't something I had to reach for. It was always right there. I certainly had my wild nights. But I feel by the time I was in my mid-20s it shifted because I had to reinvest in my craft and take it seriously and rebuild.
On his biggest career regret and working with Tim Burton on 'Edward Scissorhands'
Matthew Modine was ultimately cast in the lead role, J.T. "Joker" Davis, in "Full Metal Jacket."
Warner Bros.
I have to bring up one more thing from this time span: Stanley Kubrick calls you to play the lead in "Full Metal Jacket."
Oh, shit. Yeah.
Is it true that there was a nine-month negotiating period to determine whether you were going to sign on for the role of Joker?
That's right.
But set the record straight, because you have said different things over the years: Did you walk away because of the money being offered, or was it the character and the amount of time you'd have to dedicate to the role?
Here's the thing: I remember I had to go to Kubrick's lawyer's house, who lived in the Bel Air section of Beverly Hills. I was with my father. He escorted me into his kitchen, and I sat down and read a script that was numbered because Kubrick was extremely private, and I read "Full Metal Jacket." But it was such a long and drawn-out process. At one point, I remember the lawyer calling my father, and Kubrick had a question for my father; he wanted to know if he had read a book called "Nuclear Negotiations," because that's how long these talks were going.
But to answer your question, and it's a good one, I think it was about not just the money but what it represented. He really wasn't giving me a legitimate deal. And because I did my research, I knew that I'd be working for a year on that movie. In fact, I happened to run into Matthew Modine a year and a half later, and I asked him, "How long did you guys shoot?" And he was like, "54 weeks."
So it was about the money. We couldn't come to an agreement on the deal and that's ultimately why I walked away. If I have anything close to a regret in my career, it would be not doing that movie. But I'm not a person who lives with regret, so I feel I grew from that experience. And I wound up having a conversation with him after all that.
With Kubrick?
Yeah. It was really interesting. He basically told me he had a lot of budgetary restraints, and I talked to him about that. Unfortunately, it didn't work out, but I was able to have two conversations with the man: at the beginning, when he offered me the role and he talked about his influences like Chaplin and Russian films, and then at the end. The whole thing was an interesting experience.
Hall and Winona Ryder in "Edward Scissorhands."
20th Century Fox
You took some time off after "Out of Bounds" and reemerged as the bully Jim in Tim Burton's "Edward Scissorhands." Was it a confidence boost for you when that movie became a hit?
It totally was. I remember I got a meeting in New York with Tim. I was super stoked to see him. A modern-day Walt Disney. He was super laid back at the meeting. He was soft-spoken and really chill. And I was in my early 20s by then and had another growth spurt, so I think he loved that coming off the John Hughes movies and people knowing me as the geek from those, he thought it would be interesting to cast me in that Jim role. Basically, to go against type.
We shot in the Tampa area. I'll never forget: I went into his office, and he had all the drawings for "The Nightmare Before Christmas" on the wall. So he was thinking about that even though he was in production on "Scissorhands." And he would come so alive once he was on set. He's so calm and reserved, but on set, a switch flips and he comes to life.
On Christopher Nolan's on-set uniform and developing a 'Succession'-like TV series with Robert Downey Jr.
(L-R) Roberty Downey Jr. and Anthony Michael Hall.
Eric Charbonneau/WireImage/Getty
You have worked with many greats. How do you compare Christopher Nolan when you worked with him on "The Dark Night"?
He's up there. Hughes. Burton. Nolan, I love, too. With the scale and the scope of the movie, I always just went with what was on the page; I never tried to improvise. I remember on set, he always wore the same thing: jeans, a vest, and a lengthy jacket. He looked like a conductor. He had a uniform, it seemed. He was kind of like a pied piper because, with every shot, there would be a trail of four or five people behind him.
I heard you and Robert Downey Jr. developing something together.
We are. I can tell you that we are in development; it's been years. We wrote a TV series together, we're calling it "Singularity," and it's based on an idea Downey had. It's taken a while because, at a certain point, we had to change things because it wound up being too similar to "Succession." What I mean by that is I would have played one of three sons, and the father was this tycoon industrialist. It's more of a comedic tone than "Succession," but it mirrored it too much, so we had to change things. Downey and I actually had a Zoom session the other day with a top producer who will hopefully come on board.
Would Downey be on camera alongside you?
He is willing to do that. He might direct the pilot and some other episodes along with being in it.
Would you direct some episodes?
I would love to. This is really Downey's idea, so he's committed to being a part of it.
You've had so many different eras of your career. Is there anything else you still want to try?
Writer-director. I've written something that I really want to make. I would star and direct it. It has been a passion and desire for me to do that for many years now. It's the next evolution in my career, being behind the camera.
This interview has been edited and condensed for clarity.
New research suggests that it's not just the ingredients in processed food but how they're prepared that can make them unhealthy. Simple, healthy swaps can reduce health risks.
Elena Noviello/Getty Images
A researcher who studies processed foods said the work prompted him to make his own diet healthier.
He cut back on certain foods after finding a link to health risks.
Instead, he aims for whole foods, high fiber snacks, and meals with recognizable ingredients.
Once, chicken nuggets were a convenient, popular dinner option for Dr. W. Taylor Kimberly and his family.
But after studying ultra-processed foods in more detail, and seeing how they affect the brain, he's switched to grilled chicken instead.
Kimberly, a professor of neurology at Harvard Medical School and a neurologist at Massachusetts General Hospital, is the senior author of a new study linking ultra-processed foods to health risks like dementia and stroke.
"Since we began this study, I've paid more attention to what I eat," he told Business Insider. "But I'll be honest, there are many I enjoy, and I haven't eliminated them all."
While it's not news that ultra-processed foods are linked to poor health, the latest study helps us understand not just which foods might be healthy or unhealthy but how to make small, healthy changes without cutting them out entirely.
"Ultra-processed foods are such a big part of our diet. They're convenient and easy. There hasn't been as much work on thinking about not just the type of food but also how it's processed," he said.
The findings, published June 11 in the journal Neurology, are a step closer to helping scientists understand why processed food might be bad for our health. The study was observational, which means it can't directly tell us if processed food caused the health risks.
But it does offer hints at simple ways to make healthier choices, according to Kimberly, who offered tips on picking more nutritious snacks and how much processed food you should aim to cut back on.
Swapping out as little as two servings of processed food a week can help
When Kimberly and his team embarked on their study, their goal was to come up with some actionable advice for people. Is it possible to slightly reduce processed foods — without eliminating them entirely — and meaningfully improve your health?
Their research suggested you can.
Their study found that a 10% increase in processed food consumption was linked to a higher risk of cognitive impairment.
That's the equivalent of about two meals per week. The research team based their analysis on that amount because it felt like a realistic amount for people to reduce, and an easy goal to remember.
"The answer we came up with is that we move the needle, and we can take a lot of optimism from that," Kimberly said.
"Diet is really hard to change. There are many reasons we eat what we eat, such as time, convenience, and budget. All of these things impact the dietary choices we make," he said.
Choose whole foods high-fiber options like nuts and seeds
Years of research tell us that processed foods are harmful in part because they're often lacking in fiber and protein, as well as vitamins and minerals. They also introduce unhealthy ingredients into your diet, such as added oil, sugar, salt, and preservatives.
That means you can't offset the consequences of a junk food diet by popping some multivitamins or gulping a green juice afterward.
"If you're not eating a healthy meal, you're also eating an unhealthy meal, so the evidence suggests you can't just add a supplement. It's both sides that are important when thinking about brain health," Kimberly said.
The good news is that replacing highly processed foods with healthier alternatives can give you double the benefits because you're adding nutrients and cutting out potentially harmful additives at the same time.
For example, swapping French fries for baked sweet potatoes helps to reduce salt and oil in your diet but also brings in more vitamins and minerals.
Kimberly's research has inspired him to snack on nuts or carrots instead of cookies or crackers — cutting his sugar intake and quickly increasing the amount of fiber in his diet.
"We're not just feeding ourselves when we eat. We're feeding a really complicated ecosystem in the gut that helps metabolize what we eat," Kimberly said.
Aim for ingredients you recognize
You don't have to give up processed foods completely to improve your health. When you're reaching for something cheap and convenient, it can help to choose healthier processed food options that have recognizable ingredients, according to Kimberly.
"If you look at it and think, that could be made in my kitchen, that's a good indicator," he said.
In the long run, it can be more helpful to make a few small swaps you can stick to than trying (and failing) to swear off processed foods forever.
"In a perfect world, we would all eat unprocessed foods, but that's not reality," Kimberly said. "It's not a sprint. Short, big changes aren't the goal. Even modest changes, if they're sustainable, can matter."
Hannah Dodd as Francesca Bridgerton on season three of "Bridgerton."
Netflix
Fans are praising "Bridgerton" for including a character who is deaf and another who uses a wheelchair.
Some think that Francesca Bridgerton and her love interest, John Stirling, are "autistic-coded."
Francesca and John are depicted as introverted, shy, and musically inclined.
Warning: Spoilers ahead for "Bridgerton" season three.
Season three of "Bridgerton" is all about Penelope Featherington (Nicola Coughlan) and Colin Bridgerton's (Luke Newton) friends-to-lovers romance, but another member of the titular family is standing out among fans.
Francesa Bridgerton, played by Hannah Dodd, has much more screen time this season as she makes her debut in society and joins the marriage market.
Since season three, part one was released on Thursday, fans of the Regency-era drama have gravitated toward the character, with many saying that she seems "autistic-coded."
Here's how season three handles characters with disabilities, why fans have interpreted Francesca as autistic, and what Dodd and showrunner Jess Brownell have said about her characterization.
Fans are lauding season 3 for its representation of people with disabilities
Zak Ford-Williams as Lord Remington on season three of "Bridgerton."
Netflix
During the season three premiere, Dolores Stowell (Kitty Devlin) is one of the young women who makes her debut in society and is presented to Queen Charlotte (Golda Rosheuvel). After bowing to the unimpressed queen and walking away, Dolores uses British Sign Language to tell her mom, Lady Stowell (Sophie Woolley, who is deaf), that she thinks the royal hates her. In response, her mom signs back, "Impossible. You were perfect."
Another character with a disability appears when Penelope tries to talk to potential suitors at a ball in episode two after receiving lessons in charm from Colin.
One of the men she speaks with is Lord Remington (Zak Ford-Williams), who uses a wheelchair. Penelope and Lord Remington immediately get along after he admits that he enjoys gossip and is a big fan of Lady Whistledown — completely unaware that he's talking to the gossip columnist herself. Lord Remington is seen again during episode three, at the hot-air balloon presentation.
Both characters resonated with fans on X (formerly known as Twitter) and people praised the show for not marginalizing them.
I like how Season 3 has a person in a wheelchair and a deaf person but they didn't make the characters out to be oddities of society. Just regular members of the ton. Well done Shonda. Well done.#bridgerton
Today is Global Accessibility Awareness day and @bridgerton season 3 premier day. Very cool to see Deaf and Wheelchair User representation. Pretty cool stuff if you ask me. #BRIDGERTON
I see the effort to include inclusivity and diversity in this Bridgerton season. The Lord In the wheelchair, the debutante and her mother with the sign language, the increased number of people of color playing major roles. Not bad, really.
Some people also think that Francesa shares similar qualities as autistic and neurodivergent people
Hannah Dodd as Francesca Bridgerton and Ruth Gemmell as Lady Violet Bridgerton on season three of "Bridgerton."
Netflix
Francesa, the sixth-born Bridgerton, is far more introverted and introspective than her siblings. She's less interested in entertaining potential suitors and would much rather play the pianoforte or read a book.
In their encounters, Francesca and John enjoy each other's company without exchanging many words, much to the bewilderment of her family.
Then during episode four, they have a slightly awkward conversation in town, in which Francesca criticizes a nearby violinist's performance because she feels the pace of the song is "too fickle" to be enjoyable. John seems impressed by her but runs off and later apologizes to Francesca at the queen's ball. He explains that he's not much of a talker, but he believes in the power of a gesture and gives her sheet music that has been rearranged exactly as she imagined it.
After watching season three, part one, fans on X and Reddit said that Francesca and John both appear to have signs of autism.
"Can we just talk about the disability representation in #BridgertonS3 for a minute? Not only is there a deaf actress using BSL to communicate on-screen, there's also an eligible suitor in a wheelchair. Not to mention the fact that Fran & John are autistic coded AF," one fan wrote.
Francesca and Lord Stirling are so autistic coded and I love every moment of their interactions
I am absolutely loving #Bridgerton s3 which feels like it’s had a glow up in every sense. The clothes! The makeup! The acting! The script! And above all, the disability rep, both visible and invisible. Francesca is clearly autistic and I love to see it. pic.twitter.com/GMOy0tcFRs
Thinking how John and Francesca are so autistic and ADHD coded. That scene between Fran and John where she tells him her thoughts on a musical piece and John quickly marches away as he looks at the player and later on we find out why he did that and I'm like…baby boy 🥹
No one call tell me differently. Francesca Bridgerton is autistic. Like she is introverted, hates big events and meeting new people. Also she is obsessed with music. That’s all signs leading to be autistic #bridgertonpic.twitter.com/5JBL5xx1h5
I'm sorry you're telling me that Francesca's love interest RAN AWAY mid conversation on the street so he could re-compose music she heard and made comments on and give it to her as a gift??? And she left a ball early to play it???
"I really enjoy her character in part 1 and I find myself relating to many of her mannerisms. Which leads me to the question if anyone else thought that she has the television 'traits' of autism. I don't mind it for representation, but just wondering if I'm reading too deep into her mannerisms," one Reddit user wrote.
While not everyone thought Francesca was necessarily autistic, some just appreciated her as a relatable introvert.
"I found her very relatable. I don't know if I'm on the spectrum, but there are a few traits that overlap for me. She seems very much like an introverted person who hates loud noises and too much sensory stimulation," said one person in response.
Francesca isn't explicitly stated as being on the autism spectrum in Julia Quinn's 'Bridgerton' novels or on the TV series
Hannah Dodd as Francesca Bridgerton on season three, episode two of "Bridgerton."
Liam Daniel/Netflix
Many people, especially women and gender-nonconforming people, are misdiagnosed or don't find out they're autistic until their 30s or later. Some of the more subtle signs, according to a psychologist, include feeling misunderstood by others in social situations, having difficulty maintaining conversations, and getting overstimulated.
It's unclear if Francesca is intended to be autistic. (Business Insider reached out to Netflix representatives for "Bridgerton" regarding how the character has been received by some fans, but did not receive an immediate response.)
But showrunner Jess Brownell has said that Francesa is different from her family in that she "doesn't always say what she's feeling like the rest of the Bridgertons."
"So we were always looking for little ways to clue people in on the fact that there's a lot more going on than meets the eye," Brownell told Netflix's editorial site, Tudum. "She has a very rich internal world."
Dodd shared similar comments about Francesca's disposition in the production notes for season three.
"She is slightly more shy but, as with a lot of introverts, she's grown up around these people, so she is quite comfortable and knows her place within the family," the actor said of the difference between Francesca and her siblings. "I've tried to play her so there's a difference when she's going out into society and meeting new people, and how that makes her go into her shell a bit."
"She's still quieter than her other siblings, but she is comfortable with them, she knows them, they know her, and she slots in," Dodd added. "She still has this kind of sarcastic humor that they all have, and a banter. But she's more observant."
Quinn and 'Bridgerton' showrunner Jess Brownell reacted to fans calling Francesca 'autistic-coded'
Hannah Dodd as Francesca Bridgerton and Claudia Jessie as Eloise Bridgerton in the season three finale of "Bridgerton."
Netflix
Upon the release of season three, part two, Quinn weighed in. "I didn't specifically write Francesca to be neurodivergent, but nor did I write her to simply be shy," Quinn wrote on her Facebook page. "I've always seen her as someone who loves her big, boisterous family but often needs space. They're simply sometimes… too much."
She said seeing autistic fans' reactions to Francesca "brings me — and everyone involved with the show — tremendous joy." "With every season, more and more people are able to see themselves in Bridgerton, and this is truly a beautiful thing."
Meanwhile, Brownell told the Los Angeles Times that the writing team didn't intend for Francesca to be neurodivergent.
"I thought that the conversation around neurodivergence was really interesting and it was actually something we talked about in the room, but we didn't necessarily set out to write a neurodivergent character with Francesca," she said. "As we were adapting her from the book, many of us thought maybe she is neurodivergent because she does share certain characteristics, and it's just been beautiful to see people relating to that."
In giving Polin a happy ending, "Bridgerton" also heavily teased that Benedict, the second-eldest sibling, will get the main character treatment next season.
Here's everything we know about season four, so far.
Benedict's love story will probably be the focus of season 4
Luke Thompson as Benedict Bridgerton on season three, episode one of "Bridgerton."
Liam Daniel/Netflix
An official announcement about the season four lead hasn't been made yet, but all the signs point to Benedict (Luke Thompson).
"Do you think Mama would ever let me miss her Masquerade Ball?" she says.
Benedict, still not ready to settle down, replies: "I will be there, hiding out behind a mask, avoiding eligible ladies like the plague."
That not-so-subtle moment was a nod to Benedict's novel "An Offer From a Gentleman," which is part of Julia Quinn's "Bridgerton" book series.
In the third, "Cinderella"-inspired book, Benedict meets a woman named Sophie Beckett at a masquerade ball. Unbeknownst to him, Sophie is a servant to a rude stepmother named Araminta Gunningworth. By the end of the book, they express their love for each other and get married.
Brownell told Deadline that Benedict will continue "exploring his fluidity," but played coy about when he might meet his future wife.
"As far as Sophie, I can't say quite yet when she's popping up, but will be announcing more soon," she said.
Luke Newton and Nicola Coughlan will reprise their roles as Colin and Penelope Bridgerton in season 4
Luke Newton and Nicola Coughlan on season three of "Bridgerton."
Liam Daniel/Netflix
Coughlan told TheWrap that she and Newton will return on season four, but they "don't know anything about it." Meanwhile, showrunner Jess Brownell told the publication that she'd like the pair to continue on the show beyond season four.
"We will definitely hope to bring them back in future seasons because I think there's more story there," she said.
Brownell elaborated in an interview with Entertainment Weekly, saying that Polin will shift to being part of the larger ensemble.
"I do think that there is a bit more to tell story-wise with Whistledown," she said. "Whistledown has been the narrative glue of every season. Now that Penelope's out publicly as Whistledown, I want to see more of what that's like. So, we will continue with them next season for sure."
Newton similarly told Teen Vogue that he's committed to being on the show indefinitely.
"I feel very invested in the show… like I said before, I just love the people," he said. "I love my job. I love my role in the show, so I can't see myself going anywhere. I just want to finish the stories off. I would say there's still stuff to get sorted in season four, so yeah, that's why I'm there."
Kanthony may also return
Simone Ashley as Kate and Jonathan Bailey as Anthony on season three, episode seven of "Bridgerton."
Netflix
Kanthony fans have been wondering how long Kate (Simone Ashley) and Anthony Bridgerton (Jonathan Bailey) will stay on the show after leading season two.
Previous season leads have largely stepped away after their story arc was done, but Anthony and Kate are the new heads of the Bridgerton household, which means they have to stick around.
In season three, Anthony and Kate show up in four episodes, often disappearing on trips around the world. The show writers likely did this to explain the characters' disappearance so Ashley and Bailey could film other projects.
In season three, episode seven, Anthony and Kate leave for a trip to India so Kate can visit her home and give birth to their first child. Though this looks like a convenient way to write the couple off the show, that may not be the case.
Ashley told reporter Josh Rom during a "Bridgerton" season three screening premiere on Wednesday that she will return for season four.
Brownell, for her part, said that she hopes to see more of Kanthony on the show.
"We love them so much, and they're both so incredibly talented and we want to support their ability to do other projects, while still leaving the door open for them to return when and if they're able," she told Entertainment Weekly. "So the India send-off is a plot device in certain ways that allows us to leave the door open."
This isn't the last we've seen of Cressida Cowper
Jessica Madsen as Cressida Cowper in season three, episode seven of "Bridgerton."
Liam Daniel/Netflix
Season three of "Bridgerton" gives more insight into Cressida's (Jessica Madsen) difficult home life and the lengths she'll go to in order to get out of her situation.
During the season, she attempts to take credit for Lady Whistledown so she can receive the reward money and avoid marrying an older man, but the plan backfires. Then, when she learns that Penelope is Lady Whistledown, she attempts to blackmail her with the intention of using the money to escape town and avoid being sent off to live with her aunt in Wales.
But Cressida is outsmarted and is last seen being sent away in a carriage to live with her relative after tarnishing the Cowper family's reputation.
"It felt a little early in this season for her to get a happily ever after just because we've watched two seasons of her being a real bully to Penelope. She has a little bit more growth to do, but I do want to give her a happy ending eventually," she told EW.
"We want to see more from Jessica Madsen," Brownell told THR. "So we wanted to leave her story a little bit more open-ended so that we can craft an ending for her in future seasons."
'Bridgerton' season 4 won't come out until 2026
Martins Imhangbe as Will Mondrich and Luke Thompson as Benedict Bridgerton on season three, episode two of "Bridgerton."
Liam Daniel/Netflix
On Wednesday, "Bridgerton" showrunner Jess Brownell told The Hollywood Reporter that fans must wait two years for the next season.
"We are working to try and put the seasons out more quickly, but they do take eight months to film and then they have to be edited, and then they have to be dubbed into every language," Brownell said. "And the writing takes a very long time as well, so we're kind of on a two-year pace, we're trying to speed up but somewhere in that range."
Brownell added that the writers are nearly done with the season four scripts.
"I feel like it's some of my best work and my writers room's best work," Brownell said. "We've just really gelled our collaboration, and we're firing on all cylinders, so I can't wait for fans to see what we have."
In a season three finale post-mortem interview with Business Insider, Lady Danbury actor Adjoa Andoh said that filming for the new season is set to begin "sometime in the autumn."
Brownell confirmed this in an interview with the LA Times and said that they're filming in the fall partly for storytelling purposes but also out of practicality.
"It's still going to be just as lush and colorful, but just more in those warm fall colors instead of the pastels," she said. "There will still be some pastels, so it won't look like a totally different show."
This means that season four is likely to premiere at some point in 2026, but there's no confirmed release date yet.
All episodes of season three of "Bridgerton" are now streaming on Netflix.
Benedict's bisexuality isn't coming from the void. The show has long been building a queer storyline for him, and this is the moment that's finally coalesced.
"Benedict's fluidity is something we've been talking about from Season 1, which is why I think viewers have picked up on it," showrunner Jess Brownell told the Los Angeles Times. "We wanted to do that storyline justice, and it felt like season three was a good place to do that to make sense of some of the threads we've seen with him before."
Lucas Aurelio and Luke Thompson as Paul Suarez and Benedict Bridgerton in season three of "Bridgerton."
Liam Daniel/Netflix
'Bridgerton' has been hinting at Benedict's queerness for a while
Before season three, Benedict Bridgerton had yet to kiss another man. But in season one, he encountered the possibility for seemingly the first time through his friendship with the artist Henry Granville. Granville strikes up a friendship with Benedict, inviting him along to art parties. At one of them, Benedict walks in on Granville having sex with another man.
When Benedict later confronts him about it and inquires about his marriage to a woman, Granville tells him that it's a necessary arrangement. His marriage allows his wife to pursue a life of her own while providing him with the cover to pursue his lover, Lord Wetherby, in secret.
"We live under constant threat of danger, Bridgerton. I risk my life every day for love," Granville tells Benedict. "You have no idea what it is like to be in a room with someone you cannot live without and yet still feel as though you are oceans apart."
Unlike his siblings, Benedict hasn't pursued many serious relationships on the show, even though we haven't yet hit his season as a romantic lead. And he's not ready to do so yet! Especially after opening up a new avenue of sexual exploration.
'Bridgerton' confirms that Benedict is bisexual through a threesome
In season three, Benedict's relationship with the widow Lady Tilley Arnold culminates in an invitation to join her and her friend Paul Suarez for dinner. Benedict and Paul flirt a bit on the terrace before Benedict encounters Tilley and Paul kissing. Paul then invites Benedict upstairs, causing him to panic and leave the house in a rush.
But fear not: After a conversation with Eloise at Colin and Penelope's wedding breakfast, Benedict decides to return to Lady Tilley's home. When Tilley and Paul return, he takes them up on their offer by kissing them both.
It might seem a little cliché or stereotypical to cement Benedict's bisexuality through a threesome. But the decision doesn't feel particularly wanton within the context of the show.
For one, Benedict is hardly the first Bridgerton brother to have a threesome on the show (this isn't even his first!). Furthermore, this man has clearly had some unfulfilled desires and curiosities that have been building since season one. We'll even pardon him for his corny remark in bed about loving a "party of three."
Luke Thompson and Hannah New as Benedict Bridgerton and Lady Tilley Arnold in season three of "Bridgerton."
Liam Daniel/Netflix
Ultimately, Benedict isn't ready to settle down when Lady Tilley confesses that she's developed romantic feelings for him. Their encounter with Paul, as well as their own casual sexual relationship, has made him realize how much he enjoys being "free."
It remains to be seen how "Bridgerton" will handle Benedict's story, though the writers appear to have set him up to be the romantic lead in season four. In the books, he falls in love with a woman named Sophie at his mother's masquerade ball, though he doesn't learn her identity that night. Eventually, they marry, but it doesn't seem likely that "Bridgerton" will allow his queerness to fall entirely into the background.
Regardless of what the future holds, let's celebrate this moment — a very bisexual "Bridgerton" season finale that, through both Benedict and Francesca, has set the show to foreground a queer romance in the future.
In the competitive world of retail, strategic financial management is key to maintaining a strong market position.
Coles Group Ltd (ASX: COL), one of Australia’s leading supermarket chains, has navigated this landscape with operational strategies and financial manoeuvres.
However, in today’s financial landscape, characterised by rising interest rates, the importance of thorough balance sheet analysis has never been greater. Investors are increasingly focusing on the debt levels of companies to assess their financial health and long-term viability. This is because high interest rates can significantly impact a company’s cost of borrowing, cash flow, and overall financial stability.
With this background, I delve into Coles’ financial health, examine its debt profile, and explore the potential implications in this article.
Debt-to-equity ratio
The debt-to-equity ratio is a way to see how much a company is borrowing compared to how much it owns. Think of it like this:
Debt is money the company has borrowed and needs to pay back.
Equity is money that the company’s owners have put into the business.
The debt-to-equity ratio compares these two amounts. It shows how much debt the company has for every dollar of equity.
As at 31 December 2023, Coles has a total debt of $9.4 billion, including lease liabilities of $7.7 billion. Adjusting for its cash and short-term investment balance of $1.1 billion, its net debt reduces to $8.3 billion. The retailer managed to reduce its net debt levels gradually over time, from $9.4 billion in June 2020 to $7.7 billion in December 2023.
Net debt excluding lease liabilities was $1.2 billion, up $133 million from June 2023 due to increased capital expenditures.
During this period, Coles’ equity has risen from $2.6 billion to $3.5 billion, indicating its debt-to-equity ratios have improved from 3.6x to 2.4x. In other words, Coles has $2.4 of debt for every $1 of equity.
This is higher than what I would like to see from a retailer, but it is optimistic that this ratio is improving. This is also slightly better than its rival Woolworths Group Ltd (ASX: WOW) at 2.8x based on its December 2023 financials.
Is Coles making sufficient profits to cover interest payments?
Another important metric to measure a company’s financial health is the interest coverage ratio. It is a measure of how easily a company can pay the interest on its debts using its operating income.
For the last 12 months to December 2023, Coles generated an operating income of $1.7 billion. In fact, its operating profits have stayed consistently between $1.6 billion and $1.8 billion over the last four years.
From the operating profits, Coles spent $397 million on net financing costs during the same period. This expense has reduced from $431 million in FY20 as its improved debt levels offset the impact of interest rate increases.
These two figures give us an interest coverage ratio of 4.4x, indicating its current income is sufficient to cover interest expenses.
On the cash flow side, which can be different from the income statement, Coles makes an operating cash flow of $2.7 billion a year, which has been consistently moving between $2.7 billion and $2.8 billion since FY21. This is sufficient to cover its increased needs for capital expenditure (capex) of $1.7 billion and lease obligations of approximately $900 million a year.
Foolish takeaway
In this article, we reviewed a few important metrics to assess the financial health of Coles’ balance sheet.
While its debt-to-equity ratio appears to be high, the company generates sufficient income to cover debt servicing expenses for now, in my opinion.
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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 positions in and has recommended Coles Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.