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Some ASX mining shares have suffered significant pain over the last few weeks. L1 Capital, a fund manager, has pointed out to investors why some commodity stocks could be excellent buys today.

It’s common for commodity businesses to experience volatility, as they can experience significant resource price changes. Operational challenges/changes can also lead to the occasional sell-off.

If investors can choose the right businesses at the right price, they could be excellent opportunities. L1 outlined why the below two stocks look oversold.

Mineral Resources Ltd (ASX: MIN)

The fund manager pointed out that the Mineral Resources share price fell 25% during June because of “softness in its key commodity end markets, most notably with lithium spodumene and iron ore prices down 16% and 7%”.

The negative resource price movements more than offset some of the positive operational announcements from the ASX mining share, such as the delivery of the first ore from its Onslow iron project ahead of schedule.

L1 noted the company also announced the sale of a 49% interest in the Onslow haul road for A$1.3 billion. Once this transaction is completed, the investment team believe Mineral Resources will be “well placed to drive future growth and shareholder returns.”

The ASX mining share can’t do much about the weaker lithium price, but L1 pointed out it remains on track to more than double its production over the coming years to more than 1,000kt of spodumene concentrate.

The fund manager finished its positive view of the company with the following:

We continue to believe that all key areas of Mineral Resources’ core business (iron ore, lithium, mining services and gas) have favourable medium-term tailwinds and the shares remain significantly undervalued.

Nexgen Energy (Canada) CDI (ASX: NXG)

The other ASX mining share that L1 provided positive commentary on was this uranium mining business.

The Nexgen share price fell 10% in June because the uranium share price dropped 8% over the month.

L1 believes the uranium market has “positive fundamental supply/demand tailwinds over the medium to long term”.

What is this company actually planning? It’s developing Arrow, the world’s largest undeveloped uranium deposit, in the Saskatchewan region of Canada.

The development of this deposit is significant because it would be a “major, new, strategic Western source to address the anticipated uranium market deficit.”

L1 expects Nextgen will have completed all regulatory requirements over the course of 2024, “providing a clear pathway to full scale construction of the project.”

The fund manager outlined why Nextgen’s future (and valuation) looks so positive:            

Arrow has the potential to generate more than C$2b of cash flow annually, once developed (2028) – a highly attractive proposition given NexGen’s current market cap of ~C$5.2b.

The post 2 ‘highly attractive’ sold-off ASX mining shares to buy appeared first on The Motley Fool Australia.

More reading

• Top 10 most traded ASX shares and US stocks in June
• Is it time to dive back into ASX lithium shares?
• Here’s what the iron ore price will be this time next year: Westpac
• Bell Potter names 3 of the best ASX 200 stocks to buy in July
• Here are the top 10 ASX 200 shares today

Motley Fool contributor Tristan Harrison 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.

Investors that are looking for big returns might want to check out the ASX stocks in this article.

That’s because Bell Potter has just named them as buys and tipped them to rise strongly from current levels. Here’s what the broker is saying about them:

Boss Energy Ltd (ASX: BOE)

If you’re looking for exposure to the booming uranium industry, then Boss Energy could be the ASX stock to buy. Last week, Bell Potter put a buy rating and $5.90 price target on the uranium miner’s shares. This implies potential upside of 45% for investors from current levels.

Bell Potter believes that recent share price weakness has created a buying opportunity for investors. It said:

We continue to see value in BOE given the pull back in the uranium sector. BOE maintains a stable balance sheet with sufficient liquidity to execute the ramp up of Honeymoon whilst progressing growth projects across Honeymoon and Alta Mesa. We continue to see Honeymoon as a low-cost restart operation, which has the capacity to generate strong margins in the current pricing environment.

Coronado Global Resources Inc (ASX: CRN)

The broker also thinks investors should be buying this coal miner’s shares. Ahead of its quarterly update, Bell Potter has put a buy rating and $1.85 price target on its shares. This suggests that upside of 29% is possible for investors over the next 12 months.

It believes Coronado Global is positioned to benefit from supply constraints and industry consolidation. It said:

Throughout 2024, CRN should realise improved production volumes and subsequent cost benefits following the self-funded investment across its Australian and US operations. We expect CRN to generate improved free cash flow and shareholder returns going forward. Our buy recommendation is underpinned by a supply constrained met coal environment, supporting long term prices. We see the potential for CRN to participate in industry consolidation.

Coventry Group Ltd (ASX: CYG)

Bell Potter is a fan of Coventry Group and sees it as an ASX stock to buy.

It is a multi-disciplinary industrial supply and services company that is primarily engaged in the distribution of industrial fasteners and specialist building supplies.

Bell Potter has put a buy rating and $2.00 price target on its shares. This implies potential upside of 38% for investors from current levels. It said:

In our view, transitory cycle challenges should not deter investors from the 30-50% mid-term earnings upside potential we see in the turnaround of Konnect Australia (KAA) and growing track record of delivery by management.

The post These ASX stocks could rise ~30% to 45% appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Do you own the 3 best performing ASX 200 shares of FY 2025?
• 1 ASX 200 coal stock to buy and 1 to hold
• Here are the top 10 ASX 200 shares today
• Why did ASX uranium shares like Boss Energy have such a bumper day?

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.

It has not been an easy time to invest in ASX lithium stocks.

Unless you were shorting them, lithium investors are likely to be nursing sizeable paper losses over the last 12 months.

During this time, lithium stocks such as Arcadium Lithium (ASX: LTM), Core Lithium Ltd (ASX: CXO), IGO Ltd (ASX: IGO), Liontown Resources Ltd (ASX: LTR), and Pilbara Minerals Ltd (ASX: PLS) have all dropped materially.

This has been driven by significant lithium price weakness caused by the oversupply of the white metal, softer than expected demand, and the emergence of low cost lepidolite in China.

Weak lithium prices are squeezing the profits of lithium miners and making some unprofitable. It was for the latter reason that Core Lithium decided to suspend its mining operations indefinitely earlier this year.

But what’s next for lithium prices?

Let’s take a look and see what analysts at Goldman Sachs are forecasting for three widely used lithium types. These are lithium carbonate, lithium spodumene, and lithium hydroxide.

Lithium prices

To begin with, let’s look at what lithium prices were commanding on average during 2023.

• Lithium carbonate – China: US$32,694 per tonne
• Lithium hydroxide – China: US$32,452 per tonne
• Spodumene 6%: US$3,712 per tonne

Now, let’s have a quick look at the current spot prices of these metals compared to what they were commanding back in January. The current prices are as follows:

• Lithium carbonate – China: US$10,934 per tonne (January: US$11,867)
• Lithium hydroxide – China: US$9,563 per tonne (January: US$9,899)
• Spodumene 6%: US$990 per tonne (January: US$1,000)

Lithium forecasts through to 2027

Unfortunately for investors of ASX lithium stocks, Goldman Sachs is not expecting a meaningful improvement in lithium prices in the coming years.

Lithium carbonate – China:

For lithium carbonate, the broker is forecasting the following average price through to 2027 and then for the long term:

• 2024: US$11,683 per tonne
• 2025: US$11,000 per tonne
• 2026: US$13,323 per tonne
• 2027: US$15,646 per tonne
• Long-term: US$15,500 per tonne

Lithium hydroxide – China:

For lithium hydroxide, the broker is forecasting the following:

• 2024: US$11,463 per tonne
• 2025: US$12,500 per tonne
• 2026: US$14,323 per tonne
• 2027: US$16,146 per tonne
• Long-term: US$15,500 per tonne

Spodumene 6%:

Finally, the broker is expecting spodumene prices to remain significantly lower than 2023 averages for the foreseeable future. It has pencilled in the following for the coming years:

• 2024: US$995 per tonne
• 2025: US$800 per tonne
• 2026: US$978 per tonne
• 2027: US$1,155 per tonne
• Long-term: US$1,150 per tonne

Final word

In light of the above, it seems that only ASX lithium stocks with low costs will be in a position to run profitable operations in the coming years.

It is largely for this reason that Goldman has a buy rating and $7.15 price target on IGO’s shares. It recently said:

We reiterate our belief that further Greenbushes expansion remains one of the most economically compelling brownfield lithium projects, where the JV also retains significant optionality around extending/converting the TRP, while the resource likely underpins even further expansion (i.e. CGP5, subject to market conditions).

The post Here’s the lithium price forecast through to 2027 appeared first on The Motley Fool Australia.

More reading

• Why Atturra, Bravura, Core Lithium, and Opthea shares are racing higher today
• Leading brokers name 3 ASX shares to buy today
• Why are Liontown shares roaring higher on Monday?
• Are AGL or Pilbara Minerals shares a better buy?
• Top 10 most traded ASX shares and US stocks in June

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.

ASX rare earths stocks have garnered plenty of attention in recent years as the West continues to secure sources of the critical elements outside of China.

If you’re not familiar, rare earths elements (REEs) are core ingredients across a range of high-tech devices. Those include phones, EVs and military equipment. They’re also used for high-power magnets, which you’ll find in equipment like wind turbines.

While Lynas Rare Earths Ltd (ASX: LYC) gets much of the media coverage in this space, there are some fast-rising stars you might want to consider aside from this S&P/ASX 200 Index (ASX: XJO) rare earths miner.

Namely Brazilian Rare Earths Ltd (ASX: BRE).

And when I say fast-rising star, that’s no hyperbole.

On 24 January, the ASX rare earths share closed the day trading for $1.52. Yesterday, the small-cap miner ended the day trading for $3.13 a share.

That sees the Brazilian Rare Earths share price up 105.9% in less than six months.

Here’s what’s been piquing investor interest.

What’s driving the ASX rare earths stock to the moon?

Brazilian Rare Earths only listed on the ASX on 21 December.

While shares have been up strongly since the listing, the sustained rally kicked off in early February.

That rally was initially spurred by promising assay results from an early diamond drilling program at the ASX rare earths miner’s Monte Alto Rare Earths Project, located in Brazil.

Results from the initial exploratory campaign included wide intervals of high-grade rare earth elements, niobium and scandium mineralisation (+10% TREO) recorded in four holes and ultra-high-grade mineralisation (+20% TREO) recorded in an additional six holes.

 “These exceptional high-grade assay results validate Monte Alto as a world-class rare earth exploration project with some of the highest grades ever reported globally,” Brazilian Rare Earths CEO Bernardo da Veiga said at the time.

On 22 February, investors sold the shares down heavily. But they bounced back over the following days, after the miner reported it had exercised its option to acquire the advanced Sulista Rare Earth Project in Bahia, Brazil. The option saw the miner secure more than 100 square kilometres of highly prospective exploration licences across the southern extension of the Rocha da Rocha Rare Earth Province.

Shares surged again on 25 March on the back of more strong assay results from across the Rocha da Rocha Rare Earth Province. The ASX miner also reported on a new rare earth discovery, the Pelé Project, located 60 kilometres from Monte Alto.

And the good times continued into June.

On 6 June, the Brazilian Rare Earths share price closed up 10.7% after the latest batch of drill results confirmed “ultra-high rare earth grades” at the miner’s Sulista Project.

And the miner is well capitalised to accelerate its exploration and development activities, having completed a $80 million share placement raising on 13 June. The company issued the new shares for $3.30 apiece, 9.6% below the prior trading day’s closing price.

That put that ASX rare earths stock under some selling pressure, with shares still down just more than 13% since the cap raise.

The post Move over Lynas! How this ASX rare earths small-cap surged 106% in just 6 months appeared first on The Motley Fool Australia.

More reading

• These are the 10 most shorted ASX shares
• Down 13% in FY24, is this the year for Lynas shares?
• These are the 10 most shorted ASX shares
• 10 ASX shares to buy in FY25
• 3 high-flying ASX 200 stocks leading the charge into FY 2025

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.

Telstra Group Ltd (ASX: TLS) shares could undoubtedly benefit from the ASX telco share‘s projected profit growth in the coming years.

Telstra announced last week that it would increase the price of its postpaid and prepaid mobile plans by between $2 and $4 per month. The company said network traffic was growing at 20% per year, and it needed to continue to invest to provide “additional capacity to support more data, faster speeds, and a more consistent experience for customers.”

Not only should the price hike help short-term revenue and earnings, but the broker UBS thinks the telco industry could continue to see industry mobile average revenue per user (ARPU) keep rising.

The broker’s research suggests overall consumer churn could remain stable and low and “likely confined to [the] more price-sensitive end of the market”.

UBS thinks investors are “not pricing in the ability for the industry to capture the majority of price rises recently announced, and are expecting a level of down-trading of plans by consumers”.      

Let’s examine the projected profit Telstra will generate in the coming years following the news of these price increases.

FY24 projection

These recently announced price increases won’t be implemented until FY25, but FY24 is benefiting from previous price rises that were linked to inflation.

UBS is projecting in FY24 that Telstra could generate revenue of $23.66 billion, earnings before interest and tax (EBIT) of $3.66 billion and $2.05 billion of net profit after tax (NPAT).

The profit growth is projected to be approximately 6% compared to FY23, and the Telstra dividend per share is forecast to be 18 cents.  

How about FY25?

Earnings growth is expected again in FY25 despite the ongoing investment in its 5G network and other telco infrastructure.

UBS suggests that in FY25, Telstra could generate $24.1 billion of revenue, $3.7 billion of EBIT, and $2.06 billion of NPAT.

If those projections are true, the NPAT would grow by around 1%, and the dividend could rise to 19 cents per share, according to UBS.

And FY26?

Profit is expected to start accelerating in FY26, which is a financial year that could really excite investors.

Owners of Telstra shares could see their business generate $24.7 billion in revenue, $4.47 billion in EBIT, and $2.54 billion in NPAT.

That’d be a jump of almost $500 million in NPAT in dollar terms. In percentage terms, the FY26 net profit is forecast to rise by 23%. This large profit growth could lead to a jump in the dividend per share to 21 cents.

Expectations for FY27

Ongoing double-digit profit growth is expected in FY27, which could be welcome news for Telstra shareholders.

The company could generate $25.4 billion in revenue, $5 billion in EBIT, and $2.87 billion in NPAT, according to UBS.

This could mean a 13% increase in net profit in percentage terms, which could fund a large bump in the dividend per share to 24 cents.

Finally, here’s the FY28 forecast

The last year of this series of projections is also forecast to be a good one for owners of Telstra shares.

UBS predicts that in FY28, the ASX telco share could generate $26.1 billion in revenue, $5.4 billion in EBIT, and $3.18 billion in net profit.

In percentage terms, this could represent a 10.75% year-over-year increase and might help fund a dividend payment of 26 cents per share.

If these projections come true, NPAT could grow by $1.1 billion over the next four years, leading to an 8 cents per share increase in the dividend between FY24 and FY28, which is an exciting prospect for Telstra shareholders.

The post Here is the earnings forecast out to FY28 for Telstra shares appeared first on The Motley Fool Australia.

More reading

• Why analysts rate these ASX dividend shares as buys
• Top brokers name 3 ASX shares to buy next week
• Buy Coles and these ASX 200 dividend stocks in July
• Why I keep buying shares of this 5%-yielding ASX dividend stock
• Telstra stock pays a massive 7% dividend, and now could be a great time to buy

Motley Fool contributor Tristan Harrison 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 Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Bellevue Gold Ltd (ASX: BGL) shares had a tough session on Monday.

The ASX gold stock dropped 5% to close the day at $1.93.

While this is disappointing for shareholders, analysts at Goldman Sachs believe it could be a buying opportunity for the rest of us.

What is the broker saying about this ASX gold stock?

The team at Goldman Sachs notes that Bellevue Gold achieved its production guidance in the second half of FY 2024. Though, it does concede that the gold miner fell a touch short of its estimates. It said:

BGL reported gold production of ~43koz, in line with 2H guidance though slightly below GSe/Visible Alpha Consensus on lower mill rates as the production ramp up stabilises (commercial production declared early May).

The broker also notes that later this month more will be revealed on its production plans for FY 2025. Goldman is expecting a large increase on FY 2024’s total production of 80k ounces. It said:

FY25/multi-year production and cost guidance is set to be released later this month (likely around the site visit on 31st July), with BGL forecasting recoveries to improve as a more consistent stockpile blend grade is maintained (following higher stoping/mine grades in the quarter), where we factor in production/AISC of 192koz/~A$1,515/oz, respectively.

Time to buy

In response to the update, the broker has reaffirmed its buy rating and $2.15 price target on the ASX gold stock. Based on its current share price of $1.93, this implies potential upside of approximately 11.5% for investors over the next 12 months.

Goldman likes the company due to its low cost production expansion opportunity and strong free cash flow generation. It explains:

We rate BGL a Buy, where low cost expansions support production upside. On valuation, while now trading broadly in line with peers at our LT gold price of US$1,800/oz (peer average ~1.1x NAV and ~US$1,900/oz), near-term FCF yields of c. 10% in FY25/26 remain attractive vs. peers (despite ~25% of medium-term gold sales being hedged at ~A$2,700-2,900/oz). We note mine optionality supports further exploration upside, where a 5-year resource extension adds ~A$0.4bn/A$0.5bn (~20%/25%) to our valuation under a 1.2Mtpa and 1.5Mtpa processing scenario, respectively, for which we capture some upside in our nominal value.

All in all, the broker believes this could make Bellevue Gold a good ASX gold stock to buy if you are looking for exposure to this side of the market right now.

The post Goldman Sachs says this ASX gold stock is a buy appeared first on The Motley Fool Australia.

More reading

• Why Aussie Broadband, Bellevue Gold, Lifestyle Communities, and Star shares are falling
• Top 5 investment themes exciting ASX shares investors in FY25
• Goldman Sachs says these ASX gold stocks are buys
• Here are the top 10 ASX 200 shares today
• Top brokers name 3 ASX shares to buy next week

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.

The Global X Fang+ ETF (ASX: FANG) has been a very strong-performing exchange-traded fund (ETF), but I think it still has a lot of return potential from here.

The FANG ETF owns a portfolio of 10 of the largest and most compelling technology and tech-related businesses in the US.

Those ten names are: Tesla, Snowflake, Amazon.com, Apple, Alphabet, Meta Platforms, Microsoft, Netflix, Broadcom and Nvidia.

Collectively, those companies have done very well, and it’s showing for the fund’s returns.

FANG ETF performance

The performance of an ETF is dictated by the returns of the underlying holdings.

This ETF was created in February 2020 and has done well since then. Since its inception, the FANG ETF has returned an average of 32.6% per annum. Over the past three years, it has returned an average of 21.4% per annum. In the last 12 months, it has returned 42%.

Those are very strong returns. But first, we should be very clear that past performance is not a guarantee of future performance or even a reliable indicator of future returns.

When share prices rise rapidly, it could mean that the subsequent shorter-term returns aren’t quite as good because the returns may have been front-loaded.

The annual management fee of the FANG ETF is just 0.35%, so the costs aren’t too much of a detractor.

Why I think good returns can continue

These stocks have been significant drivers of the US share market and the global share market.

Many of them are at the forefront of new products and services, with excellent tailwinds that seem nowhere near finished blowing.

The global digitalisation of business operations is very helpful for the cloud computing operators of Microsoft (Azure), Alphabet (Google Cloud) and Amazon (AWS).  

The growth of online video has been huge for Netflix, and it also benefits Alphabet (YouTube) and some of the other FANG ETF holdings to a lesser extent.

AI has already been a huge growth area for Nvidia, Microsoft, and Alphabet. I think it could be an important earnings driver over the next few years.

Automated cars could be one of the next major growth runways that these businesses unlock. Alphabet’s Waymo is already providing driverless taxi rides, while Tesla is still working on it.

Augmented reality and virtual reality could be another earnings driver for some of these stocks, including Meta Platforms and Apple.

Foolish takeaway

The FANG ETF owns many of the stocks benefiting from global technological changes. While valuations can sometimes get ahead of themselves, these stocks are delivering more and more profit as the years go by, justifying higher share prices.

This fund certainly doesn’t look cheap, but I wouldn’t be surprised if it beats the S&P/ASX 200 Index (ASX: XJO) over the next five years because of the collective earnings growth potential of those US shares.

The post Why I’d still call the FANG+ ETF a buy appeared first on The Motley Fool Australia.

More reading

• These top ASX global shares ETFs delivered stunning returns of 50% to 70% last year
• The 5 best ASX ETFs of FY24 revealed!
• Here’s the outlook for 3 ASX artificial intelligence (AI) shares in FY25
• Why this ASX ETF is one of the best ways to invest in artificial intelligence (AI)

Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to Meta Platforms CEO Mark Zuckerberg, is a member of The Motley Fool’s board of directors. John Mackey, former CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Motley Fool contributor Tristan Harrison 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 Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix, Nvidia, Snowflake, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Broadcom and has recommended the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool Australia has recommended Alphabet, Amazon, Apple, Meta Platforms, Microsoft, Netflix, and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Monday, the S&P/ASX 200 Index (ASX: XJO) continued its charge and reached a new record close. The benchmark index rose 0.75% to 8,017.6 points.

Will the market be able to build on this on Tuesday? Here are five things to watch:

ASX 200 expected to fall

The Australian share market is expected to fall on Tuesday despite a decent start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 16 points or 0.2% lower. On Wall Street, the Dow Jones rose 0.5%, the S&P 500 climbed 0.3%, and the Nasdaq pushed 0.4% higher. All three indices closed at record highs.

Rio Tinto update

Rio Tinto Ltd (ASX: RIO) shares will be on watch on Tuesday when the mining giant releases its second quarter update. Goldman Sachs expects the company to fall short of consensus estimates with its iron ore shipments. It said: “[W]e expect RIO’s 2Q Pilbara iron ore shipments of 79Mt vs Consensus 82Mt as a result of train derailment early in the Q.” However, it thinks Rio Tinto will maintain its full year guidance. It adds: “We think RIO can make up the lost shipments in 2H and we model 330Mt (vs. 332Mt in 2023), in the middle of the 323-338Mt guidance range.”

Oil prices soften

It could be a subdued session for ASX 200 energy shares such as Santos Ltd (ASX: STO) and Karoon Energy Ltd (ASX: KAR) after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.4% to US$81.88 a barrel and the Brent crude oil price is down 0.25% to US$84.81 a barrel. A stronger US dollar weighed on oil prices.

Nanosonics rated as a hold

The Nanosonics Ltd (ASX: NAN) share price is almost fully valued according to analysts at Bell Potter. In response to the infection prevention company’s second half trading update, the broker has retained its hold rating with an improved price target of $3.45. This implies potential upside of 4.2% from current levels. It said: “Pleasing to see volumes rebounding after a difficult period in 1H24 where the market for capital sales in the US hospital system was very tight. We maintain our Hold rating.”

Gold price rises

ASX 200 gold miners Gold Road Resources Ltd (ASX: GOR) and Regis Resources Limited (ASX: RRL) could have a good session on Tuesday after the gold price rose overnight. According to CNBC, the spot gold price is up 0.25% to US$2,426.6 an ounce. Traders were buying gold after the US Federal Reserve indicated that rate cuts could be coming very soon.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• How is the stock market reacting to yesterday’s attack on Trump?
• ASX 200 shatters record. Why it could still be ‘relatively cheap’ to invest
• Leading brokers name 3 ASX shares to buy today
• Why is the Nanosonics share price rocketing 10% today?

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 Nanosonics. The Motley Fool Australia has positions in and has recommended Nanosonics. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Income investors are spoilt for choice when it comes to ASX dividend shares. So much so, it can be hard to decide which ones to buy above others.

But don’t worry, because analysts have been busy doing the hard work for you and have picked out the ones they think are buys.

Two that have been named as buys are listed below. Here’s why they are bullish on them:

SRG Global Ltd (ASX: SRG)

Analysts at Bell Potter think that SRG Global could be a great ASX dividend share to buy.

It is a diversified industrial services group that provides multidisciplinary construction, maintenance, production drilling and geotechnical services.

Bell Potter is positive on the company due to its belief that it will be a beneficiary of accelerating growth in iron ore and gold production volumes over the next five years. It explains:

SRG’s short-to-medium term outlook is reinforced by Government-stimulated construction activity in the Infrastructure and Non-Residential sectors and increased development and sustaining capital expenditures in the Resources industry. The resulting expansion in infrastructure bases across these sectors will likely support increased demand for asset care and maintenance in the medium to long-term. We anticipate Mining Services will be a beneficiary of accelerating growth in iron ore and gold production volumes over the next five years.

In respect to dividends, the broker is forecasting fully franked dividends of 4.7 cents in FY 2024 and then 6.7 cents in FY 2025. Based on its current share price of 88.5 cents, this will mean dividend yields of 5.3% and 7.6%, respectively.

Bell Potter has a buy rating and $1.30 price target on its shares.

Telstra Group Ltd (ASX: TLS)

Analysts at Goldman Sachs think that Telstra could be an ASX dividend share to buy.

It rates the telco giant highly due to the strength of its mobile business. This was reinforced this month when Telstra announced price increases for its mobile plans. It expects this to underpin solid earnings and dividend growth in the coming years. In addition, the broker sees scope to unlock value from asset sales. It said:

We believe the low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive. We also believe that Telstra has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets – which we estimate could be worth between A$22-33bn. Although there is some debate around the strategic benefits, we see a strong rationale for monetizing the recurring NBN payment stream, given its inflation-linked, long duration cash flows could be worth $14.5bn to $17.9bn, with no loss of strategic benefit.

As for income, Goldman is forecasting fully franked dividends of 18 cents per share in FY 2024 and then 19 cents per share in FY 2025. Based on the current Telstra share price of $3.84, this equates to yields of 4.7% and 5%, respectively.

Goldman has a buy rating and $4.30 price target on its shares.

The post Why analysts rate these ASX dividend shares as buys appeared first on The Motley Fool Australia.

More reading

• Top brokers name 3 ASX shares to buy next week
• Buy Coles and these ASX 200 dividend stocks in July
• Why I keep buying shares of this 5%-yielding ASX dividend stock
• Telstra stock pays a massive 7% dividend, and now could be a great time to buy
• Here are the top 10 ASX 200 shares today

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 positions in and has recommended Telstra Group. The Motley Fool Australia has recommended Srg Global. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you want to make some buy and hold investments but aren’t sure which ASX shares to buy, then you could consider exchange traded funds (ETFs) instead.

That’s because they allow you to buy groups of shares with a single click of the button.

Not only does this make it easier for investors that don’t have time to research individual companies, but you can build a diversified portfolio with minimal effort.

But which ASX ETFs could be quality buy and hold options? Let’s take a look at four:

BetaShares Global Cybersecurity ETF (ASX: HACK)

The BetaShares Global Cybersecurity ETF could be a great long term option for investors.

In recent years there have been a number of high-profile cyber incidents. And you can safely say that they won’t be the last. As a result, it is no wonder that worldwide spending on cybersecurity is predicted to increase materially in the future.

This leaves the companies included in this fund, which are the leaders in the industry and working to reduce the impact of cybercrime globally, well-positioned for growth over the next decade and beyond.

BetaShares NASDAQ 100 ETF (ASX: NDQ)

And ASX ETF for investors to consider as a buy and hold investment is the BetaShares NASDAQ 100 ETF.

This hugely popular ETF needs little introduction. It is home to the 100 largest non-financial shares on the famous NASDAQ index. These are many of the largest companies in the world and household names. They provide the phones, search engines, streaming platforms, spreadsheets, and online stores we use every day.

VanEck Vectors Morningstar Wide Moat ETF (ASX: MOAT)

A third ASX ETF that could be a top buy and hold option is the VanEck Vectors Morningstar Wide Moat ETF.

If you aspire to invest like Warren Buffett, then this ETF could be an easy way to replicate his strategy. It holds companies with fair valuations and wide moats (competitive advantages). These are two qualities that Buffett looks for when buying shares.

And given his track record over multiple decades, this focus certainly has its advantages.

Betashares Global Quality Leaders ETF (ASX: QLTY)

A final ETF to look at is the Betashares Global Quality Leaders ETF. It provides investors with access to the world’s highest quality companies.

To make the cut, the companies need to have high return on equity and profitability, low leverage, and earnings stability.

In addition, the 150 high quality companies included in this ASX ETF come from a range of geographies and global sectors, many of which are under-represented in the Australian share market. Betashares’ chief economist, David Bassanese, recently recommended the fund.

The post Buy and hold these ASX ETFs until 2030 appeared first on The Motley Fool Australia.

More reading

• Where to invest $5,000 into ASX ETFs in July
• How I’d aim to build a $75,000 income from ASX shares and never work again!
• Buying shares and 5 other ways investors intend to spend tax cuts: report
• The 5 most popular ASX shares bought by investors
• 5 excellent ASX ETFs to buy this month

Motley Fool contributor James Mickleboro has positions in BetaShares Nasdaq 100 ETF. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has positions in and has recommended BetaShares Global Cybersecurity ETF and BetaShares Nasdaq 100 ETF. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.