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Earlier this week, we discussed the US shares that ASX investors have been buying the most heavily over the past few months.

Some familiar names were on that list, including Apple, NVIDIA, Tesla and Amazon. But there were also a couple of surprises, such as Chinese e-commerce giant Alibaba and ‘meme-stock’ posterchild GameStop.

But what we didn’t delve too deep into at the time was just how lucrative investing in US shares has been for ASX investors.

Almost every big name on the US market has had a stunning 2024 to date.

Take Apple. Apple stock has risen by a lucrative 25.5% year to date so far.

Tesla’s 2024 gains have been slightly more muted at around 6%. But saying that, the electric vehicle and battery manufacturer is still up more than 80% since late April.

Amazon stock, on the other hand, has rocketed more than 33% since the start of the year. And Nvidia, the undisputed golden child of the American markets right now, has exploded 180% higher since the beginning of January.

So it’s no wonder ASX investors have been trying to get a slice of this lucrative action.

But with portfolio-altering gains like the ones we’ve just discussed now under the belt, is it still a good idea to buy US shares today? After all, these gains are highly unusual over such a short time span, even by the high standards of the US tech giants.

Is it too late to start buying US shares like Nvidia?

Well, one ASX expert reckons ASX investors should stick the course. That expert is Tom Stevenson, investment director at fund manager Fidelity, and he is arguing that “It has rarely been sensible to bet against Uncle Sam”.

Sure, the United States is looking at a fairly tumultuous back half of 2024. There’s the November Presidential Elections, of course. But the US economy is also dealing with similar concerns over inflation and interest rates as we are. The level of economic uncertainty is high ‘Stateside’, and that often causes uncertainty on the share market.

Indeed, Stevenson acknowledges that the stunning stock market performance we have seen this year so far is rare, as we haven’t seen a major American market pullback since “last autumn”. He noted that, “There has only been a handful of periods in the past 30 years when we have gone this long without such a pullback in markets”.

Even so, Stevenson tells investors that “this is not by itself a reason to worry”, and goes so far as to state that “to a large extent this has been justified by economic and corporate fundamentals”.

For starters, he points out that:

strong first half years often set investors up for a rewarding second half too. Since the beginning of the 20th century shares have only fallen seven times in the second six months after a strong opening to the year. The last time this happened was nearly 40 years ago. The second half return after a strong first half is higher than the average for all years too.

American exceptionalism

But Stevenson also points out that the strong share market performance of the American markets has been “justified by stronger corporate earning growth”:

Since the financial crisis American shares have consistently outperformed those in the rest of the world but so too has the profitability of American companies. American market exceptionalism has been a reflection of exceptional American growth.

Indeed, America’s exposure to the ‘growth’ investment style has been a massive boon to US investors. The period from 2009 to the start of the monetary policy tightening cycle in 2022 represented the longest unbroken outperformance of growth over value in the past 50 years. Wall Street has more exposure to the world’s fastest-growing sectors and companies and less exposure to its laggards.

Stevenson isn’t arguing that there aren’t risks with investing in US shares today. He points to the current high valuations of US stocks and the concentration of the American indexes, thanks to the massive sizes of tech giants like Nvidia and Apple, as potential trip hazards for investors.

But even so, Stevenson concludes the same way he started, by arguing that “It has rarely been sensible to bet against Uncle Sam”. No doubt that will be of some comfort for ASX investors looking to top up on their winning US shares today.

The post Is it too late for ASX investors to start buying US shares? appeared first on The Motley Fool Australia.

More reading

• Which ASX shares could soar if AI falls into a $500 billion hole?
• Why ASX investors are ‘flocking back’ to BHP shares and these other top stocks
• Which US shares are ASX investors buying in 2024?
• Prediction: 2 US stocks that will be worth more than Nvidia 5 years from now
• Is Nvidia stock going to $150 in the wake of its high-profile 10-for-1 stock split?

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 Sebastian Bowen has positions in Amazon, Apple, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Amazon, Apple, Nvidia, and Tesla. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Alibaba Group. The Motley Fool Australia has recommended Amazon, Apple, and Nvidia. 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) had a very strong session and raced higher. The benchmark index rose 0.95% to 7,889.6 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 on a positive note despite a tough session on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open 38 points or 0.5% higher this morning. In the United States, the Dow Jones was up 0.1% but the S&P 500 was down 0.9% and the Nasdaq sank 1.95%. The latter was driven by investors rotating out of 2024 tech winners.

Oil prices rise

It looks like ASX 200 energy shares Beach Energy Ltd (ASX: BPT) and Karoon Energy Ltd (ASX: KAR) could have a good finish to the week after oil prices pushed higher overnight. According to Bloomberg, the WTI crude oil price is up 1.1% to US$82.99 a barrel and the Brent crude oil price is up 0.75% to US$85.71 a barrel. Rate cut hopes gave the oil demand outlook a boost.

BHP suspends nickel production

BHP Group Ltd (ASX: BHP) shares will be on watch today after the mining giant announced the suspension of activities at the Nickel West operations and West Musgrave project. BHP intends to temporarily suspend operations in October. After which, a review of the decision is expected to be made by February 2027. It commented: “The decision to temporarily suspend Western Australia Nickel follows oversupply in the global nickel market. Forward consensus nickel prices over the next half of the decade have fallen sharply reflecting strong growth of alternative low-cost nickel supply.”

Gold price surges

ASX 200 gold shares Evolution Mining Ltd (ASX: EVN) and Northern Star Resources Ltd (ASX: NST) could have a great finish to the week after the gold price surged overnight. According to CNBC, the spot gold price is up 1.8% to US$2,423 an ounce. Increasing rate cut bets helped drive the precious metal higher.

Buy Car Group shares

The CAR Group Limited (ASX: CAR) share price could be great value according to analysts at Goldman Sachs. This morning, the broker has retained its buy rating on the auto listings company’s shares with a $41.40 price target. This implies potential upside of approximately 19% for investors over the next 12 months. It said: “CAR is well-placed to continue delivering ‘good’ earnings growth (i.e. > 10% EBITDA) & remains our preferred classified into earnings.”

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

More reading

• Here are the top 10 ASX 200 shares today
• This ASX 200 gold stock was just tipped for 22% gains
• Why ASX investors are ‘flocking back’ to BHP shares and these other top stocks
• 5 things to watch on the ASX 200 on Thursday
• 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 recommended Car Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

There’s an ASX dividend stock on the market right now that, until very recently, was yielding close to 5%. This particular ASX 200 blue chip has rallied significantly over the past few weeks, which has now pushed down its dividend yield closer to 4.5%. But at the price I paid for this stock, I am indeed enjoying a dividend yield of well over 5%.

That ASX dividend stock is none other than Telstra Group Ltd (ASX: TLS). Although Telstra shares are not a huge part of my overall ASX share portfolio, they do occupy a small corner of it. And I am happy to keep it there.

Telstra went through a major correction in 2023. The ASX dividend stock was asking north of $4.30 this time last year. But in August, Telstra revealed that it would be keeping some of its valuable infrastructure assets in-house, bucking the expectations of a sell-off by the markets.

Investors were not impressed at the time and punished Telstra by slowly dropping its share price. By May of this year, the telco had hit a new 52-week low of just $3.39 a share, a fall of more than 20% from last year’s highs.

Buying an ASX dividend stock when it’s down

But far from despairing, I picked up some extra shares. I thought the market’s reaction to Telstra’s infrastructure announcement was vastly overcooked. After all, is it really a bad thing if a company decides to retain some of its most valuable assets?

At the current Telstra share price, this ASX dividend share is sporting a yield of 4.58%. That comes from the company’s last two dividend payments.

Telstra stock paid a final ASX dividend of 8.5 cents per share last September, followed by an interim dividend of 9 cents per share in March. As is typical with Telstra’s payouts, both dividends came with full franking credits attached.

Telstra might be offering a yield of 4.58% today. But back in May, investors could have got in when this ASX dividend share was sporting a yield of 5.16%. If one includes the value of those full franking credits, that yield grosses up to an even more impressive 7.37%.

This shows that ASX investors have much to gain by buying a quality dividend share when the market is shunning it.

I think the recent Telstra share price rally has vindicated this contrarian outlook. This telco’s shares have been rallying for around a month now, but buying accelerated ever since Telstra revealed it would be increasing its mobile pricing across the board earlier this week.

Telstra announced that its mobile plans would be rising by around 4% from August, with most plans increasing by between $2 and $4 per month. These rises will also take effect for Telstra’s value-conscious Belong brand.

Here’s how Telstra justified its decision to customers:

It takes a lot of work and cost to run a mobile network as large as ours, and even more to support the increased usage we have seen on our network.

The investments we make in our mobile network don’t just help to keep your phone connected to your favourite content and apps. We know those are important, but our network does so much more every single day…

These price changes help us to keep investing in mobile coverage, performance and local support, as well as ongoing investments to improve the security of our services.  We monitor our network 24/7 to help protect against scams by blocking malicious calls and texts from reaching you.

Moats and dividends

I think this decision demonstrates the presence of a wide economic moat for Telstra. A ‘moat’ is a term first employed by legendary investor Warren Buffett. It refers to an intrinsic competitive advantage a company can possess that helps protect its profits from competitors – in much the same way as a moat protected a castle back in days of yore.

A moat can be anything from a pricing advantage to a powerful brand. However, in Telstra’s case, I believe its superior network forms the backbone of its moat. Many customers, particularly Australians who live in rural or regional areas, simply have to use Telstra’s network because no other provider services them.

So, while Telstra’s pricing increases won’t be welcomed by customers, they will probably be accepted. That is a moat in action. It seems the market agrees with this sentiment too, given that this ASX dividend stock has rallied more than 3% this week in light of this announcement.

When it comes down to it, I am happy to own Telstra stock in my ASX portfolio. This company may not deliver life-changing wealth, but it does deliver hefty, reliable dividend income and franking credits like clockwork, and that’s worth a lot to me.

The post Why I keep buying shares of this 5%-yielding ASX dividend stock appeared first on The Motley Fool Australia.

More reading

• 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
• Why Catalyst Metals, Imugene, Red 5, and Telstra shares are pushing higher today
• Top brokers name 3 ASX shares to buy today
• Is the Telstra share price good value in July?

Motley Fool contributor Sebastian Bowen has positions in Telstra Group. 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.

How nice it would have been to invest $10,000 in any one of the best ASX 200 stocks of each market sector in FY24!

In this article, we look at what would have happened if you had invested $10,000 in the No. 1 ASX 200 property stock for share price growth in FY24.

What this ASX 200 property stock did in FY24

The No. 1 property stock for share price growth in FY24 was Goodman Group (ASX: GMG).

Goodman is Australia’s largest real estate investment trust (REIT). It booked a 73.1% share price gain in FY24. By comparison, the S&P/ASX 200 A-REIT Index (ASX: XPJ) rose 19.9% over the 12 months.

Goodman Group owns a huge global portfolio of property assets worth $80.5 billion.

The company specialises in industrial property, and it’s sure catching the enormous artificial intelligence (AI) tailwind these days.

It’s doing so by building the data centres needed to make AI work. Data centres account for approximately 40% of Goodman’s $12.9 billion construction pipeline at the moment.

In a recent update, Goodman said its strong balance sheet would enable it to continue buying and developing high-tier data centres in desirable locations around the world.

Now, let’s do some maths.

If you invested $10,000 at the start of FY24…

Goodman shares closed on 30 June 2023 at $20.07 per share.

If you’d invested $10,000 at that price, you would have ended up with 498 Goodman shares.

Total spend = $9,994.86.

Then this happened.

At the closing bell on 30 June this year, your Goodman shares were worth $34.75 apiece.

So, you would have made $14.68 per share, which, multiplied by 498, gives us a $7,310.64 capital gain.

That’s a fantastic investment outcome.

But wait, there’s more.

What about dividends?

This ASX 200 property stock also pays dividends.

In FY24, you would have received an unfranked final dividend of 15 cents per share in August 2023 and an unfranked interim dividend of 15 cents per share in February 2024.

This would have added another $149.40 to your total returns for FY24.

Granted, that’s not a big dividend yield, but investors don’t buy this ASX 200 property stock for income.

Goodman Group is a growth stock, which means the company tends to reinvest much of its earnings in order to get bigger over time.

It does this by acquiring new assets and redeveloping existing assets as trends change (e.g., Goodman is currently repurposing some of its industrial properties into data centres now).

CEO Greg Goodman explains:

Data centres will be a key area of growth and the acceleration of data centre activity is a
catalyst for the Group to consider multiple opportunities to enhance its returns.

We continue to assess the Group’s capital allocation to both existing and potential opportunities to provide the best risk-adjusted returns.

Key to this will be the active rotation of our capital to fund sustained earnings growth over the
long term.

Thus, Goodman is more focused on delivering growth in earnings per share (EPS) than dividends.

According to CommSec, the consensus forecast among analysts is for this ASX 200 property stock’s EPS to grow from $1.074 per share in 2024 to $1.211 per share in 2025 and $1.377 per share in 2026.

The post How a $10,000 investment in this ASX 200 stock ballooned to $17,460 in FY24! appeared first on The Motley Fool Australia.

More reading

• Why Macquarie says go overweight on ASX REITs now!
• Shares vs. property: Which stocks and suburbs delivered the best growth in FY24?
• The best ASX 200 share of each market sector in FY24
• Here are the best ASX REITS of FY24 (a $66 billion company grew the most)
• Shares vs. property: Which delivered the best growth in FY24?

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

The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

More reading

• Why did ASX uranium shares like Boss Energy have such a bumper day?
• 3 ASX All Ords shares rocketing over 10% today
• Big ASX news: Newmont shares hit new record high
• Why Ora Banda, Paladin Energy, Seven Group, and Telix shares are charging higher
• CBA and 7 other ASX 200 shares smashing new highs on Thursday

Motley Fool contributor Sebastian Bowen has positions in Newmont. 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.

ASX uranium shares were soaring on Thursday, driven by a development that could impact the global uranium market.

The ASX uranium basket was trading significantly higher today, up around 7-9%. Here is how the main uranium players were faring at the close of trading on Thursday:

• Boss Energy Ltd (ASX: BOE) shares were up 6.13% to $3.98
• Deep Yellow Ltd (ASX: DYL) was trading at $1.49 per share, up 9.16%
• Paladin Energy Ltd (ASX: PDN) shares were 6% higher and swapping hands at $13.98
• Bannerman Energy Ltd (ASX: BMN) at $3.29 per share, up 7.87%.
• Peninsula Energy Ltd (ASX: PEN): Up 4.7% to 11 cents apiece.

What was behind today’s rally?

The rally in ASX uranium shares is likely due to a significant announcement on Wednesday from Kazakhstan, the world’s largest uranium-producing country.

Kazakh authorities announced a surprise increase in the mineral extraction tax applicable to uranium.

Kazatomprom, Kazakhstan’s national operator for the export of nuclear minerals, its subsidiaries, and joint ventures, will pay different mineral extraction tax (MET) rates based on their production volumes and market prices for uranium.

The tax rate will increase to 9% starting in 2025. From 2026, a new tiered system will be implemented, with rates ranging from 4% to 18% depending on production levels.

Additionally, further incremental tax rates will apply if the price of natural uranium concentrate exceeds certain thresholds.

Impact on ASX uranium shares

This move could impact global uranium supply, a bullish sign for uranium prices. BMO Capital analyst Alexander Pearce noted the new tax rates provided “less incentive for Kazatomprom to increase production”, according to ZeroHedge.

The new rates are not marginal, thus the new MET penalises large mining assets with potential MET of up to 20.5% (18% for anything over 4ktU, or ~10.4Mlb U3O8, plus an additional 2.5% if the uranium price is >US$110/lb).

Adding to the bullish sentiment, the US Biden administration banned Russian uranium imports back in May. The new law will take effect on August 11 this year.

Russia is a major supplier of global uranium, so what this means for the long-term supply — and price — of the energy commodity remains to be seen.

ASX uranium shares FY25 outlook

The latest price moves extend rallies in the Aussie uranium basket that have been in situ for some months now.

Brokers are also bullish on several ASX uranium shares. For one, Bell Potter has buy ratings on both Boss Energy and Paladin Energy.

For Boss, the broker says its Honeymoon asset “has the capacity to generate strong margins in the current pricing environment”, assigning a price target of $5.90 on the ASX uranium share.

This represents 48% upside potential at the time of writing.

Meanwhile, for Paladin, Bell Potter identifies several catalysts behind the stock. These include an increased production estimate at its Langer Heinrich site and the closure of its Fission Uranium site in September.

It valued Paladin at $15.70 per share, a 12.3% upside potential from the time of writing.

Meanwhile, consensus has buy ratings on Bannerman Energy, Deep Yellow and Penninsula Energy, according to CommSec.

Based on these recommendations, analysts’ view on the sector is bullish.

Foolish takeaway

Investors are buying ASX uranium shares following a number of market and company updates this year.

Remember that commodities move in cycles, and there are specific considerations associated with investing in commodity-linked companies.

The post Why did ASX uranium shares like Boss Energy have such a bumper day? appeared first on The Motley Fool Australia.

More reading

• Here are the top 10 ASX 200 shares today
• Why Ora Banda, Paladin Energy, Seven Group, and Telix shares are charging higher
• Shares vs. property: Which stocks and suburbs delivered the best growth in FY24?
• Buy these ASX uranium stocks for big returns in FY25
• 5 things to watch on the ASX 200 on Monday

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

Looking for big dividend yields? Then check out these ASX dividend shares listed below.

As well as potentially being undervalued, analysts are tipping them to provide larger than average yields in the near term.

Let’s see what they are forecasting from these shares:

Eagers Automotive Ltd (ASX: APE)

The first ASX dividend stock that analysts are tipping as a buy is Eagers Automotive. It is the leading automotive retail group in the Australia and New Zealand region with a proud history stretching back over a century.

The team at Morgans remains positive on the company the tough trading conditions it is facing this year. In fact, it thinks that significant share price weakness has created a compelling buying opportunity for income investors.

The broker recently put an add rating and $14.35 price target on its shares.

As well as plenty of upside, its analysts are expecting big yields. They are forecasting fully franked dividends of 72.7 cents per share in FY 2024 and then 74 cents per share in FY 2025. Based on its current share price of $10.21, this represents dividend yields of 7.1% and 7.25%, respectively.

GDI Property Group Ltd (ASX: GDI)

Another ASX dividend stock that could provide big dividend yields is GDI Property. It is a property owner and fund manager with investments in Greater Sydney, Brisbane, Perth, South East Queensland, and North Queensland.

Bell Potter sees a lot of value in its shares at current levels. The broker has a buy rating and 75 cents price target on its shares.

As for that all-important income, the broker is forecasting dividends per share of 5 cents across FY 2024, FY 2025, and FY 2026. Based on the current GDI Property share price of 57 cents, this implies dividend yields of 8.8% for the next three years.

Universal Store Holdings Ltd (ASX: UNI)

A final ASX dividend stock that could provide great option for income investors is Universal Store. It is a youth fashion retailer that operates stores under the Universal Store, Thrills, and Perfect Stranger names.

Morgans is also positive on the company and believes it is well-placed for growth. It notes that its “growth opportunities are in place” and that “customers continue to respond well to the Universal Store banner.”

The broker currently has an add rating and $6.50 price target on its shares.

As for dividends, the broker is forecasting fully franked dividends per share of 26 cents in FY 2024 and then 29 cents in FY 2025. Based on its current share price of $4.99, this will mean yields of 5.2% and 5.8%, respectively.

The post Very big dividend yields are expected from these ASX stocks appeared first on The Motley Fool Australia.

More reading

• 5 ASX dividend shares to buy next week
• Broker says these ASX shares can rise 25%+
• Morgans names 3 ASX 200 stocks to buy in July
• ASX passive income: How to make $1,000 per month
• Bell Potter names the best ASX retail stocks to buy in FY25

Motley Fool contributor James Mickleboro has positions in Universal Store. 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 recommended Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Insurance Australia Group Ltd (ASX: IAG) shares have surged 26% this year to date and are trading at $7.16 per share at the time of writing.

It’s been a blockbuster twelve months for the insurance giant. From July through December 2023, the stock traded in a range of around $5.50 to $6.10 per share.

But as we rolled into the new year, things changed. It has now rallied from lows of $5.55 in January to its current levels.

With such impressive gains, you might wonder if it’s too late to buy IAG shares. Let’s dive into what’s driving this performance and what to expect moving forward.

IAG shares surge this year

IAG shares are up this year following a number of company-specific updates. The most recent gains are partly due to a $2.5 billion, five-year agreement with Berkshire Hathaway Inc‘s subsidiaries for reinsurance protection.

This deal provides IAG with up to $680 million in additional protection per annum starting in FY 2025. It aims to cap natural perils costs at $1.28 billion this financial year.

Investors may have been bullish, given that Berkshire is Warren Buffett’s conglomerate. Or, it may be due to the company’s reinforced position, as its CEO said it plays a “critical role as an economic shock absorber” in Australia and New Zealand.

IAG’s HY FY24 financials were also reasonably strong.

Gross written premium (GWP) increased by 12.5% to $7.9 billion, whereas insurance profit rose by nearly 75% to $614 million.

The company also declared an interim dividend of 10 cents per share and announced a $200 million on-market share buyback. These are shareholder-friendly moves, in my view.

Investors seem to think so as well. Since the insurer posted its half-year numbers in February, IAG is up by $1.10 per share.

What’s the view on IAG shares?

We can never predict the stock market’s future movements. But one thing for sure is that we don’t want to overpay to buy a share.

IAG shares currently trade on a price-to-earnings ratio (P/E) of 22.6 times. This says that investors are paying $22 for every $1 of the company’s earnings.

This is more expensive than the 18 times multiple for the iShares Core S&P/ASX 200 ETF (ASX: IOZ), which tracks the benchmark index.

Therefore, you are paying a premium in buying IAG today.

What do analysts say?

Analysts are also split on whether to buy the company now or not.

Goldman Sachs has a neutral rating on IAG shares and a 12-month price target of $6.72. It notes potential risks like volume loss due to rate increases and persistent claims inflation.

However, it also acknowledges IAG’s strong rate cycle and capital flexibility. The “operating leverage on its expense ratio” could also drive growth, it says.

Citi, on the other hand, favours IAG over rival Suncorp Group Ltd (ASX: SUN) due to its cost-cutting opportunities and earnings growth. But it values the stock at $6.75 apiece – around 6% lower than where it currently trades.

CommSec data indicates that the consensus of analyst ratings for IAG shares is a moderate buy, with 5 buy ratings and 7 hold ratings.

At the time my colleague Bronwyn covered IAG back in May, this split was 4 rating it a buy, 9 rating it a hold, and 1 analyst rating it a sell.

As such there is now 1 more firm that rates IAG a buy versus 2 months ago, and none rating it a sell.

Foolish takeaway

In my opinion, the view on IAG shares is currently bullish. Although, whilst some brokers are bullish, the stock has rallied past their price targets. There is no saying if they will revise these numbers.

One thing is true – the stock has several tailwinds behind it. But the risk is in overpaying at a 22 times P/E ratio, which is higher than the ETF tracking the benchmark index.

Regardless of the outcome, remember to conduct your own due diligence.

The post Up 26% this year, what’s the view on IAG Shares? appeared first on The Motley Fool Australia.

More reading

• How ASX shares vs. property performed in June
• Here’s a recap on IAG shares in FY24 – and their FY25 outlook
• Here are the top 10 ASX 200 shares today
• 9 ASX 200 shares finishing FY24 on a 52-week high
• Why Delta Lithium, IAG, Mirvac, and Suncorp shares are climbing today

Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 Berkshire Hathaway and Goldman Sachs Group. The Motley Fool Australia has recommended Berkshire Hathaway. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

JB Hi-Fi Ltd (ASX: JBH) shares are basking in a buying frenzy today, rising to an unprecedented level.

Australia’s well-known retailer is fetching $65.65 per share, up 2% from yesterday. Yet the most impressive number today is $66.33, JB Hi-Fi’s new all-time high share price.

The major price milestone is being shared among several ASX 200 companies today, including Commonwealth Bank of Australia (ASX: CBA) and Xero Ltd (ASX: XRO).

However, if you haven’t already spotted the difference, JB Hi-Fi is the only record-setter that’s also hitting headlines today for being in hot water with the Australian Competition and Consumer Commission (ACCC).

Promotional problem goes to court

The corporate watchdog is taking a subsidiary of JB Hi-Fi to Federal Court on allegations of ‘false or misleading’ representations.

According to the release, the ACCC is pursuing The Good Guys for allegedly misrepresenting store credit promotions that were run between July 2019 and August 2023. The promotions, dubbed ‘StoreCash,’ purportedly failed to give this credit in accordance with their stated requirements.

Specifically, the ACCC alleges the promotions inferred a ‘qualifying purchase’ was the only condition for store credit despite customers also needing to approve marketing communications.

The legal headache for the JB Hi-Fi subsidiary doesn’t stop there. Further allegations are levelled at The Good Guys over expiration periods communicated to customers. On this, ACCC chair Gina Cass-Gottlieb states:

We also understand that, for the majority of promotions, the store credit being offered expired within a very short period of time of ten days or less, which many consumers were unaware of.

If the allegations are true, the ACCC worries shoppers may have purchased items under false pretences.

Lastly, the corporate watchdog also alleges that store credits weren’t provided promptly to ‘thousands of eligible consumers’ even when the consumer met all conditions.

The Good Guys, an electronics and white goods retailer, was acquired by JB Hi-Fi in September 2016 for $870 million.

The ACCC is seeking consumer redress, penalties, and costs, among other actions, through the Federal Court.

Why are JB Hi-Fi shares breaking records?

Despite the worrying legal news, JB Hi-Fi shares are firmly in the green. A tangle with the ACCC appears unable to squash bullish sentiment.

Today’s optimism is widespread. Only 37 of the top 200 ASX-listed companies are falling in afternoon trade. Moreover, not a single sector is in the red — a telling sign of indiscriminate confidence in the Australian share market.

Lastly, JB H-Fi addressed the ACCC’s actions with an ASX announcement. The company states it ‘takes its compliance with the law very seriously and has a comprehensive compliance program in place’. Maybe that’s enough to quell any concern among holders of JB Hi-Fi shares for now.

The post JB Hi-Fi shares leap to record high despite legal scuffle appeared first on The Motley Fool Australia.

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Motley Fool contributor Mitchell Lawler has positions in Commonwealth Bank Of Australia. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Xero. The Motley Fool Australia has positions in and has recommended Xero. The Motley Fool Australia has recommended Jb Hi-Fi. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Whilst the All Ordinaries Index (ASX: XAO) is up less than 1% on Thursday, three ASX All Ords shares have spiked more than 10% a the time of writing.

Shares in Latin Resources Ltd (ASX: LRS), Telix Pharmaceuticals Ltd (ASX: TLX), and Ora Banda Mining Ltd (ASX: OBM) have all caught a strong bid from investors in trading on Thursday.

Here’s a look at what’s spurring each of these ASX All Ords shares today.

Telix reaches 52-week high on key announcement

Telix Pharmaceuticals kicks off the list. The healthcare player is up over 11% at the time of writing and trading at $19.73 apiece. Today’s high also represents a 52-week high for the stock.

The spike comes after the ASX All Ords share made a key announcement.

It said the US Centers for Medicare & Medicaid Services (CMS) proposed changes to improve payments for diagnostic radiopharmaceuticals (DRs).

In the US, costs for DRs are currently “packaged” together with other nuclear medicine scans. Telix says the CMS proposal could “improve the accuracy of overall payment amounts” by separating them into individual categories.

This could impact payments for the company’s Illuccix diagnostic imaging kit, potentially making it more accessible.

Telix’s CEO, Kevin Richardson, welcomed the proposal, stating, “The proposed rule will facilitate more equitable access to advanced imaging for all patients.” He too is bullish on Telix long term.

We commend the vision of CMS and the coalition for raising awareness about the necessity to reform the payment system to enhance patient outcomes and access.

The All Ords share has rallied hard in 2024 and is up 95% this year to date. Today’s price is a 52-week high for the gold miner.

Ora Banda Mining rallies on update

Ora Banda Mining is another ASX All Ords share that’s caught a strong bid today. Its stock price is up 14% to 40.5 cents pear share as I write.

Investors also reacted positively to a company announcement today. The company said that the development of its Sand King Underground mine has been approved. The mine is located at the Davyhurst Gold Project in Western Australia.

Consequently, the project is expected to lift the ASX All Ords share’s gold production to 150,000 ounces per annum by FY26. This is up from the current guidance of 100,000 to 110,000 ounces for FY25.

Ora Banda’s CEO, David Quinlivan, stated:

The approval of Sand King Underground is a significant step towards achieving our production targets and enhancing shareholder value.” This development has clearly resonated with the market, leading to today’s gains.

Additionally, Ora Banda shares are up over 70% this year to date.

Latin Resources finds bottom

Latin Resources shares are also up around 10% currently, swapping hands at 17.5 cents per share.

Whilst the company today offers nothing market-sensitive, the stock has been stuck in a sharp downtrend. It peaked at 28 cents per share on 22 May and has sold off sharply since.

After sliding 38% this year to date, the All Ords share may have found a bottom at yesterday’s close.

Bell Potter is bullish on the stock and recently highlighted the company’s potential, noting the updated Mineral Resource Estimate (MRE) for its Salinas Lithium Project in Brazil. 

Latin Resources is also “well-positioned to deliver new lithium supply into structurally short markets”, Bell Potter said.

Bell Potter also has a speculative buy rating on the ASX All Ords share, with a price target of 40 cents. This would imply a potential upside of 128%.

Latin Resources shares are down 38% this year to date.

ASX All Ords shares in focus

These 3 ASX All Ords shares are all up 10% or more today. There’s no telling where they may head from here. As always, remember the risks.

The post 3 ASX All Ords shares rocketing over 10% today appeared first on The Motley Fool Australia.

More reading

• Why Ora Banda, Paladin Energy, Seven Group, and Telix shares are charging higher
• Why is this ASX gold share racing 14% higher today?
• CBA and 7 other ASX 200 shares smashing new highs on Thursday
• Why is the Telix Pharmaceuticals share price rocketing 15% to a record high?
• Will ASX gold shares again outshine the market in FY 2025?

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 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.