Tag: Fool

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

Nvidia‘s (NASDAQ: NVDA) stock popped up by a dramatic 500% in the past three years. Undoubtedly, much of this recent rally has been fueled by the company’s position as a key beneficiary and enabler of the ongoing artificial intelligence (AI) wave.

Nvidia offers a full-stack AI platform, comprising cutting-edge AI-optimized hardware chips, a complete software ecosystem, high-speed networking solutions, and servers to enable clients to build “AI factories,” or the essential infrastructure for AI-based outputs (text, images, audio, video). The company’s accelerated product release cadence, from two years to one year, also helps it maintain technological superiority against competition.

Furthermore, besides the booming demand from large hyperscale companies, enterprises, and AI start-ups, Nvidia’s AI-optimized hardware and software solutions are now increasingly used in new areas such as Sovereign AI (governments building domestic AI capabilities), automotive vertical, and robotics business.

The AI frenzy propelled Nvidia’s stock to an all-time high of over $1,200 in early June. Its recently executed 10-for-1 stock split made its stock far more accessible to retail investors.

With Nvidia’s stock now around $124 at this writing, long-term investors may be keen to know if the stock can again jump to $1,000-plus levels. Let’s analyze the company’s fundamentals and valuations to find some answers.

Intensifying competition and supply challenges

Nvidia’s technological superiority in developing AI-optimized hardware and software enabled the company to capture a whopping 90% share of the global AI chip market. However, the company’s stronghold may get challenged in the long run. Although currently far behind Nvidia, competitors Advanced Micro Devices and Intel are working hard to capture a slice of the AI market.

AMD’s MI300 family of data center chips witnessed strong demand, while the company is also gearing up for launching families of AI chips such as MI325 and MI350 accelerators, based on advanced architectures, in the coming months. AMD expects these chips to demonstrate faster performance, improved memory capacity, and stronger computing capabilities for AI workloads.

Intel is also aggressively focusing on the AI PC opportunity and hopes to launch Lunar Lake laptop CPUs by September 2024. Lunar Lake chips are expected to be superior in performance, efficiency, and graphics processing compared to their predecessor Meteor Lake chips. Plus, Intel has also introduced Gaudi 3 AI accelerators, offering superior cost-performance benefits for training and inferencing of AI models.

Nvidia also faces the risk of customers such as cloud players and technology giants becoming competitors, as they have been accelerating in-house development of AI-optimized chips and solutions. This risk cannot be ignored, since large cloud players account for roughly 45% of the company’s data center revenues.

Multiple other challenges

While demand for Nvidia’s AI chips and solutions has grown dramatically, the company continues to face supply constraints associated with procuring manufacturing, testing, and packaging capacity from Taiwan Semiconductor Manufacturing and other vendors. Subsequently, the company expects demand for its new H200 chips and next-generation Blackwell chips to outpace supply well until 2025. This headwind can affect the company’s growth prospects in the coming years.

Nvidia also accelerated the pace of release cadence (for major products or features) from once every two years to once annually. Continuously innovating and adapting hardware and software is the need of the hour in the face of increasing complexity and rapid evolution of AI models and workloads.

However, this also exposes Nvidia to significant execution risks and to the risk of clients delaying purchases to get access to the most advanced technologies. Nvidia’s rapid pace of innovation can result in early product obsolescence for its older offerings and increasing risk of self-cannibalization.

Valuation estimates

Nvidia has consistently posting impressive financial metrics for the past several quarters. In the first quarter of fiscal 2025 (ending April 28), revenues were up by nearly 262% year over year to $26 billion, while net income soared by 628% year over year to $14.9 billion.

Analysts expect Nvidia’s fiscal 2025 sales to grow by 97% year over year to $120 billion. While the revenue growth rate is expected to moderate in the next decade, analysts expect the company’s sales to more than triple to $380.9 billion by 2034.

Nvidia is currently trading at a price-to-sales (P/S) multiple of 38.6x. Assuming that this multiple reverts to its 10-year average of 22.27x (a conservative estimate), we can expect Nvidia’s market capitalization to reach around $8.5 trillion by 2034. While the market cap seems huge, it is only 2.7 times the company’s current $3.1 trillion market capitalization. This implies that the stock can reach north of $340 by 2034 (assuming no significant share repurchases or stock splits).

Assuming Nvidia’s P/S multiple remains at the current 38.6x level (a very aggressive estimate), the company’s market capitalization will be around $14.7 trillion — 4.7 times its current market capitalization. Still, the company’s share price can be expected to reach close to $600 by the end of 2034.

Hence, based on current estimates, the chances of Nvidia’s share price crossing $1,000 in the next decade appear slim. These projections, however, can change in case Nvidia makes even more dramatic advances in AI technologies in the coming years.

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

The post Can Nvidia stock cross $1,000 again after the stock split? appeared first on The Motley Fool Australia.

More reading

• One day, Nvidia stock will go down. Here’s how to keep it from hurting your portfolio
• Where will Nvidia stock be in 10 years?
• Nvidia is no longer the most valuable company in the world. Here’s what investors need to know
• Where are we in the share market cycle?
• After Nvidia’s 10-for-1 stock split, is it still a buy?

Manali Pradhan has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Advanced Micro Devices, Nvidia, and Taiwan Semiconductor Manufacturing. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Intel and has recommended the following options: long January 2025 $45 calls on Intel and short August 2024 $35 calls on Intel. The Motley Fool Australia has recommended Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Bendigo and Adelaide Bank Ltd (ASX: BEN) shares are under pressure on Tuesday morning.

At the time of writing, the regional bank’s shares are down 1% to $11.31.

Bendigo Bank shares fall on CEO exit

This morning, the regional bank announced that its CEO, Marnie Baker, has decided to step down from the role.

According to the release, Ms Baker intends to leave after 35 years with the company and six years as its leader at the end of next month.

The outgoing CEO leaves on good terms with the bank’s board. Bendigo and Adelaide Bank’s chair, Vicki Carter, “thanked Ms Baker for her decades of service and leadership of the Bank through a period of great opportunity and significant challenge, which included frequent natural disasters, COVID-19 and record low interest rates.”

Carter also praised “Marnie’s authentic leadership style” and “the execution of a significant and necessary transformation agenda which included the consolidation of core banking platforms, brands and divisions.”

Replacement announced

Bendigo and Adelaide Bank’s shares are falling today despite the bank already identifying and appointing its next CEO.

The release reveals that its current chief customer officer for consumer, Richard Fennell, will take the reins on 31 August on a $1.5 million a year contract.

Carter notes “Mr Fennell’s strong focus on the customer, his achievements in digital and significant financial expertise were among the key attributes the Board prioritised in its detailed succession planning, which included a comprehensive external search.”

The company’s chair believes the bank is “in a position of strength and Richard is well placed to lead the next phase of [its] sustainable growth agenda.”

Fennell appears confident that he is up to the job. Commenting on his appointment, he said:

Bendigo and Adelaide Bank is a unique institution that plays an important role in providing Australian banking consumers with a genuine and compelling alternative to the majors. I am grateful for the transformation work Marnie has driven to create strong foundations for the Bank and I am proud to accept the responsibility for leading Bendigo and Adelaide Bank and ensuring its future success.

I look forward to connecting with all of our people who work hard every day to deliver great outcomes for our customers as we work together to find new ways to ensure the Bank can continue to deliver on its purpose of feeding into the prosperity of our customers and the community.

Bendigo and Adelaide Bank’s shares are up 30% over the past 12 months.

The post Bendigo Bank shares fall on surprise CEO exit appeared first on The Motley Fool Australia.

More reading

• These were the five best ASX bank shares to own in FY24
• 9 ASX 200 shares finishing FY24 on a 52-week high
• Which ASX shares to buy if interest rates rise (and which to avoid)
• 5 ASX 300 shares smashing new highs while the market sinks
• Here’s how the ASX 200 market sectors stacked up last 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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Bendigo And Adelaide Bank. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The economic environment is uncertain for two of the ASX’s largest sectors – mining and banking. I’m going to run through what the dividend projections are for FY25 with some of the largest S&P/ASX 200 Index (ASX: XJO) dividend shares.

The ASX bank share sector is facing rising arrears amid a high cost of living and elevated interest rates. For example, in the recent Commonwealth Bank of Australia (ASX: CBA) update for the third quarter of FY24, CBA said its arrears of home loans that were overdue by at least 90 days increased from 0.44% at March 2023 to 0.61% at March 2024.

According to Trading Economics, ASX iron ore shares, such as BHP Group Ltd (ASX: BHP) and Fortescue Ltd (ASX: FMG), are facing uncertain demand from China. The Asian superpower’s housing construction sector continues to experience difficulties while Chinese iron ore production is growing.

With that in mind, let’s look at how big the dividend payments could be in FY25.

Dividend projections

The following forecasts are based on estimates on Commsec. Remember, forecasts are just educated guesses by analysts – the payouts could be smaller or larger than projected.

Owners of CBA shares could receive a grossed-up dividend yield of 5.1%.

BHP could pay a grossed-up dividend yield of 7.6%.

National Australia Bank Ltd (ASX: NAB) is projected to pay a grossed-up dividend yield of 6.7%.

ANZ Group Holdings Ltd (ASX: ANZ) is forecast to pay a grossed-up dividend yield of 8.3%.

Westpac Banking Corp (ASX: WBC) is predicted to pay a grossed-up dividend yield of 7.9%.

Fortescue is forecast to pay a grossed-up dividend yield of 9.2%.

Rio Tinto Ltd (ASX: RIO) is projected to pay a grossed-up dividend yield of 8.1%.

Macquarie Group Ltd (ASX: MQG) is predicted to pay a grossed-up dividend yield of around 4%.

Wesfarmers Ltd (ASX: WES) is forecast to pay a grossed-up dividend yield of 4.6%.

Woodside Energy Group Ltd (ASX: WDS) is projected to pay a grossed-up dividend yield of 7.7%.

Telstra Group Ltd (ASX: TLS) is predicted to pay a grossed-up dividend yield of 7.5%.

Is this a good time to invest?

The ASX 200 share market has performed strongly since the end of October 2023, rising by 14%.

I don’t think we can call the ASX bank shares good value, considering arrears are rising and competitive pressures remain. And I’m not bullish about the current iron ore price, so ASX iron ore shares don’t strike me as bargains.

Currently, of the ASX 200 dividend shares I’ve mentioned, I’d call Telstra shares good value, and I’d also be happy to own Wesfarmers shares and Macquarie shares because of their ability to compound earnings over the long term.

The post What is the outlook for ASX 200 dividend shares in FY25? appeared first on The Motley Fool Australia.

More reading

• 3 cheap ASX passive income shares I’d buy to target $1,000 a month
• 3 ASX dividend shares to buy with 5%+ yields
• What went right and what went wrong for the BHP share price in FY 2024?
• Would Warren Buffett buy CBA shares today?
• Why are ASX 200 coal shares smashing the market today?

Motley Fool contributor Tristan Harrison has positions in Fortescue. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Macquarie Group and Wesfarmers. The Motley Fool Australia has positions in and has recommended Macquarie Group, Telstra Group, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are lucky enough to have $10,000 burning a hole in your pocket, it could be worth putting it to work in the share market.

After all, over the long term, the share market has generated an average return of approximately 10% per annum.

Thanks to the power of compounding, this means that your $10,000 could turn into significantly if the market continues to perform in line with historical averages.

But which ASX 200 shares could be a good option for these funds? Let’s look at two buy-rated shares:

Neuren Pharmaceuticals Ltd (ASX: NEU)

Bell Potter thinks that this pharmaceutical company’s shares could have major upside potential.

The broker currently has a buy rating and $28.00 price target on the ASX 200 share. Based on its current share price of $20.21, this implies potential upside of almost 39% for investors over the next 12 months.

Bell Potter is feeling very bullish about the company’s outlook thanks largely to its NNZ-2591 product. It believes this has product has significant market opportunities and could be a big revenue generator. The broker said:

Our positive outlook on the stock is driven largely by the company’s second asset, called NNZ-2591, currently preparing to start Phase 3 clinical trials in CY25. In the last six months, NNZ-2591 reported highly encouraging Phase 2 data in two rare diseases. NEU will once again have first-to-market opportunities in these two rare diseases, assuming future Phase 3 trials are successful. While short-term news will continue to be impacted by Acadia’s commercialisation of NEU’s first drug, called Daybue, we maintain our BUY recommendation for investors who have a longer 2 to 3-year investment horizon.

ResMed Inc (ASX: RMD)

Another option for that $10,000 investment could be ResMed. It is a sleep disorder treatment focused medical device company.

Morgans thinks it could be a top ASX 200 share to buy now. The broker currently has an add rating and $34.11 price target on its shares. This suggests that upside of over 19% is possible for investors from current levels.

It believes that investors should look beyond weight loss drug concerns and focus on its huge market opportunity. It said:

While weight loss drugs have grabbed headlines and investor attention, we see these products having little impact on the large, underserved sleep disorder breathing market, and do not view them as category killers. Although quarters are likely to remain volatile, nothing changes our view that the company remains well placed and uniquely positioned as it builds a patient-centric, connected-care digital platform that addresses the main pinch points across the healthcare value chain.

The post Where to invest $10,000 in ASX 200 shares in July appeared first on The Motley Fool Australia.

More reading

• What’s the outlook for ASX healthcare shares in FY25?
• Top ASX shares to buy in July 2024
• 3 of the best ASX 200 stocks to buy in FY25
• Here are the top 10 ASX 200 shares today
• Here are the top 10 ASX 200 shares today

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

The Australian share market is a great place to generate an income.

That’s because there are countless ASX shares out there that pay dividends every six months (or even more regularly).

But which ASX income shares could be in the buy zone right now? Let’s take a look:

Dalrymple Bay Infrastructure Ltd (ASX: DBI)

The first ASX income share to look at is Dalrymple Bay Infrastructure. It is the long-term operator of the Dalrymple Bay Coal Terminal. This terminal has been Queensland’s premier coal export facility for over 40 years.

The team at Morgans is bullish on the company. It currently has an add rating and $3.05 price target on its shares.

As for income, the broker is forecasting dividends per share of 22 cents in FY 2024 and then 23 cents in FY 2025. Based on the latest Dalrymple Bay Infrastructure share price of $2.76, this will mean dividend yields of 8% and 8.3%, respectively.

Endeavour Group Ltd (ASX: EDV)

Over at Goldman Sachs, its analysts think Endeavour Group could be a great stock for income investors to buy. It is the market leader in alcohol retail through brands such as BWS and Dan Murphy’s.

Goldman currently has a buy rating and $6.50 price target on its shares.

In respect to dividends, Goldman is forecasting fully franked dividends of 21 cents per share in FY 2024 and 22 cents per share in FY 2025. Based on the current Endeavour share price of $4.96, this will mean dividend yields of 4.2% and 4.4%, respectively.

GDI Property Group Ltd (ASX: GDI)

A third ASX income share to look at is GDI Property. It is a property owner and fund manager that is being tipped as a buy by analysts at Bell Potter.

The broker currently has a buy rating and 75 cents price target on its shares.

Bell Potter believes GDI Property is positioned to pay dividends per share of 5 cents across FY 2024, FY 2025, and FY 2026. Based on the current GDI Property share price of 56 cents, this implies dividend yields of 8.9% for the next three years.

Transurban Group (ASX: TCL)

Finally, analysts at Citi think toll road operator Transurban could an ASX income share to buy.

The broker currently has a buy rating and $15.50 price target on its shares.

As for that all-important income, Citi believes the company is positioned to pay dividends per share of 63.6 cents in FY 2024 and then 65.1 cents in FY 2025. Based on the current Transurban share price of $12.39, this will mean yields of 5.1% and 5.25%, respectively.

The post Buy these ASX income shares in July: Analysts appeared first on The Motley Fool Australia.

More reading

• 3 ASX income shares to buy this month
• Top ASX shares to buy in July 2024
• These ASX shares could rise 25% to 30%
• Bell Potter names the best ASX real estate shares to buy in FY25
• 3 ASX dividend stocks to buy with 5% to 7% yields

Citigroup is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor James Mickleboro has positions in Endeavour Group. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group and Transurban 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.

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

Shares of Tesla (NASDAQ: TSLA) have been on the comeback trail recently, and that continued on the first trading day of July. Shares of the leading electric vehicle (EV) maker were higher by 5.5% as of 11:10 a.m. ET Monday morning. The stock is now up by about 18% over the past month.

Today’s jump comes just a day before Tesla is expected to report its second-quarter EV delivery data. While estimates have been trending lower, delivery reports from Chinese EV makers today have investors feeling more optimistic about what the American company will say.

The important Chinese EV market

The Chinese EV market has been crucial for Tesla, whose most productive factory is in Shanghai. Today, several Chinese EV makers reported strong June and second-quarter deliveries. That might bode well for what Tesla has to share tomorrow.

Nio, Li Auto, XPeng, and the larger BYD all showed year-over-year growth in battery-electric vehicle (BEV) sales for the quarter. The period seemed to end on a strong note, as Nio delivered a monthly record 21,209 vehicles in June. That was nearly twice what it shipped in June 2023.

Many EV observers have been closely watching the larger BYD, whose BEV volume is more in line with that of Tesla. BYD sold more than 426,000 fully electric vehicles in the second quarter, up about 21% year over year.

Tesla analysts have been lowering estimates for its second-quarter sales, with most recent projections averaging about 420,000 EVs. That would be down from about 466,000 delivered in the prior-year period. It would also be the second quarterly period where BYD outsold Tesla to be the world’s largest EV seller.

With China’s EV market seemingly recovering, it could result in Tesla beating estimates. Even after that data is released, though, shareholders will want to continue to pay attention to what Tesla says about profit margin when it releases its full second-quarter financial report. If the sales in China are coming from reduced prices, the boost in its shares might be short-lived.

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

The post Why Tesla stock popped ahead of second-quarter deliveries appeared first on The Motley Fool Australia.

More reading

• Is Tesla the best EV stock for you?
• Why Tesla stock jumped today

The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended BYD Company, Nio, and Tesla. Howard Smith has positions in BYD Company, Nio, Tesla, and XPeng. 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.

If you’re a beginner investor in ASX shares, picking your first stocks is one of the hardest tasks you’ll face.

Not to pile on unnecessary pressure, but the first ASX shares you buy can often either give you the confidence to keep going on your wealth-building journey or shatter your resolve to use the share markets to manage your money.

That’s why I often advocate that beginner investors stick to mature, dividend-paying ASX shares with long track records of delivering for shareholders as starter investments.

With that in mind, here are two such ASX shares that I’d be happy to recommend to any beginner investor today.

2 ASX shares perfect for a beginner investor

Australian Foundation Investment Co Ltd (ASX: AFI)

The Australian Foundation Investment Co, or AFIC for short, is an ASX institution. This company is what’s known as a listed investment company (LIC). That means that instead of making or selling things, it manages a portfolio of other shares on behalf of its shareholders. This makes AFIC a great choice for a beginner investor, in my view.

You don’t have to worry about picking individual stocks or ensuring your share portfolio is properly diversified – AFIC does it all for you.

Its underlying portfolio is typically made up of blue chip ASX shares, with some of the company’s current top holdings including Commonwealth Bank of Australia (ASX: CBA), Wesfarmers Ltd (ASX: WES) and Macquarie Group Ltd (ASX: MQG).

AFIC has also built up a solid long-term track record when it comes to paying dividends. This company hasn’t skipped a dividend in decades and typically doles out two fully-franked shareholder payments every year. Its shares are presently trading on a dividend yield of 3.6%.

Past performance is no guarantee of future returns. However, AFIC has delivered a respectable average of 8.6% per annum (including dividends) over the past ten years (as of 31 May).

I don’t see any reason why this company’s robust dividends and solid performance can’t continue for decades to come. As such, I think AFIC is a perfect investment for a beginner today.

Washington H. Soul Pattinson and Co Ltd (ASX: SOL).

Next up, we have ASX 200 investment house Washington H. Soul Pattinson and Co, or Soul Patts for short.

Although this company isn’t technically an LIC, it functions very similarly to one, managing a portfolio of assets on behalf of its shareholders.

These also include a portfolio of blue-chip stocks and large stakes in a select group of ASX shares. These include TPG Telecom Ltd (ASX: TPG), New Hope Corporation Ltd (ASX: NHC), and Brickworks Ltd (ASX: BKW). Soul Patts also has other assets within its portfolio for diversification. These assets include private credit, venture capital investments, and stakes in private companies.

Soul Patts is an Australian share market veteran, having been around for longer than the ASX itself. In its 120-plus-year history, this ASX share has never failed to pay a dividend and has also delivered an annual dividend pay rise every year since 2000. That’s a feat that no other ASX share can match.

In addition to this track record, Soul Patts has also delivered some impressive overall returns. As of 30 April, this company has given investors an average of 12% per annum in overall returns over the preceding 20 years.

As such, I think this company is another perfect option for any beginner investor today.

The post Beginner investors: I suggest you start with these 2 ASX dividend powerhouses for decades of income appeared first on The Motley Fool Australia.

More reading

• These 3 ASX shares have unstoppable dividend growth
• 1 ASX stock that’s just right for beginner investors
• If I were 60 I’d buy these ASX shares for dividends
• Should you buy Brickworks or Soul Patts shares today?
• How to invest for retirement in an inflationary environment

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited and Wesfarmers. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Macquarie Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Brickworks, Macquarie Group, Washington H. Soul Pattinson and Company Limited, and Wesfarmers. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Welcome to the new financial year of FY25—a fresh start full of possibilities.

What adds to the excitement is the increased super contributions Australian workers will receive from their employers this year.

Are you considering adding affordable ASX shares to boost your passive income?

Explore my list of inexpensive ASX shares to enhance your passive income portfolio. If you have an extra $20,000 to invest today, these 3 ASX shares could potentially generate an additional annual passive income of $1,000.

Let’s get started!

Super Retail Group Ltd (ASX: SUL)

First two companies on my list are ASX retail shares, facing challenges from weak consumer sentiment amid ongoing living cost pressures.

Super Retail Group owns and operates popular retail brands, including Supercheap Auto, Rebel, BCF, and Macpac.

According to its May trading update, like-for-like sales growth remained largely flat, with BCF seeing a 5% decline while Macpac grew by 3%. The company said that while foot traffic continues to rise, consumers are purchasing fewer items per sale.

This subdued consumer sentiment, shared by both consumers and investors, has positioned its shares attractively at just 13x its FY25 earnings estimate by S&P Capital IQ.

At the current share price, it offers a fully-franked dividend yield of 5.6% using its trailing 12 months’ payments.

Analysts at Goldman Sachs believe dividends will be largely maintained next year. They project Super Retail’s dividends per share to reach 73 cents in FY25, yielding 5.4% based on the current share price.

The Super Retail share price is currently $13.59.

Accent Group Ltd (ASX: AX1)

My second pick in the consumer sector is Accent Group, known for brands such as The Athlete’s Foot, Platypus Shoes, Hype DC, and Skechers.

Accent Group appears more affected by declining retail consumption than Super Retail Group. In 1H FY24, its revenue grew by a modest 2.7% to $811 million, while operating profits declined by 20% to $72.4 million.

This was because of surging operating costs, driven by negative like-for-like retail sales, lower wholesale revenues, and cost inflation.

Accent Group shares are trading at 13x FY25 earnings estimates by S&P Capital IQ, which is attractive relative to its historical range of 8x to 25x.

Looking long-term, Accent Group boasts a robust portfolio of shoe brands, making it a likely destination for your next shoe purchase.

Using S&P Capital IQ estimates as a guide, analysts expect Accent Group’s earnings per share to recover swiftly to 14 cents in FY25, followed by a 17% increase to 17 cents in FY26.

The Accent Group share price is currently $1.91. At this price, Accent Group offers a fully franked dividend yield of 7.33%.

BHP Group Ltd (ASX: BHP)

For investors unsure about consumer discretionary shares, BHP Group is a stable choice. This year, BHP shares have dropped 14%, largely due to decreases in copper and iron ore prices.

As my colleague Bernd highlighted, in June, iron ore prices fell 9% to US$117 per tonne, while copper prices dropped 6% to US$9,516 per tonne.

Mining shares are cyclical, so this downturn might be a good time to buy this ASX blue-chip stock.

While earnings may suffer in the next year or two, depending on the global economy and demand for commodities, over the long term, BHP has been one of the best dividend shares to invest in.

BHP shares are currently trading at a P/E ratio of 11x on FY25 earnings estimates by S&P Capital IQ.

The BHP share price is currently $43.30. At this price, BHP offers a fully franked dividend yield of 5.42%.

The post 3 cheap ASX passive income shares I’d buy to target $1,000 a month appeared first on The Motley Fool Australia.

More reading

• What went right and what went wrong for the BHP share price in FY 2024?
• Why are ASX 200 coal shares smashing the market today?
• Which ASX dividend shares are predicted to have the highest yields in FY25?
• 2 high-yield ASX shares predicted to pay huge dividends in FY26
• What this expert predicts will be the best-performing ASX sectors in FY25

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

Investors that are wanting to add or increase their exposure to the tech sector might want to check out the two ASX 200 stocks listed below.

That’s because brokers have just slapped buy ratings on them. Here’s what they are saying about these ASX 200 tech stocks:

Hub24 Ltd (ASX: HUB)

According to a note out of Bell Potter, its analysts have initiated coverage on this investment platform provider’s shares with a buy rating and $53.20 price target. Based on its current share price of $46.07, this implies potential upside of 15.5% for investors over the next 12 months.

Bell Potter likes the company due to its positive long-term outlook, which is being supported by several tailwinds. It explains:

Our favourable investment view is supported by: (1) changes in advice, with investment professionals shifting away from institutionally owned platforms while seeking comprehensive technology solutions; (2) single digit market share and leading capital flows; and (3) increases to the super guarantee contribution and rollovers into self-managed super funds.

In addition, the broker highlights the material discount that the ASX 200 tech stock trades at compared to rival Netwealth Group Ltd (ASX: NWL). It feels this is unwarranted, especially given its superior technology. Bell Potter adds:

Netwealth is trading on a blended 1 year forward EV/EBITDA of 32.9x with lower forecast FUA and mature EBIT margins. We don’t believe HUB’s trading discount of ~26% is justified and see the potential for it to rerate, predicated on superior technology, recurring revenue growth and operating leverage.

Xero Ltd (ASX: XRO)

Another ASX 200 tech stock that has been rated as a buy this morning is cloud accounting platform provider Xero. Goldman Sachs has reiterated its conviction buy rating with an improved price target of $180.00. Based on its current share price of $134.70, this suggests that 34% upside is possible over the next 12 months.

Goldman has become even more bullish on the company after reassessing its UK opportunity. It said:

Following our June UK trip, attending Xerocon and meeting with accountants/competitors/experts, we are encouraged with the positive feedback (vs. our 2022 trip), in particular around its refreshed strategy and increased focus. [We] increase our 12m TP +10% to A$180 (36X EBITDA, from 33X) given increased confidence in the UK, a key growth market for Xero.

This increased confidence comes partly from its view that Xero’s product strategy is working. It said:

Product strategy resonating, with good products announced at Xerocon in the right focus areas, and very positive feedback on tap-to-pay and JAX. The more cautious feedback was some updates (i.e. partnerships tax) should have been launched years ago. Xero payroll has also been improving, providing a strong proposition for smaller Xero-only practices. Given we estimate low single digit payroll penetration, there is significant ARPU upside on increased attach.

Overall, analysts appear to believe that these tech stocks could be worth considering for the new financial year.

The post Brokers just put buy ratings on these ASX 200 tech stocks appeared first on The Motley Fool Australia.

More reading

• 5 things to watch on the ASX 200 on Tuesday
• Here’s how the ASX 200 market sectors stacked up last week
• The best three ASX 200 shares to buy and hold in FY 2024 revealed
• 9 ASX 200 shares finishing FY24 on a 52-week high
• 5 ASX 300 shares smashing new highs while the market sinks

Motley Fool contributor James Mickleboro has positions in Xero. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Goldman Sachs Group, Hub24, Netwealth Group, and Xero. The Motley Fool Australia has positions in and has recommended Netwealth Group and Xero. The Motley Fool Australia has recommended Hub24. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Do you want big returns? And do you have a high tolerance for risk? If you’ve said yes to both of these questions, then read on.

That’s because the ASX stock in this article has been tipped to almost triple in value from current levels.

But its speculative rating means that only investors willing to take on great risk should consider it as an option.

What is this speculative ASX stock?

The stock in question is named Delta Lithium Ltd (ASX: DLI). Or maybe it should be called Delta Gold after its latest announcement.

That announcement revealed that the company’s 100% owned Mt Ida Project, which is a shovel ready lithium and gold project in the Eastern Goldfields Province of Western Australia, is sitting atop a significant gold deposit.

Delta Lithium advised that its updated mineral resource estimate for the Baldock Deposit has contained gold of 4.8Mt @ 4.4g/t gold for 674,000 ounces. In addition, the maiden mineral resource estimate for the Golden Vale Prospect is 27,000 ounces @ 1.7g/t Au.

Bell Potter was pleased with the news and highlights that all deposits remain open. This could mean that drilling uncovers even more gold in the coming months. It said:

DLI announced a significant upgrade to its Mt Ida Gold Resource. Resources were upgraded to 6.6Mt at 3.5g/t Au containing 752koz (prev. 412koz in the October 2023 Resource). The Baldock deposit hosts 4.8Mt at 4.4g/t containing 674koz of the total. Mt Ida has additional gold upside potential, as known deposits remain open, and new targets are yet to be tested beyond initial drill results.

Big returns

In response to the update, the broker has reaffirmed its speculative buy rating and 75 cents price target on the ASX stock. Based on its current share price of 26.5 cents, this implies potential upside of 183% for investors over the next 12 months.

To put that into context, a $5,000 investment would be worth $14,150 if Bell Potter is on the money with its recommendation. It concludes:

On a net basis, our valuation is unchanged. We increase our gold exploration value, which is offset by reductions in our valuation of the lithium assets as we reflect ongoing lithium price weakness. We maintain our BUY (Speculative) recommendation for DLI, in accordance with our ratings structure. DLI’s share price continues to be affected by negative lithium sector sentiment. We see upside in DLIs’ valuation from: (1) the ongoing exploration and development of the Yinnetharra and Mt Ida Lithium Projects, (2) future improvements in lithium prices and sector sentiment, and, (3) increasing levels of newsflow from gold exploration and monetisation activities.

The post Meet the speculative ASX stock tipped to rise 180% appeared first on The Motley Fool Australia.

More reading

• Why Delta Lithium, IAG, Mirvac, and Suncorp shares are climbing today
• Guess which ASX lithium stock is rocketing 37% on a golden announcement

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.