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I’m a big fan of ASX growth shares and you will find a good number in my investment portfolio.

The good news for me, and for others with a penchant for growth, is that there are plenty of options out there to choose from.

For example, analysts currently have buy ratings and favourable price targets on the ASX growth shares listed below. Here’s what they are saying about them:

Objective Corporation Ltd (ASX: OCL)

Analysts at Morgans think that Objective Corp could be a top option for growth investors. It is a leading provider of content, collaboration and process management solutions for the public sector in Asia Pacific and Europe.

Morgans has an add rating and $14.00 price target on its shares. This suggests that upside of approximately 19% is possible over the next 12 months.

The broker likes the company due to its defensive customer base, strong recurring revenue, and low churn. It said:

Because of this defensive customer base, the company has strong recurring revenue and low levels of churn. Global Public Sector software spend is anticipated to grow at a low double-digit rates over the near term as governments look to streamline workflow, improve security, and modernise legacy IT infrastructure. We see Objective as being a beneficiary of this trend. Objective has seen a strategic reset in its earnings in FY23 as it looks to prioritise subscription licencing revenue growth, streamline deployment of its solutions, and invest in product and sales support functions. Whilst this has recently weighed on the company’s share price, we believe Objective should be well positioned to see long-term revenue growth rates and margins return in FY24 and beyond.

Treasury Wine Estates Ltd (ASX: TWE)

Goldman Sachs thinks that this wine giant could be an ASX growth share to buy. It currently has a buy rating and $15.20 price target on its shares, which implies potential upside of 22% for investors.

The broker is forecasting double-digit earnings growth through to at least FY 2024 thanks partly to its Penfolds business and its return to China. So, with its shares trading on lower than normal multiples, it feels that now is the time to invest. Goldman explains:

Our Buy rating on TWE is premised on accelerating double-digit EPS growth in FY24-27e driven by 1) continued global expansion of Penfolds, especially post the removal of China import tariffs on Australian wine; our recent channel checks suggest positive reception to the returning Australian sourced Penfolds and we expect a ~63pct pre-tariff recovery by 2027; and 2) its rank as the #1 luxury wine company in the US (most sales in luxury wine) with the recent acquisitions of Frank Family Vineyards (FFV) and DAOU which have been growth and margin accretive, combined with a stable portfolio of Premium Brands. TWE is trading modestly below the 5-year historical P/E average.

The post Here’s why brokers say these ASX growth shares are top buys appeared first on The Motley Fool Australia.

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The economic environment for S&P/ASX 200 Index (ASX: XJO) retail shares is uncertain amid high cost of living, high interest rates and higher costs for retailers.

The Reserve Bank of Australia (RBA) is deliberately trying to take demand out of the economy with a high cash rate.

However, collectively, households kept spending at stores during (the first half of) FY24. With the 2025 financial year almost upon us, it’s worth considering whether there are opportunities in the sector.

The ASX 200 has many retailers within the index, including Wesfarmers Ltd (ASX: WES), Woolworths Group Ltd (ASX: WOW), Coles Group Ltd (ASX: COL), JB Hi-Fi Ltd (ASX: JBH), Harvey Norman Holdings Limited (ASX: HVN), Premier Investments Limited (ASX: PMV), Metcash Ltd (ASX: MTS), Lovisa Holdings Ltd (ASX: LOV) and Super Retail Group Ltd (ASX: SUL).

Strong inflation to keep rates higher for longer

Australia’s CPI inflation measure accelerated in May at a rate that was more than expected. As reported by my colleague Bernd Struben, Australian inflation was forecast to have increased 3.8% on an annualised basis, up from 3.6% in April. It was actually a 4% increase in the 12 months to May 2024.

What could this mean for the RBA’s interest rate though? According to reporting by the Australian Financial Review, VanEck head of investments, Russel Chesler, said rate cuts have been delayed, and it has increased the possibility of an increase:

We weren’t expecting the RBA to cut rates until the second half of 2025, but the hotter-than-expected CPI print today indicates this could be even further away.

Forget ‘higher for longer’ – we may end up being the ‘highest for the longest’.

Interest rates remaining higher could mean some household spending remains restrained during FY25. This could be troubling for ASX 200 retail shares if it means lower earnings. Rising costs can also be a headwind for earnings if wages and rent keep rising at a painful rate.

A couple of weeks ago, in the RBA’s latest interest rate decision announcement, the central bank said:

Inflation is easing but has been doing so more slowly than previously expected and it remains high. The Board expects that it will be some time yet before inflation is sustainably in the target range. While recent data have been mixed, they have reinforced the need to remain vigilant to upside risks to inflation.

The path of interest rates that will best ensure that inflation returns to target in a reasonable timeframe remains uncertain and the Board is not ruling anything in or out. The Board will rely upon the data and the evolving assessment of risks. In doing so, it will continue to pay close attention to developments in the global economy, trends in domestic demand, and the outlook for inflation and the labour market. The Board remains resolute in its determination to return inflation to target and will do what is necessary to achieve that outcome.

ASX 200 retail shares are not fully exposed to Australian discretionary spending

It’s important to note that the ASX 200 retail shares are among the biggest and strongest retailers in the country. They have the balance sheets to absorb difficult operating conditions, they have the scale to offer customers the best prices, and they have the marketing budgets to stay in front of customers.

Discretionary spending may be challenging for some households in FY25, but there are plenty of mitigating factors as to why these stocks could still do well even if it falls.

Coles, Woolworths and Metcash all sell food, which households need to keep buying. Indeed, they could see increased demand if people reduce eating out and Australia’s population keeps increasing.

Premier Investments, Harvey Norman and Lovisa have global earnings with expanding store networks, so they’re reducing their exposure in percentage terms to the Australian consumer.

JB Hi-Fi’s product demand may be more defensive than it used to be because it sells appliances and smartphones, which we all need in our homes.

Wesfarmers’ Bunnings and Kmart businesses are reportedly capturing market share during this period as more customers look for value.

FY25 could be a fascinating year for ASX 200 retail shares. Earnings could be more resilient than the bears expect, even if the share prices experience some volatility.

The post Are ASX 200 retail shares attractive amid the FY25 outlook? appeared first on The Motley Fool Australia.

More reading

• Here’s why brokers say these ASX growth shares are top buys
• 3 super strong blue chip ASX 200 shares to buy in July
• Coles and these ASX dividend stocks could offer huge returns
• Here’s when CBA and these ASX 200 bank stocks are paying their dividends
• Buy Telstra and these ASX dividend stocks in July

Motley Fool contributor Tristan Harrison has positions in Lovisa and Metcash. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Lovisa, Super Retail Group, and Wesfarmers. The Motley Fool Australia has positions in and has recommended Coles Group, Harvey Norman, Super Retail Group, and Wesfarmers. The Motley Fool Australia has recommended Jb Hi-Fi, Lovisa, Metcash, and Premier Investments. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

If you are wanting to build a strong portfolio, then having a few blue chips in there could be a good starting point.

But which blue chip ASX 200 shares could be buys in July?

Let’s take a look at three high-quality options for investors to consider buying:

Brambles Limited (ASX: BXB)

Analysts at UBS think that Brambles could be an ASX 200 blue chip share to buy in July.

Brambles is a supply chain solutions company that specialises in reusable pallets, crates, and containers for shared use.

The broker was pleased with the company’s performance during the first half and appears confident that the second half will be positive. It continues to believe this could support a re-rating of its shares in the near future.

UBS currently has a buy rating and $17.30 price target on Brambles’ shares. Based on its current share price of $14.45, this This implies potential upside of approximately 20% for investors over the next 12 months.

Goodman Group (ASX: GMG)

Another blue chip ASX 200 share that could be a buy in July is Goodman Group. It is a leading integrated commercial and industrial property company.

Goodman has been growing at a consistently solid rate over the last decade. This has been driven by the success of its strategy of developing high-quality industrial properties in strategic locations.

The good news is that this strategy remains in place and Goodman has a huge development pipeline that is expected to drive further growth. This includes data centres that are in demand due to the artificial intelligence megatrend.

Citi currently has a buy rating and $40.00 price target on its shares. This suggests potential upside of almost 15% for investors from current levels.

Woolworths Limited (ASX: WOW)

Finally, analysts at Goldman Sachs think that Woolworths could be a blue chip ASX 200 share to buy in July.

It is Australia’s largest supermarket operator. In addition, it owns Big W, Everyday Rewards, has a growing pet care business, and a collection of technology businesses such as Cartology and Quantium.

Goldman Sachs is feeling positive about Woolworths due to its industry leadership and potential for market share gains. The latter is expected to be driven by its vast loyalty program and omni-channel advantage.

The broker currently has a buy rating and $39.40 price target on its shares. Based on its current share price of $33.93, this suggests potential upside of 16% for investors over the next 12 months.

The post 3 super strong blue chip ASX 200 shares to buy in July appeared first on The Motley Fool Australia.

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Citigroup is an advertising partner of The Ascent, a Motley Fool company. 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 and 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.

If you are looking to make some new additions to your income portfolio, then it could be worth looking at the four ASX dividend stocks listed below.

They have all been named as buys and tipped to provide investors with attractive dividend yields and major upside. Here’s what you need to know about them:

Aurizon Holdings Ltd (ASX: AZJ)

Aurizon could be an ASX dividend stock to buy according to analysts at Ord Minnett. It is Australia’s largest rail freight operator. Each year it transports more than 250 million tonnes of Australian commodities.

The broker currently has an accumulate rating and $4.70 price target on its shares. This implies potential upside of 29% for investors.

As for dividends, the broker is forecasting partially franked dividends of 17.8 cents per share in FY 2024 and then 24.3 cents per share in FY 2025. Based on the latest Aurizon share price of $3.64, this will mean dividend yields of 4.9% and 6.7%, respectively.

Coles Group Ltd (ASX: COL)

Over at Morgans, its analysts think that this supermarket giant would be a top ASX dividend stock to buy now.

The broker has an add rating and $18.95 price target on its shares. This suggests that upside of 10% is possible from current levels.

In respect to income, Morgans is forecasting Coles to pay fully franked dividends of 66 cents per share in FY 2024 and 69 cents per share in FY 2025. Based on the current Coles share price of $17.19, this implies yields of approximately 3.8% and 4%, respectively.

GDI Property Group Ltd (ASX: GDI)

Analysts at Bell Potter have named this property company as an ASX dividend stock to buy.

The broker has a buy rating and 75 cents price target on its shares. This implies potential upside of 29% for investors.

Bell Potter also believes GDI Property is well-positioned to offer some big dividend yields in the coming years. It is forecasting dividends per share of 5 cents in FY 2024, FY 2025, and FY 2026. Based on the current GDI Property share price of 58 cents, this equates to dividend yields of 8.6% each year.

Woodside Energy Group Ltd (ASX: WDS)

A final ASX dividend stock that analysts are bullish on is Woodside Energy. It is of course one of the world’s largest energy producers.

Morgans thinks recently weakness has created a buying opportunity. It has an add rating and $36.00 price target on its shares. This suggests the upside of 27% is possible for investors.

As for income, the broker is forecasting fully franked dividends of $1.25 per share in FY 2024 and then $1.57 per share in FY 2025. Based on its current share price of $28.31, this represents dividend yields of 4.4% and 5.55%, respectively.

The post Coles and these ASX dividend stocks could offer huge returns appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in Woodside Energy 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 Coles Group. The Motley Fool Australia has recommended Aurizon. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

It is a good time to be a shareholder of ASX 200 bank stocks.

Not only have the big four banks been roaring higher recently, but some are about to reward their shareholders with their latest dividend payments.

Let’s now look and see what is being paid and when.

Westpac Banking Corp (ASX: WBC)

Let’s start with Australia’s oldest bank, Westpac. It has already paid its shareholders its interim dividend for FY 2024. That was paid out a couple of days ago on 25 June.

Westpac shareholders received a fully franked interim dividend of 90 cents per share, which was an increase of 25% on the prior corresponding period.

The ASX 200 bank stock will declare (or not) its next dividend in November with its full year results. After which, it is usually paid out in December.

ANZ Group Holdings Ltd (ASX: ANZ)

ANZ Bank is scheduled to pay its partially franked interim dividend next week on Monday 1 July.

When the big four bank released its half year results last month, it declared a 65% franked 83 cents per share dividend. Its next dividend is expected to be declared in November and then paid out to shareholders in December.

Macquarie Group Ltd (ASX: MQG)

This investment bank will also be paying a dividend next week. The ASX 200 bank stock is scheduled to pay its final dividend for FY 2024 on Tuesday 2 July.

When Macquarie released its full year results last month, it declared a 40% franked final dividend of $3.85 per share. This was down 14.5% on the prior corresponding period.

The bank is expected to release its half year results for FY 2025 and announce its interim dividend in November. Based on past dividends, that is likely to then be paid to eligible shareholders in mid to late December.

National Australia Bank Ltd (ASX: NAB)

This big four bank is scheduled to pay its latest interim dividend the following day on Wednesday 3 July.

Last month, the ASX 200 bank stock released its results and declared an 84 cents per share fully franked dividend.

As with the others, NAB’s final dividend is traditionally declared in November and then paid out in December.

Commonwealth Bank of Australia (ASX: CBA)

Australia’s largest bank operates with a financial year that ends 30 June. As a result, it won’t be paying out a dividend next week.

Traditionally, the bank will release its results and declare its dividends in both August and February, with dividend payments then made in March and September, respectively.

The post Here’s when CBA and these ASX 200 bank stocks are paying their dividends appeared first on The Motley Fool Australia.

More reading

• 3 reasons I think the CBA share price may crash!
• Where to invest your Westpac dividends
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• Own ANZ shares? You need to know these important dates
• Nine-year highs: NAB share price glides to highest level since 2015!

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

There are plenty of quality ASX dividend shares to choose from on the Australian share market.

But which ones could be great options for income investors?

Three that have been tipped as buys are listed below. Here’s why they could be worth a look:

APA Group (ASX: APA)

APA Group could be an ASX dividend share to buy according to analysts at Macquarie. It is an energy infrastructure business that owns, manages, and operates a diverse portfolio of gas, electricity, solar and wind assets.

The broker currently has an outperform rating and $9.40 price target on the company’s shares.

As for dividends, the broker believes that APA Group is on course to increase its dividend for the 20th year in a row. It is forecasting dividends per share of 56 cents in FY 2024 and then 57.5 cents in FY 2025. Based on the current APA Group share price of $8.32, this equates to 6.7% and 6.9% dividend yields, respectively.

Rural Funds Group (ASX: RFF)

Over at Bell Potter, its analysts think that Rural Funds could be an ASX dividend share to buy right now. It is a property company that owns a portfolio of high-quality assets across a number of agricultural industries.

These properties are predominantly leased to corporate agricultural operators on long-term agreements.

Bell Potter currently has a buy rating and $2.40 price target on its shares.

In respect to income, the broker is forecasting dividends per share of 11.7 cents in both FY 2024 and FY 2025. Based on the current Rural Funds share price of $2.04, this will mean dividend yields of 5.7% for investors.

Telstra Corporation Ltd (ASX: TLS)

A third ASX dividend share that could be a buy is Telstra.

That’s the view of analysts at Goldman Sachs, which remain positive on the telco giant despite a recent underwhelming guidance update.

The broker continues to believe that the “low risk earnings (and dividend) growth that Telstra is delivering across FY22-25, underpinned through its mobile business, is attractive.”

But the positives don’t end there. Goldman highlights that the company “has a meaningful medium term opportunity to crystallise value through commencing the process to monetize its InfraCo Fixed assets.”

Its analysts are forecasting fully franked dividends of 18 cents per share in FY 2024 and then 18.5 cents per share in FY 2025. Based on the current Telstra share price of $3.62, this equates to dividend yields of 5% and 5.1%, respectively.

Goldman currently has a buy rating and $4.25 price target on Telstra’s shares.

The post Buy Telstra and these ASX dividend stocks in July appeared first on The Motley Fool Australia.

More reading

• ASX expert: Time to buy Telstra shares
• 2 top ASX REITs to buy before yields fall alongside interest rates
• 2 ASX 200 retirement shares to buy in July
• 4 ASX income stocks for Aussie investors to buy now
• Buy Telstra shares due to its ‘excessive’ discount

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 Macquarie Group. The Motley Fool Australia has positions in and has recommended Apa Group, Macquarie Group, Rural Funds Group, and Telstra Group. 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 investments but aren’t a fan of stock picking, then it could be worth considering exchange-traded funds (ETFs).

That’s because they allow investors to buy a large collection of shares through a single investment. This makes it an easy way to diversify a portfolio.

But which ASX ETFs could be great options for investors in July? Let’s take a look at three:

Betashares Global Cash Flow Kings ETF (ASX: CFLO)

The first ASX ETF to look at is the Betashares Global Cash Flow Kings ETF

Analysts at Betashares recently named it as one to consider. They highlight that companies that generate high levels of free cash flow have a tendency to outperform broad global equity benchmarks over the medium to long term.

This could make the Betashares Global Cash Flow Kings ETF a great long term option for investors. This is because it focuses on global companies that demonstrate strong and consistent free cash flow generation, growth of free cash flow, and relatively low levels of debt.

Among its holdings are household names such as Alphabet (NASDAQ: GOOG) and Costco (NASDAQ: COST).

Vanguard Australian Shares Index ETF (ASX: VHY)

A second ASX ETF to look at is the Vanguard Australian Shares High Yield ETF.

It could be a good option if you’re looking for income from the share market. That’s because it provides investors with low-cost exposure to a portfolio of 70+ ASX shares that have higher forecast dividends relative to the market average.

But you’re not just buying the banks and miners. Vanguard highlights that security diversification is achieved by restricting the proportion invested in any one industry to 40% of the total ETF and 10% for any one company. It also points out that Australian Real Estate Investment Trusts (A-REITS) are excluded from the fund.

Among the dividend-paying shares you will be owning are giants BHP Group and Commonwealth Bank of Australia (ASX: CBA), as well as smaller companies such as Centuria Capital Group (ASX: CNI) and Dicker Data Ltd (ASX: DDR).

The ETF currently trades with a trailing dividend yield of 4.9%.

Vanguard MSCI Index International Shares ETF (ASX: VGS)

A final ASX ETF that could be a great option for investors in July is the Vanguard MSCI Index International Shares ETF.

It provides investors with access to approximately 1,500 of the world’s largest listed companies from major developed countries.

Vanguard highlights that investing internationally offers greater access to sectors such as technology and health care that aren’t as well represented on the Australian share market.

Among the ETF’s holdings are global giants from a range of industries. This includes Apple, Johnson & Johnson, JP Morgan, Nestle, and Visa.

The post 3 top ASX ETFs to buy in July appeared first on The Motley Fool Australia.

More reading

• 5 excellent ASX ETFs to grow your wealth
• 2 top ASX ETFs that offer excellent diversification
• Top ASX passive income shares to buy before June 30
• Why these 5 ASX ETFs could be quality options for investors
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Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. 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 Alphabet, Apple, Costco Wholesale, JPMorgan Chase, and Visa. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Johnson & Johnson and Nestlé. The Motley Fool Australia has positions in and has recommended Dicker Data. The Motley Fool Australia has recommended Alphabet, Apple, Vanguard Australian Shares High Yield ETF, and Vanguard Msci Index International Shares ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Two All Ordinaries Index (ASX: XAO) ASX defence shares are among a select basket of stocks “poised to thrive in the coming decade”.

That’s according to the fund managers at Tamim Asset Management.

The All Ords ASX defence shares in question are DroneShield Ltd (ASX: DRO) and Codan Ltd (ASX: CDA).

Now, both stocks have already been shooting the lights out.

The Codan share price has soared 60% over 12 months and is up 40% so far in 2024.

The DroneShield share price has rocketed an eye-watering 532% over 12 months and is up 301% year to date.

To put that in some perspective, the All Ords has gained 10% in 12 months and is up 2% in 2024.

Looking ahead, both ASX defence shares stand to be among the bigger beneficiaries of the AI revolution.

But that’s not why Tamim believes they’ll thrive over the next 10 years.

That investment rationale relates instead to their direct links to the global defence industry.

Government spending tailwinds

Successful international and ASX defence shares have some significant advantages over companies operating in other sectors due to the nature of government defence spending.

As Tamim pointed out, “substantial government spending provides a consistent revenue stream” for these companies.

Pointing to the defence budgets of the United States and Australia, the fund manager noted, “Government spending on defence remains robust, driven by the need to maintain national security and technological superiority.”

Atop those big spending packages, international and ASX defence shares also tend to benefit from long-term government contracts, providing investors with some security over next year’s revenue stream.

“By recognising these dynamics, investors can uncover quality businesses with strong tailwinds poised to thrive in the coming decade,” Tamim said.

All Ords ASX defence shares well-positioned to capitalise

Tamim highlights DroneShield, a leading provider of counter-drone and multi-mission unmanned systems solutions, as one of the promising players in the Australian defence sector.

The All Ords ASX defence share employs AI and machine learning to deliver advanced technologies for military, government, and commercial organisations in more than 70 countries.

According to Tamim:

In the most recent quarterly report, DroneShield reported incredible financial results for the first quarter of 2024, with revenue growing 10 times year-over-year and a significant increase in order intake.

The company has also expanded its global footprint, securing major contracts with military and government agencies, particularly in the US. Over the past 12 months, DroneShield’s share price has rocketed, reflecting the growing demand for counter-drone solutions and the company’s successful execution of its strategic initiatives.

As the threat of drone-related incidents continues to rise, DroneShield is well-positioned to capitalise on the increasing need for effective counter-drone technologies.

Tamim is also bullish on the outlook for Codan.

Codan develops rugged electronics solutions for government, corporate and consumer markets worldwide.

According to Tamim:

The company’s communications segment produces equipment used by military, law enforcement, humanitarian, and commercial organisations known for reliability and performance in harsh environments, making them ideal for defence applications.

Codan’s focus on innovation and quality ensures it remains a trusted supplier in the defence communications market. The company’s technologies also include metal detection…

On the performance front, the fund manager added:

The company delivered a strong H1 FY24 result, with group revenue up 26% to $265.9 million and net profit after tax increasing 24% to $38.1 million compared to the prior corresponding period.

The Communications segment achieved 12.5% revenue growth, while Metal Detection revenues surged 49%.

Despite higher expenses due to acquisitions and investments, earnings before interest & tax (EBIT) and net profit after tax (NPAT) grew 31% and 24% respectively. Net debt increased to $82.5 million after funding $30.3 million for the Eagle and Wave Central acquisitions.

Looking ahead, Tamim noted that the ASX defence share expects its Communications revenue growth to exceed the top end of its 10% to 15% target range.

The post 2 All Ords ASX defence shares ‘poised to thrive’ appeared first on The Motley Fool Australia.

More reading

• 5 ASX 300 shares smashing new highs while the market sinks
• Why DroneShield, Paladin Energy, Red 5, and Synlait shares are falling
• Down 12% since Thursday, has the DroneShield share price topped out?
• Why Bigtincan, DroneShield, Guzman Y Gomez, and Helia shares are racing higher
• DroneShield shares hit record high on major new AI order

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 positions in and has recommended DroneShield. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

On Wednesday, the S&P/ASX 200 Index (ASX: XJO) had a difficult session and tumbled lower. The benchmark index fell 0.7% to 7,783 points.

Will the market be able to bounce back from this on Thursday? Here are five things to watch:

ASX 200 expected to sink again

The Australian share market looks set to sink again on Thursday despite the positive night of trade on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 86 points or 1.1% lower this morning. In the United States, the Dow Jones was up 0.05%, the S&P 500 rose 0.15% and the Nasdaq pushed 0.5% higher.

Oil prices soften

ASX 200 energy shares including Beach Energy Ltd (ASX: BPT) and Woodside Energy Group Ltd (ASX: WDS) could have a poor session after oil prices softened overnight. According to Bloomberg, the WTI crude oil price is down 0.25% to US$80.64 a barrel and the Brent crude oil price is down 0.1% to US$84.97 a barrel. A surprise increase in US crude inventories weighed on oil prices.

Buy Paladin Energy shares

Paladin Energy Ltd (ASX: PDN) shares are good value according to analysts at Bell Potter. In response to recent share price weakness and news of a plan to acquire Fission Uranium, the broker has upgraded the uranium producer’s shares to a buy rating with an improved price target of $16.10. It said: “PDN has sold off since we moved to a Hold in May-24. We see this as a potential buying opportunity irrespective of the transaction.”

Gold price falls to two-week low

It could be a poor session for ASX 200 gold shares such as Newmont Corporation (ASX: NEM) and Northern Star Resources Ltd (ASX: NST) today after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.9% to US$2,309.8 an ounce. Stronger bond yields reduced the appeal of the precious metal and sent it to a two-week low.

Iron ore price rises

BHP Group Ltd (ASX: BHP) and Rio Tinto Ltd (ASX: RIO) will be on watch on Thursday. That’s because the benchmark iron ore price raced higher overnight and could give these miners a lift ahead of today’s (expected) red session. According to the AFR, the iron ore price is up a sizeable 3.2% today. This appears to have driven by increased buying in China’s spot market amid bets that it will soon unveil more stimulus to boost its struggling property market.

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

More reading

• What is the outlook for Woodside shares in FY25?
• Here are the top 10 ASX 200 shares today
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• Why Cettire, Collins Foods, Liontown, and Northern Star shares are dropping today
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Motley Fool contributor James Mickleboro has positions in Woodside Energy 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 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 Woodside Energy Group Ltd (ASX: WDS) share price has sunk 25% in ten months, as shown on the chart below. After a difficult period for the ASX oil and gas share, investors may be wondering if the next 12 months could be better.

The Australian tax year is about to finish, but Woodside’s financial year follows the calendar year. So, while FY25 is about to start for most of us, Woodside still has another six months left of its 2024 financial year.

We’re going to look at the outlook for the company, encompassing both Woodside’s FY24 and FY25.

Company’s outlook commentary

The business has guided that it’s expecting to produce between 185 million barrels of oil equivalent (MMboe) and 195 MMboe in 2024. We won’t learn about its 2024 annual production numbers until January 2025, when it announces its 2024 fourth-quarter update. How much the company produces and the price it gets for that production can be key for Woodside shares.

It has also guided that it’s expecting capital expenditure of between $5 billion and $5.5 billion in 2024.

The business continues to work on its three major growth projects. Commissioning activities have been underway at Sangomar in Senegal for the last few months. The company said it was on track for its first oil in the middle of this year.

Woodside’s Scarborough and Pluto Train 2 projects were 62% complete at the end of the 2024 first quarter. The company says it’s on target for its first LNG cargo in 2026.

The last update we heard about the sales price for its production was in the first quarter of 2024. Woodside said its average realised price was US$63 per barrel of oil equivalent, which was down 5% quarter over quarter and 25% year over year. There continues to be energy market volatility.

Analyst forecasts for Woodside shares

The broker UBS said in a note in April that there is strong demand for LNG in North Asia, though it also sees “a global LNG surplus arising from 2027+”, which it believes is already putting down pressure on fixed slope pricing for new sales and purchase agreements. This “amplifies the need for accelerated LNG marketing activities”, according to UBS.

Looking at the forecasts for Woodside’s FY24, UBS predicts Woodside can generate US$12.36 billion of revenue, US$4.2 billion of earnings before interest and tax (EBIT), US$2.34 billion of net profit after tax (NPAT) and pay an annual dividend per share of 98 cents. The broker suggested Woodside could finish 2024 with US$2.7 billion of net debt.

UBS is only expecting a slight improvement in FY25. The broker expects revenue to be US$12.9 billion, EBIT to be US$4.27 billion, net profit to be US$2.48 billion and that the ASX oil and gas share could pay an annual dividend per share of US$1.05.

Woodside share price snapshot

The Woodside share price is down around 10% since the start of 2024.

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

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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.