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After a solid start to the week, the S&P/ASX 200 Index (ASX: XJO) gave back all its gains and more on Friday. This led to the index recording a disappointing 1.6% weekly decline to finish at 5,927.8 points.

Four shares that didn’t let that stop them from recording strong gains are listed below. Here’s why they were the best performers on the ASX 200 last week:

The AP Eagers Ltd (ASX: APE) share price was the best performer on the ASX 200 last week with a 12.2% gain. Investors were buying the auto retailer’s shares after it released a trading update. Although it confirmed that trading conditions are difficult, it remains confident it will report an underlying profit from continuing operations of $40.3 million during the first half. This represents a 23.6% decline from the prior corresponding period. In addition to this, AP Eagers revealed that it had achieved permanent cost reductions of $78 million per year in the previous three months.

The Credit Corp Group Limited (ASX: CCP) share price wasn’t far behind with an 11.3% gain. The catalyst for this was the release of its full year results. The debt collector delivered a net profit after tax of $15.5 million. This was a sharp year on year decline and driven by impairments and additional provisioning due to the pandemic. However, excluding one-off adjustments, net profit after tax would have been up 13% to $79.6 million.

The GWA Group Ltd (ASX: GWA) share price was on form last week and recorded a 10.9% gain. This appears to have been driven by a broker note out of Credit Suisse. It upgraded the home products company’s shares to an outperform rating with a $3.05 price target. The broker made the move after online searches appeared to indicate that spending on bathroom renovations was on the rise. Combined with its cheap valuation, the broker thinks GWA is a buy.

The Super Retail Group Ltd (ASX: SUL) share price stormed 10.7% higher last week thanks to the release of a stronger than expected full year update. That update revealed that its sales bounced back very strongly in May and June. So much so, Super Retail actually delivered solid full year sales growth of 4.2% in FY 2020. Management also advised that it expects to deliver growth in its pro forma EBITDA. This is expected in the range of $327 million and $328 million, up from $315 million in FY 2019. Though, this excludes one-offs such as its employee underpayment remediation costs.

More reading

• These were the worst performing shares on the ASX 200 last week
• ASX 200 drops 2%, ASX banks fall, Super Retail jumps
• Why I’m worried about the US markets right now
• Latest ASX stocks upgraded by top brokers to “buy” today
• US tech shares deliver massive results – what does it mean for ASX tech shares?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re looking to add some dividend shares to your portfolio next week, then I think the three listed below could be top options.

Here’s why I think these dividend shares are in the buy zone:

Fortescue Metals Group Limited (ASX: FMG)

The first ASX dividend share to consider buying is Fortescue. I think it could be a good option due to the strong free cash flow it is generating thanks to favourable iron ore prices and its low costs. In respect to the latter, in FY 2021 Fortescue’s guidance is for cash costs of US$13.00 to US$13.50 per wet metric tonne. This is materially lower than the price it is commanding for its iron ore at present. Another positive is that the company has a strong balance sheet, which should mean it is well-positioned to return the majority of its free cash flow to shareholders. Based on the current Fortescue share price, I estimate that its shares offer a fully franked FY 2021 dividend yield of at least 5%.

Rural Funds Group (ASX: RFF)

Another top ASX dividend share to buy is Rural Funds. The agriculture-focused property group appears well-positioned to grow its distribution at a consistent and solid rate over the long term. This is thanks to its high quality assets and their long tenancy agreements which have periodic increases built into them. In FY 2021 Rural Funds expects to pay a 11.28 cents per share distribution. Based on the latest Rural Funds share price, this equates to a 5.5% yield.

Telstra Corporation Ltd (ASX: TLS)

A final ASX dividend share I would consider buying is Telstra. I like the telco giant due to its strong business model, defensive qualities, and generous dividend yield. Another positive is the progress it is making with its T22 strategy. This includes material cost cutting and the simplification of its business. Combined with the easing NBN headwind, I believe Telstra’s future is looking increasingly positive. Based on the current Telstra share price, I estimate that Telstra’s shares offer a fully franked 4.8% dividend yield.

More reading

• 3 ASX dividend shares for dependable income
• I would buy ResMed and these ASX blue chip shares in August
• Buy these ASX ETFs for dividends in August
• Telstra and 2 more ASX shares I’d like to buy with $5,000
• Reliable ASX dividend shares still exist

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended RURALFUNDS STAPLED and Telstra Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Today’s volatile stock market may cause many investors to avoid buying cheap stocks. They may determine that other assets with lower risks are a better option than companies that face challenging operating conditions in many cases.

However, the track record of the stock market shows that buying undervalued shares can lead to high returns over the long run. As such, now could be the right time to purchase high-quality businesses that trade at cheap prices.

Here’s how you could achieve that goal, and in doing so improve your financial prospects in the coming years.

Identifying sectors with cheap stocks

Perhaps the first step to take when seeking to find cheap stocks is to identify which sectors currently offer good value for money. Although the stock market has rebounded since the market crash, some sectors continue to contain companies with extremely low valuations. In many cases, undervalued sectors have uncertain near-term outlooks that have caused investors to demand wide margins of safety.

Clearly, some sectors may be cheap for good reason. They may be unable to fully recover from the challenges they face, and the business models of their members may prove obsolete due to changing consumer trends. However, by identifying sectors with near-term challenges and long-term recovery potential, you may be able to unearth a large number of good value stocks that can be added to your portfolio.

Annual reports

Just as some sectors may be undervalued for good reason, some cheap stocks may have very undesirable future prospects. Therefore, accessing annual reports may help you to understand which companies offer recovery potential, and which businesses may fail to experience a sustained rally in the coming years.

Annual reports are free to access for any investor, and contain a vast amount of information about a business. Together with recent trading updates, they allow an investor to paint an accurate picture of the strengths and weaknesses of a business that can be used to value it. A buying opportunity may exist if its stock price is currently significantly below its intrinsic value.

Relative pricing

At the present time, it is difficult to ascertain whether cheap stocks offer good value for money on a standalone basis. Their outlooks are opaque due to a challenging economic future.

Therefore, it could be prudent to identify businesses that trade on lower valuations than their sector peers. Although no two businesses are ever identical, companies operating in the same sector and geographies are likely to face similar risks and growth opportunities. By comparing their prices, it may be possible to determine whether they offer investment appeal for the long term.

Clearly, not all cheap stocks will deliver a successful recovery. However, the track record of the stock market suggests that buying a diverse range of businesses at low prices can lead to high returns in the long run.

More reading

• How to turn $20,000 into over $200,000 in 10 year with ASX shares
• These were the best performing shares on the ASX 200 last week
• 3 of the best ASX dividend shares to buy right now
• These were the worst performing shares on the ASX 200 last week
• 3 steps I’d take when investing in today’s volatile stock market to make a million

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) was out of form last week and tumbled notably lower. The benchmark index ended the week 1.6% lower than where it started it at 5,927.8 points.

Four shares that fell more than most are listed below. Here’s why they were the worst performers on the ASX 200 index last week:

The IOOF Holdings Limited (ASX: IFL) share price was the worst performer on the ASX 200 last week with a 16% decline. Investors were selling the fund manager’s shares after the release of its fourth quarter update. During the quarter IOOF’s funds under management, advice and administration (FUMA) grew to $202.3 billion. This represents a quarterly increase of $6.7 billion or 3.4%. However, taking the shine off its FUMA update was its earnings commentary. IOOF advised that it expects to report an underlying net profit after tax of approximately $128 million to $130 million in FY 2020. This will be a ~35% decline from the $198 million it reported a year earlier.

The Sandfire Resources Ltd (ASX: SFR) share price wasn’t far behind with a 15.5% decline. Investors were selling the copper producer’s shares after a strong four quarter update was overshadowed by underwhelming guidance for FY 2021. A very positive fourth quarter led to full year copper production coming in at 72,238 tonnes and gold production totalling 42,263 ounces. This was achieved with C1 costs of 72 U.S. cents per pound. However, next year management expects copper production to reduce to between 67,000 and 70,000 tonnes and gold production to reduce to 36,000 to 40,000 ounces. But even worse, management is expecting its C1 costs to increase at least 25% to between 90 U.S. cents and 95 U.S. cents.

The IGO Ltd (ASX: IGO) share price was out of form and fell 15.1% over the period. The nickel producer’s shares came under significant pressure after its guidance for FY 2020 fell short of expectations. IGO expects its revenue to be $892.4 million and its underlying earnings before interest, tax, depreciation and amortisation (EBITDA) to come in at $459.6 million. The latter falls well short of the market’s expectations. Analysts at Macquarie, for example, were expecting EBITDA of $530 million.

The AMP Limited (ASX: AMP) share price crashed a disappointing 14.3% lower last week. This follows the release of an update on its expectations for the first half of FY 2020. The struggling financial services company revealed that it expects to report underlying profit from retained businesses in the range of $140 million to $150 million. This was below the market’s expectations and due to a range of negative factors including market volatility and a credit loss provision in AMP Bank.

More reading

• These were the best performing shares on the ASX 200 last week
• ASX 200 drops 2%, ASX banks fall, Super Retail jumps
• Why I’m worried about the US markets right now
• Latest ASX stocks upgraded by top brokers to “buy” today
• US tech shares deliver massive results – what does it mean for ASX tech shares?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Investors have experienced a highly volatile stock market so far in 2020. Looking ahead, risks such as a continued rise in the number of coronavirus cases and geopolitical uncertainty in North America and Europe could contribute to continued heightened fears among investors.

Therefore, it may become increasingly important to build a diverse portfolio of high-quality businesses with sound finances when seeking to make a million. Furthermore, holding some cash may enable you to capitalise on temporary declines in stock prices that may occur over the coming months.

Diversification in a volatile stock market

Diversification is always a key part of investing, but may become even more crucial in a volatile stock market. Share prices could come under significant pressure across many sectors over the coming months. Therefore, if you own a wide range of businesses, the impact on your portfolio’s performance from disappointing returns among a small number of holdings is unlikely to be extreme.

With the cost of sharedealing having fallen over recent years, it is now possible for the vast majority of investors to buy a wide range of shares in order to diversify. Diversification may also boost your returns through allowing you to take advantage of the growth opportunities in a wider range of sectors at a time when it is difficult to predict which industries will prosper in a post-coronavirus world.

Financially-sound businesses

A volatile stock market may also mean that investing in financially-sound businesses becomes more important. Over the past decade, companies with weak balance sheets and questionable business models have often survived due to strong economic growth being present.

However, with the economy’s outlook being weak and consumer sentiment being at relatively low levels in many countries, only the strongest companies may prosper over the coming years. As such, focusing your capital on those businesses that have modest debt levels, strong cash flow and wide economic moats could prove to be profitable. They may not be among the cheapest shares around, but their higher quality versus sector peers could make them more attractive on a risk/reward basis.

Cash holdings

Holding some cash in a volatile stock market could be a sound move. Of course, low interest rates mean that cash is unlikely to offer a high return over the long run. It could even reduce your spending power over the coming years if inflation moves higher. Therefore, relying on it to boost your chances of making a million is not a sound idea.

However, an uncertain economic outlook means that a second market crash cannot be ruled out. This may present more attractive buying opportunities over the coming months that can be capitalised upon by investors who hold cash today. Buying high-quality stocks at even lower prices may increase your prospects of obtaining a seven-figure portfolio.

More reading

• Worried about a second stock market crash? I’d start investing like Warren Buffett
• Forget gold and Bitcoin. I’d buy cheap stocks after the market crash to make a million
• Stock market crash: why I’d grab this rare chance to buy cheap shares
• 3 ASX dividend shares for dependable income
• ASX 200 drops 2%, ASX banks fall, Super Retail jumps

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post 3 steps I’d take when investing in today’s volatile stock market to make a million appeared first on Motley Fool Australia.

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The risk of a second stock market crash may be causing some investors to sit on the sidelines and await greater clarity in the prospects for the global economy. However, it is during the riskiest periods for the stock market that the best investing opportunities can come along.

As such, using the value investing strategy of Warren Buffett could be a profitable move. It may enable you to invest today and generate high returns in the coming years.

A second market crash

The previous performance of the stock market suggests that a second market crash would not be a major surprise. There are still many risks facing investors that have the potential to cause a fall in investor confidence, as well as to weaken the operating environments across a wide range of industries.

Risks include a continued rise in the number of coronavirus cases, possible difficulties in the upcoming United States election, and a continued stalemate in Brexit talks. Any of those risks, as well as a great many others, could cause a fall in stock prices that undoes all of the gains made over recent months during the market rebound.

Value investing in an uncertain market

The prospect of a second stock market crash may naturally cause some investors to become fearful. They may worry about the potential for paper losses over the near term that damage their wealth, albeit on a temporary basis.

Other investors, such as Warren Buffett, view falls in stock prices as opportunities to buy cheap stocks as opposed to threats to their long-term wealth. Through having a value investing focus, you can buy the most attractive stocks available when they trade at wide discounts to their intrinsic value.

The opportunities to do so often coincide with the riskiest periods from an economic perspective. However, with no bear market or global recession having ever lasted in perpetuity, long-term investors who buy a diverse range of undervalued shares are relatively likely to enjoy impressive returns from their recovery.

Starting to invest in undervalued shares today

While the potential for another market crash may dissuade some investors from buying shares today, many stocks appear to offer wide margins of safety. This could mean that the stock market has factored in many of the risks they face, and that they offer attractive risk/reward opportunities.

Therefore, now could be the right time to start building an equity portfolio. Through focusing your capital on high-quality businesses with strong balance sheets and wide economic moats, just as Warren Buffett has done throughout his career, you could enjoy high returns in the long run. Doing so may not make you a billionaire, but it could enhance your financial future and help you to enjoy a greater degree of financial freedom in the coming years.

More reading

• 3 steps I’d take when investing in today’s volatile stock market to make a million
• Forget gold and Bitcoin. I’d buy cheap stocks after the market crash to make a million
• Stock market crash: why I’d grab this rare chance to buy cheap shares
• 3 ASX dividend shares for dependable income
• ASX 200 drops 2%, ASX banks fall, Super Retail jumps

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Worried about a second stock market crash? I’d start investing like Warren Buffett appeared first on Motley Fool Australia.

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The stock market crash has provided numerous opportunities for investors to purchase cheap stocks. Despite this, some investors may feel that other assets such as gold and Bitcoin offer superior growth prospects. After all, they have risen sharply in price of late, and may have outperformed some stocks over recent months.

However, the track record of the stock market suggests that it offers long-term recovery potential. As such, and with gold and Bitcoin having their own risks, equities could prove to be a better means of making a million than other assets.

Cheap stocks: a buying opportunity

The stock market’s track record suggests that buying cheap stocks can be an effective means of making a million. It has always experienced periods of boom and bust, with neither of them lasting forever. Therefore, investors who can buy undervalued businesses during downturns can be among the biggest beneficiaries during the likely recovery.

At the present time, the continued risk of a second market crash means that many shares are trading on low valuations. In some cases, they are not wholly merited due to the financial strength and competitive advantage of businesses in sectors that have long-term growth potential. As such, there appear to be opportunities for investors to purchase bargain shares even after the stock market’s recent rebound from its decline in February/March.

Clearly, some cheap stocks are unlikely to survive the challenging outlook faced by the world economy. As such, it is imperative for investors to try and purchase the best quality companies they can find, and to diversify across numerous industries and regions. This may reduce your overall risks, and help to provide sustained growth for your portfolio.

Bitcoin and gold: an attractive risk/reward opportunity?

Of course, some investors may seek to avoid cheap stocks in favour of other assets such as Bitcoin and gold. While their prices may have risen sharply, they appear to offer less attractive risk/reward investing opportunities than a portfolio of equities.

For example, gold’s appeal could deteriorate in the coming years as investor sentiment gradually improves. Furthermore, it currently trades close to a record high, which may indicate that there is limited scope for a price rise over the coming years.

Similarly, Bitcoin may not be an attractive investment opportunity. Its limited size and ongoing regulatory risks could mean that its price level is overly generous. And, with the virtual currency lacking fundamentals, challenges in valuing it may mean that buying cheap stocks is a far more logical step for long-term investors.

Therefore, while further difficulties may be ahead for stock market investors, low price levels and the recovery potential of equities mean that now could be the right time to buy a diverse range of companies to make a million.

More reading

• Stock market crash: why I’d grab this rare chance to buy cheap shares
• 3 ASX dividend shares for dependable income
• ASX 200 drops 2%, ASX banks fall, Super Retail jumps
• Is the REA Group share price a buy?
• Why Amazon’s share price is set to leap on the opening bell

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Forget gold and Bitcoin. I’d buy cheap stocks after the market crash to make a million appeared first on Motley Fool Australia.

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Despite the recent market rebound, there are still a relatively large number of cheap shares that could deliver high returns in the long run.

Certainly, their prices could fall further in the short run due to risks such as a continued rise in global coronavirus cases. However, the recovery potential of the stock market suggests that buying undervalued companies today can lead to high returns compared to other assets.

Moreover, some share prices are rarely as cheap as they are at the moment. Grabbing wide margins of safety that may be temporary in nature could, therefore, be a logical move.

A rare opportunity to buy cheap shares

The last time there were so many cheap shares available to buy was probably during the global financial crisis in 2008/09. Although the recent market rebound means that some sectors now appear to be fully valued, other industries continue to have extremely undervalued shares on offer. In some cases, they trade well below their historic average valuations. This could indicate that they offer good value for money, and that investors have priced in many of the risks they face.

Such opportunities are generally rare. Over a decade has elapsed since the last global bear market and recession, and many investors are likely to be able to count on one hand how many times they have experienced such periods in their own lives. Therefore, taking advantage of the opportunities available today could be a sound move that allows you to buy stocks when they are unusually low, and sell them at a later date when they are relatively likely to trade at higher prices.

Recovery potential

Buying cheap shares today could allow investors to capitalise on a sustained recovery over the long term. As per the global financial crisis, and other past bear markets, a recovery in the stock market’s price level seems likely. Even though there are risks facing the world economy, the impact of stimulus packages such as quantitative easing and tax changes in many major economies could lead to a strong recovery over the coming years.

As such, focusing your capital on undervalued shares could be a more profitable strategy than buying other assets such as cash and bonds. Although less risky assets may offer a higher chance of a return of capital, their profit potential may be very limited in an era when interest rates look set to persist at low levels. In fact, fixed-income securities and cash savings accounts may erode your spending power if monetary policy measures such as quantitative easing prompt a period of higher inflation.

While buying cheap shares today may not necessarily feel like a natural move for any investor to make, history suggests that it is a logical step for those individuals with long-term horizons. Some stocks are rarely this cheap, and could offer high total returns in the coming years.

More reading

• 3 ASX dividend shares for dependable income
• ASX 200 drops 2%, ASX banks fall, Super Retail jumps
• Is the REA Group share price a buy?
• Why Amazon’s share price is set to leap on the opening bell
• Thorn Group share price surges 30% on quarterly report

Motley Fool contributor Peter Stephens has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Some dividend yields are looking sky high right now – hello, Flight Centre Travel Group Ltd (ASX: FLT). But uncertainty is also at highly elevated levels. Dividends are inherently uncertain. They can be cut or not paid at all if funds are not available. Investors tend to prefer some degree of certainty around whether they will receive investment income. Companies that operate in industries with reliable demand are more likely to be able to pay consistent dividends. Here we take a look at three ASX shares for dependable dividends. 

3 dependable ASX dividend shares

AGL Energy Limited (ASX: AGL)

Electricity is a non-negotiable necessity, so the revenues of power generator AGL are fairly certain. AGL targets a payout ratio of 75% of underlying profit after tax and is currently offering a dividend yield of 6.68%. In the first half of FY20, AGL declared an interim dividend of 47 cents per share. This was down 8 cents per share, consistent with AGL’s payout ratio as underlying profit was down 20% for the half year. This was due to a power station outage, lower wholesale gas prices, and reduced gas volumes. AGL has predicted full year profits in the upper half of its guidance range of between $780 million and $860 million. 

Fortescue Metals Group Limited (ASX: FMG) 

Fortescue produces iron ore which is the main ingredient in steel. Iron ore is the world’s most used metal accounting for about 95% of metal tonnage produced worldwide. This ASX dividend share targets a payout ratio of 50% to 80% of net profits and is currently offering a dividend yield of 5.74%. In the June quarter, Fortescue reported record iron ore shipments of 47.3 million tonnes. Full year shipments were 178.2 million tonnes, exceeding the top end of guidance. FY21 guidance is for iron ore shipments of 175 – 180 million tonnes. Fortescue paid a fully franked FY20 interim dividend of 76 cents per share, up from 30 cents per share in 1H19. 

Orora Ltd (ASX: ORA) 

Packaging provider Orora supplies customers with glass bottles, aluminium cans, caps and closures, boxes, cartons, and more. Packaging is ubiquitous – a necessity in making products available for consumption. This ASX dividend share is currently offering a yield of 7.07% but some have questioned how sustainable this is given Orora’s high payout ratio. Orora returned $600 million to shareholders earlier this year via a special dividend of $450 million and a capital return of $150 million. While COVID-19 will have a negative financial impact, however, Orora’s estimate limits this to $25 million in the second half. 

More reading

• Want to start investing? Here’s how
• Reliable ASX dividend shares still exist
• Is the Fortescue share price too expensive?
• Why Fortescue and these ASX 200 shares are at record highs
• ASX 200 rises 0.75%, Fortescue impresses and Macquarie remains robust

Motley Fool contributor Kate O’Brien has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Flight Centre Travel Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The S&P/ASX 200 Index (ASX: XJO) fell by just over 2% today to 5,928 points.

The number of COVID-19 case numbers continue to mount in Victoria and the NSW cases continue to edge higher.

Super Retail Group Ltd (ASX: SUL) was a bright spot

The Super Retail share price rose by 9.5% today, it was a shining light on a pretty negative day for the ASX 200.

The retailer announced updated expectations for the FY20 year with the full year result expected on 24 August 2020.

In the 52 weeks to 27 June 2020, three of the company’s four core businesses achieved solid sales growth. Supercheap Auto sales increased 7.6%. Rebel sales grew 3.3% and BCF sales increased by 4%. However, Macpac sales declined by 5%. Overall, total sales grew by 4.2% with like for like sales growth of 3.6%.

Super Retail revealed that sales rebounded strongly during the fourth quarter as the easing of COVID-19 restrictions led to a significant uplift in domestic tourism and travel, personal fitness and outdoor leisure activities. In April there was a 26.2% decline in like for like monthly sales during the peak of the COVID-19 lockdown. But then sales increased by 26.5% in May. In June the momentum continued with like for like sales growth of 27.7%.

The company also announced some preliminary unaudited financial results for FY20.

Total revenue was approximately $2.82 billion, up from $2.71 billion.

Pro forma segment earnings before interest, tax, depreciation and amortisation (EBITDA) is expected to come between $327 million to $328 million – up from $315 million in FY19. Pro forma segment earnings before interest and tax (EBIT) is expected to be between $235 million to $236 million – up from $228 million.

Pro forma normalised net profit expected to come between $153 million and $154 million. The FY19 profit was $153 million. These pro forma numbers exclude $54 million of ‘abnormal items’.

ASX banks take a tumble

The big four ASX banks were among the largest hits on the ASX 200 today.

Australia and New Zealand Banking Group (ASX: ANZ) suffered a share price fall of around 2.2%.

The Commonwealth Bank of Australia (ASX: CBA) share price dropped by around 2.75%.

The National Australia Bank Ltd (ASX: NAB) share price fell by approximately 2.5%.

Finally, the Westpac Banking Corp (ASX: WBC) share price dropped 3.3%.

Most of the ASX 200 was actually in the red today. Whilst Super Retail was one of the best performers, it was another painful day for a business which has suffered a lot recently:

AMP Limited (ASX: AMP)

The AMP share price dropped close to 13% today after giving an update that showed its underlying profit is expected to halve in the upcoming FY20 half year result.

AMP said that the Australian wealth management division is expecting operating earnings of approximately $60 million.

AMP Capital is expecting operating earnings of approximately $70 million.

The AMP Bank division is expecting operating earnings of around $50 million. AMP Bank is expecting a credit loss provision of $25 million due to COVID-19 related economic conditions.

The CEO of the ASX 200 share, Francesco De Ferrari, said: “AMP has taken decisive action to support clients and employees and maintain a strong and resilient business, as COVID-19 continues to impact investment markets and the broader economy.

“Our strong capital position and liquidity have positioned us well to respond, though our first half results have been impacted by the market volatility.

“The pandemic has presented many challenges but has not distracted us from our mission to transform AMP into a simpler, client-led, growth orientated business.

“In the first half, we have made significance progress in delivering our strategy including completing the highly complex sale of AMP Life which simplifies our portfolio and sets us up well for the future.”

More reading

• Why I’m worried about the US markets right now
• Latest ASX stocks upgraded by top brokers to “buy” today
• US tech shares deliver massive results – what does it mean for ASX tech shares?
• Brokers name 3 ASX 200 shares to buy right now
• Why Afterpay, Bapcor, NRW, & Super Retail shares are climbing higher today

Motley Fool contributor Tristan Harrison has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Super Retail Group Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post ASX 200 drops 2%, ASX banks fall, Super Retail jumps appeared first on Motley Fool Australia.

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