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It’s probably fair to say that the CSL Limited (ASX: CSL) share price has been stuck in the mud for a while now. CSL shares are today trading at $299.24 a share at the time of writing. That’s up 1.99% today but still leaves the CSL share price down by just under 4% over the past 12 months.

Cast your minds back to February 2020, and we find the last time CSL shares hit an all-time high.

Back then, the ASX 200 healthcare giant saw a high of $342.75. That’s a level we haven’t seen since. In fact, as it stands today, CSL’s current 52-week high stands at $319.78 a share — reached at the end of last year.

Today, CSL shares are still more than 6% under that 52-week high, as well as almost 13% below the all-time record high we saw back in 2020.

The company is also only 10% above the lows that CSL shares reached during the worst of the COVID crash of 2020. Other ASX blue chips have done far better. For instance, Commonwealth Bank of Australia (ASX: CBA) shares have soared more than 65% since their COVID bottom.

So CSL shareholders have now endured more than two years of share price stagnation, with only CSL’s sub-1% dividend yield for comfort.

But does this mean it’s the darkest before the dawn for CSL shares? Is the company in the buy zone today?

Is the CSL share price a buy today?

Well, yes, according to one ASX broker anyway. As my Fool colleague James covered last month, broker Morgans recently came out with an add rating for the CSL share price.

Although the broker trimmed its 12-month share price target, it’s still at $321.30 a share. This would result in an upside of almost 11% from the current share price.

Morgans wasn’t overly enamoured with the company’s FY22 earnings results last month, which highlighted that the company’s “near term challenges remain”. But the broker also noted that “underlying growth is solid” and ” strong plasma collection growth and ongoing demand across both Behring and Seqirus underpin strong growth and continued momentum”.

But Morgans isn’t the only ASX expert seeing value in the CSL share price today. My Fool colleague Tony recently interviewed SG Hiscock portfolio manager Hamish Tadgell.

Tadgell named CSL as one of the stocks he would own if the share market closed tomorrow for four years. He described the company as “a late-cycle recovery play and it’s an incredibly good business spending $1 billion a year on R&D, and got so many growth options in it”.

So it seems there is some consensus among more than one ASX expert that CSL shares have a bright future. Shareholders will no doubt welcome these assessments.

At the current CSL share price, this ASX 200 blue chip health share has a market capitalisation of $144 billion.

The post The CSL share price is still trading just 10% above its COVID-crash low. Is it a buy? appeared first on The Motley Fool Australia.

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More reading

• Fundie reveals the 2 ASX shares he’d buy and hold for 4 years
• Should all ASX investors be buying defensive shares right now?
• Why is the CSL share price on the slide today?
• Want to snare the next CSL dividend? Read this
• 5 ASX 200 shares turning ex-dividend tomorrow

Motley Fool contributor Sebastian Bowen has positions in CSL Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. 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.

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What an outstanding past couple of months it has been for the Pilbara Minerals Ltd (ASX: PLS) share price.

After briefly touching a year-to-date low of $1.975 on 14 June, the lithium producers’ shares haven’t looked back.

Yesterday, the share moved into uncharted territory to reach $4.03 apiece.

However, the momentum hasn’t stopped there, as it now trades at $4.21 – a new record high.

Let’s take a look at what is driving these astronomical gains.

Pilbara Minerals shares power ahead

Investors are bidding up the company’s shares following a broader uplift across the S&P/ASX 200 Materials (ASX: XMJ) sector.

For context, the index is up 2.35% making it the second-best performer on the ASX Indices.

Other lithium shares are also receiving a much-welcomed boost today. Sayona Mining Ltd (ASX: SYA) and Liontown Resources Ltd (ASX: LTR) shares are up 11.82% and 7.54%, respectively.

Despite no news coming from Pilbara Minerals or either of the above companies, it appears investors are buoyant on the lithium industry.

As reported by ABC News, a total of 95,256 new vehicles were sold in August, which was a 17.3% jump on last month.

In addition, more people are buying electric vehicles (EVs) as sales hit their highest level ever – around 4.4% of all new vehicle sales.

On the back of these numbers being extremely positive, there is belief that EV sales will pick up the pace in Australia. In European markets, for example, there are incentives to buy EVs and they are priced cheaper than petrol vehicles.

Should EV sales data continue to reach new heights, this could bode well for shares in Pilbara Minerals and other lithium companies.

Pilbara Minerals share price snapshot

On the back of strong lithium prices, the Pilbara Minerals share price has rocketed by 31.5% in 2022.

In comparison, the materials sector has fallen 8.38% over the same timeframe.

According to ANZ Share Investing, JP Morgan is bullish on Pilbara Minerals shares, raising its outlook to overweight from neutral.

Furthermore, the broker raised its price target by 17% to $4.10 per share. That’s roughly in line with where the share trades today.

Pilbara Minerals commands a market capitalisation of approximately $11.78 billion.

The post Why is the Pilbara Minerals share price surging 6% to another all-time high today? appeared first on The Motley Fool Australia.

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More reading

• 4 ASX lithium shares hitting all-time highs on Thursday
• Why is the Lake Resources share price leaping 10% on Thursday?
• Why are ASX lithium stocks having such a stellar run today?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• 2 ASX All Ordinaries shares that defied today’s sell-off to crack new highs

Motley Fool contributor Aaron Teboneras has positions in Pilbara Minerals Limited. 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.

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It’s a good day on the market for ASX lithium shares, and four, in particular, are making the most of it.

They have surged as much as 45% today to hit new record highs.

So, without further ado, let’s take a look at the lithium shares outperforming on Thursday.

4 ASX lithium shares hitting record highs today

Pilbara Minerals Ltd (ASX: PLS)

The Pilbara Minerals share price surged to peak at $4.22 today – marking a 6.8% gain and a new record high.

Interestingly, there’s been no news from the S&P/ASX 200 Index (ASX: XJO) share today. Though, earlier this week top broker JP Morgan reportedly upped its price target for the stock to $4.10.

It’s also only a few weeks since the company posted its maiden profit. It raked in $561.8 million in financial year 2022.

Allkem Ltd (ASX: AKE)

Another ASX 200 lithium share surging to new heights on Thursday is Allkem. The stock lifted 6.7% at its intraday high to hit $15.02.

The company – previously known as Orocobre – was renamed shortly after its merger with Galaxy Resources.

It posted record production and US$770 million of revenue for financial year 2022 late last month.

Leo Lithium Ltd (ASX: LLL)

The Leo Lithium share price also roared to its highest point since hitting the ASX earlier today. The stock peaked at 62.5 cents on Thursday – marking a 6.8% gain.

However, investors who jumped on board the company during its initial public offering (IPO) might be holding out for more.

The company floated on the ASX in June following its spinout from Firefinch Ltd (ASX: FFX).

As part of its IPO, it raised $100 million by selling stock for 70 cents apiece. It also handed out one new share in Leo Lithium to every investor holding 1.4 shares in its parent company.

Anson Resources Ltd (ASX: ASN)

The final ASX lithium share to hit an all-time high on Thursday is Anson Resources. Its share price launched a whopping 46% higher to peak at 43 cents mid-afternoon.

Its gain follows news of the company’s Paradox Lithium Project.

The project’s definitive feasibility study has confirmed its “outstanding economics” and potential to be a major source of lithium for US markets.  

The post 4 ASX lithium shares hitting all-time highs on Thursday appeared first on The Motley Fool Australia.

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More reading

• Why is the Lake Resources share price leaping 10% on Thursday?
• 3 ASX mining shares soaring more than 20% today
• Why are ASX lithium stocks having such a stellar run today?
• ‘Outstanding economics’: Anson Resources share price rockets 35% on lithium news
• Here are the 3 most heavily traded ASX 200 shares on Wednesday

Motley Fool contributor Brooke Cooper 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.

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The Lake Resources N.L. (ASX: LKE) share price is surging ahead during Thursday afternoon trading.

Shares of the lithium explorer are currently at their intraday high of $1.33 each, 9.92% higher.

Other ASX lithium shares are also performing brilliantly on Thursday, including a couple reaching new all-time highs.

Pilbara Minerals Ltd (ASX: PLS) reached a new all-time high of $4.22 per share this afternoon, with the company’s shares currently trading at $4.21 each, up 6.58%.

Meanwhile, shares of Allkem Ltd (ASX: AKE) also reached a new record high of $15.02 today. The Allkem share price is currently $14.955, a gain of 6.21%

And finally, Mineral Resources Limited (ASX: MIN) is also well in the green, up 6.47% at the time of writing with its shares currently trading for $63.35 each.

The S&P/ASX 200 Materials Index (ASX: XMJ) is up 2.41% for the day so far.

What’s stunning is that there’s no news today from Lake Resources — or about lithium shares in general — to make sense of the price surge. But yesterday, some major developments occurred. Let’s cover the highlights.

What happened?

Yesterday, Lake Resources appointed a new CEO and managing director, David Dickson, to lead the company.

Lake Resources executive chairman Stuart Crow commented on the appointment:

David combines proven leadership experience and engineering expertise with a deep strategic understanding of off-taker and investor perspectives on energy supply chains. David knows all the major oilfield services and EPCM contractors who are looking to expand into the renewable economy … including those companies skilled in environmentally friendly drilling and reinjection – a key to Lake expanding at scale.

And as reported by ABC News, electric vehicle sales are reported to have hit a record high. The Federal Chamber of Automotive Industries (FCAI) stated that 95,236 new vehicles were sold in August, up 17.3% from the same month last year.

A total of 717,575 vehicles have been purchased so far in 2022 with electric vehicles accounting for 13.27% of the total.

Lake Resources share price snapshot

The Lake Resources share price is up 29% year to date. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is down 10.5% over the same period.

The company’s current market capitalisation is $1.81 billion.

The post Why is the Lake Resources share price leaping 10% on Thursday? appeared first on The Motley Fool Australia.

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More reading

• 4 ASX lithium shares hitting all-time highs on Thursday
• Why are ASX lithium stocks having such a stellar run today?
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• 2 ASX All Ordinaries shares that defied today’s sell-off to crack new highs
• 2 fantastic ASX growth shares to buy now according to analysts

Motley Fool contributor Matthew Farley 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.

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S&P/ASX 200 Index (ASX: XJO) energy shares are dropping lower today.

Well, most of them.

That’s seeing the S&P/ASX 200 Energy Index (ASX: XEJ) down by 2.67% after lunch even as the ASX 200 surges by 1.62%.

We won’t cover off all the ASX 200 energy shares in this article. But here are how four of the top companies are performing today:

• Santos Ltd (ASX: STO) shares are down 0.32%
• Beach Energy Ltd (ASX: BPT) shares are down 1.05%
• Woodside Energy Group Ltd (ASX: WDS) shares are down 5.4%
• Whitehaven Coal Ltd (ASX: WHC) shares are up 0.53%

What’s going on?

What are investors in ASX 200 energy shares considering today?

First, let’s address two of the ASX 200 energy share outliers.

You likely noticed the outsized losses posted by Woodside today. While some of that’s due to the market forces pressuring the other oil and gas companies, Woodside shares are also trading ex-dividend today.

Following a strong half year, Woodside declared a US$1.09 per share interim dividend. Investors buying shares today are no longer entitled to that payout, and the share price is falling to reflect this.

You also likely noticed that Whitehaven Coal is bucking the selling trend. While coal prices retraced by 2.5% overnight, Newcastle coal is still fetching a whopping US$439.00 per tonne. That same tonne was trading for around US$140 on 1 January this year.

As for the other ASX 200 energy shares, they’re coming under pressure from sliding oil prices. And unlike coal, oil prices are falling back towards their January levels.

West Texas Intermediate (WTI) crude is trading for US$82.66 per barrel. While that’s edged higher over the past few hours, WTI is down from US$87.39 on Wednesday and down from US$123.70 on 8 March shortly after Russia’s invasion of Ukraine.

WTI kicked off 2022 trading for US$76.08.

Why are oil prices falling?

Oil prices, and by connection many ASX 200 energy shares, are falling in part due to growing concerns of a looming recession in Europe.

Investors are also worried about the potential economic slowdown hampering oil demand in China. The Middle Kingdom is sticking to its COVID-zero policies, which is seeing as many as 65 million people in lockdown or with other travel restrictions.

According to Fenglei Shi, a Beijing-based director of S&P Global Commodity Insights (courtesy of Bloomberg), “We expect that gasoline, diesel, and jet fuel demand over September and October will continue to fall short of pre-COVID levels.”

Crude prices are sliding despite OPEC+ announcing on Monday that the cartel would slash 100,000 barrels per day (bpd) from its production target commencing next month. That fairly token reduction cancels out the 100,000 bpd increase OPEC+ pledged in September.

Looking ahead, crude prices and ASX 200 energy shares could be supported by a strong outlook for the United States economy.

Ed Moya, senior market analyst at Oanda said (quoted by Bloomberg), “WTI crude should hold $80 given how strong the US economy remains and now that most of the demand shock from China’s deteriorating COVID situation has been priced in.”

How have these ASX 200 energy shares been tracking?

Covering off the four ASX 200 energy shares named above, the Santos share price is up 17% in 2022; Beach Energy shares have gained 26%; the Woodside share price is up 41%; and Whitehaven Coal shares have rocketed 210%.

For some context, the ASX 200 is down 10% year to date.

The post Here’s why ASX 200 energy shares are diving lower today appeared first on The Motley Fool Australia.

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More reading

• The Santos share price is under pressure today. Here’s why
• Why is the Beach Energy share price sinking on Thursday?
• Why has the oil price been so volatile lately?
• Why is the Woodside share price crashing 7% today?
• 5 things to watch on the ASX 200 on Thursday

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

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The S&P/ASX 200 Materials Index (ASX: XMJ) is climbing 2.5% in Thursday afternoon trading, but three ASX mining shares are soaring far higher.

ASX mineral explorer shares Anson Resources Ltd (ASX: ASN), Pacgold Ltd (ASX: PGO), and Investigator Resources Ltd (ASX: IVR) are all well in the green today.

Let’s take a look at why these ASX mining shares are lifting today.

Anson Resources

Anson Resources shares are up an incredible 42% today on lithium news. The company advised it has the potential to become a major supplier of high purity lithium carbonate to the US electric vehicle (EV) market. This follows the completion of a Definitive Feasibility Study at its Paradox Lithium Project in Utah. Phase one of the project is forecast to deliver US$5.08 billion of revenue in the first 23 years. Anson is targeting production of 13,074 tonnes of lithium carbonate per year.

Commenting on the news, executive chairman Bruce Richardson said:

We are very excited to deliver the Paradox Lithium Project Phase 1 DFS to market. The DFS confirms the technical and financial viability of a major new source of high purity Lithium Carbonate available for the rapidly growing US market.

Pacgold

Pacgold shares are up 22% at the time of writing. In an update today, the company advised drilling intersected with “spectacular visible gold” at the Alice River Gold Project in Queensland. Drillhole ARDH061 intersected with a 16.4 wide zone showing more than 200 occurrences of visible gold. Assay results for 12 further drill holes will be delivered in the future.

Commenting on the news, Pacgold managing director Tony Schreck said:

The intersection of visible gold over a sixteen metre zone is a stunning outcome and represents the first of what we believe could be potential multiple high-grade zones developed along the F1a zone.

Investigator Resources

Investigator Resources shares gained nearly 20% shortly after market open before settling back to 7.32% higher at the time of writing. This follows a “significant rare earth” discovery at the Apollo prospect. Drilling at the project showed high-grade rare earth mineralisation.

Results include:

• 15m at 3,221 parts per million (ppm) total rare earth oxide (TREO) and 1,099ppm magnet rare earth oxide (MREO) from 66m including
• 9m at 4,700ppm TREO and 1,772ppm MREO from 72m

The Apollo prospect is 4km north-west of the company’s Paris Silver Project near Kimba in South Australia.

Commenting on the news, managing director Andrew McIlwain said:

Our team have already identified a number of opportunities at Apollo following up these exciting silver and REE [rare earth elements] discoveries.

The post 3 ASX mining shares soaring more than 20% today appeared first on The Motley Fool Australia.

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More reading

• ‘Outstanding economics’: Anson Resources share price rockets 35% on lithium news
• 3 ASX mining shares that soared over 25% on Thursday
• Anson Resources share price rockets 39% on new lithium partnership
• 3 ASX mining shares that went gangbusters on Monday
• Anson Resources share price surges 17% on lithium news

Motley Fool contributor Monica O’Shea 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.

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Washington H. Soul Pattinson and Co Ltd (ASX: SOL) is a rather famous share on the S&P/ASX 200 Index (ASX: XJO). For one, it’s one of the oldest shares on the entire ASX. Soul Patts first opened its doors in the pre-Federation days of the 1870s and was first listed on the ASX way back in 1903.

Today, the company is known for its sizeable investment portfolio. Soul Patts now owns significant chunks of many other ASX businesses. Its largest holdings are in companies like Brickworks Ltd (ASX: BKW), TPG Telecom Ltd (ASX: TPG) and New Hope Corporation Limited (ASX: NHC).

But Soul Patts has been in expansion mode in recent years. Last year, it acquired the monstrous listed investment company (LIC) Milton Corporation. This resulted in the company taking over the multi-billion dollar portfolio of blue-chip shares that Milton used to run on behalf of its investors.

But it’s one of Soul Patt’s smaller positions in the spotlight today – Electro Optic Systems Holdings Ltd (ASX: EOS).

Electro Optic Systems has a shocker

Soul Patts informed the markets in July that it had built up a “substantial” position in Electro Optic Systems. As of 15 July, Soul Patts held approximately 10.14 million shares, giving the company a 6.21% stake in Electro Optic Systems in terms of voting power.

But, perhaps unfortunately for Soul Patts, Electro Optics Systems is having a very lousy day indeed today.

As my Fool colleague James reported this morning, the space and defence systems company has just reported its half-year earnings results. These included a 45% loss in revenues to $53.8 million and a ballooning net loss after tax of $99 million, a substantial increase from the previous loss of $11.7 million.

As a result, the Electro Optic Systems share price has now cratered a painful 25.6% or so today.

But in these results, Electro Optic Systems also revealed that Soul Patts had thrown the company a lifeline. Soul Patts has reportedly given Electro Optic Systems a $20 million working capital facility.

The company has agreed to refinance Electro Optic Systems’ Roadnight debt facility, which was due to expire on 6 September 2022. It has now extended the maturity date to 26 September 2022.

Electro Optic Systems “expects to seek further extensions” from Soul Patts. But it also notes there is no guarantee this will be granted.

Why is Soul Patts lending a hand?

So what might Soul Patts think about all of this? Well, it’s likely that management is not delighted with what Electro Optics Systems had to say today. However, the terms of the $20 million working capital facility are arguably very favourable to the company.

Soul Patts is charging Electro Optic Systems an interest rate of 15%. That’s with a maturity date scheduled for 12 months after the first drawdown.

The minimum in interest and fees Soul Patts will receive from this facility will be $6.9 million. That’s worth more than what Soul Patt’s stake in Electro Optic Systems is now valued at (just under $5.5 million).

So it could be for this reason that Soul Patts is lending a hand to Electro Optics Systems.

The post Why is ASX behemoth Soul Patts lending a hand to Electro Optic Systems? appeared first on The Motley Fool Australia.

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More reading

• Electro Optic Systems share price crashes 35% after first-half shocker
• Why this ASX 200 share could be a great way to indirectly profit from booming coal prices
• How I’d invest $50,000 in ASX dividend shares for retirement, if I had to start from scratch
• Why is the Electro Optic Systems share price frozen today?
• How I’d invest $20,000 in ASX shares today if I had to start from scratch

Motley Fool contributor Sebastian Bowen has positions in Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Brickworks, Electro Optic Systems Holdings Limited, and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has positions in and has recommended Brickworks and Washington H. Soul Pattinson and Company Limited. The Motley Fool Australia has recommended Electro Optic Systems Holdings Limited and TPG Telecom Limited. 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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It’s another day of blue – or green – skies for ASX lithium stocks, with shares in many of the market’s favourites roaring higher.

While the S&P/ASX 200 Materials Index (ASX: XMJ) outperforms the broader S&P/ASX 200 Index (ASX: XJO), lithium stocks are leading the sector.

The Liontown Resources Limited (ASX: LTR) share price is taking out the top spot, gaining 8.1% to trade at $1.865.

Other winners include Lake Resources NL (ASX: LKE) – up 5.4% to $1.275, Allkem Ltd (ASX: AKE) – up 6.2% to $14.96, Pilbara Minerals Ltd (ASX: PLS) – up 6.2% to $4.195, and Core Lithium Ltd (ASX: CXO) – up 4.3% to $1.59.

In comparison, the ASX 200 is up 1% right now while the materials sector is lifting 1.8%.

So, what might be boosting ASX lithium stocks sky high on Thursday? Let’s take a look.

What’s driving ASX lithium stock sky-high?

There’s not a lot of news to help explain what’s going on with ASX lithium stocks today. Though, the sector has had a good week so far.

Of course, lithium fans will remember broker JP Morgan reportedly upped its price targets for both lithium and producer Pilbara Minerals earlier this week.

The broker also tipped demand for the battery-making material to continue, expecting a supply shortfall to last until 2025, The Australian reported.

That view was supported by Piedmont Lithium Inc (ASX: PLL) CEO Keith Phillips, who this week told Yahoo Finance:

There’s going to be a real crunch to get the material. We don’t have enough in the world to turn that much [lithium] production in the world by 2035.

We’re now in an era where everyone’s going to want an electric car. The car companies can’t make them fast enough, and people are now looking for the lithium they need for the batteries to go in those electric cars.

Indeed, the Federal Chamber of Automotive Industries (FCAI) revealed electric vehicle sales hit a new Australian record in August.

Battery-powered vehicles made up 4.4% of all cars sold in the nation last month. In fact, 3.5% of all cars sold in Australia in August were made by Tesla Inc (NASDAQ: TSLA).

All that, and likely more, might be bolstering sentiment for ASX lithium stocks this week, potentially culminating in today’s strong performance from shares involved in the material.

The post Why are ASX lithium stocks having such a stellar run today? appeared first on The Motley Fool Australia.

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More reading

• Here are the top 10 ASX 200 shares today
• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• 2 ASX All Ordinaries shares that defied today’s sell-off to crack new highs
• 2 fantastic ASX growth shares to buy now according to analysts
• Why is the Lake Resources share price outperforming on Wednesday?

JPMorgan Chase is an advertising partner of The Ascent, a Motley Fool company. Motley Fool contributor Brooke Cooper 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 Tesla. 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.

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BHP Group Ltd (ASX: BHP) shares are having a tough time in 2022. Since the start of the year, the mining giant’s shares have lost 14% of their value.

This is particularly disappointing given some of the incredible gains that have been recorded in the resources sector.

For example, Allkem Ltd (ASX: AKE) and Pilbara Minerals Ltd (ASX: PLS) have seen their shares rise an impressive 34% and 19%, respectively, over the same period.

This has been driven by Allkem and Pilbara Minerals’ exposure to one of the hottest commodities in the world right now – lithium.

Do BHP shares provide lithium exposure?

As you might have guessed from the difference in their returns, BHP’s shares do not provide investors with exposure to the white metal.

Despite being a highly diversified miner with hands in many pies, the Big Australian has no interest in the lithium market.

While this is disappointing in the current environment where lithium demand is being tipped to outstrip supply for some time to come and keep prices sky high, the miner doesn’t expect this to last. Particularly given how lithium is among the most abundant elements on Earth.

According to an interview from earlier this year, courtesy of Bloomberg, the company’s Minerals Americas head, Ragnar Udd, said that BHP prefers its projects large, long-life, and scalable in commodities with differentiated cost curves.

In addition, as low-cost lithium deposits tend to come from brine around the lithium triangle in Argentina and Chile, it isn’t a good fit for the miner. BHP has committed to minimising use of continental water in drought-hit Chile.

Udd also expects that supply will eventually catch up with demand and put downward pressure on the high prices we are seeing today. He said:

“We recognize that at the moment there’s short-term supply-demand conversations. How that plays out over the next 20 or 30 years, I don’t think it will last.”

Time will tell if BHP lives to regret its lack of lithium exposure.

The post Do BHP shares give investors exposure to lithium? appeared first on The Motley Fool Australia.

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More reading

• Why are ASX 200 mining shares getting blasted on Wednesday?
• 2 fantastic ASX growth shares to buy now according to analysts
• Own BHP shares? Here’s how much the ASX 200 giant added to the Aussie economy in FY22
• What are brokers saying about the BHP share price?
• Here are the top 10 ASX 200 shares today

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It’s been a rough year so far for the Telstra Corporation Ltd (ASX: TLS) share price in 2022. The ASX 200 blue chip telco share started the year off at $4.22 a share. But today, Telstra is trading at $3.91. That means the company has lost a painful 7.35% over the past nine months or so.

The only good thing we can say about this fall is that it bests the broader S&P/ASX 200 Index (ASX: XJO). After the savage week we’ve seen, the ASX 200 is now down a nasty 10.7% since the start of the year. So Telstra shares are actually beating the market over the year to date.

This might come as a disappointment for ASX 200 investors. After all, 2021 saw the Telstra share price rise more than 40%. So this represents quite a change of pace.

So following this miserly performance in 2022, what could be next for Telstra shares? Are we seeing a compelling buying opportunity today? After all, Telstra just gave its investors the first dividend hike we’ve seen in years.

Well, yes. That’s the opinion of at least one ASX broker anyway.

Broker: Telstra share price is a buy today

As my Fool colleague James covered yesterday, ASX broker Morgans is eyeing Telstra off at the current price. The broker currently has an add rating on Telstra shares. That comes with a 12-month share price target of $4.60. If realised, that would represent a potential upside of almost 18% from where the shares are today.

Morgans liked what they saw in last month’s earnings report, which outlined a return to growth for the company after years of NBN-driven earnings displacement.

The broker is estimating that Telstra will deliver another year of 16.5 cents per share in dividends over FY23 as well.

So no doubt that will be a welcome assessment for Telstra shareholders today. But we shall have to wait and see if the company’s shares can deliver this 18% upside that Morgans is predicting.

In the meantime, the current Telstra share price gives this ASX 200 telco a market capitalisation of $45.18 billion, with a dividend yield of 4.22%.

The post The Telstra share price has gone backwards in 2022. Is now the time to pounce? appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Wednesday
• Brokers name 2 ASX 200 shares to buy for a retirement portfolio
• Should all ASX investors be buying defensive shares right now?
• Should you buy Telstra shares after the telco ‘comfortably turned the corner’?
• 5 things to watch on the ASX 200 on Tuesday

Motley Fool contributor Sebastian Bowen has positions in Telstra Corporation Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Corporation Limited. 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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