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The Adore Beauty Group Ltd (ASX: ABY) share price has glowed up this week, shimmering 30% on Tuesday to outperform the wider S&P/ASX All Ordinaries Index (ASX: XAO).

Curiously, there was no news out of the ASX All Ords company, which was issued a speeding ticket yesterday and gave back some gains. 

But fellow ASX e-commerce share Temple & Webster Group Ltd (ASX: TPW) also rocketed 30% on Tuesday after the company’s FY22 results surprised to the upside.

This positive sentiment could be flowing through to Adore Beauty, with investors believing the shares could be oversold.

After going public in late 2020 at a price of $6.75 apiece, the market fell out of love with Adore Beauty shares.

Despite Tuesday’s meteoric rise, the Adore Beauty share price is still down more than 50% this year. And since its initial public offering (IPO), Adore shares have tumbled around 70%.

But while Adore Beauty struggles to win over investors, here are three reasons why I like this ASX All Ords share.

Alluring tailwinds

As an online-only retailer, Adore is benefitting from the industry’s structural shift to e-commerce.

The company plays in an $11.2 billion beauty and personal care (BPC) market in Australia. And despite the COVID tailwind, online penetration still sat at a lowly 11.4% at the end of 2020. 

The key here is that Australia is a laggard compared to larger Western countries. Online penetration in the United States was up to 17.1% in 2020. The United Kingdom boasted penetration rates of 18.4%. 

Globally, places like South Korea and China are streets ahead with 40-50% of the beauty industry already online. 

What’s more, the company’s brand awareness and presence in the industry have plenty of room to grow. Adore Beauty commands a 13% share of the online BPC market in Australia.

It’s a double-whammy here as Adore Beauty seeks to carve out more market share, all the while the market itself is also growing.

Range authority and scale

In its early days, Adore’s biggest issue was getting brands onto the platform. As its size and reputation grew, and the benefits of social proof flowed through, the conversations with brands have become much easier. 

Adore started out with just two Australian brands when it launched in early 2000. It went on to sign its first international brand, Clarins, in 2006.

Fast forward to today and Adore’s online store boasts more than 11,000 products across more than 270 brands. This vast range of brands and products has attracted 880,000 active customers to Adore in the last 12 months.

What’s more, with larger order volumes, a growing audience, and a specialisation in online, brands are turning to Adore not just as a distributor but also as a marketing partner. 

As a result, Adore is reaping the benefits of co-marketing support from brands through promotions, special giveaways, events, and samples. 

Together with increased product rebates, this has seen the company’s gross margin improve over time as the business scales and takes a bigger slice of the market.

A beautiful brand

In today’s landscape where barriers to entry are low and competing sites are popping up out of the woodwork, trust is increasingly important.

The fact that Adore is a long-standing, established Australian business with a strong reputation and high customer satisfaction levels are big ticks. 

The company has also leveraged its brand to create a powerful content arm across a media network of podcasts, videos, and blog posts. 

Not only are these channels a means of marketing but through curated blog posts and podcasts, Adore can move up the funnel to customers who may not be in a shopping frame of mind. 

Here, it’s more about content marketing where Adore can introduce customers to the products they didn’t know they needed. As you can imagine, this can do wonders for engagement and purchasing patterns.

So what’s the verdict?

​​At first glance, it’s easy to write Adore off as a glorified distributor. But over the years, this ASX All Ords company has evolved to become more than just an online store.

In my eyes, competition, customer retention, and customer acquisition costs remain the key risks for Adore.

But the Adore Beauty share price may already reflect these risks, with shares currently trading on a trailing price-to-sales ratio of 1.2x.

According to our Foolish ASX reporting season calendar, Adore will release its FY22 results on Monday 29 August.

Some of the things I’ll be watching include revenue and customer growth, the company’s gross margin profile, marketing expenses, progress on its private label initiatives, and earnings margins.

It’s also worth noting that the company is on the hunt for a new CEO. Tennealle O’Shannessy handed in her resignation last week. She’ll be leaving Adore in February next year to take the top job at IDP Education Ltd (ASX: IEL).

The post 50% off: Why I think this ASX All Ords share could be a sparkling buy appeared first on The Motley Fool Australia.

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• Adore Beauty share price slips 12% following ASX speeding ticket
• This ASX lithium share is surging 45% today. What’s going on?
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• 3 ASX All Ordinaries shares celebrating Friday with new 52-week highs

Motley Fool contributor Cathryn Goh 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 Idp Education Pty Ltd and Temple & Webster Group Ltd. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended Adore Beauty Group Limited. The Motley Fool Australia has recommended Adore Beauty Group Limited and Temple & Webster Group Ltd. 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 CSL Limited (ASX: CSL) share price was out of form on Wednesday.

The biotherapeutics company’s shares fell as much as 6% before recovering to end the day 1.5% lower at $292.50.

This followed the release of a full year result that met expectations but included guidance for FY 2023 that fell short of what the market was expecting.

Is the CSL share price pullback a buying opportunity?

According to a note out of Goldman Sachs, its analysts aren’t ready to press the buy button just yet.

This morning the broker retained its neutral rating with a trimmed price target of $291.00.

This is broadly in line with where the CSL share price is trading today.

What did the broker say?

Goldman highlights that the CSL Behring business was the driver of its weaker than expected guidance for FY 2023. It commented:

Plasma collections grew +24% in FY22 (from +18% in 1H22), and whilst this acceleration was widely expected, it underpins the volume recovery through FY23-24E. However, the updates on Behring costs/margins were less assured and were the primary driver of FY23 NPAT guidance falling (3)-(7)% below consensus today (despite another strong performance from Seqirus).

And while the broker suspects that management could be being conservative with its guidance, it also believes it is a reminder that the company is not out of the woods just yet.

On both fronts, CSL would have applied at least its typical dose of conservatism but management now sees the trough in Behring gross margins as 1H23 (from 2H22 previously), a timing-driven downgrade but a material one, reminding investors that the industry is not out of the woods (2H22 margins of 52.5% are -531bps below pre-Covid levels). Staffing pressures and collections costs will remain key challenges through the mid-term, but we see enough tailwinds to drive a sequential improvement from 2H23 (primarily price/mix and improved fixed cost absorption, but also some modest benefit from Rika). Overall, we revise Behring EBIT forecasts by -15%/-2%/-1% through FY23-25E.

All in all, the broker appears to believe investors should wait for the CSL share price to pullback a little more before making a move.

The post Broker gives its verdict on the CSL share price post-FY22 results appeared first on The Motley Fool Australia.

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• Why CSL, Downer, Magellan, and PointsBet shares are falling today
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• An ASX 200 market darling in the past, but don’t expect fireworks from the CSL share price going forward
• CSL share price drops despite expectations of growth in FY23
• CSL share price on watch following FY22 results

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 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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The Treasury Wine Estates Ltd (ASX: TWE) share price will be one to watch this morning.

This follows the release of the wine giant’s full year results for FY 2022.

Treasury Wine share price on watch following earnings beat

• Net sales revenue down 3.6% year over year to $2,476.7 million
• Net sales revenue per case up 16.1% to $97.30
• Earnings before interest, tax, SGARA and material items (EBITS) up 2.6% to $523.7 million
• Net profit after tax before material items and SGARA up 4.2% to $322.6 million
• Fully franked final dividend up 23% to 16 cents per share
• Outlook: Strong, margin accretive growth in FY 2023.

What happened during FY 2022?

For the 12 months ended 30 June, Treasury Wine reported a 3.6% decline in net sales revenue to $2,476.7 million but a 2.6% lift in EBITS to $523.7 million. The latter was driven by margin improvements across all divisions and up 4% in constant currency and up 22% when adjusting for wine sold in Mainland China a year earlier.

Treasury Wine’s earnings growth was driven by its Americas and Premium Brands segments, which reported EBITS growth of 20.5% and 27%, respectively, in FY 2022 thanks to portfolio premiumisation. This helped offset a 7.8% reduction in Penfolds EBITS caused by its China exit.

On the bottom line, the company’s net profit after tax before material items and SGARA was up 4.2% to $322.6 million. This allowed the Treasury Wine board to declare a final dividend of 16 cents per share, bringing its full year dividend to a fully franked 31 cents per share.

How does this compare to expectations?

The good news for the Treasury Wine share price today is that this result appears to have come in ahead of expectations.

According to a note out of Citi, it was expecting the company to deliver a net profit after tax of $314.2 million. This was broadly in line with the market consensus estimate.

Management commentary

Treasury Wine’s chief executive officer, Tim Ford, was pleased with the company’s performance in FY 2022. He commented:

Relentless execution of our F22 priorities resulted in strong operating and financial performance in each of our brand portfolio divisions. Pleasingly, we have returned to delivering margin accretive earnings growth in a year where we managed through the effective closure of the Mainland China market, materially reshaped our Treasury Americas division and navigated a global macroeconomic backdrop that included the global pandemic, significant supply chain disruptions and inflationary cost pressures. The results we have announced today reflect the fundamental strengths of our diversified global business, the flexibility of our operating model and the outstanding execution capability of our teams.

Outlook

Ford also spoke positively about the company’s prospects in FY 2023. He added:

After two years of significant change, we enter F23 with momentum, focused on our objectives of delivering quality earnings growth, efficient capital utilisation and sustainable shareholder returns. Our recent track record of successfully adapting our business to deliver growth, despite a number of challenges, gives me great confidence in the fundamental strengths of our business and our capability to navigate future challenges and uncertainty.

The company reaffirmed that its long-term financial objective is to deliver sustainable top-line growth, high single-digit average earnings growth, and a Group EBITS margin target of 25%+.

Supporting this objective will be continued portfolio premiumisation, growth in distribution, demand and availability for its priority brands, cost optimisation, and category leading, consumer-led innovation.

All in all, through continued top-line growth across the Premium and Luxury portfolios, targeted price increases and ongoing cost management, Treasury Wine expects to deliver strong, margin accretive growth in FY 2023.

The Treasury Wine share price is up 1% in 2022.

The post Treasury Wine share price on watch after FY22 earnings beat appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Thursday
• Is the Treasury Wine share price a buy before the company reports this week?
• Experts name 2 ASX growth shares to buy when the market reopens
• ‘Back to a growth mindset’: Expert names ASX share ready to take off
• Treasury Wine share price up amid key China trademark win

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Treasury Wine Estates 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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A prominent fund has revealed it has just bought up a particular S&P/ASX 200 Index (ASX: XJO) stock despite macroeconomic forces triggering a massive drop in price.

Gold has traditionally been considered a safe haven investment in troubled economic times. However, that is complicated by the fact that historically the value of the precious metal has dipped when interest rates rise.

And this is exactly what we’ve seen the past few weeks, according to Firetrail analysts.

“Under this backdrop, Australian gold stocks have sold off and now trade 25% below peaks reached in July 2020,” read their memo to clients.

“We believe the sell-off in Australian gold stocks is overdone, and rising recession risks lead us to believe gold is an attractive asset class for investors over the coming 12 months.”

Buy into gold but also harvest an income

The over-selling has led to the Firetrail Absolute Return fund adding to its position in gold miner Newcrest Mining Ltd (ASX: NCM).

The Newcrest share price has plunged more than 33.5% since late April.

The Firetrail team’s conviction is backed by a curious market anomaly that it recently discovered.

“The gold price denominated in Australian dollars is near decade highs. The ASX Gold Index has historically followed the AUD gold price, but it is now trading at a large relative discount.”

While gold as a commodity never pays an income, Newcrest does pay out a dividend yield of 3.4%.

Among the wider professional community, support for Newcrest shares is polarised. 

According to CMC Markets, eight out of 17 analysts currently recommend it as a strong buy, while eight others think it’s a hold. 

Watch for the US dollar

ETF Securities head of distribution Kanish Chugh agreed that it might be gold’s turn to shine in the coming period.

“Geopolitical tensions remain high, with war in Ukraine destabilising eastern Europe and Nancy Pelosi’s visit to Taiwan causing alarm in China,” he said.

“While these events are reflected in the gold price at this stage, they serve as a reminder that gold typically finds support during times of crisis.”

Chugh added that as US interest rates rise, the US dollar might weaken.

“Should the dollar retreat, we could see further support for gold,” he said.

“Gold is also typically seen as a core diversifier for smoothing portfolio volatility as an ‘insurance overlay’.”

The post The ASX 200 share Firetrail just bought after brutal sell-off appeared first on The Motley Fool Australia.

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Motley Fool contributor Tony Yoo 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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ASX growth shares have made something of a comeback in the past couple of months.

But many experts are still warning investors to buy those companies with solid numbers behind them rather than speculative pre-revenue businesses. 

With this in mind, here are a couple of ASX shares that Cyan Investment Management holds that are growing spectacularly:

Melbourne games studio keeps churning out the hits

Cyan has been a longtime fan of electronic games developer Playside Studios Ltd (ASX: PLY).

After seeing the share price freefall 60% from February to June, the fund was pleased to finally see the unaudited full-year results last month.

“In FY22, Playside grew revenues 169% to $29 million, expanded its team considerably and has a spate of exciting game releases and milestones across FY23,” said the Cyan portfolio managers in a memo to clients this week.

“And, importantly, has a very strong balance sheet backed by almost $38 million in net cash.”

The ASX tech share has risen a stunning 54% since the June trough. But even after that, cash forms 33% of its market capitalisation.

“The business continues to expand with a newly formed publishing division announced in late July.”

While the Melbourne company is not widely covered, both analysts surveyed on CMC Markets currently recommend Playside shares as a strong buy.

Cashing in on big-name clients jumping on a structural trend

Marketing technology provider XPON Technologies Group Ltd (ASX: XPN) is not exactly a household name yet.

But Cyan portfolio managers Dean Fergie and Graeme Carson are confident that it is serving in a space exactly where the business world is heading.

“We see this marketing technology business as a great way to gain exposure to the structural shift towards a requirement for businesses to build first-party (company-owned) data for digital marketing,” read their memo.

“The material move away from personal privacy threats such as website tracking 3rd party cookies continues to accelerate as Microsoft Corporation, Google and Apple Inc — along with independent providers like Brave, Firefox and Opera — tighten their browser security systems.”

Similar to Playside, Xpon shares halved in value this year until its June trough. Last month, Cyan welcomed its fourth-quarter financials.

“The most recent quarterly cash flow statement confirmed our confidence showing revenue growth of 134% year-on-year.”

The Xpon share price has rocketed 55% since June.

The company only listed in December, which was, in retrospect, terrible timing for a high-growth tech stock.

The Cyan team reckons it can only look upwards and onwards from here, armed with a stable of big-name clients.

“Xpon already delivers ARR [annualised recurring revenue] of $16 million (+78% YoY) and expects significant organic growth going forward,” read the memo.

“A relative newcomer to the ASX, we expect it to garner [the] attention of investors as revenue builds and new clients are signed up, adding to existing enterprise clients such as Domino’s Pizza Enterprises Ltd (ASX: DMP), Flight Centre Travel Group Ltd (ASX: FLT) and Super Retail Group Ltd (ASX: SUL).”

The post Revenue up 169%: 2 ASX tech shares showing explosive growth appeared first on The Motley Fool Australia.

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• ‘Great long-term investment’: Expert names small-cap ASX share to buy for cheap

Motley Fool contributor Tony Yoo has positions in Microsoft. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Apple, Microsoft, and Super Retail Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended the following options: long March 2023 $120 calls on Apple and short March 2023 $130 calls on Apple. The Motley Fool Australia has positions in and has recommended Super Retail Group Limited. The Motley Fool Australia has recommended Apple, Dominos Pizza Enterprises Limited, and Flight Centre Travel Group 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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Ask a Fund Manager

The Motley Fool chats with fund managers so that you can get an insight into how the professionals think. In part three of this edition, we’re joined by Grant Nichols, fund manager of the $2.4 billion Centuria Office REIT (ASX: COF), Australia’s largest listed pure-play office real estate investment trust (REIT). Today, Nichols discusses the threats and opportunities ahead for Australia’s commercial office sector.

The Motley Fool: Earlier, we discussed how tenants’ flight to quality has helped your leasing success. Noting that most of your REIT’s office space is outside of city centre locations, what impact has that had?

Grant Nichols: Yes, COF doesn’t have a lot of CBD exposure in the eastern markets. In fact, we have no assets in either the Sydney or Melbourne CBDs.

It’s a bit of a contrast from what you hear, that people have this great desire to be located in CBDs. That’s not always the case.

There are a couple of things worth noting.

We’ve looked at the S&P/ASX 200 Index (ASX: XJO). And 53% of the ASX 200 corporations are headquartered either in metropolitan or regional office markets. It’s a big proportion of the Australian economic output that want to be located in markets we’re investing into.

The other key to investing in markets outside of the CBD is they generally can allow for a much more pleasant commute. People want to be close to home, and the public and private transport accessing their workplace won’t be as congested.

What’s interesting to note is that the most important aspect of employment workplace satisfaction is the commute. If you can address that, you have a distinct advantage from a tenant perspective for attracting and retaining employees.

MF: Do you have any regrets over the past year with the COF REIT?

GN: Like a lot of peers, everyone’s been somewhat shocked by the velocity of the interest rate change. It’s been a very dramatic shift from March to where we are now.

In retrospect, we would’ve tried to mitigate that interest rate risk more than we were able to. Ultimately, the velocity of change was quite unprecedented, so it’s been difficult to moderate and foresee.

MF: And what was your best call in the Aussie office market sector?

GN: Really, it’s the way we’ve been changing and creating the COF portfolio.

We listed on the ASX back in 2014. And during that period, from 2014 to 2022, we’ve dramatically improved the quality of the COF portfolio. And that has enabled us to complete the leasing that we have. Because of that flight to quality and experience that tenants are demanding, we’ve provided a much better product than we were able to eight years ago.

That’s enhanced our position and protected us from that volatility in tenant demand. Having a more desirable portfolio certainly aided us through the COVID period.

MF: What’s the biggest threat for investors in ASX office REITs in the year ahead?

GN: The biggest threat is if the RBA goes too hard with interest rate rises. If they go too hard and we incur an economic downturn, that’s going to have ramifications not only for business but the broader economy. Office markets are almost directly related to economic output and unemployment.

We certainly hope the RBA is fully informed on what their impacts are and they can engineer a soft landing.

MF: And what’s the biggest opportunity you see for ASX office REITs ahead?

GN: That relates to my earlier comment on how we position the COF portfolio. One of the things we’ve been doing across the portfolio is trying to improve the amenities we have within our office buildings.

At 818 Bourke Street, one of our assets in Melbourne, we’ve undertaken a lot of upgrades to amenities. We’ve done floor refurbishments, put in prayer rooms, provided more breakout spaces for teams to collaborate outside of their tenancy.

We also had a very large, underutilised rooftop on this building. So we utilised that to put in an outdoor exercise space, barbecue space, outdoor meeting space. Just creating an area where people can go outside of their workplace and utilise that space for their own personal downtime. Or for the tenant to utilise the space to improve their own collaboration within their business.

That’s something we’re looking at across our portfolio. I think the flight to quality and amenity is going to become more and more important. Particularly as employers are wanting to get their employees back to the workplace. If they can work with the landlord to facilitate an outcome that’s more appealing, I think we will continue to see opportunities across our portfolio.

**

If you missed the earlier installations of our three-part interview series with Grant Nichols, you can find part one here and part two here.

(You can find out more about the Centuria Office REIT (ASX: COF) here.)

The post Investing in ASX office REITs? Here’s what to look for in the year ahead: fund manager appeared first on The Motley Fool Australia.

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• How rising inflation can benefit ASX office REITs: fund manager
• This is the biggest issue for investors in ASX office REITs in 2022: fund manager
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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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Are you looking for dividend shares to buy now? If you are, then you might want to look at the shares listed below that have been tipped as buys.

Here’s why these ASX dividend shares are rated highly:

National Australia Bank Ltd (ASX: NAB)

The first ASX dividend share that could be a top option for income investors is banking giant NAB.

It has been rated as a buy by analysts at Goldman Sachs. The broker currently has a buy rating and $34.63 price target on the bank’s shares.

Goldman likes NAB because it sees “volume momentum over the next 12 months as favouring commercial volumes over housing volumes and NAB provides the best exposure to this thematic.”

In addition, it highlights that “NAB has delivered the highest levels of productivity over the last three years.” The broker thinks this “leaves it well positioned for an environment of elevated inflationary pressure.”

As for dividends, Goldman is forecasting a $1.50 per share dividend in FY 2022 and then a $1.70 per share dividend in FY 2023. Based on the current NAB share price of $31.32, this will mean fully franked yields of 4.8% and 5.4%, respectively.

Rio Tinto Limited (ASX: RIO)

Another ASX dividend share to look at is mining giant Rio Tinto.

Citi is a fan of the company and has a buy rating and $120.00 price target on its shares. It likes Rio Tinto due to its attractive valuation and strong free cash flow.

The broker highlights that its free cash flow is “still robust and RIO trades on CY23/24E EV/EBITDA of 3.4/3.7x.”

Citi is expecting this strong free cash flow generation to underpin fully franked dividends of approximately $8.32 per share in FY 2022 and $9.43 per share in FY 2023. Based on the current Rio Tinto share price of $96.74, this will mean yields of 8.6% and 9.7%, respectively.

The post These top ASX dividend shares have been tipped as buys by analysts appeared first on The Motley Fool Australia.

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

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The BHP Group Ltd (ASX: BHP) share price has been in fine form this week.

Since the start of the period, the mining giant’s shares have risen approximately 5% to $40.66.

This has been driven by a positive reaction to the Big Australian’s full year results for FY 2022.

Can the BHP share price keep rising?

The good news for investors is that one leading broker believes the BHP share price can keep rising from here.

According to a note out of Morgans, its analysts have retained their add rating with a price target of $48.00.

Based on the current BHP share price, this implies potential upside of 18% for investors over the next 12 months.

And that’s before dividends. Including the US$2.84 (A$4.11) per share fully franked dividend that Morgans is forecasting in FY 2023, the total potential return stretches to over 28%.

What did the broker say?

Morgans was impressed with BHP’s performance in FY 2022 and particularly its strong free cash flow generation. Overall, it believes this justifies its decision to choose BHP over rival Rio Tinto Limited (ASX: RIO). It also remains positive on its outlook and feels it has a stronger growth profile.

The broker commented:

A strong result from BHP, with earnings slightly ahead of expectations while positively surprising on both dividend and free cash flow (FCF) generation. The dividend surprise was the key highlight, which also drove a positive share price reaction on result day. BHP announced a US175 cent final dividend, ahead of both consensus US152 cents and MorgansE US136 cents.

Our long-term preference for BHP over RIO continues to pay dividends (literally), with BHP asserting itself as the better miner and with the stronger growth profile. We maintain our Add rating with an updated TP of A$48.00.

The post Is the BHP share price a buy after the miner’s FY22 results? appeared first on The Motley Fool Australia.

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More reading

• Can BHP shares keep cashing in on coal?
• An ASX 200 market darling in the past, but don’t expect fireworks from the CSL share price going forward
• Brokers say BHP and this ASX 200 share are buys
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• Why has the Panoramic Resources share price surged 40% in a month?

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

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On Wednesday, the S&P/ASX 200 Index (ASX: XJO) continued its winning streak and pushed higher again. The benchmark index rose 0.3% to 7,127.7 points.

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

ASX 200 expected to fall

The Australian share market looks set to snap its winning streak on Thursday after a poor night on Wall Street. According to the latest SPI futures, the ASX 200 is expected to open the day 15 points or 0.2% lower this morning. On Wall Street, the Dow Jones fell 0.5%, the S&P 500 dropped 0.7%, and the NASDAQ tumbled 1.25% lower. Overnight, the US Fed minutes revealed that interest rate hikes are likely to continue until inflation eases substantially.

Treasury Wine full year results

The Treasury Wine Estates Ltd (ASX: TWE) share price will be one to watch on Thursday. This morning the wine giant is scheduled to release its full year results for FY 2022. According to a note out of Citi, it expects the company to deliver a net profit after tax of $314.2 million. This is broadly in line with the market consensus estimate.

Oil prices rebound

Energy shares including Santos Ltd (ASX: STO) and Woodside Energy Group Ltd (ASX: WDS) could have a better day on Thursday after oil prices rebounded on Wednesday night. According to Bloomberg, the WTI crude oil price is up 1.4% to US$87.72 a barrel and the Brent crude oil price is up 1% to US$93.30 a barrel. Traders were buying oil after US crude stockpiles fell.

Pro Medicus results

The Pro Medicus Limited (ASX: PME) share price will be on watch when the health imaging company releases its full year results. According to a note out of Bell Potter, its analysts are expecting revenue of $92 million, EBITDA of $65.7 million, and a net profit after tax of $44.9 million. The latter represents a 48% increase year over year.

Gold price falls

Gold miners Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) could have a difficult day after the gold price dropped overnight. According to CNBC, the spot gold price is down 0.6% to US$1,779.30 an ounce. Gold dropped for a third consecutive session following the release of minutes from the US Federal Reserve’s meeting.

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

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More reading

• The A2 Milk share price has climbed 10% so far this month. What’s going on?
• Here’s how much the Vanguard Australian Shares Index ETF (VAS) has paid in dividends over the past 5 years
• Why did the Novonix share price nosedive 6% today?
• Here are the top 10 ASX 200 shares today
• Looking to buy IAG shares but worried about where the growth will come from? Read this

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 Pro Medicus Ltd. The Motley Fool Australia has positions in and has recommended Pro Medicus Ltd. The Motley Fool Australia has recommended Treasury Wine Estates 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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The A2 Milk Company Ltd (ASX: A2M) has been frothing up a storm in August, shooting up 10%.

The company’s shares closed on Wednesday at $4.98 apiece after starting the month at $4.54.

So why has the A2 Milk share price been climbing lately?

The US opportunity

It seems its peer Bubs Australia Ltd (ASX: BUB) has regenerated excitement in the milk formula businesses after securing a major supply deal in the US and posting a stellar quarter for June 2022.

However, A2 Milk hasn’t experienced the same success. It has actually hit a bit of a roadblock in its bid for access to the US market, as outlined by my colleague Sebastian Bowen.

On 12 August, the US Food and Drug Administration (FDA) advised it had to defer further consideration for an enforcement discretion to import infant milk formula products into the United States.

According to the Sydney Morning Herald, another A2 Milk competitor Bellamy’s gained FDA approval shortly after Bubs.

Despite the hold up, A2 Milk CEO David Bortolussi remains confident. Bortolussi told the SMH the company had the relationships necessary on the ground to handle distribution and made the following comment:

Feedback from our US team on the ground is that the infant milk formula crisis has not been solved, with significant retail out-of-stock issues continuing across the country.

If Bortolussi’s optimism comes to fruition, a major contract in the US will act as a significant growth driver for the A2 Milk share price.

Another competitor considers ASX listing

The Australian Financial Review recently reported that another infant formula company Care A2 Plus is preparing for an ASX listing.

Care A2 Plus produces infant and toddler formula using single-sourced milk from Australian grass-fed A2 cows in Victoria. Unlike A2 Milk, it managed to gain approval from the FDA in early July to supply millions of tins to retailers short of supply.

The company advised the AFR that its first orders for Care A2+ Premium Infant Formula with iron were due to ship to the US in August.

Dominic Galati is the founder of Care A2 Plus and a former SBS executive.

Its chairman Walter Bugno said the company has more than 300 shareholders, including Chemist Warehouse.

A2 milk share price snapshot

The A2 Milk share price looks horrid across the last 12 months, falling 25% but the recent US shortage has driven it higher.

Across the same period, the S&P/ASX 200 Index (ASX: XJO) dropped 5% and like A2 Milk, it rallied with a 7% jump in the last month.

Given the roadblock and the potential listing of a competitor, which is already supplying to the US, it’s quite curious to see the A2 Milk share price climbing of late.

The post The A2 Milk share price has climbed 10% so far this month. What’s going on? appeared first on The Motley Fool Australia.

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More reading

• Here’s how much the Vanguard Australian Shares Index ETF (VAS) has paid in dividends over the past 5 years
• Why did the Novonix share price nosedive 6% today?
• Here are the top 10 ASX 200 shares today
• Looking to buy IAG shares but worried about where the growth will come from? Read this
• Here’s why the Nickel Industries share price is climbing on Wednesday

Motley Fool contributor Raymond Jang 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 recommended A2 Milk and BUBS AUST FPO. 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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