Tag: Motley Fool

  • Here are the top 10 ASX 200 shares today

    share price high, all time record, record share price, highest, price rise, increase, up,share price high, all time record, record share price, highest, price rise, increase, up,

    Today brought more gains for the S&P/ASX 200 Index (ASX: XJO), with energy shares taking the lead. The index was 0.69% higher at 6,993 points as of Monday’s close.

    It marks a fifth consecutive session in which the benchmark index closed in the green. Though, it hasn’t clambered back its June losses yet.

    The S&P/ASX 200 Energy Index (ASX: XEJ) led on Monday, gaining 1.9% on the back of higher oil prices.

    The price of Brent crude oil lifted 2.7% on Friday to trade at US$110.01 a barrel. Meanwhile, the US Nymex crude oil price gained 2.3% to reach US$96.42 a barrel.

    It was also a good day for the S&P/ASX 200 Health Care Index (ASX: XHJ) and the S&P/ASX 200 Materials Index (ASX: XMJ). The latter’s lift likely had something to do with higher base metals and iron ore prices.

    The price of nickel lifted 7.8% on Friday while iron ore futures rose 7.4% to trade at US$115.48 a tonne.

    It wasn’t all glory, however. The S&P/ASX 200 Information Technology Index (ASX: XIJ) slumped 0.4% on the back of the Megaport Ltd (ASX: MP1) share price’s 13% tumble.

    At the end of Monday’s session, eight of the ASX 200’s 11 sectors were in the green. But which shares topped the lot? Let’s take a look.

    Top 10 ASX 200 shares countdown

    Today’s top performer was lithium and boron producer Allkem Ltd (ASX: AKE). The stock gained 4.5% today despite the company’s silence. Find out what Allkem has been up to lately here.

    Today’s biggest gains were made by these ASX 200 shares:

    ASX-listed company Share price Price change
    Allkem Ltd (ASX: AKE) $11.79 4.52%
    Lynas Rare Earths Ltd (ASX: LYC) $9.10 4.48%
    Elders Ltd (ASX: ELD) $11.75 4.17%
    Champion Iron Ltd (ASX: CIA) $4.98 3.75%
    Sonic Healthcare Limited (ASX: SHL) $35.40 3.3%
    Sims Ltd (ASX: SGM) $15.16 3.2%
    St Barbara Ltd (ASX: SBM) $1.16 3.11%
    Deterra Royalties Ltd (ASX: DRR) $4.45 3.01%
    Pinnacle Investment Management Group Ltd (ASX: PNI) $10.31 3%
    Woodside Energy Group Ltd (ASX: WDS) $32.84 2.69%

    Our top 10 ASX 200 shares countdown is a recurring end-of-day summary to ensure you know which companies were making big moves on the day. Check in at Fool.com.au after the market has closed during weekdays to see which stocks make the countdown.

    The post Here are the top 10 ASX 200 shares today appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of July 7 2022

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    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 MEGAPORT FPO and PINNACLE FPO. The Motley Fool Australia has positions in and has recommended PINNACLE FPO. The Motley Fool Australia has recommended Elders Limited, MEGAPORT FPO, and Sonic Healthcare 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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  • What brokers are saying about the Fortescue share price in August

    Two brokers analysing stocks.

    Two brokers analysing stocks.The Fortescue Metals Group Limited (ASX: FMG) share price had a subdued start to the week.

    The mining giant’s shares have just closed the day a touch under 1% lower at $18.21.

    That’s despite rivals BHP Group Ltd (ASX: BHP) and Rio Tinto Limited (ASX: RIO) both rising over 1%.

    Why did the Fortescue share price underperform?

    Today’s weakness in the Fortescue share price appears to have been driven by a lukewarm response to the company’s latest quarterly update.

    For example, the team at Morgans responded by maintaining its hold rating and cutting the price target on the company’s shares to $17.40.

    Based on the current Fortescue share price, this implies potential downside of 4.5% for investors over the next 12 months.

    Morgans commented:

    Despite recent share price weakness, we believe FMG is still trading around fair value and will look for further volatility before considering our investment view. We do see potential for the current volatility to push FMG into oversold territory.

    What else?

    Analysts at Goldman Sachs are far more bearish. In response to Fortescue’s update, the broker retained its sell rating and cut its price target to $12.70.

    Based on the current Fortescue share price, this suggests significantly more downside risk of 30% over the next 12 months.

    Goldman believes its shares are extremely overvalued when compared to BHP and Rio Tinto. It explained:

    The stock is trading at a significant premium to BHP & RIO; c. 1.5x NAV vs. RIO & BHP at c. 0.8x & 1x NAV, c. 5.5x EBITDA (vs. BHP on 5x & RIO on c. 3.5x), and c. 5% FCF vs. BHP & RIO on c. 8-12%.

    In addition. the broker has concerns over “widening of low grade 58% Fe product realisations” and “uncertainties around Fortescue Future Industries (FFI) diversification and Pilbara decarbonisation.”

    The post What brokers are saying about the Fortescue share price in August appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of July 7 2022

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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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  • Qantas share price lifts despite airport mayhem

    A group of travellers run excitedly to the airport gate.A group of travellers run excitedly to the airport gate.

    The Qantas Airways Limited (ASX: QAN) share price had a strong day on the market today.

    At close of trade on Monday, Qantas shares finished at $4.64, a 1.75% gain.

    So what was behind the airline’s positive movement on the boards today?

    What’s going on at Qantas?

    The Qantas share price outperformed its fellow ASX 200 travel shares today. The Webjet Limited (ASX: WEB) share price descended 2.33% on Monday, while Flight Centre Travel Group Ltd (ASX: FLT) shares ended the day 0.93% in the red.

    Today’s rise comes despite multiple flight cancellations. More than 21 flights were scrapped in Sydney on Monday.

    This followed thousands of travellers being stranded on the tarmac on Sunday due to a “major computer glitch,” the Daily Mail reported.

    Qantas said the problem was only “minor” and has now been fixed, Nine News reported. Today reporter Christine Ahern said in a tweet:

    More chaos at Qantas after yesterdays IT glitch caused delays. The security line snaking back almost to international terminal at Melbourne airport.

    However, New Zealand’s international border reopening last night could have been what saved the Qantas share price. Borders opened at 11:59pm last night.

    Commenting on the news, New Zealand tourism minister Stuart Nash said:

    Today’s change in border settings marks the final milestone for our reconnecting strategy.

    Share price snapshot

    The Qantas share price has lost more than 7% year to date. Though it has climbed 1% in the past year.

    Qantas has a market capitalisation of nearly $8.8 billion based on the current share price.

    The post Qantas share price lifts despite airport mayhem appeared first on The Motley Fool Australia.

    Should you invest $1,000 in Qantas Airways Limited right now?

    Before you consider Qantas Airways Limited, you’ll want to hear this.

    Motley Fool Investing expert Scott Phillips just revealed what he believes are the 5 best stocks for investors to buy right now… and Qantas Airways Limited wasn’t one of them.

    The online investing service he’s run for over a decade, Motley Fool Share Advisor, has provided thousands of paying members with stock picks that have doubled, tripled or even more.* And right now, Scott thinks there are 5 stocks that are better buys.

    See The 5 Stocks
    *Returns as of July 7 2022

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    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 recommended Flight Centre Travel Group Limited and Webjet 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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  • These 3 ASX All Ordinaries shares hit new 52-week highs on Monday

    Rocket going up above mountains, symbolising a record high.

    Rocket going up above mountains, symbolising a record high.It ended up being a decent start to the trading week for the All Ordinaries Index (ASX: XAO) on Monday. Over today’s trading session, the All Ords ended up gaining a healthy 0.5%, putting it at the 7,210 point mark. But it was even better for a few All Ords shares.

    So today, let’s take a look at three such All Ords shares that managed to hit new 52-week highs.

    3 All Ords shares at 52-week highs today

    BWP Trust (ASX: BWP)

    BWP is a real estate investment trust (REIT) that is well-known for owning commercial real estate assets, including several of the warehouses occupied by the Wesfarmers Ltd (ASX: WES)-owned Bunnings. This REIT had a rather strange session.

    Yes, it initially rose upon market open to a new 52-week high of $4.35 a unit. But BWP quickly lost steam throughout the day and ended up closing at $4.24, down 0.93% for the day. Even so, the new high watermark still counts.

    Austal Ltd (ASX: ASB)

    Shipbuilder Austal is next up this Monday. Austal shares also had a strange day of trading today. The company, like BWP, was out of the gate like a bull this morning, quickly rising to $2.79 a share, its new 52-week high.

    But investors appeared to get cold feet as well, and Austral shares spent the rest of the day falling away from this new high. The company ended up finishing at $2.64 a share, down 1.49%.

    It was only last week that we were discussing another new 52-week high for Austral. So it’s certainly been a great week for this company.

    COG Financial Services Ltd (ASX: COG)

    Third and finally, we have Cog Financial Services. Alone on this list, Cog actually finished in the green this Monday. The company closed at $1.87 a share this afternoon, up a pleasing 4.47%. However, that’s not Cog’s new 52-week high.

    That came at market open when the company rocketed as high as $2 a share. That happens to be Cog’s new high watermark. Cog shares are now up close to 20% since 21 July, when the company released a well-received trading update.

    The post These 3 ASX All Ordinaries shares hit new 52-week highs on Monday appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of July 7 2022

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    Motley Fool contributor Sebastian Bowen 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 Austal Limited. 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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  • Leading brokers name 3 ASX shares to buy today

    ASX shares Business man marking buy on board and underlining it

    ASX shares Business man marking buy on board and underlining it

    With so many shares to choose from on the ASX, it can be hard to decide which ones to buy. The good news is that brokers across the country are doing a lot of the hard work for you.

    Three top ASX shares leading brokers have named as buys this week are listed below. Here’s why they are bullish on them:

    Coles Group Ltd (CSX: COL)

    According to a note out of Citi, its analysts have retained their buy rating and lifted their price target on this supermarket giant’s shares to $21.00. Citi has been looking at the impact that inflation will have on retailers and expects Coles to be impacted positively. So much so, the broker has lifted its earnings estimates to reflect an inflationary boost to sales. The Coles share price is trading at $18.88 on Monday.

    CSL Limited (ASX: CSL)

    Another note out of Citi reveals that its analysts have retained their buy rating and lifted their price target on this biotherapeutics company’s shares to $345.00. Citi has been looking at recent results from rivals Grifols and Takeda and believes that they show an improvement in the plasma market operating environment. It notes that demand and pricing are strong and donor fees are coming down. The CSL share price is fetching $295.35 this afternoon.

    Westpac Banking Corp (ASX: WBC)

    Analysts at Goldman Sachs have upgraded this banking giant’s shares to a conviction buy rating with a $26.12 price target. The broker made the move on the belief that Westpac’s net interest margin is well-placed to benefit from higher rates. Goldman also notes that it has a greater level of comfort around the state of the franchise, despite its productivity agenda. The Westpac share price is trading at $21.62 today.

    The post Leading brokers name 3 ASX shares to buy today appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of July 7 2022

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    Motley Fool contributor James Mickleboro has positions in Westpac Banking Corporation. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL Ltd. The Motley Fool Australia has positions in and has recommended COLESGROUP DEF SET. The Motley Fool Australia has recommended Westpac Banking Corporation. 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 Endeavour share price is trading near all-time highs. Is it too late to buy?

    Group of friends toast with beers

    Group of friends toast with beers

    It’s been a cracking start to the week for the S&P/ASX 200 Index (ASX: XJO) this Monday. At market close, the ASX 200 is up a pleasing 0.63% at just under 7,000 points. But it’s been an even better day for the Endeavour Group Ltd (ASX: EDV) share price.

    Endeavour shares closed a little higher than the index, gaining a healthy 0.88% to $7.99 a share on Monday. Earlier today, this ASX 200 consumer staples share rose as high as $8.04. That’s just a whisker off Endeavour’s present 52-week (and record) high of $8.08 that we saw it hit only last month.

    The Endeavour share price has been a pleasing ASX 200 performer in recent months. Over 2022 thus far, the company is now up 18.69%. It’s also up more than 30% since making its ASX debut in June last year.

    That was when Endeavour’s old owner Woolworths Group Ltd (ASX: WOW) pushed the company out of its nest to live ASX life on its own.

    So with these pleasing gains under the belt, is it too late to buy Endeavour shares today?

    Well, not according to more than one expert ASX investor.

    ASX experts: Why Endeavour shares are a buy today

    As my Fool colleague Tony covered last month, Shaw and Partners portfolio manager James Gerrish named Endeavour as one of the ASX 200 shares best placed to withstand an economic downturn. Gerrish did note that the Endeavour share price could be “close to being fully priced” at its present levels.

    However, he also argued that “margins are better and profitability is growing at a higher clip which could justify the premium multiple” that Endeavour shares are presently trading at.

    But last month, we also heard from portfolio manager of the Redpoint Australian Equity Income Fund Max Cappetta. Noting that Endeavour has had a stellar year to date, here’s some of what Cappetta added:

    We still find it attractive. We think that the benefits of it now being a standalone entity enables management to clearly focus on converting really what is their absolute market-leading position into profit margin improvement in the years ahead.

    So these two ASX expert investors clearly think there are far worse places to have one’s money in than the Endeavour share price today. No doubt investors will find this assessment pleasing as the company approaches its all-time high share price.

    The current Endeavour share price gives this ASX 200 consumer staples share a market capitalisation of $14.33 billion, with a dividend yield of 3.13%.

    The post The Endeavour share price is trading near all-time highs. Is it too late to buy? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of July 7 2022

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    Motley Fool contributor Sebastian Bowen 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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  • Guess which 2 ASX 200 shares have some of the highest dividend yields right now

    A group of three little girls play together in a sand pit with buckets and spades, each intently concentrating on their own digging projects.A group of three little girls play together in a sand pit with buckets and spades, each intently concentrating on their own digging projects.

    Income-seeking investors are known to have a love affair with ASX shares that offer high-paying dividends.

    This can be particularly handy to know given the recent volatility on the ASX.

    As we officially enter earnings seasons today, here’s a look at which two companies currently have some of the highest dividend yields.

    Fortescue Metals Group Ltd (ASX: FMG)

    One of the world’s largest iron ore producers, Fortescue has grown from a small mining outfit to a dominant player in the industry. Fortescue’s core assets are located in the Pilbara region of Western Australia.

    Last week, the company reported record iron ore exports along with higher average revenue realised for Q4 FY22. This bumper performance is expected to flow onto FY23 on the back of China’s insatiable demand for iron ore.

    The Fortescue board declared an interim dividend of 86 cents in the first half of FY22, and is anticipated to announce its final dividend later this month.

    According to Goldman Sachs, the company is projected to payout a fully franked dividend of around $1.17 per share.

    Based on the current share price of $18.15, this equates to an astonishing 11.17% dividend yield.

    Rio Tinto Ltd (ASX: RIO)

    Not far behind is another mining giant, Rio Tinto.

    Based in 35 countries, the global mining company produces a number of important materials that are needed for everyday purposes. This ranges from iron ore, copper, aluminium, diamonds, titanium dioxide, and even lithium.

    Last Wednesday, Rio Tinto delivered its half-year results for the 2022 financial year.

    While the company registered a drop across key metrics when compared to FY21, investors shrugged off the disappointing news.

    Its shares lost around 2% on the day which has since been recovered. At the time of writing, the Rio Tinto share price is $98.50, 0.68% higher than Friday’s closing price.

    The company’s board, however, did slash the interim dividend by a considerable amount – namely 52% to $3.837 per share.

    Even with the significant cut, Rio Tinto still boasts one of the highest dividend yields.

    Goldman is forecasting the miner to pay a full-year dividend of $7.28 per share.

    This means that based on its current share price, Rio Tinto has a dividend yield of 7.36%.

    The post Guess which 2 ASX 200 shares have some of the highest dividend yields right now appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of July 7 2022

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    Motley Fool contributor Aaron Teboneras 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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  • Why Core Lithium, Deterra, Panoramic, and Qualitas shares are racing higher

    a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.

    a young woman raises her hands in joyful celebration as she sits at her computer in a home environment.In late trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a decent gain. At the time of writing, the benchmark index is up 0.5% to 6,981.3 points.

    Four ASX shares that are climbing more than most today are listed below. Here’s why they are charging higher:

    Core Lithium Ltd (ASX: CXO)

    The Core Lithium share price is up over 3% to $1.19. Investors have been buying this lithium developer’s shares after it released positive drilling results. Core reported “world-class high-grade lithium intersections” with one hole returning 66.88 metres at 1.78% Li2O. Management also suspects that thickness and grade could improve with depth.

    Deterra Royalties Ltd (ASX: DRR)

    The Deterra Royalties share price is up 3.5% to $4.47. This follows the release of an update on the company’s quarterly royalty revenue. Deterra revealed that royalty receipts reached $113.1 million during the fourth quarter. This brought its full year royalties to $265,2 million. The highlight was Mining Area C, which generated iron ore revenue royalties of $67 million during the quarter.

    Panoramic Resources Ltd (ASX: PAN)

    The Panoramic share price is up 10% to 21.5 cents. This morning Panoramic provided an update on its definition drilling at the Savannah Nickel Project in Western Australia. Results from the first two drill fans above the 900 Fault have the potential to significantly increase the Savannah Mineral Resource in this area of the mine. They also support the development of a second mining front to support mining operations at Savannah North.

    Qualitas Ltd (ASX: QAL)

    The Qualitas share price has jumped 24% to $2.08. Investors have been scrambling to buy this alternative real estate investment manager’s shares after it secured commitments for a mandate to invest $700 million on behalf of a new fully discretionary investment vehicle. The mandate is from a subsidiary of the Abu Dhabi Investment Authority.

    The post Why Core Lithium, Deterra, Panoramic, and Qualitas shares are racing higher appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

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    *Returns as of July 7 2022

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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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  • Why Aussie Broadband, Temple & Webster, United Malt, and Zip shares are dropping

    A man holds his head in his hands, despairing at the bad result he's reading on his computer.

    A man holds his head in his hands, despairing at the bad result he's reading on his computer.

    In afternoon trade, the S&P/ASX 200 Index (ASX: XJO) is on course to start the week with a solid gain. At the time of writing, the benchmark index is up 0.6% to 6,987.6 points.

    Four ASX shares that have failed to follow the market higher today are listed below. Here’s why they are dropping:

    Aussie Broadband Ltd (ASX: ABB)

    The Aussie Broadband share price is down over 17% to $3.00. This is despite the broadband provider advising that it expects to deliver on the top end of its EBITDA guidance range of $38 million to $39 million in FY 2022. Management also revealed higher than expected synergies from its Over the Wire acquisition.

    Temple & Webster Group Ltd (ASX: TPW)

    The Temple & Webster share price has sunk 12% to $4.67. Investors have been selling off the online furniture seller’s shares despite there being no news out of it. However, it is worth noting that a number of tech shares have come under pressure today.

    United Malt Group Ltd (ASX: UMG)

    The United Malt share price has crashed 16% to $3.08. This commercial maltster’s shares have come under pressure today after it downgraded its earnings guidance. United Malt now expects to report underlying EBITDA of $100 million to $108 million before software-as-a-service (SaaS) costs. This represents a 22% drop on the top end of its previous guidance. Management blamed the North American barley crop, supply chain issues, and high energy costs.

    Zip Co Ltd (ASX: ZIP)

    The Zip share price is down 6% to $1.07. This morning the team at Citi downgraded this buy now pay later provider’s shares to a sell rating and slashed the price target on them to 70 cents. It isn’t particularly optimistic on the company’s outlook and suspects that its cash burn will continue due to cost inflation and slower growth.

    The post Why Aussie Broadband, Temple & Webster, United Malt, and Zip shares are dropping appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

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    See The 5 Stocks
    *Returns as of July 7 2022

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  • Friend or foe? Could inflation give ASX BNPL shares a new lease on life?

    A cool older woman wearing sunglasses celebrates at her party with a gold balloon.A cool older woman wearing sunglasses celebrates at her party with a gold balloon.

    ASX buy now, pay later shares haven’t had the best of years.

    To say the least.

    But investors haven’t lost interest in the sector.

    After all, the BNPL stocks posted absolutely eyewatering gains in the year following on from the depths of the COVID-induced market sell-off.

    The ups and downs of the buy now, pay later sector

    The Zip Co Ltd (ASX: ZIP) share price, for example, rocketed 872% from 20 March 2020 through to 19 February 2021.

    ASX BNPL share Sezzle Inc (ASX: SZL) gained 1,804% over that same 11-month period.

    Afterpay, now owned by global payments provider Block Inc (ASX: SQ2), had a similarly strong run.

    Concerns over mounting bad debts and rising competition from large rivals began to throw up some headwinds by March 2021. Late last year and into this year, fast-rising inflation and the resulting increase in interest rates also led to speculation that ASX BNPL shares could be in for more pain.

    And these concerns have seen share prices smashed.

    Over the past 12 months alone, the Zip share price is down 85%, while the Sezzle share price has tanked 88%.

    As for Block? It’s down 39% since shares began trading on the ASX on 20 January this year.

    But could inflation be a blessing in disguise for the beleaguered pay-by-instalments industry?

    Could inflation give ASX BNPL shares a new lease on life?

    According to a new report by RFI Global, The Global State of BNPL, fast-rising consumer prices may be a boon for ASX BNPL shares.

    The report notes that, “Against a backdrop of soaring inflation, consumers may turn to BNPL for bigger ticket items as well as household expenses.”

    According to the report:

    Although online retail dominates BNPL purchases – particularly fashion where 1 in 5 online purchases in Australia were paid through BNPL last year – consumers are interested in using it for higher value items such as electrical goods, household appliances and furniture.

    RFI reported that 38% of Australian consumers indicated they would use BNPL to pay for everyday expenses such as household bills, while 27% would use the instalment services to pay for their petrol.

    The report also revealed that while Gen Z and younger Millennials were the early adopters of BNPL in Australia, “there has been a significant increase in usage among older Millennials and Gen X”.

    If that demographic usage continues to expand while inflation prods more consumers to pay via instalments on bigger-ticket items, this should indeed be good news for ASX BNPL shares.

    The post Friend or foe? Could inflation give ASX BNPL shares a new lease on life? appeared first on The Motley Fool Australia.

    Wondering where you should invest $1,000 right now?

    When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.* Scott just revealed what he believes could be the “five best ASX stocks” for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now

    See The 5 Stocks
    *Returns as of July 7 2022

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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 positions in and has recommended Block, Inc. and ZIPCOLTD FPO. The Motley Fool Australia has positions in and has recommended Block, Inc. 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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